From Credit Access to Credit Readiness: Empowering Women Entrepreneurs for Sustainable Growth

When 24-year-old Kashish from Odisha initially joined a self-help group (SHG) in her community, her dream was clear - to provide for her family and educate her younger siblings. With a small loan, she started making hand-rolled agarbattis (incense sticks) at home.

But what truly transformed her journey wasn’t just access to credit, it was the ability to manage her finances, understand the market, and expand her business through an online sales strategy. Currently, Kashish employs four other women from her village. Her business not only provides income but also confidence, dignity, and hope.

Kashish’s story bears witness to a broader truth: skill development and education constitute one of the strongest indicators of women’s empowerment and influence. It indicates not just how a person advances, but how societies and nations progress.

A World Bank study found that limited educational opportunities for girls, and barriers to completing 12 years of education, cost countries between $15 trillion and $30 trillion in lost lifetime productivity and earnings. We know, and experience confirms what we see every day: when women are empowered, entire societies benefit. Education and economic opportunity for women improve child health, raise household incomes, and strengthen communities.

India has made remarkable progress in expanding women’s access to education, healthcare, and finance. Women-led SHGs, micro-enterprises and collectives are one of the most remarkable social transformations in today’s day and age. Access to credit has helped bring new possibilities to life from rural entrepreneurs like Kashish in Odisha to women-led dairy cooperatives in Gujarat. But the next frontier in women’s empowerment is not just providing access to credit, but in ramping up credit preparedness.

Credit access and credit readiness may seem alike, but they are fundamentally different. Access refers merely to availability; the ability to obtain financial products and services such as loans, savings, or insurance. Readiness, on the other hand, talks about capability and ability to use these financial tools effectively, confidently, and sustainably.

Credit readiness for people who need access to credit requires more than just collateral, it instead encompasses financial literacy, business acumen, digital access, market linkages, and mentorship.

This distinction is crucial. While credit access can be facilitated through institutional or policy mechanisms, credit readiness must be cultivated through knowledge, skills, and social capital. A woman who knows how to manage cash flow, charge for her product, assess risks and mobilize digital tools, is better equipped, to maintain her venture than a woman who just accepts a loan. Credit may become debt without readiness, and capital for growth with readiness.

The challenge, therefore, is to shift our development thinking - from viewing women as passive beneficiaries of funds to recognizing them as active architects of economy. Programmes should go beyond the transactional nature of credit delivery to the creation of an ecosystem of preparedness. Entrepreneurial inclusion must go hand-in-hand with financial inclusion. In other words, it is knowledge, network and fostering that need to be part of this synergetic ecosystem.

Knowledge encompasses credit literacy, business planning, and digital literacy. As economic activity moves to the internet, digital familiarity is no longer optional - it is essential. Women entrepreneurs need to be prepared to venture into e-commerce platforms, digital payments, and online marketplaces. While there were commendable strides in government and private sector endeavors, the emphasis needs to move further to capacity building on the last leg.

Networks refer to the linkages that connect women entrepreneurs to markets, mentors, and peers. Access to buyers, suppliers, and agents helps women scale their businesses, diversify products, and build resilience. Networks also foster collective strength - helping women negotiate better prices, cut costs, and learn from collaborations. SHGs have already demonstrated how community-led financial models can build trust and discipline; expanding these into business clusters and value-chain linkages can multiply their impact.

Finally, fostering is about ecosystem support and sustained mentorship. Entrepreneurship is rarely a straightforward - it requires ongoing guidance, exposure, and encouragement. Structured mentorship programmes, incubation hubs, and partnerships with academic institutions can bridge this gap. When women receive not only funds but also feedback, their ability to innovate and endure increases manifold.

Globally, there is growing recognition that women’s economic empowerment is a catalyst for sustainable development. Yet, barriers persist - cultural norms, information asymmetry and limited access to collateral continue to constrain women’s participation in formal credit systems.

Bridging this readiness gap demands a multidimensional approach. In fact, the McKinsey Global Institute estimates that narrowing the global gender gap could add $12 trillion in annual GDP. Financial institutions need to reconsider how they measure creditworthiness – looking beyond the simple number of loans outstanding now, to consider social capital, repayment history in SHGs, or digital transactions as alternative measures. Policy frameworks need to support integrated models which offer financial access and development of capacity. Business and philanthropic communities can indeed do their bit by stepping up community-based skilling and mentoring.

Beyond economics, when we empower a woman, we do not just change her life - we transform the lives of everyone around her. When a woman gains confidence in managing finance, running a business, and making monetary decisions, she alters gender dynamics within her household and community. The income she earns is often reinvested in her children’s education, family health, and community welfare - creating what economists call a “multiplier effect” of empowerment. Guided by this vision, our foundation has launched HerKadam, a nationwide campaign by the women, for the women, bringing all women-focused initiatives under one ambit. The campaign celebrates the empowerment of over 2.7 million women/girls across India, achieved through Jindal Foundation's efforts.

When women are credit-ready, they transform opportunity into lasting prosperity. They do not just access finance - they shape futures. The transition from access to readiness, then, is not simply a policy mandate; it is a moral and developmental condition. For every woman who is prepared to lead her enterprise, there is the vision for a world that is more equitable, more resilient, and more sustainable.

The views expressed in this article are personal and do not represent the opinions or positions of any institution or organization with which the author may be affiliated.