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IWD: Women entrepreneurs perform better than men in terms of loan repayment

A recent report has suggested that with a risk portfolio percentage as low as 2.6 per cent, women entrepreneurs performed better than men in terms of repayment.

IWD: Women entrepreneurs perform better than men in terms of loan repayment

Indian, business, woman (photo:IANS)

A recent report has suggested that with a risk portfolio percentage as low as 2.6 per cent, women entrepreneurs performed better than men in terms of repayment.

The repayment risk of male entrepreneurs was as high as 4.6 per cent. From a proprietor salary perspective, women exhibited a 16 per cent rise, 11 per cent higher than men.

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It further said that women entrepreneurs in the manufacturing sector took the lead compared to other sectors as well, making them the leader in bringing the spotlight on women entrepreneurs.

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According to the analysis, while only 3.4 per cent of the women entrepreneurs defaulted on loan repayment, the rate among men was as high as 4.6 per cent . This behavioral pattern was consistent across all states.

When it comes to loan purposes both women-owned MSMEs and businesses owned by men indicated a similar trend. For both men and women owned Working Capital with 96 per cent of entrepreneurs stood as the prime purpose of credit.

The other reasons were Property Improvement with 2 per cent Business Development and Others with 1 per cent each.

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