Abstract:
This paper examines the financial barriers of small and micro enterprises owned by women entrepreneurs in Northern India by taking a sample of 450 respondents from five states of Northern India i.e. Haryana, Punjab, Rajasthan, Himachal Pradesh and Delhi. The analysis of data reveals that the extent of problems relating to finance has declined considerably under new economic regime. It is due to liberal policies followed by financial institutions towards SMEs. Women entrepreneurs face the problem of fixed capital in business. Suitable policies need to follow to allot plots/sheds for women entrepreneurs. It becomes more important due to sky rocketing prices of land and difficulty for the entrepreneurs to purchase plot/building to start their business and consequently have to pay high rent. The problem relating to working capital can be solved by providing loans against different assets. Financial institutions should not insist more on collateral securities while advancing loans. It will be useful to SMEs to sort out the various problems of finance. Small proportion of women entrepreneurs also faces problem of lack of coordination and problem relating to various other formalities. Financial institutions should increase the awareness of their schemes among small and micro enterprises. Increase in awareness of these schemes can be more useful to these enterprises to avail various benefits.
