Challenges Faced by Women Entrepreneurs in India

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AN EMPIRICAL STUDY ABOUT THE CHALLENGES FACED BY WOMEN ENTREPRENEURS IN RURAL AREAS OF TRICHY DISTRICT , TAMILNADU , SOUTHINDIA

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AN EMPIRICAL STUDY ABOUT THE CHALLENGES FACED

BY WOMEN ENTREPRENEURS IN RURAL AREAS OF TRICHY DISTRICT , TAMILNADU , SOUTHINDIA

1. INTRODUCTIONWomen have been successful in breaking their confinement within the limits of their homes by entering into varied kinds of professionals and services women entrepreneurs have proved to be on par with their men counterparts in business acumen and are emerging as smart and dynamic entrepreneurs. There are many reasons for women to enter into entrepreneurial ventures in a predominantly society. Entrepreneurship among women is an important avenue through which women can overcome their subordination within the family and the family and the society as a whole. Therefore, development of entrepreneurship among women has received special attention of the policy makers. In this direction, a special character in the seventh plan has converted into the integration of women in economic development. The new industrial policy has stressed the need for conducting special Entrepreneurial Development Programme (EDPs) for women. Besides this, today, a network of institutions exists in the country to promote women entrepreneurship. The commercial banks and the financial institution are an integral part of this network. Many organizations / institutions and association promote and develop women entrepreneurship by providing financial assistance at concessional rates of interest and also organize industrial fairs and exhibitions. Entrepreneurship Development Programme (EDPs) for women creates entrepreneurial awareness among them.Nowadays women empowerment has been increasing so rapidly all over the world and women are starting their own business to seek greater control over their personal and professional lives. In India, women dont enjoy the same opportunities as men. The secretion of gender starts early and becomes a way of life. However, economic necessity is forcing more women to engage in economic activities-employment or entrepreneurship. In most countries, regions and sectors, the majority of business owner / managers are male (from 65% to 75%) However, there is increasing evidence that more women are becoming interested in small business ownership and /or actually starting up in business. In addition, rates of self employment among women are increasing in several Asian countries. Although there are no official statistics relating businesses to the gender of their owner/Manager, there is a good deal of evidence to suggest a significant increase in female entrepreneurship. One consequence of this is that women are a relatively new group of entrepreneurs compared with men, which means that they are more likely to run younger businesses. This in turn has implications for the problems they face and their ability to deal with them.

The women in Trichy District are engaged in activities such as tailoring and preparation of readymade garments, embroidery, food products like masala powder, papad making, candles & agarbathy, brick making, coir products etc. The research would cover the rural areas of Trichy District, Tamilnadu and this study will identify the problems or barriers and their relevant impact on women entrepreneurial activities. This research identify to what extent the variables i.e., finance, access to technology, information, managerial skills, mobility, networking and trust building, education, experience etc are affecting the women entrepreneurial activities in rural areas.2. SCOPE OF THE RESEARCH The study focuses on the women entrepreneurs in selected in Trichy district, Tamil Nadu selected depends on entrepreneurial activities done by in rural areas. The selected districts with its good infrastructural facility, offers sound prospects for agriculture and industrial developments. The scope of the study encompasses women entrepreneurs in Trichy District and the problems faced by women entrepreneurs who are engaged in stating enterprise. The study is limited only to the women entrepreneurs of selected groups in Trichy District. 3. RESEARCH QUESTIONS1. What are the various problems faced by women entrepreneurs in rural areas?

2. What is the part played by finance in affecting women entrepreneurial activities in rural areas?3. What is the part played by access to technology in affecting women entrepreneurial activities in rural areas?4. What is the part played by information in affecting women entrepreneurial activities in rural areas?5. What is the part played by managerial skills in affecting women entrepreneurial activities in rural areas.

6. What is the part played by mobility in affecting women entrepreneurial activities in rural areas?7. What is the part played by networking and trust building in affecting women entrepreneurial activities in rural areas?

8. What is the part played by education in affecting women entrepreneurial activities in rural areas?9. What is the part played by experience in affecting women entrepreneurial activities in rural areas?4. AIM & OBJECTIVES OF THE RESEARCHAIM

The aim of our research is to find out the What are the problems along with socio cultural constraints that are affecting women entrepreneurial activities in rural areas.

OBJECTIVES1. To identify the problems or barriers which are faced by women in conducting entrepreneurial activities in rural areas with reference to Trichy district.2. To measure the to what extent each variable like finance, access to technology, information, managerial skills, mobility, networking and trust building, education and experience has an impact on women entrepreneurial activities in rural areas with reference to Trichy district.3. To measure how women respond and cope to the barriers faced in entrepreneurial activities in rural areas with reference to Trichy district.4. To find which activities women entrepreneur in rural areas are mostly engaged with reference to Trichy district5. To suggest and intimate the proper solutions to the problems faced by women entrepreneurs in rural areas with reference to Trichy district.6. To create awareness in women about their efforts and role in the society.5. RESEARCH HYPOTHESES

From the above objectives the following hypotheses are created and have to be tested.

1. There is a significant relationship between finance and its affecting the women entrepreneurial activities in rural areas.

2. There is a significant relationship between access to technology and its affecting the women entrepreneurial activities in rural areas.

3. There is a significant relationship between information and its affecting the women entrepreneurial activities in rural areas.

4. There is a significant relationship between managerial skills and its affecting the women entrepreneurial activities in rural areas.

5. There is a significant relationship between mobility and its affecting the women entrepreneurial activities in rural areas.

6. There is a significant relationship between networking and trust building and its affecting the women entrepreneurial activities in rural areas.

7. There is a significant relationship between education and its affecting the women entrepreneurial activities in rural areas.

8. There is a significant relationship between experience and its affecting the women entrepreneurial activities in rural areas.6. DEFINITION OF CONCEPTSEntrepreneurAn entrepreneur is a person who has possession over a new enterprise or venture and assumes full accountability for the inherent risks and the outcome. The term is from French and was first defined by Irsish economist Richard Cantillon.

Women EntrepreneurThe term women entrepreneur refers to a women who is running her own or family own business. A female entrepreneur is sometimes known as entrepreneurs.

WomenWomen are either single or married, Single or unmarried women have all the civil rights of men; they may therefore enter into contracts or engagements; sue and be sued; be trustees or guardians, they may be witnesses, and may for that purpose attest all papers.Rural Area

Rural areas are also known as 'countryside' or a 'village' in India. It has a very low density of population. In rural areas, agriculture is the chief source of livelihood along with fishing, cottage industries, pottery etc. The quest to discover the real rural India still continues in great earnest. Almost every economic agency today has a definition of rural India. Here are a few definitions: According to the Planning Commission, a town with a maximum population of 15,000 is considered rural in nature. In these areas the panchayat takes all the decisions. There are five people in the panchayat. The National Sample Survey Organisation (NSSO) defines rural as follows:

An area with a population density of up to 400 per square kilometer,

Villages with clear surveyed boundaries but no municipal board,

A minimum of 75% of male working population involved in agriculture and allied activities.[16]Challenges faced by women entrepreneur

Women not only face problems as entrepreneurs but as women themselves and

therefore compared to men the problems of women entrepreneurs are numerous. The problems range from mobilizing various resources including problem of capital, marketing, raw material, sales, labour, technical, competition, new technology, problem of land/ Shed/ water/ power/ taxes, lack of family support as well as lack of government support and the like. Hence their problems arise both from within and outside and also differ from enterprise to enterprise. Some of these problems are many and similar to all, where as for some others it is more specific and related to the line of activity of the enterprise. Some have the problem of the external environment; what ever be the problem there is no

prescribed formula to deal with them. The problems have to be dealt with them by the entrepreneurs themselves otherwise it would affect the working of the enterprise itself. Efficient and timely handling of the problems leads to their success.

7. LITERATURE REVIEWThe literature review explains about the various problems and challenges faced by women entrepreneurs in rural areasFamily tiesWomen in India are very emotionally attached to their families. They are supposed to attend to all the domestic work, to look after the children and other members of the family. They are over burden with family responsibilities like extra attention to husband, children and in laws which take away a lots of their time and energy. In such situation, it will be very difficult to concentrate and run the enterprise successfully.

Male dominated societyEven though our constitution speaks of equality between sexes, male chauvinism is still the order of the day. Women are not treated equal to men. Their entry to business requires the approval of the head of the family. Entrepreneurship has traditionally been seen as a male preserve. All these put a break in the growth of women entrepreneurs.

Lack of educationWomen in India are lagging far behind in the field of education. Most of the women (around sixty per cent of total women) are illiterate. Those who are educated are provided either less or inadequate education than their male counterpart partly due to early marriage, partly due to son's higher education and partly due to poverty. Due to lack of proper education, women entrepreneurs remain in dark about the development of new technology, new methods of production, marketing and other governmental support which will encourage them to flourish.

Social barriersThe traditions and customs prevailed in Indian societies towards women sometimes stand as an obstacle before them to grow and prosper. Castes and religions dominate with one another and hinder women entrepreneurs too. In rural areas, they face more social barriers. They are always seen with suspicious eyes.

Shortage of raw materialsThe scarcity of raw materials, sometimes nor, availability of proper and adequate raw materials sounds the death-knell of the enterprises run by women entrepreneurs. Women entrepreneurs really face a tough task in getting the required raw material and other necessary inputs for the enterprises when the prices are very high.

Problem of financeWomen entrepreneurs stiffer a lot in raising and meeting the financial needs of the business. Bankers, creditors and financial institutes are not coming forward to provide financial assistance to women borrowers on the ground of their less credit worthiness and more chances of business failure. They also face financial problem due to blockage of funds in raw materials, work-in-progress finished goods and non-receipt of payment from customers in time.Tough competitionUsually women entrepreneurs employ low technology in the process of production. In a market where the competition is too high, they have to fight hard to survive in the market against the organised sector and their male counterpart who have vast experience and capacity to adopt advanced technology in managing enterprises

High cost of productionSeveral factors including inefficient management contribute to the high cost of production which stands as a stumbling block before women entrepreneurs. Women entrepreneurs face technology obsolescence due to non-adoption or slow adoption to changing technology which is a major factor of high cost of production.

Low risk-bearing capacityWomen in India are by nature weak, shy and mild. They cannot bear the amount risk which is essential for running an enterprise. Lack of education, training and financial support from outsides also reduce their ability to bear the risk involved in an enterprises.

Limited mobilityWomen mobility in India is highly limited and has become a problem due to traditional values and inability to drive vehicles. Moving alone and asking for a room to stay out in the night for business purposes are still looked upon with suspicious eyes. Sometimes, younger women feel uncomfortable in dealing with men who show extra interest in them than work related aspects.

Lack of entrepreneurial aptitudeLack of entrepreneurial aptitude is a matter of concern for women entrepreneurs. They have no entrepreneurial bent of mind. Even after attending various training programmes on entrepreneur ship women entrepreneurs fail to tide over the risks and troubles that may come up in an organizational working.

Limited managerial abilityManagement has become a specialized job which only efficient managers perform. Women entrepreneurs are not efficient in managerial functions like planning, organizing, controlling, coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited managerial ability of women has become a problem for them to run the enterprise successfully.

Legal formalitiesFulfilling the legal formalities required for running an enterprise becomes an upheaval task on the part o...

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