45 per cent of woman entrepreneurs lack financial emergencies savings: Report 

A significant number of woman-owned micro businesses in India lack savings for financial emergencies, making them highly vulnerable to economic shocks, said a report.

The report titled ‘Decoding the Financial Health of Woman-Owned Micro-Businesses (wMB) in India’ was prepared by MicroSave Consulting (MSC) in collaboration with Sa-Dhan and supported by JPMorgan Chase.

The research covers six regions — Delhi-NCR, Gujarat, Maharashtra, Telangana, Karnataka, and Tamil Nadu — providing data-driven insights and calls for targeted interventions.

Data was collected through 1,460 computer-assisted personal interviews, key informant interviews with financial institutions and enterprise support organisations, and comprehensive desk research.

Interviews with 150 woman-owned micro businesses across the six regions revealed insights into their financial decision-making processes, challenges and motivations.

The report indicated that 45 per cent of woman entrepreneurs lack savings for financial emergencies, making them highly susceptible to economic shocks.

Additionally, many face challenges in distinguishing between personal and business finances, which complicates cash flow management and hinders the maintenance of accurate financial records.

It further said 60 per cent of respondents did not maintain any written records for their operations.

Among these, 55 per cent believe separate records are unnecessary due to small profit margins or scale, while others find maintaining records too complex. As a result, they struggle to track business performance and assess financial health.

About 55 per cent of these businesses do not employ any staff and operate as solo ventures, which limits their contribution to job creation and the broader economy.

Autonomy is another significant issue for woman micro-entrepreneurs, with approximately 44.3 per cent relying on their spouses or other family members for business support, highlighting a considerable dependence on external assistance, it said.

The report defined women-owned microbusinesses as those with annual revenues between Rs 1.50 lakh and Rs 9 lakh, employing three individuals.