Entrepreneurship has become a buzzword in the business scenario, but it comes with its own challenges. It is a harsh reality that these challenges are greater for women entrepreneurs, and they definitely have to struggle more than their male counterparts to get recognized. Due to these challenges, there is a significant gap in the male-female ratio in entrepreneurship. The difference is so substantial that, out of 100 entrepreneurs, only seven are female.
Top challenges faced by female entrepreneurs in India include the following:
1. Dearth of women-friendly sectors:
One of the most significant problems faced by women entrepreneurs is a visible lack of women-friendly business domains. It is a sad reality that men dominate the Indian entrepreneurial ecosystem. It is seen that most women-led domains are low-revenue, whereas men control high-profit sectors such as construction and manufacturing.
2. Lack of institutional and social support:
Another major problem faced by women entrepreneurs is a lack of social support in starting a business. Be it family, peers, or immediate surroundings, all show reluctance towards women, creating a massive shortage of mentorship opportunities for women. The lack of institutional support is reflected in the fact that women don’t receive timely assistance from the relevant authorities.
Also read – Problems of Entrepreneurship in India
3. Poor prospects of funding:
The funding segment in India has massive gender biases, and it is seen that women-led businesses in India massively lack capital access. In fact, several angel investors and VC firms are reluctant to invest in companies led by women. Also, a few financial institutions perpetuate the misconception that women are less worthy of business credit.
Also read – How To Start a Business With No Money
4. Low access to professional networks:
Another major issue reported by women entrepreneurs in their entrepreneurial journey is limited access to professional networks. In fact, several studies prove that most of the robust professional networks are primarily dominated by men, and this makes it much more difficult for women to navigate these spaces. Also, most women miss out on finding ideal collaborators, vendors, and other growth opportunities.
5. Patriarchal pressure:
One of the saddest and most deep-rooted challenges faced by female entrepreneurs in India is the one related to traditional gender roles. In most parts of India, women are expected to do only domestic household chores while being fully dedicated to family-centric roles.
6. Lack of environment:
Entrepreneurship is indeed a long journey that involves significant unlearning, learning, and upskilling. Hence, it is essential to have an environment that allows one to grow while boosting their entrepreneurial spirit. Hence, having access to the appropriate environment is necessary.
7. Less mobility:
Another big challenge faced by women entrepreneurs in India is restricted mobility. They are either not allowed to travel alone or lack the confidence to do so. Though many independent women are investing in vehicles, the ratio of women to men who own motorized vehicles in India remains much lower.
8. Lack of adequate education:
Another significant challenge faced by female entrepreneurs in India is the lack of adequate education. It is no longer a secret that education for women in India is not given much priority, especially in low-income groups. Women are made to sacrifice their education for men. This lack of knowledge proves to be the most significant hurdle to the professional understanding and development of women.
9. Low risk-taking abilities:
Given the environment, it is clear that females tend to exhibit lower risk-taking. Not being financially independent is the biggest culprit behind this challenge. All their decisions are, in a way, dependent on men, and this is a big confidence killer. Ultimately, women are unable to develop their risk-bearing abilities, which poses a significant challenge.
10. The balancing act:
Women are often overburdened with both family and professional responsibilities when they choose to walk the entrepreneurial path. The expectations of a married woman, especially one with kids, are so unrealistic that they are bound to sacrifice their professional lives for family. The challenge is sometimes intentionally made so high that her mental health gets compromised, which eventually forces her to quit.
11. Limited technology access:
Access to digital platforms is a must for anyone who wants to make it big in the entrepreneurial world. Women often have limited access to vital resources, thereby limiting their growth prospects.
12. Legal barriers:
Navigating the regulatory and legal environment, especially in India, is quite a challenge for women entrepreneurs. Complying with legal requirements is not easy without the backing of credible legal experts. Further, this creates operational difficulties, making it hard for women to sustain the business.
Key Takeaways!
The problems faced by women entrepreneurs are numerous, and the best way to address them is to design a nurturing entrepreneurial ecosystem. The system must provide adequate access to all essential resources, with proper institutional support, if women are expected to develop the characteristics of a successful entrepreneur. Another great way would be to seek business coaching for growth and development. So, wait no longer and pledge to work on self-growth; feel free to seek help from reputed business growth coaches like Dr. Ameet Parekh for a positive shift in the situation.
Frequently asked questions (FAQs):
What is the top problem faced by women entrepreneurs in India?
Answer: Women entrepreneurs in India come across a variety of challenges unique to their gender. The biggest challenges include a lack of financial support and insufficient access to economic resources.
Why are women entrepreneurs in low numbers in India?
Answer: Some of the biggest reasons for the lower number of women entrepreneurs in India are:
- Rigid social standards
- Lack of financial access
- Low education and training
- Restricted networking opportunities
Highlight the prime challenges faced by female entrepreneurs in India
Answer: The greatest barrier to women’s entrepreneurship is limited access to funding. Due to persistent biases and stereotypes, core female-led businesses often struggle to secure investment or loans.
