According to a report published by Bain & Company, India has more women-owned enterprises than several nations, with an estimated number of 13.5 million to 15.7million MSMEs and agribusinesses.
In the Indian economy, the role of women entrepreneurs is substantial. They have emerged as the harbingers of change in society. According to a report published by Bain & Company, India has more women-owned enterprises than several nations, with an estimated number of 13.5 million to 15.7million MSMEs and agribusinesses. Despite this flourishing ecosystem, sometimes it becomes challenging for women to get business loans at affordable rates in circumstances of credit crunch.
This is where microfinance institutions have enabled several women entrepreneurs to have access to financial services, training, and network opportunities. This in turn has provided these entrepreneurs with increased networking opportunities, enhanced confidence, and more participation in social and economic activities.
The role of MFIs in empowering women
Earlier, not having easy access to credit posed a significant challenge for entrepreneurs, especially women residing in rural regions. However, MFIs have cleared the roadblock and, with their last-mile reach, have provided access to microloans. This access to smaller loan amounts is helping these women-led businesses grow.
Apart from the inconvenience of getting affordable credit, financial literacy was also an obstacle that these women faced. However, the MFIs have been instigating several programmes that focus on topics such as financial literacy, business management, marketing, and more. This instils awareness of choice and opportunities in these business owners, leading to more innovation and growth.
Every business owner requires an ecosystem of support and resources that can aid them in succeeding in their domain, which has been a bit of a challenge in rural regions. Here, MFIs have comprehended this issue and have been proactively catering to this need. By organising meets and providing networking opportunities, they are helping these women entrepreneurs build a robust support system.
The significant impact
As a result of these efforts, there has been a significant impact on the businesses and lives of these women entrepreneurs. As women have easy access to financial services and networking opportunities, they gain confidence in their ability to succeed. In addition, the financial literacy training aids them in making better financial decisions, leading to increased income and improved living standards. Moreover, the support from the MFIs enables women entrepreneurs to be economically empowered, which further paves the way for them to actively participate in other areas of public life.
Driving financial inclusion
MFIs in India have leveraged their relationships with the community and have been dedicated in offering exceptional financial services to the underserved, especially women entrepreneurs. By providing sufficient training via educational programmes and networking opportunities, they have improved the lives of these women, who are further making a remarkable impact on the society. As a result, MFIs have emerged as a critical catalyst in driving financial inclusion in India, which is not only supporting economic growth but also creating a bright future for all.
The author is the MD, CEO and Co-Founder, SAVE Solutions Pvt. Ltd.
