Fintech companies in India have a significant role in promoting women entrepreneurship at micro and macro levels.
The overall progress of a region depends on equal opportunities for everyone without any discrimination or preference. When women of a country are empowered, it drives economic growth and development and creates life lessons for young female entrepreneurs to drive their business ideas. Even though the government has come up with many initiatives to promote entrepreneurship in the country, there are a few hurdles for people (especially women) to put their ideas into action.
Lack of finance options is one of the most crucial roadblocks faced by women entrepreneurs in India. As the role of fintech companies has expanded significantly in the past few years, one can expect that these firms will drive entrepreneurship among women in the country. There are different ways through which fintech firms would enable young women entrepreneurs in their entrepreneurship journey:
Understanding the constraints in access to financial institutions
Financial inclusion is crucial for the entrepreneurship journey of any individual. The concept of financial inclusion refers to the accumulation of savings, accessing financial institutions to invest, and availing various services provided by such organizations. In respect of entrepreneurship, it is crucial to understand that having a business idea and executing the same on any level is a key to this process. Rather than thinking about being a start-up or a unicorn, the most crucial aspect is to get the idea going by initiating a business. However, despite having many ideas, women entrepreneurs fail to execute them at the micro-levels. In a country like ours, the challenge of accessing financial institutions is still a significant hurdle before entrepreneurship. Fintech companies can reach the end-users without the need to have a comprehensive infrastructure (physical). Hence, from availing of finance to getting investment tips, women entrepreneurs can connect with a fintech company and start their journeys.
Integration of fintech, financial inclusion, and government initiatives
The efforts of the government in promoting entrepreneurship through easing finance availability are often underappreciated. Several initiatives have started with the introduction of UPI (Unified Payment Interface) along with PMJDY and the Direct Benefit Transfer scheme, due to which fintech firms have reached almost all parts of the country. This has led to the promotion of financial inclusion. With the increased volumes of digital payments and easing the due diligence requirements, fintech companies have ensured that women will be educated about government initiatives, and becoming a beneficiary of such schemes would no longer be a bureaucratic process.
Improved financial inclusion for women entrepreneurs
Different studies have suggested that the overall trend of savings and investments among women in India has improved with increased usage of mobile apps, wallets, and platforms. With a friendly regional interface, fintech firms work closely with women entrepreneurs to reduce their reliance on text and western iconography. In a way, fintech companies are promoting micro-entrepreneurship by facilitating small and microfinance, more accessible credit, and quick resolution of their financial requirements and queries. The overall time required to avail such services has reduced considerably, and with UIDAI-supported platforms, women entrepreneurs can use mobile banking solutions (MFS) if integrated with microfinance institutions (MFIs).
Fintech companies in India have a significant role in promoting women entrepreneurship at micro and macro levels. These firms understand the challenges faced by female business owners in executing their ideas. Hence, by providing finance and supporting government initiatives, these fintech companies will ensure better financial inclusion and address the core business issues that women are often deprived of.
Source: Business World