Did you know that women-owned businesses in India are expected to grow by 90% in the coming five years? Besides, nowadays, various lenders offer business loans with easy eligibility to help women kick start their ventures.
The past 20 years witnessed a momentous change in women entrepreneurship. Numerous successful businesswomen like Vandana Luthra, VLCCfounder, the acclaimed fashion designer Ritu Kumar, Vani Kola, the founder of Kalaari Capital, and many more took centre stage.
In this article, we will look at the evolution of businesswomen development in India.
Changes from the 1960s to the present day
During the 1960s, India faced major financial turmoil. However, the economic instability also resulted in women starting small-sized businesses as an additional source of income. The most popular businesses included food, pottery, and bangle making.
The 1970s continued the initial momentum, with increased women participation in public and professional arenas. A notable development was Biocon, founded by Kiran Mazumdar-Shaw, a biopharmaceutical company that has customers in over 120 countries today.
Additional Read: Small Business Ideas for Women to Start their Business Post Pandemic
The 1980s introduced technological advancement to women entrepreneurship. As India prioritised education for girls, more and more women opted for professional studies and started their ventures.
The 1990s saw a surge of women entrepreneurs due to several government schemes. The 85th five-year plan gave rise to the Entrepreneurship Development Programmes and Prime Minister Rojgar Yojana, which paved the way for 1,96,000 businesswomen. The Women in Agriculture scheme and Khadi and Village Industries Commission was also introduced to promote businesses run by women in rural areas.
The 21st century brought along even more female entrepreneurship development schemes. The initiatives included the Annapurna Scheme in 2000, Udogini Scheme in 2006, the Bharatiya Mahila Business loan scheme in 2013, and Mahila Udyam Nidhi Scheme in 2021. It became increasingly easy for female entrepreneurs to develop their skills, secure a loan at relaxed business loan eligibility, and run their businesses.
The road ahead in encouraging female entrepreneurship
According to a study published in 2021, women contribute only about 20% of the MSME sector in India. And as compared to 50 million male entrepreneurs, only over 8 million women own businesses. So, while the country has seen a rise in women entrepreneurship in the past 60 years, there is a long way ahead of us to encourage women business owners and tip the scales.
Banks, NBFCs, and central and state governments are addressing the disparity through several financial initiatives for boosting women entrepreneurship.
Additional Read: Check Out the Loan Schemes in India for Women to Start Business
Over to you
If you are looking for business loan, turn to Tata Capital. We offer collateral-free multi-purpose business financing for women entrepreneurs. Score attractive business loan interest rates starting at 19% and structured EMI options for flexible repayment. You can access loan amounts ranging from Rs. 5 lakhs to Rs. 75 lakhs and fulfil your business’s short and long-term financial needs.
Get loan tenures of up to 3 years and enjoy a seamless borrowing experience with us. What’s more, we provide easy business loan eligibility and quick disbursals.
To know more, visit our website or approach your nearest branch!