What are the Problems Faced By Women Entrepreneurs in India?

Women entrepreneurs face many problems in their efforts to develop their enterprise. The main problems faced by the women entrepreneurs are as followed:

1. Shortage of Finance:

Women entrepreneurs always suffer from inadequate financial recourses and working capital. They are not able to afford external finance due to absence of tangible security and credit in the market.


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Women have a very less property and bank balance to their name. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in their ability to run venture successfully.


The complicated procedure of bank loans also creates lot of problems in getting the required finance. Women entrepreneurs even face problems in getting requisite working capital financing day-to-day business activities.

Women entrepreneurs have to depend upon their personal saving and loans from family friends. Most of the women entrepreneurs fail due to lack of proper financing facilities, because finance is life blood of every business activities.

2. Marketing problems:

Women entrepreneurs often depend upon the middlemen for marketing their products who pocket large chunk of profit. The middlemen exploit the women entrepreneurs.

Women entrepreneurs also find it difficult to capture the market and make their products popular. A lot of money is needed for advertisement in these days of stiff competition from male entrepreneurs.


Women entrepreneurs also lack energy and extra efforts needed to be investing and to win the confidence of customers and popularize the products.

3. Shortage of raw materials:

The shortage of required raw materials is also one of the big problems faced by women entrepreneurs. Women entrepreneurs find it difficult to procure the required raw materials and other necessary inputs for production in sufficient quantity and quality. The prices of raw materials are quite high and fluctuate.

4. Stiff competition:

Women entrepreneurs have to face severe competition from organized industries and male entrepreneurs having vast experience.

5. Limited managerial ability:

Women entrepreneurs may not be expert in each and every function of the enterprise. She will not be able to devote sufficient time for all types of activities.

6. High cost of production:


The high cost of production is another problem which undermines the efficiency and restricts development of women entrepreneurs. It is necessary to increase efficiency, expand productive capacity to reduce the cost of production.

7. Lack of entrepreneurial aptitude:

One of the biggest problems of women is the lack of entrepreneurial aptitude. They have no entrepreneurial bent of mind. The basic characteristics of an entrepreneur such as innovation, risk bearing etc. are absent in a women entrepreneur.

8. Low risk taking ability:

Women entrepreneurs suffer from the problem of low risk taking ability as compared to their male counterparts, because they have led a protected life.

They even face discrimination in the selection of or entrepreneurial development training. Inferiority complex, unplanned growth, lack of infrastructure, hesitation in taking quick decision also increases the rate of risk and chances of loss.

9. Family responsibilities:

One of the main duties of women in India is to look after the children and other family members. A very little time and energy is left for business activities.

A married woman entrepreneur has to make a perfect balance between domestic activities and business activities. The woman entrepreneur cannot succeed without the support and approval of husband.

Their success in this regard also depends upon supporting husband and family. Thus, occupational back grounds of families and education level of husbands have a great influence on the growth of women entrepreneurship.

10. Social attitudes:

One of the biggest problems women entrepreneurs is the social attitude in which she has to live and work. There is discrimination against women in India despite constitutional equality.

Women do not get equal treatment in male-dominated Indian society and male ego puts barriers in their progress.

11. Lake of Education:

The education level among women in India is very low. Majority of women are not aware about the technological developments, marketing knowledge etc. due to lack of education. Illiteracy further creates problems in setting up and smooth running of enterprises.

12. Lack of entrepreneurial training:

Large number of women is no proper and sufficient technical and professional training to set-up a new venture.

13. Legal Formalities:

Women entrepreneurs find it extremely difficult in complying with various legal formalities in obtaining licenses etc.

14. Travelling:

Women entrepreneurs cannot travel from one place to another as freely as men do. Women have some peculiar problems like staying out in the nights at distant places etc.

1. Finance cells:

A large number of various finance cells may be open to provide easy finance to women entrepreneurs. These special cells should provide finance to women entrepreneurs at low and concessional rates of interest and on easy repayment facilities.

Even these finance cells should manned by women officers and clerks. Efforts should be made to provide finance at the local level.

2. Marketing Co-operatives:

Marketing co-operatives should be established to encourage and assist to women entrepreneurs. Government should give preference to women entrepreneurs while purchasing their requirements.

These marketing co-operating will help the women entrepreneurs to sell their products on remunerative prices. This will help in eliminating the middlemen.

3. Supply of raw-materials:

The required, scare and imported raw-materials should be made available to women entrepreneurs at priority basis at concessional rate.

4. Educational and awareness:

The educational and awareness programmers should be arranged to change the negative social attitudes towards women. The attitude of elders needs to be changed about the potential of girls and their due role in society.

5. Training facilities:

Training and developments programmers play very essential role for the development of entrepreneurship. Special training schemes should be so designed that women can get full advantages.

Mobile training centers, part time training facilities etc. should be offered to attract more and more women to the training centers.

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