Q.Explain the functions (importance) of the capital market.

(a) The capital market's functions centre on mobilising long-term savings and channelling them to productive investment while providing liquidity and fair pricing. (b) Women entrepreneurs face finance, family, mobility, education, social-bias and confidence challenges.

(a) Functions of the Capital Market

1. Mobilisation of savings – it collects scattered long-term savings of individuals and institutions.
2. Channelising savings into productive investment – it directs those funds to industry, trade and government for productive use.
3. Capital formation – by linking savers and investors it accelerates the rate of capital formation in the economy.
4. Provision of liquidity – the secondary market lets investors convert securities into cash easily, encouraging investment.
5. Continuous and fair pricing – demand and supply on the market fix fair, continuous prices for securities.
6. Promotion of economic growth – by financing industrial and infrastructure projects it fuels overall economic development.
7. Ready market and convenience – it provides a ready, organised place for buying and selling securities and reduces transaction cost and time.

(b) Challenges Faced by Women Entrepreneurs

1. Shortage of finance – women often lack property in their own name and find it hard to raise loans and working capital.

2. Family responsibilities – balancing home, children and business leaves little time and energy for the enterprise.

3. Limited mobility – restrictions on travelling alone hamper marketing, sourcing and dealing with outsiders.

4. Lack of education and training – limited technical and managerial knowledge affects decision-making.

5. Male-dominated society / gender bias – social attitudes and lack of support make it hard to be taken seriously.

6. Low risk-bearing ability and confidence – protected upbringing may lower willingness to take business risks.

7. Stiff competition and marketing problems – competing with established (often male-run) firms and reaching markets is difficult.

8. Lack of information and networks – limited access to business information, contacts and government support.