Socio-economic determinants and policy measures for strengthening women entrepreneurship in Bihar’s MSME sector

Abstract

Women's entrepreneurship in India, particularly in the state of Bihar, has emerged as a crucial instrument for inclusive growth, rural industrialization, and gender equity. The Micro, Small, and Medium Enterprises (MSME) sector in Bihar contributes significantly to employment generation and regional development, yet women entrepreneurs constitute only a marginal proportion of total enterprise ownership. This study investigates the socio-economic determinants, such as education, access to finance, skill development, and socio-cultural factors, that shape women’s entrepreneurial participation in Bihar’s MSME sector. It further analyzes existing policy measures at both the central and state levels, including Stand-Up India, Mudra Yojana, and Bihar’s Industrial Investment Promotion Policy, to evaluate their effectiveness in supporting women entrepreneurs. Using secondary data from NSSO, MSME Annual Reports, and the Bihar Economic Survey 2023, along with field-based case insights, the study identifies gaps in current strategies and recommends a comprehensive framework for enhancing women’s participation in MSMEs. Findings highlight that although government schemes have expanded credit and skill training opportunities, barriers such as patriarchal norms, inadequate infrastructure, and limited market linkages still constrain women entrepreneurs in Bihar.