Exploring Financing Strategies Among Women Entrepreneurs: A Comprehensive Study of Diverse Options

Abstract

Financing is a critical component for the start-up and development of any business, regardless of its size or gender. Women Entrepreneurs contribute to economic development by creating employment opportunities and for national income. They face diverse challenges in business. Sourcing of finance is a big task for any entrepreneur. They employ a variety of financing sources to meet their companies' unique needs, with choices influenced by their economic conditions and personal characteristics. Entrepreneurs utilize a diverse array of financing sources to start and grow their businesses, with choices influenced by various demographic and business related factors. This study examines how demographic and business factors impact the financing options entrepreneurs use. This study explores the variation in financing sources among entrepreneurs, examining how demographic profiles (such as age, education, marital status, and type of family) and business characteristics (including business type, experience, and operational mode)
impact financing options. The study also explores reasons for using diversified financing options, including personal savings, bank loans, venture capital, angel investors, and government grants. Data for this research was collected from 468 small women entrepreneurs in Coimbatore city through surveys and interviews. Chi-square, descriptive statistics, and cross-tabulation tools were used to test the hypothesis. The result shows that the majority of women entrepreneurs in Coimbatore city irrespective of their age, education, and experience depend on their own funds. A small proportion relies on external financing options like loans from banks and other financial institutions and alternative sources. Marital status and type of family were insignificant and age, gender, and other business characteristics were significant with the financing options used by women entrepreneurs.