Enhancing and sustaining entrepreneurial mindset and ecosystem through social capital: A case of rural women in North Gujarat, India

Abstract

This empirical study on the business strategies and resilience of 25 rural women entrepreneurs who had no prior experience in doing business. Semi-structured interview of 25 women entrepreneurs of the Leuva Patel community in five villages in northern Gujarat was held face-to-face with the interviewees in Gujarati during February-March 2023 to evaluate the genesis and management of their processed food enterprises initiated during the COVID-19 pandemic in India. Repeated and prolonged lockdowns enforced social distancing abruptly halted daily movements and transportation of people, goods, and commodities. Yet, women could collaborate with fellow women, initiate their food-processing groups, and establish their regular source of income, a sustainable alternate source to support their families while remaining in their villages and keeping their enterprises informal throughout.  The study found that women entrepreneurs' business decisions have been underpinned by their social capital, symbolized by trust, bonding, and linking among community members within and outside their villages: the community's entrepreneurial ecosystem has strengthened their resilience in exploring, capturing, and enhancing business opportunities. The study highlights why women entrepreneurs tend to stay in the informal sector and suggests future directions of research on entrepreneurial ecosystem and mindset.  Suggested policy directions to enhance sustainable rural women entrepreneurship in formal sector are could be timely and valuable.