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SL 1

Variables Collateral

Authors Tang (2012)

pg 4

Statements Most women who venture into businesses in the rural areas and need financing lack the needed collateral to enable them secure bank loans.

Guarantor

Ahsan (2010) cited in weeklyholiday (2010)

In many cases women do not want to say their husbands' names, so it becomes quite difficult to find a proper guarantor for a loan. If the banks find proper guarantors, it will be easy to help them.

Trading documents

Shamim (2008)

From

the

perspective

of

regulatory

provisions, about half of the women entrepreneurs are not aware of trade license, tax and VAT. Most of them lack capacity bookkeeping documents
4

to

maintain and other

accounts, necessary

Title deeds

Tang (2012)

Women have rarely inherited land and other property in their own right. This means that they lack title deeds which are still the most commonly used form of security for borrowing money

Financial statements

Sazzad and Razza (2007)

Specific characteristics of female-owned enterprises, for example lack of

accounting and finance expertise, inability to arrange a guarantor or collateral, make financing these enterprises almost

impossible for finance providers.

Bank account

Ahammed (2010) cited in weeklyholiday (2010)

Even they do not have bank accounts or any transaction record, which is another important parameter for a bank loan

Credit history

Kinyanjui (2006) 4 cited in Tang (2012)

Records that some entrepreneurs felt that it was difficult to obtain loans as they had to show credit records and they did not fully understand the requirements getting and paying loans.

Lending Process

Khan (2008) cited in thedailystar (2008)

The documentation procedure is lengthy and complicated. Furthermore, banks are less interested to serve small women entrepreneurs

Interest rate

Sharma (2013) cited in Brummelhuis (2013)

Banks lend less to women and charge a higher interest rate, hence women-owned business tends to be underfunded. Plus traditionally women are more risk averse.

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Other loan costs

Karim (2001)

71

Actual loan costs are much higher than official figures, given the unfortunate custom of paying bribes at all stages of the borrowing process.

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Knowledge on lending procedure

June(2006)

Poor

understanding

of

financial

terminology and lack of awareness of bank and microfinance services are an obstacle. A lack of understanding of credit processes and the role of credit bureaus also places women at a disadvantage

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Required

Kaisar (2008)

Women entrepreneurs do not have access

information

cited in thedailystar (2008)

to adequate information regarding how, when and from where they can get funds to start their business or maintain smooth business cycles.

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Policy schemes

Bulsara and Pandurengan (2007)

12

According

to

14%

of

women

entrepreneurs wide publicity of schemes by banks can help increase awareness of the schemes available a variety to of them.Although

government schemes exist, only 20 per cent of these focus on enabling access to markets and access to finance for women in business.

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Women refinancing scheme

Rahman (2011) cited in priyodesk(2011)

The central bank is monitoring the implementation status of refinancing

scheme by scheduled banks so that women entrepreneurs can avail themselves of the opportunity to get maximum benefit from it, said a statement.

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Debt-to-income ratio

Bulsara and Pandurengan (2007)

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Women, especially for whom the principal constraint in improving living standards is simply lack of income can benefit tremendously from credit inputs.

1 Finger (2013)

Borrower may not have a debt-to-income ratio of greater than 43 percent, fees and points may not exceed 3 percent of the loan amount.lenders must verify a borrowers income no mortgages

greater than thirty years and no interest only or negative amortization loans.
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Cash flow Loan Installment Communication channel Wto(2013) 1 They often have limited understanding of buyer requirements and limited capacity to meet requirements. Access to credit is often a challenge then.

The

low

visibility

of

women

entrepreneurs, particularly in many poorer countries, hinders potential buyers from understanding the issues, benefits, and opportunities to integrate women in their supply chains, as well as from fulfilling existing commitments to increase sourcing from women under supplier diversity programmers.
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Network outside family

Rechardson, Howarth and Finnegan (2004)

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The fact that women lack networks outside of their family and close

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community is closely associated with their Contacts with professionals lack of formal employment and business experience, together with constraints

placed on their mobility and ability to interact with other business people (mostly men) arising from their domestic roles and responsibilities.

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Government bureaucracy

Common wealth secretariat (2002) cited in

Women often have few or no contacts in the bureaucracy, and there may be a bias

Tang (2012)

against womens businesses.

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Planning business

Bulsara and Pandurengan (2007)

For 14% of women lack of idea was the problem in starting the business and 23% the problem was lack of information about facility provided to women.

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On-hand experience Rahman et al. (2013)

the loan disbursements to the women entrepreneurs hampered sometimes due to. management problems, lack of experience, unwillingness to receive loans due to fear of debt and finally lack of training on the entrepreneurial activities etc.

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Resource allocation

Bulsara and Pandurengan (2007)

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Considering discouraged

the women

factors, in

which the

starting

business without surprise about 45% of them were discouraged because of sourcing of resources for investment.

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Negotiation

Patrice (2013)

2227

banks understand numbers and require a proper business plan along with projections women still lack the negotiation skills to secure their capital and this makes banks nervous

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Decision making

Bulsara and Pandurengan (2007)

Even the decision-making process, which will induce women into starting the enterprise, is alien to most and does not easily fit with the worldview, as decisionmaking is traditionally a male prerogative.

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Socio cultural taboos

Sazzad and Razza (2007)

The social and cultural problems as well as the taboos of society are also deterrents in providing finance to female

entrepreneurs.

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formal education

GPFI and IFC (2011)

Although more women now have access to education, women still tend to be the least educated entrepreneurs. This heavily impacts their growth potentials

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Training Common wealth secretariat (2002) cited in Tang (2012)

When business training is available, women may not be able to take advantage of it because it is held at a time when they are looking after their family.

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Limited business categories

Bulsara and Pandurengan (2007)

They have limited idea of business opportunities, are unaware of sources of support assistance.

Women Bwcci Karen et al. (2012)

entrepreneurs

were

mostly

involved in manufacturing (62 per cent), mainly in boutiques, handicrafts and food processing, followed by service and trade.

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Risk aversion

Cliff (1998), 4 Bird and Brush (2002) cited in Carter, Shaw and Lam (2008) Stengel (2012) 1

The greater risk aversion of women is seen not only in their reluctance to assume the burden of business debt, but also within their reluctance to engage in fastpaced business growth They are in businesses that arent

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Lower profit

attractive to venture capitalists because their returns arent fast or high enough.

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Competition

Tang (2012)

Whilst micro-enterprises are very often the source of innovation, they are also especially vulnerable to competition from counterparts who introduce new products or services, or improve their production processes, lacking the resources to

respond rapidly.

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Discrimination

Tang (2012)

Women report that bank officials tend to ignore them in meetings and prefer speaking to their husbands or male business partners.