In India, women’s entrepreneurship is on the increase, with more and more women striking out on their own and launching their own firms. Despite the rising number of women entrepreneurs, major restrictions remain that prohibit women from completely realizing their potential and contributing to the country’s economic success. This blog will look at the present condition of women’s entrepreneurship in India and how we can use the gender dividend to create more gender equality and economic development.
Indian Women’s Entrepreneurship: Present Situation
India boasts a sizable population of educated and competent women. Nonetheless, the nation has poor gender equality, with major impediments to economic, medical, and educational possibilities for women. India placed 140th out of 156 nations in the World Economic Forum’s 2021 Global Gender Gap Report for gender equality.
Women are starting more businesses in India despite these obstacles. According to research , there will be 38 million women-owned enterprises in India by 2025, growing at a 10% compound annual growth rate. In comparison to the existing estimate of 13.5 million women-owned firms, this represents a huge growth.
The number of female entrepreneurs is rising, but their enterprises are often smaller and less successful than those run by males. In India, women-owned firms are typically concentrated in low-growth industries, according to research by the International Finance Corporation. They also face a number of difficulties, such as restricted access to money, markets, and technology.
India’s Barriers to Women Entrepreneurs
Women face a number of obstacles that keep them from achieving their full potential and making an economic contribution to the nation. Among the main obstacles are:
Cultural and social norms: Women in India experience cultural and social norms that prevent them from starting their own enterprises and participating in the official labour force. Traditional gender roles, the expectation of marriage and motherhood, and a lack of mobility and resources are a few examples of these norms.
- Restricted Access to Capital: It is extremely difficult for women business owners in India to obtain msme financing, especially from official sources like banks and financial organizations. This is caused by a number of things, such as a lack of collateral, poor financial literacy, and prejudice on the part of lenders.
- Restricted Market Access: Women entrepreneurs in India also have difficulties in gaining entry to markets, particularly in sectors where males predominate. This is caused by a number of things, such as constrained networks, a lack of market knowledge, and prejudice.
- Restricted Access to Technology: Women company owners in India also struggle to get access to technology, which might restrict their capacity for innovation and business expansion. This is brought about by a number of issues, such as low levels of digital literacy, a lack of accessible technology, and inadequate infrastructure.
Taking Advantage of the Gender Dividend
We must remove these obstacles and advance more gender equality if we are to fully realize the potential of women entrepreneurs in India. This entails fostering an atmosphere that encourages female entrepreneurs and offers them the tools they need to be successful. The following are some crucial tactics for utilizing the gender dividend:
- Enhancing Access to Capital: We must provide women entrepreneurs additional opportunity to obtain financing in order to solve the issue of limited access to capital. As part of this, specific loan products for women are developed, financial literacy classes are offered, and women-led investment funds are encouraged to emerge.
- Access to Markets: We must provide women entrepreneurs additional opportunities to network with customers and suppliers in order to overcome the issue of limited market access. This involves giving marketing and sales training, fostering networking, and assisting in the growth of online markets.
Arth’s Support for Women’s Empowerment
Organizations like Arth are assisting in using the gender dividend and releasing the full potential of India’s female workforce by boosting women’s entrepreneurship. Women entrepreneurs in India are eradicating hurdles for future generations of women and questioning traditional gender norms in addition to providing jobs and economic prosperity.
To guarantee that Indian women entrepreneurs get the assistance they need to flourish, there is still considerable work to be done. This involves broadening financial access, enhancing networking and training opportunities, and combating gender-based discrimination at work.
In conclusion, women’s entrepreneurship in India is a significant driver of both social and economic advancement. Women entrepreneurs have access to the tools and assistance they need via organizations like Arth, which also helps to create a more prosperous and inclusive society.