Women's Business Ownership and Employment in India

Key Findings from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025

• The survey by the National Statistics Office (NSO) highlights a positive correlation between women's business ownership and employment in urban areas.
• In Greater Visakhapatnam, women owned 31% of businesses and constituted 42.5% of the workforce.
• In Surat, women owned 43.2% of businesses and made up 41.4% of the workforce.
• Cities focused on trade rather than manufacturing and services often exclude women, with less than 20% of the workforce being women.
• In Delhi, women own 16.2% of businesses and represent about 13% of the workforce.
• Srinagar ranks lowest with women owning 9.9% of businesses and accounting for just over 10% of the workforce.

The data suggests that higher women's business ownership correlates with increased women's employment. Despite a rise in female labor participation to 27.2% in 2025 from 19.8% in 2018, gender disparities in wages and employment opportunities remain significant.

Challenges and Opportunities for Women in Business

• Women's access to business finance and institutional credit remains limited.
• The Bharatiya Mahila Bank, aimed at women, failed due to lack of planning and was less effective than existing banks like SBI.
• Despite women's financial inclusion, the credit-to-deposit ratio is 43% for women compared to 93% for men.
• Women face barriers due to social status and lack of collateral.

The micro-finance and informal lending sectors are more accessible to women, reflecting their financial realities and reliability as borrowers.

Social Implications

Despite financial struggles, women are seen as potential economic contributors, yet remain vulnerable to social issues like dowry-related violence, even among the educated middle class. This highlights the urgent need for enhancing women's financial independence.

Disclaimer: Views expressed are personal and do not represent the opinions of Business Standard.