Women entrepreneurs have to face many problems from the very beginning till the functioning of their enterprises. A lot of problems are faced by women entrepreneurs, their problems are related to their responsibilities towards family, and society.
Women entrepreneurs are those who start a business, collect all the resources, take hazards, face challenges, give employment, and maintain the business independently. Women entrepreneurship means an act of business creation and business ownership that empowers women financially in a position in society.
Typically, women should not be in leadership status; they are expected to take orders rather than provide. This is not that they aren’t able to do so, but our society is absolutely not acceptable when it comes to the leadership of women. However, this landscape has altered substantially, we still have miles to go.
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The significance of women’s entrepreneurship for economic growth is comprehensively recognized. Several studies show the positive effect of women entrepreneurs on economic development. Still, women entrepreneurs are in the minority and they have to face several hurdles in their journey. Let’s have a look at those problems.
Problems Faced by Women Entrepreneurs Given Below:
1. Problem of Finance
Finance is considered the lifeblood of any business, be it small or big. Although, female entrepreneurs are suffering from a lack of finance for two reasons. First, women don’t have assets in their names to utilize as collateral to acquire funds from outside sources. Hence, their way to the outside fund’s sources is limited.
Second, the banks also think women are less loan-worthy and daunt female borrowers from believing that women can leave their businesses at any time. Given such conditions, female entrepreneurs are compelled to depend on their savings, if any, and credits from relatives, and friends, which are relatively negligible and meager. Thus, female enterprises fail because of the lack of finance.
2. Scarcity of Raw Material
Most of the female enterprises are suffering from a shortage of raw materials and essential inputs. This involves high amounts of raw material, on the other hand, and arranging raw materials at least a discount. The failure of several female co-operatives in 1971 is an instance of how the shortage of raw material sounded the demise signal of ventures conducted by women.
3. Stiff Competition
Women entrepreneurs don’t have the organizational structure to invest a lot of money in promotion and advertising. Thus, they face strong opposition to selling their products both in the regulated division and with their male equivalents. Such competition eventually happens in the liquidation of women’s enterprises.
4. Limited Mobility
Unlike men, the mobility of women is extremely limited because of different reasons. This is the one of biggest problems faced by female entrepreneurs. A single woman demanding the room is yet seen with suspicion. The cumbersome practice included in beginning an organization coupled with the disrespectful attitude of the executives towards women forces them to provide of starting the enterprises.
5. Family Ties
This is primarily the duty of women to look after kids and other family members. Man performs a secondary role. In the case of a married female, a woman has to look for a fine balance between the family and business. Her overall involvement in the family has little or no time and energy to devote to the business.
The approval and support of husbands appear to be an essential condition for the entry of women into the profession. Therefore, the institutional level and family education undoubtedly affect the entry of women into professional activities.
6. Lack of Education
About three-fifths of the female are still uneducated. Uneducation is the reason for socio-economic issues. Because of the shortage of education and that also qualitative study, women aren’t aware of business, market knowledge, and technology. In addition, a shortage of education leads to low-performance impulses among women. Hence, the shortage of education forms one kind or another matter for women in establishing and conducting a business.
7. Low-Risk Bearing Ability
Women lead a secure life. They are less literate and not financially independent. All these decrease their capability to bear the hazard included in conducting a business venture. Hazard tolerance is an imperative requirement for a successful entrepreneur. Apart from the above issues, poor infrastructural amenities, lack of power, social outlook, the huge expense of production, less requirement for success, and socioeconomic constraints also prevent women from entering the profession.
8. Unfavorable Environment
Of all the challenges faced by female entrepreneurs, the hostile environment is one of the big hurdles faced by women. In certain places, even when women own a business they need a male partner to make deals, negotiate or be the business face. In addition, the fear of harassment and the steady increase in rape cases limit their possibility to select their place of business, and opening hours resulting in increased chances of their success. The life of entrepreneurs is not very simple and it is difficult only for women entrepreneurs.