May - Jun 2012 |  women entreprenurship beyond SMEs
By Geeta Krishnan, Kavil Ramachandran

Scaling up from a micro or small business to a medium-sized one requires significant infusion of capital. Access to capital can be a challenge for women entrepreneurs for a number of reasons. The first reason is the nature of the entrepreneur herself. Women entrepreneurs are usually risk-averse, shying away from incurring debt beyond a small percentage of their visible earning capacity of the next year. They prefer to be content with modest growth and limited liabilities. A second challenge comes from the husband, especially if he is not part of the business directly. If he runs a different business or is employed elsewhere, the husband tends to advise his wife to operate, to the extent possible, within her means. The third problem is that banks seem to be chary of giving loans to purely women-owned businesses, sometimes even suggesting that the women include their husband as a business partner, even when the businesses are small. This is a peculiarly satisfactory win-win-win situation that ensures that women-run businesses are successful but remain small.

 
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