Women’s entrepreneurship is key to bridging gender gaps in economic opportunities and advancing SDG 5 on Gender Equality. In India, women own 20% of micro, small, and medium enterprises (MSMEs) but account for only 7% of formal MSME credit, highlighting persistent barriers beyond policy design.

This study undertaken by LEAD under its Udyogini initiative explores how women entrepreneurs navigate formal credit systems, focusing on micro-entrepreneurs across seven districts in Tamil Nadu. Using an audit (“mystery shopper”) approach, the report maps the credit-seeking journey, capturing challenges at each stage—from awareness and information seeking to documentation and loan outcomes. It examines procedural barriers, informal gatekeeping, and gendered differences in guidance and outcomes, while identifying enterprise and entrepreneur traits that influence access to finance.

The study also proposes strategies to improve process-level transparency, standardise communication, and foster equitable financial engagement, enabling sustainable growth for women-led businesses.