Running a business is a challenge and a graver one for women. Despite their qualifications, expertise, and best efforts, women entrepreneurs struggle to expand their businesses and gain recognition as business owners more than their male counterparts. This is due to various reasons, as discussed in this article. According to a World Bank Report, only 7% of entrepreneurs in India are women, and most started a business out of obligation rather than aspiration.
A fast-developing nation like India requires a strong female entrepreneurship index. Currently, India has more female-owned businesses than several other countries. Women own 13.5–15.7 million agribusinesses and MSMEs in India. Thanks to support from banks, governments, and institutions, women's entrepreneurship grew from 14 to 20% in the last decade. However, these figures are still far below the developed nations like the UK and the US and developing countries like Brazil, Russia, Nigeria, etc.
Despite immense support and opportunities, why does the Indian market have a massive gender gap of over 70%? Let's look at the most common problems of women entrepreneurs.
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List of Challenges Faced by Women Entrepreneurs
Female entrepreneurs face various challenges in India that are unique to their gender. These are the most common challenges faced by women entrepreneurs while setting up and running a business in India:
Gender Barriers
Even though Indian society has evolved, and everyone claims that men and women are equal, gender barriers still exist heavily. Despite the government's efforts to encourage women's leadership and empowerment, it is still challenging for females to prove their skills and gain recognition for their endeavours.
Gender inequality and pay gaps are the most common problems women entrepreneurs face in India. They still need their husband, brother, or father’s ‘permission’ to go for a job or start a business. Such blockades prevent female entrepreneurs from scaling the heights they are capable of.
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Economic Challenges
Although it might sound unfair, the Indian finance scene has massive gender gaps. Female business owners in India commonly face economic challenges due to investors’ prejudice and other factors. Of all companies receiving business funding, only a small percentage comprises female founders. Many angel investors and VC firms are reluctant to invest their money in women-led companies for various unspecified reasons. Moreover, most women don't have assets or properties in their name, or they don't have the authority to mortgage or sell them.
Therefore, economic challenges come up as a major problem when applying for private financing or collateral loans. To overcome the challenge, small unsecured Business Loans for women from Hero FinCorp can provide the required funding without needing collateral, guarantor, or security.
Legal and Regulatory Hurdles
Women business owners often face challenges dealing with laws related to marriage or divorce, property distribution, inheritance, and business permissions. Also, there are not many representatives for them in legal space. The legal procedures and costs also create obstacles.
Work-Life Integration
According to a recent National Family Health Survey (NHFS) report, only 32% of married Indian women aged between 15 and 49 are employed. In most Indian homes, women are responsible for cooking, cleaning, and caring for their children and other family members. Society expects these roles as a woman's obligations that they must play adequately. Successful business owners need good work-life integration to control their social and professional lives, including family responsibilities.
When a woman starts a business, their priorities and schedules change. Household responsibilities and family commitments may disturb women entrepreneurs’ work-life balance, making it challenging to run a business.
Networking and Mentorship
Limited access to networking is one of the basic problems of women entrepreneurs. Due to less integration with informal and formal networks, female SME owners suffer from insufficient network development avenues. Many women feel unsafe travelling alone or staying at hotels while touring for business purposes. Most Indian hotels still do not accept single women as guests unless a man accompanies them.
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Men dominate most professional networks, making navigating or accessing these spaces challenging for women. Therefore, they do not get enough opportunities to find vendors and collaborators, build social networks, and grow their businesses.
Access to Resources and Technology
Entrepreneurship is a lengthy journey involving a lot of learning, training and up-skilling. Access to the required resources and technology is crucial to a strong spirit that deserves to become a successful business owner. However, many female entrepreneurs suffer from the lack of funds to establish a productive environment. For instance, if a woman wants to start manufacturing something, she might not have enough money to purchase the required machinery or equipment. That is when Business Loans for women provide the required support to strengthen their businesses.
Overcoming Mental Barriers
India is a patriarchal society where men and women have different roles. Women are expected to cook food, raise kids, handle domestic chores, care for older adults, etc. Juggling between professional and family responsibilities is a significant challenge, especially when a woman sets out to build a brand.
Government Initiatives and Support
While female entrepreneurship has gained around, the numbers are expected to rise in the next few years. The Indian government has introduced several support programmes to assist women entrepreneurs in overcoming the difficulties they face. These include the Mudra Loan, Stand-Up India Scheme, Mahila Coir Yojana, CGTMSE, Udyam Shakti Portal, TREAD, etc. Aspiring women entrepreneurs can take advantage of these schemes to overcome the challenges they face.
Also Read: Government Schemes for Women Entrepreneurs in India
Conclusion
While these problems faced by women entrepreneurs are real, modern women are slowly becoming stronger to overcome the challenges and bear adversities with courage. As an increasing number of businesses now become women-centric, they can pursue their dreams more freely. Moreover, lending institutions like Hero FinCorp have also made their loan offerings more favourable to female entrepreneurs with preferential interest rates and better loan deals. Hero FinCorp offers unsecured Business Loans for women, allowing them to rise and shine.
Frequently Asked Questions
1. What are the top problems faced by women entrepreneurs in India?
Women entrepreneurs in India face various challenges unique to their gender. Lack of financial support, gender biases, mental barriers, and the need for work-life integration are the most common challenges faced by women entrepreneurs in India.
2. How can women navigate competitive markets and succeed?
A woman entrepreneur can navigate competitive markets and succeed by identifying their passion, building a strong network, developing a solid business plan, seeking mentorship from successful entrepreneurs, calculating their risks, and borrowing small Business Loans for women.
3. What government initiatives exist to support women entrepreneurs in India?
Mudra Loan, Stand-Up India Scheme, Mahila Coir Yojana, CGTMSE, Udyam Shakti Portal, TREAD, etc., are some of the most successful government initiatives to support women entrepreneurs in India.
4. What policy changes can empower and encourage women entrepreneurs?
Introducing gender-neutral policies, addressing policy gaps, building on women’s assets, promoting business resiliency, etc., are some changes that can empower and encourage women entrepreneurs in India.
5. Who are some inspirational women entrepreneurs in India, and what can we learn from them?
Ashwani Asokana (Mad Street Den), Sugandha (Dottocare), Falguni Nayar (Nykaa), Hemalatha Annamalai (Uni Connect), Divya Gokulnath (Byju’s), etc., are some of the most inspirational women entrepreneurs in India. They have overcome the challenges faced by women entrepreneurs, learned from their mistakes, and built massive networks to bring their businesses to new heights.
