We can observe the increase in the proportion of female entrepreneurs in India and across the globe in the modern period. This development can be attributed to women’s unwavering commitment to achieving their goals. Despite their tenacity and passion, women business owners still face numerous obstacles.
Let’s look at some of the difficulties that women entrepreneurs experience below.
Challenges Faced by Women Entrepreneurs in India
Lack of Funding
- There are various studies and reports highlighting disparities in access to funding and venture capital based on gender. Women entrepreneurs face immense challenges in accessing capital due to biases held by investors and other factors. According to studies and surveys, very few percent of funded companies have female founder. VC firms and angel investors often exhibit reluctance when it comes to investing in businesses led by women.
- However, majority of lending institutions are offering financial support to enhance the potential of women entrepreneurs to excel at their endeavours. Business Loan for women can be utilised for meeting various financial requirements such as business expansion, hiring new staff, purchasing new machinery or equipment, etc. These loans are loaded with exclusive features – high loan amount, flexible repayment tenures and competitive interest rates, etc.
Lack of Access to Professional Networks
Today, one of the major problems of women entrepreneurs in India is the limited access to professional networks. A Google-Bain survey reveals that female business entrepreneurs need more connections and opportunities within both formal and informal networks. The survey also highlights that many of urban small business owners experience difficulties due to the lack of available avenues for network building.
Lack of Access to Financial Institutions
- Many Indian women do not have property or assets registered in their name, creating obstacles when seeking collateral loans or private financing. As a result, they do not seek formal credit for their businesses. The respondents were also deterred by the extensive loan procedures and application forms.
- Leading NBFCs such as Credit Success realize the need for a hassle-free loan application process for women entrepreneurs. With unsecured Business Loans, women entrepreneurs can avail a Business Loan without providing collateral. Moreover, it involves an easy online loan application process making it easier for entrepreneurs to avail loan without putting lot of efforts.
Lack of Role Models
Women entrepreneurs have often faced challenges in finding inspiring role models. These role models serve as examples of success in running their businesses. The absence of women inspiring women makes it difficult for aspiring female entrepreneurs to envision their own path to success. Having successful role models can help women entrepreneurs overcome self-doubt and build confidence.
Also Read – Common Issues Faced by Women in Funding A Business
Conclusion
As aforementioned, there are various problems faced by women entrepreneurs in their business ventures. We can also see the narrative is gradually changing, and more women are encouraged to pursue their entrepreneurial aspirations. Financial tools such as Business Loan have helped manage financial issues. With the high loan amount, women can scale their operations, hire more staff, and upgrade equipment, facilitating their path to success.
Frequently Asked Questions
What are the main reasons for the slow progress of women entrepreneurs in India?
Some of the reasons for the gradual progress of women entrepreneurs in India can be attributed to the following:
- Cultural and societal norms:These may limit women’s access to professional networks, resources, and business opportunities.
- Lack of financial support:The lack and limited access to capital creates challenges for women to realise their entrepreneurial ambitions.
- Gender roles:Societal expectations and traditional gender roles can make it challenging for women to balance their family and business.
What is the most difficult part of being an entrepreneur?
One of the difficult challenges of being an entrepreneur is managing finances. They have to secure funding, allocate resources wisely, and maintain a positive cash flow. All of these require a lot of planning and budgeting to ensure long-term success.
What are the three main factors affecting entrepreneurs?
The three main factors influencing entrepreneurs are the capital, labour, and raw materials. Market conditions directly impact the growth potential of a business. Competition inspires entrepreneurs to innovate to gain an edge over their competitors. Having access to resources including capital, talent, and infrastructure, can help entrepreneurs execute their ideas effectively.
