Entrepreneurial challenges and success among women entrepreneurs: a mixed-methods study and framework development

Purpose This study examines the multifaceted entrepreneurial challenges encountered by small-scale women entrepreneurs in India and their subsequent impact on entrepreneurial success. Design/methodology/approach Utilizing a mixed-methods approach, the research integrates a qualitative exploratory phase (Stage 1) based on grounded theory using the Gioia method, involving semi-structured interviews, with a quantitative phase (Stage 2) employing a structured online questionnaire. A total of 61 women entrepreneurs participated across both stages. Findings Qualitative findings revealed seven key entrepreneurial challenge dimensions: market and network, financial, socio-cultural, digital and technological, psychological, skill, and institutional and regulatory barriers. Quantitatively, market and network barriers were identified as the most prevalent challenge. For success, personal fulfillment emerged as most important, whereas personal and financial rewards were least prioritized. The study found a statistically significant moderate negative correlation between market and network barriers and entrepreneurial success, and a stronger negative correlation between psychological barriers and entrepreneurial success. Furthermore, demographic factors such as age, marital status, and business tenure significantly influenced perceptions of challenges and success dimensions. Research limitations/implications Future studies may explore the challenges in rural areas that have limited internet infrastructure and restricted access to other facilitating conditions. In addition, longitudinal study can be conducted to further examine how the relationship between challenges and success factors evolves as the women-led enterprises mature with time. Further, the ECF developed in the study can be used for conducting comparative study among different nations to account for differences in culture, values, and belief systems. Additionally, researchers may also explore the objective measures of entrepreneurial success and how they are associated with several dimensions of entrepreneurial challenges. Practical implications Policymakers must integrate provisions such as psychological counselling, mentoring, digital acumen training, and personal development for younger women entrepreneurs. Micro-loans should be made available to support married women who lack financial freedom due to socio-cultural barriers. Cluster-based mentoring networks may be established where entrepreneurs are grouped according to their experience; it would help budding entrepreneurs learn from experienced ones. Seasoned entrepreneurs might find business expansion support to be more useful. Local bodies should offer subsidies and schemes to reward impact-oriented enterprises to promote the visibility of sustainable practices in the entrepreneurial ecosystem. Social implications The study's findings directly support “SDG 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all”, which underscores the need to develop relevant technical and vocational skills for entrepreneurship. The study also contributes to “SDG 5: Achieve gender equality and empower all women and girls”, specifically Target 5.5 which focuses on women's equal participation in all economic spheres. Lastly, it addresses “SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”, particularly Target 8.3, which focuses on development-oriented policies, resources accessibility, and institutional support to foster entrepreneurship. Originality/value The novelty of this study lies in its integrative approach for investigating the unique challenges hindering the entrepreneurial success of women entrepreneurs in India, which are distinct from those faced in developed nations. The exploratory research stage uncovers the entrepreneurial challenges faced by urban Indian women and proposes the entrepreneurial challenges framework. The study also explains how certain challenges and success factors among women entrepreneurs are more acute in India. It strengthens the link between theory and practice by informing more inclusive policy measures, context-specific strategies, and targeted interventions to support and empower women-led entrepreneurs in the Global South.