Funding woes: Majority of women entrepreneurs in India depend on personal savings

The survey found that 51 per cent of women entrepreneurs rely on personal savings or emergency funds to meet their business needs. Apart from personal savings, 25 per cent of women turn to their families, including spouses and other family members, for financial support.

More than half of India's small business owners that are females are using their personal savings to fuel their businesses, highlighting their financial independence and self-reliance, according to a recent survey conducted by NeoINSIGHTS. The survey, which covered over 3,000 women business owners across 20 cities, sheds light on the financial strategies, challenges, and support systems that shape their entrepreneurial journeys.

The survey found that 51 per cent of women entrepreneurs rely on personal savings or emergency funds to meet their business needs. Apart from personal savings, 25 per cent of women turn to their families, including spouses and other family members, for financial support. This is especially common in industries that require higher capital investments. Meanwhile, 24 per cent use other sources of funding, such as loans, grants, or investors.

Women entrepreneurs are not only managing their businesses independently but are also taking proactive steps to ensure financial stability. The survey pointed out that around 93 per cent women actively manage their finances, ensuring they meet their EMI payments on time and avoid excessive borrowing. This focus on financial discipline helps them build creditworthiness and sustain long-term growth.

Despite growing confidence and financial awareness, young women entrepreneurs aged 20-30 face significant challenges, with 17 per cent experiencing resistance in their early years. Gender biases, limited financial knowledge, fluctuating market conditions, and a lack of mentorship networks for women are some of the key barriers they encounter.

However, the survey also highlighted positive trends in support and respect for women entrepreneurs. An encouraging 88.47 per cent of women who are key decision-makers feel supported and respected in their roles, indicating a shift towards greater acceptance of women in business leadership.

While women business owners are becoming more financially independent, balancing their professional and personal lives remains a challenge. Many entrepreneurs acknowledge the crucial role of family support in enabling them to manage both aspects effectively.

The findings of this survey reflect a growing ecosystem where women entrepreneurs are taking charge of their financial future while navigating challenges.