Women-led MSMEs a strong pillar of India's business recovery: Study

Women-led MSMEs are key to India's business recovery, a NeoGrowth study finds. 87% expect growth in 2026, and 80% report better recent performance. Confidence is high, with a focus on structured expansion, people, and financial planning.

Women-led micro, small and medium enterprises (MSMEs) are emerging as a strong pillar of India's small business recovery, with 87% expecting business growth in 2026, according to NeoGrowth's MSME Business Confidence Study 2026.

Confidence and Structured Growth Among Women Entrepreneurs

The study shows that 80% of women entrepreneurs reported an improvement in business performance in recent months, driven by festive demand, better payment flows, and improving operating conditions. Confidence among women-led MSMEs is not just higher, but also more structured, with a sharper focus on people planning, financial preparedness, and sustainable scale.

Notably, 58% of women-led MSMEs plan to take a business loan in 2026, signalling expansion-led intent rather than distress borrowing. Their growth priorities extend beyond opening new outlets to include hiring and training staff, improving store aesthetics, and strengthening financial planning, pointing to a maturing approach to entrepreneurship.

Looking ahead to Budget 2026, women entrepreneurs echo broader MSME expectations but with added emphasis on timely access to capital, simpler compliance, and digital capacity building. These enablers, the study notes, are critical to sustaining momentum as women-led businesses transition from recovery to long-term growth.

It further said that women-led MSMEs are placing greater emphasis on people, financial planning and customer experience, rather than rapid, scale-at-any-cost expansion.

Small Businesses Signal Renewed Confidence in Physical Retail

The NeoGrowth study highlighted that the India's small businesses are signalling a renewed vote of confidence in brick-and-mortar retail, with 72% of MSMEs planning to expand their physical footprint or open new outlets in 2026. The finding challenges the notion that growth for small businesses is increasingly digital-only. Instead, MSMEs are doubling down on physical presence to capture local demand, improve customer experience, and build brand visibility, particularly after a strong festive season revival.

The study shows that 8 in 10 MSMEs reported improved business performance in recent months, supported by festive demand, GST 2.0-led pricing efficiencies, and stronger payment flows. This recovery has translated into concrete expansion plans, with entrepreneurs viewing new outlets as a sustainable growth lever rather than a high-risk bet.

Adopting a Hybrid Approach

While physical expansion tops the priority list, MSMEs are also adopting a hybrid approach. 30% plan to add new products or brands, and a growing number are exploring online sales and digital platforms as complementary channels to support scale and resilience, the report said. (ANI)

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