Most Rural Women Entrepreneurs In India Focus On Saving A Portion Of Income: Survey

Around 90 per cent of women entrepreneurs from rural India prefer saving a portion of their income, as per a survey conducted by DBS Bank India and Haqdarshak

Outlook Money

Updated on: 7 March 2025 4:53 pm

DBS’s Women and Finance series, surveyed 411 women across rural Madhya Pradesh, Maharashtra, and Rajasthan, supported by focus group discussions.

Around 90 per cent of rural women entrepreneurs in India focus on saving a portion of their income as per a joint survey conducted by DBS Bank India and Haqdarshak. The survey, part of DBS’s Women and Finance series, surveyed 411 women across rural Madhya Pradesh, Maharashtra, and Rajasthan, supported by focus group discussions.

Azmat Habibulla, MD, DBS Bank India, said in an official statement, “A 2024 World Bank estimate shows 22-27 million employed by rural women-led businesses. Addressing their challenges is key to economic growth. This report informs inclusive solutions.”

Financial Autonomy and Savings Trends

While 18 per cent of women make independent financial decisions, 47 per cent make decisions with spouses, and 24 per cent depend entirely on their husbands.

Meanwhile, savings remain a priority, 90 per cent set aside income, with 57 per cent saving less than 20 per cent monthly.

Additionally, around 56 per cent of the participants preferred methods included bank deposits, 39 per cent chose Self-Help Group (SHG) programs, and 18 per cent chose cash savings. Only 11 per cent use fixed deposits or gold.

Notably, 64 per cent of the participants reinvested profits into businesses, signalling growth ambitions.

Banking Habits and Digital Divide

Despite 99 per cent of respondents owning bank accounts, 89 per cent prefer in-person visits. Just 38 per cent use digital services, with 70 per cent relying solely on UPI. Barriers include low confidence and literacy. “Smartphones aid business management, but guidance is critical,” the report noted.

Credit Access and Aspirations

When enquired about their behavioural pattern, 36 per cent of women entrepreneurs started ventures with personal savings. While 25 per cent used loans. SHGs played a key role as 80 per cent of the respondents understood their credit through it. However, 15 per cent utilised government schemes, elucidating the gaps in awareness. Around 39 per cent of women entrepreneurs expressed the need for support in digitisation, 35 per cent felt that they needed mentorship, and 32 per cent were more focused on networking.