Women entrepreneurs in India are increasingly entering sectors traditionally dominated by men, particularly in skilled, service-led and digitally enabled categories, according to new internal data released by Tide, a business management platform for small and medium enterprises.
The data, which shows activity only on Tide’s platform and not the wider industry, shows that women from tier 2 and 3 cities are formalising businesses in areas such as device repair, accounting and compliance services, nursing-led care, and micro-manufacturing, signalling a structural shift in how women participate in India’s entrepreneurial economy.
Despite gradual improvements, women entrepreneurs in India, particularly in tier 2 and 3 cities, continue to face significant challenges due to limited financial literacy and bureaucratic obstacles. A 2024 white paper by the Reserve Bank Innovation Hub found that only 3 per cent of women entrepreneurs in these regions have access to external funding such as bank loans or equity investments.
Women Entrepreneurs And India's Business Landscape
Women currently account for 18.7 per cent of Tide’s India member base, representing more than 180,000 women entrepreneurs. A significant proportion of new women-led businesses on the platform are being launched by women aged between 27 and 31, aligning with India’s largest working-age demographic cohort. This group is increasingly visible on digital business platforms as part of a broader move towards formalisation and regulated business practices.
Tide stated that the trend is particularly pronounced outside metropolitan centres. Tide’s data shows growing participation from smaller towns such as Gulharia and Bisrakh in Uttar Pradesh, Harnul in Maharashtra, and Indore in Madhya Pradesh. In these locations, women are setting up skill-based and service-led enterprises and using digital tools for payments, accounting and compliance.
Interestingly, nearly 24,000 women-led micro, small, and medium enterprises (MSMEs) have shut down across India over the past five years (July 2020 to November 2025), Minister of State for MSMEs Shobha Karandlaje told Parliament, even as overall registrations of women-owned units rose sharply during the same period. This has resulted in the loss of 1,61,580 jobs nationwide.
“Women entrepreneurs in India do not lack talent or ambition; access holds them back. Unconscious gender bias and systemic barriers limit their chances to thrive. One of the biggest hurdles for women-owned MSMEs is securing formal capital,” said Kinara Capital’s Founder and CEO, Hardika Shah, earlier.
While women in their late twenties and early thirties are prominently represented, the data pointed to wider participation across working-age women, indicating a longer-term shift towards entrepreneurship as a route to financial independence and flexible employment in non-metro India.
Traditionally female-dominated sectors such as tailoring and beauty services continue to feature on the platform, but Tide’s data highlighted a noticeable expansion into categories historically seen as male-dominated. These include mobile, tablet and computer repair businesses led by women, particularly in West Bengal and urban clusters of tier 2 cities, as well as accounting and tax services where young women are taking on formal financial and compliance-led roles.
Nursing and personal care services are also emerging strongly from Madhya Pradesh, while sewing machine-based micro-manufacturing units are increasingly formalising operations through digital payments and accounting tools. According to Tide, these shifts reflect women breaking occupational stereotypes and using technology to scale incomes and improve business sustainability.
Participation In The Labour Force
According to the Periodic Labour Force Survey (PLFS) data released by the Ministry of Statistics and Programme Implementation (MoSPI) covering the period up to 2023-24, there has been a notable uptick in female participation, rising to over 37 per cent, possibly due to the gig economy and rising self-employment of rural women. Ironically, urban women's employment figures have been showing a marginal decline.
Gurjodhpal Singh, chief executive of Tide in India, said the company's data shows a generational transition in entrepreneurship. “What’s most inspiring is how women are breaking stereotypes, whether it’s repairing devices, managing accounting services, or running nursing-led service models,” Singh said. “Women in their late twenties and early thirties enter entrepreneurship with stronger digital familiarity and a clear desire for self-determined growth.”
The company’s data also highlighted a sharp acceleration in formalisation. Between March and November 2025, the number of new women-led businesses on the Tide platform rose by 111 per cent. Tide attributes this growth to increasing adoption of digital payments, structured financial management and regulated business practices, particularly among women in the early stages of their careers.
Many of these women are operating solo enterprises while balancing family responsibilities, caregiving roles or flexible work arrangements. Tide said this digital-first approach is helping improve credit visibility for women entrepreneurs, a long-standing challenge for microbusinesses led by women in India.
A report by the International Finance Corporation (IFC) has highlighted that while women are active in the workforce, their representation in decision-making roles within these smaller firms remains dismally low, often due to a bias that views women’s income as supplementary rather than primary.
The International Finance Corporation estimates the financing gap for women-owned MSMEs in India at more than USD 158 billion, and despite advances in digital lending, this shortfall is likely to widen. The reasons are complex. Apart from limited collateral, traditional financial institutions remain inherently risk-averse when it comes to lending to women entrepreneurs.
The International Finance Corporation estimates the financing gap for women-owned MSMEs in India at more than USD 158 billion, and despite advances in digital lending, this shortfall is likely to widen. The reasons are complex. Apart from limited collateral, traditional financial institutions remain inherently risk-averse when it comes to lending to women entrepreneurs.
Engagement with digital financial tools is also rising. The most-used products among women-led businesses on the platform include debit services for day-to-day business spending, digital bill payments for utilities and vendors, and QR-based payment acceptance. Tide said QR payments, in particular, have reduced cash dependence for home-based and micro enterprises and improved transaction visibility.
Tide said it plans to expand its digital tools, financial education initiatives and on-ground programmes across tier 2, 3, 4 and 5 regions. The company has set a target of supporting 500,000 women entrepreneurs to start and run businesses by 2027, it said.
Meanwhile, Tide India's Bharat Women Aspiration Index (BWAI) 2024 revealed that about 95 per cent of Indian women are unaware of existing government financial schemes or initiatives to leverage for their business. The report mentioned that this indicates women are turning to the informal sector for access to credit. About 52 per cent of women entrepreneurs have access to financial credit, indicating that one in two entrepreneurs has access to finance, while 47 per cent said they face challenges, it stated.
The same index in 2025 stated that despite their growing role in shaping India’s economy, women entrepreneurs in Bharat’s smaller cities remain cut off from critical peer support and growth ecosystems. It added that a striking 86 per cent of women entrepreneurs either rarely or never participate in any business networks, significantly hampering their business expansion, access to funding, and mentorship opportunities. |
