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Women entrepreneurs challenges and problems in India

14 Nov 2019

To become a boss you need to start your own company or business which is not a simple thing for any individual. To come up with any plan needs more homework and market study. Once they get some pictures on the business they need to start then comes the location where exactly it needs to be started. Location and the mode of business matters a lot in starting any business as it is the driving force that generated revenue or ROI (Return on Investment).

To start any business there must be a partner who is ready to invest the equal share of capital or the one who can invest his/her knowledge and should be having the same goal and frequency of the partners too should match for the smooth going of the business. And also they need to meet so many constraints and hurdle to successfully start their business. For men, it’s not that challenging to start a business when they get good partners and capital and a favoring environment.

For women, it is a big challenge for them to start a business when the surrounding environment is not supporting. Supporting environment can be

  • investment capital
  • family commitments
  • Competition
  • lack of education
  • risk-bearing abilities
  • raw material undersupplies and adaptability.

Women need to cross more hurdles and have to face more challenges than any men. Below are the challenges facing by women in being an entrepreneur

Investment Capital/Finance:

Capital investment or finance can be called a “backbone of any business” no matter whats the size of the investment. When individual women don’t have minimum capital to invest in the business then they should approach banks for the loans. Any banks including private banks ask for the collateral as a security to provide business loans and in many cases, no women will own any properties in her name to provide it as a collateral. When any individual woman doesn’t have any property in her name to provide it as a collateral to get a loan it stops her from getting financial aid from any government banks, private sector banks or external sources and no banks provide unsecured business loans.

Even if women own any properties to produce them as collateral for the banks to get the loans they will get less loan amount compared to men as they feel that the women are less creditworthy and assume that they may give up in any situation. In such cases, they may need to rely on friends, families or relatives for capitals which in many cases they are inadequate or very less even to start with the initial stages. This discourages her from becoming an entrepreneur and the chances of job creation too will be closed.

Family Commitments:

In India, middle-class families take the lion share in society and women are supposed to take care of all household activity as well as the business or career(if they are working). Taking care of kids, husband, elderly people, and all other household activities has to be taken care which is her first priority and later she has to concentrate on her passion/business/job. In this environment, she loses her patience in what she wanted to do and the chances of stepping back from her dream are more.

In some cases, her education level and husband/families approval & support to start a business makes a big impact If there is a lack of support from family or husband also makes her step back from starting her own business.


Women lack funds for their organizational setup to raise funds to advertise and promote the
business. Parallelly they have to stand strong in the world where competition and an organized sector. In this situation, more women start moving out of their passion and start looking for a decent 9 – 5 jobs.

Lack of education:

Still, in India, women’s illiteracy is taking the major share in rural belts than in urban which is
the main cause of socio-economic problems. Though they have a basic education, the quality of education is very less and they are unaware of technologies, business, and knowledge about the market. When the lacks education, their motive to grow business or becoming an entrepreneur and achieve something in life becomes their low priority. Before motivating them to achieve something in life, the quality of education along with the knowledge of technology and the outside world is a major challenge. We can say the lack of quality of education is one of the major set back for women to become an entrepreneur.

Risk-bearing abilities:

Women in India are grown up pampered. The lack of quality of education and financial
dependencies on the male counterpart reduces their ability to take a risk in running a business. To become a successful entrepreneur, the risk-bearing ability is one of the major prerequisites. Notwithstanding the above issues, deficient infrastructural offices, lack of power, the expense of creation, social mentality, low requirement for accomplishment and socio­economic imperatives additionally keep the ladies away from going into business.

Raw material undersupplies & adaptability:

Some times women enterprises can’t be able to achieve the target of delivering the consignment within a stipulated time mainly because of raw material undersupply. One of the hurdle women entrepreneurs face in running their business is the raw materials supply within time and getting the best deals on it. To get the best deals and discounts one has to visit many suppliers and locations which is out of their operating/living locale. Being a woman with family commitments and other hurdles, this is very difficult for her to mobilize to get the raw materials at the least-cost without compromising the quality is really a very big task and this too will make them drop running the business.

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