A new study highlights how promoting female entrepreneurship can greatly enhance women’s workforce participation. By creating more opportunities for other women, female-led businesses can drive significant economic growth, it says.
Imagine a world where women, though half the population, own less than a fifth of businesses.
This is the reality the World Bank uncovered in a survey spanning 138 countries from 2006 to 2018.
Even more intriguing is how female-owned businesses empower other women.
In male-owned firms, only 23% of workers were women, but female-owned businesses employ far more women. And while just 6.5% of male-owned businesses have a woman as the top manager, over half of female-owned firms are led by women.
In India, the situation is even more challenging. Female labour participation and entrepreneurship are low, with the total number of women in the workforce barely changing over the past 30 years.
But the picture looks slightly better when it comes to entrepreneurship.
Women make up about 14% of entrepreneurs and own a significant share of micro, small, and medium enterprises (MSMEs). They contribute notably to industrial output and employ a substantial portion of the workforce, according to the 2023 State of India’s Livelihoods Report., external
Most MSMEs in India are microenterprises, with many women-owned businesses being single-person ventures, according to Niti Aayog, external, a government think-tank. While some women-owned enterprises employ staff in big numbers, a large majority operate with very few workers.
