92  Women and Rural Entrepreneurship

92.1 Women Entrepreneurship — Concept

Woman Entrepreneur = one or a group of women who initiate, organise and run a business enterprise. Government of India definition: an enterprise owned and controlled by a woman having minimum financial interest of 51% of capital and employment of at least 51% women.

92.2 Categories of Women Entrepreneurs

TipCategories of women entrepreneurs
  • Affluent — well-off background.
  • Pull-factor — opportunity-driven.
  • Push-factor — necessity/family pressure.
  • Rural women — agri, dairy, handicrafts.
  • Self-employed — small.
  • Educated middle-class.
  • First-generation.
  • Inherited business.
  • Tech / startup women.
  • Social entrepreneurs.

92.3 Famous Indian Women Entrepreneurs

TipIndian women entrepreneurs
  • Kiran Mazumdar-Shaw — Biocon.
  • Indra Nooyi — PepsiCo (ex).
  • Vandana Luthra — VLCC.
  • Falguni Nayar — Nykaa.
  • Ghazal Alagh — Mamaearth.
  • Suchi Mukherjee — Limeroad.
  • Shradha Sharma — YourStory.
  • Aditi Gupta — Menstrupedia.
  • Upasana Taku — MobiKwik.
  • Richa Kar — Zivame.
  • Radhika Aggarwal — ShopClues.
  • Sairee Chahal — SHEROES.
  • Anu Aga — Thermax.
  • Ekta Kapoor — Balaji.
  • Shahnaz Husain — Beauty.
  • Mallika Srinivasan — TAFE.

92.4 Problems Faced by Women Entrepreneurs

TipCommon challenges
  • Financing — lower access to credit.
  • Family responsibilities — work-life balance.
  • Mobility and safety.
  • Limited networks.
  • Gender stereotypes.
  • Education gap in technical fields.
  • Legal / regulatory hurdles.
  • Marketing experience.
  • Risk-aversion conditioning.

92.5 Government Schemes for Women Entrepreneurs

TipSchemes for women
  • Stand Up India 2016 — loans Rs 10 lakh to 1 Cr.
  • Mahila Udyam Nidhi (SIDBI).
  • Mahila E-Haat — online marketplace.
  • Trade-Related Entrepreneurship Assistance and Development (TREAD) scheme.
  • Annapurna Scheme — food catering.
  • Bhartiya Mahila Bank (merged with SBI 2017).
  • NRLM-Aajeevika — rural livelihood.
  • MUDRA Yojana — many women borrowers.
  • MSME Samadhaan — delayed-payment dispute redressal.
  • STEP — Support to Training and Employment for Women.
  • Skill India — PMKVY.
  • Mahila Samriddhi Yojana.
  • WEP — Women Entrepreneurship Platform (NITI Aayog).
  • Stree Shakti Package — SBI.

92.6 Rural Entrepreneurship — Concept

Rural Entrepreneurship = establishing industrial and business units in rural areas (population < 10,000 by Census). It mobilises local resources, generates employment, prevents migration, and reduces regional imbalances.

92.7 Types of Rural Industries

TipRural industry types
  • Agro-based — sugar, oil mills, dairy, papad.
  • Forest-based — bamboo, honey, gum.
  • Mineral-based — clay, stone, gypsum.
  • Engineering and services — repair, transport.
  • Textile-based — handlooms, handicrafts.
  • Khadi and Village Industries (KVI).
  • Cottage industries — pottery, weaving.
  • Sericulture, Floriculture, Apiculture, Pisciculture.

92.8 Problems of Rural Entrepreneurs

TipRural entrepreneurship challenges
  • Lack of finance.
  • Poor infrastructure — roads, power.
  • Low literacy / skill.
  • Limited market access.
  • Backward technology.
  • Distribution / logistics.
  • Competition from large urban firms.
  • Bureaucratic procedures.
  • Migration of youth.
  • Climate vulnerability.

92.9 Indian Institutional Framework for Rural Entrepreneurship

TipInstitutions
  • KVIC — Khadi and Village Industries Commission (1957).
  • NABARD — National Bank for Agriculture and Rural Development (1982).
  • MSME Ministry.
  • NSIC — National Small Industries Corporation.
  • SIDBI.
  • NRLM (DAY-NRLM) / Aajeevika — rural livelihood mission.
  • DRDA.
  • CAPART.
  • District Industries Centres (DIC) (1978).
  • SFURTI — Scheme of Fund for Regeneration of Traditional Industries.
  • PMEGP — Prime Minister’s Employment Generation Programme.
  • ASPIRE — Promotion of Rural Entrepreneurship.
  • Stand-Up India.
  • PMFME — formalisation of micro food enterprises.
  • One District One Product (ODOP).
  • MGNREGA — rural employment guarantee.

92.10 Self-Help Groups (SHG) — Bandhan Model

TipSHG-Bank Linkage
  • NABARD pioneered SHG-Bank Linkage 1992.
  • MYRADA model in Karnataka — pioneer NGO.
  • SEWA (Self Employed Women’s Association) — Ela Bhatt 1972.
  • Microfinance — Yunus’ Grameen Bank inspiration; SKS, Bandhan, Bharat Financial.
  • Joint Liability Groups (JLG).
  • Mission Indradhanush.
  • Recent: SHG digital lending.

92.12 Practice Questions

Q 01DefinitionMedium

A "woman entrepreneur" under GoI definition must have minimum equity stake of:

  • A51 %
  • B26 %
  • C10 %
  • D100 %
View solution
Correct Option: A
51 % capital + 51 % women employment.
Q 02SEWAMedium

SEWA was founded in 1972 by:

  • AEla Bhatt
  • BIndra Nooyi
  • CKiran Bedi
  • DVandana Shiva
View solution
Correct Option: A
Ela Bhatt, Ahmedabad.
Q 03KVICMedium

KVIC was established in:

  • A1957
  • B1947
  • C1982
  • D2005
View solution
Correct Option: A
Khadi & Village Industries Commission.
Q 04NABARDEasy

NABARD was set up in:

  • A1982
  • B1969
  • C1947
  • D1991
View solution
Correct Option: A
NABARD 1982.
Q 05SHGMedium

SHG-Bank Linkage was launched by NABARD in:

  • A1992
  • B2005
  • C1972
  • D2010
View solution
Correct Option: A
1992 pilot.
Q 06Mahila E-HaatMedium

Mahila E-Haat is:

  • AOnline marketplace for women
  • BMicrofinance bank
  • CTraining scheme
  • DLand grant
View solution
Correct Option: A
Ministry of WCD platform.
Q 07BioconEasy

Biocon was founded by:

  • AKiran Mazumdar-Shaw
  • BFalguni Nayar
  • CAnu Aga
  • DIndra Nooyi
View solution
Correct Option: A
Kiran Mazumdar-Shaw 1978, Bengaluru.
Q 08DICMedium

District Industries Centres were set up in:

  • A1978
  • B1991
  • C2005
  • D2014
View solution
Correct Option: A
DIC 1978 — single-window for rural/small industry.
Q 09NykaaEasy

Nykaa was founded by:

  • AFalguni Nayar
  • BVandana Luthra
  • CGhazal Alagh
  • DSuchi Mukherjee
View solution
Correct Option: A
Falguni Nayar (2012).
Q 10PMEGPMedium

PMEGP is administered by:

  • AKVIC + DIC + State Boards
  • BRBI only
  • CSEBI
  • DNABARD
View solution
Correct Option: A
PMEGP nodal agency is KVIC; DIC and State Khadi Boards implement.
Q 11GrameenHard

Grameen Bank microfinance model is by:

  • AMuhammad Yunus
  • BSumitomo
  • CSHG-NABARD
  • DSBI
View solution
Correct Option: A
Muhammad Yunus, Bangladesh; Nobel 2006.
Q 12SFURTIHard

SFURTI scheme is for:

  • ATraditional industries cluster
  • BWomen only
  • CBanking
  • DTech
View solution
Correct Option: A
Scheme of Fund for Regeneration of Traditional Industries.
Q 13AajeevikaMedium

Aajeevika (DAY-NRLM) targets:

  • ARural livelihoods / SHG
  • BUrban housing
  • CFDI
  • DTax
View solution
Correct Option: A
National Rural Livelihood Mission.
Q 14WEPHard

WEP for women entrepreneurs is by:

  • ANITI Aayog
  • BRBI
  • CSIDBI
  • DNABARD
View solution
Correct Option: A
Women Entrepreneurship Platform — NITI Aayog 2018.
Q 15ODOPMedium

"One District One Product" (ODOP) promotes:

  • ALocal district specialty products
  • BForeign imports
  • CIT exports
  • DPharma exports
View solution
Correct Option: A
DPIIT initiative.

92.12.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: Women entrepreneurs face unique financing constraints.
R: Stand-Up India (2016) provides loans ₹10 lakh-₹1 Cr for SC/ST/Women.

  • ABoth true; R explains A
  • BBoth true; R does not explain A
  • CA true, R false
  • DA false, R true
View solution
Correct Option: A
S 1Statement-basedMedium

Schemes for women: (i) Stand-Up India. (ii) Mahila E-Haat. (iii) TREAD. (iv) WEP NITI.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(iv) only
View solution
Correct Option: A
S 2Statement-basedHard

Rural institutions: (i) KVIC (1957). (ii) NABARD (1982). (iii) DIC (1978). (iv) NSIC.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(i), (ii), (iii) only
View solution
Correct Option: A

92.13 Quick Recall

ImportantQuick recall
  • Woman entrepreneur (GoI): ≥ 51 % capital + ≥ 51 % women employees.
  • Categories: Affluent · Pull · Push · Rural · Educated middle-class · First-gen · Inherited · Tech · Social.
  • Indian women: Kiran Mazumdar-Shaw (Biocon) · Indra Nooyi · Vandana Luthra (VLCC) · Falguni Nayar (Nykaa) · Ghazal Alagh (Mamaearth) · Anu Aga (Thermax) · Mallika Srinivasan (TAFE) · Ekta Kapoor (Balaji) · Shahnaz Husain.
  • Challenges: finance · family · mobility · networks · stereotypes · education · marketing · risk aversion.
  • Schemes (women): Stand Up India 2016 · Mahila Udyam Nidhi · Mahila E-Haat · TREAD · Annapurna · Bhartiya Mahila Bank · NRLM-Aajeevika · Mudra · WEP (NITI 2018) · STEP · Stree Shakti.
  • Rural entrepreneurship — agri, forest, mineral, engineering, textile, KVI, cottage, sericulture, apiculture.
  • Rural challenges: finance · infrastructure · skill · markets · technology · logistics · bureaucracy · migration · climate.
  • Indian institutions: KVIC (1957) · NABARD (1982) · MSME Min · NSIC · SIDBI · NRLM · DRDA · CAPART · DIC (1978) · SFURTI · PMEGP (KVIC) · ASPIRE · PMFME · ODOP · MGNREGA.
  • SHG: NABARD-SHG Bank Linkage 1992 · MYRADA · SEWA (Ela Bhatt 1972) · Grameen (Yunus); JLG; microfinance (Bandhan, SKS).
  • Modern: tech-women funding · rural e-commerce (Meesho, ONDC) · Agri-tech (Ninjacart, AgroStar, DeHaat) · rural fintech · clusters (Tiruppur, Sivakasi, Moradabad) · GI-tags · solar entrepreneurs · cooperative (Amul, IFFCO) · D2C women brands.