In recent years, India has made great progress in encouraging entrepreneurship, and more women than ever before are pursuing careers in this industry. Nonetheless, there are still a number of obstacles that Indian women entrepreneurs must overcome to succeed.
According to the Mastercard Index of Women Entrepreneurs, only seven of India’s 100 entrepreneurs are women. As per the Google-Bain analysis, women only own 20% of the nation’s enterprises, while the World Economic Forum’s 2021 report also reveals a staggering 72% gender imbalance in India’s workforce.
Indian women entrepreneurs deal with a number of issues that are specific to their gender. In this article, we will cover 8 common issues that Indian women entrepreneurs deal with when launching their businesses.
Problems Faced by Women Entrepreneurs in India
Insufficient Institutional and Social Support
Families, friends, and immediate ecosystems do not provide the social support that most female entrepreneurs need to launch their businesses. One of the biggest issues facing women entrepreneurs in the nation is the absence of mentorship from the business community.
Despite initiatives to support female entrepreneurs, many women do not obtain prompt advice or assistance from authorities. Their self-esteem and willingness to take risks are negatively impacted by a weak support network; according to McKinsey & Company research, 40% of female entrepreneurs say they feel unsupported, which has an immediate effect on their capacity to grow their businesses.
Lack of Education
Having previous experience managing a profitable firm is one of the most important qualifications for a modern entrepreneur. The entrepreneur should have a business management degree or professional experience working in the industry in question to make up for their lack of business management knowledge.
Sadly, women’s education in India does not receive the attention it deserves. India’s female literacy rate is 70.3%, while the male literacy rate is 84.7%, according to the National Statistical Office (NSO). As a result, many aspiring female business owners lack the education necessary to operate a profitable company.
Limited Capacity to Take Risks
A certain amount of intrinsic risk must be borne by the entrepreneur in order to invest in and manage a profitable business. Women are frequently less financially independent and lack the experience necessary to make their own judgments. A 2020 Harvard Business Review study found that only 30% of women are confident about taking risks with their investments.
Tough Competition
Businesses now compete fiercely with one another due to the current market conditions and economic climate. In an already competitive environment, women entrepreneurs in particular encounter additional challenges as they work to establish their value.
The magnitude of these obstacles is demonstrated by statistics, which show that women only lead 17% of multinational corporations and that female entrepreneurs have a 30% lower chance than male entrepreneurs of obtaining venture capital funding.
Social Construct
Gender roles have been strictly defined as a result of the nation’s long-standing patriarchal heritage. Women have been limited to supporting roles, and it is not expected of them to assume leadership roles in the workplace.
Even while this perspective is evolving, it nevertheless frequently leads to disputes and rifts in the social lives of aspiring female business owners. According to a Grant Thornton analysis, women only run 19% of companies in India, and they only occupy 9% of senior executive roles in the corporate sector.
Security concerns
Crime against women has increased as a result of the weak state of law and order. For female entrepreneurs who require mobility to oversee their commercial endeavours, the unfriendly and hazardous atmosphere presents significant obstacles.
In fact, according to a McKinsey Global Institute survey, 70% of women in emerging nations worry about their safety when they travel alone for work. This makes it difficult for the ladies to travel to many places by themselves, and occasionally they need a man’s presence just to be safe.
Poor Funding Opportunities
As unjust as it may seem, there are significant gender inequalities in India’s financial landscape. Due to investor prejudice and other issues, women-led enterprises in the nation do not have access to funding. According to a survey by Innoven Capital, just 12% of all startups that got investment in 2019 have at least one female founder.
Banks and other financial institutions view women as less creditworthy, and many venture capital firms and angel investors are hesitant to fund companies run by women. Additionally, a lot of Indian women do not have assets or property registered in their names, which causes issues when they ask for private finance or collateral loans.
Juggling Family and Business Responsibilities
In Indian society, family is frequently viewed as a woman’s extension. Married women are supposed to become mothers at a specific age and be heavily involved in raising their kids. Additionally, this forces the young mothers to put their families first and take a hiatus from their jobs.
Managing a business is a tough job that frequently causes women to struggle with their family obligations and even feel bad about putting their business first. In fact, according to a National Bureau of Economic Research survey, 43% of working women say they feel bad about putting their jobs before their families.
Conclusion
Although the proportion of Indian women entrepreneurs has increased, there are still important issues that require attention. Among other challenges, women entrepreneurs encounter social norms, prejudice, restricted access to funding, and an absence of supportive ecosystems.
A multifaceted strategy will be needed to address these problems, including laws and initiatives that give female entrepreneurs more access to funding, training, and mentorship. In addition to gaining more economic empowerment and independence, women entrepreneurs may help India’s economy grow and thrive by removing these obstacles.
