Empowering Women Entrepreneurs in Manufacturing: Business Loans Driving Gender Equality in the Industry
Entrepreneurship within the national economy has already been crucial to holistic growth. Empowering women entrepreneurs is one significant aspect of driving entrepreneurship across the country.
The objective of helping women entrepreneurs, on the other hand, was to help them gain financial independence and achieve a broader sense of gender equality. Simultaneously, assisting women entrepreneurs nationwide would encourage societal progress on a large scale. However, women entrepreneurs have repeatedly clarified that accessing financial capital has been difficult lately.
Going through media reports and authentic media data, it is observed that more than encouraging women to manage a start-up is needed, especially when they face stringent and systemic barriers towards acquiring business loans. Despite such trends, business loans for women have been encouraged through several government initiatives, besides the public and private sector banks offering women even unsecured commercial loans.
But what major hurdles do women face when acquiring business loans? Do they need to be better equipped to make a valid application?
What Are the Hurdles That Women Encounter in Acquiring Business Loans?
Compared to their male counterparts, women face many hurdles in securing a proper unsecured commercial loans as entrepreneurs or for current business expansion.
According to the statistical data provided by the World Bank, 7% of Indian entrepreneurs are women, and they have several obligations while running the business. In addition, business consultants explain that there have been large lacunae in infrastructure management and policy implementation.
Gradually, over the years, due to the help of nodal authorities and other financial institutions, women have composed at least 13.5 – 15.7 million start-ups in India.
Importance of Gender Equality in the Manufacturing Sector
Business consultants state that women are strongly needed to participate in the Indian manufacturing segment. A strong, inclusive workforce must emerge, with more young female entrepreneurs entering the segment. Increasing the number of women participating in the manufacturing market would have a positive impact on the gross domestic product (GDP). This, in turn, would boost national productivity in the long run.
Role of Business Loans in Empowering Women
The disbursement of proper loan amounts can give women the much-needed economic boost they need. The right amount of loan disbursement can build business and make women economically strong. Loans could help women entrepreneurs deploy local human resources to create a sustainable business model.
Best Practices for Empowering Women in Manufacturing
Helping women entrepreneurs through clear communication remains a mandate for investors and financial bodies to disburse loans. Best practices could be observed through:
- Valid Documentation as required
- Authenticity of supporting documents
- Optimal Cycle Time For Loan Disbursement
- Verification of Collaterals for secured loans
- Phase-wise disbursement of unsecured loans
- Validating working capital loans
Conclusion
In conclusion, the disbursement of business loans through nodal agencies should be organised and systematic while being implemented. Equitable loan distribution for female entrepreneurs could help create sustainable start-up models, adding to national productivity by driving the untapped potential in the market.
Also, if you are a woman entrepreneur and looking for easy business loans, you can try getting in touch with NBFCs. They offer just the right kind of financial support to business owners in India.
NBFCs offer varied investment options, including loans, leasing, and fund transfer. Governed by RBI, NBFCs like Kinara Capital have won the hearts of women entrepreneurs by funding start-ups across the nation.
