65% Of Self-Employed Women In India Rely On Personal Savings For Business Funding: Survey

ENA MSME 2024-10-01 16:07:47 New Delhi, Oct 1 (KNN) A recent survey conducted by Crisil and DBS Bank India has shed light on the financing preferences and challenges faced by self-employed women entrepreneurs in India. The study, which polled 400 respondents, offers insights into funding sources, desired support from financial institutions, and utilisation of government schemes. According to the findings, personal savings and financial assistance from family or friends remain the primary source of business funding for 65 per cent of self-employed women. Bank loans, preferred by 21 per cent of respondents, emerged as the second most popular option. Other financing avenues, including government schemes, non-banking financial companies (NBFCs), and venture capital, each garnered 3-4 per cent preference among the surveyed entrepreneurs. The survey also highlighted areas where self-employed women seek additional support from banks beyond traditional loans. Mentorship programs were requested by 26 per cent of respondents, while 18 per cent expressed interest in guidance navigating government schemes. Additionally, 15 per cent called for assistance in digitalising financial processes. Government schemes, despite their potential benefits, appear to be underutilised. The survey revealed that 34 per cent of respondents had not availed themselves of any government initiatives for their businesses, with 24 per cent citing lack of awareness as a primary reason. Among those who did utilise government support, 83 per cent primarily accessed three schemes: Mahila Udyam Nidhi Yojana, Stree Shakti, and Pradhan Mantri Mudra Yojana. When selecting a bank for loans, 39 per cent of respondents emphasised the importance of competitive interest rates and flexible repayment terms. However, the loan application process itself presents significant hurdles. A majority of self-employed women (64 per cent) reported challenges such as extensive documentation requirements, high credit score thresholds, complex application procedures, and delays in loan approval and disbursement. This survey provides valuable insights into the financial landscape for women entrepreneurs in India, highlighting both opportunities for improvement and areas where targeted support could enhance their business growth and success. (KNN Bureau) 39465 https://knnindia.co.in/news/newsdetails/msme/65-of-self-employed-women-in-india-rely-on-personal-savings-for-business-funding-survey 2024-10-01 16:07:47 knnindia.co.in 65% Of Self-Employed Women In India Rely On Personal Savings For Business Funding: Survey