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VOL. 12, ISSUE 4 (2026)
Digitalisation and women’s entrepreneurial participation in India: A state-level empirical analysis
Authors
Dr. Manju Bala
Abstract
Digital technologies are increasingly regarded as an enabler of entrepreneurship because they can reduce information, transaction and market-access constraints. For women entrepreneurs, however, digital access may not automatically translate into greater entrepreneurial participation because technology adoption interacts with income, labour-market participation, skills and institutional conditions. This study examines whether greater digitalisation is associated with women's entrepreneurial participation across Indian states. A data-availability assessment was first undertaken using official sources. Because a fully comparable state-level panel could not be constructed without combining differently defined administrative series, the empirical analysis uses a cross-section of 28 Indian states. Women's entrepreneurship is measured primarily by the percentage of women-owned MSMEs among MSMEs registered through Udyam Registration/Udyam Assist during July 2020–November 2024. Digitalisation is measured by internet subscribers per 100 population at December 2023. Female labour-force participation and lagged per-capita state income are included as socioeconomic controls. Descriptive statistics, correlation analysis and heteroskedasticity-robust OLS regression are employed. The results show substantial interstate variation in both digital connectivity and women's entrepreneurial participation. Contrary to the expected positive relationship, internet penetration is not positively associated with the share of women-owned MSMEs after controlling for female labour-force participation and income. A robustness specification using the logarithm of new women-led MSME registrations also fails to establish a positive effect. The findings suggest that digital infrastructure alone may be insufficient to increase women's entrepreneurship and that digital capability, finance, market access and institutional support require simultaneous attention.
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Pages:134-138
How to cite this article:
Dr. Manju Bala "Digitalisation and women’s entrepreneurial participation in India: A state-level empirical analysis". International Journal of Commerce and Management Research, Vol 12, Issue 4, 2026, Pages 134-138
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