The number of female entrepreneurs in India has increased significantly in recent years, offering the opportunity for significant economic development and gender parity in the formal economy. Nevertheless, the fact that women only lead 14% of Indian enterprises showcases influential barriers that prevent women from fully engaging in entrepreneurship. Moreover, according to the sixth economic census, female entrepreneurs make up around 13.76% (approximately 8.05 million) of the total 58.5 million entrepreneurs in India despite the encouraging trend. Source
Hurdles Faced by Women in India
Let’s understand the most prominent funding hurdles women entrepreneurs face in India, the gradual and uneven progression, and the urgent need for more business financing support for women entrepreneurs in India.
Limited Access to Capital
One of the primary challenges is limited access to funding for female entrepreneurs in india. Traditional financial institutions often hesitate to extend loans to women-owned businesses due to perceived risks associated with gender bias or lack of collateral.
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Gender Gap in Business Financing
Starting a business requires funds, but women entrepreneurs in India encounter obstacles, with approximately 90% struggling to secure business financing from traditional institutions due to a lack of collateral.
Gender bias within banks and government agencies results in higher interest rates and around 30% higher likelihood of needing a guarantor. Women-led businesses often resort to microfinance business loans and self-help groups for financial support, unlike their male counterparts.
Barriers to Industry Access
Studies indicate a notable sector-specific trend among women business entrepreneurs, as they operate within traditional female-dominated sectors. Women face barriers to accessing industry opportunities due to deep-seated gender biases and systemic challenges. Gender stereotypes discourage them from working in fields like production, technology, or science. Glass ceilings limit their advancement into leadership roles and restrict opportunities. Also, limited networking, confined funding for female entrepreneurs in India and recruitment biases hinder their progress.
Building a Support Network
For women entrepreneurs in India, establishing a good support system is challenging. Unlike their male counterparts, many women lack support from their families or spouses when they venture into business risks. The lack of support increases the difficulties of networking and funding for female entrepreneurs in India. Shockingly, statistics indicate that 48% of women in business need more guidance to understand entrepreneurship successfully. They face hurdles in finding mentors and experience challenges in networking. With family responsibilities and limited funds, not having support from families adds to the challenges women face in business.
Keeping a Healthy Balance between Work and Personal Life
Women entrepreneurs often face a challenge in managing their business ventures and family responsibilities. Some choose to leave their corporate jobs to pursue entrepreneurship, but they often find themselves torn between prioritising the success of their businesses and meeting their family’s needs. Not only is juggling these two obligations stressful, but it can also force you to make tough choices. A lack of assistance from family further complicates the problem.
Limited Risk-taking
Family obligations and societal norms limit Indian women’s exposure to risk-taking, affecting critical business decisions. The lack of independence compared to men makes it challenging for women entrepreneurs to seek family counsel and further complicates their decision-making process. Challenges in decision-making persist, from informing partners before business loans and investments to consulting fathers and brothers.
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Ways to Support Women in Overcoming Barriers
Supporting women to overcome barriers in their entrepreneurial journey is crucial for building a fair and inclusive society. Here are some simple ways we can help to get business loans for women:
Financial Support
There are several issues in funding for female entrepreneurs in India. To help, we can create special programs that provide funds such as KreditBee Business Loan or grants just for women entrepreneurs. Also, we should ensure that banks and other places that lend money treat women fairly and don’t have any unfair rules.
Learning Opportunities
Women need to have the chance to learn and improve their skills. We can organise classes or workshops where they can learn about running a business, using technology, taking a KreditBee Business Loan, and managing money. This way, women can feel more confident and capable in their entrepreneurial journey.
Mentorship Programs
Having someone experienced to guide and support you can make a big difference. We can make programs where successful business people, especially women, can share their knowledge with those just starting. Mentorship helps women navigate business loan challenges and boosts their confidence.
Networking Events
Building connections with other business people is vital. We create a supportive community by organising events where women can meet and connect with mentors, investors, and fellow entrepreneurs. Networking provides opportunities for collaboration, sharing ideas, and finding solutions together.
Fair Policies
Sometimes, rules and policies in the workplace or business world may not treat women equally. We can advocate for fair business financing policies that give women the same chances as men. It includes family-friendly policies and flexible work arrangements.
Removing Biases
Unfair judgments based on a person’s gender or biases hinder women’s progress. We can aim to raise awareness of these prejudices and establish equitable procedures that do not discriminate against women, whether financing business loans, employment, or promotion choices.
Supporting Work-life Balance
Many women juggle their business responsibilities with family duties. Offering support like child care facilities and flexible work options helps them manage both aspects of their lives effectively.
Digital Inclusion
Access to technology is crucial for businesses today. Ensuring that women have equal access to digital resources and providing training in digital skills bridges the technology gap.
Boosting Confidence
For women entrepreneurs, gaining confidence is essential. Training emphasising public speaking, negotiating, and leadership abilities can allow individuals to take on more important responsibilities.
Community Connection
Providing a safe space for women to interact, exchange stories, and support one another is important. The community connection gives a safe space for discussions and collaborative problem-solving.
Policy Advocacy
Engaging with policymakers to change unfair rules and promote equal opportunities is essential. Advocating for laws that support women entrepreneurs, providing business loans for women, and providing a level playing field can also help women entrepreneurs get access to funding.
Conclusion
Women entrepreneurs in India still face challenges in getting access to funding. Women must believe in themselves, ignore negativity, and work hard in business and family roles. Their sincerity and commitment are significant. Looking up to successful women from the past inspires new generations to start their businesses. As women continue this journey, they shape their own paths and make it easier for others to follow. The hope is for a future where women in business face fewer obstacles. With an easy KreditBee business loan, everyone gets a fair chance to succeed.