Bihar Women Quitting Jobs to Become Entrepreneurs: Government Schemes Fuel Self-Employment Boom

A remarkable shift is underway in Bihar, where women are increasingly leaving traditional jobs to become business owners. Post-COVID trends show that the state’s female workforce is prioritizing entrepreneurship over salaried employment, reflecting a new era of women-led economic empowerment.

Recent data highlights that the Bihar government’s initiatives to promote self-employment among women are bearing fruit. Female Labour Force Participation Rate (FLFPR) in the state has witnessed a striking rise from 4.11% in 2017-18 to 30.5% in 2023-24. The growth is particularly driven by rural women, who are actively engaging in farming and starting their own businesses.

Rural Women Leading the Charge

Rural female entrepreneurs have surged from 35.2% in 2017 to 84.8% in 2024, while urban women’s participation in business has grown from 25.4% to 61% in the same period. This shows a significant empowerment of women in both rural and urban areas, with villages now outpacing cities in terms of women-led entrepreneurship.

Decline in Job-Based Employment

Interestingly, the number of women pursuing traditional employment has decreased sharply. In rural areas, women working in regular jobs fell from 27.9% to 3.6%, and in urban areas, from 63.4% to 30.3%. Experts suggest that this trend indicates women’s growing preference for self-employment and independence over regular salaried work, a shift far more pronounced in Bihar than at the national level.

Government Support Driving Change

Bihar Chief Minister Nitish Kumar’s policies have played a pivotal role in this transformation. Moving beyond cash transfers, the state government is actively promoting women’s self-reliance and decision-making. Key schemes include:

1. ₹10,000 Startup Assistance: Women receive direct transfers of ₹10,000 to start small businesses or self-employment ventures.
2. Widespread Beneficiaries: Over 1.25 crore women have benefited from this initiative, with an initial 75 lakh women supported and 50 lakh more added later.
3. Additional Support: Women whose businesses succeed may receive up to ₹2 lakh in additional assistance to expand their ventures.

These steps are redefining Bihar’s female workforce, empowering women to take charge of their livelihoods and contribute significantly to the state’s economy. Experts say this shift marks a “women-led economic revolution” in Bihar, where entrepreneurial ambition is now replacing conventional employment.