Funding sources
Evaluating the various sources of funding for the business
65% of self-employed women in Indian metros have not taken a business loan, with 39% relying on personal savings to fund their enterprises. Bank loans remain the top choice for women looking to fund their business, preferred by 21% of self-employed women. Meanwhile, loans from non-banking financial companies (NBFCs) are preferred by 3%. Of the self-employed women who have not availed a loan, 25% have enough savings and 26% worry about high interest rates.
Among those availing loans, 53% use personal property or gold as a form of collateral; shares and mutual funds are the least used forms of collateral. Chennai leads in the use of gold as collateral to raise funds, while Kolkata ranks lowest.
Sources of funding for women-led enterprises
Percentage of self-employed women using gold as collateral, by region
India
Delhi
Mumbai
Kolkata
Chennai
Breakdown of banking product usage among self-employed women
Note: CC- cash credit, OD- overdraft, LAP- loan against property, LC- letter of credit, BG- bank guarantee, CMS- cash management system
Others include – Supply-chain finance (6%) and pre-shipment / post-shipment financing (3%)
Percentage of self-employed women using different types of insurance plans for their business
India
Gurugram
Ahmedabad
Kolkata
Coimbatore
Banking preferences
Evaluating the use of banking and insurance products along with implementation of environmental sustainability policy in business
39% of self-employed women utilise cash credit (CC) and overdraft (OD) facilities, followed by corporate credit cards (25%) and property-backed term loans (11%). Only 8% of self-employed women use cash management services for their businesses.
52% of self-employed women in Indian metros have implemented sustainability policies in their businesses, while 14% have approached a bank for sustainability-linked finance.
In Ahmedabad, 91% of those surveyed have insured their businesses, while only 60% in Kolkata have done so. Additionally, 75% of self-employed women in Coimbatore have insured their businesses, while 65% have done so in Gurugram.
Digital adoption
Assessing the digital banking preferences of self-employed women
UPI is preferred for digital transactions across personal payments by salaried women (29%) and business payments by self-employed women (26%). Mobile banking (17%) emerges as the second preferred option, indicating a growing trend towards digital business transactions among self-employed women. Credit cards (13%) also remain popular for business payments.
UPI is the most preferred payment mode across categories, except for payroll, where cash remains predominant. 36% of the self-employed women use cash for payroll and operational expenses.
Delhi leads with 97% of self-employed women using digital modes for business payments, whereas in Kolkata, the comparable figure is 64%. Mumbai and Hyderabad perform above the India average, with only 90% and above of self-employed women making payments digitally.
Preferred method for paying business expenses
City-wise usage of digital modes for paying business expense
India
Delhi
Mumbai
Kolkata
Hyderabad
Perceived gender bias among self-employed women categorised by region; key areas where they face these challenges
India
Delhi
Fund raising and infrastructure / logistics*
Pune
Recruitment / retaining talent and dealing with vendors*
Kolkata
Bengaluru
Dealing with vendors and networking with peers / clients*
Business challenges
Examining the key challenges self-employed women face in their businesses
16% of self-employed women perceive gender bias, with variations observed across metro cities. For instance, in the south, 33% of self-employed women respondents from Bengaluru reported perceiving gender bias, particularly in interactions with vendors and networking with peers and clients. In the western region, 28% of self-employed women in Pune perceived gender bias, particularly in recruitment, talent retention, and vendor interactions.
In the north, fund raising and infrastructure/logistics were identified as the top two areas where self-employed women in Delhi (11%) perceived gender bias. Perceived gender bias is lowest among self-employed women in Kolkata, with many stating it is not a significant issue for them.
Business structure
Understanding the operational structure adopted by self-employed women in their businesses
29% of self-employed women manage all aspects of their business, while only 7% are involved in human resources management, a field traditionally dominated by women.
37% of respondents stated that they employ teams where over 40% are women—an encouraging sign of gender inclusivity in the workplace. In Gurugram, 46% of self-employed women have over 40% women employees, whereas in Chennai, this figure drops to 24%.
Retirement planning is a key priority, with 66% saving for their own retirement and 38% offering retirement benefits to their employees.
Percentage of self-employed women whose workforce consists of more than 40% women, categorised by cities
India
Gurugram
Mumbai
Kolkata
Chennai