Hurdles for women in scaling up small businesses

Women small-scale entrepreneurs contribute significantly to the economy, but they face many challenges

Small-scale businesses are critical to the growth of emerging economies. They provide immediate large-scale employment and have a higher labour-to-capital ratio.

In terms of GDP, job creation, and trade, women in small enterprises have significantly contributed to overall growth. As a result, the performance of the small-scale industry has a direct impact on overall economic growth.

Women in the workforce have made significant contributions to society. Government agencies, non-governmental organizations (NGOs), and civil society are collaborating more than ever to promote women's education and encourage financial firms to approve and give loans to women entrepreneurs. However, we need to remove barriers to women's entrepreneurship by enacting regulations that promote equal access to funds, prohibit bias, and promote education for women.

The challenges of scaling up

Acquiring business financing is one of the most critical challenges that women face. There are also issues like a lack of technological understanding, raw material availability, and access to a solid vendor base.

Another hurdle is the necessity of property as collateral for a loan; however, relatively few women in India own land, thus limiting their access to banks.

Closing the credit gap is the most critical problem for women even when they, as business owners, are more likely to have a greater turnaround and spend the bulk of their money on the well-being of others, consequently improving their families and communities.

Small-scale businesswomen must seek financial aid when the need arises and get it. Many women lack physical or collateral security in a scenario where they are growing their businesses and increasing their requirements for finance beyond microcredit limits. As a result, many obtain funds through personal networks rather than corporations.

Inadequate awareness

Starting a business requires more than the necessary education or expertise; many other variables must also be considered, especially when dealing with small-scale firms.

Women in rural or semi-urban areas still lack access to meaningful contacts that may help their businesses. A lack of competent advice and assistance may prevent women from starting and progressing in their entrepreneurial activities. There are several government programs beneficial to women seeking business success. However, women in rural and semi-urban regions frequently lack information or understanding of these issues.

A successful entrepreneur of small-scale firms needs to be interested and aware of trends to gain access to innovation.

A healthy work-family balance

Social and cultural limitations impede female market participation more than a lack of financial resources. Combining work and life at home can be difficult for many women.

Women are now obtaining mentorship and advice from people who can help them develop their businesses, create networking opportunities, locate clients, partners and suppliers, and make contacts essential for market access.

(Dr Sunil Shukla is Director General of WeAct)