Entrepreneurship a need, not a choice

Having limited opportunities for economic advancement, many women in rural and semi-urban areas turn to - what we call at Naari Capital - Need Entrepreneurs. Generally, women in rural areas often lack access to traditional forms of employment. They may not have the education or skills required for formal jobs, nor as a cultural norm it is to aspire for one for a variety of reasons. The ability to earn an income, therefore, is limited to resources available - for example, traditionally, women do engage themselves in activities such as selling milk or eggs/meat or forest produce in the nearby area. Most of these economic actives are season in nature. Some women may also set up a small shop or sewing, primarily low operational costs businesses, run from home. Whatever it is, having access to own incomes mean, women can control their own income and destiny. It also helps build financial security. When women have their own businesses, they are able to generate income that can be used to support their families and invest in their future.

Of course, entrepreneurship is not without its challenges. Like any entrepreneur, marginalised women also find access to capital is the number one challenge. The second comes - how to run a business - the technical knowledge of creating the product and managing the inflow and outflow. While many entrepreneurs learn as they go along, these days there are number of NGOs, Government schemes and social entrepreneurs delivering quality training to women for entrepreneurship.

However, the access to capital remains the main challenge. While there are many sources which help women access the needed capital -

1) govt schemes such as Mudra Loan or Ajeevika or MSME scheme (SFURTI)

2) NGOs support from CSR donors

3) Peer to peer lending

4) Loans from the Self Help Groups (SHGs) and Cluster Fund

4) loan from familiy/friend and moneylenders

In a survey of women entrepreneurs (existing and aspiring), about 95% of women cite the trouble of accessing capital, despite having various sources to turn to. The major reasons are - a) delay in deployment b) size of the capital approved c) frequent need of the capital.

Aside from the capital, the new markets pose the second challenge. Often these are the first generation entrepreneurs who require frequent but small financial assistance and training to build confidence, networks and customer base. About 85% of the women entrepreneurs in the survey also suggested that until they created a robust business plan, it was not known to them that they were not making profits. It is only through training, peer learning and hands-on experience of running a business, they learn to persevere and improved the business acumen.

The need for the capital becomes intense by the time they have acquired some mastery in their trade/business, but by that time, most of the initial supporters are gone due to 'projects' have ended. 90% of these entrepreneurs have said that they would want to secure a bigger loan to scale their businesses and look for newer markets. But the access to capital is not easy, moreover, it is also a struggle to manage the time, while managing the business in securing the next level of capital.

Often the financial institutions underwrite the loans basis the financial history, which many women are unable to provide.

Entreprneurial journey is very lonely and especially for women that Naari Capital is targeting. These are the women who are in some ways the anomalies in their own communities, but they are also the role models. Taking risks is not considered a woman's domain and therefore, Naari Capital looks at

a) access to capital is the breakthrough, especially at the stage of women's busiensses when it is needed the most to scale their operations. And

b) being the aggregator to harness the power of entrepreneurship ecosystem in India.

Naari Capital aims to change the game of female entrepreneurship in India by fostering micro-economies to boost macro economics of the country.