82% of Rural Women Entrepreneurs Still Rely on Traditional Offline Sales: Report According to the report, overall 79.5 per cent of women own smartphones for various purposes, and only a half of them have used these devices for business.
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The Nasscom Foundation, in collaboration with LEAD at Krea University, recently unveiled a report, "Digital Dividends: Understanding the Use of Social Commerce by Women Entrepreneurs in Rural India". The study sheds light on the transformative potential of digital tools and social commerce for rural women entrepreneurs, delving into both the challenges they face and the opportunities that await. The report highlights the catalytic role of social commerce in boosting businesses in sectors like agriculture, handlooms, handicrafts, manufacturing, processing, and retailing.
The study surveyed 792 women entrepreneurs, aged between 15 and 60, representing a diverse demographic, providing rich insights into their socioeconomic conditions, digital access, and business practices. The analysis reveals that the majority of rural women entrepreneurs operate sole proprietorships, with 91.8 per cent managing their businesses independently. Their ventures span across agriculture (35 per cent), handlooms (34 per cent), and retail (31 per cent), showcasing their vital role in sustaining local economies. Despite their entrepreneurial spirit, 57.7 per cent lack formal vocational training, signalling an urgent need for skill development programs.
Technology spread thin
Technology, particularly social commerce, is reshaping the business landscape for these women. According to the report, overall 79.5 per cent of women own smartphones for various purposes, and only a half of them have used these devices for business. However, full digital integration remains elusive. As much as 82.3 per cent of women continue to rely on traditional offline sales, largely due to barriers like limited digital literacy (23 per cent) and inconsistent network availability (23.6 per cent). Privacy concerns and a lack of familiarity with advanced digital tools further impede progress.
Rostow Ravanan, chairperson of the Nasscom Foundation, underscored the importance of overcoming these hurdles, stating, "Empowering rural women entrepreneurs has a profound ripple effect, fueling employment opportunities and building sustainable, self-reliant communities. Despite strong agency, many women face barriers to full digital integration, yet their readiness to embrace technology and social platforms is promising."
Social commerce
Social commerce—a hybrid of social media and e-commerce—has proven to be a gamechanger. As per the report, 71 per cent of women entrepreneurs credit social media for their business growth, while 80 per cent use it for business activities such as showcasing products, marketing, and maintaining customer relationships. Notably, 83.2 per cent leverage these platforms to maintain customer relations, reflecting the power of digital networking.
Sharon Buteau, executive director of LEAD at Krea University, illustrated the potential of social platforms, stating, "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 minimizing the role of intermediaries. These social platforms can be game-changers in enabling women to compete on an equal footing."
Yet, only 17.6 per cent of respondents use digital tools for customer and order management, signalling untapped opportunities for broader adoption of technology to improve operational efficiency.
Bridging the digital divide
The report underscores the need for targeted interventions to bridge the digital divide, with 24.5 per cent of respondents identifying training as a critical factor, investments in digital literacy and upskilling programs are imperative. Only 34.5 per cent of women entrepreneurs are aware of government schemes for digital integration.
The potential of digital tools to transform rural enterprises is undeniable. Empowering rural women entrepreneurs can fuel sustainable, self-reliant communities. By addressing barriers and scaling access to technology, stakeholders can unlock economic opportunities, promote socio-economic equity, and strengthen local economies.
