Over 3 lakh women entrepreneurs exit Gujarat’s MSME sector in three years

More than three lakh women entrepreneurs have reportedly exited Gujarat’s micro, small and medium enterprises (MSME) sector over the past three years, according to data from the Central Government’s Udyam registration portal. The figures show that the number of women-led enterprises in the state fell from 5.21 lakh in 2023–24 to 1.96 lakh in 2025–26, raising concerns about the health of women-owned businesses despite continued policy emphasis on entrepreneurship and “Ease of Doing Business”.

Number of women-led MSMEs falls sharply

Data from the Udyam portal shows that Gujarat had 13.87 lakh MSMEs in 2023–24, of which 5.21 lakh were run by women. By 2025–26, the number of women-led enterprises had dropped to 1.96 lakh.

The decline suggests that around 3.24 lakh women entrepreneurs exited business activities during the three-year period.

The fall comes despite continued government efforts to encourage entrepreneurship and increase women’s participation in business.

Small businesses face financial and operational pressures

Industry observers attribute the decline to several challenges faced by small businesses. These include difficulty in obtaining bank loans, rising compliance costs, increasing tax burdens and higher operating expenses.

Small and micro enterprises are often more vulnerable to such pressures because they have fewer financial and administrative resources than larger companies. As a result, even modest increases in costs can affect their ability to continue operating.

Questions raised about support schemes

The figures have renewed debate over the effectiveness of government programmes aimed at promoting women’s entrepreneurship.

Critics argue that despite repeated public messaging on women’s empowerment and business ownership, many support measures have not translated into meaningful assistance for entrepreneurs. They contend that several schemes remain more visible in official announcements and publicity campaigns than in practical support for small business owners.

Debate over policy priorities

The decline has also revived criticism that government policies favour large corporate groups over small businesses.

Opponents argue that major industrial houses receive incentives such as subsidised land, tax concessions, utility benefits and financial assistance, while smaller enterprises continue to face bureaucratic hurdles and limited institutional support.

The issue is significant because MSMEs are a major source of employment in Gujarat. Critics say that while large investment summits and industrial promotion events receive considerable attention and public spending, the MSME sector continues to face economic pressures.

The latest figures are likely to intensify discussions about the challenges facing Gujarat’s small-business sector and whether existing policies are providing adequate support to women entrepreneurs.