14 Problems Faced by Women Entrepreneurs and Overcome Challenges

Problems Faced by Women Entrepreneurs

These are the problems faced by women entrepreneurs explained below:

  1. Shortage of Finance
  2. Marking Problems
  3. Shortage of Raw Materials
  4. Stiff Competition
  5. Limited Managerial Ability
  6. High Cost of Production
  7. Lack of Entrepreneurial Aptitude
  8. Low Risk-Taking Ability
  9. Family Responsibilities
  10. Social Attitudes
  11. Lack of Education
  12. Lack of Entrepreneurial Training
  13. Legal Formalities
  14. Traveling

Shortage of Finance

Women entrepreneurs always suffer from inadequate financial resources and working capital. The complicated procedure of bank loans also creates a lot of problems in getting the required finance. Women entrepreneurs even face problems in getting the requisite working capital for financial day-to-day business activity.

Women entrepreneurs have to depend upon their personal savings and loans from family friends most of the women entrepreneurs fail due to a lack of proper financing facilities because finance is the lifeblood of every business activity.

Marking Problems

Women entrepreneurs often depend upon the middlemen for marketing their products. They exploit the women entrepreneurs. Women entrepreneurs also find it difficult to study the market trend.

A lot of money is needed for advertisement in these days of stiff competition from male entrepreneurs. Women entrepreneur also lacks the energy and extra effort needed to invest and win the confidence of the customers and popularize the products.

Shortage of Raw Materials

The shortage of required raw materials is also one of the big problems faced by women entrepreneurs. Women entrepreneurs find it difficult to procure the required raw materials and other necessary inputs for production in sufficient quantity and quality.

Stiff Competition

Women entrepreneur has to face severe competition from organized industries and male entrepreneur have vast experience in the globalized market.

Limited Managerial Ability

Women entrepreneurs may not be experts in each and every function of enterprise. She will not be able to devote sufficient time to all the activities.

High Cost of Production

The high cost of production is another problem that undermines efficiency and restricts the development of women entrepreneurs. It is necessary to increase efficiency and expand productive capacity to reduce the cost of production.

Lack of Entrepreneurial Aptitude

One of the biggest problems of women is a lack of entrepreneurial aptitude. They have no entrepreneurial bent of mind. The basic characteristics of the entrepreneurs such as innovation, risk bearing, etc. are absent in women entrepreneurs.

Low Risk-Taking Ability

Women entrepreneur suffers from the problem of low risk-taking ability as compared to their male counterparts. Inferiority, complex, unplanned growth, lack of infrastructure, and hesitation in making quick decisions also increase the rate of risk and chances of loss.

Family Responsibilities

One of the main duties of women in India is to look after the children and other family members. Very little time is left for business activities. A married entrepreneur has to make the perfect balance between domestic and business activities.

Women entrepreneurs cannot succeed without the support and approval of their husbands. Their success in this regard also depends upon the supportive husband and family.

Social Attitudes

One of the biggest problems of women entrepreneur is the social attitudes in which she has to live and work. There is discrimination against women in India despite constitutional equality. Women do not get equal treatment in male-dominated Indian society and the male ego puts barriers in their success.

Lack of Education

The education level among women in India is very low. The majority of women are not aware of technological developments, marketing knowledge, etc. due to lack of education, illiteracy further creates problems in setting up and smooth running of enterprises.

Lack of Entrepreneurial Training

A large number of women have no proper and sufficient technical and professional training to set up a new venture.

Legal Formalities

Women entrepreneurs find it difficult to comply with various legal formalities in obtaining licenses.


Women entrepreneurs cannot travel from one place to another as freely as men do. Women have some peculiar problems like staying out at night at distant places, etc.

Overcome Challenges Faced by Women Entrepreneurs

The following measures may be adopted to solve the problems faced by women entrepreneurs in India are as follows:

  1. Creation of Finance Cells
  2. Concessional Rates of Interest
  3. Proper Supply of Raw Materials
  4. Changing Social Attitudes
  5. Providing Training Facilities
  6. Setting Up Marketing Co-Operative

Creation of Finance Cells

The commercial banks and other financial institutions must create a special cell for providing easy finance to women entrepreneurs.

Concessional Rates of Interest

The women entrepreneurs should be provided finance at concessional rates of interest and at easy repayment basis.

Proper Supply of Raw Materials

Women entrepreneurs should be ensured of proper supply of scarce raw materials on priority basis. A subsidy may also be offered to make the products cost competitive and reasonable.

Changing Social Attitudes

It is essential to change the negative social attitude towards women. The parents need to be made aware of the potentiality of the girls and their role in the family and society.

Providing Training Facilities

Training is necessary for the growth of entrepreneurship. Training facilities help the women entrepreneurs to undertake the venture successfully as it provides required skills and experience to start and run the enterprise. To attract the more and more women entrepreneurs, additional facilities like stipend, transport facilities tc; can be offered.

Setting Up Marketing Co-Operative

Proper encouragement and assistance should be provided to women entrepreneurs for setting up marketing co-operatives. These co-operatives shall help in getting the inputs at reasonable rate and they are helpful in selling their products at profitable prices.

Hence, middlemen can be avoided and women entrepreneurs to derive the benefits of enterprise. Women have the potential to set up and manage business enterprises of their own successfully. But they need guidance, encouragement and support.

Government and public enterprises should serve the women entrepreneurs on priority basis. Women can join the main stream of national economy and contribute to the country’s economic development with the help of family members and the government.

FAQs Section About Problems Faced by Women Entrepreneurs

What are the problems faced by women entrepreneurs?

The following are the problems faced by women entrepreneurs:
1. Shortage of Finance
2. Marking Problems
3. Shortage of Raw Materials
4. Stiff Competition
5. Limited Managerial Ability
6. High Cost of Production
7. Lack of Entrepreneurial Aptitude
8. Low Risk-Taking Ability
9. Family Responsibilities
10. Social Attitudes.