From ownership to operations: mapping gender inequality in India’s informal enterprises

The Annual Survey of Unincorporated Sector Enterprises (ASUSE), conducted by the National Sample Survey Office (NSSO), provides annual data on non-agricultural informal enterprises operating across India. Our previous analysis of ASUSE data (2021–22 to 2023–24) highlighted rising female proprietary ownership, while also revealing gender gaps—particularly in urban areas, hired-worker establishments, and sectors like trade and services. This article extends the analysis by examining rural–urban gender disparities in these proprietary establishments across three available ASUSE rounds, focusing on nature and location of operations, access to bank or post office accounts, and use of computers and internet. These indicators offer insights into the infrastructural and digital inequalities shaping how informal enterprises operate across gender and geography.

Across ownership types, the nature of operations in informal enterprises remains largely perennial

ASUSE categorises establishments into three types based on the nature of their operations: perennial enterprises, which operate for most of the year on a regular basis; seasonal enterprises, which operate only during specific seasons or fixed months; and casual enterprises, which operate intermittently without a regular schedule. Figure 1 shows that over 97 percent of establishments across all ownership categories were perennial, with minimal variation by gender. While seasonal and casual operations remained limited overall, rural female-owned establishments were the only units to register an increase in seasonal activity, rising from 1.3 percent in 2021–22 to 2.1 percent in 2023–24.

Men Take Business Outside—Women Still Run Enterprises from Home

Figure 2 shows that in 2023–24, 70.6 percent of rural and 75.5 percent of  urban male-owned establishments operated outside household premises. In contrast, female-owned establishments were largely home-based: 84 percent of rural and 64.6 percent of urban female-owned establishments operated within the household premises. 

In 2023–24, according to Figure 2, 70.6 percent of rural male-owned establishments operated outside the home—4.4 times the share of those headed by their female counterparts (16 percent). In urban areas, the likelihood was 2.1 times higher for male-owned establishments (75.5 percent versus 35.4 percent, respectively). Additionally, among women-owned establishments, urban units (35.4 percent) were 2.2 times more likely to operate outside the household than rural ones (16 percent), in 2023-24.

More female enterprises have bank accounts—but not as many as men

Figure 3 records a rise in bank or post office account ownership across all establishments from 2021–22 to 2023–24. In 2023–24, 75.5 percent of rural and 83.1 percent of urban male-owned establishments held accounts. For female-owned units, the figures were 60.3 percent and 64.8 percent, respectively—making male-owned establishments 1.25 times more likely to hold accounts in rural areas and 1.28 times more likely in urban areas.

Urban establishments recorded higher account ownership than rural units across both genders. Figure 3 shows, in 2023–24, female-owned establishments in urban areas were 1.08 times more likely to have a bank or post office account than those in rural areas (64.8 percent versus 60.3 percent, respectively). However, across all three years, urban female-owned establishments continued to trail rural male-owned units in account ownership.

Computer use eludes majority of informal enterprises

Figure 4 presents the share of proprietary establishments that reported using computers in the last 365 days, disaggregated by gender of owner and sector. Overall usage remained low across all groups. In 2023-24, urban male-owned establishments reported the highest usage (9.7 percent), while rural female-owned units recorded the lowest (0.5 percent).

Figure 4 records a marginal decline in computer use among proprietary establishments between 2021–22 and 2023–24, with no overall improvement. Additionally, computer adoption remained higher in male-owned units across sectors and in urban areas across both gender groups. Figure 4 shows that in 2023–24, computer use in rural areas was 7.1 times higher among male- than female-owned establishments (3.6 percent versus 0.5 percent, respectively). In urban areas, the gender gap narrowed to 3.7 times (9.7 percent versus 2.6 percent, respectively). Urban-rural differences were also pronounced within gender groups: In 2023-24, computer use among urban male-owned establishments was 2.7 times that of  their rural counterparts (9.7 percent versus 3.6 percent, respectively), while the ratio for female-owned units stood at 5.3 (2.6 percent versus 0.5 percent, respectively).

Who’s online? Mapping digital access of informal enterprises

Figure 5 represents the share of establishments that reported using the internet in the last 365 days, disaggregated by the owner’s gender and sector. Internet usage increased across all groups over the three-year period. In 2023–24, urban male-owned establishments reported the highest usage at 40.6 percent, while rural female-owned units recorded the lowest at 9.4 percent.

Figure 5 shows that in 2023–24, internet use in rural areas was 2.4 times higher among male-owned establishments (22.5 percent) than those owned by women (9.4 percent). In urban areas, the gender gap in usage stood at 2.1 times (40.6 percent versus 19.5 percent, respectively). Urban female-owned establishments (19.5 percent) reported more than double the internet use of their rural counterparts (9.4 percent),  while for male-owned units, usage was 1.8 times higher in urban areas (40.6 percent versus 22.5 percent, respectively) in 2023–24.

Figures 4 and 5 show that internet usage outpaced computer usage among proprietary establishments from 2021–22 to 2023–24. This trend points to the growing reliance on mobile phones for digital engagement. Mobile devices offer a more affordable, accessible, and user-friendly alternative to computers—especially in environments with limited infrastructure and financial constraints. The growth of mobile internet services and app-based platforms has further enabled establishments to perform essential business functions such as communication, marketing, and transactions without the need for a computer. It underscores how accessibility and cost-effectiveness continue to shape the nature of digital engagement in the informal sector, where barriers to adopting more complex technologies remain high.

In conclusion, gender and spatial disparities continue to shape the operations of informal enterprises, with female-owned and rural units facing persistent disadvantages in access to finance, digital infrastructure, and physical workspace. These operational gaps reflect deeper structural asymmetries in opportunity and participation, limiting the ability of these enterprises to expand, adapt, and engage fully with broader economic processes.