Report highlights potential of Digital and Social Commerce for Women Entrepreneurs in Rural India

New Delhi, India: Nasscom foundation in collaboration with LEAD at Krea University, launched a comprehensive report titled “Digital Dividends: Understanding the Use of Social Commerce by Women Entrepreneurs in Rural India”. The study offers a deep dive into the challenges and opportunities for Rural Women Entrepreneurs (RWEs) in embracing digital tools and social commerce, with actionable recommendations to support and scale their enterprises. The report also showcases the transformative impact of technology on rural women-led businesses, particularly across Agriculture & Allied Services, Handlooms & Handicrafts, and Manufacturing, Processing, and Retailing.

This study aims to examine the contemporary factors impacting women entrepreneurs, focusing on how technology—especially social commerce— can impact their business activities. The report is based on a survey of 792 women entrepreneurs (15-60yrs) from 24 districts across India, including 18 aspirational districts, representing a diverse demographic profile. Participants were surveyed to gain insights into their socioeconomic backgrounds, digital readiness, financial access, and social commerce usage.

Commenting on the findings, Rostow Ravanan, Chairperson, nasscom foundation said, “Empowering rural women entrepreneurs has a profound ripple effect, fueling employment opportunities and building sustainable, self-reliant communities. Through this six-month study, we have uncovered pivotal insights into how digital tools and social commerce can elevate these enterprises. Despite strong agency, many women face barriers to full digital integration, yet their readiness to embrace technology and social platforms is promising. In partnership with LEAD at Krea University, this report serves as a blueprint for stakeholders to help bridge the digital divide, ultimately strengthening local economies and advancing socio-economic equity for India’s rural women entrepreneurs.”

Sharon Buteau, Executive Director, LEAD at Krea University said, “Today, a woman operating a crafts business from her home in rural India can showcase products to a vast and diverse clientele, transcending geographical barriers and minimising the role of intermediaries. These social platforms can be game-changers in enabling women to compete on an equal footing and reach consumers far beyond their immediate communities, and tapping into their innate networking abilities. However, we find that technology access is rarely neutral. Understanding these challenges is crucial for crafting strategies that empower and support women entrepreneurs in digital and social commerce. We hope the insights presented in the report will foster a more nuanced and informed dialogue on the role of technology and social platforms, and feed into shaping effective policies and solutions”.

Key Findings from the Report:

Growing Potential of Social Commerce: 44% of respondents expressed satisfaction with social commerce’s impact on their business due to factors like familiarity and simplicity with the social media interface, and avoidance of complexities related to GST.

Furthermore, social media have proven beneficial, with 71% of women finding it instrumental in business growth and over 80% utilizing it for business purposes. Despite this, only 17.6% use digital tools for managing customers and orders, indicating an opportunity for broader digital adoption to enhance operational efficiency.

The report also finds that 83.2% of women entrepreneurs use social media primarily for maintaining customer relations. However, 82.3% still rely heavily on traditional offline sales methods due to factors like limited digital familiarity (23%) and inconsistent network availability (23.6%). Addressing these gaps can enhance social commerce integration and expand market reach.

Sector Representation and Business Profile: Rural women entrepreneurs primarily operate in sectors such as Agriculture (35%), Handlooms (34%), and Retail (31%). The vast majority (91.8%) of these businesses are sole proprietorships, underscoring the independent role women play in their ventures. However, 57.7% have not received formal vocational training, highlighting a need for enhanced skill development initiatives.

Digital literacy and safety concerns: A notable insight shows that smartphones have become highly accessible among women doing businesses, with 79.5% of women owning their own devices and 20.5% accessing them through family members. Moreover, approximately half of the respondents (52%) using smartphones for business purposes have been doing so for at least a year. However, limited internet access, privacy concerns, and low digital literacy hinder full participation in digital commerce. The analysis of women entrepreneurs’ business practices also revealed a notable preference for offline methods over online ones. Specifically, 82.3% favored offline sales and marketing practices, while only 17.7% preferred online platforms.

Role of stakeholders in enhancing digital adoption: Only 34.5% of women entrepreneurs are aware of government schemes for digital integration, presenting a vital opportunity to strengthen communication efforts and connect the remaining 65.5% with valuable resources, enabling greater growth and empowerment.
An analysis of stakeholder involvement shows that “Training” (24.5%) and “Awareness” (22.6%) play leading roles, emphasizing education and information as crucial foundations for empowering women entrepreneurs. “Upskilling” (12.2%) and “Onboarding” (10.5%) also stand out, highlighting the need for continuous learning and effective integration into business networks.

The report underscores the requirement of a collaborative and multifaceted approach. Digital upskilling programs, accessible training centers, improved access to financial resources, and a holistic approach can enhance women entrepreneurial ventures and significantly boost the uptake of social commerce among RWEs, empowering them to expand their businesses and connect with broader markets. However, the findings also highlight that streamlined business registration, improved access to financing, and targeted vocational training—especially in rural areas are essential steps. By building supportive networks, advocating for inclusive policies, and leveraging community engagement, stakeholders can drive meaningful change, fostering economic empowerment and sustainable growth for rural women-led enterprises.

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