Women Entrepreneurs in India: Key Issues & Solutions (2025)

India is witnessing a powerful surge in women-led businesses, with over 8 million women entrepreneurs now shaping the nation’s economy. Despite progress and policy support, the problems faced by women entrepreneurs remain a major hurdle. Whether it’s limited financial support, lack of mentorship, or societal barriers, these challenges demand urgent attention. As business women in India rise across diverse sectors, it’s crucial to spotlight these issues and build a supportive ecosystem. This guide dives deep into the most common obstacles faced by women entrepreneurs, startup founders, and offers real-world strategies for lasting impact.

The Rise of Women Entrepreneurs in India

In 2025, India is home to over 8 million women entrepreneurs, accounting for 14% of the country’s total entrepreneurs. This shift is bolstered by government initiatives like Startup India, Stand-Up India, and the Women Entrepreneurship Platform (WEP), all designed to facilitate the growth of women entrepreneurs in India.

Fintech, e-commerce, wellness, fashion, and education sectors have seen a notable influx of women startup founders. However, despite these strides, persistent challenges for women entrepreneurs hinder broader participation and success.

Top Problems Faced By Women Entrepreneurs Today

A recent report says that by offering equal opportunities to women, India could add 770 billion dollars to its GDP by 2025. Thus, if we address the problems women entrepreneurs face, India can speed up its development.

Let us look at some of the top challenges and problems faced by women entrepreneurs today:

1. Societal Expectations and Gender Norms

• Society is built upon cultural norms. Being an entrepreneur is still frowned upon for women in Indian society. They are seen as incapable of starting or leading ventures.
• They also often have to deal with gender discrimination, both in the business world and in society at large. Women are still expected to stay at home and take care of their families in many cases. This can limit their time and energy for their businesses.
• Women entrepreneurs also have to manage multiple things. They often have to juggle family with their business.
• Despite these problems faced by women entrepreneurs, many overcome them and build successful businesses.
• Women are often expected to prioritize family duties over career aspirations. In many communities, entrepreneurship is still male-dominated, and women pursuing business are seen as neglecting familial responsibilities. These societal pressures severely limit women’s freedom to explore entrepreneurial paths.
• Real-life Example: Sneha Patil from Maharashtra faced harsh skepticism from her family and village when she started a solar panel business. She constantly had to justify her ambition and prove her credibility. Her journey reflects a widespread issue where business women in India must challenge societal roles before entering the market.

2. Financial Barriers and Funding Access

• One of the other major problems women entrepreneurs face is the gender pay gap. Women are not deemed worthy enough to earn as much as men for the same or even more amount of work.
• They have limited access to loans, grants, and other financial resources.
• This is because investors might be biased, or women may not have strong networks to help them secure funding.
• They are restricted when it comes to using capital because most often they do not own wealth.
• Most women entrepreneurs in India lack access to financial resources due to inadequate collateral, gender bias in lending, and limited financial literacy. Traditional funding mechanisms often overlook women-led startups.
• Real-life Example: Neha Bagaria’s JobsForHer initiative faced early investor resistance. Investors doubted the business viability because of stereotypical views on gender. However, she found success by targeting women-focused VCs who recognized the societal need for her platform. Her story illustrates the persistent problems for women entrepreneurs regarding financial independence.

3. Work-Life Balance Challenge

There are several reasons why women entrepreneurs cannot have a work-life balance:

• Women are often the primary caregivers for their children. Running a business while also managing personal responsibilities can be tough. The lack of affordable childcare and parental leave is a major concern.
• Many women entrepreneurs work in industries dominated by men, so they may not have the same access to flexible work as men.
• Women entrepreneurs often encounter mental and physical health issues due to the numerous roles and responsibilities they juggle. These challenges result in higher stress levels compared to the average person. Addressing these problems women entrepreneurs face and finding ways to balance their diverse roles is crucial for maintaining both productivity and well-being.
• The dual burden of managing household and business responsibilities leads to burnout, missed opportunities, and stagnant growth. These pressures disproportionately affect business women in India, especially those with young children or caregiving duties.
• Real-life Example: Bhavna Sarin created Mompreneur Circle to offer structured support for women entrepreneurs balancing family and business. Her initiative highlights the need for support ecosystems that respect women’s multiple roles.

4. Limited Networking and Mentorship

• Networking is a cornerstone of business success, but women startup founders often lack access to business networks dominated by men. Without mentorship, many women struggle with guidance on scaling their ventures, pitching ideas, and making critical decisions.

• Real-life Example: Aditi Gupta, founder of Menstrupedia, turned to global communities like Acumen and TEDx to build a strong support system. Her story shows that proactive networking can create opportunities even when conventional mentorship is unavailable locally.

6. Cultural and Psychological Barriers

• Fear of failure, self-doubt, and societal judgment create invisible barriers that limit growth. Women often second-guess their decisions or delay launching ideas because they fear criticism or rejection.

• Real-life Example: Divya Gokulnath of BYJU’S has openly spoken about overcoming imposter syndrome. Her story encourages women startup founders to embrace confidence as a learned skill and to challenge inner narratives that restrict their growth.

7. Skill Gaps and Digital Literacy

• While many women are highly educated, there’s often a gap in real-world business skills like taxation, compliance, digital marketing, and tech adoption. This limits scalability and innovation in their ventures.

• Real-life Example: Rekha Devi, a participant in the Digital Beti program, transformed her life by acquiring digital marketing and accounting skills. She now mentors other rural artisans, showing how knowledge can empower women entrepreneurs in India to modernize their business models.

Government Schemes and Institutional Support

The government acknowledges the problems women entrepreneurs face in our country and supports them by implementing various initiatives and policies to address this issue. This section provides a detailed overview of the key government schemes for Women Entrepreneurs, policy changes, and resources available to support women entrepreneurs in India.

Scheme Name	Purpose	Key Features
Stand Up India Conspire	Financial support for women and SC/ST entrepreneurs	Loans from ₹10 lakh to ₹1 crore for greenfield projects via banks
Pradhan Mantri Mudra Yojana (PMMY)	Credit access for small and medium enterprises (SMEs)	Loans up to ₹10 lakh without collateral; supports inclusion in financial system
Mahila Udyam Nidhi Scheme	Funding for starting or expanding small businesses	Low-interest loans for machinery/equipment purchase
Entrepreneurship Development Programs (EDPs)	Training and mentorship for women entrepreneurs	State-led programs offering mentorship, financial aid, and startup guidance
Nari Shakti Puraskar	Recognition of women’s contribution to society and economy	National award honoring outstanding women entrepreneurs

Recommended Read: Business Loan for Women

Strategies for Women Entrepreneurs to Maneuver Through Problems

Women entrepreneurs face several problems in their journey, as discussed above. These difficulties can feel overwhelming, ranging from managing financial inequalities and overcoming gender prejudices to striking a balance between personal and professional obligations. Here are a few key coping strategies that every woman entrepreneur can implement:

1. Building a Support Network for Women Entrepreneurs

• To address the problems women entrepreneurs face, it is vital to connect with like-minded individuals who share similar challenges. Women can create a powerful network that fosters mutual growth and empowerment by supporting and uplifting one another.
• Don’t be afraid to ask for help when you need it. Reaching out for support is a sign of strength, not weakness. This will help you gain useful insights and grow your business.
• Finally, remember to give back to your network. Whenever you get a chance to help others, always come forward; this way, you help create a cycle of mutual aid that benefits everyone.

2. Prioritising Self-Care and Mental Health

• Dedicate some time each day to doing something for yourself. This could include indulging in any hobby, practicing yoga, etc. This will ensure that you stay focused and motivated, allowing you to tackle business challenges.
• Eating healthy, exercising, and getting enough sleep are essential. A balanced diet fuels your body and mind, and regular exercise keeps you fit and helps clear your mind from stress.
• Spend time with family and friends or connect with others. Discuss the entrepreneurial challenges you face as a woman.

3. Seeking Out Mentors and Advisors

• Reach out to your network of contacts and see if anyone knows of mentors who can help with problems women entrepreneurs face. A mentor can help you in many ways, providing you with insights and ideas that can help you grow your business.
• Try to attend business events and conferences where you can meet potential advisors. These gatherings are great for networking, getting ideas, and being inspired by other successful people.
• You can also search online for mentors and advisors. Platforms like LinkedIn and many other communities facilitate mentorship relationships, allowing you to find individuals who align with your needs and goals.

4. Advocating for Policy Changes and Reforms

This could include campaigning or organising:

• Initiatives promoting mentorship are crucial to tackling the problems women entrepreneurs face. Through mentoring programs, female entrepreneurs are paired with skilled professionals who provide insightful guidance and practical counsel, helping them navigate and overcome business challenges more effectively.
• Funding opportunities for businesses owned by women. The Indian government also has many schemes and projects that fund women-led businesses and can be very helpful. Some of the government initiatives are mentioned in the next sections.
• Call for changes in government rules that make it easier for women to start and grow their businesses.

Case Studies and Success Stories

In India, women entrepreneurs are making a big impact in various businesses. Let’s look at a few successful women who overcame the problems faced by women entrepreneurs:

1. Falguni Nayar, Nykaa

Nykaa’s founder, Falguni Nayar, is a self-made woman. She turned her passion for makeup into a successful business. Nayar is a former investment banker who quit her job to start Nykaa. It is an e-commerce company that sells beauty and wellness products.

Nykaa has faced many difficulties along the way. The company has dealt with several issues, including counterfeit products. Despite all these problems, Nykaa has continued to grow and be successful.

2. Nina Lekhi, Baggit

Nina Lekhi is the founder and CEO of Baggit, a popular Indian handbag brand. Lekhi started her company in 1990 with just Rs. 5000. It has now grown into a multi-crore business. Baggit’s success is due to Lekhi’s clear vision and strong skills. She has built a strong team that shares her commitment to quality and customer service.

3. Kiran Mazumdar Shaw, Biocon Limited

Kiran Mazumdar-Shaw is an Indian business tycoon. She is the chairperson and managing director of Biocon Limited. Biocon is a biotechnology company based in Bangalore, India. She is often credited as the “Queen of Indian Biotech”. Mazumdar started Biocon in 1978 with just Rs 10,000. It is now a multi-billion-dollar company. Mazumdar has been awarded numerous awards, including the Padma Bhushan and the Padma Shri.

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The Future is Women

The problems faced by women entrepreneurs in India ranging from societal norms and financial constraints to lack of mentorship and digital skills highlight the urgent need for inclusive support systems. Empowering women through education, funding, and policy reforms can break these barriers and foster long-term economic growth. With over 8 million women entrepreneurs already contributing to India’s economy, addressing these challenges will not only benefit individuals but also transform communities and industries. From startup founders to rural innovators, women are ready to lead. It’s time to strengthen support for women entrepreneurs and build a truly inclusive entrepreneurial ecosystem in India.

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