Growing fast but earning less: Women in India’s informal microenterprises
This year marks the 10th annual observance of Micro, Small, and Medium Enterprises (MSME) Day (June 27)—intended to raise awareness and recognize the role of MSMEs toward the achievement of sustainable development goals.
- gender
- Markets
- India
By Adnaan Shah, Vandana Vidhani, Devesh Roy, and Mamata PradhanJune 27, 2026
Key takeaways
- Women’s microenterprises are growing fast but underperform, an analysis of survey data shows. They expand rapidly yet earn less, with lower productivity and income than men’s businesses.
- Food microenterprises show stronger, productivity-led growth. They offer better earnings potential and opportunities, especially for women.
- Better-targeted policies can unlock women’s potential. Support must address constraints like limited control over resources, mobility, and household responsibilities.
This year marks the 10th annual observance of Micro, Small, and Medium Enterprises (MSME) Day (June 27)—intended to raise awareness and recognize the role of MSMEs toward the achievement of sustainable development goals. MSMEs are the backbone of low- and middle-income countries, driving employment, income, and growth. As of 2025, MSMEs accounted for ~70% of employment and 50% of share in GDP globally.
In India—the world’s most populous country with the largest number of poor—microenterprises hold a unique position in terms of their economic importance, providing a key source of employment and, with policy interventions, a path out of poverty.
India’s microenterprises have been growing in recent years, particularly in the food sector, according to our analysis of the government’s Annual Survey of Unincorporated Sector Enterprises (ASUSE). While women face continuing obstacles in business due to economic and cultural constraints, food microenterprises appear to offer a promising avenue for expanding their employment and income in India’s transitioning food system.
This post—based on a quantitative analysis of the 2021-22, 2022-23, and 2023-24 rounds of ASUSE and supplemented by international evidence—explores the differences in growth patterns in microenterprises, barriers to inclusive and sustainable growth, and how institutional support may help in building resilience for women-owned enterprises.