Yes, 'Little Women' is based on a true story. It was inspired by the author Louisa May Alcott's own experiences growing up in a family with three sisters in Concord, Massachusetts.
Little Women has elements inspired by real-life events and people. The author drew from her own upbringing and relationships to create the story, so in a way, it's based on reality.
To some extent. The story contains elements inspired by real-life events and relationships, but it's also fictionalized and embellished for literary purposes.