Way in which Female Entrepreneurs Can Tackle Financial Hurdles
5 min read | 2 months ago
In your journey as a female entrepreneur, you have probably encountered every challenge imaginable. One of the most significant challenges you may have run into is lack of funding. In India, monetary barriers regularly confront female business owners due to an array of causes - deeply seated gender prejudices, limited capital sources, and low levels of economic knowledge. However, overcoming these barriers is essential if you want to see your business thrive and grow.
In this blog, we will explore some effective ways to tackle financial hurdles and empower female businesspersons. But first, let us begin by understanding the current status of women's entrepreneurship in India.
Women Entrepreneurship in India
According to the National Sample Survey Organisation, in India, over 80% of all businesses are in male hands only, leaving just 14% of businesses led by women. With over 90% of women in business never having borrowed from any financial institution, this is concerning. However, women entrepreneurs have demonstrated entrepreneurial vigor through microfinance business loans and hard work.
Stories of success of women entrepreneurs, their hardships, and how they overcome them inspire us all. It is essential to explore effective ways to overcome financial hurdles. So, let’s take a look at how women entrepreneurs are tackling financial hurdles to take their businesses to great heights.
Build a Strong Financial Foundation
Women entrepreneurs, especially, are in need of laying down firm financial roots to which they can turn whenever necessary. Getting financing, loans, or other financial opportunities requires a good personal and business credit score. This can be achieved by seeking microfinance business loans and paying them off on time.
After achieving a good credit score, maintaining it is key. This involves making timely payments, regularly monitoring your credit report, and ensuring a low credit utilization ratio. Maintaining a solid credit score can open doors to financial support required for growth.
Explore Government Schemes and Grants
he government of India has launched several schemes and grants to support women entrepreneurs. These programs provide financial assistance, training, and networking opportunities to help women entrepreneurs grow their businesses. Some popular schemes include:
Mahila Udyam Nidhi Scheme: Offers financial assistance up to Rs. 10 lakhs for women in manufacturing and services.
Mudra Yojana Scheme: Provides loans up to Rs. 10 lakhs to support small businesses owned by women.
Exploring these government schemes can help women access financial resources for growth. However, it is crucial to research eligibility criteria before applying.
Microfinance Banks
Microfinance banks, like Unity Small Finance Bank, offer viable options for women entrepreneurs seeking capital. They provide microloans for working capital, equipment, and other business expenses. Microfinance banks come with flexible repayment terms, no collateral requirements, and lower interest rates compared to traditional banks. Additionally, these institutions offer training to help entrepreneurs manage finances effectively.
Seek Guidance from Financial Experts
Seeking advice from financial experts can lead to informed financial decisions, covering areas such as budgeting, tax planning, and investment strategies. Financial experts also provide assistance with understanding eligibility criteria for loans and other resources. It is essential to select experts who understand your business goals, and getting recommendations from peers or mentors can be helpful.
Conclusion
Overcoming financial hurdles is crucial for the success and growth of female-led businesses. Building a strong financial foundation, exploring government schemes, and consulting financial experts are all effective strategies. We encourage proactive steps and seeking support from peers to achieve business success. With determination, female entrepreneurs can overcome financial challenges to reach their goals.
FAQs
1. What are some common financial hurdles faced by female entrepreneurs in India?
Female entrepreneurs in India often face challenges like lack of funding, limited financial resources, and difficulty in establishing credit. Microfinance business loans are a helpful option for women pursuing entrepreneurship.
2. How can a good credit score help female entrepreneurs access loans and other financial resources?
A good credit score increases approval chances for loans, as it reflects a reliable financial history.
3. What is the significance of seeking guidance from financial experts?
Consulting financial experts aids in effective finance management and provides access to valuable insights and resources.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
