Fostering economic development and social progress involves encouraging women entrepreneurs. Women-owned businesses have made great contributions to the world economy; however, many women still struggle to start their own businesses.
We can take steps to motivate more women to start their businesses by crafting effective plans and sharing inspiring narratives to achieve a rich business environment with novel ideas and approaches.
Success Stories of Women Entrepreneurs
Falguni Nayar’s entrepreneurial journey is one defined by powerful vision and determination. She established Nykaa, a beauty and lifestyle retail company, in 2012, and today it is one of the most recognized brands in India.
In a short span of time, her company grew into a billion-dollar enterprise, making Nayar one of the self-made female billionaires in India. Currently, as of her estimated net worth of $2.9 billion in October 2024. Her journey showcases the greatness female entrepreneurs are capable of achieving.
Chetna Sinha had to combine her will to empower rural women to create the first and only Mahila bank – Mann Sethi Mahila Sahakari Bank, which she started in 1997. Her efforts received various challenges, including a non-acceptance by the Reserve Bank of India because of sponsoring non-literate members, but she didn’t give up.
She arranged the necessary literacy classes, applied again, and obtained the relevant license. From the start, the bank has grown to more than 100,000 accounts serving billions of rupees worth of transactions which all rely on member capital. Sinha’s work illustrates the impact financial inclusion has and the contribution women entrepreneurs make towards community advancement.
The entrepreneurial spirit of Kanika Tekriwal saw her establish a private jet management company called JetSetGo in 2014. Even with her personal health issues, she spotted a deficiency in the Indian aviation sector and came up with a private platform that made chartering jets so easy. Her strong will and creativity helped establish JetSetGo as the primary within the industry, making her one of the most celebrated women entrepreneurs in India.
Challenges Faced by Women Entrepreneurs
Achieving adequate capital usually presents a challenge for women entrepreneurs. A case in point is those women entrepreneurs in Europe who secured just one percent of venture capital financing in 2021 compared to their male counterparts, which represents a great funding problem in regard to gender. This situation may jeopardize the growth and continuity of women-owned enterprises.
Another common challenge is balancing business ownership with personal life. Women are given a greater proportion of family and household chores, which makes it harder for them to focus their time and energy on their business. This discrepancy can restrict the development of the business as well as the individual’s health.
Aside from these issues, many gender or sociocultural related ones are likely. Women business owners are often viewed with skepticism, and so are the discriminatory practices and other conception problems of their capabilities in utilizing their leadership potential. These biases affect the extent to which one can access vital networks, mentorship, and other resources to facilitate business success.
Strategies for Overcoming Challenges
- Build Communities: Involvement in organizations and communities that advocate for female entrepreneurs can provide mentorship, resources, and networking opportunities.
- Support Institutional Initiatives: Policies that seek to promote gender equity in funding and leadership positions within the business can assist female businesspersons on a structural level.
Strategies for Empowerment
The Startup Ladies is a non-profit organization that provides workshops and mentoring for women entrepreneurs. They have programs that cultivate entrepreneurial spirit by providing hands-on experience and contacts to help you get around the business world.
Funding is a constant challenge for women entrepreneurs. France Active’s ÉGALITÉ Femmes guarantee makes access to bank credit easier. It covers up to 80% of a bank loan (capped at €50,000) to finance investments and working capital needs for up to seven years.
Every entrepreneur knows that a strong business network is key to success. Initiatives like Project Boardup sponsor mentorships for experienced executives to underrepresented startup founders. This mentorship can help a lot in meeting the challenges and opportunities in your business life.
Role of Policy and Government Initiatives
As a woman entrepreneur, you are fundamental to economic development and innovation. Still, there are specific barriers that you face when you become an entrepreneur. All governments across the globe seem to understand this and are putting in place strategies or plans to support women like you.
Women make up 28% of business owners worldwide, however, these entrepreneurs continuously struggle with acquiring credit and other resources. A number of policies were implemented to help solve these issues:
- Financial Inclusion Programs: These programs help promote equal access to financial resources, which helps reduce the funding gap for female business owners.
- Gender-Disaggregated Data Collection: Analysis of data specific to female entrepreneurs allows policymakers to create effective mechanisms of aid targeted at support this group’s characteristics.
- Credit Guarantee Programs: In addition to other Women Business Enterprise (WBE) programs, this program decreases the risk for creditors, which helps them be more willing to lend to women-run businesses.
To assist women entrepreneurs, a number of grants and programs funded by the government have been created:
- Indian Programs: The Ministry of Micro, Small, and Medium Enterprises (MSME) put women’s empowerment at the core of some of its schemes, including the Prime Minister’s Employment Generation Programme (PMEGP), which has seen over 1.38 lakh projects by women entrepreneurs in the last few years.
- World Bank Gender strategy 2024-2030. The focus of this strategy is to increase economic opportunities for women by 2030 through the provision of broadband to over 300 million women, social protection for over 250 million women, and provision of capital for over 80 million women and women-led businesses.
Impact of Women Entrepreneurs on Economic Development
Venturing into entrepreneurship creates a multitude of job opportunities for individuals and widens the economic growth of the region, more so with women like you taking on the role.
Businesses owned by women in America alone have an economic revenue of $1.8 trillion annually, showcasing their economic impact. Furthermore, studies show that the global GDP would increase by approximately $12 trillion by 2025 if women were to participate equally in the economy as men do.
As a woman entrepreneur, your perspective is essential for fostering innovation and diversity in the business world. Diverse teams incorporate a variety of ideas, viewpoints, and perspectives, which fosters creativity and innovation.
Ironically, in countries like Togo and Indonesia, where most of the innovation entrepreneurs are women, have proven to show that women dramatically impact the innovative solution.
Conclusion
Women entrepreneurs are important drivers of economic growth and innovation, making it crucial to excel in societal progress. By relaying success stories and creating adequate plans, we can encourage and assist more women to become entrepreneurs.
Programs aimed at mentorship, financing, and networking have shown results in dealing with the problems of female entrepreneurs. Successful women who operate in business tend to act as role models for other women. This encourages them to delve deeper into entrepreneurial endeavors, which tends to make the economy active and inclusive.
About The Author
