Women entrepreneurs play a crucial role in the growth of SMEs and MSMEs business community in India. Although their business expansion has been exponential in recent years, they often face significant obstacles in their venture.
The biggest hurdle most women entrepreneurs face is lack of proper finance. The backbone of any enterprise ifs financing; shortage of funds provides hindrance in stocking inventories, expanding business operation, etc. Given in such situations, women entrepreneurs have to rely on their savings to meet the necessary expenditure. This can often pose as a financial burden. Thus, realising these issues, the Indian Government has launched flagship start-up loan schemes to help women entrepreneurs in their business growth. These business loans are one of the exceptional ways to avail funding.
There are plenty other obstacles faced by women businessmen like low risk-bearing capability. Almost 39% of urban women population do not have a formal education. Out of that, 11% are illiterate and not economically self-reliant. This reduces their chances of starting an enterprise. However, with the availability of business loans for women entrepreneurs are making a stride.
A 2019 survey by the Centre for Entrepreneurs states, with the availability of credit facilities and favourable government schemes – female entrepreneurship is given a fresh lease in India.