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Problems of Women Entrepreneurs in India

Women Entrepreneurial Journey

Last Updated 27th Nov 2021

  • In recent years, women participation has increased in the male-dominated sectors of India.
  • Issues such as low literacy rates, traditional mindset, lack of finance and safety in the workplace are the major hurdles faced by women entrepreneurs, whether big or small.
  • Due to the limited interaction space available for women to socialize, women's networking is minimal.
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Obstacles In The Women Entrepreneurial Journey

Well, there are many reasons which present roadblocks in a woman’s entrepreneurial journey :

Traditional Mindset

While a lot of women are breaking the shackles and moving out of their homes to work, setting up a business is still perceived to be a man’s domain. In the male-dominated society, women are not treated equally to men, which serves as a barrier to women’s entry into the business.


If you want to run a successful business, it’s essential for you to socialize within the entrepreneurial network so that you can build contacts and win customers. However, very few women can step out of their comfort zone. If they do socialize, it is restricted to their work, and they are not able to build relationships. This has a significant impact on the extent of visibility they have in the market and on the perception they make.

Finance Problems

Finance is regarded as the ‘life-line’ for any business – be it big or small. However, women entrepreneurs suffer from a shortage of finance, mainly due to two significant reasons. Firstly, women generally do not have a property in their names, which they can pledge as collateral to obtain funds from external sources. Secondly, the banks also consider women less creditworthy and discourage women borrowers on the belief that they can leave their business at any time.

Family Ties

In India, looking after children and other members of the family is considered the sole responsibility of a married woman. Men play a secondary role in such circumstances. A married woman has to strike a delicate balance between her business and family. Due to her total involvement in family, she is left with no energy and time to devote to the business. Hence, it’s essential to understand that men are also quite capable of handling family responsibilities, and they should share such duties to resolve this obstacle.

Lack Of Education

In India, around 30% of women are still illiterate. Due to a lack of qualitative education, women lack business, technology, and market knowledge. Also, the lack of training can lead to low achievement and demotivation among women. Thus, education is vital to set up the business and run it successfully.

Safety And Security

In today’s times, safety is probably the biggest hurdle for women in India. Due to the rise of social crime, women hesitate to take on roles that demand long hours and interactions with a world of strangers. However, a smiling face and a calm mind can quickly turn strangers into friends.

However, despite these obstacles that most women face in India, many have built successful businesses. Communicating with the family and thinking the business idea out with a long term sustainable plan can act as the key to success. Problems are part of the journey where you are continually pushing towards growth. So, it is crucial not to get discouraged by the number of challenges on the path but continue to take one step at a time and keep moving forward.

Remember that not all people will ever stand beside you, communicate well within the family to bring any friction from home to a minimum. Most important of all, developing a positive attitude goes a long way in being successful.


What are the major problems faced by women entrepreneurs?

The key challenges female entrepreneurs face are financial arrangement, raw material shortages, stiff competition, restricted mobility, family relations, education shortages, male-dominated society, and low-risk capacity, among others.

Why are there less female entrepreneurs?

The primary reasons for low female entrepreneurship rates are unconscious discrimination and insufficient trust in business skills, difficult access to finances and networks, a lack of family support and child care opportunities, and inadequate workplace and public space protection.

Why is female entrepreneurship important?

Female entrepreneurship is essential for any country's economic growth as more and more women join the workforce. It narrows the prevalent gender gap and makes the office environment more passive, trickling down the effect of social change.

How many female business owners are there in India?

According to studies, India currently has 13.5-15.7 million women's companies, representing 20% of all businesses.

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