Today, more women in India own businesses, earn better incomes, contribute to local economies and communities. The rise in female entrepreneurship has had a tremendous impact on the nation’s GDP and its global image, along with significant influence on corporate ecosystems.
Over the past ten years, one of the biggest trends has been the expansion of women-owned enterprises, which will only grow in the forthcoming years. The number of women-owned enterprises and Business Loans for women has reportedly increased 2X.
Factors Responsible for Growth of Women’s Businesses in India
Online sales have significantly aided the growth in women’s businesses. To begin selling things, all they need to do is set up an online store. Women start such businesses from their homes with ease, thanks to online commerce.
Before now, marketing was one of the biggest challenges for all business owners. But today, you can promote your products on social networks like Instagram, Facebook, LinkedIn, and others. Social media networking has greatly helped women entrepreneurs by providing them a platform to share their products and grow their businesses. Because of this, social media platforms are one of the most significant marketplaces for Indian women business owners.
For starting their business, one of the biggest challenges women faced was a lack of funding. Business Loans for Women were traditionally subject to unfair and apathetic eligibility criteria. In addition to several other requirements, they needed a guarantee. But with the development of online lending platforms, it is now simpler and fairer for women to obtain a Business Loan. A woman no longer has to wait for financial assistance from her family or banking institutions. Instead, they can easily obtain funds from a digital lender to launch their business.
Challenges Faced by Women Entrepreneurs In India
Even today, female entrepreneurs face difficulties procuring financial aid, most of which are down to sociological stigmas. Some of them being:
- Women are not considered leaders and will not get better opportunities for leadership in multinational or publicly traded companies.
- Most women entrepreneurs don’t get the required assistance for implementing the business idea, financing, sales force management, selling, branding, and promotion.
- Women business owners are under undue family influence and tend to face challenges related to authoritative attitudes, personal conflict, loyalties, and family relationships.
How Digital Lending Helps Expand Women’s Access to Finance
Today’s digital services present exciting possibilities for improving the lives of women. Consider gold as an example. Since gold is one of the only assets that women may legitimately claim as their own, banks and mindful financial institutions have modified their loan products to provide women the opportunity to put up their assets for getting Business Loans.
The percentage of women actively using digital products and services has increased by 60%. Microfinance institutions assist low-income clients, primarily women, with credit and savings services.
To foster an inclusive economic recovery, cross-sectoral alliances, and digital goods support women-led enterprises. Approximately 8.59 Lakh women owned MSMEs were registered in FY22, compared to 4.9 Lakh in FY21. So, what is an MSME loan? They are small collateral-free loans.
Digital lending has created a great opportunity for women entrepreneurs turned down by traditional lending methods to build and grow their businesses while also encouraging India’s entrepreneurial spirit. Today’s generation knows what an MSME loan is and how to gain from it.
Solutions like mobile apps, wallets, and neo-banking platforms have brought about innovation in accounting, financial planning, payment solutions, and vendor management.
Women entrepreneurs have historically experienced difficulties starting businesses, making money, and using financial services in the formal economy due to cultural norms and other social hurdles.
Together, we can enable millions of growth-oriented women to realise their ambitions and launch a women-driven economic recovery. And in this, Poonawalla Fincorp helps by providing Business Loans for Women without any collateral.