Challenges faced by WOMEN ENTREPRENEURS

The number of women entrepreneurs is on the rise. Today, in India, we have over 15 million women-owned businesses, which represent 20% of the total enterprises. This is an increase from 14% a decade back. Great news, isn’t it? These are just some of the figures that prove that women entrepreneurs are here to revolutionise the world of business!

Seeing these facts and figures, it should come as no surprise that encouraging women entrepreneurs is the need of the hour. Women are now actively participating in economic growth, which also has a direct bearing on improving the standard of living.

While there is significant untapped potential in India for driving women entrepreneurship, there is an equal pressure of challenges faced by women who wish to tread down the entrepreneurial path. India has the third-largest database of startups in the entire world but the percentage of female startup founders is India is a miserable 11% only.

In India, women make up 42% of new graduates, but only 24% of entry-level professionals. Of these, about 19% reach senior-level management roles. Women hold only 7.7% of board seats and just 2.7% of board chairs.

While we know that so much has changed in the entrepreneurial scenario, we must also realise how the business ecosystem poses a lot of threats to the women entrepreneur, namely -

• Lack of cash flow
• Lack of business knowledge
• Inability to manage time at work and home
• Operational challenges like recruiting and retention of employees, accounts, etc
• Society’s expectations from women

LET’S LOOK AT THEM CLOSELY

"Today, women in leadership can get together to change policies that once ignored the challenges women faced, and it’s time we made use of this opportunity"

Cash flow woes

It is common for women to be denied loans because of cultural, and general biases. Many Indian women do not have property or assets to their name, which can be a problem while applying for loans. Studies have found that the inability to obtain capital is the biggest entrepreneurial challenge for women, especially, if they are women of colour. In 2018, only 2.2% of venture capital went to two female founded startups!

Add to this the fact that money was always a topic that was left for the men. It’s great to see this changing as more and more women are starting the conversation around money, but we still have a long way to go.

A good way to equip yourself with knowledge about finance and money matters is to join groups like LXME and Money Mahila that aim at financially empowering women.

Unfavourable business environment

Social constraints restrict women’s participation in business. In the smaller towns in India, higher education, leave alone specialised education is still inaccessible to women. Due to a lack of business, education it can get difficult for women to understand money matters or even day to day operations of a company. In fact, many times women are required to have a male partner who will do the deal, negotiate and be the face of the business! Women also lack a well-established business network which restricts their participation in business.

Women operate from a place of fear

Unfortunately, women have been conditioned to operate with fear. They are constantly worried and anxious about any impending harm, which in the long run leads to low self-confidence. With the lack of social support and constant anxiety, women find themselves failing at business even when they are doing something that they love.

No work-life balance

Managing work as well as family can get tough, and over the years women find themselves to be working 24/7 with absolutely no time for themselves. This constant state of stress leads to burnout, which in turn, restricts them from giving it their best at work. While times are changing, a woman is still expected to take care of the running and functioning of the house.

Thanks to societal conditioning, women are also made to feel guilty for enjoying a break and doing things for themselves, and this is one of the primary reasons why they don’t want to focus all the attention to an entrepreneurial venture.

Social conditioning

We have already seen how social conditioning can restrict women from being confident, educating themselves or even applying for a loan. Women are expected to spend more time at home in order to grow their family. Marriage and family life are given more importance than career. These laws, cultures and politics are built upon a patriarchal foundation where women need to work twice as hard as men if they want to rise up.

Upon doing well, women are labelled arrogant and aggressive if they speak about their work. Women are constantly downplaying their own worth, for fear of being judged. Even when it comes to money, women are more conservative than men and don’t end up asking for a high amount. As a female entrepreneur in a male-dominated industry, it can take a while before earning the respect of the male colleagues.

This is why it is imperative that women founders support each other. Studies have shown that venture capitalists want to invest in their own tribe. If we can get more female investors to support one another it is quite possible that other women will be encouraged to grow their business through strategic collaborations. The formation of women-only communities have provided a lot of women with mentors and peers who continue to inspire each other.

There are a lot of support networks for women today, and once you find your network of supporters, don’t be afraid to ask what you really need from them. The future of female entrepreneurialism is certainly bright and there is a growing ecosystem supporting women-owned businesses that will ensure that all the female leaders are here to stay.

Today, women in leadership can get together to change policies that once ignored the challenges women faced, and it’s time we made use of this opportunity. Sheryl Sandberg once said: “A world where half our homes are run by men, and half our institutions are run by women, would be a far better world!” We can end this by agreeing that this is a powerful time for women in leadership to make a difference, with the support of men, and a sisterhood that believes in their dreams.