Problems of Women Entrepreneurship
Women entrepreneurs are the new engines for inclusive and sustainable business growth. They are the rising stars of economies in developing countries. However, they still struggle to take their rightful place in economic life. Even though more and more women are starting businesses globally, they still manage fewer businesses than men and run businesses that are in less profitable sectors, that grow more slowly and are ultimately more likely to fail.
Women entrepreneurship faces a number of problems. They are discussed below in detail.
1. Lack of finance:
Finance is the most important resource to initiate and organize a business enterprise. Women entrepreneurs suffer from the problems of finance due to some reasons. They normally initiate their enterprise with a low capital managed through their personal assets and savings. In most countries, the property is owned and controlled by males. In such a situation, they lack collateral for borrowing loans from financial institutions. Further, the financial institutions regarding the women entrepreneur to be less worthy of granting loans on the assumption that they can leave their business at any time. Hence, women entrepreneurs are compelled to rely on their friends and relatives for obtaining the capital needed to operate their enterprise.
Women also tend to raise smaller amounts of capital when it comes to financing business expansion. Moreover, they rely more heavily on internal than external sources of capital. The lower use Of outside financing can deprive women-owned enterprises of the capital needed to innovate, develop newsy products and services, hire key employees, and grow.
2. High competition:
Women enterprises lack abundant capitaL They are normally small in size. Their turnover is also comparatively low. In such a situation, they are not able to manage funds for advertisement. Similarly, they may not be able to maintain economies of scale. Due to these reasons, they may not be able to withstand the competition posed by the male entrepreneurs.
3. Limited mobility:
Women mobility is far below than the male. It is due to multiple reasons as societal structure, male-dominated society, increased family responsibility, customs, and traditions, etc. Visiting out of home for a longer period is difficult in the case of women. Similarly, the male dominating officials have a negative and humiliating attitude towards the women entrepreneurs. All these reasons may compel women entrepreneurs to abandon their idea of initiating enterprise.
4. Family relationship:
Traditionally, the roles and responsibilities Of vvor•nen are limited to the four walls of their house. They are primarily involved in looking after their children and other family members. They are also responsible for their household activities. In such a situation, it is difficult for the women to balance their roles between house and business. In most cases, they are not supported by their family members mostly by their husbands. Involvement in family affairs leaves litter time and energy to involve in business. The family background and educational level moderate such situation.
5. Lack of skill and education:
Women lack skill in some of the areas as manufacturing, construction, and some other technical fields. Hence, they are mostly involved in administrative jobs which require repetitive jobs. They normally carry service sectors business such as nursing, floriculture, beauty shops, public relations, education, hospitality services, retail, etc. Lack of skill has reduced the scope of women’s entrepreneurship.
Illiteracy is higher among women. They are less slanted towards management and technical education. They normally lack knowledge about business operations. Professionalism is comparatively lower with women. Hence, lack of education remains a major obstacle towards the way of women entrepreneurship.
6. Male-dominated society:
The society in Nepal is male-dominated. Although the constitution of Nepal regards both male and female equality, the reality seems completely different. Women are always seen in suspicion regarding their capability and roles. All these conditions pose threats for women to enter into entrepreneurship.
7. Low risk-bearing capacity:
Risk bearing is the most important component of entrepreneurship. Poor risk-bearing capacity has traditionally been a problem of women’s entrepreneurship. Women are less educated and are not economically self-dependent. They normally rely on others’ capital. The family support may also be poor. All these reduce their risk-bearing capacity.