Entrepreneurial Success Drivers in Women-Owned MSMEs: Empirical Evidence from an Emerging Economy

Abstract

Purpose: This paper is an empirical enquiry into the internal and external factors that impact on business success of women entrepreneurs in MSME sector in North India. Even with supportive policy interventions, women-owned businesses are struggling to scale and sustain due to several challenges. The purpose is to find out the determinants that are important for entrepreneurial success and generate a model applicable in emerging economies. Design/methodology/approach: Using a quantitative design, primary data were collected from 384 women entrepreneurs through structured questionnaires. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed using SmartPLS 4 to validate the proposed model and test hypothesized relationships among internal factors, external factors, and business success.Findings: The results confirm that both internal (e.g., family support, prior experience, work-life balance, and mentorship) and external factors (e.g., access to finance, ICT usage, marketing strategies, and supportive government policies) significantly contribute to entrepreneurial success. The R² value of 0.719 and significant path coefficients indicate high explanatory power.Limitations/implications: The cross-sectional nature and sampling from only North India may inhibit generalisability. Longitudinal investigations in different socio-cultural settings are suggested. Policy implications: The study provides policy makers, financial institutions and entrepreneurship development agencies the insights to design specific interventions that could improve women entrepreneurs’ access to finance, digital inclusion and mentorship. Social implications: It contributes to reduced gender disparity, financial inclusion and women empowerment when there is a better understanding of the obstacles facing for women entrepreneurs. Empowering women in the MSME sector can help to reverse the gender gap in business and improve economic development in developing countries. Originality/value: This research provides the first empirically validated model that includes a combination of internal and external success factors, providing subtle insights into women entrepreneurship in developing countries.