Entrepreneurship, if done correctly, can be a way to an excellent economic development of a country. It’s the backbone of any country. That’s why entrepreneurs have the capability to bring transition. When it comes to entrepreneurship, how can we forget the contributions of women?
This is the era of digitalization where there are revolutionary changes globally. Women entrepreneurs are blooming and showing their capabilities. When it comes to women’s contribution to the economy, they can contribute as job seekers and as entrepreneurs, or we can say, job creators.
Women can positively impact the economy with their high potential and understanding of the responsibility. Nowadays, women entrepreneurs come from multiple spheres of society and parts of the country. Whether it’s an IT company or a construction company, women are changing the traditional bastion of male domination.
Women entrepreneurs are self-directed and highly motivated. They also possess specific characteristics that enhance their creativity and help them create new ideas for an improved business way.
Women Entrepreneurship in India
Currently, India has approximately 13.5 – 15.7 million women-owned enterprises that represent around 20% of the businesses. In several businesses, women entrepreneurs are leading and exceeding expectations. They are in different fields, including science, law, medical, aeronautics, military, space exploration, etc.
Through their hard work, women have proved that they have a great scope ahead in terms of intelligence, efficiency, and creativity. In today’s corporate world, women are proving that they are a strong driving force. In India and around the globe, women are competent when it comes to the balance between motherhood and entrepreneurship.
People should encourage technically sound, highly educated, and professionally qualified women to effectively manage their business.
People can identify the uncultivated talent of the young women of the country, and they can be trained to increase the productivity of several industries. Women in India are tackling all the hurdles that come on the road to entrepreneurship. They are becoming more and more educated and economically independent.
Contributions of Women Entrepreneurship to Economy
The women’s participation in the workforce, their work quality, and their contributions to India’s GDP are highly visible and indicate how they are helping the economy to grow. The level of women’s participation as entrepreneurs is increasing day by day.
Women’s participation in economic growth in India is highly visible. It is noticeable that more than 30.37% of women in India are entrepreneurs or MSME owners. Furthermore, that even accounts for 23.3% of the country’s labor force. It’s even visible that the participation level of women in the agricultural and manufacturing sectors is higher compared to men. Furthermore, the literacy levels of women are also increasing day by day.
More than 432 million women in India are of working age, and the numbers keep growing. Their increasing potential and dedication can help in the country’s overall economic growth as well.
Let’s see the major factors regarding women’s entrepreneurship that directly or indirectly contribute to the Indian economy.
Boosting productivity growth
When it comes to entrepreneurship, gender diversity can help in increasing the productivity of a company. As per research, women entrepreneurs can bring new skills and creativity to the workforce. When a company’s productivity increases, its success levels are higher, which leads to an increment of a country’s economic growth.
Investors recognizing Women-led startups
Nowadays, it’s evident that investors worldwide are highly interested in supporting and acknowledging women entrepreneurs. That increases the chances of a women-led company to get good investments. With good investments, companies can get more chances to flourish. Furthermore, since women entrepreneurs show more realistic projects, investors may get realistic assumptions in terms of the business. That helps women to pitch funding in a better way. This, in turn, plays a role in the growth of an economy.
Closing Gender Income Gap
Women entrepreneurship supports women empowerment. With more focus on women entrepreneurship, there can be higher chances of more women participation in the Indian economy’s product line. Furthermore, from a broader perspective, women entrepreneurs are more likely to hire other women, which will increase the participation of females in the working sector. Eventually, it helps in closing the gender income gap in the country.
Higher Return Potential
As per reports, women entrepreneurship tends to require fewer investments and create more revenue. Women-led startups that are export-oriented, market-expanding, and innovative greatly contribute to the economic development of a country. They also encourage high-potential female entrepreneurs. They have goals to introduce new products or services and achieve their business goals. This also helps in higher returns.
Several surveys show that women entrepreneurs tend to take more risks compared to men entrepreneurs. Furthermore, women tend to have better capabilities to envision opportunities. Sometimes, taking risks is worth the shot, and it can lead to the growth of the business. That’s why it can also assist in economic development.
Women tend to be more active when it comes to adaptation. They are better at adapting to their environments and others’ needs. That’s why they can make their businesses adapt to the changing marketing trends better. Companies with women entrepreneurship are more resilient and faster in adaptability. When a business adapts better, it leads to better revenues and profits that also add to economic growth.
There has been increasing awareness regarding women’s entrepreneurship development worldwide. After the digitalization and post-covid phase, women entrepreneurship could surely see increased attention, and people will notice its advantages for the economy. We can already see how women’s entrepreneurship contributes to the economic development of countries.
Women are continuously tackling all the hurdles and forging forward towards success for themselves and the country as a whole. They are standing tall and getting applauded for their contributions and achievements in their fields. Women are also interested in playing a role in economic growth and have received outstanding support from investors and other people across the globe. That’s why we can say that women’s entrepreneurship is a highly contributing factor to the Indian economy.