women in the Gen Z

A recent report by Tide reveals a notable trend among women in the Gen Z and millennial age groups: a significant portion are turning to entrepreneurship as a means of financial empowerment. Tide, a financial platform catering to small and medium-sized enterprises (SMEs), conducted the study, shedding light on the motivations behind this entrepreneurial surge.

According to the report, a majority of women entrepreneurs from smaller cities and towns across India are leading the charge in embracing digital solutions for their businesses. Drawing insights from data gathered from 200,000 SME members on the Tide platform, the report identifies Maharashtra and West Bengal as the top states where women entrepreneurs, particularly from smaller towns, are adopting digital tools at a rate of 13% each. Following closely behind are Uttar Pradesh with 12%, Bihar with 10%, and Madhya Pradesh and Odisha with 8% each.

This shift towards digital adoption is indicative of the changing landscape of entrepreneurship in India, with Tier 2, 3, 4, and beyond towns emerging as hotspots for SME growth. The report highlights a diverse range of professions among women entrepreneurs, including consultants from medical, legal, and tax sectors, as well as small shop owners, freelance beauticians, fashion designers, makeup artists, tutors, home chefs, and bakers.

Most of these women-led businesses employ between 0 to 9 people, emphasizing the role of micro-enterprises in the economy. Tide recognizes the importance of streamlining business operations and reducing costs for its members, especially for administrative services, to enhance overall business efficiency.

Gurjodhpal Singh, CEO of Tide in India, acknowledges the prevailing stereotype that entrepreneurs in metro cities are more tech-savvy. However, he notes that there is a growing trend among the aspirational class in Tier 2, 3, 4 cities, and beyond, towards digitizing their businesses to save time and costs. Singh lauds women entrepreneurs from smaller towns, referring to them as the true embodiment of ‘Nari Shakti’ (women empowerment).

Gender disparities in the workplace, particularly in terms of pay discrepancies, often drive women towards entrepreneurship. Statistics reveal that salaried women earn about 24% less than men, impacting their aspirations and opportunities for advancement. The flexibility and autonomy offered by entrepreneurship allow women to exert greater control over their time and finances. For instance, while salaried women worked an average of 43 hours per week in 2023, self-employed women spent approximately 30.1 hours at work per week, indicating a desire for work-life balance and financial independence.

_{Repurposed article originally published in Zeebiz}