90% of rural women entrepreneurs save, 56% opt for bank deposits: survey

At least 90% of rural women entrepreneurs save a portion of their monthly income. Of these, 33% save between 20% and 50% of their income, according to a recent survey by  DBS Bank India, in collaboration with Haqdarshak.

 

Notably, 57% save less than 20%, while 5% manage to save more than 50%. 

 

The survey, conducted across rural districts in Madhya Pradesh, Maharashtra, and Rajasthan, included 411 women entrepreneurs, with 402 members of Self-Help Groups (SHGs). The research aimed to capture the unique financial needs and behaviors of this demographic, offering critical insights into how rural women manage their finances and approach entrepreneurship.

 

Among savers, 56% opt for bank deposits, 39% participate in SHG savings programmes, and 18% set aside cash without investing it in any instruments. Fixed Deposits (FDs) and Recurring Deposits (RDs), as well as investments in gold, are less common, with only 11% and 5% opting for these methods, respectively. Approximately 64% reinvest their business profits into their enterprises, reflecting a strong orientation towards business expansion and growth.

 

This demonstrates a strong inclination toward saving, though there remains room for improvement in financial literacy and planning among this group. A significant 56% reinvest their business profits back into their enterprises, noted the survey.

  The survey also revealed regional differences in savings behavior. In Madhya Pradesh, 100% of women entrepreneurs save a portion of their income, followed by 95% in Maharashtra, and 73% in Rajasthan, reflecting varying levels of financial discipline across states.

 

Traditional banking methods remain the preferred choice for most rural women entrepreneurs, with 89% favoring in-person banking services. Despite the rise of digital banking, only 38% utilize digital banking services for their businesses. Among those who do engage with digital tools, 70% rely on UPI for transactions, while only a small fraction use mobile or internet banking.

 

 The survey revealed that 36% of women entrepreneurs in rural India funded their businesses using personal savings, while 25% took out loans. 

 

Notably, 29% combined personal savings with loans from family, friends, or financial institutions. 

 

Around 80% accessed funding through SHGs and other lending channels, with 43% relying solely on self help group ( SHG) loans. 

 

About 15% had benefited from government credit schemes, underscoring the importance of further strengthening access to such schemes for rural entrepreneurs.

 

To expand their businesses, rural entrepreneurs seek support from industry and government (72%), assistance with digitisation (39%), business mentorship (35%), and networking opportunities (32%). Focus groups revealed a strong commitment to community development among respondents, who aspired to create jobs for other women in their villages.

 

"Women-owned businesses in rural India employ millions, and understanding the unique challenges they face is essential to driving inclusive economic growth. Our partnership with Haqdarshak aims to provide valuable insights into the financial behaviors of rural women entrepreneurs, helping shape programs that empower them to grow their businesses and enhance their financial resilience," said Azmat Habibulla, Managing Director and Head of Group Strategic Marketing & Communications at DBS Bank India. 

Key findings include:

• 90% of rural women entrepreneurs save a portion of their income, with 33% saving between 20-50%

• Increasing financial autonomy, with 18% making independent financial decisions and 47% deciding jointly with their spouses

• Limited digital banking adoption, as 89% prefer in-person banking, despite 99% having a bank account

• Access to credit remains a challenge, with 36% starting businesses through loans and only 15% accessing government credit schemes

• Strong business growth aspirations, with 72% seeking support from industry and government