Changing Face of Business Ownership

Women business owners today play a critical role in building sustainable ecosystems for economic growth and social progress. From micro enterprises to innovative growth oriented businesses, women-owned businesses have a substantial impact on job creation and the global economy.

Women's business ownership is now regarded as crucial to improving the quality of life of women in India and the overall society. Women have come a long way in building valuable enterprises that also have a substantial impact on job creation and the global economy. Today,

Women make over 70% of consumer purchasing decisions
Women impact over US$20 trillion in annual global spend
32-39% of all private businesses globally are women-owned
In the developing world, there are 8-10 million small and medium women-owned businesses
On average, women earn only 1% of large corporate and government spend globally

Women Business Ownership and Economic impact in India

India ranks as one of the most active country for women entrepreneurs1, with women making up 49% of the entrepreneurs in the country, placing India ahead of Hong Kong and France. However, India's share of women's contribution to GDP is 17%, significantly lower than the global average of 37%2. By doubling the contribution of women, India could boost its GDP by $0.7 trillion in 2025, translating into a positive economic impact. The Indian government is committed to collaborating with the private sector to close the gender gap, with the states of Karnataka, Kerala, Tamil Nadu, West Bengal together constituting over 50% of women owned MSMEs

Challenges faced by women-owned businesses

Limited access to Markets
Limited information on how approach and conduct business with corporates
Limited knowledge on corporates supplier diversity programs
Limited awareness of state government policies that support women entrepreneurship
Limited access to Capacity
Women entrepreneurs often require training in all aspects of running a business; from financial accounting to building a presence online
Limited access to Finance
Limited financial awareness and understanding of financial products/services, generating reluctance among women to access formal sources of finance
Financial institution's perception of women having higher a risk profile in the absence of collateral security and guarantee/support by male family member
Financial institutions are making less efforts to design and promote tailored financial products for women-owned businesses

Importance of Supplier Diversity

Leads to competitive and dynamic supply options

Reduces costs and demonstrated return on investment
Creates access to innovative products and services
Enhances corporates image and brand with customers
Contributes to economic opportunity in target markets
Helps ensure empowered families and communities: women reinvest 90% of their income into their families, as opposed to 40% by men

1 Global Entrepreneurialism Report, 2015, BNP Paribus
2 The Power of Parity: Advancing Women's Equality in India, November 2015, The McKinsey Global Institute

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