Nobel laureate of economics Mohmmed Yunus started an experiment in Bangladesh. The outcome startled the male chauvinistic world –
women almost 100 per cent return their loans, both because of honesty and succeeding in small scale businesses.
Micro-credit has grown leaps and bounds post this study. Now, the trust has gone to the level that the government of India prefers to deposit money of gas cylinders in women’s accounts under Ujjwalala scheme.
While they are succeeding at the small scale or in cottage industry, they are not so much successful when the scale of business grows bigger.
We have only a few names like Kiran Mazumdar Shaw of Bicon as a first generation successful entrepreneur challenging the male fiefdom.
There not many Kirans. But, why can’t there be more Kirans? We need more of them to drive a social change and the economy.
Why is it happening?
Women have part entrepreneurship skills – hard work, trust and care for customers and products and services. But, they are lacking expertise and confidence in finance, operations, outreach and management.
The government has a number of schemes of for women entrepreneurs.
Key problems they face are because of lack of exposure in the free market. They have been groomed to stay in safe environments, protected from unknown people. As a result, they do not get exposure
of financial planning, marketing and management. Another reason of their not doing well is very societal as they do not have any collaterals as a pledge to access finance. Indian male chauvinistic society does not allow women to have property in their name in most cases. So, they
cannot pledge any property.
They get trapped in their small environment. Despite the fact that the government has schemes for entrepreneurial support in terms of training and making available finances, Most of them are not able to explore these options.
We very well know that most of handicraft sector has strong footprints of creativity of women, yet a leap of faith is missing to turn them big.
Most surprisingly, South Asian women have shown to the world that they can even turn around an economy with Bangladesh having becoming a textile hub on the back of efforts of women only.
Bangladesh is now one of the fastest growing economies of the world.
What women need are access to expertise of financial, operations and marketing planning at a small scale. Women are known to be better at seeking cooperation but they can only do so in their own limited environment. If expertise in that environment is limited, they also are deprived of a potential to grow big.
Things are however, changing for women who have college and professional education in cities. They are confident to look around and tap expertise. As a result, they are doing better than those who are just literate.
Even small women entrepreneurs can grow if right financial and marketing advice and linkages are available to them. They need to consult experts to help them grow big. The successful ones keep on tapping the knowledge pool available in the market and the failed ones are clueless. The winner has a financial professional to plan one’s financial twists and turns.
Great insights. Yes lack of confidence in financial management is what keeps women entrepreneurs behind. Hopefully this is changing.