Problems Faced By Women Entrepreneurs
Here are the 15 most common problems that women entrepreneurs have to face:
Lack of funding
Funding is the soul of any entrepreneurial venture. Most of the women entrepreneurs find it difficult to get funding for their business ideas. The main reason behind this is that they have insufficient assets in their name. Lack of collateral poses a barrier in acquiring funds from prospective lenders. Most banks and other financial institutions have stringent eligibility criteria, such as having an established business. Thus, women entrepreneurs are dependent on their savings and monetary help from family and friends to start the business.
Responsibility towards home
Women are considered as the primary caretakers of the family and home. They are constantly under pressure to manage their work and life. This balancing act between work and home makes women entrepreneurs more stressed. Women find it difficult to dedicate too much time to business when their home and children demand much of their time.
Few sectors are women-friendly
Despite the measures to encourage women entrepreneurs, men still dominate most of the business sectors. Women-owned businesses are still the low-revenue sectors. The reason behind this is the male-centric nature of the industries. Profit-generating industries like manufacturing and construction are still owned by men. It limits the experiences, opportunities and capabilities of women entrepreneurs to a great extent.
Gender-inequality
Although society is changing and men and women are being called equal, but gender inequality still exists. Even after the governmental efforts for women’s empowerment, women are still struggling to get recognised. Gender inequality, pay gap, and discrimination are the barriers that prevent women entrepreneurs from reaching greater heights.
Fear to take risks
Risk-taking and failure go hand in hand with entrepreneurial ventures. Women, by nature, fear to take risks and experiment. They are weak at mastering the art of snap decisions, experimental strategies, and innovative changes. Women are always fearful of failing, as they are taunted by society. This fear is dreadful when there is a lack of support from family and friends.
Unfavourable and unsafe environments
The main problem that women entrepreneurs face everywhere is an unfavourable and unsafe environment. Women owners always require a male partner to be with them during business deal meetings or negotiations. Women entrepreneurs feel unsafe and fear of physical harassment is always there in their minds.
Less knowledge of the industry
Some sectors in the country are still male-dominated. Women entrepreneurs find it challenging to enter into those sectors due to a lack of knowledge of the industry, relevant industry contacts, processes, and mechanisms. These things are necessary for running the business efficiently and successfully. Today, digital literacy has empowered women entrepreneurs to get the right knowledge.
Lack of professional networks
Women entrepreneurs in India have limited access to the professional networks. Due to the stronger hold of men in these networks, women find it difficult to navigate to such spaces. Thus, they miss opportunities for business growth. Also, it is challenging for them to find vendors, and collaborators and build social capital.
Lack of education
Women entrepreneurs lack previous experience in running a successful business. The reason behind this inexperience is the lack of basic and higher education among women in India. This results in female entrepreneurs lacking the knowledge required for running a business.
Competition
There is fierce competition among the businesses in the market. Women face challenges from their competitors in the market and internal competition for leadership. Women need to prove their ability at every step to their colleagues and investors. Thus, women find it difficult to manage the business with limited resources.
Lack of role models
One of the major problems faced by women entrepreneurs in India is the lack of enough positive role models. Women are not able to imagine their way to success. They find it challenging to find women mentors who can groom them and provide feedback.
Limited mobility
Women are not supposed to travel alone or stay alone at hotels. It is a safety concern for them. Also, women are still far behind in owning or driving vehicles. These factors restrict the mobility of female entrepreneurs.
Government Schemes For Women Entrepreneurs
Indian government runs many women’s loan schemes to provide support to women entrepreneurs in India. Some major schemes are as follows:
Annapurna Yojana
This loan is provided to women entrepreneurs who want to start a business in the food catering industry. It is for setting up a small-scale business. Under this scheme, a loan of a maximum of Rs. 50,000 is provided to the women to sell packed food and snacks.
Bhartiya Mahila Bank Business Loan
The original goal of this banking program for female entrepreneurs was to help women and their enterprises on a big scale. Women have entered a wide range of commercial fields. The purpose of this loan is to provide economic empowerment to women. The borrowing ceiling for this source is Rs.20 crore.
Mudra Yojana Scheme
This is a business loan granted to women for business expansion. Once the loan is authorized, the entrepreneurs are issued Mudra cards, which function similarly to credit cards. The maximum withdrawal amount is 10% of the loan. The funds are allocated based on the type of business, amount of expansion, and loan purpose. This scheme has a borrowing ceiling of Rs.10 lakhs.
Orient Mahila Vikas Yojana Scheme
Women who individually or jointly own 51 percent of the share capital as a private concern are eligible for this women’s financing program. These loans, which offer a concession at an interest rate of up to 2 percent, are available to women entrepreneurs in India without the need for collateral security. There is a 7-year flexible repayment period and a maximum of Rs.25 lakh loan.
Dena Shakti Scheme
This scheme is for female entrepreneurs in the fields of agriculture, retail, manufacturing, small enterprises or microcredit organisations. Under this policy, the maximum loan amount is Rs.20 lakhs.
Pradhan Mantri Rozgar Yojana
This is the best scheme for women entrepreneurs in India. This plan focuses on self-employment of female entrepreneurs. The maximum loan amount under this scheme is Rs.2 lakhs.
Cent Kalyani Scheme
This scheme is for women entrepreneurs who want to either start a new business or expand the existing one. This loan is collateral-free and has no processing costs, allowing qualifying entrepreneurs to obtain funds up to Rs.1 crore.
Mahila Udyam Nidhi Scheme
The goal of this women’s lending program is to close the equity gap. It encourages MSMEs and small sector investments in a variety of industries, so they can develop and succeed. This further promotes the reconstruction of SSI units that, although judged unable, are truly salvageable. The debtor has ten years to pay back the loan, with a maximum amount of Rs10 lakhs.
Tips For Success For Women Entrepreneur
Here are some tips to help you achieve success at any stage, whether you are thinking of starting a new journey or are already an established businesswoman:
- Maintain a positive mindset: Don’t doubt your ideas and capabilities. Self-doubt creates a negative mindset and hinders your movement to success. A positive mindset not only helps to succeed, but also to face the challenges boldly.
- Embrace challenges: You should face the challenges upfront. Challenges push you out of your comfort zone and give you new ideas. Accept every challenge as an opportunity for growth.
- Try new things: Don’t be afraid of trying new things. Don’t worry about people taunting you about your capabilities. When you believe in yourself, it does not matter what the noise says.
- Eliminate limiting beliefs: Although everyone harbours limiting beliefs, the most successful people manage to get rid of them. Recognising and identifying those beliefs is the first step in getting rid of them. Recognise that you are experiencing these emotions and do not let them make you feel guilty.
Women face challenges in every walk of life. However, many overcome them and crave a niche for themselves. Women entrepreneurs need to identify the reasons behind the problems faced by them and work to eliminate those. The government of India is also supporting women entrepreneurs with all the schemes to finance their businesses. Entrepreneurial ecosystems should also be more supportive of women entrepreneurs. This will contribute to the economy of the country.
