47% of Indian women face challenges in getting credit: Tide report

The report further claimed that the 95 per cent of women said that they are unaware of existing government financial schemes or initiatives to leverage for their business

The United Kingdom-based business financial platform Tide, in its report launched on Wednesday, said that 47 per cent of women still face challenges in getting credit.

Tide India surveyed over 1,200 new and existing business owners across age groups of 18-55 years from Tier-II towns for its first Bharat Women Aspiration Index (BWAI).

The report further claimed that 95 per cent of women said that they are unaware of existing government financial schemes or initiatives to leverage for their business.

However, the report has shown that there are 52 per cent of women entrepreneurs with access to financial credit, indicating that one in two entrepreneurs has access to finance.

 

Oliver Prill, global chief executive officer, Tide, said, “One of the biggest barriers to financial institutions supporting women entrepreneurs is the lack of reliable data by gender and region (especially Tier-II towns and beyond).

The lack of awareness, data, and other insights into the trends of women entrepreneurs in semi-urban and rural areas translates into a broader impact where targeted action and support, either financial or mentorship, can be lacking.”

The report pointed out that around 80 per cent of women recognise digital literacy as an important enabler and around 51 per cent, or one in two, business owners face hurdles in accessing digital tools for business.

Tide’s report highlighted that 38 per cent of women feel that accessing the customer is easier, while 31 per cent felt that first mover advantage in the local market gives them a competitive edge in business and talent hunting.

Gurjodhpal Singh, chief executive officer, Tide India, said, “The findings have inspired us to be a key partner in their success stories. Access to funding, mentors, and digital tools for doing business are tightly interwoven and interdependent. While women entrepreneurs from small towns report that they have access to credit, a large gap in their understanding of financial issues remains.”