Industry observers say societal expectations and traditional gender roles often limit women’s access to economic opportunities. Women entrepreneurs, particularly those in the urban areas, often face challenges in accessing capital, loans and financial services due to factors such as limited property ownership, lack of collateral and discriminatory lending practices.
Experts say the country with a large informal base urgently needs more gender-responsive policies and programmes that provide women entrepreneurs easier access to financial resources. This can include targeted loans, financial literacy training and venture capital funds dedicated to women-led businesses.
Studies have documented women face significant obstacles in accessing capital, loans and financial services. These challenges arise from factors such as limited property ownership, lack of collateral and discriminatory lending practices.
“Around 85% of women entrepreneurs faced challenges in availing loan services from nationalised banks as per one of our surveys,” says Lakshmi Venkataraman Venkatesan, Founding and Managing Trustee, BYST, an MSME-focussed business enabling platform. “Several measures are needed to encourage more women to launch businesses. Cultural norms often discourage women from stepping out for work, particularly in small towns and rural areas. It is imperative to improve access to bank finance by increasing budgetary allocations and tailoring the central government schemes to serve more women-owned businesses. Mudra loan size should increase from a low average of Rs 30,000 lent to women to at least Rs 3 lakh to enable them to start and sustain viable enterprises. Moreover, women have established a good track record of repaying loans (over 90%) so banks should come forward more readily to lend to women-owned businesses.”
Industry observers say mentorship is key to the success of women entrepreneurs. Thus, providing women with customised training, ensuring one-on-one mentoring at each touchpoint of their entrepreneurial journey and organising regular networking and peer-learning opportunities can elevate the entrepreneurial capabilities of women.Gayathri Vasudevan, Chairperson, LabourNet, says the key to enhancing women’s workforce participation lies in transforming employment patterns within MSMEs. While women’s participation rate in the MSME sector in India is low in general, there are pockets within the universe where it is adequate to high, she says, adding that women’s participation in the manufacturing sector in southern states, particularly in Tamil Nadu, is high for entry-level jobs across large enterprises and MSMEs. “Workforce participation of women in textiles, leather and electronics has been traditionally high in South and West India. It is also high in the service sector, especially in cities, across backend operations roles in IT & ITES and banking industries. These patterns tell us two things – one, women come into the workforce when they are likely to be a majority, meaning the geography and sector matters; and two, women are predominantly present in entry-level roles and there is a large missing middle.”
These barriers further contribute to gender disparities in economic opportunities by preventing women from securing funds to start or expand their businesses.
So, what can be done to remedy this situation? As Vasudevan sees it, the country needs to increase the number of women in supervisory positions. If women do not feel secure at a workplace, they stay away from it. Work-integrated educational programmes, financial incentives for companies to hire women and managerial programmes can bring women into the workforce.
In this specific context, experts assert platforms like the Women Entrepreneurship Portal can change the situation as these solutions support women entrepreneurs.
Ajay Parikh, Chief Program Officer of the Global Alliance for Mass Entrepreneurship (GAME), says, “We need more gender-responsive policies and programmes that provide easier access to financial resources for women entrepreneurs. This can include targeted loan programs, financial literacy training, and venture capital funds dedicated to women-led businesses.”
It’s also evident that a lack of access to education and training opportunities can hinder women’s ability to develop the necessary skills for entrepreneurship. Offering targeted training and capacity-building initiatives that provide business management skills, technical training and mentorship can empower women to overcome these challenges and thrive as entrepreneurs. “There is a need to create networking opportunities, mentorship programmes, and business support services. Additionally, promoting women entrepreneurs’ visibility and success stories can inspire others and provide them with guidance,” adds Parikh, adding women entrepreneurs also face challenges in accessing the market and supply chains.
To address this, governments and organisations can provide resources and platforms that offer market intelligence, facilitate networking opportunities, and connect women entrepreneurs with potential buyers and suppliers.
