From Borrowers to Builders: Women Entrepreneurs Shaping India's Financial Growth

India is witnessing a transformative shift in its financial ecosystem, driven by the entrepreneurial spirit of women. NITI Aayog’s latest report, From Borrowers to Builders: Women’s Role in India’s Financial Growth Story, sheds light on how women are no longer just participants but catalysts in the country’s economic progress. As the Indian Small Business & Franchise Association (ISFA), we support our government’s initiatives in empowering women entrepreneurs by advocating for greater financial inclusion, business opportunities, and policy support.

The Evolution: Women as Economic Contributors For decades, women in India were seen primarily as consumers or borrowers in the financial sector. However, with increasing access to credit, government initiatives, and evolving social norms, they are transitioning into business owners, franchise leaders, and financial decision-makers. This transition is crucial for India's goal of becoming a $5 trillion economy, as empowered women entrepreneurs contribute significantly to GDP growth, job creation, and innovation.

Key Insights from the NITI Aayog Report

1. Access to Finance & Credit – Women’s access to institutional credit has surged, thanks to schemes like Mudra Yojana and Stand-Up India. These initiatives have enabled women to scale their businesses beyond micro-level ventures, integrating them into mainstream industries.
2. Rising Women-Led Enterprises – Women-led businesses now account for a substantial share of India’s MSME sector. The franchise industry, in particular, has seen an increase in women franchisees who bring resilience and innovation to the market.
3. Challenges in Scaling Businesses – Despite progress, women entrepreneurs still face barriers such as limited access to collateral-free loans, lack of mentorship, and societal constraints. Addressing these challenges requires policy refinements and corporate support mechanisms.
4. Impact of Digital & Financial Literacy – The adoption of digital payments, fintech solutions, and financial literacy programs is helping women manage finances efficiently and build sustainable businesses.
5. Women in Leadership Roles – The report highlights the growing presence of women in leadership positions across industries, showcasing their ability to drive innovation, strategic decision-making, and economic resilience.
6. Government & Private Sector Collaboration – A concerted effort between the government, financial institutions, and private sector stakeholders is necessary to create an ecosystem where women-led businesses can flourish.

ISFA’s Support for Government Initiatives At ISFA, we actively support government policies and programs that empower women entrepreneurs. We advocate for:

• Networking & Mentorship – Encouraging collaboration between women entrepreneurs, industry leaders, and investors to foster business growth.
• Franchise Opportunities – Promoting the government’s initiatives by raising awareness about franchise models that can help women start and expand their businesses.
• Skill Development Programs – Supporting government-led financial literacy, digital marketing, and business management training programs to help women entrepreneurs succeed.
• Policy Advocacy – Engaging with policymakers to ensure effective implementation of government schemes that enhance financial inclusion and business growth for women.
• Access to Global Markets – Endorsing government efforts to facilitate Indian women entrepreneurs’ participation in international trade forums, delegations, and business expos.
• Encouraging Investment in Women-Owned Startups – Promoting financial and policy incentives that encourage investments in women-led enterprises and startups.

The Road Ahead: Unlocking the Full Potential of Women Entrepreneurs The journey from borrowers to builders is a powerful narrative that reflects India's evolving business landscape. To ensure continued progress, stakeholders across government, industry, and financial institutions must come together to:

• Enhance funding opportunities through dedicated financial products for women entrepreneurs.
• Promote gender-inclusive policies that support women in scaling their businesses beyond the micro-enterprise level.
• Increase representation of women in business leadership roles to inspire and mentor the next generation of female entrepreneurs.
• Strengthen digital inclusion and financial literacy to equip women with the tools needed to thrive in the modern business environment.

Conclusion
The transition of women from borrowers to builders is reshaping India’s financial and entrepreneurial landscape. NITI Aayog’s report is a testament to the growing impact of women entrepreneurs in driving economic progress. ISFA proudly supports the Indian government’s efforts in empowering women-led businesses and remains committed to fostering a business environment where women not only participate but lead India’s financial growth story.

Women entrepreneurs are not just building businesses; they are building India's future. With the right support, resources, and opportunities, they will continue to play a transformative role in shaping the economy.

Join us in supporting government initiatives that empower women entrepreneurs. Together, we can build a stronger, more inclusive India.