A latest finding by FinTech company Tide revealed that while access to credit exists for women entrepreneurs, there is also a high degree of informal borrowing. About 52 per cent of women entrepreneurs have access to financial credit, indicating that 1 in 2 entrepreneurs has access to finance, while 47 per cent said they face challenges.
Nearly all, 95 per cent of women say they are unaware of existing government financial schemes or initiatives to leverage for their business. This indicates women are turning to the informal sector for access to credit. Interestingly, about 80 per cent of women agree that tailored financial programmes can make their entrepreneurial journey easy, said the report.
Furthermore, atmanirbhar women business owners think digital literacy is a must have. Around 80 per cent of women recognise digital literacy is an important enabler. Around 51 per cent, or 1 in 2, business owners face hurdles in accessing digital tools for business.
Structured mentoring missing
In India, where many women may not have grown up with the cultural expectation that they should drive financial decisioning, it can be even more of a challenge to personally take up the reins.
The report by Tide highlighted that family is the biggest driver and support for women pursuing entrepreneurs.
Around 31 per cent women want a better future for their family and 28 per cent wish to support their family with ‘additional income’. Approximately 78 per cent rank family as the most important factor when starting a business. The majority, 77 per cent, say that family has been the ‘key factor’ behind their success.
Further peer group fast-tracks entrepreneurial journeys and successes, though structured mentoring is missing. Around 63 per cent women claim to have access to mentorship to guide them in their businesses. However, about 90 per cent cite names of relatives, or close friends/ family network as ‘peers’, indicating lack of structured programmes for women to network and upskill with business know-how, the report said.
One of the biggest barriers to financial institutions supporting women entrepreneurs is the lack of reliable data by gender and region (especially Tier 2 towns and beyond).
The lack of awareness, data and other insights into the trends of women entrepreneurs in semi-urban and rural areas translates into a broader impact where targeted action and support either financial or mentorship can be lacking.
Cultural barriers in Bharat disappearing
Cultural barriers in Bharat are disappearing, while work life balance is a major challenge. Only 13 per cent of women reported cultural barriers to their entrepreneurial pursuits indicating a dramatic shift in societal support for women to become ‘earning members’.
The much talked about urban gripe of poor work life balance resonates with women entrepreneurs from smaller cities, with 72 per cent wanting better support systems, said the report.
Further, women entrepreneurs are vocal for local. With family and community at the heart of the aspirations of women in business, entrepreneurs from Bharat are keen on building their businesses locally.
Around 38 per cent of women feel that accessing the customer is easier, while 31 per cent felt that first mover advantage in the local market gives them a competitive edge in business and talent hunting, the report added.
