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'Low financial literacy, informal borrowing' Fempreneurs face age-old challenges

Livemint · 6m

Women entrepreneurs continue to face challenges such as lack of awareness about government financial schemes, dependency on family credits, informal borrowing, and lack of digital literacy. According to data from fintech company Tide, about 95% of women are unaware of government initiatives to support their businesses, leading them to seek credit from informal sources. Factors such as low decision-making power, lower risk aversion, and fewer financial facilities also hinder women's access to credit. Experts suggest improving financial literacy, implementing gender-sensitive banking practices, and providing training on financial management and business planning to address these challenges. Additionally, fintech startups are using advanced technology to revolutionize the landscape for female entrepreneurs, streamlining the loan application process and providing innovative financing solutions.