Rural women entrepreneurs in India face a unique set of challenges that are both structural and socio-cultural. Here's a breakdown of the key barriers they commonly encounter:

1. Limited Access to Finance

Collateral requirements often disqualify women from formal loans.

Low financial literacy restricts knowledge of schemes like MUDRA or Stand-Up India.

Informal borrowing leads to high-interest debts.

2. Lack of Infrastructure

Poor transport, power supply, and internet access can limit scalability.

Inadequate storage and cold chain facilities affect agri-based businesses.

3. Skill Gaps and Education

Lower levels of education and business training among rural women.

Limited access to vocational training or entrepreneurship development programs.

4. Social and Cultural Barriers

Patriarchal norms restrict autonomy and decision-making power.

Entrepreneurship is often seen as a “male” domain in rural settings.

Women are expected to prioritize family duties over business.

5. Time Poverty

Women carry the double burden of unpaid care work and business tasks.

Lack of support systems like childcare hampers productivity.

6. Market Access Issues

Limited knowledge of market trends, pricing, and demand.

Difficulty in reaching urban or digital markets.

Reliance on middlemen reduces profit margins.

7. Digital Divide

Limited ownership or use of smartphones and digital tools.

Lack of training in e-commerce, digital payments, or social media marketing.

8. Bureaucratic and Regulatory Hurdles

Cumbersome processes for registration, taxation, and compliance.

Lack of awareness about government schemes or difficulty in accessing them.

9. Lack of Networking Opportunities

Fewer chances to connect with mentors, incubators, and peer groups.

Absence of supportive ecosystems in rural areas.

What’s Helping (Opportunities & Solutions)

SHGs (Self Help Groups) & NGOs often provide microcredit and capacity-building.

Government initiatives like Mahila E-Haat, Skill India, and Digital India offer platforms and skills.

Growth of social enterprises targeting rural women (e.g., SEWA, Kudumbashree).

Expansion of internet penetration and mobile connectivity.

In my opinion women should focus on cottage industry that thye can manage form home and neighborhood and also take care of children and home.That is very important.

Like Dairy and animal husbandry

home woven textiles and woollens

handicrafts

spices

pickles

stitiching clothes

agriculture like mushrooms, floriculture , herbs

• The Women in informal settlements face several challenges while doing business. These include limited access to capital, insecure property rights, poor infrastructure, and safety concerns. They also deal with gender discrimination, legal barriers, lack of education or training, and the burden of household responsibilities. These factors make it difficult for them to start, sustain, or grow their businesses. but if women face all these challenges, then her life is very good level standard several

Women in informal settlements face many problems like lack of Money, insecurity, limited access in different Network, limited access in technology etc. many people think that women are not devoted about their work and their companies because they have to give time their children. So they do not find any interest to help them and invest on the company. Moreover, they also think they have limited knowledge about finance, rules regulations and technology. They can not continue their business. That's why they get limited help.

Women in informal settlements face a complex web of challenges when trying to do business, shaped by the intersection of gender, poverty, and marginalization. These settlements often lack essential infrastructure such as reliable electricity, water, sanitation, and secure shelter—conditions that create daily operational hurdles for women entrepreneurs. For example, the absence of proper storage facilities or safe workspaces can limit the types of businesses women can engage in, particularly those that involve perishables or require tools and machinery.

Security is a constant concern. Informal settlements are often associated with higher rates of crime and violence, and women in business are especially vulnerable to harassment, theft, and even gender-based violence. This threat restricts their mobility, especially after dark, and can discourage participation in markets or networking events that occur outside of the immediate community. The informal nature of their businesses—usually unregistered and without legal protection—means they often have no recourse when they are exploited, underpaid, or displaced.

Access to capital is another major barrier. Traditional financial institutions typically require collateral, formal addresses, or credit histories—all of which are hard to come by in informal settlements. As a result, women often rely on microfinance, rotating savings groups, or informal lenders, which may come with high interest rates and limited flexibility. These financial constraints can make it difficult to scale up or even sustain a small enterprise over time.

Social norms and domestic responsibilities further complicate matters. In many cases, women are expected to prioritize household duties over income-generating activities. Their work is frequently undervalued or seen as supplementary, leading to less support from family or community members. The blending of home and business spaces, common in informal settlements, can blur the boundaries between personal and professional time, leading to burnout and inconsistent productivity.

Additionally, limited access to education and business training hampers the ability of many women to grow their ventures. Even when support programs exist, they may not be designed with the specific needs of women in informal settlements in mind. Language barriers, timing conflicts with caregiving duties, and a lack of childcare can all prevent women from taking advantage of opportunities intended to help them succeed.

Despite these challenges, many women show remarkable resilience and innovation, often creating support networks within their communities to share resources and knowledge. However, without structural changes—such as improved infrastructure, gender-sensitive policies, legal protections, and access to affordable finance—their potential remains unfairly constrained, and their struggles largely invisible in broader economic narratives.

En el contexto peruano los desafios que enfrentan las mujeres al hacer negocios se concentran basicamente en la desigualdad de genero muy presente aun sobre todo en entornos informales y rurales, a ello se suma la alta informalidad del pais y la falta de formacion empresarial y capacitacion, se observa tambien ausencia y desinteres en formar redes de apoyo.

There are some good resources from the WIEGO library

See Link: https://www.wiego.org/research-library/

Many challenges face women in informal sectors such as; the fact that it is informal has its disadvantages like harassment and regulatory exclusion, capital to start the business, GBV, exposing little children to unfavourable environments of markets as those women will have noone to take care of the children or may opt to ask older kids to look after their young one while the mother is doing business

Rural women entrepreneurs operating in informal settlements face a complex set of challenges that hinder their ability to start, sustain, and grow businesses effectively.

1. Limited Access to Capital:

Women often struggle to secure loans or investment due to lack of collateral, lower financial literacy, and biases in financial institutions. Microfinance options may exist but are often insufficient or come with high interest rates.

2. Inadequate Infrastructure:

Informal settlements typically lack stable electricity, clean water, reliable transportation, and digital connectivity—all of which are crucial for efficient business operations.

3. Legal and Regulatory Barriers:

Many women operate informally without proper business registration due to bureaucratic hurdles, fees, or lack of awareness. This limits access to formal markets, government support programs, and legal protection.

4. Gender-Based Discrimination:

Cultural norms and gender biases can restrict women's autonomy, mobility, and decision-making power, making it harder to network, negotiate, or expand business activities independently.

5. Limited Access to Markets and Networks:

Women entrepreneurs often lack exposure to larger markets or supply chains, relying mostly on hyperlocal demand. Weak professional networks further reduce opportunities for scaling or partnering.

6. Low Levels of Education and Training:

Many rural women have limited formal education or entrepreneurial training, affecting their ability to manage finances, adopt technology, or apply modern business practices.

7. Social and Household Responsibilities:

Women are often burdened with unpaid domestic work and caregiving responsibilities, leaving limited time, energy, and flexibility to focus on entrepreneurial activities.

8. Safety and Security Concerns:

Operating businesses in informal settlements can expose women to crime, harassment, and extortion, especially when traveling to procure goods or sell products.

Conclusion:

Despite these challenges, rural women entrepreneurs display remarkable resilience and innovation. Targeted interventions—such as access to microfinance, mentorship programs, legal literacy training, and community support initiatives—are critical to unlocking their full economic potential and empowering broader community development.