According to the report, female-led enterprises have the potential to significantly boost economic growth by expanding possibilities for other women.
Consider a society in which women own less than 5% of enterprises despite making up half of the population.
The World Bank discovered this fact in a survey conducted between 2006 and 2018 in 138 countries.
The way that women-owned enterprises empower other women is even more fascinating.
Women made up only 23% of the workforce in male-owned companies, but they make up a much larger portion of the workforce in female-owned companies. Furthermore, more than half of female-owned enterprises are run by women, but just 6.5% of male-owned businesses have a female top management.
Why are millions of Indian women dropping out of work?
In India, the situation is even more challenging. Female labour participation and entrepreneurship are low, with the total number of women in the workforce barely changing over the past 30 years.
But the picture looks slightly better when it comes to entrepreneurship.
Women make up about 14% of entrepreneurs and own a significant share of micro, small, and medium enterprises (MSMEs). They contribute notably to industrial output and employ a substantial portion of the workforce, according to the 2023 State of India’s livelihoods report.
