We know how much women suffer from many differences in society, and most of the time, their situation becomes very critical that they can't even fulfill their basic needs because there are numerous barriers to women's entrepreneurship in India. Therefore, to achieve gender equality, sustainable economic growth, and poverty reduction, women must participate in the economy. In India, women make up 17% of the economy, which is less than half the average for the world.
When women lost their jobs and means of support, their income from their businesses fell, and the stress of providing unpaid care rose, COVID-19 worsened matters. Female business owners have restricted access to capital, capacity building that is concentrated on a small number of industries, a lack of information, a lack of networking opportunities, and weak market connections, which have been defined as barriers to women entrepreneurship in India and what affects women entrepreneurship in India. These difficulties and unfavorable social standards impact their entrepreneurial aims and aspirations.
The Indian government has launched several efforts to encourage female entrepreneurship at various levels. In this article, we'll discuss barriers to women's entrepreneurship in India, the women's entrepreneurship benefits in India, govt. Initiatives towards women entrepreneurship in India. But first, let us understand how the idea of women entrepreneurship has come to India.
The idea of Women Entrepreneurship in India.
New entrepreneurs drive India's economic growth due to the nation's thriving startup environment. People's attitudes have changed for the better, and they are now more inclined to create jobs than to seek them out. The increase of Women Entrepreneurship in India, quickly seizing the spotlight in the nation's entrepreneurial environment, is one of several good consequences.
While it is encouraging to see more women in business breaking down barriers, it is equally important to ensure that this upward trend is not hindered and that everyone has equal access to chances and resources to quickly make India the largest hub of entrepreneurs and startup ecosystem.
The main factors influencing this growth are the changing socioeconomic conditions of women, the growth of e-commerce, the easier availability of credit and education, etc. Even while the trend is positive, female business owners still have a lot of obstacles to overcome to succeed in their ventures. To connect more than 50% of the population to the enormous entrepreneurial prospects in India, a few obstacles must be addressed, including dealing with misconceptions, biases, and lack of market access.
Barriers to women entrepreneurship in India
There are numerous barriers to women entrepreneurship in India which are mentioned below:
1. Lack of monetary support:
It is well known that women are more likely to have financial difficulties and have less access to loans. The main obstacle to women asserting their claim to their fair part of inherited property is the common perception that a woman's fair share is restricted to her dowry.
In most Indian states, land, property, and ancestral riches are inherited. It is a significant barrier for first-time business owners and women growing up in urban and rural India.
2. India's typical working middle-class women's struggles
The similarities between entrepreneurs and middle-class working women are clear to see. Both are oppressed in the workplace due to a lack of higher education, fighting the war on wage gaps, managing household duties, being a mother to her children, and doing all this while needing to cook the perfectly round rotis.
The chances of a working woman with a mediocre income being able to consider entrepreneurship are quite slim, and most of that industry comprises higher-class people.
3. family constraints
It is projected that women will spend more time with their families. Women are not urged to travel widely to take advantage of business prospects.
4. Unfavorable Situation
Males predominate in society. Many business people prefer to do something other than business with female entrepreneurs. Males typically do not support female business owners.
5. Limited Movement
One of the fundamental issues facing women business owners in India is restricted mobility. They can only travel alone or stay in hotels for business if they are concerned for their safety. Many hotels in India will only let women check in if they're accompanied by a man, too!
Even though many financially independent women have begun to invest in cars, there are still fewer women in India who own motorized vehicles than there are men. The combination of these variables limits the mobility of female company owners.
6. Low capacity for risk
The entrepreneur needs to be capable of accepting some inherent risk to make investments and run a successful business. Women frequently lack financial independence and lack decision-making experience.
They are also risk-averse because they don't trust their judgment. It is gradually changing because more and more women are managing their finances and reducing risks with each generation.
Benefits of women entrepreneurship in India
There are numerous benefits of women's entrepreneurship in India.
1. Economic expansion
Women typically own fewer enterprises or operate them at a lesser level than men do in most nations. More female entrepreneurs in the workforce will lead to more prosperous companies. If more women can launch enterprises that target markets other than those of their male colleagues, they can help the economy flourish.
2. Decrease in poverty
Women entrepreneurs may assist poor women. It will help to alleviate poverty and remove barriers. Women with higher incomes take on societal tasks and encourage independence. Female entrepreneurs are important since they are parents and contribute to the fight against child poverty. They encourage economic growth in this way.
3. Greater Innovation
Women business owners frequently use a double standard. Although they are creative, many do not trust them and view their ideas as dangerous investments due to the possibility of failure. According to statistics, women-owned firms do not fail as frequently as men.
Initiatives taken by Government to foster women's entrepreneurship in India.
There are numerous govt. Initiatives to foster women's entrepreneurship in India:
1. Women Entrepreneurship Platform (WEP)
NITI AYOG introduced the Women Entrepreneurship Platform (WEP) to create a nationwide ecosystem for aspiring young women entrepreneurs. SIDBI has teamed up with NITI AYOG to promote and carry out this effort.
In addition to offering free credit, coaching, finance support for women entrepreneurs, and corporate collaborations, WEP also gives business owners a forum to share their entrepreneurial journeys, stories, and experiences. Entrepreneurs in the ideation phase of their firms can register under the plan and profit from its provisions.
2. Annapurna Plan
It was one of the first programs the Indian government launched in 2000 to improve the situation of women entrepreneurs in India. The Bharatiya Mahila Bank is currently the provider of the program.
The Indian government offers loans up to INR 50,000 to female business owners in the food, beverage, and catering sectors under this program. The best thing is that this loan's interest rate fluctuates with market rates.
3. The Mahila Udyam Nidhi Programme
The Punjab National Bank introduced the Mahila Udyam Nidhi Scheme, designed to aid Small Scale Industries (SSI). By offering hassle-free loans, the program seeks to encourage modernization and technological improvement in these small-scale enterprises.
Under this program, a loan may only be for a maximum of Rs. 10 lacks, and the borrower has ten years to pay it back. That also includes a five-year moratorium. The application for this program is available here. You can fill out the application and deliver it to the closest branch of the Punjab National Bank to apply for the loan. Like SBI, numerous other banks also provide such programs.
4. Bharathiya Mahila Bank Business Loan
Bharatiya Mahila Bank was founded for women who have huge dreams despite having few resources. It provides loans of up to 20 crores to female business owners who want to launch manufacturing ventures.
There is no need for collateral if the requested loan amount is less than Rs. 1 crore. The lending initiative that started in 2017 is still in effect even though the Bharatiya Mahila Bank and the State Bank of India merged.
In conclusion, Despite operating extremely efficient businesses, women in India face substantial financial restrictions when starting and operating businesses. The Indian government has been crucial in helping women-led businesses succeed by providing them mentorship and financial support.
Comments
Post a Comment