14 Challenges Faced by Women Entrepreneurs in India in 2023

Are you a woman aspiring to start your own business in India? Before taking the leap, it’s crucial to know the difficulties you might face on this entrepreneurial journey.

Starting a business is challenging, and it can be even more so for female entrepreneurs. Despite their efforts and expertise, women often encounter more obstacles compared to men in gaining recognition within the business community.

According to the Mastercard Index of Women Entrepreneurs, out of 100 entrepreneurs in India, only 7 are female. The Google-Bain report reveals that just 20% of businesses in the country are owned by women.

Moreover, the 2021 report by the World Economic Forum highlights a significant gender gap of 72% in India’s labor market.

Women entrepreneurs in India face unique challenges due to their gender. In this article, we will explore the 14 major problems that female entrepreneurs encounter while starting a business in India and learn how to overcome them.

So, if you’re a determined woman with dreams of entrepreneurship, stay tuned to find out how to navigate these obstacles and turn your business aspirations into a reality!

14 Problems Women Entrepreneurs Encounter in India

Here are 14 challenges faced by women entrepreneurs in India you should know about:

1. Lack of Education

In the countryside of India, women often don’t get to study a lot. Most of the people who don’t know how to read and write in India are women.

When a country spends money on schools, it’s like they’re planning for the future. In the year 1991, there were about 330 million women in India who were at least seven years old. But, only 40% of these women went to school or got any kind of formal education.

A report by the National Statistical Office (NSO) says that the number of women who can read and write has slowly increased to nearly 70%.

Looking ahead, this means that 30% of women who can’t read or write will have to fight harder to get what they need in a country with more people and tougher competition.

It’s also been said that the COVID-19 pandemic really hurt the education of students who come from poor families in India, and this was especially true for girls.

2. Lack of Social and Institutional Support

Many women business owners lack the social support they need from their families, peers, and immediate ecosystems to kick start their ventures.

The absence of mentorship from the business community is also a significant challenge for women entrepreneurs in the country.

The situation doesn’t differ when it comes to institutional support. Although there are schemes to promote female entrepreneurship, many women don’t receive timely guidance or help from authorities.

The lack of a proper support network adversely impacts their confidence and ability to take risks.

3. Gender Bias in Funding

The funding scene in India is plagued by significant gender biases, making it unfair for women-led businesses. These biases result in limited access to capital due to the prejudices of investors and other factors.

According to a report by Innoven Capital, only 12% of the companies that received funding in 2019 had at least one female founder.

Many venture capital (VC) firms and angel investors are hesitant to invest in businesses led by women. Additionally, banks and financial institutions may consider women less credit-worthy, creating further challenges.

Moreover, the lack of property or assets in their name becomes a problem when applying for collateral loans or private financing, especially for many Indian women entrepreneurs.

4. Lack of Access to Professional Networks

The limited number of successful women entrepreneurs in India is partly due to the challenge of building a strong network base.

Without a robust professional network, fewer Indian women find success in entrepreneurship, leading to a scarcity of women entrepreneurs in the country.

Networking involves connecting with others to exchange information and develop valuable contacts, both professionally and socially.

Many accomplished business leaders credit their success not only to their knowledge but also to the people they’ve met along the way.

While the internet is the largest networking platform globally, a report from 2020 revealed that only 43% of active internet users in urban India and 42% in rural India are women.

On average, Indian men use the internet more frequently than women, which further adds to the challenge of building professional networks.

Encouraging Indian women to engage actively on the internet and connect with potential allies in the business world is crucial for empowering them to succeed as entrepreneurs.

5. Limited Opportunities for Women Entrepreneurs in India

In India, some sectors are not very welcoming to women. Even though there are efforts to promote gender equality, men still dominate the country’s entrepreneurial world.

A recent report shows that women-owned businesses mostly operate in sectors with low earnings, while men control more profitable areas like manufacturing and construction.

The industries are mostly centered around men, so women entrepreneurs often end up in sectors that are considered “women-friendly,” like education, apparel, and beauty care.

This limits their experiences, opportunities, and capabilities to a large extent. We should strive to create a more inclusive and equal environment where women can thrive in all sectors of entrepreneurship.

6. Balancing Traditional Gender Roles

In the world of entrepreneurship, women face a significant challenge due to the pressure to conform to traditional gender roles. Society expects them to handle domestic chores, take care of children and elders, and even put their career on hold.

The burden of balancing traditional gender roles becomes a major obstacle for women entrepreneurs. Many are urged to give up their business dreams and opt for “easier” professions to prioritize family and household duties.

Unfortunately, those who choose to focus on their careers are often criticized and looked down upon by society. This adds to the difficulties faced by women striving to build their own successful brands.

7. Limited Entrepreneurial Environment

Entrepreneurship is a challenging journey that requires constant learning and upskilling. To succeed, having a supportive entrepreneurial environment is vital. Unfortunately, many women face the obstacle of lacking such a nurturing setting.

For starters, familial responsibilities often force women to run their businesses from home. As a result, they miss out on opportunities to interact with the business community, build market connections, and access valuable resources and mentors.

This limitation hampers their learning and growth as entrepreneurs, making it harder for them to thrive.

8. Restricted Mobility

One of the basic challenges faced by women entrepreneurs in India is limited mobility. Concerns about safety prevent them from traveling alone or staying at hotels for business purposes.

Shockingly, some hotels still have a policy of not allowing women to check-in unless they are accompanied by a man!

Even though some financially independent women invest in vehicles, the number of women who own motorized vehicles in India is still lower compared to men.

All these factors together restrict the mobility of female business owners, making it harder for them to run and grow their businesses.

9. Missing Role Models

One of the big challenges for aspiring women entrepreneurs is the absence of enough positive role models. Without these role models, it becomes difficult for them to visualize what success could look like.

They also face hurdles in finding women mentors and coaches who can guide and provide meaningful feedback.

Additionally, they struggle to find insightful articles and literature that can offer valuable insights into their professional and personal challenges.

10. Limited Industry Knowledge

Not many women in India are successful business owners. Those who are, usually work in similar fields like beauty, modeling, entertainment, or shopping.

It’s not common to find businesses started by women in areas like making things, technology, or science. Many women don’t know much about these fields, and there aren’t many examples of women doing really well in them.

Jobs that need many workers are usually harder for women to get. Men often have an advantage because they usually have more strength for jobs in business that need a lot of physical work.

In India, women are sometimes called the “weaker sex” or “abla naari” in Hindi. Yes, being a business owner is one part of business, and hard work is another.

But in India, where people often rely more on many workers and less on technical skills or smart thinking, a woman business owner who can’t do physical work might not be successful.

Even when a woman has a good business idea and knows how to make it happen, if she can’t do the physical work, she might not do well.

When hiring people, she might not hire a woman for a job usually done by a man. This makes it harder for other women to be successful in business.

11. Keeping Family and Work in Balance

Successful women business owners often have a hard time finding the right mix of family time and work. This challenge is even bigger in India.

People in India often expect a woman to focus more on her family duties than a man has to.

Showing love to the family for a man means being hard-working at his job. For a woman, it means being there for the family’s needs right away. Usually, these roles don’t get switched around.

A woman in India can’t show her family love by being hard-working in her business. She shows it when she chooses her family over her business. This causes problems at home when she chooses business over family, even in tough situations.

Sometimes, she has to take time off work for things like having a baby or taking care of a child. During these times, she doesn’t have much control over her business and work.

The tricky part for Indian women business owners is balancing work and family duties. They often don’t have control over this balance and are used to giving their family more care and love.

12. Safety Concerns

The inadequate state of law and order has led to an increase in crimes against women. As a result, the environment becomes hostile and risky, posing serious challenges for women entrepreneurs who need to move around to manage their business ventures.

This limitation prevents women from accessing many locations on their own and sometimes requires them to be accompanied by a man for their safety.

By implementing essential law reforms, maintaining vigilant law enforcement, and establishing an effective judicial system, the situation can be significantly improved, creating a safer environment for women as they venture into entrepreneurial roles.

13. Low Risk-Bearing Ability

For successful entrepreneurship, an entrepreneur must be comfortable with taking risks. However, many Indian women lack experience in risk-taking due to their familial responsibilities.

Often, decisions like where to live or when to travel are not theirs to make, but their husband’s. Indian women may not have the opportunity to make tough choices and deal with the outcomes as they are often expected to follow instructions.

When it comes to facing tough decisions in business, Indian women encounter challenges. Moreover, they may not enjoy the same level of independence in decision-making as men in India.

While seeking advice and blessings from family members before starting a business is commendable for both genders, men are often forgiven if they act spontaneously. On the other hand, women may face consequences if they do the same.

In India, married women must inform their husbands before investing, even if the husbands have access to the funds. In contrast, married men can inform their wives afterward.

Additionally, both unmarried and married women seek counsel from their fathers, mothers, and brothers.

Female entrepreneurs in India who wish to take risks may face societal disapproval. They often require strong family support and approval to proceed with their entrepreneurial endeavors.

However, seeking approval from family members can result in delays, and in the fast-paced business world, opportunities may slip away.

Empowering women to take calculated risks is essential to create a supportive environment for successful women entrepreneurs in India.

14. Social Construct

In our society, deep-rooted patriarchal traditions have defined strict gender roles. Women have often been confined to supportive roles, and it hasn’t been expected of them to take leadership positions in the business and professional world.

Although these views are gradually changing, they still create frequent conflicts and tensions in the lives of aspiring women entrepreneurs.

Persistent negative stereotypes that portray women as unfit for leadership roles need to be challenged and broken.

Final Thoughts

The best way to address the problems faced by women entrepreneurs is to create a nurturing entrepreneurial ecosystem – one that provides them with access to resources, a safe and secure work environment, and social and institutional support.

Collaborative and community-inspired workplaces like coworking offices are immensely helpful in this endeavor. By fostering such an environment, we can empower women entrepreneurs to thrive and succeed in their ventures.

Let’s work together to build a supportive ecosystem that allows women to unleash their entrepreneurial potential and make a lasting impact in the business world.

FAQs (Frequently Asked Questions)

Q: What can women do to become successful entrepreneurs?

Ans: To become a successful entrepreneur, women can take these steps:

• Find something they are passionate about and turn it into a business idea.
• Make a plan for how they will run their business and make it successful.
• Build a network of helpful people who can support and guide them.
• Get advice and help from experienced entrepreneurs who can show them the way.
• Learn from any mistakes they make and keep trying.
• Be flexible and smart when taking risks in their business decisions.

Q: Why are there fewer women who start businesses in India compared to men?

Ans: Why do fewer women in India start businesses compared to men?

There are some reasons why there are fewer women starting businesses in India:

• People’s beliefs and traditions may discourage women from starting businesses.
• Women find it hard to get money to start and run their businesses.
• Women don’t get enough chances to learn how to run a business.
• They also have fewer opportunities to meet and connect with experienced people in business.

Q: What are the main problems faced by women who start businesses in India?

Ans: Women who start businesses in India face some special challenges because they are women. The biggest problem they have is not getting enough money to support their businesses. They don’t have easy access to loans and credit.

Q: How are female entrepreneurs different from male entrepreneurs?

Ans: What makes female entrepreneurs different from male entrepreneurs?

A study by the World Bank found that women who start businesses usually choose safer and slower-growing businesses. They are not as likely to take big risks or try to grow their businesses very quickly like men do.

Q: What is the main thing that stops women from starting their businesses?

Ans: The biggest barrier for women who want to start their own businesses is not having enough money and resources. Because of how things are, people sometimes think women can’t be good at business, so they don’t get the funding and support they need to get started.

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