Only a tenth of small businesses who availed credit in FY20 led by women: Report
Official data says women-run enterprises constituted for 14 percent of the overall base of 58.5 million entrepreneurs as of 2018, Neogrowth Credit, which did the survey, said.
Women-run enterprises constituted only a tenth of the small businesses which availed credit in FY20, a multi-city survey said on Friday.
Official data says women-run enterprises constituted for 14 percent of the overall base of 58.5 million entrepreneurs as of 2018, Neogrowth Credit, which did the survey, said.
Its survey of 17,000 micro, small and medium enterprises in Mumbai, Delhi NCR, Hyderabad, Pune, Bengaluru, Lucknow, and Ahmedabad, revealed that businesses which are run by women, having them either as sole proprietors, partners or directors, accounted for only 10.8 percent of the disbursements in FY20.
The survey findings come even as efforts on women empowerment are being undertaken through measures including lower interest rates for loans.
It also said that over half of the survey respondents were first time borrowers and added that a lack of credit history or credit scores usually makes it difficult to avail credit.
The survey further said that over three fourths of the borrowers were first generation businessmen.
Over a fourth of the surveyed businesses said they have witnessed a surge in employee hiring since availing a loan, it said.
NeoGrowth said it has been doing this survey on an annual basis to assess the social impact of lending and also to understand the challenges faced by stakeholders. The company has disbursed over Rs 5,500 crore in loans to various borrower segments.
NeoGrowth is an SME lending platform, registered with the Reserve Bank of India (RBI). The NBFC’s approach includes innovative technology and digital payment ecosystem, along with flexible repayment options. NeoGrowth’s objective is to bridge the credit gap of MSMEs and offer customised products to address the customers multiple business needs.
Earlier in April 2019, the company received an ISO 9001:2015 certification from The International Organisation for Standardisation (ISO).
(Disclaimer: Additional background information has been added to this PTI copy for context)
Edited by Javed Gaihlot