Most women prefer to bootstrap their business in India. A government survey shows that almost 79% of the women establishments are self-financed. The second important source i.e. donation or transfer from other agencies contributed 14.65%.
Women entrepreneurs find it easier to turn to family to start a business with money that already ‘belongs’ to them. Anjali Raina is a baker from home. She learnt it all on the internet, initially for her children and later when they started school, she realised there was an opportunity to tap. Her cakes were appreciated by friends in her kitty parties. “I started with 30,000 rupees of my own from my savings,” says baker Anjali Raina in Jalandhar. “Today I work from home and deliver savouries to people in the area.” Raina is not alone. Majority of women who begin businesses ‘feel intimidated to use someone else’s money to start out.’ Most of them are keen to first build a proof of concept.
The next important sources were Assistance from Government and Borrowing from financial institutions with contributions of 3.4% and 1.1 % respectively.
Special Funding For Women Entrepreneurs at Lower Rates
Cabinet has also approved Rs 8,000- crore funds that will stand guarantee for loans to new ventures and also announced ‘Stand up India’ scheme for credit facilities to SC, ST and women entrepreneurs at lower rates.