Women Entrepreneurs in India: Data, Schemes, Funding and a Practical Guide to Starting and Growing

Women already run a large share of India’s small businesses, often from home, often unseen in official statistics, and often with less access to credit and markets than men. That’s changing. Government data shows women-owned businesses growing, schemes offer better terms to women entrepreneurs, and digital tools make it easier to reach customers from anywhere.

This guide brings together the latest data, the support available and practical steps for starting and growing a business.

Key points

• Women owned 26.93% of small proprietary businesses in India in 2025, up from 26.17%, according to MoSPI’s ASUSE. Women made up about 29% of the workforce.
• In manufacturing, more than 60% of small establishments are headed by women, many in tailoring, garments and food.
• Several schemes give better terms to women: higher PMEGP subsidies, CGTMSE guarantee benefits, Stand-Up India and a share of government purchasing reserved for women-owned businesses.
• Udyam registration records women ownership, which helps you access these benefits. It’s free.
• Start with a skill and a clear customer, keep business and personal money separate, and get found online.

What the data shows

MoSPI’s ASUSE 2025 survey of unincorporated non-farm businesses, covering proprietorships, partnerships and similar firms, found:

• 26.93% of proprietary establishments were female-owned in 2025, a steady rise.
• Women made up about 29% of the workforce in these businesses.
• 60.43% of small manufacturing establishments were headed by women, against about 15% in services and 13% in trade.
• Nearly 22% of all women workers in the sector were in the manufacture of wearing apparel: tailoring, embroidery and garment work.
• About 72% of women-led businesses that employed people employed at least one woman, creating jobs for other women.

Many women-run businesses are home-based and run without hired workers, which partly explains why they’re often smaller. MoSPI’s 2023-24 figures show how much scale matters: in tailoring and garments, one-person businesses added ₹66,164 of value a year on average, against ₹7,56,746 for those with hired workers. Growing beyond the home and taking on help can transform earnings. See running solo or hiring staff.

Schemes and funding with better terms for women

Loans and subsidies

• Mudra loans: collateral-free loans for micro businesses in four tiers, from Shishu (up to ₹50,000) to Tarun Plus (up to ₹20 lakh for borrowers who’ve repaid a Tarun loan).
• PMEGP: for new manufacturing and service units, women get the higher special category subsidy: 25% of project cost in urban areas and 35% in rural areas, against 15% and 25% for general category applicants, and contribute only 5% themselves.
• CGTMSE: guarantees bank loans to micro and small enterprises without collateral, now up to ₹10 crore, with higher guarantee coverage for women entrepreneurs.
• Stand-Up India: bank loans of ₹10 lakh to ₹1 crore for women and SC/ST entrepreneurs setting up new enterprises. The government announced a revamped version in 2026, so ask your bank for current terms.
• A new scheme from the Union Budget 2025-26 for 5 lakh first-time women, SC and ST entrepreneurs, with term loans of up to ₹2 crore over five years. Ask your bank or the Ministry of MSME about applying.

See our full guide to business loans and government schemes.

Government purchasing

Central government ministries and public sector undertakings must buy at least 25% of their goods and services from micro and small enterprises, with a sub-target of 3% from women-owned micro and small enterprises. Registering on the Government e-Marketplace (GeM) as a women-owned business opens these opportunities.

Self-help groups and skills

• Self-help groups (SHGs) under the national and state rural livelihoods missions offer savings, credit and support for collective businesses.
• Skill India offers recognised courses in beauty and wellness, apparel, food processing, retail and many other trades.
• NITI Aayog’s Women Entrepreneurship Platform connects women founders with information, mentoring and funding opportunities.
• State schemes: most states run their own schemes for women entrepreneurs. Ask your District Industries Centre.

Business ideas that work well

These businesses suit many women entrepreneurs because they can start small, often from home, and grow:

• Beauty parlours and salons: see how to start a beauty parlour or salon and home-based beauty parlours
• Mehendi art: see mehendi artists
• Tailoring, boutiques and garments: India’s most common women-led manufacturing activity
• Tiffin services and home food: see how to start a tiffin service or cloud kitchen
• Pickles, papad and homemade foods: see pickles, papad and homemade foods
• Tuition and coaching: see how to start coaching classes
• Handicrafts and handloom: see handicrafts and handloom
• Professional services: interior design, accounting, consulting, design and digital marketing. See how to start an interior design business

For more, see small business ideas for India.

A step-by-step guide to starting

1. Start from a skill and a customer. What can you do well, and who will pay for it? Talk to ten potential customers before you invest.
2. Test small. Take a few paid orders or clients before renting space or buying expensive equipment.
3. Work out the numbers. Price, costs and how many customers you need each month. Advanton’s business idea reality check uses MoSPI’s data to compare your plan with similar businesses in your state.
4. Choose a structure. Most women entrepreneurs start as sole proprietors, which needs no separate registration. Try the business structure chooser.
5. Register: Udyam (free, and records women ownership), GST once your turnover requires it, FSSAI for food, and shops and establishments for premises. See our guides to Udyam and GST registration.
6. Open a business bank account in your own name, and accept UPI through a merchant QR. Keep business and household money separate; it protects your earnings and builds the record banks look for.
7. Get found online: a Google Business Profile, WhatsApp Business and a free listing in the India Business Directory.
8. Issue proper invoices with Advanton’s free GST invoice generator, even before you’re GST-registered.

Pricing your work fairly

Many women-run businesses, especially home-based ones, undercharge. Customers know you, overheads seem low and it feels awkward to ask for more. But underpricing keeps a business small and tiring. To price fairly:

• Count all your costs, including materials, electricity, gas, delivery, phone and packaging, not just the obvious ones.
• Pay yourself for your time. Decide what an hour of your work is worth, and include it in every price.
• Check what others charge for similar quality, and price for your quality, not just your costs.
• Charge for extras: urgent orders, custom work, home visits and extra revisions.
• Raise prices gradually as your reputation grows, and tell regular customers in advance.

Protecting your business

• Keep records of every sale, expense and payment. Digital payments through your own account make this automatic.
• Use simple written agreements for larger orders, such as bridal bookings, bulk tailoring orders and catering, with the price, dates, advance and what happens if plans change.
• Take advances for custom work.
• Get the right insurance for stock, equipment or premises once they’re worth protecting.
• Keep your own name on the business, bank account, registrations and loans if you run the business, so the benefits and the record belong to you.

Overcoming common barriers

• Access to credit: build a record first. Six months of business payments through your own bank account, Udyam registration and a simple project report make banks far more willing to lend, and schemes like Mudra and PMEGP are designed for first-time borrowers.
• Time: many women balance business with family responsibilities. Choose a model with flexible hours, use online bookings and WhatsApp to manage enquiries, and get help with routine tasks as you grow.
• Mobility and safety: home-based and online models reduce travel. The labour codes allow women to work night shifts with their consent and with safety arrangements, which matters if you employ women.
• Confidence and networks: join women entrepreneurs’ associations, SHGs, industry groups and online communities for advice, referrals and support.
• Ownership on paper: make sure the business, bank account and registrations are in your name if you run it. Many schemes and protections depend on it.

Growing your business

• Hire help, often other women. The data shows women-led businesses that hire usually hire women. Check the full cost with the hiring cost calculator.
• Sell beyond your area: online marketplaces, ONDC, exhibitions and government procurement through GeM.
• Formalise: GST registration and proper accounts make it easier to sell to businesses and to borrow more.
• Keep learning: short courses in digital marketing, accounting and your trade pay off quickly.

Frequently asked questions

What share of small businesses in India are owned by women?
26.93% of small proprietary businesses in 2025, according to MoSPI’s ASUSE, and more than 60% of small manufacturing units.

Are there loans specifically for women entrepreneurs?
Stand-Up India and the Budget 2025-26 scheme for first-time women, SC and ST entrepreneurs focus on women among others, and Mudra, PMEGP and CGTMSE offer better terms or subsidies to women.

Does Udyam registration help women entrepreneurs?
Yes. It records women ownership, which helps with procurement preferences and some schemes, and it’s free.

Can I run a business from home as a woman entrepreneur?
Yes. Many successful businesses start at home. Check whether your trade needs a licence, such as FSSAI for food, and your housing society’s rules.

Where can I promote my business?
Online on Google and social media, and free in the India Business Directory, where customers search by city and category.

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Sources

1. MoSPI, ASUSE 2025 factsheet (January to December 2025)
2. MoSPI, Press note on the ASUSE 2025 detailed report (6 May 2026)
3. Pradhan Mantri MUDRA Yojana
4. KVIC, PMEGP portal
5. Credit Guarantee Fund Trust for Micro and Small Enterprises
6. Stand-Up India
7. Ministry of MSME, Udyam Registration portal
8. Government e-Marketplace (GeM)

Last reviewed November 7, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.