How Banks can encourage women entrepreneurship!

Modern day women are a force to be reckoned with, and these days you see women in many male-dominated jobs, living independent lives and proving time and time again how resilient and adaptive they can be. There are even women who have taken on pivotal roles within their families, have gone overseas on jobs and are helping their families to make ends meet when they send money to Sri Lanka, working hard so that their families can live and enjoy a better life.

In recent times we have seen many women entrepreneurs being highlighted in the global economy. A woman entrepreneur is a woman who starts, organises and runs their own business, and you will see them across industries, from technology to finance and healthcare to retail.

Women entrepreneurs are an important asset in today’s world. Why? Here are a few reasons.

1.      Economic growth: Women-owned businesses contribute significantly towards the global economy, by creating job opportunities, stimulating economic growth and contributing towards GDP, with many studies showing that increasing the number of women entrepreneurs can lead to higher economic growth rates.

2.      Diverse perspectives: It has been found that women bring unique perspectives and problem-solving approaches to business, stemming from their natural maternal instincts. Such diversity leads to greater innovation in terms of products and services, as well as highly effective decision-making processes.

3.      Social impact: There is no doubt about it that women in business are driven by social entrepreneurship, where they aim to solve social, community and environmental issues, often prioritising social corporate responsibility and sustainable practices.

4.      Empowerment: Women are all about empowering each other, and many successful businesswomen have become role models, inspiring others to follow their business dreams, leading to greater gender equality and empowerment within the business world and society.

5.      Balanced leadership: More women in leadership roles within businesses means that there is a well-balanced representation, and businesses tend to be more resilient and well-rounded.

6.      Innovation: Women tend to identify and address market gaps that their male counterparts may sometimes overlook, creating new markets and industries within an economy.

7.      Community development: Women are more likely to re-invest their earnings in their families and communities, leading to improved health, education and overall well-being for broader groups of people within that community.

Women in entrepreneurial roles play a crucial role in fostering innovation, driving economic growth and in the well-being of the society they live in. Their presence is an important factor within the global economy.

How can banks encourage women entrepreneurship?

By implementing strategies and offering services that are tailored to the unique needs and challenges faced by women entrepreneurs, banks and financial institutions can play a significant role in encouraging them to pursue their dreams and aspirations. Some of these include:

·         Access to capital: Banks can offer special loan programmes (such as business loans or pre-shipment finance) to women on favourable terms such as lower interest rates, flexible repayment periods, reduced collateral etc. In addition, banks that offer SME banking in Sri Lanka could also provide micro financing to assist them with starting their own businesses, especially in areas where traditional financing is not available. Banks can also offer special fixed deposit rates in Sri Lanka for women or women-run businesses.

·         Financial education: Seminars and training programmes on financial management, business finance and planning, and investment strategies will be helpful to equip women with the required knowledge and skills needed to manage their businesses. Experienced mentors can provide guidance and advice on how to navigate the complex financial aspects of running a business.

·         Networking opportunities: Create and support networking programmes where women entrepreneurs can connect with industry professionals, make contacts and build professional relationships. They could also collaborate with organisations that support women in business to provide additional resources and opportunities.

·         Advisory services: A relationship manager specialised in women entrepreneurship could be assigned to businesswomen in order to provide them with more personalised advice and support. In addition, banks could also offer business development consultancy and services, helping women with creating business plans, identifying opportunities and navigating regulatory issues.

·         Digital banking solutions: Develop user-friendly online platforms and tools that help women to better manage their business finances, together with mobile banking facilities, especially for those who have limited access to physical banks.

·         Promotions: Establish awards and grants programmes to identify and recognise outstanding performers in the business world, coupled with financial assistance and visibility for their business. Assist such businesswomen through branded promotions, advertising support and by showcasing their successes.

·         Inclusivity policies: Train their staff to recognise and counter gender bias when it comes to providing services to businesswomen, and to ensure fair treatment for all. Make them more involved when designing and developing banking products and services, to ensure that their unique needs are met.

Banks and financial institutions have the power within communities and economies to help, support and encourage women into entrepreneurship, helping them to be empowered, overcome challenges, have access to essential resources and achieve their long-term goals.

We are living in a day and age when gender equality is at its peak, and more and more women, whether from suburban areas, metropolitan areas or rural areas are beginning to feel more independent and empowered. They are more likely to achieve their dreams of starting their own business, with the assistance of financial advisors and banks, who can pledge support to create more opportunities and growth potential for such businesses.