To get a rough idea of where women’s entrepreneurship stands in India, take into consideration the National Association of Software and Services Companies (Nasscom) and Zinnov’s report released in February.

It said that 18 percent of startups in India are led by at least one woman founder or co-founder. What was even more interesting in the data was that of these, the number of unicorns and potential unicorns came to 36 in 2022. 

Since there was no specific data for Tier-2 or Tier-3 cities, it’s tough to gauge the correct percentage of women entrepreneurs in those areas. 

However, women entrepreneurs in small cities, despite the majority of them facing gender bias, a lack of support from spouses and families, stricter societal norms, low awareness about technical and networking aspects of business, and a lack of financial support, are fighting all odds to carve out their niche in the male-dominated business world. 

With fewer opportunities available to them, it is a must for women entrepreneurs to keep their success rate in business high. One of the major tactics to ensure success in business is to keep one financially secure. Financial security will allow women entrepreneurs to fall back on resources in the event of a downturn in business. There are a number of ways that women entrepreneurs can become financially secure. We are discussing a few of them in this write-up.

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Prioritise Financial Goals: One should know that one can’t pursue all important things in life. There are customised needs best suited to different people. So are financial priorities. You can set your financial goals for important work and urgent tasks. Paying off high-interest debt, building an emergency fund, and investing for retirement are some of the most effective ways to secure a financial future and keep your mind focused on work.

Diversify Your Investment Portfolio: Financial instability is as much a harsh reality for established companies as it is for investors. In the fast-changing world of technology, any establishment can rise and fall in a short period of time. As an investor, the best thing to do is diversify your portfolio into different asset classes, such as the stock market, mutual funds, assets, government securities, retirement plans, and insurance. You may not get profit in all of them, but you will surely lighten your risk factor by diversifying your portfolio.

Save Regularly and Consistently: Saving is important for bad days and to discipline yourself. It’s never a good habit to spend all your earnings, as you will never have an idea of your spending limit. In contrast, you will become habitual to a certain lifestyle, and if your interests dwindle, you will find it difficult to maintain it. Plus, you will never be able to secure your future if you continue your spendthrift ways. So always set aside a portion of your income each month for savings and investments.

Stay Invested for the Long Term: Good market investments are based on long-term calculations. They are not for the short term, where you follow a certain share because people are purchasing it in hordes or its price has risen sharply. Before investing in a company’s shares, see the company’s financial stability, principles, guidance, audit report, and management statements. Shares of companies with strong financial principles generally show a low to moderate rise in their value. They may not multiply your earnings many times, but they are low-risk and less likely to suffer losses in the long term. So, don’t treat share market trading like a gamble. Do your due diligence before investing. Long-term, successful investments are important for your future financial well-being.

Manage Debt Wisely: Don’t consider debt a psychological burden. A debt helps you complete important tasks or meet certain financial goals in life. Find ways to reduce your debt load. Refinancing, consolidating, paying off high-interest debts first, using income from investments, and avoiding excessive borrowing are some of the effective ways to reduce your burden. The sooner you finish repaying your debt, the sooner you can focus on some other project.

Review and Rebalance Your Portfolio periodically: New investment schemes are launched time and again, new market trends emerge, and new companies emerge as key players in markets. The new factors can make you rethink your investment portfolio and make necessary changes. Regularly reviewing your portfolio and adjusting the investment mix to align with your risk tolerance and financial goals is most likely to make you financially stable in the long term.

Stay Educated and Informed: No matter how informed you are about market trends, there is always some new information, rule changes, market trends, or investment plans that can help you make better decisions, improve your portfolio, or make necessary changes in your investment strategy. So, continuously learn about personal finance and investment trends to make informed decisions. The more you know, the better you can plan for the future.

Consider Tax-efficient Strategies: Seek financial guidance or read about various strategies to save taxes. After all, it’s your money. The more you save, the more you can use it for your financial well-being. A good way is to invest the money that you save on taxes. It can multiply your income in the long term.

Seek Professional Advice When Needed: One can’t be an expert in all fields. So, if you are stuck in your financial planning or get confused regarding a decision-making process, the best thing to do is seek financial advice. It can lessen your risk over time.

Stay Calm During Market Volatility: You can’t earn 100 per cent all the time. Not just you, but a seasoned market pro also fails in their decisions. So, there is no need to be impulsive if you are having a harrowing time with investments. Like in every field, there are hard times in the market too. Just stay calm; the bad phase will pass sooner or later.

Start Early and Stay Consistent: Starting investments in your early 20s and being consistent can help you in two ways. It can help you learn about investment intricacies by your mid- or late-20s and compound your income. 

Conclusion: Financial security is very necessary for women to start their journey as entrepreneurs. Prioritising financial goals, diversifying financial portfolios, staying calm, managing debt wisely, and considering tax-saving strategies are some time-tested formulae. Make sure that your journey as a woman entrepreneur goes smoothly and doesn’t hit a roadblock.

(By Priyanka Wadhwa, Co-Owner at Kapila Krishi Udyog. Views are personal)