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How On-Job Training Can Revolutionise Financial Literacy for Women Entrepreneurs: Why It’s Essential

How On-Job Training Can Revolutionise Financial Literacy for Women Entrepreneurs: Why It’s Essential

The rise of women in entrepreneurship is notable, carving innovative paths in the business world. Yet, their success often hinges on mastering financial literacy—a cornerstone for business longevity and growth. On-Job Training, merged with cutting-edge financial literacy technology, serves as a beacon. This combination doesn’t merely equip women entrepreneurs with vital skills but transforms them into financially astute trailblazers, primed for the challenges of the business realm.

The Vital Role of Financial Literacy in Entrepreneurship

What is Financial Literacy?  

Financial literacy encompasses the understanding and application of various financial principles related to budgeting, investing, and risk management. With the advent of financial literacy technology, acquiring these skills has become more accessible, allowing individuals to make informed decisions about their money.

Why is Financial Literacy Crucial for Women Entrepreneurs?

For women entrepreneurs, especially, financial literacy is more than just number-crunching. Financial literacy is fundamental for sustainable business growth, acting as a compass to navigate the oft-treacherous waters of entrepreneurial challenges. It’s the backbone of sustainable business growth. It ensures that they can navigate the financial challenges that often hinder entrepreneurial success, while this principle holds true for both genders, the significance of financial literacy for women is underscored by historical and traditional exclusion. Societal expectations, family dynamics, and lack of exposure have, over time, made it more challenging for women to access and cultivate these essential skills, even as many men have been afforded such opportunities. By incorporating On-Job Training focused on financial literacy, women can gain practical insights, minimising mistakes and maximising profit.

Financial Literacy: A Pathway to Women’s Empowerment and Entrepreneurial Success

Empowerment in the entrepreneurial world isn’t just about having a voice—it’s about having the knowledge to steer one’s business confidently. Financial literacy, supported by advanced financial literacy technology, provides women entrepreneurs the tools they need to thrive. When women are financially educated, they’re better equipped to negotiate, invest, and expand, leading to greater entrepreneurial success. This knowledge not only fuels business growth but fosters women’s empowerment, giving them a seat at the table in global economic discussions.

Overcoming Barriers to Access:

However, the path to financial literacy technology and on-job training is not always smooth. Women often face barriers such as limited access to education, cultural norms, and gender biases. These barriers hinder their opportunities to acquire crucial financial knowledge and job skills. As a result, many women find themselves at a disadvantage when it comes to managing finances, pursuing on-job training and seizing economic opportunities.

According to a report by the Humanity Welfare Council, a staggering 80 percent of women in India face difficulties understanding financial matters. Surprisingly, about 62 percent of Indian women lack bank accounts or limited banking access and are unfamiliar with these essentials in India. This article highlights a crucial point – having financial knowledge and access to on-job training is not only important but also vital for women’s empowerment. 

On-Job Training: A Foundation for Success

What is the on-job training for women entrepreneurship?

On-job training for women entrepreneurship is a practical training approach tailored to women actively engaged in business. Unlike traditional lessons, this focuses on real-world skills specific to entrepreneurship. For women, it might involve mentoring from seasoned entrepreneurs, workshops on leadership or hands-on business management experiences. The goal? Equip women with tools and insights to overcome challenges and excel in their entrepreneurial journey.

On-Job Training is a hands-on method of teaching the practical skills and knowledge required for a specific profession. Unlike traditional classroom settings, this training method is conducted right at the heart of where the action happens, offering real-time experience. By integrating financial literacy technology, the effectiveness of this approach is enhanced, providing trainees with a comprehensive learning journey tailored to their needs.

Differentiating On-Job Training:

Conventional training often floats on the surface, rooted mainly in theoretical concepts. In contrast, our initiatives focus on immersive experiences, drawing the trainee into the very fabric of their future work environment. This deep dive means they don’t just learn—they experience, adapt, and grow in real-world settings. The integration of financial literacy technology elevates this further, ensuring trainees are not only grounded in the current state of affairs but are also equipped with forward-looking, technologically adept skills.

The Significance of On-Job Training for Real-world Skills: 

Pure theoretical knowledge has its limits, especially when the challenges of the entrepreneurial realm come knocking. Recognizing this, our programs aim to bridge this gap, delivering firsthand experiences that empower aspiring women entrepreneurs to confidently wade through the intricacies of the business world. This strategy, rooted in the heart of the communities we serve, is transformative for women’s empowerment. As these women navigate real-time challenges and witness innovative solutions, they’re not just being trained—they’re being moulded for sustainable success. Through our initiatives, we ensure that every woman, regardless of her background, gains a robust foundation to thrive in her entrepreneurial journey, enriching both her life and the community around her.

Challenges and Disparities:
  • Limited Access: Many women, especially in underserved communities, lack education and resources.
  • Economic Impact: Restricted financial decisions hinder economic independence.
  • Asian Development Bank Study: Only 27% of Indian adults achieve basic financial literacy.
  • Women’s Financial Literacy: Just 24% of Indian women meet the minimal standard.

The Integration of Financial Literacy Technology in On-Job Training

Introducing Financial Literacy Technology:

In today’s tech-centric world, the advent of financial literacy technology stands out as a beacon of innovation. It consolidates digital platforms, apps, and other resources, each designed meticulously to demystify and enhance the grasp of financial principles. By weaving this technology into On-Job Training, there’s a fusion of practical workplace experience and state-of-the-art financial tools, creating a training regimen that is both modern and thorough.

Benefits of Merging Technology with On-Job Training:

The integration of financial literacy technology in On-Job Training offers manifold benefits. 

  • Allows trainees to make swift, informed financial decisions.
  • Interactive modules, simulations, and digital tools for engaging training.
  • In tune with the contemporary business landscape.
  • Amplifies depth of training, setting the stage for entrepreneurial success.

Sustainable Learning and Career Advancement through Technology:

While traditional learning methodologies have their place, the ever-evolving dynamics of the present-day business arena demand nimble and lasting learning approaches. Embedding financial literacy technology within On-Job Training assures that education is ongoing, malleable, and synchronised with the tides of industry evolution. This fusion is transformative for women entrepreneurs. It equips them with cutting-edge tools and insights, championing women’s empowerment and sharpening their competitive edge. Staying abreast with practical field experiences coupled with the freshest in financial tech knowledge, these entrepreneurs are carved for not just growth, but resilient success.

Pinky’s Story: A Journey to Success

Beginning with Hurdles:  

Pinky started with challenges, halting her education after grade 10. With her dual role at home and limited qualifications, finding a stable job seemed almost impossible. But Pinky was determined to change her fate.

Finding On-Job Training: 

Pinky’s big break came with On-Job Training. It gave her the chance to earn while she learned. This training, combined with financial tech tools, readied her for a career as an Assistant Beautician.

The Impact of Training: 

Thanks to her training with Sambhav Foundation, Pinky now earns a steady INR 7000 monthly. This isn’t just a salary; it’s a symbol of the power of practical training paired with financial literacy tools.

Inspiring Other Women:

Pinky’s success story isn’t just about her; it’s an inspiration for many women. It highlights how On-Job Training can empower women, leading them to financial freedom and entrepreneurial achievements. With the right opportunities, every woman can turn challenges into victories.

Navigating Financial Literacy: Women’s Progress in India:

  • Women’s Literacy in India: 74.04% according to National Statistical Office statistics  
  • Financial Literacy Issue: Despite general literacy, financial literacy remains low
  • RBI’s Initiative: Devised financial literacy criteria for broad public education
  • Asian Development Bank Study: Only 27% of Indians, and 24% of women, have basic financial literacy
  • Leadership Roles: 55% of Indian CEOs or MDs were women in 2022 (Statista).
  • Women in Finance: Institute of Chartered Accountants of India (ICAI) data:

– Women comprise 28% of total membership

– 42% of the student body is female

Economic Empowerment Through Financial Knowledge

The Catalyst of Financial Literacy: 

Financial literacy is not merely about understanding numbers; it’s about harnessing the power of informed decision-making. With the tools provided by financial literacy technology, individuals, particularly women, can navigate the complexities of personal and business finances. By doing so, they pave the way for greater economic stability, not only for themselves but for their families as well.

Ripple Effects on Community and Society: 

When individuals are economically empowered, the benefits cascade beyond personal boundaries. Financially literate individuals tend to make more informed spending, saving, and investment choices. This, in turn, leads to more resilient families, prosperous communities, and a robust economy. Moreover, when women, often the backbone of families and communities, are economically stable, they invest in the health, education, and well-being of their children, setting the foundation for future generations. 

Women’s Empowerment and The Path to Financial Independence: 

Linking financial literacy with women’s empowerment paints a vivid picture. Through avenues like On-Job Training, women not only gain professional skills but also financial acumen. This dual empowerment fosters a sense of independence, allowing women to carve their niche in entrepreneurial ventures. Their success stories, then, serve not just as personal victories but as inspirations for countless others. The trajectory from acquiring financial knowledge to achieving entrepreneurial success is clear, echoing the age-old adage: knowledge is power, and in this context, it’s the power to achieve financial independence and inspire societal change

Benefits for Women Entrepreneurs Embracing Technology & On-Job Training

Crafting Robust Business Strategies: 

By integrating On-Job Training and financial literacy technology, women entrepreneurs gain a comprehensive understanding of market dynamics. This equips them to craft stronger, more adaptable business strategies, setting the stage for entrepreneurial success.

Risk Mitigation through Financial Acumen:

With better financial knowledge, gained through hands-on experience and tech-driven insights, women entrepreneurs can foresee potential pitfalls and financial challenges. This proactive approach allows them to make informed decisions, significantly mitigating risks and ensuring sustained business growth.

Leveraging Technology for Enhanced Reach & Efficiency:

Embracing technology isn’t just about financial insights; it’s about optimising operations. Women entrepreneurs can harness digital tools for broader market reach, streamlined operations, and efficient resource allocation. By doing so, they not only expand their business horizons but also champion the cause of women’s empowerment in the entrepreneurial realm.

Government Schemes and Programs for Empowering Women

Udyogini Scheme

Implemented by the Women Development Corporation under the Indian government, the Udyogini scheme is aimed at aspiring women entrepreneurs based in rural and underdeveloped areas. 

Under this scheme, women with an annual family income of under Rs. 1.5 lakh, can avail of interest and collateral-free loans up to Rs. 3 lakhs for starting a micro-enterprise in any of the 88 designated small-scale industries. Furthermore, the government offers a 30% subsidy for easy repayment options while imparting numerous functional skills, such as business planning, costing, pricing, and feasibility, for women’s empowerment. 

Mudra Loans

In order to offer small and micro businesses located in the manufacturing, retail, agricultural, and service sectors, the Pradhan Mantri Mudra Yojana (PMMY) was introduced in April 2015. Shishu loans (up to 50,000 rupees), Kishor loans (from 50,001 to 5 lakhs), and Tarun loans (from 5 lakhs to 10 lakhs) are the three categories under which these loans fall. The repayment period is 3-5 years.  

The Pradhan Mantri Mudra Yojana scheme completed 8 years in existence in 2023 and according to government data, 69% of 40 crore borrowers under Mudra Yojana are women entrepreneurs. A total of Rs 27 crore mudra loans have been disbursed to women beneficiaries so far.

Bharatiya Mahila Bank Business Loan

Bharatiya Mahila Bank, which was founded in 2013 to empower women financially, was later merged with SBI but has kept on offering business loans. Here, female business owners can apply for loans of up to Rs. 20 crores planning to start a manufacturing unit or a real estate business. 

These loans for businesses are further divided into BMB Shringaar (beauty business) where the repayment tenure is up to 7 years and no collateral is required, BMB SME Easy (small and medium enterprises) where the repayment tenure is 7 years, BMB Annapurna (for a food catering business) where the loan repayment tenure is 3 years and BMB Parvarish (for a daycare centre), the loan repayment tenure is 4 years and no collateral is required.

Women Entrepreneurship Platform (WEP)

WEP has been introduced by NITI Aayog and Small Industries Development Bank of India (SIDBI) with the goal of assisting established and aspiring women business owners. Gyaan Shakti, Iccha Shakti, and Karma Shakti are its three pillars, and it intends to offer an enabling ecosystem for sourcing finance, mentorship, apprenticeship, and corporate partnerships, for women’s empowerment.  

Additionally, WEP offers support for all women-led enterprises at any level of development, from start to scaling up, through incubation and accelerator programmes. The best part is that it aids female entrepreneurs in creating a network of like-minded individuals who can assist and mentor one another.

Final Thoughts

The transformative power of On-Job Training, coupled with the advancements in financial literacy technology, cannot be emphasised enough. As we’ve journeyed through the narratives of individuals like Pinky and explored the broader implications for women entrepreneurs, it’s evident that these tools are more than just resources; they are catalysts for change.

Sambhav Foundation fosters a culture of knowledge-sharing and support; we provide a safe space for women to learn, grow, and thrive, thereby directly contributing to women’s empowerment. Our efforts echo the essence of this journey—transforming financial knowledge into economic autonomy and nurturing a society where women’s empowerment is paramount.

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