The Rise of Female Entrepreneurs in India

India’s startup boom is reshaping industries, and thankfully, it’s opening doors for female entrepreneurs in India to become job creators, leaders, and change-makers. However, despite the growing number of female entrepreneurs in India, deep-rooted gender norms continue to pose challenges, limiting their full participation in this exciting space.

This article explores the rise of women-led startups, government support systems, gender-based challenges, and the way forward to empower female entrepreneurs in India.

What Exactly is a Startup?

Let’s begin with the basics. A startup is a newly established business aiming to bring an innovative product or service to the market. In India, startups are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) under specific conditions like:

• Less than 10 years old

• Registered as a private limited company, LLP, or partnership

• Annual turnover below ₹100 crore

• Innovation-driven with high employment potential

Startups often begin with small teams, big ideas, and limited resources — the perfect environment for disruptive innovation. Increasingly, female entrepreneurs in India are harnessing this environment to launch game-changing businesses.

The Rise of Female Entrepreneurs in India

The latest government data shows that out of 1.6 lakh DPIIT-recognized startups, over 73,000 have at least one woman director. This marks a significant step forward for female entrepreneurs in India in a traditionally male-dominated space.

According to Tracxn, India ranks second globally (after the US) in the number of tech startups led by women. Currently, around 7,000 female entrepreneurs in India are leading startups — about 7.5% of the total.

This growth is not only fueled by talent and ambition but also by ecosystem-level support and government initiatives aimed at empowering female entrepreneurs in India.

Startup India: A Game-Changer for Women

Launched in 2016, the Startup India initiative was designed to encourage innovation and ease of doing business. For women, this initiative has been especially transformative. With this initiative, female entrepreneurs in India have gained access to the resources, networks, and funding required to build scalable businesses.

Some key schemes include:

• Startup India Seed Fund Scheme (SISFS): Offers financial support to early-stage startups.

• Funds of Funds for Startups (FFS): Facilitates investment into scalable ventures.

• Credit Guarantee Scheme for Startups (CGSS): Eases access to loans without heavy collateral.

Additionally, Startup India’s Capacity Development Programme for female entrepreneurs in India has trained over 1,300 women through workshops across 10 states.

What Sectors Are Women Leading?

Female entrepreneurs in India are breaking new ground across various sectors. Some of the leading areas include:

• Retail and e-commerce

• Edtech and enterprise software

• Fashion technology and consumer brands

• Legal tech and financial services

In 2024 alone, five women-led startups — including MobiKwik, Usha Financial, and LawSikho — launched their IPOs. This highlights not only the growth of female entrepreneurs in India but also the increasing investor trust in women-led enterprises.

Challenges Still Holding Women Back

Despite these inspiring success stories, female entrepreneurs in India still face several hurdles that limit their growth potential.

1. Societal & Familial Pressures

Many female entrepreneurs in India juggle business goals alongside caregiving duties, often without enough family support. The “double shift” — managing both home and work — remains a significant challenge for many women in the entrepreneurial space.

2. Lack of Market Access

A large number of female entrepreneurs in India report limited customer orders and market reach. Without the right networks and visibility, growth becomes difficult.

3. Access to Capital

While funding schemes exist, funding often flows disproportionately to male-led ventures. Female entrepreneurs in India may lack investor connections or face unconscious bias during pitches, limiting their access to capital.

4. Gendered Enterprise Distribution

According to the MSME Annual Report 2023-24, only 18.42% of urban enterprises are owned by women, and most of them are micro-enterprises. Women rarely lead medium or large enterprises, further limiting their economic influence.

The Role of Education and Mentorship

Mentorship plays a crucial role in boosting the confidence and decision-making ability of female entrepreneurs in India. Educated women with access to business training and networks are more likely to succeed.

Some emerging mentorship models include:

• Incubators specifically for women

• Peer networking platforms

• Access to global female founder communities

• Online accelerator programs

When female entrepreneurs in India learn from those who’ve walked the path before them, they navigate challenges more confidently.

The Need for Ecosystem Support

A truly empowering startup ecosystem must be inclusive, offering tailored solutions to the specific needs of female entrepreneurs in India.

Here’s what that could look like:

• Childcare support at co-working spaces

• Flexible working hours and remote work options

• Grants for first-time women founders

• Tax reliefs for women-owned startups

• Pitch events exclusively for women

• Gender diversity mandates in venture capital firms

Empowerment Beyond Economics

An important question we must ask is — does entrepreneurship empower women socially?

Yes — but only when it is supported by family and society. While financial independence is a powerful step forward, it doesn't always free female entrepreneurs in India from domestic duties. Empowerment needs to be both economic and personal.

More women in leadership roles can help shift cultural attitudes. As female entrepreneurs in India become job creators, decision-makers, and role models, they challenge stereotypes and redefine success for the next generation.

Rural vs Urban Divide

Female entrepreneurs in India in rural areas face even more barriers. Limited access to the internet, financial services, training, and capital makes it harder to start and scale ventures. Government programs like Mudra Yojana, Digital Saksharta Abhiyan (DISHA), and the Women Entrepreneurship Platform (WEP) are trying to bridge this gap. However, outreach and execution still need to improve for these benefits to reach every aspiring female entrepreneur in India.

What the Data Says

Here are a few eye-opening stats:

• Only 2.6% of the adult female population in India was engaged in entrepreneurship as of 2020.

• Female entrepreneurs in India employ just about 5 people on average in their startups, indicating micro-scale operations.

• India ranks 57th out of 65 countries in the Mastercard Index for Women Entrepreneurs (2021).

• In rural India, many women-owned enterprises are largely unregistered, informal, or family-based.

These numbers point to a critical need for scale, visibility, and structural support for female entrepreneurs in India.

What Needs to Change?

To truly empower female entrepreneurs in India, we need a mix of cultural, financial, and policy-level shifts. Here's what can make a difference:

• Introduce gender-sensitive financial products

• Provide equity-free grants for idea-stage ventures

• Encourage parental leave for both genders

• Host regular women-only investor connect sessions

• Strengthen school-level entrepreneurship education

Final Thoughts

India’s startup story is still being written — and female entrepreneurs in India deserve to be at the heart of it.

We’ve seen sparks of transformation, but it’s time to fan the flames. Government policy, private sector initiatives, mentorship, and cultural change must work together to support female entrepreneurs in India.

Because when women rise, families prosper, communities grow, and the nation thrives.