Promoting Female Entrepreneurship as a Key Driver of Economic Growth

A new study highlights the economic potential of promoting female entrepreneurship, emphasizing that increasing women’s workforce participation could drive substantial economic growth. While women represent nearly half of the global population, they own less than 20% of businesses worldwide, according to a World Bank survey covering 138 countries. Female-led businesses, however, provide more employment opportunities for women compared to male-owned ones, underscoring their economic significance.

In India, where female labour participation remains low, women account for only 14% of entrepreneurs, mostly operating microenterprises. The government suggests that boosting female entrepreneurship could elevate women’s role in the workforce and contribute more meaningfully to the economy. Female-led companies often generate more opportunities for other women, leading to higher wages and profits.

However, key barriers persist, such as limited childcare and inadequate transportation, which restrict women’s access to work. Addressing these barriers through policy is essential, as creating jobs and expanding labour demand can have a quicker impact than attempting to shift deep-rooted social norms.

Research also highlights the need for secure job contracts and social security benefits to support women in salaried roles. Removing obstacles to female entrepreneurship and workforce participation could significantly advance economic growth, making this a vital area for policy focus and investment.