How Financial Loans Boost Women-Led Business Ideas? (File )
The Periodic Labour Force Survey (PLFS) carried out by the Ministry of Statistics and Programme Implementation (MoSPI) indicated a remarkable rise in labour force participation among women in India.The Labour Force Participation Rate (LFPR) of women aged 15 years and above was 41.7 in 2023-24, as per estimates. This rising trend shows an increasing number of women contributing to the economy, and financial loans can be a significant contributor to funding their entrepreneurial activities.
Vivek Tiwari, MD & CEO, SATYA MicroCapital Ltd, stresses that loans from the financial sector can achieve more than simply bringing in capital; they can give voice and strength to a woman's right to lead. Women-founded startups are still undercapitalized, raising substantially lower funding rounds compared to the industry average. Tiwari adds that venture capital support for women-founded startups fell from $6.5 billion in 2021 to $1.1 billion in 2023, not because they underperformed, but because of continued gendered risk perceptions.
Public lending programs like Pradhan Mantri Mudra Yojana (PMMY) have made a significant impact on women entrepreneurs. In the last 10 years, PMMY has approved over 52 crore loans worth Rs 32.6 lakh crore, with more than 2.22 lakh crore rupees disbursed to 4.24 crore women entrepreneurs during FY 2023–24. Official statistics show that 63.6% of the total Mudra beneficiaries during the year were women entrepreneurs.
The PM SVANidhi Yojana has benefited women entrepreneurs as well. The scheme provided working capital loans to more than 30.6 lakh women street vendors, which allowed them to grow from survival to scalable businesses. According to a study carried out by SBI in 2023, 43% of the beneficiaries are women street vendors, while 44% of PM SVANidhi beneficiaries belong to the OBC category.
Tiwari points out that institutional credit is critical for women entrepreneurs, especially those who lack traditional collateral. He suggests that loans become a long-term bet on participative growth rather than short-term credit risk. "With India aiming for 8% GDP growth in 2030, the arithmetic is straightforward financially empowering women is not just moral, it's economic," he added.
Financial credit can be a key factor in empowering women entrepreneurs in India. Initiatives such as PMMY and PM SVANidhi Yojana have been effective, but there is still much to be done to bridge the gender gap in credit access. Institutional credit and a redefinition of lending can help unlock the potential of women entrepreneurs and drive India's economic growth.
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