Determinants of Female Entrepreneurship in India

This paper examines the nature and determinants of female entrepreneurship in India based on survey data. The first part assesses basic characteristics of female entrepreneurship in India, while the subsequent sections analyse key determinants of female entrepreneurship based on the literature, and test their importance at the state level in India with the support of regressions on panel-data. It also reviews existing policies bearing on female entrepreneurship and makes recommendations for further policies in this area. Entrepreneurship can create new economic opportunities for women and contribute to overall growth and exit from poverty. The potential flexibility in time use from entrepreneurship can also facilitate balancing work and family obligations for women. However, entrepreneurs, both male and female, are relatively scarce in India compared to peer countries, and tend to work in small units often outside the formal sector. While many of the barriers to entrepreneurship are common to both genders (access to capital and business networks, adequate training and facilities) female entrepreneurs face gender biases stemming from socio-economic factors or specific biases in laws such as inheritance laws.