Innovate, Impact, Inspire: How Women Entrepreneurs are Driving Economic and Sustainable Transformation

Anita Chavan, a farmer in Maharashtra, grows organic vegetables and wants to expand her business by starting a food processing unit. However, like many women entrepreneurs, she faces difficulties in receiving funding and accessing markets. Traditional banks often hesitate to lend to women because they lack collateral or formal credit history. As a result, Anita turns to local savings groups and informal lenders, sometimes paying high interest rates to keep her business up and running.

Women-led businesses like Anita’s play a crucial role in the economy. In India, micro, small, and medium enterprises (MSMEs) contribute approximately 30% of the GDP and employ over 110 million people. With the right support, this contribution is expected to rise to 35% by 2025. About 20% of MSMEs in India are owned by women, covering sectors such as farming, textiles, and food production. Women-led MSMEs collectively contribute around 17% to India’s GDP, amounting to approximately USD 632 billion. Their businesses create jobs, increase incomes, and promote local development. Yet, they continue to face barriers that limit their ability to grow and succeed.

Creating an Enabling Environment for Women Entrepreneurs

For women entrepreneurs to thrive, they need more than just good business ideas. They require support from policies, markets, and financial institutions. In fact, many women struggle with complex business registration processes, lack of access to large markets, and limited mentorship opportunities. Here, governments and businesses can help by simplifying registration, offering tax benefits, and prioritizing women-led enterprises in procurement.

Workshops, training programs, and mentorship networks can also play a key role. Providing women with skills in business management, digital marketing, and financial planning can help them scale their enterprises. Public-private partnerships that bring together policymakers, investors, and support organizations can create a more inclusive and business-friendly environment for women.

Several initiatives already exist to support women entrepreneurs. The Women Entreprenuership Platforms (WEP) collaborates with organizations like TransUnion CIBIL to enhance financial literacy and credit access for women entrepreneurs. Women’s World Banking works with financial institutions to develop products tailored for women-owned MSMEs. Additionally, government schemes such as the Union Nari Shakti Scheme and Sakhi Shakti Loan provide specific financial support to women entrepreneurs.

Access to Credit: Overcoming Financial Barriers for Women Entrepreneurs

One of the biggest challenges for women-led businesses is access to finance. Many financial institutions see women-owned businesses as risky because they often lack property for collateral or formal business records. As a result, they struggle to get loans and rely on informal lenders, who charge high interest rates.

To bridge this gap, financial institutions need to design loan products that cater to women entrepreneurs. Some solutions include:

• Flexible loan terms: Banks and microfinance institutions can provide loans without requiring large collateral.
• Digital financial services: Mobile banking and peer-to-peer lending can make it easier for women to access credit, especially in rural areas.
• Impact investment: Investors can fund women-led businesses through blended finance models that combine public and private funding to lower risks.

Financial literacy is also important. Training programs on money management, budgeting, and investment can help women make informed financial decisions and grow their businesses sustainably.

Climate Resilience and Sustainable Business Models

As climate change impacts economies and communities, women entrepreneurs are leading the way in creating green and sustainable businesses. Many women-run enterprises focus on organic farming, eco-friendly packaging, and waste reduction. In agriculture, women are adopting climate-smart practices such as water conservation and organic farming, which improve food security while protecting the environment.

However, these efforts require investment in green technologies and capacity-building. Governments, banks, and investors should support women entrepreneurs in transitioning to sustainable business models by offering green finance options, access to renewable energy, and training in climate adaptation.

Therefore, women-led businesses are more than just enterprises they are engines of economic transformation and sustainability. However, the road from a great idea to a thriving business is often filled with challenges, from securing capital to navigating restrictive policies.

Entrepreneurship is unlocking new opportunities for women, the systemic shifts needed to create a business-friendly environment, and the financial tools that can bridge funding gaps. As businesses worldwide adapt to climate challenges, women entrepreneurs are at the forefront of driving sustainable solutions, whether through eco-friendly production, regenerative agriculture, or circular economy models. By reimagining support structures, strengthening financial inclusion, and fostering climate-smart innovation, women entrepreneurs are not just building businesses but shaping a more resilient and sustainable future.

Stella George – Senior Research Manager, Sambodhi