herSTART | IAS GYAN

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The President of India launched the 'herStart' -- a start-up platform of Gujarat University for women entrepreneurs.
- On the occasion, the President highlighted that “If the states move forward by learning and adopting each other's successful models, then India will ensure its place as a developed country during the Amrit Kal”.
The President also inaugurated various projects related to education and tribal development at Gujarat University.
The president said that the 'HerStart' initiative will link women entrepreneurs with various private and government platforms.

Women Entrepreneurs in India

Nearly 3 million micro, small, and medium enterprises with full or partial female ownership contribute more than 3 % of industrial output and employ over 8 million people
78% of women's enterprises belong to the services sector.

Concerns

The social status of women and prevalent social norms in India influence financial institutions and the ability of women entrepreneurs to access finance.
Absence of collateral security and guarantee/support.
Limited financial awareness and understanding of financial products/ services.
Bank branches are unwelcoming to women customers.
Lack of confidence or hesitation to approach financial institutions.
The lack of reliable information about financial management makes women entrepreneurs less attractive to financiers.

Way Forward

Access to finance is key to the growth of the MSME sector in India.
Microfinance plays a key role in expanding access to finance for low-income women aspiring to become entrepreneurs.
Training programs on human resources, financial management, business management, marketing, and financing the venture.
Learning from Global Best Practices for Women-owned Enterprise Financing; Westpac Banking Corporation (AUSTRALIA), American Express (USA).
DFCU BANK in UGANDA created a “land loan” specifically for women. Women can take a loan to purchase property that they can later use as collateral for business loans.
Ensure access to business and financial management training through the bank’s partnerships with local universities.
Simplify the approval process to reduce the number of visits to branches.
Explore the potential for “doorstep financial delivery model” branchless banking and other innovative delivery systems tie-ups with NGOs, microfinance institutions, and SHGs.
Remove dependence on male members of the family as a prerequisite to access finance.
Promote a friendlier environment for women customers.
Governments should promote Equal rights to property, joint property registration, and land ownership of women.
Formulate women-focused policies to promote women-owned enterprises. Create online customer care support.