4th International Research Conference on Entrepreneurship Women Entrepreneurship: Issues and Strategies for Financial Aid

Author: Institute Affiliation: Pratibha Trivedi (PGDM, Final Year) Prof. Rabiya Jidda (Faculty – Human Resources) Guru Nanak Institute of Management Studies

Abstract Women owned businesses are highly increasing in the economies of almost all countries. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in the society. With the advent of media, women are aware of their own traits, rights and also the work situations. The glass ceilings are shattered and women are found indulged in every line of business from papad to power cables. Empowering women entrepreneurs is essential for achieving the goals of sustainable development and the bottlenecks hindering their growth must be eradicated to entitle full participation in the business. Women in India are facing many problems to get ahead in business. This paper mainly focuses on funds (through financial institutes) as hurdle for most of the women entrepreneurs. Almost all public sector banks run special schemes to fund women entrepreneurs; yet it proves to be difficult for women to acquire loans easily. This is partly because of the mindset of bank officials who believe that women will have to run that extra mile to market their products, making it hard to make decent sales. Low awareness about these schemes is another reason for their slow uptake. The research paper aims at exploring various schemes offered by nationalized banks, challenges that women entrepreneurs face when it comes to avail funding and tips on how to make the going easy. Keywords: Women, Entrepreneurship, Empowering, Risk, Funds, Schemes, Nationalized Banks, Challenges

Introduction Entrepreneur is defined as the “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Start-up Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations. “Women Entrepreneur” is a person who accepts challenging role to meet her personal needs and become economically independent. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing values

financial assistance from public and private institutions and also the environment suitable for women to establish business units. age 38.in both family and social life. has her parlour which she is running in rented place. To a certain extent. They are not fully aware of the changing market conditions and hence can effectively utilize the services of media and internet. rights and also the work situations. attitude to take up risk and behaviour towards the business society by shouldering the social responsibilities. They are flourishing as designers. although women entrepreneurship is a growing trend. The glass ceilings are shattered and women are found indulged in every line of business from papad to power cables. exporters. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators. garment manufacturers and still exploring new avenues of economic participation. The family members and the society are reluctant to stand beside their entrepreneurial growth. With the advent of media. Only 8 % of overall women entrepreneurs do paint a sorry picture [Source: Entrepreneur-Sept. women lack confidence in their strength and competence. loans. schemes etc. publishers. Only few women are able to manage both home and business efficiently. c) Market-oriented risks – Stiff competition in the market and lack of mobility of women make the dependence of women entrepreneurs on middleman indispensable. But the Indian women entrepreneurs are facing some major constraints like – a) Lack of confidence – In general. d) Motivational factors – Self motivation can be realized through a mind set for a successful business. This can facilitate women to excel in decision making process and develop a good business network. Government policies. b) Socio-cultural barriers – Women’s family and personal obligations are sometimes a great barrier for succeeding in business career. Constraints faced by women: In India. interior decorators. . this situation is changing among Indian women and yet to face a tremendous change to increase the rate of growth in entrepreneurship. e) Knowledge in Business Administration – Women must be educated and trained constantly to acquire the skills and knowledge in all the functional areas of business management. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas. devoting enough time to perform all their responsibilities in priority. To relate this with one of the women entrepreneur Maria D’souza. Kalina. and due to lack of fund she is not able to do so.Women in advanced nations are recognized and are more prominent in the business world. Many business women find it difficult to capture the market and make their products popular.2010]. She wishes to have her own parlour. the entrepreneurial world is still a male dominated one. f) Awareness about the financial assistance – Various institutions in the financial sector extend their maximum support in the form of incentives. As she is also not aware about loan facility provided by banks especially for women. Other factors are family support. women are aware of their own traits. Even then every woman entrepreneur may not be aware of all the assistance provided by the institutions.

The region has lately recognised the importance of entrepreneurship for the economic development of the country and to create competitive advantage. Highly educated. trained and used for various types of industries to increase the productivity in the industrial sector. A study by Nic Paton (2006) (Global Entrepreneurship Monitor). skill and the purpose of the training program. Such programs are really useful to new. One of the problems is that it may be easy for a bank official to give a larger loan to a man compared to smaller loans to a . women are not enterprising and dynamic to optimize the resources in the form of reserves. LITERATURE REVIEW Research by Viju Mathew and Mary Kavitha (2010). institutions. Event Management. In spite of the mushrooming growth of associations. The other terms and conditions of the schemes are similar to consumer loans. there are several bottlenecks as well. h) Identifying the available resources – Women are hesitant to find out the access to cater their needs in the financial and marketing areas.000 people in 35 countries has found that. Food. Tourism industry. based on duration.g) Exposed to the training programs . Moreover. the sanction of the loan also depends on a case-to-case basis on the entrepreneur and the bank officer she approaches. rural and young entrepreneurs who want to set up a small and medium scale unit on their own. Challenges: A practical picture Though a number of credit schemes are available for women. studied more than 100. The unexplored talents of young women can be identified. fruits & vegetable processing. The first major problem is that while there is a lot of discussion on empowering women and promoting women entrepreneurs. a gender gap nonetheless exists for entrepreneurial activity across the globe Women entrepreneurs are just as likely as men to seek out new opportunities. take risks and network with other entrepreneurs – yet nevertheless find themselves lagging behind their male counterparts when it comes to entrepreneurial activity.Training programs and workshops for every type of entrepreneur is available through the social and welfare associations. the more difficult it is to get loans. The additional business opportunities that are recently approaching for women entrepreneurs are: Eco-friendly technology. IT enabled enterprises. in practice there is a major gap between policy and practice. A desirable environment is necessary for every woman to inculcate entrepreneurial values and involve greatly in business dealings. the involvement of women in the economic development of Middle East through micro-enterprises was very less due to the socio-cultural restriction in the Middle East countries. assets and mankind or business volunteers. The higher the loan amount. rather than dependent on wage employment outlets. these bank schemes only provide a minor relief in terms of interest rate and at times on collateral. Herbal & health care. and the schemes from the government side. Besides the project report. Interior Decorators. Fashion Industry. technically sound and professionally qualified women should be encouraged for managing their own business. while women entrepreneurs often exhibit patterns of behaviour similar to those of men.

material (cream. She had already planned everything and worked according to her plan. After 7 years she is able to purchase a flat for herself in miraroad. Almost all public sector banks have special loan schemes for women entrepreneurs. the theme village is a major tourist attraction in Lucknow and has given a platform to several rural artisans and sculptors. an entrepreneur who has struggled and reached this stage. to grant her a loan of Rs 1 lakh. They faced a lot of problems as they were artists. would be a viable business proposition and that she would not default on her loan. Motivations to start a business include economic independence. Kumar had a hard time convincing bank officials that Kala Gaon. comb. She is a drop out from school but had done beautician course. her dream venture.000 per month through her own outlet that she plans to expand in the near future. Today. Neeta Kumar of Kala Gaon says. A woman mostly starts on a small scale. furniture (dressing table. Singhal initially found it difficult to convince banks that she would be able to market her products and run a profitable venture. where a woman wants to expand and is in need of a loan. This is obviously not enough. It took her more than one -and-a-half years to get a bank loan. tools (scissors’. Besides.000 to 35.woman because many smaller loans mean more paperwork. This is how Saroj ben showed courageand managed to overcome the difficulties. where she has had a savings bank account for many years. small and medium sized . chair. After 2 years she could buy a room for her parlour and they yet continued with their family business of lamps. family welfare. Unlike family-owned or male run businesses. a jewelery designer. this is their seasonal business. A bank even said why don’t they build malls instead? When Neeta Kumar. there is a need to sensitize bank officials. she manages to sell jewellery worth Rs 30. At that stage. This was the only parlour in khumbharwada charges were very normal Saroj ben could make her profit well. Story of Saroj ben who is 48 yrs. she faces difficulty while accessing loans. she managed to convince Canara Bank. and clutches). Saroj ben also had same kind of work where she use to bring the diyas (lamp) colour them decorate them and sell to shops. Take the case of Kavita Singhal. old with 2 children is quite common. Eventually. Though her family was supportive of her decision to enter this trade. decided to set up an artificial village in the outskirts of the city. she was in need of funds to start her own venture. she mortgaged gold got around 30 thousand. mirrors). she rented a room near to her home. Today. it took her a year-and-a-half to manage funds for her project. While running from pillar to post with her project report in tow. She belongs to a family that has been in jewelery designing for years. she decided to start ladies parlour to acquire some extra income. Example of women entrepreneur is not aware about the loan and their scheme. etc). Her ordeal finally came to an end in the spring of 2006 when she threw open the gates of Kala Gaon supported by a Rs 60 lakh loan from Punjab National Bank. this lady was not educated but had a vision. and an emerging clientele. The initial requirement was a place for shop. a 41-year-old entrepreneur from Lucknow. they give you only 10% more of their previous year’s turnover. but this business could not generate enough money to sustain their life. lotion. She stays in dharavi an area known as khumbharwada most of the people there are khumbhar’s [Potters] who make pots and diya of various type and design and supply it across Mumbai. It again happens at the growth level. So at that level. But low awareness and a passive mindset ensure that there are very few takers. Her saving was not enough to support her dreams.

According to the bankers.” The schemes mostly give concession on interest rate of approximately 0. empowers women in their household. but the terms and conditions are much favourable. she should have a minimum of 50% ownership in the company. the assessment is made in the same way as other loans. bolsters a struggling economy. and makes them cultural brokers in society. “When a woman opts for the bank funding route. the benefit of such schemes being that preference is given to women.25 to 1%. We have spoken to number of women entrepreneurs during the course of research and found that there is a common thread linking most. depending on the loan amount. The procedure for applying is similar to other loans.women's enterprises are shorter-term products of cultural change focusing on upward social mobility for their families. who think the risk is worth taking or those who belong to the lower-income group and are interested in starting a business for survival. especially enterprises owned by women. Institutes or NGO’s who conduct development program or workshop for these women say “Most of the women who come to women entrepreneurship workshops are either from wellto-do-families. if not all of them. . A typical woman entrepreneur belongs to two broad categories — • • She is either from a financially secure background and is willing to take risks with her own venture or She is from an economically weaker background and wants to start an enterprise to sustain her family. Entrepreneurship impacts the marketplace. Most of the nationalized banks in India have such schemes and also something called as the single-window coordination facility wherein one department will handle all the linkages required for getting the loan. For a woman to benefit under such a scheme.” Bank funding: Schemes and advantages Table No: 1 Some Schemes for Women Entrepreneurs Bank Scheme Bank of India Priyadarshini Yojana Canara Bank CAN Mahila Central Bank of India Cent Kalyani Dena Bank Dena Shakti Oriental Bank of Commerce Orient Mahila Vikas Yojana Punjab National Bank Mahila Udyam Nidhi Scheme Punjab & Sind Bank Udyogini Scheme State Bank of India Stree Shakti Package State Bank of Mysore Stree Shakti SIDBI Mahila Udyam Nidhi Tamilnad Mercantile Bank Mahalir Several nationalized banks in India have special schemes for promoting entrepreneurship.

retail trade. At Canara Bank.1 For example. Dena Bank gives a concession of 0. Zonal Office. Dena Bank under the Dena Shakti scheme promotes women entrepreneurship by funding a number of activities. “Only hypothecation of assets created out of the bank’s finance will be taken as security. In her case. under the Priyadarshini scheme of the Bank of India (BoI). Under the scheme.50% on retail banking that includes several loans like personal loans. The counselling cells help provide a more realistic view of the business as they often give references of similar businesses and the issues they faced while starting up. the concept etc. micro-credit. granted her a loan under the scheme. education and housing. the cell also provides skill training. She says. She says that she had participant at the Business Baazigar reality show on Zee TV that was aired three years back. Then it will be processed for information such as what kind of business you have applied for. the concept was very fresh and she was able to provide a guarantor for the loan amount. the loan ceiling is described as follows. a bank source revealed. The bank’s website states. “The maximum ceiling limits that can be considered for financing to women beneficiaries under this scheme will be as per the directives of RBI stipulated for various sectors under priority sector such as loans up to Rs 20 lakh under retail trade. Dena Bank has a target of approximately Rs 1. micro and small (manufacturing and service) enterprises. Rs 20 lakh under education and housing and Rs 50. for women under various schemes in the Delhi circle. the loan amount was small. disbursed approximately Rs 81 lakh to women entrepreneurs in 37 accounts. According to VK Bansal. “Applying under these schemes is similar to applying for other schemes.” Considering the fact that a bank has to disburse 5% of the previous year’s adjusted net bank credit (ANBC) to women under all schemes. If we find it viable then we go ahead with the loan. Some loans also provide relief in terms of collateral security.” The concession in the interest rate is also extended to other consumer loans. Her idea was one of the favourites of a judge. counselling and at times avenues for marketing their products as well. As per the bank’s website. The bank. Example: Vinnie Chaddha of Reboot Shoe Laundry advocates the Dena Shakti scheme. OBC is one of the banks that have reached its target of . Take for example. a senior bank official said. You have to submit an application along with the details of your business.185 crore. small enterprises. During the last financial year. the scheme covered only the manufacturing sector. knowing somebody helped to speed up things. Chief Manager. An added advantage is that some banks such as the State Bank of India (SBI) and Canara Bank have consulting cells for entrepreneurs.25% to 0. bank was quickly offered her loan of Rs 3 lakh. BoI.Table no. besides consulting. she was quick to reply.” When contacted. the concession on rate of interest varies from 0. according to a source. no collateral security is required up to Rs 10 lakh and in the case of small-scale industries (SSI) no collateral security is required for up to Rs 25 lakh. but now has been extended to agriculture and allied activities.000 under micro credit as well as the bank’s specific schemes circulated to branches/offices from time to time. During the last financial year. the bank disbursed Rs 489 Cr. The entire loan procedure took just about a little more than a week’s time and around five to six visits. Earlier. the Chandigarh branch of Bank of India. that funding depends on a number of things such as the loan amount. so judge himself introduced her to Dena Bank. was convinced by the idea. what is your own contribution in this project etc. Oriental Bank of Commerce’s (OBC) Oriental Mahila Vikas Yojana. On being quizzed whether. whether you have the experience or not.25% on interest rate. Similarly.

To understand the attitude of banks towards women entrepreneurs in need of financial aids. Research Methodology Sources of Data: Secondary data sources such as books. Sample was taken from Mumbai. Table No: 2 What women say Not aware of special schemes What banks say Many women are usually silent partners. sample design consist of women entrepreneurs Sample size taken was 25 women entrepreneurs. Canara Bank and Punjab National Bank to name a few. A questionnaire was designed to understand the level of awareness and the nature of difficulties faced by women entrepreneurs. 2. especially women. The questionnaire included 16 items which were a mix of open ended as well as closed – ended questions. Other nationalized banks with special schemes for women entrepreneurs are State Bank of India. To identify the challenges and issues faced by women entrepreneurs with special reference to financial assistance. Primary data sources included a survey which was conducted in Mumbai region. journals and websites were referred to arrive at an indepth understanding of various issues and challenges faced by women entrepreneurs. Objectives of the Study 1. 3. Often do not get what is promised Have special cells for helping entrepreneurs. Besides.disbursing 5% of the previous year’s ANBC. This study was part of non-probability sampling called as purposive sampling or judgmental sampling . Role of banks. The process is too time consuming and Not many women come seeking loans for their requires far too many visits to the branch start-ups. Aspects covered in the questionnaire included: Financial Source.25 to 1% in interest rate is Sceptical whether women will be able to market not worth the trouble their products and services. A relief of just 0. magazines. included just to get the benefit. Constraint faced. Expansion plans. the bank is also actively engaged in providing micro-credit by providing doorstep services to rural women. To find the awareness of the various schemes for financial aids provided by banks. Sufficient financial assistance.

setting your own salary. 3rd important factor on the list was hobby. and of course . these women converted their hobby their passion into business which is fair enough as they do have liking and also have created. values were calculated for each of the components and then recorded. Suzy Dafnis who heads the group also mentions that he has noticed many women’s who leave the corporate world. The objective of The questionnaire was designed to collect data from respondents with regard to their fund avenues for their business. to find the awareness of the various schemes for financial aids provided by banks and to understand the attitude of banks towards women entrepreneurs in need of financial aids. Figure: 1 The survey found that one of the main reasons for women to start their business that they have experience in the relevant field (40%). After the data was collected. working around raising children. utilising your creativity to create something new.financial freedom. and start their own business for the reasons which includes: freedom to choose work hours and work location. . savings and consumption patterns both before and after they had venture into entrepreneurship. being your own boss. This questionnaire majorly focuses on start-up and expansion finance for the business and difficulties faced during this process/phase. (Refer figure: 1) Similar research was carried out by Australian Business women network.Results & Discussion this paper was to identify the challenges and issues faced by women entrepreneurs with special reference to financial assistance. the second top reason is venture new field of opportunity as the earlier one could be saturated or new one venture has more chance of growing. based on the percentages.

As the respondents are from different field and different segment of the society. finding the right contact. There are women who are aware about bank providing loan for women. and environment vary for these entrepreneurs. (Refer figure: 2) Figure: 3 This question was created to know the awareness of the women regarding bank facility provided to women entrepreneurs.e. hence qualification. 2% this shows that women don’t identify family and work life balance as challenge. family support. 10 critical factors evaluated and identified as challenges faced by women entrepreneurs were listed in questionnaire. management skills. experience.Figure: 2 As per the data collected. . family and work life. lack of information. start up finance. and gender discrimination and last but not least others. Major factor creating problem for women was start-up finance which is 39 % followed by lack of management skills and lack of information as 12% and 10 % respectively it was amazing to note that family and work life balance was rated as second least problem i. those factors are self-confidence.

there are five major reason that discourages women to approach bank for their business.awareness rate is 64%. this is not appreciating figure were only 28 % of female are aware about the scheme and this female are the one who are actually borrowing loan from banks hence they are aware about the schemes and rest 72% are not aware whether bank has what kind of schemes. they have become conscious about various schemes which they can opt for. (b) Not eligible for bank loan (c) Huge fund not required (d) had enough fund for business (e) others. these factors are (a) Not aware about the scheme. (Refer figure: 3) Figure: 4 Even though women are aware about bank providing loan for women but they do not approach banks in fact they are not aware about the loan schemes. only 28 % women are aware about the scheme. (Refer figure: 4) Figure: 5 According to survey. these women are not much educated and they actually do not fall in the category of customers who can use facility provided by banks. 36% women are not aware about bank providing loan for women entrepreneurs. and how can be these schemes prove beneficial for development of women owned business. interest rate that banks provides and compare rate provided by different banks. Majority of the women were not aware about the schemes (45%) while discussing about awareness of the . thus can could that interest of respondent toward financial aid for their business is growing. they have become more enthusiastic to venture new source.

or that they have good customer service or either they have promoted their scheme through advertisements and promotional activities. this loan can be then from any sources either from moneylender. Next category were the women who had enough funds to finance their business(8%). This may be due the high customer data base that these banks have has promoted themself well in the market. women who opted for this option were generally occupying the small size business which does not call for huge funding. To Start any business there is requirement of huge finance. Hence maximum respondent (75%) opt for loan. Bank of India. Where else (25%) female do not take loan for their business. these are the women from upper class of the society. they may have enough fund for their business or either they do not have that huge requirement of the fund. Bank of Baroda and Dena bank • • • Scheme from Canara bank i. or they are not comfortable with bank procedures.e. Can Mahila scheme is one of the favourite scheme of these women entrepreneurs. Other reasons were that huge fund was not required (8%).scheme they mention that they have not heard of about theses scheme. Bank of Baroda and Dena bank are also well known. relative or bank. (Refer figure: 6) . (Refer figure: 5) Data shows that among the various schemes available in the market the scheme which on top of mind of these women were scheme from canara bank. this is either startup finance or loan for expansion which will help these women to do the business. or the female who were working initially and were ready with their saving to invest in their business. Figure: 6 Data shows that 1/3 of the sample size have taken loan for their business. it can be concluded that banks are not doing advertisement of this schemes on high scale. 6 out of 11 female opt for or are aware of Can Mahila scheme Schemes from Bank of India. sourcing of this huge finance is little difficult but not impossible. Women who are in category of others (8%) are either not in the favour of taking the loan from bank.

in addition to this womens those who don’t take loan are 25%. as they do have to keep some kind of collateral for this finance. maximum of them approach banks for their loan i. Research done by Myers. Jennifer. as the loan obtained from relative are generally unsecured loan and without any process let it be the formality of documentation.(d) Bank not cooperating in the process. Next majority goes to Moneylender and others securing 4% each. providing collateral or disbursement of loan. (e) Others. around 32% of women entrepreneurs take loan from other sources. Next major category is relatives (24%). revels that 75% of women take the loan depending on the bases of their relationship with source. 40% other than banks next second highest number goes to relatives and then moneylenders and then others. Apart from this high interest . and if process is not timely executed if will be redundant. this will delay the whole plan.e. and our study shows that these women have major source from bank that is 40%. (Refer figure: 7) Figure: 8 If we analysis the data carefully its states that 40 %of female take loan from bank. 57% of women don’t take loan from bank reason for same are as follows (a) Poor service provided by bank (b) Interest rate (c) Time consuming process (documentation).Figure: 7 Data shows that people those who are taking loan. 24% Respondent say that process of getting loan is time consuming. Women of low income group take loan from moneylender. we can conclude that bonding between customer and bank is developed well.

transfer of cash or cheque. Short term. buy equipment or increase working capital. attain their vision. Poor service of bank was third major reason poor service includes service provided by bank in normal terms. to increase the fixed assets. Bank can divided this loan inot three major category i. similarly Punjab national bank and Bank of India stand 3rd and 4th respectively.1. intermediate and long term loan.e. When there is requirement for start up finance they opt for long term loan as it used for establishing the business.(Refer figure: 9) Period for loan: The maximum amount of loan sanctioned varies from bank to bank. still is far away from Dena bank difference is of 36% .5% .(Refer Figure :10) . money lenders and others. respondents say “difference in the interest rate is hardly 0.rate was rated second most important reason for respondents to not opt for bank loan. While many respondent also opt for short term and intermediate loan so that they can use it for short term working capital or to build inventory. These 75% respondent take loan to accomplish their goal. maximum tenure provided by bank is generally 5 years. Reason for Dena bank to be favourite one was mentioned the time duration taken by the bank to give the loan is less and process is also very customer or we can say women friendly. for related business acquisitions and expansion taken for the long term. relative. like account facility.(Refer figure: 8) Figure: 9 According to the data available female prefer to take loan from Dena bank (48%) and the second preferred bank for the loan is Canara bank scheme called as can mahila (12%).e.5 % which does not attract women’s towards bank loan”. Figure: 10 Survey says that 75% of respondent take loan 40 % from bank and rest from the other sources i.

(Refer Figure No: 11) Figure: 12 . loan during start-up period is common. generally to acquire new project.Figure: 11 Data reveals maximum women take loan once percent is quite high i. etc. This cost can be later analysed and worked out. logistics. labour charges. process cost. 56%. Hence. or to maintain the old business. normally huge fund is required at time of starting up the business where every cost is to be evaluated and maintained.e. other cost like raw material. ones business has started den only maintain cost is liable. Where else loan taken twice or thrice are hardly 8% and 6% respectively.

Intellecap (Malad). Key Findings . who are excluded from formal financial systems. Women particularly benefit as many microfinance institutions. Take Jessica Jacobs. Re-payment of the loan should be flexible: as the finance is not consistent in business 1st year you had good profit so you want to repay the loan and your loan scheme is not flexible enough for the same. Hindustan Micro finance (Andheri). a former clothing designer who founded Calgary-based Little Soles Inc. Jacobs started her business when her kids were under five. savings and remittances and other financial products. 00. in 2005. Little Soles is doing well these days with annual revenues of about $3 million. Counsellor should be appointed: so that process could be explained well to. It utilizes credit. She discovered a niche in the marketplace: making shoes with non-toxic materials for infants and toddlers who are known to suck on their toes.000. Interest rates should be reduced: concession or discount in the loan should be given for women’s.000 onwards to15. Like many entrepreneurial moms. Suggestion provided by respondent for the financial institutes where as follows. Bina sha owner of toy library are satisfied as they can meet BEP and sustain their business. such as micro-insurance. where else 80 % of them are not aware about the concept of microfinance. so that women could be encouraged for entrepreneurship. target female clients. to help families take advantage of incomegenerating activities and better cope with risk. Institute should opt for ease documentation process: As numerous document are required for disbursement of loan and it’s almost impossible to get all the document at once some facility should be provided like initial and important document to be submitted and rest could be taken care latter. Turnover of women owned organization is huge range of annual income falls from 1. which people have identified are SKS (Kandivali). percentage for aware about microfinance is very less in Mumbai. Many respondents who have recently started their business like Mrs. Time taken for disbursement should be less: in short less time consuming process should be introduced as the document takes time to be processed and then procedure is long and you have to wait for disbursement of loan. 4 % fall in category of cant say where they have heard of microfinance but are not aware about its concept “can’t say” is more or less equal to not aware. Despite a setback about two years ago when a container holding her entire fall line of shoes fell into the ocean and sunk. Entrepreneurs like Anchal gupta owner of Art in motion academy have turnover of approximately 15. or MFIs. Microfinance is the provision of financial services to the poor. 20. in a sustainable manner.Only 16% of female are aware about microfinance. more promotion should be done: many times scheme are not know to these women which is also loss of opportunity. 00.000. Where else film producer Guneet Mogas turnover runs into crores. were named by the women who were aware about microfinance companies. Few microfinance companies.

I would ideally advice women to first test their product in the local market. which will help them to grow their business. as this business is either means of livelihood or their passion. Try to market your product first: One of the major difficulties a woman faces is marketing. a woman entrepreneur will typically not think that since more people are doing a particular business and earning significant profits out of it they should enter the arena. Even banks are very sceptical about this while extending loans. Financial institute can aid entrepreneurship among women: this was identified from study that problem of funding can be solved by financial institutes. 2.1. awareness about financial assistance. Recommendations Various studies and researches conducted on women entrepreneurs reveal that. This helps in being more practical and knowing which schemes you are eligible for. It prepares you to go to an official and demand to be funded under a scheme and benefit from it. Whatever is the hurdle they try their level best to overcome it and achieve their goal. Hence I would like to recommend few things to both women entrepreneurs and to the financial institutions. 4. and it has also being noticed even though these banks have schemes for women entrepreneurs but they are very much sceptical to provide loan. these schemes have different interest rate and different types of perk. to add on to their bank balance. When evaluated these constrains were regarding managing of business. one should be aware of the various schemes that banks offer. passionate and enthusiastic about their business. socio-cultural barriers. make more profit. 1. as well as will not be able to pay the instalments and ultimately lead to default in the payment of the loan. Women entrepreneurs should incorporate some changes in their system of doing business. They can . Attitude of women towards their business. This research also gives information about various financial schemes that is available in the market. 5. And that will lead to loss in business. 3. they are very much determinant. Identifying the available resources for the business. “You should be very well equipped with the various schemes. This is good in a way because this helps them to learn the basics well before they take bigger risks and invest high. Attitude of bank toward women entrepreneurs: bankers find it risky to provide women entrepreneur loan as they feel that women are not good at marketing their product/ business. Profit and size seems to be of less importance and satisfaction of doing it is of more importance to them. These problems are generally related to finance. Before starting up. The study brought to light various constrains that women entrepreneurs faced to start the business. Research the various schemes available: Before approaching a bank. just by updating their schemes and policies and making it more women friendly. because of various reasons are mentioned earlier.” 2. identifying the market segmentation.

In that case. the banks might as well say. One might have taken a loan for. 3. Conclusion: This is the time to look back with pride. but if your business does well and you want to pay the loan back. Sometimes. interest rate must be low so that they can promote more women entrepreneurs. 4. There are a number of such organizations such as AWAKE [Association of Women Entrepreneurs of Karnataka]. Read loan documents carefully: You might have heard this statement many times. documentation process should be ease or manage able. People often only look at the interest rate number. then ideally the interest should be calculated for 25 days and not for 31 days. when will be your break even etc. This helps in not only understanding the business better. When going for a loan. but ignored it. Today we see a good number of business enterprises and as women are contributing to the figures. it is extremely important to sit with the banker and understand all clauses and calculations. Financial Institute must bring changes to their process and policies like. Then. making the loan procedure easy for women. Financial assistance provided to these women entrepreneur . when India has been attracting global attention not only for its fastest economic growth and rising consumerism but also for its entrepreneurial capabilities. Another thing is that often the interest rate is calculated at the end of the month. Be thoroughly aware of your business plan: Creating a business plan is of utmost importance. This also aids in learning from the experience of other women. Join a women’s network: This helps in keeping in touch with other women entrepreneurs who are already in the field. They can then try selling their product in the market. eMERG [Engineering Manufacturer Entrepreneurs Resource Group] and FIWE [Federation of Indian Women Entrepreneurs]. but there can be many hidden things. One has to think through all scenarios before getting into a loan agreement. Another added advantage is that at times it helps in networking with bank officials. say. but also when approaching the bank. three years. replayment of loan must be flexible. why should I give you loan when you even haven’t thought of this. there is need to motivate and encourage these women. Many a times what happens is that they sit with consultants to make the project report.invest some money from their pockets and get a small amount of their product manufactured by a local manufacturer. what happens is that they go too early to the bank and when the banks ask questions they get scared. it is very important to know the details of financial documents very well such as what is your debt equity ratio. 5. 6. then there might be a pre-payment penalty that you may not have been aware of. but if you have paid the loan on say the 5th of the month.

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