B.Com II Article 1

How women business owners could lead India's economic growth

Questions and answers:

Q1: Why is India well-positioned to benefit from gender equality in the workforce?

A: India is well-positioned to benefit from gender equality due to its large size and population. Currently, only 25% of the labor force is female, contributing just 17% to the domestic GDP—less than half the global average. By doubling the percentage of women in the workforce, India could boost its growth rate from 7.5% to 9% and raise GDP by $700 billion by 2025, according to the World Bank.

Q2: What would be the global economic impact of advancing women’s equality in business?

A: Advancing women’s equality in business could increase the global GDP by $5.8 trillion by 2025, as reported by the International Labour Organization. Emerging economies like India, where the gender equality gap is widest, would contribute most to this increase.

Q3: What is the current state of women’s participation in entrepreneurship in India?

A:

• Only 14% of micro, small, and medium enterprises (MSMEs) are majorly owned by women.

• Merely 5.9% of all startups are led solely by women.
  Despite these low figures, women entrepreneurs have shown strong potential for community impact and economic success.

Q4: How do women entrepreneurs benefit communities compared to their male counterparts?

A: Women entrepreneurs are better positioned to understand and address the needs of their communities. They often focus on:

• Reducing poverty by creating more small-scale jobs.

• Improving health and communal well-being through enterprises addressing family-level needs.

• Encouraging widespread basic education, especially literacy.
  Additionally, women tend to have a better record of success in areas like reliable loan repayment.

Q5: What factors have supported the rise of women entrepreneurs in India?

A:

1. Policy Support: India’s long-standing embrace of globalisation, liberalisation, and privatisation policies has encouraged self-employment and created opportunities for women business owners.

2. Government Commitment: India has shown a higher level of political commitment to promoting and sustaining women entrepreneurs compared to many other developing economies.

3. Growing Ecosystem: Today, approximately three million women-owned enterprises in India employ roughly eight million individuals.

Q6: What challenges do women entrepreneurs in India face, and how can these be addressed?

A: Challenges:

• Limited access to funding, with 43% of small business funding coming from friends and family.

• Difficulty accessing markets and resources for growth.

Solutions:

• Greater collaboration between the public and private sectors at national and state levels to provide funding and market access.

• Business training programs and development of growth-oriented women suppliers.

• NGOs facilitating capacity building, access to finance, and networking opportunities.

Q7: Why are women entrepreneurs seen as a key driver for India’s economic growth?

A: Women entrepreneurs represent a promising engine for India’s next phase of economic growth because:

• They address community-level needs and create inclusive economic opportunities.

• Their focus on small-scale, localized solutions fosters overall development and poverty reduction.

• Investing in women entrepreneurs improves not only the country’s GDP but also its collective well-being.

Q8: What is the role of NGOs in supporting women entrepreneurs in India?

A: NGOs play a crucial role by:

• Facilitating capacity building and business training.

• Helping women entrepreneurs access markets, finance, and networking opportunities.

• Strengthening the ecosystem for women-owned businesses.

Q9: How does the contribution of Indian women to domestic GDP compare to the global average?

A: Indian women contribute only 17% to the domestic GDP, which is less than half of the global average. This highlights a significant untapped potential for India to leverage.

Q10: What is the broader significance of investing in women entrepreneurs in India?

A: Investing in women entrepreneurs is not only an economic imperative but also a step toward collective betterment. It boosts GDP growth, enhances community well-being, and promotes inclusive development, making it a cornerstone for India's sustainable future.