Funding a key expectation from the new govt, say women entrepreneurs
With general elections around the corner, women entrepreneurs, who usually struggle for resources and funding, say they expect more financial support and a simpler route to access that funding from the government.
It has been seventy years since India attained independence, but only 25 percent of women constitute India’s workforce, and this number sticks out like a sore thumb.
Whether it is the boardroom or the classroom, in the startup ecosystem or in the government, there is no disagreement over the fact that we need more and more women to be a part of the workforce. And women who are already contributing to the economy need all the support they can get, given starting a business or working in a corporate set up in a country like India is difficult. More so with women still having to take most of the responsibility when it comes to household chores.
And now, with the general elections around the corner, we reached out to women entrepreneurs to understand what support they need from the government, and what are some of the expectations they have from the party that comes to power.
Funding and access to resources
A primary concern for most women entrepreneurs is access to funding and resources. Aditi Balbir of V-Resorts says, “Access to funding is our biggest issue - if not equity, at least venture debt options for mezzanine funding for women would be great.”
In 2018 women-led and co-founded startups form just 5.42 percent of the total $12.68 billion in equity funding raised in the Indian startup ecosystem, data from YS Research shows. While there still exists a significant disparity in the total funds raised by women-led startups, there’s a marked improvement from 2017, when that number stood at just 3.86 percent of total funds, a real-time low between 2015-2018. While more and more VCs are looking to fund women startups, support from the government will go a long way.
However, there are also a lot of MSMS schemes set up by the government such as Mudra Yojana, Udyogini Scheme, etc., that cater to women in different sectors such as tailoring, agriculture, and even coir making. There is also the SIDBI women focused fund and loan provision under the Startup India Standup India scheme.
Also read: MSME Funding: Nine schemes for women entrepreneurs in India
Dissemination of information
Despite the government setting up so many funds for rural women, awareness about these continues to be a challenge. How can rural women entrepreneurs and SMEs avail these schemes if they are not even aware of them?
According to Sujata Chatterjee, Founder of Twirl, a Kolkata-based company, “There is a need for schemes to be clearly defined, simple to understand, and easy to access. Very often, the process of finding, understanding, and availing government schemes is such a long-drawn process that we – entrepreneurs – cannot allocate that much resources and time towards this. Rather, the government should take a proactive approach to reach those incentives to us in order to encourage us, especially if that organisation is also enabling more ladies to join the workforce. Also, by regularly highlighting and praising women entrepreneurs around us, the government can motivate many more girls to dream big.”
Entrepreneur Manisha Raisinghani of LogiNext also reiterates the same. She says, “The government should engage people through seminars, workshops, and education centres, where women are made aware of all the options. This should be supported by proper promotional activities. These activities should be extended to young girls in schools and colleges, helping them pick the right career early on. Another aspect these centres should cover is training/guiding them in the right way to save and invest their income to secure their future.”
For most women entrepreneurs, the need of the hour is funding and financial support. As data shows, access to small schemes, funds, and loans will go a long way in encouraging more and more women to take up entrepreneurship. With more women becoming self-employed and employing other women, it is only going to benefit the economy in the long run.
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