MUMBAI (India CSR): DBS Bank India, in collaboration with Haqdarshak, has unveiled a comprehensive report on the aspirations, challenges, and financial behaviours of women entrepreneurs in rural India. This report, launched ahead of International Women’s Day 2025, builds upon DBS Bank India’s ‘Women and Finance’ (WAF) study launched in 2024, which comprises three reports, each capturing unique insights from women across different segments and their attitudes towards finance.
Insights from Previous Reports
The first two reports provided insights into women in urban India, focusing on their savings and investment behaviours, career preferences, and the challenges they face in the workforce. The third report centred on women entrepreneurs in Indian metros, identifying key areas where they seek support and opportunities for business enablement.
Survey Methodology
The current study, conducted by Haqdarshak, surveyed 411 women entrepreneurs across rural districts in Madhya Pradesh, Maharashtra, and Rajasthan, with 402 being members of Self-Help Groups (SHGs). This was supplemented by qualitative insights from five focus group discussions (FGDs), offering a nuanced understanding of their experiences.
Financial Decision-Making Dynamics
The survey reveals a shift towards greater financial autonomy among rural women entrepreneurs. 18% of respondents make financial decisions independently, while 47% make financial decisions jointly with their husbands. 24% stated that their husbands make all financial decisions, and the remaining 11% consult their immediate or extended family members. This distribution highlights both progress and persistent traditional norms.
Prudent Savings Habits
A notable 90% of respondents save a portion of their income. Out of these, 57% save less than 20% of their monthly income, while 33% save between 20% and 50%. 5% save more than 50% of their income, while the remaining respondents are unsure about the portion of their income saved, suggesting a need for improved financial literacy and planning. Among savers, 56% opt for bank deposits, 39% participate in SHG savings programmes, and 18% set aside cash without investing it in any instruments. Fixed Deposits (FDs) and Recurring Deposits (RDs), as well as investments in gold, are less common, with only 11% and 5% opting for these methods, respectively. Approximately 64% reinvest their business profits into their enterprises, reflecting a strong orientation towards business expansion and growth.
Banking Preferences
The rural women entrepreneurs surveyed exhibit a strong preference for traditional banking methods. A majority — 89% — favour in-person banking, underscoring their reliance on conventional channels despite the increasing availability of digital services. Despite 99% of respondents a having bank account, only 38% utilise digital banking services for their businesses. Among these digital users, 70% rely solely on UPI for business transactions, 20% combine UPI with mobile or internet banking, and 10% use only mobile banking, internet banking, or other digital services. This highlights a significant opportunity to enhance digital financial literacy and infrastructure, enabling rural entrepreneurs to fully harness the benefits of digital banking.
Access to Credit
According to the survey, 36% of rural women entrepreneurs started their businesses using personal savings, while 25% relied on loans. Additionally, 29% combined their savings with loans or borrowed from family and friends, employing both formal and informal financial sources. Notably, for 9% of these women, family and friends served as the primary funding source, highlighting the role of social networks in supporting small businesses.
Nearly 80% secured funding through a combination of SHGs and/or other lending channels, while 43% relied solely on loans from SHGs.15% of the respondents stated that they had accessed government credit schemes. These findings present an opportunity to enhance outreach and strengthen awareness and accessibility of these schemes among rural women entrepreneurs.
Growth Aspirations
To expand their businesses, rural entrepreneurs seek support from industry and government (72%), assistance with digitisation (39%), business mentorship (35%), and networking opportunities (32%). Focus groups revealed a strong commitment to community development among respondents, who aspired to create jobs for other women in their villages.
Industry Leaders’ Perspectives
Azmat Habibulla, Managing Director and Head of Group Strategic Marketing & Communications at DBS Bank India, said, “A 2024 World Bank estimate indicates that 22 to 27 million individuals are employed by women-owned businesses in rural India, underscoring their significant contribution to local economies. Understanding the unique challenges these entrepreneurs face—and identifying the support they need to overcome them—is essential. Our latest report in the ‘Women and Finance’ series offers valuable insights to inform programmes aimed at accelerating women’s entrepreneurship and addressing growth barriers. We are proud to launch this report in collaboration with Haqdarshak, a purpose-driven organisation enhancing access to government social security schemes and inclusive financial services for this segment.”
Aniket Doegar, Co-Founder and CEO of Haqdarshak, said, “At Haqdarshak, we collaborate closely with rural women entrepreneurs, understanding the challenges they face — not only in accessing financial services and schemes but also in enhancing their financial literacy, skills, and confidence. Recognising these barriers, we partnered with DBS Bank India to conduct a focused study on this segment as part of the ‘Women and Finance’ series. Our aim is to drive meaningful dialogue and build actionable solutions that bridge knowledge gaps, ensuring these women have improved access to social protection and financial services, ultimately fostering a more equitable economy.”
Ongoing Commitment to Financial Inclusion
Over the years, Haqdarshak has engaged with and received support from the DBS Foundation (DBSF), including the 2018 DBSF Business for Impact Grant and the 2020 DBSF Business Transformation Improvement Grant. In 2023, Haqdarshak became a DBSF programme partner in India to promote digital and financial literacy among citizens from vulnerable communities, impacting over 206,400 beneficiaries nationwide to date.
In February 2025, the DBS Foundation partnered with Haqdarshak for a new programme aimed at advancing financial inclusion, focusing on rural India. With SGD 5.1 million in funding, the programme aims to improve financial resilience and social security for 500,000 beneficiaries, including 50,000 nano entrepreneurs in India.
(India CSR)
