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Informal enterprise as harbinger of women empowerment in India

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  • Published: 04 December 2023

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  • Mehak Majeed   ORCID: orcid.org/0000-0003-3160-1987 1 ,
  • Zahid Gulzar Rather 2 &
  • Saeed Owais Mushtaq 3  

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The prevailing economic theory of development has traditionally linked the informal sector businesses with backwardness, under-development, and adherence to traditional practices. According to this theoretical framework, in order to foster development and modernization, it is believed that the informal sector should gradually disappear over time. However, the present research challenges this structuralist perspective specifically in relation to women-led enterprises operating in the informal sector in India. By analyzing data from two rounds of the National Sample Survey Organization (NSSO) conducted five years apart, the study reveals that not only have women-led enterprises in the informal sector experienced significant growth over time, but their level of technical efficiency has also increased. The research paper identifies the main factors contributing to both efficiency and inefficiency within these women-led enterprises. Furthermore, empirical investigations conducted in conjunction with this study validate the potential of the informal sector as a catalyst for women's empowerment in India. In conclusion, the study offers practical policy recommendations that support the growth and development of the informal sector in India.

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figure 3

Nature of Enterprise Location (2015). Source: Table 3

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Majeed, M., Rather, Z.G. & Mushtaq, S.O. Informal enterprise as harbinger of women empowerment in India. J. Soc. Econ. Dev. (2023). https://doi.org/10.1007/s40847-023-00282-9

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International Journal of Social Economics

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Article publication date: 9 July 2018

The spirit of entrepreneurship among nationals of a country leads and contributes significantly to the growth process of a country. In this drive, there cannot be gender biases among men and women. The government in India has taken several initiatives to increase the participation of women entrepreneurs and, thus, making a partner to the growth and development process of the country. The initiatives in this direction were taken up through five-year development policy plans commencing from the fifth five-year plan (1974-1978). The focus of five-year plans since then has been reoriented toward women welfare stressing more specifically on women empowerment through women entrepreneurship programs. The purpose of this paper is to appraise the series of development plans and programs initiated for the empowerment of women entrepreneurship in India.

Design/methodology/approach

The paper is developed based on the concepts, policies and practices being implemented across the regions to promote women entrepreneurs. The methodology adopted to assess and analyze the relevant components very much matches the existing practices. The paper relates the concepts, programs and practices. This study has revealed certain issues based on the available data and information on women entrepreneurship to establish a view and rational as of why research is needed in the area of women entrepreneurship. To support this concept, the study has considered the experiences of two important states of India, namely, Uttar Pradesh and Uttarakhand.

The study reveals that Government of India has launched several policies and development programs to infuse the spirit of entrepreneurship among the women groups and thereby not only making them financially self-sustained but also to contribute to the growth process of the economy. However, there remain many gaps in achieving the goals due to the variety of factors. This becomes more significant as the level of women entrepreneurship in India is very low as compared to other economies and also between the men and women entrepreneurs within the country. The study brings out the need and importance for the future research in the area of women entrepreneurship and thereby exploring the areas of concern and bringing out needed improvements to strengthen the women entrepreneurship programs and policies.

Originality/value

This research provides a future direction to the academicians, researchers and policymakers to provide a framework to reorient the programs and policies for the cause of women entrepreneurship growth in India. The paper very much emphasis that the research findings will have influence on government policies and serve as an effective tool for implementation of state programs meant for woman entrepreneurs more effectively and efficiently. The ultimate impact of research findings will be an economic change in the quality of life of woman enterprise in the society.

  • Entrepreneurship
  • Women entrepreneurship
  • Uttar Pradesh
  • Uttarakhand

Agarwal, S. and Lenka, U. (2018), "Why research is needed in women entrepreneurship in India: a viewpoint", International Journal of Social Economics , Vol. 45 No. 7, pp. 1042-1057. https://doi.org/10.1108/IJSE-07-2017-0298

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Women Entrepreneurship in India: An Insight into Problems, Prospects and Development

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    In India, women make up almost 14% of all entrepreneurs and own around 20% of micro, small and medium enterprises (MSMEs) out of a total of 58.5 million enterprises. 1 They collectively contribute to 3.09% of industrial output and employ 10% of the total workers engaged in different economic activities across the country. 1 Still, India has ...

  3. Women entrepreneurs in India: a systematic literature review

    This paper aims to organize the existing empirical research on women entrepreneurs (WEs) in India, highlight the research areas that have not received attention and present opportunities for future research.,A systematic literature review (SLR) was performed on 74 scholarly articles focusing on WEs in India and published between 1993 and 2020.

  4. Women Entrepreneurs in India: Where Do They Stand?

    The paper gives a holistic picture of the women entrepreneurship in India and its gender differentials by using various national-level data. It aims to analyse the condition of overall women employment, operational and economic characteristics, access to credit and other infrastructural facilities and entrepreneurial activity of the women-owned enterprises. The study reveals that most of the ...

  5. Informal enterprise as harbinger of women empowerment in India

    The research paper identifies the main factors contributing to both efficiency and inefficiency within these women-led enterprises. Furthermore, empirical investigations conducted in conjunction with this study validate the potential of the informal sector as a catalyst for women's empowerment in India.

  6. WOMEN ENTREPRENEURSHIP IN INDIA: A LITERATURE REVIEW

    Emergence of women entrepreneurs has led to an engendered perspective in realm of entrepreneurship. Women entrepreneurship is closely intertwined with instrumental societal and economic benefits. Despite the fact that women constitute nearly half of the population in India, their participation in entrepreneurial activities remains severely limited. The study is an attempt to decipher the ...

  7. PDF Women's Entrepreneurship In India: Challenges And Opportunities

    based female entrepreneur. Neha Tiwari (2017) the researcher examined that the prevalence of women's entrepreneurship in India in an effort to understand the concept, profile, and dynamics of women's entrepreneurship in India. Highly cited research studies on the women's entrepreneurship, specifically in the Indian context,

  8. The antecedents of entrepreneurial intention among women entrepreneurs

    Gartner in 1988 has defined entrepreneurship as "the creation of new organizations.". Women entrepreneurship is "an act of owning a business which makes women economically independent.". Female entrepreneurs play an important role in the sustained economic development and social progress.

  9. [PDF] Women Entrepreneurship in India

    Women Entrepreneurship: Finding Voice and Vision. P. Nair Pankaj Gakhar. Business, Sociology. 2014. This paper is a centripetal analysis of role of Indian women in the realm of entrepreneurship encompassing various aspects whirling around contributions as well as limiting roadblocks encountered by…. Expand.

  10. Why research is needed in women entrepreneurship in India: a viewpoint

    Originality/value. This research provides a future direction to the academicians, researchers and policymakers to provide a framework to reorient the programs and policies for the cause of women entrepreneurship growth in India. The paper very much emphasis that the research findings will have influence on government policies and serve as an ...

  11. Women Entrepreneurship in India: Issues and Challenges

    CASIRJ Volume 12 Issue 1 [Year - 2021] ISSN 2319 - 9202 Women Entrepreneurship in India: Issues and Challenges Dr. Dinesh S. Kanwar, Associate Professor of English, Government College, Arki, District Solan, H.P. (INDIA) Email: [email protected], [email protected] Dr. Rajeev Kumar, Assistant Professor of Commerce, Government College, Chaura Maidan, Shimla, H.P. (INDIA) Email ...

  12. (PDF) Women Entrepreneurs in India: A Study of ...

    In India a majority of women entrepreneurs in food processing were mostly found in the unorganized sectors. A study conducted on these lines (Savadi 2001) explained that women entrepreneurs ...

  13. PDF Women Entrepreneurship in India- a Review of Related Literature

    Abhinav International Monthly Refereed Journal of Research in Management & Technology. Volume 3, Issue 5 .Online ISSN-2320-0073. Sanjeev Kumar Khare and Lilesh Gautham (2014)- Rural Women Entrepreneurship in India: Challenges and Opportunities. African Journal of Business Management. 8(7).235-237.

  14. PDF Women Entrepreneurship in Rural India: Key to India'S Economic Growth

    This research paper mainly concerned with the women entrepreneurship situation in rural area of India. This is a based on secondary data from books, journals, articles, web sites and government reports. This study highlighted the current status of women entrepreneurs and their valuable contribution in sustainable economic

  15. A Case Study On Exploring the Challenges of Women Entrepreneurs in

    Abstract. This case study focuses on the challenges faced by women entrepreneurs in India due to lack of social support and stiff competition. It highlights the example of one real and recent Indian women entrepreneur, Megha Sharma was the founder and CEO of a company called "The Saffron Touch," who faced these challenges and overcame them through innovative strategies such as crowd funding ...

  16. PDF A Study on The Emergence of Women Entrepreneurship in India

    brigade, still women have to go a long way. This research paper is an attempt to analyse and create awareness about the importance of women entrepreneurs, difficulties faced by them, female start-up success stories, ... (2006) conducted research on "Problems of women entrepreneurs in India." and found out the difficulties faced by women ...

  17. (PDF) Women Entrepreneurship in India: An Insight into Problems

    PriyaSodani, "Women Entrepreneurship- A Literature Review" IOSR Journal of Business and Management [4] Dr.N. Thyagaraju, "WOMEN ENTREPRENEURSHIP DEVOLOPMENT PRACTICES" IN INDIA- A REVIEW" Original Research Paper, Assistant Professor, Department of commerce, Sri A.B.R Government Degree College, Repalle, GUNTUR [5] Dr. Sunil Deshpande ...

  18. PDF India's first and largest collaborative report on women in startups

    — Women comprise 35% of the startup workforce, compared to 19% in corporates. — 18% of startup CEOs/founders are women, while only 5% hold these positions in corporates. — However, the gender gap at leadership positions widens after the 10-year mark, with just 24% of women reaching CXO/SVP levels, compared to 40% of men.

  19. PDF Challenges and Prospects of Women Entrepreneurs in India

    Challenges and Prospects of Women Entrepreneurs in India Section A-Research paper Eur. Chem. Bull. 2023, 12 (S2), 656 - 667 659 political (BEP) environments, a lack of training and education, and personality differences.

  20. (Pdf) Problems and Challenges Faced by Women Entrepreneurs in India -a

    This paper focuses on problems and challenges faced by women entrepreneurs in India. Women are equally competent in running business but still lacks behind in spite of women empowerment movement ...