A recent study has been conducted to determine the level of access female entrepreneurs in tier 2-3 cities have to external funding, revealing a staggering 3% are able to obtain such resources. The study has underscored the urgent necessity to address the existing financial gaps in women’s careers, emphasizing the potential for a 35% increase in global GDP if the gender gap in employment is closed. This further emphasizes the importance of enhancing the participation of women in India’s workforce.
The lack of comprehensive data on women entrepreneurs has been identified as a significant challenge in recognizing their contributions to entrepreneurship and gig work. Rajesh Bansal, the chief executive of RBIH, has highlighted the impact of the absence of gender-disaggregated data as a barrier to improving women’s access to financial services.
To combat the detrimental cycle of women-owned businesses not scaling due to lack of funding, the report recommends the provision of additional grants and venture capital funds to women entrepreneurs, as well as the establishment of female-focused incubators.
A report by Tide India, a banking application for businesses, has revealed that nearly half, or 47%, of women entrepreneurs in India’s micro, small, and medium enterprises (MSMEs) face significant challenges in accessing financial credit. The report further disclosed that 95% of the women surveyed lacked awareness of government financial schemes or programmes that could support their businesses, leading them to seek credit through informal channels.
It is evident that limited access to funding severely obstructs the potential growth and success of women entrepreneurs in tier 2-3 cities. The study has shed light on the obstacles that hinder the advancement of women-owned businesses, emphasizing the critical need for targeted initiatives to bridge the financial gap. Addressing these challenges is crucial to maximizing the economic potential of women in the workforce and unlocking their contributions to entrepreneurship.
It is imperative for stakeholders, policymakers, and financial institutions to devise inclusive strategies that enable women entrepreneurs to access the funding and resources necessary for their businesses to thrive. By creating an environment that empowers women entrepreneurs and provides them with the necessary support, we can foster a more equitable and vibrant entrepreneurial landscape in India.