About 58% of unincorporated businesses in the manufacturing sector were owned by women in 2023-24, a four-percentage point rise from the previous year, a survey showed.

The results of the Annual Survey of Unincorporated Sector Enterprises showed that every one out of four proprietary establishments at the all-India level was run by a woman. The data also showed that 28.1% of total workers during the year were female. This includes significant presence of women among OAEs (own account enterprises). Women comprise more than one third of the total workforce for OAEs – enterprises that are run solely by the owners and do not employ hired workers.

States with the highest share of female workers were West Bengal (12.7%), followed by Uttar Pradesh (10.4%) and Maharashtra (9.7%). Notably, West Bengal and Maharashtra have employed the most women in both rural and urban sectors.

The unincorporated non-farm establishments are businesses that are not registered either under the Companies Act 1956 or under the 2013 Act. However, they play a crucial role in financial and economic inclusion due to their ability to absorb a large section of the unskilled workforce in gainful employment. Through such establishments, people with varying levels of education and skills contribute to the country’s GDP, making these establishments indispensable to the overall economy.

Since these small businesses employ such a large section of the Indian population and play a crucial role in facilitating women’s entry into the labour market, their contribution cannot be overlooked. At the same time, supportive policies that enable such establishments to scale, hire workers and enhance productivity are essential. Proprietors at these units must be supported in market linkage, trained in digital marketing, given access to working capital and skilled labour as well as affordable and quality raw material so that they can significantly contribute to India’s growth story.