Loans, Leadership & Bias

India's streets echo with stories of resilience, yet its MSME business networks tell a different tale—one where securing funding, finding mentorship and growing remains an uphill climb for women entrepreneurs

- By Abhishek Sharma

Consider this: a confident entrepreneur walks into a bank with a strong business plan, years of experience and the drive to build something of her own. She ticks every box on paper -- education, expertise and a vision to transform the industry. Yet, as she sits across from the loan officer, the talk veers from numbers and strategy to collateral and 'family support'. An unspoken question hangs in the air, casting a shadow of uncertainty.

This scenario is more often real than imaginary. Across the country, several women are fighting a silent battle against market competition and an invisible wall of bias. While the government promotes entrepreneurship and financial inclusion, the reality remains harsh. Banks hesitate, investors question, and opportunities slip through their fingers, not for lack of merit but for lack of trust.

This scenario reflects a broader trend in India's MSME sector, the backbone of the economy, as it contributes about 30 per cent to the nation's gross domestic growth (GDP). According to the MSME Ministry Performance dashboard, the total number of women-owned MSMEs registered on the Udyam portal is 2.4 crore today, a significant rise from 1.84 crore (18.4 million) reported in July 2024. However, despite the progress, challenges persist.

The Economic Survey 2025 highlights that while over 50 per cent of India's artisans are women, only 22 per cent of MSMEs are women-owned, suggesting underrepresentation in formal enterprises. Experts say this disparity highlights the need for continued efforts to support women entrepreneurs, particularly in accessing finance and overcoming systemic biases.

Biases and Prejudices