DBS Bank India, in partnership with CRISIL, has published the third installment of its ‘Women and Finance’ series. The report, based on a survey of 400 self-employed women from 10 major Indian cities, takes a deep dive into their entrepreneurial journey.

The study explores various aspects of their business, including funding sources, banking practices, digital payment preferences, workforce management, and sustainability initiatives. It also addresses challenges such as gender bias and examines how age, income and location influence their business decisions. The report highlights key areas where women entrepreneurs need support and identifies opportunities to enhance their entrepreneurial capabilities.

Sources of Business Funding:

65% of self-employed women in Indian metros have not taken a business loan, 39% rely on personal savings to fund their enterprises. Among those seeking loans, bank loans were the primary choice, preferred by 21%. Women entrepreneurs often use personal assets as collateral, with 28% leveraging personal assets and 25% turning to gold—reflecting their risk-averse approach to investing. are 64% of respondents who use gold as collateral primarily invest in savings accounts and safe options like gold.

Awareness of Government Schemes:

The survey revealed a significant gap in awareness of government schemes, with 24% of respondents indicating that they were unaware of the options available. Additionally, 34 percent said they did not use any government scheme for their business. To fill this gap, DBS Foundation has launched a robust training program in partnership with Haq Darshak to promote financial literacy and empower women to access government rights and financial services. . The program targets 200,000 disadvantaged beneficiaries, 80 percent of whom are women.

Banking Products:

39% of women entrepreneurs use cash credit (CC) and overdraft (OD) facilities, followed by corporate credit cards (25%) and property-backed term loans (11%). 39% of respondents cited competitive interest rates and flexible repayment terms as key factors influencing their choice of bank for loans.

Support beyond financial aid:

In addition to financial support from banks, women entrepreneurs expressed a desire for mentoring (26%), help navigating government schemes (18%), and help digitizing financial processes (15%). In terms of entrepreneurship, 18% were interested in women-based communities, and 13% sought access to industry-specific financial data and benchmarks.

Commenting on the report, Devesh Dalal, Managing Director and Head – Global Transaction Services, SME and Corporate Responsibility, DBS Bank India said, “Our latest ‘Women and Finance’ report provides insights into these key areas. highlights where we can make an impact. We see opportunities to foster awareness and government empowerment through education and training. Additionally, it emphasizes the need to build business ecosystems with networking platforms and communities that promote collaboration, mentoring, skill building, and knowledge sharing to accelerate the growth of women in business. DBS Bank India is a trusted partner for supporting entrepreneurs and SMEs and startups goes beyond traditional banking to become We will continue to work with partners like CRISIL to support data-driven insights to better understand and empower women in their entrepreneurial journey.

The bank has leveraged insights from the report to work with its ecosystem partners to develop a customized proposition for women entrepreneurs. Through its partnership with Zaggle, DBS Bank India will offer exclusive benefits, such as discounts on Zaggle EMS, a tool that streamlines expense management. Women entrepreneurs will also get reduced card issuance fees and service charges for Zaggle payments and waived tax solutions. Additionally, through its partnership with FundEnable, the bank will organize capacity-building activities, including a knowledge chain and bootcamp to enhance fundraising, go-to-market strategies, and pitch. The bank has also partnered with India Accelerator, a fund-led startup accelerator from Gurgaon, to offer special offers on co-working spaces and accelerator programs for women entrepreneurs.

Trends in Digital Payments:

UPI has played a significant role in digitizing India’s financial transactions. According to the Reserve Bank of India, UPI’s share of digital payments will reach close to 80% in FY2024. UPI is at the forefront of business expense payments, followed by mobile banking.

Pushan Sharma, Director-Research, CRISIL Market Intelligence & Analytics, said, “73% of the self-employed women surveyed preferred to receive payments digitally from customers, and 87% preferred to pay their business expenses through e-commerce. used for digital methods. UPI is the most used mode for both receiving (35%) and paying (26%) business expenses. However, cash is indispensable for payroll and operational expenses, which 36 percent of respondents use

Adopting sustainable business practices:

Insights indicate a growing trend towards sustainability. 52% of self-employed women in Indian metros have implemented sustainability policies in their businesses, while 14% have approached a bank for sustainability-related finance. Encouragingly, 76% have implemented sustainable business practices, such as energy conservation, including female representation on their boards, and waste reduction and recycling initiatives. 26% of respondents prioritize energy conservation efforts, while 24% focus on waste reduction and recycling. Additionally, 26% of self-employed women have female members serving on their boards, reflecting their commitment to gender diversity and inclusion. 13% have adopted water conservation and rainwater harvesting practices.

DBS Bank India aims to support inclusive financial management for women, guided by insights gained from women and finance studies. It highlights how DBS is shaping a different kind of bank, enabling customers to ‘do more, bank less’ in line with its brand promise. The first report, released in January 2024, focused on savings, investment patterns and behaviors among salaried and self-employed women in urban India. The second report, launched in March 2024, examined career development, workplace policy priorities, and challenges facing women in the workforce.