The most visible are the effects of women-run and women-led businesses and women entrepreneurship in economy on the economy. Research shows that the increased involvement of women entrepreneurship can raise GDP growth by more than one percentage point in countries such as India, showing the importance of women entrepreneurs in long term development and even illustrating how women entrepreneurship boosts GDP in measurable ways.
In fact, it means that female business owners are not just a side show, but a major driver of the coming of resilient economies. Therefore, the question should not be whether we can afford to support them but rather how quickly we can utilize their full potential, especially since female entrepreneurship growth continues to expand across regions.
Why women entrepreneurs matter:
To begin with, businesses led by women bring the markets new ideas and perspectives that may have been ignored. A study in India revealed that women-owned companies are more innovative when they have access to internal financing and a supportive environment. Besides innovation, which results in economic growth, employment also broadens beyond the conventional sectors. This reflects the broader importance of women entrepreneurship and the role of women in business across sectors.
Moreover, when women decide to become entrepreneurs, they usually hire others and invest back in their communities. The micro, small and medium enterprises (MSME) sector in India reveal that women-led businesses range between 13.5 and 15.7 million in number, providing employment to 22-27 million people. This scale shows the women owned businesses impact and strengthens arguments for economic empowerment for women and sustained gender inclusive growth, especially within the women in MSME sector.
Third, about the economy as a whole, inclusion of more women in entrepreneurship will lead to closure of the gender gap in the labor force participation. For instance, the rate of female labor force participation and female self-employment in India was 51.9 % in 2017-18 and has risen to 67.4 % in 2023-24, which is significant growth. All these factors combined lead to the conclusion that women entrepreneurship is at the core of sustainable and socially inclusive growth and highlights the ongoing rise of women entrepreneurs in India.
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