Key Points
90% of rural women entrepreneurs save monthly income
57% save less than 20% of earnings
64% reinvest profits back into businesses
The report by DBS Bank India, in collaboration with Haqdarshak, is based on a survey of 411 women entrepreneurs across rural districts in Madhya Pradesh, Maharashtra, and Rajasthan, with 402 being members of Self-Help Groups (SHGs).
Of the 90 per cent, 57 per cent save less than 20 per cent of their monthly income, while 33 per cent save between 20 per cent and 50 per cent, said the report. About 5 per cent save more than 50 per cent of their income, while the remaining respondents are unsure about the portion of their income saved, suggesting a need for improved financial literacy and planning.
The report noted that 56 per cent of rural women entrepreneurs opt for bank deposits, 39 per cent participate in SHG savings programmes, and 18 per cent set aside cash without investing it in any instruments.
Fixed Deposits (FDs) and Recurring Deposits (RDs), as well as investments in gold, were found to be less common, with only 11 per cent and 5 per cent opting for these methods, respectively. Approximately 64 per cent reinvested their business profits into their enterprises, reflecting a strong orientation towards business expansion and growth.
"Our report offers valuable insights to inform programmes aimed at accelerating women's entrepreneurship and addressing growth barriers," said Azmat Habibulla, Managing Director and Head of Group Strategic Marketing and Communications at DBS Bank India.
“We aim to drive meaningful dialogue and build actionable solutions that bridge knowledge gaps, ensuring these women have improved access to social protection and financial services, ultimately fostering a more equitable economy," added Aniket Doegar, Co-Founder and CEO of Haqdarshak.
Noting a shift towards greater financial autonomy, the report stated that 18 per cent of rural women entrepreneurs make financial decisions independently, while 47 per cent make financial decisions jointly with their husbands.
About 24 per cent stated that their husbands make all financial decisions, and the remaining 11 per cent consult their immediate or extended family members. This distribution highlights both progress and persistent traditional norms.
