Women-led SMEs drive digital adoption beyond big cities, study shows

By Puja Sharma

Around 96% of women entrepreneurs adopting digital business tools are from ‘Bharat’, says Tide data

• Lucknow, Bareilly, Chhindwara, Latur and Hathras – often termed the ‘Bharat’ of India
• 282% surge in the number of women members on the platform in the last one year
• Top business categories run by women – general stores, beauty salons, tailoring
• Gen Z and Millennials make 78% of members on the platform

According to a report by Tide, the business financial platform for SMEs in India, women members have adopted digital business tools by 282% over the past year. Tide has more than 86,226 women members on its platform (sharply up from 22,584 one year ago, in February 2024), of which 96% are from Tier 2, 3, 4 and beyond towns (termed ‘Bharat’). These cities and towns are emerging as centres of growth for SMEs in India.

Women across India—especially from Tier 2 and 3 cities are launching businesses that both fuel their ambition and make a significant contribution to India’s GDP. About 22 million small businesses in India are owned by women, making up around 20% of such businesses in the country. Digital tools are helping more owners, especially in smaller towns, grow their ventures, according to data from over 600,000 small businesses on the financial platform Tide.

Tide’s data show that 30% of women entrepreneurs are from the smaller towns in Uttar Pradesh and Maharashtra, representing 16% and 14% respectively. This is followed by 11% from West Bengal, around 9% from Madhya Pradesh and Bihar each, and 5% from Odisha.

General stores, beauty salons, and tailoring businesses lead the way—together making up 31% of all digital enterprises on the platform.

Rise of women solopreneurs

The rise of women solopreneurs is remarkable. Women digital marketiers, actors, teachers, bookstore owners, agricultural tool vendors, grocery store owners, and financial consultants, make up over 61% of these ten key sectors.

Gurjodhpal Singh, CEO, Tide in India, said, “For decades, the entrepreneurship story in India was always about metros and family-run businesses. We are now witnessing a powerful shift in the entrepreneurial landscape of India, driven by ambition, digital access, and a growing support ecosystem. Many of these women are first-generation business owners who are breaking away from traditional legacies, proving that innovation and enterprise are no longer confined to big cities.

Gurjodh added: “These women are not just using digital tools – they are mastering them to build successful businesses, create jobs, and transform their communities. It’s inspiring to see that 96% of Tide’s women members are from smaller cities.”

Huge changes in culture, technology, and society are leading more young entrepreneurs to use digital business tools. Gen Z (19-25 years) and millennials (26-40 years) make up 78% of the women on the platform.

Tide’s data shows women entrepreneurs from Gen X and Baby Boomers are embracing digital tools, making up to 22% of adopters. A befitting example is, a 89-year-old entrepreneur (bookstore owner) who stands out as a testament to how digital adoption is transcending generations.

The rising number of women entrepreneurs in India highlights a significant shift in societal norms and the expanding opportunities for women in the financial ecosystem.