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This paper aims to encapsulate the gendered support and hindering factors along with the role of the state experienced by Delhi-based women entrepreneurs in setting up/operating their enterprises amidst the challenges posed by the coronavirus disease 2019 (COVID-19) pandemic.

The study used mixed methods to explore the challenges faced and recovery mechanisms adopted by women entrepreneurs with special reference to the COVID-19 pandemic. A total of 50 Delhi-based young women entrepreneurs (42 actual entrepreneurs + 8 prospective/struggling entrepreneurs) selected using snowball/purposive sampling were studied through both a semi-structured questionnaire and personal interviews. National Small Industries Corporation (NSIC) and micro, small and medium enterprises (MSME) were consulted for the government’s policy documents and data. The SPSS package was used for quantitative data analysis.

Low-budget/very small-scale women entrepreneurs face common as well as gender-based challenges in the context of the market, finance, social capital, family support and awareness in addition to accessing the state’s resources/policies in both their startups and crisis situations, such as the COVID-19 pandemic. Although gender sensitization, entrepreneurial family background, and equal access to technology and the Internet has enabled women entrepreneurs to initiate, adapt, and scale their enterprises, male domination within the family, society, market, and state apparatuses is omnipresent and has served as a bottleneck for women-owned startups while hindering the recovery of their enterprises amidst the COVID-19 pandemic.

The study was limited to exploring the challenges and prospects of Delhi-based women entrepreneurs at the beginning of their enterprises and amidst the COVID-19 pandemic. On the other hand, the study had access to data and facts announced by the Indian government. No data were available on the implementation of policies and programs, and therefore specific policy analysis was not attempted. However, the reachability and accessibility of government resources and policies were employed.

The study highlights the complexity of patriarchy, which hampers women entrepreneurs in all family, society, market and state domains. Therefore, policy enactment and implementation and further research on women entrepreneurship are suggested to focus more deeply on the gender dimension.

The data used in this work comprised inputs from government sources as well as insights from fieldwork that have not been used by any other publication.