SPJIMR > Ladies in Family Enterprise (LiFE) > Challenges faced by female entrepreneurs in family businesses
Jul 26, 2024

Challenges faced by female entrepreneurs in family businesses

SPJIMR Marketing & Communications Dept.

Women entrepreneurs are increasingly influential in India’s economy, yet they face unique challenges, particularly within family businesses. This blog delves into these challenges and offers actionable strategies to empower women entrepreneurs.

The landscape of women entrepreneurship in India

Despite significant progress, women entrepreneurs remain a minority in India’s business landscape. Current statistics show that only 14% of businesses in India are led by women, with approximately 8.05 million female entrepreneurs out of 58.5 million total entrepreneurs. This slow and uneven growth underscores the need for greater support for women in business.

Key challenges faced by women entrepreneurs

Financial constraints

Access to funding is a critical issue for women entrepreneurs. Around 90% of women-led businesses struggle to secure financing from traditional institutions due to a lack of collateral and investor bias. In India, property and financial rights are typically passed to male heirs, leaving women without assets in their names. Women often turn to microfinance loans and self-help groups for support. Alternative funding options and leveraging government schemes for women-owned businesses can help overcome these financial barriers.

Example: Kalaari Capital has initiated a fund exclusively for women entrepreneurs called CXXO, focusing on empowering women-led startups in India. This kind of support can significantly alleviate financial constraints for women entrepreneurs.

Gender bias and stereotypes

Gender bias in the business world manifests in various ways, from doubting women’s capabilities to stereotypes that limit their participation. Women in leadership often struggle to assert their authority, as qualities admired in men can be perceived as bossiness in women.

Developing confidence and assertiveness is crucial for women entrepreneurs. Skill development programmes like the Ladies in Family Enterprise (LiFE) programme by S.P. Jain Institute of Management and Research (SPJIMR) Centre for Family Business & Entrepreneurship (CFBE) help women entrepreneurs to advocate for themselves, especially within family businesses.

Work-life balance

Negotiating flexible work arrangements within the family business and seeking family support for household responsibilities can help women achieve a better work-life balance. Flexible programmes like the LiFE programme allow women to pursue education alongside their daily routines.

Limited support systems

Building a supportive network is crucial for entrepreneurial success, but women often face difficulties in this area. There are few female role models and mentors across industries, making it difficult for women to find guidance and inspiration.

Example: Falguni Nayar, founder of Nykaa, credits her success to a strong support network of mentors and advisors who guided her through the challenges of building a successful business.

Enrolling in women’s skill development programmes such as LiFE can help women network, interact, and join the SPJIMR Family Business & Entrepreneurship alumni community.

Risk-taking aversion

Societal norms and family duties often limit women’s ability to make independent decisions and take risks. Important decisions are typically made by male members. This lack of autonomy can impede women in managing business complexities.

Encouraging women to take calculated risks and providing them with skills to make informed decisions is vital. Programmes like SPJIMR’s skill development programme equip women with skills, fostering independence and confidence in entrepreneurship.

Conclusion

Women entrepreneurs in family businesses face challenges but are breaking barriers and contributing to India’s economic growth. By building strong networks, gaining confidence, and utilising available resources, women can overcome hurdles and achieve success. Programmes like the Ladies in Family Enterprise (LiFE) offered by SPJIMR’s Centre for Family Business & Entrepreneurship provide valuable training and support for women from business families.

Objectives of the LiFE programme

LiFE aims to unlock the potential of women in business families, often in overlooked roles. Through structured learning across diverse business dimensions, the programme aims to equip women with knowledge, skills, and confidence to contribute actively in their family businesses and pursue entrepreneurial ventures.

Benefits of the LiFE programme

Women who choose the LiFE programme by SPJIMR will benefit from:

  • A women’s enriching short-term management programme that offers networking opportunities and interaction with the SPJIMR Family Business & Entrepreneurship alumni community.
  • Sessions conducted by experienced academicians, industry experts, and family-managed business programme alumni.
  • A flexible programme structure that can be pursued alongside daily routines.
  • A successful programme completion certificate from one of India’s top B-schools.

Take the first step towards empowering yourself by Learning more about SPJIMR’s LiFE programme!

FAQs

  • What are the main challenges faced by women entrepreneurs in family businesses in India?

    Women entrepreneurs in family businesses face financial constraints, gender bias, work-life balance issues, limited support systems, and risk-taking aversion.

  • How do financial constraints affect women entrepreneurs, and what can be done to overcome them?

    Financial constraints limit women entrepreneurs’ access to funding from traditional institutions due to a lack of collateral and investor bias. Women often rely on microfinance loans and self-help groups. To overcome these barriers, exploring alternative funding options and leveraging government schemes for women-owned businesses is crucial.

  • What role does gender bias play in the business world, and how can women entrepreneurs address it?

    Gender bias manifests as scepticism about women’s capabilities and stereotypes, limiting their industry participation. This bias hampers women in asserting authority and gaining recognition. Women entrepreneurs can combat gender bias by developing confidence and assertiveness through short-term management programmes like the SPJIMR’s Ladies in Family Enterprise (LiFE) programme.

  • Is it possible for women entrepreneurs to achieve a better work-life balance?

    Women entrepreneurs can achieve better work-life balance by negotiating flexible work arrangements within the family business, seeking support for household responsibilities, delegating tasks, and prioritising self-care. Flexible short-term management programmes such as SPJIMR’s LiFE programme facilitate education alongside daily routines, promoting balance.

  • Why is building a support network important for women entrepreneurs, and how can they develop one?

    Building a support network is crucial for entrepreneurial success as it provides guidance, inspiration, and opportunities for collaboration and mentorship. Women can struggle to find female role models and mentors in male-dominated industries. Enrolling in short-term management programmes like SPJIMR’s LiFE programme helps build networks and fosters a supportive alumni community.

  • How can women entrepreneurs develop their risk-taking abilities?

    Women entrepreneurs develop risk-taking abilities by gaining decision-making experience and overcoming societal norms and family obligations. Encouraging calculated risks and providing skills for informed decisions are vital. Short-term management programmes like SPJIMR’s LiFE programme fosters independent, confident entrepreneurship through skills development.

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