24% of Women Entrepreneurs Unaware of Government Schemes: Report The report offers insights into women entrepreneurs' funding sources, banking habits, digital payment preferences, and sustainability practices while addressing challenges like gender bias and the influence of age, income, and location.
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In Indian metro cities, 65 per cent of self-employed women have not taken a business loan, while 39 per cent rely on personal savings to fund their enterprises, according to a recent fintech report. This striking statistic sheds light on the financial landscape that women entrepreneurs navigate, revealing both resilience and the pressing need for greater access to funding.
"The insights from our latest 'Women and Finance' report highlight key areas where we can make an impact. We see opportunities to boost awareness and adoption of government entitlements through education and training. Additionally, it underscores the need to build entrepreneurial ecosystems with networking platforms and communities that foster collaboration, mentorship, skill-building, and knowledge exchange to accelerate growth for women in business," said Divyesh Dalal, Managing Director and Head, Global Transaction Services, SME and Institutional Liabilities, DBS Bank India.
The report delves into critical areas such as business funding, digital payments, workforce dynamics, and sustainability, while also shining a light on the challenges these women face, including gender bias and the need for robust business support systems.
Sources of Business Funding
A significant revelation from the report is that 65 per cent of self-employed women in Indian metros have never taken a business loan. Of these, 39 per cent rely on personal savings to fund their enterprises. For those who have obtained loans, bank loans emerged as the most popular option, with 21 per cent of respondents preferring this route. A notable risk-averse approach is evident, as 28 per cent of respondents used personal property as collateral, while 25% relied on gold. Among those who use gold as collateral, 64 per cent invested in safer options like savings accounts.
Awareness of Government Schemes
The report reveals a critical gap in awareness regarding government schemes designed to support women entrepreneurs. Nearly a quarter (24 per cent) of respondents were unaware of such schemes, and 34 per cent had not utilised any government schemes. To bridge this gap, the DBS Foundation has launched a robust training program in partnership with Haqdarshak to boost financial literacy and empower women to access government entitlements and financial services. The program targets 200,000 marginalised beneficiaries, with women comprising 80 per cent of the participants.
Banking Products and Financial Assistance
When it comes to banking products, 39 per cent of women entrepreneurs reported using cash credit (CC) and overdraft (OD) facilities, while 25 per cent preferred corporate credit cards. Flexible repayment terms and competitive interest rates were the most important factors when choosing a bank for loans.
Beyond traditional financial support, women entrepreneurs expressed the need for mentorship (26 per cent), guidance in navigating government schemes (18 per cent), and help in digitising financial processes (15 per cent). Additionally, 18 per cent of respondents sought women-based communities for business enablement, while 13 per cent were keen on accessing industry-specific financial data.
Digital Payments and Business Operations
Digital payment adoption is another key trend highlighted in the report. Pushan Sharma, Director-Research, CRISIL Market Intelligence and Analytics, highlighted that 73 per cent of the women surveyed preferred receiving payments digitally, and 87 percent used digital methods for business expenses, with UPI leading as the most-used payment mode for both receiving (35 per cent) and paying (26 per cent) business expenses.
'Women and Finance' is the third report DBS Bank India, in partnership with CRISIL, has launched analysing the financial habits and entrepreneurial journeys of 400 self-employed women across 10 Indian cities.
