The growth of women-led micro and small business houses is pacing fast. In fact, today, about 20% of micro and small business houses in India are led by women, especially in rural areas of the country. These companies contribute to the rural economy and generate employment for rural-based women.
Speaking about India, women still have to face several challenges in terms of finances and support. The amount of mental support offered to women in this men-centric society is still low. However, with the help of motivated women-led small businesses, today such challenges are falling weak. With proper skill development & vocational training for tribal communities, many small business houses are thriving and flourishing today.
Challenges of Women-Led Small Businesses
Before we get to know about the impacts of women-led businesses on society, it is essential to understand the challenges faced by women in society.
- Cultural Barriers: In the rural belts of India, women are considered to stay at home completing their domestic responsibilities while men go out to work. So, many families do not allow women to start anything of their own, even when she has talent and interest to do so.
- Financial Barrier: Another major challenge that many women have to face is that of gathering funds for the startup. Comparatively, loan rejections are much higher in the case of women entrepreneurs than men. While there can be several bases to this, such as credit scores and lack of formal skills, cultural bias is also one of the challenges. There are cases when financial banks may ask women from rural areas to get a ‘No Objection’ letter from their family.
- Lack of Education or Training: While most women in cities are highly educated, many women in the rural areas of India may not have this privilege. So, if someone from the rural part of the country wishes to start a business, a lack of formal education and training may also come as a hindrance.
Despite such challenges, women-led small businesses have shown a major impact on rural economies today. Let us move ahead to know about these impacts and contributions.
Economic Contributions of Women-Led Small Businesses
When a woman starts her small business, it impacts the rural economy in several ways. Let us find out some of the most common and impactful ones.
- Economic Growth: Most small businesses have a purpose of delivering products and services that are much needed in the market or the area of the business’s origin. For example, vermi-compost is one such women-led small business house product that is useful for farmers as well as for gardeners.
- Job Opportunities: There is a saying that women can cure a society of poverty. The women-led firms are proving this point correct in all measures. These small business houses open job opportunities for other women. While in other areas, rural women are challenged for their abilities and dedication, women entrepreneurs understand such challenges and open new opportunities for them. For example, the usual domestic women can contribute to making food items such as Chicken Biryani Masala for those customers who want easy preparation of the dish. Why just women? These small industries also open up job opportunities for several men in society.
- Addition to Value to the Economy: The thinking process of a woman is much different than that of a man, even in terms of investment and reinvestment. It has been noticed that a woman entrepreneur’s saving strategies are much more efficient than those of a man. Also, one of the major aspects is that women-based small businesses mostly prefer to reinvest the profit for the benefit of the community, adding value to the rural economy.
- Diversified Options: Today, women do not just stick to cooking. Female-run business houses have shown ample diversification today in terms of products and services. Apart from food items and clothing, today you will also come across options like Neev Tote Bag, which offers a sustainable product to society and job opportunities to various women around.
Thus, the increasing number of women-led small businesses has a massive positive impact on the rural economy. Also, it has shown several social impacts that show remarkable results in the future.
Social Impacts of Women-Led Businesses
Any business is considered healthy if it shows signs of positivity for society as well. Most women entrepreneurs start their small businesses in rural areas, keeping in mind the necessities of the society. Hence, they have a social impact for sure. Here are some more ways how women-led businesses impact society.
- Women Empowerment: Gender gap is a massive concern even today in India. Rural women are mostly expected to perform domestic responsibilities and take care of their children at home. When a single woman entrepreneur stands to create job opportunities for such women, it helps them in gaining control of their lives, breaking the age-old shackles of domestic responsibilities. An empowered woman is capable of making better decisions and leading a much happier life.
- Improved Livelihoods: As expenditure is increasing with each passing day, it is always a better way out when both men and women are employed in a family. When income doubles, the standard of living automatically improves. The family enjoys better healthcare and offers better education to the children for a secure future ahead.
- Enhancing Community Development: Most women entrepreneurs think about the prosperity of society before thinking about profit. Hence, sustainable products are one of the major outcomes of these women-run businesses. No doubt, it adds to the overall development of the community.
In the race of men-ruled markets, women-centric businesses are also catching up fast. Various names like Neev Store are known to offer livelihood and futuristic opportunities to women today. Also, it focuses on several social and cultural factors, contributing positively towards the rural economy of India.