Will she scale: Determinants that influence women-led enterprise growth in India

In developing countries like India, women entrepreneurs lag in transforming their aims into resilient and growing scale-up enterprises. According to Bain and Google (2020), only 17 % of women-run enterprises are large enough to hire workers, and only 1 % of women-owned enterprises are able to scale up in India. This study examines the effect of various resources on the likelihood of women-led enterprises being in the scale-up stage versus non-scale-up through the lens of the resource-based theory of entrepreneurship. Data were collected from 309 women entrepreneurs across five Indian states. Based on the OECD's definition, the sample was segregated into 178 non-scale-up and 131 scaled-up enterprises. Logistic regression was used to test for the effect of resources on the likelihood of scaling. The findings reveal that firm resources, such as location, industry sector, and performance monitoring indicators, are crucial for scaling up. Financial resources, especially initial investment, significantly impact scaling. Social resources, such as family support, especially from male family members, the presence of any entrepreneur in the family, joint purchases and sales with other women entrepreneurs, and interacting with them for business decisions, enhance scaling. Human resources, like risk-taking and technological resources, especially digital platforms, also facilitate scaling. This study uniquely examines two stages of the enterprise, i.e., scale-up and non-scale-up, and identifies critical resources enabling women-led enterprises to scale up their business. It informs policymakers and the government to emphasize training programs, family involvement, and supportive ecosystems to enhance enterprise scaling, risk-taking, and sustainable growth.