Despite low NPAs, women-led businesses struggle to get funding

The information about the various MSME schemes is not reaching the last mile. Awareness campaigns spotlighting women-focused schemes will bring more women into the fold - Priya Gazdar, Chairperson Elect, FLO Hyderabad

Hyderabad: The Centre and State government have framed and rolled out schemes specifically designed for women-led MSMEs. But, are these entrepreneurs made aware of the available government initiatives so that the benefits can be utilised to its fullest… questions Chairperson Elect of FLO (Ficci Ladies Organisation) Hyderabad Priya Gazdar.

According to her the governments at both the Centre and the State levels are doing commendable work in encouraging women entrepreneurship. However, she states, “the fact remains that the information about the various MSME schemes is not reaching the last mile. Awareness campaigns spotlighting women-focused schemes will bring more women into the fold.” Citing statistics, the Director and CEO of RBC Worldwide says that women-owned businesses have the lowest NPAs (non-performing asset), despite which the financing needs of around 70 per cent of women-owned businesses stay unmet. Their thin file status so far as credit history is concerned an impediment most women entrepreneurs are faced with while applying for financial assistance. “If financial service providers are advised to adopt a gender-intentional and differentiated creditworthiness assessment mechanism, it will help more women entrepreneurs access loan and investment funds easily,” Gazdar adds.

Besides government schemes and financial assistance, she suggests the government to design educational programmes and capacity-building workshops. She says, “Though in pockets within the MSME universe - such as backend operations in IT and Banking - women’s participation in higher positions is better, most women in the manufacturing sector are hired at entry level positions. Work-targeted educational programmes and capacity-building workshops can empower women to overcome such challenges and thrive in both professional and entrepreneurial roles.”