Challenges in empowering women entrepreneurs | Fusion - WeRIndia

DBS Bank India recently released the third report in its ‘Women and Finance’ series. It illuminates the challenges and opportunities faced by self-employed women in India.

The survey, conducted in collaboration with CRISIL, involved 400 women in 10 major cities. The report offers insights into their business journeys, funding sources, and sustainable practices.

A key finding from the report is that 65% of women entrepreneurs have not taken business loans.

Instead, 39% rely on personal savings to fund their ventures. Of those seeking financial support, 21% prefer bank loans.

However, many entrepreneurs, including over 25 per cent of women, secure loans by using personal property or gold as collateral, indicating a cautious investment approach.

Notably, 64% of respondents who use gold as collateral also invest in safer options like savings accounts and gold.

The report also highlights a gap in awareness of government schemes designed to support businesses.

Only 24% of respondents were familiar with such schemes, and 34% had not utilised any government assistance for their ventures.

This underscores the need for better awareness and education about available government support.

In terms of banking products, 39% of women entrepreneurs use cash credit (CC) and overdraft (OD) facilities.

Competitive interest rates and flexible repayment terms were key factors influencing their choice of bank.

Beyond financial products, many entrepreneurs expressed the need for mentorship (26%) and support in navigating government schemes (18%).

Digital payments are on the rise, with 73% of women entrepreneurs preferring to receive payments through digital methods like UPI.

UPI leads as the most-used mode for both receiving (35%) and paying (26%) business expenses.

However, cash remains essential for payroll and operational costs, used by 36% of respondents.

Encouragingly, 76% of the respondents have adopted sustainable business practices, with 52% implementing sustainability policies in their businesses.

These efforts include energy conservation, waste reduction, and gender diversity on company boards, demonstrating a strong commitment to both business growth and environmental responsibility.

Image Credit: PUJADAS211, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Women_Transforming_India_Awards.jpg