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87% Women-Led MSMEs Predict 2026 Growth, 72% of All MSMEs Plan New Outlets

A new study reveals overwhelming confidence among India's MSMEs, particularly those led by women, with 87% projecting business growth in 2026. The report highlights a significant shift towards physical expansion, as 72% of MSMEs plan to open new outlets, challenging digital-only growth narratives. Women entrepreneurs are showing a more structured approach, prioritizing staff training, financial planning, and customer experience over rapid scaling. Key expectations from the upcoming budget include simpler compliance and better access to capital to sustain this growth momentum.

Key Points: Women-Led MSMEs Drive Growth, 72% Plan New Outlets: Report

  • 87% of women-led MSMEs project 2026 growth
  • 72% of all MSMEs plan new physical outlets
  • 58% of women entrepreneurs plan expansion-led business loans
  • Recovery driven by festive demand and better payment flows
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87% of women-led MSMEs project strong growth in 2026, 72% of overall MSMEs plan to open new outlets: Report

NeoGrowth study reveals 87% of women-led MSMEs project strong 2026 growth, with 72% of all MSMEs planning physical expansion, signaling a brick-and-mortar revival.

"Confidence among women-led MSMEs is not just higher, but also more structured, with a sharper focus on people planning, financial preparedness, and sustainable scale. - NeoGrowth MSME Business Confidence Study 2026"

New Delhi, January 13

Women-led micro, small and medium enterprises are emerging as a strong pillar of India's small business recovery, with 87% expecting business growth in 2026, according to NeoGrowth's MSME Business Confidence Study 2026.

The study shows that 80% of women entrepreneurs reported an improvement in business performance in recent months, driven by festive demand, better payment flows, and improving operating conditions. Confidence among women-led MSMEs is not just higher, but also more structured, with a sharper focus on people planning, financial preparedness, and sustainable scale.

Notably, 58% of women-led MSMEs plan to take a business loan in 2026, signalling expansion-led intent rather than distress borrowing. Their growth priorities extend beyond opening new outlets to include hiring and training staff, improving store aesthetics, and strengthening financial planning, pointing to a maturing approach to entrepreneurship.

Looking ahead to Budget 2026, women entrepreneurs echo broader MSME expectations but with added emphasis on timely access to capital, simpler compliance, and digital capacity building. These enablers, the study notes, are critical to sustaining momentum as women-led businesses transition from recovery to long-term growth.

It further said that women-led MSMEs are placing greater emphasis on people, financial planning and customer experience, rather than rapid, scale-at-any-cost expansion.

The NeoGrowth study highlighted that the India's small businesses are signalling a renewed vote of confidence in brick-and-mortar retail, with 72% of MSMEs planning to expand their physical footprint or open new outlets in 2026.

The finding challenges the notion that growth for small businesses is increasingly digital-only. Instead, MSMEs are doubling down on physical presence to capture local demand, improve customer experience, and build brand visibility, particularly after a strong festive season revival.

The study shows that 8 in 10 MSMEs reported improved business performance in recent months, supported by festive demand, GST 2.0-led pricing efficiencies, and stronger payment flows. This recovery has translated into concrete expansion plans, with entrepreneurs viewing new outlets as a sustainable growth lever rather than a high-risk bet.

While physical expansion tops the priority list, MSMEs are also adopting a hybrid approach. 30% plan to add new products or brands, and a growing number are exploring online sales and digital platforms as complementary channels to support scale and resilience, the report said.

- ANI

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Reader Comments

R
Rohit P
Great to see the confidence is back! The 72% planning new outlets is a strong signal. After the pandemic, many thought everything would go online, but there's no replacement for a good physical store where customers can touch and feel products, especially during festivals.
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Anjali F
The part about women-led MSMEs having a more "structured" and "maturing" approach really resonates. We're thinking long-term - good staff, solid finances, happy customers. It's not about quick money. Hope banks recognize this intent and offer better terms for business loans to women.
V
Vikram M
Positive report, but a word of caution. Expansion is good, but the ground reality of rents, municipal compliance, and getting skilled staff is still very tough, especially in tier-2 cities. Hope this confidence translates into sustainable profit and not just turnover.
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Sarah B
The hybrid approach makes so much sense. My small business uses a local storefront for trust and community connection, but also sells through digital platforms to reach a wider audience. It's the best of both worlds. Glad to see data backing this trend!
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Karthik V
Festive demand is indeed a massive boost. Diwali and Christmas sales were excellent this year. If GST 2.0 can further simplify things and improve cash flow, this growth story will be even stronger. Jai Hind, Jai MSME!

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