Barriers & Panacea to Women Entrepreneurship

Women today play multiple economic roles in our society. They are consumers, farmers, labourers, teachers, bankers, innovators, scientists, pilots and astronauts. Many are self-employed while some are turning entrepreneurs. Entrepreneurship provides the most powerful economically empowering avenue for the women, for the community and the nation. But according to a report, it is estimated that globally there are only roughly 9.34 Million women owned formal small and medium enterprise in over 140 assessed countries.

The above data is very small. So why there are so few women Entrepreneurs? In my opinion, the four main barriers to women becoming entrepreneurs are these. The first set of limiting factors is intrinsic i.e. within the self and family. Most educated women are turned to take up jobs; it is easy and lends the stability of a fixed salary. But with more women leaders coming to the forefront on corporate boards and as entrepreneurs, like Indira Nooyi, Chanda Kochar, and Kiran Majumdar Shaw hopefully all intrinsic pressures will slowly fade away.

The second set of problems is the most critical. These include lack of access to resources like credit, technology and markets. Lack of access to formal, easy, collateral free, and transparent financing for women start-ups is a major problem area. Women also lack access to latest technologies that could enable them to climb up the value chain. The third factor that is a hindrance is that women are not always equipped with adequate knowledge and skills to tap opportunities. They lack exposure to practical aspects of running a business.

The fourth issue is that of networking. Creating wide and sustainable network of women producers and consumers is essential to build and nurture women entrepreneurship. There are many corrective measures to increase women entrepreneurship in India. Increase the volume of women support systems like child care and family support. Enlarge upon development and capacity building processes for soft skills, technology and management skills.

Amplify mentoring and market linkage to support for women owned enterprises through networks like women entrepreneur associations. Simplify the external entrepreneurial ecosystem by enabling ease of doing business. Make simpler government schemes eligibility criteria, documentation and clearance mechanisms. Bring in smarter technology and better inter-departmental coordination to enable simpler, faster, transparent and effective service delivery for women start-ups.