A recent survey by DBS Bank India, in collaboration with Haqdarshak, has highlighted the financial behaviours, aspirations, and challenges faced by rural women entrepreneurs across India. Conducted ahead of International Women's Day 2025, the study is part of the bank's ongoing 'Women and Finance' (WAF) series, which explores the financial dynamics of women from various segments.
The survey, which included 411 women entrepreneurs from rural districts in Madhya Pradesh, Maharashtra, and Rajasthan, found that 90% of respondents save a portion of their monthly income. Specifically, 33% save between 20% and 50%, with 57% saving less than 20% of their earnings. Interestingly, 5% save more than half their income, while some respondents are unsure of their savings habits.
Prudent savings habits
Among these rural women entrepreneurs, 56% favour bank deposits, 39% participate in Self-Help Group (SHG) savings programmes, and 18% keep cash aside without investing it. In terms of investment methods, Fixed Deposits (FDs) and Recurring Deposits (RDs) are less popular, with only 11% and 5%, respectively, opting for these traditional instruments. Furthermore, 64% of entrepreneurs reinvest their business profits back into their enterprises, showing a strong inclination towards business growth.
Financial decision-making dynamics
The survey also examined decision-making dynamics within households. It found that 18% of rural women entrepreneurs make financial decisions independently, while 47% share decision-making with their husbands. 24% mentioned that their husbands make all financial decisions, and the remaining 11% consult their extended family.
Banking preferences
The majority of respondents, 89%, still prefer in-person banking, despite the availability of digital services. Although 99% of the women surveyed have bank accounts, only 38% use digital banking services for their businesses. Among these users, 70% rely solely on UPI, 20% combine UPI with mobile or internet banking, and 10% use other forms of digital services. This underscores the significant opportunity to boost digital financial literacy and infrastructure in rural areas.
Access to credit
Regarding funding sources, 36% of respondents started their businesses using personal savings, while 25% took loans. Additionally, 29% relied on a combination of savings and loans, with 9% citing family and friends as their main funding source. Nearly 80% of rural women entrepreneurs accessed funds through SHGs or other lending channels, with 43% relying solely on SHGs.
Growth aspirations
The survey revealed that rural women entrepreneurs aspire to expand their businesses by seeking support from industry and government (72%), digitalisation assistance (39%), mentorship (35%), and networking opportunities (32%). In focus group discussions, participants expressed a strong desire to create jobs for other women in their villages.
Azmat Habibulla, Managing Director and Head of Group Strategic Marketing & Communications at DBS Bank India, commented, "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."
Aniket Doegar, Co-Founder and CEO of Haqdarshak, added, "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."
Over the years, Haqdarshak has received support from the DBS Foundation, including grants for business impact and transformation. In 2023, the DBS Foundation partnered with Haqdarshak for a new programme aimed at advancing financial inclusion in rural India, with SGD 5.1 million in funding. This programme seeks to improve financial resilience and social security for 500,000 beneficiaries, including 50,000 nano entrepreneurs across the country.
