The Role of Technology in Democratizing Entrepreneurship in India

Entrepreneurship in India has historically been the domain of the few—those with access to capital, urban markets, and influential networks. But today, with the rise of digital infrastructure and accessible technology, that trend is shifting rapidly. Technology is no longer just a support tool—it is an equalizer, democratizing entrepreneurship across the country, especially in rural India.

Investor focus 

Investments in the rural agri-tech space have skyrocketed in the last four years, growing at more than 50% p.a. to aggregate ~INR 6.6K Cr till 2020. Investors have focused on opportunities that address systemic issues, building sustainable systems, and ensuring inclusive growth. Similarly, finance technology has recently attracted investors. Significant domestic and international investments are being pumped into the sector to improve efficiency and access to credit.

Surge of start-ups. These ecosystem developments have drawn multiple new players into the market to offer technology-based solutions like offtake marketplaces, storage and transportation services, and agronomy advisory services. Large traditional players are adopting technology to reduce operational costs and scale, either by developing in-house solutions or by partnering with emerging players. Several global tech giants (e.g., IBM, Microsoft) see this space as a new growth opportunity and are investing in innovative solutions for crop health monitoring and yield estimation.

Breaking Barriers with Connectivity

The digital revolution in India, driven largely by mobile-first internet access, has closed the urban-rural gap significantly.

As of 2024, over 500 million Indians in rural areas have access to the internet, a majority of whom use mobile devices.

This connectivity has shifted mindsets and opened up new possibilities. A farmer in Punjab can now learn precision farming techniques from YouTube,

while a homemaker in Jharkhand can learn to run an online clothing store. These changes are not just behavioral - they are cultural.

Internet access is transforming aspirations and helping youth look beyond traditional livelihoods.

E-Commerce Marketplaces

These platforms have provided the much-needed exposure to underserved regions, allowing artisans and small manufacturers to bypass middlemen.

For instance, Flipkart’s Samarth initiative has partnered with NGOs and government bodies to onboard thousands of rural entrepreneurs.

Amazon Karigar supports over 3,000 sellers from tribal and artisan communities. These marketplaces also offer language support and cataloging assistance,

making it easier for first-time sellers. Platforms like Meesho have become popular among women entrepreneurs in semi-urban and rural areas due to low entry costs and the ability to manage businesses via smartphone apps.

Digital Payments and Fintech Solutions

Beyond digital wallets and UPI, new-age fintech startups are building tools tailored for small and rural businesses.

For example, platforms like Khatabook and OKCredit are replacing physical ledgers, allowing small shopkeepers to manage transactions digitally and send payment reminders.

Micro-insurance products and crop-specific financial tools are also reaching rural entrepreneurs through embedded fintech models.

This financial inclusion fosters resilience and long-term planning, critical for sustainable entrepreneurship.

Access to digital payments

Cash is still the dominant method of payment for rural financing, accounting for roughly 90% of all payments. However, digital payments penetration is increasing, driven by government interventions like the Payment Infrastructure Development Fund, which subsidises the deployment of payment acceptance infrastructure in Tier 3 to Tier 6 centres. Nearly 2.46 lakh physical payment acceptance devices have been installed as of September 2021.

India Stack, a set of application programming interfaces (APIs) open to governments, businesses, and start-ups, also encourages digital payments adoption. It created a single interface for Indians to transact from any bank account. RuPay, the Indian card-payment network, is also boosting the cashless economy. As of October 2021, close to 32 Cr RuPay debit cards have been issued to PMJDY account holders, up from almost 20 Cr at the end of 2016.

Digital penetration is rapidly increasing, driven by the growth of UPI apps like PhonePe and Google Pay. UPI has grown from almost no transaction volume in 2017 into a dominant payment source. Accelerated by the pandemic, UPI processes eight times more transaction value today than credit cards (see Figure 3). Between April 2020 and September 2021, PhonePe’s monthly transaction value rose from ~INR 0.6 lakh Cr to ~INR 3 lakh Cr. Similarly, Google Pay experienced month-over-month growth of 7% in 18 months, with monthly transaction values rising from ~INR 0.7 lakh Cr in April 2020 to ~INR 2.5 lakh Cr in September 2021.

Logistics and Supply Chain Enablers

Logistics startups have innovated in last-mile delivery, including drone-based logistics trials in remote villages and AI-powered route optimization.

India Post’s digital transformation has made it a preferred logistics partner for rural entrepreneurs, particularly in areas with limited private courier services.

Warehouse-as-a-service models offered by startups like ElasticRun allow entrepreneurs to store goods in hubs closer to demand centers, reducing delivery times and costs.

Learning and Skill Development Platforms

Several edtech startups are localizing content in regional languages and offering live mentoring, thus breaking the language barrier for non-English-speaking entrepreneurs.

Government platforms like SWAYAM, along with private initiatives like Udemy and upGrad, offer modules in digital marketing, customer service, GST compliance, and more.

WhatsApp groups facilitated by NGOs also act as grassroots knowledge exchange forums. Many rural youth are now certified through these platforms, giving them credibility and confidence.

Social Media and Digital Marketing

Social commerce is on the rise. A beauty product seller in West Bengal can use Instagram Reels and YouTube Shorts to demonstrate products, answer queries live, and convert followers into customers.

WhatsApp Business allows catalog sharing, automated replies, and customer relationship management. Facebook and Instagram Ads enable targeted promotions at affordable rates, even for budgets as low as ₹100.

Influencer marketing is also growing in Tier 2 and Tier 3 markets, where local influencers help rural brands gain traction among their communities.

Let us look at how a very small "Glass Bangle Seller" named "Valaioosai Ammachi", a rural women from suburb of Chennai have gone global by setting up store with just Rs.1000.   She has become so famous with huge followers and in one of the media interview she mentioned that she sells bangles from Rs 20 to Rs 2000 per dozen to global buyers.  Her business venture named  "Srisambirdhayaa" has all the online channels including Instagram, Facebook, YouTube to attract the customers across globe.  Her YouTube channel has 109K subscribers with 67.29 million views in just two years.  This is just possible in the new technology era only by adopting to the right tools and channel.

Technology behind rural financing

Microfinance digital-first platforms like Dhani have emerged to provide end-to-end financial services, such as access to personal loans, personal and medical insurance, and stock brokering solutions. Kissht is another digital credit-financing platform that uses proprietary software and a credit marketplace to issue instant consumer loans. It also has partnerships with major brands to provide equated monthly installment (EMI) options at point of sale.

Government and Private Ecosystem Support

Several state governments—like Tamil Nadu, Gujarat, and Telangana—have launched rural startup missions, offering financial assistance, training, and market access.

Let us look at an example of a very successful market place project implemented by state government in India. 

"Hastkala Setu" (https://hastkala.gujarat.gov.in/) is a Gujarat’s state government

Sponsored initiative for Empowering Rural Entrepreneurship.  The platform is dedicated to

uplifting artisans, providing them necessary training and make them to showcase their

creations to the world market place.  This is a great opportunity for the poor and rural craftsman of weavers with authentic handicrafts not only to show case their products but also make a profit.

The project started in Year 2020 and it had huge positive impact (https://ediindia.org/project-government/hastkala-setu-yojana-gujarat/) across 33 districts of Gujarat by providing market linkages to 5258 craftsmen through many intervention programs.

The Atal Innovation Mission’s Atal Tinkering Labs in schools are introducing students to entrepreneurship from an early age.

Private players such as TATA Trusts, NSDC, and the Bill & Melinda Gates Foundation also support rural entrepreneurship via digital skilling and incubation programs.

The Unified District Information System for Education Plus (UDISE+) data is also being used to map talent availability in different regions, aiding targeted development efforts.

From Margins to the Mainstream

These are not isolated success stories. In Madhya Pradesh, a women’s cooperative uses AI-driven crop monitoring to grow high-yield turmeric for export.

In Arunachal Pradesh, tribal entrepreneurs use blockchain to prove the authenticity of organic honey. Startups like DeHaat and AgroStar have turned small farmers into agri-entrepreneurs by connecting them to buyers, input suppliers, and advisors via mobile apps.

Entrepreneurship is becoming an identity—not just an occupation. Rural India is no longer waiting for opportunities to come; it is creating its own.

Conclusion: The Rise of the Rural Digital Entrepreneur

As India advances toward a $5 trillion economy, rural entrepreneurship fuelled by digital access will be a cornerstone of inclusive growth.

However, challenges like digital literacy, power supply, and gender disparity still need addressing. Public-private partnerships will play a vital role in bridging these gaps.

Ultimately, democratizing entrepreneurship through technology means ensuring that every idea , regardless of origin - has a chance to succeed.

And that future is not just possible; it is already unfolding across India’s smallest towns and largest dreams.