Most women entrepreneurs seek tailored financial products to meet small business needs: Report

By Admin

28 Apr, 2025

Growing Demand for Customised Financial Solutions

A recent report highlights that most women entrepreneurs running small businesses, especially in tier II and smaller cities, are seeking tailored financial products to meet their unique business needs. Despite the presence of various schemes, nearly one-third of women entrepreneurs still face significant challenges in accessing credit. The Bharat Women Aspiration Index (BWAI) 2025, released by business management platform Tide, stresses that strict collateral requirements and low financial literacy have created a cycle of exclusion for many women.

Barriers to Financial Access and Urgent Need for Policy Changes

According to the report, urgent policy reforms are needed to foster alternative credit options, such as collateral-free microloans and gender-sensitive lending practices. Women entrepreneurs in smaller towns are ambitious, digitally aware, and determined to grow their businesses, but structural gaps in finance, visibility, and networking continue to hold them back.

Survey Insights: Skills Development and Entrepreneurial Aspirations

Tide conducted a survey of over 1,300 women business owners aged 18-55 across non-metro cities for the second edition of BWAI. Key findings include:

• 58% of respondents emphasised the need to enhance their financial and business management skills.
  
  

• 12% expressed a strong desire to develop digital competencies to better manage their businesses.
  
  

Challenges Women Entrepreneurs Face

The majority of women operate in micro and small enterprises, playing a crucial role in uplifting communities beyond urban centres. Gurjodhpal Singh, CEO of Tide India, noted that these women embody the spirit of "Nari Shakti," breaking social and institutional barriers. However, obstacles such as limited access to formal networks, digital tools, and financing remain widespread.

Alarmingly, 28% of respondents indicated they always require the involvement of a male family member when seeking funding, representing a significant hurdle for independent women entrepreneurs.

Recommendations for Empowerment

The BWAI report recommends focused investment in building digital skills, raising awareness about existing support programs, and fostering strong networks and mentorship opportunities. Tackling deep-rooted societal biases is also essential to ensure that women entrepreneurs can realize their aspirations and drive sustainable economic growth.

Tide’s Advocacy for Women Entrepreneurs: The Udaan Chronicles

To support this movement, Tide has launched a multi-city advocacy roadshow called The Udaan Chronicles. This initiative aims to create meaningful change by addressing grassroots challenges faced by women entrepreneurs. Through expert-led mentoring sessions, the programme offers direct support to women who often lack access to formal networks and financial literacy resources.

By fostering peer networks and promoting the spirit of Naari Shakti, Tide’s initiative hopes to spark a ripple effect of visibility, belief, and empowerment across India's entrepreneurial landscape.