Financial Fragility: The Plight of Women-Led Micro Businesses in India

A report by MicroSave Consulting and Sa-Dhan reveals that a significant number of women-owned micro businesses in India are financially vulnerable. These businesses lack emergency savings and proper financial management practices, impacting their stability. The study highlights the challenges faced in distinguishing personal from business finances.

A study has revealed that women-owned micro businesses in India are financially vulnerable, lacking savings for emergencies, making them susceptible to economic shocks. The report, 'Decoding the Financial Health of Women-Owned Micro-Businesses in India', prepared by MicroSave Consulting and Sa-Dhan, finds that 45% of these entrepreneurs have no emergency savings.

Additionally, the study highlights difficulties faced by women microentrepreneurs in separating personal and business finances, complicating cash flow management. Approximately 60% do not maintain written records, with some citing complexity or small profit margins as reasons, ultimately affecting their business performance assessment.

These micro businesses, operating mainly as solo ventures, significantly depend on family support, showcasing a need for targeted interventions to improve financial literacy and independence, contributing more effectively to the economy.

(With inputs from agencies.)