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

1. INTRODUCTION

Women 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 don’t 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 QUESTIONS

1. 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 RESEARCH

AIM

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.

OBJECTIVES

1. 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 district

5. 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 CONCEPTS

ENTREPRENEUR

An 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 ENTREPRENEUR

The term women entrepreneur refers to a women who is running her own or

family own business. A female entrepreneur is sometimes known as

entrepreneurs.

WOMEN

“Women 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 REVIEW

The literature review explains about the various problems and challenges

faced by women entrepreneurs in rural areas

FAMILY 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 SOCIETY

Even 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 EDUCATION

Women 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 BARRIERS

The 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 MATERIALS

The 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 FINANCE

Women 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 COMPETITION

Usually 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 PRODUCTION

Several 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 CAPACITY

Women 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 MOBILITY

Women 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 APTITUDE

Lack 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 ABILITY

Management 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 FORMALITIES

Fulfilling the legal formalities required for running an enterprise becomes

an upheaval task on the part of an women entrepreneur because of the

prevalence of corrupt practices in government offices and procedural delays for

various licenses, electricity, water and shed allotments. In such situations

women entrepreneurs find it hard to concentrate on the smooth working of the

enterprise.

EXPLOITATION BY MIDDLE MEN

Since women cannot run around for marketing, distribution and money

collection, they have to depend on middle men for the above activities. Middle

men tend to exploit them in the guise of helping. They add their own profit

margin which result in less sales and lesser profit.

LACK OF SELF CONFIDENCE

Women entrepreneurs because of their inherent nature, lack of self-

confidence which is essentially a motivating factor in running an enterprise

successfully. They have to strive hard to strike a balance between managing a

family and managing an enterprise. Sometimes she has to sacrifice her

entrepreneurial urge in order to strike a balance between the two.

Some of the basic problems a highlighted by various research studies

undertaken by women entrepreneurs are:

Lack of information

Lack of Micro Financing Schemes

Lack of Skill Development

Lack of Entrepreneurship / Business Skills

Lack of Marketing Facilities

Lack of Product Designs

Lack of Networking and building

Expensive Raw Materials

Low Quality Control

Non-Conducive Working Environment

Women may have particular problems with raising finance and may have

had less chance than most men to accumulate the confidence, skills and contacts

necessary to start and run a successful business.

In addition, gender discrimination by finance and support providers, customers

or employees may be an issue. Some previous research has suggested that it is

more difficult for women to raise start up and recurrent business finance than

men and those women are likely to encounter Credibility Problems when

dealing with bankers.

There are four areas of financing that can pose particular problems for

women. Firstly, women may be disadvantaged in their ability to raise start-up

finance. Second, guarantees required for external finance may be beyond the

scope of most women’s personal assets and credit track record. Third, once a

business is established, finance may be more difficult for female entrepreneurs

to raise than for their male counterparts, because of the greater difficulties that

women face in penetrating informal financial networks. Finally the relationship

between female entrepreneurs and bankers may suffer from discrimination.

Certainly, recent evidence suggests that female entrepreneurs use substantially

less capital at start-up than male owners, although intra-sectoral similarities

demonstrate that gender was only one of a number of variables affecting the

business financing process.

The lack of Access to information especial information relating to

Business and Technology poses a major hindrance in the progress of women

owned enterprises in Tamilnadu. Women, in Tamilnadu, have limited access to

technology and information, which leads to many problems. Their access to

information is mainly limited because of the restraint on their mobility and

communication due to socio-cultural factors. Lack of Access to information

hinders women entrepreneurs in many ways. A new start-up is never an easy job

and it is made more difficult when access to information regarding laws and

regulations is limited. Also women entrepreneurs, due to their limited resources

and limited accessibility usually do not have information about supplies;

middles men and lack know how about working out the feasibility of their start-

ups. The lack of access to information and technology also leads to certain

marketing problems, such as packing and designing. With better access to

business and technical information women entrepreneurs could also avail the

opportunity of marketing and selling through the World Wide Web.

‘Lack of management skills or training ‘was felt to be a problem for

women entrepreneurs because of their lower propensity to have had previous

business experience. Although difficulties in accessing business advice or

support appears to be a minor rather than major problem for women

entrepreneurs, while difficulties with language caused problems for their clients

or members.

Difficulties with access to markets and/or lack of marketing skills are

rated highly as problems. So lack of sales and marketing skills was the most

commonly reported problem faced by female entrepreneurs, after finance.

Other issues include:

Lack of availability of child care;

Society’s attitude towards women entrepreneurs;

Unequal opportunities between men and women;

Lack of confidence on the part of women;

This literature review section gives an overview of different researches

conducted by different authors on the problems faced by the women

entrepreneur in rural areas. The previous researches and literatures are very

useful to understand about the research topic and it is useful to frame the

questionnaire. The research would cover the rural areas of Trichy District,

Tamilnadu and this study identifies the problems or barriers and their relevant

impact on women entrepreneurial activities.

8. RESEARCH METHODOLOGY

SAMPLING PLAN

The rural Women entrepreneurs are the main source for collecting the

primary data using a well structured questionnaire. As the area of study is

limited in Trichy district of Tamil Nadu and as the total population of women

population is numerable, the researcher has proposed the sampling techniques

for the selection of respondents. To identify the right respondents which are also

very essential for the collection of primary data the following process has been

adopted scientifically. Finally 90 respondents were selected and included the

study from various Taluks of Trichy districts who have engaged to start an

enterprises and running successfully.

DEPENDENT AND INDEPENDENT VARIABLE

Dependent variables

Women entrepreneurial activities in rural areas

Independent Variables

Finance

Access to Technology

Skill Development

Networking and Trust Building

Expensive raw materials

Quality control

Working environment

Mobility

Communication Skills

Training

Mentoring

Socio cultural constraints

Moderating Variables

Education

Experience

Intervening variables

Socio cultural constraints

TOOLS

Personal interview is the major tool of data collection. Interview

technique is to be made at women entrepreneurs. The secondary data are also

proposed to collect from various departments. All these data are to be arranged

in various form of tables and proposed to critically analyse with the help of a

number of statistical tools. The statistical tools like Percentage Analysis and

Chi-Square will be applied to analyse and interpret the primary data.

9. LIMITATIONS

To purpose of this part is just to find out the specific weakness that may affect the findings of the study. During this research we face a no of problems due to which the internal as well as external validity of our research findings are affected.

These are as follows

1. Most of the women are not educated so they are not able to understand some questions.

2. Some of the women tailoring units were not cooperative3. The target market we are focusing is from rural areas so we have to face

some difficulties in tracing their homes.4. Some family members of illiterate women don’t allow them to meet with

us.5. Due to lack of education of these women we are also facing

communication problem.6. Due to social pressure many women know what problems they are facing

but they are not allowed to tell that.7. Lab was not frequently available which a main problem for us.

10. PLAN OF STUDY

The research study explains about the concept of Entrepreneur, Women

Entrepreneur, Challenges faced by the Women Entrepreneur.

Major problems faced by the women in rural areas are expalained.

REFERENCES

1. Greene, P.G.; Hart, M.M.; Gatewood, E.J; Brush, C.G; Carter, N.M.

(2003).Women Entrepreneurs: Moving Front and Center: An Overview of

Research and Theory. United States Association for Small Business and

Entrepreneurship (USASBE). White Papers: p.1-47

2. Lerner, M; Almor, T (2002). Relationships among Strategic Capabilities and

the Performance of Women-Owned Small Ventures. Journal of Small Business

Management, 40 (2): p.109- 125.

3. Soundarapandian, M. (1999), Women entrepreneurship, Kanishka Publishers,

New Delhi

4. Yadav, J., (1999), Profile of Women Entrepreneurs in Saurashtra Region,

Ph.D. Thesis Department of Commerce, Saurashtra University, Rajkot.

5. Rao, P., (2002), Entrepreneurship and Economics Development, Kaniska

Publishers, New Delhi.

6. Mehrotra, N. (2003), Managerial Problems among Working Family Headed

Households,

Research Paper Presented at XXV BiennialConference of Home Science

Association of India on Enhancing the Qualityof Life Through Family and

Community Science Hosted by Home ScienceAssociation of India, Nagpur

Chapter.

7. Chhichhia, V., (2004), Problems faced by Women Entrepreneurs and

Importance of Training in their Entrepreneurs, Research Paper Presentedat

National seminar on Women Entrepreneurship – A Need for Training

andCurriculum Development held by Development of Home Science

Extensionand Communication, Faculty of Home Science, M. S. University,

Vadodara.

8. Kapadia, S. Barodia, S.. (2004), Women Entrepreneurs : Problems and

Difficulties , Research Paper Presented at National seminar on Women

Entrepreneurship – A Need for Training and Curriculum Development held by

Development of Home Science Extension and Communication, Faculty of

Home Science , M. S. University, Vadodara.

9. Rao, K., (2004), Women Entrepreneur in Lower Middle Class Families and

their Problems, Research Paper Presented at National seminar on Women

Entrepreneurship – A Need for Training and Curriculum Development held by

Development of Home Science Extension and Communication, Faculty of

Home Science , M. S. University, Vadodara.

10. Jobanputra V., (2004), Women Entrepreneurs –A New Face of Professional

Women, Research Paper Presented at National Seminar on Current Trendsand

Issues in Home Science, Saurashtra University, Rajkot.

11. Nayyar P., Sharma A., Kishtwaria J., Rana A., Vyas N. (2007), Causes and

Constraints Faced by Women entrepreneurs in Entrepreneurial Process, Journal

of Social Sciences, Vol.14, No.2, pp. 99-102.

12. Vatharkar (2012), A Study of Constraints and Motivating Factors for Indian

Women Entrepreneurs in Small Scale Industries, The 2012 International

Conference on Business and Management, 6 – 7 September 2012, Phuket -

Thailand

13. United Nations Industrial Development Organization (UNIDO).

(1995).“Women, industry and entrepreneurship.” Women in Industry Series.

Vienna, Austria.

14. Loscocco, K.A.; Leicht, K.T. (November, 1993) Gender, Work-Family

Linkages, and Economic Success among Small Business Owners. Journal of

Marriage and the Family. Vol. 55: p.875-887.

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

QUESTIONNAIRE

1. a) Age Category :

Below 18 18-25 26-35 36-45 46-55 55 and above

b) Your age when you start this business :Below 18 18-25 26-35 36-45 46-55 55 and above

2. Marital Status?Single Married Separated Divorced Widowed

3. What Educational background do you have?Primary school Secondary Diploma U.G. P.G. PhD

4. Do you have any experience of working before anywhere?Not at all somewhat moderate very much

5. How you can well define the purpose of your job?To satisfy your financial needsDesire to enjoy the job for its own rewards To prove yourselfTo become independent

6. Do the people in the society criticize upon you for doing this work?Not at all Some-what moderately very much

7. Are you taking any of the following steps to enhance your skills?Getting educationGetting computer trainingGetting training to required field Seeking advice from some experienced person

8. Is your family supporting you in your activities?Not at all somewhat moderately very much

9. Do you face any problem in managing your work and the personal life?Not at all A little bit moderate yes a lot

10.You compromise on the quality of raw material in case you lack finance?strongly disagree disagree neither agree nor disagree agree strongly agree

11.What was the very first problem that you face while starting your business?

Finance Social support Experience Mentor Any other---------

12.How do you rank following in the order of importance for entrepreneurial activities?Finance Communication Training Mobility Socialsupport

13.What do you think govt should promote women entrepreneurial activities?Open vocational training institutes in rural areasRelaxation in the terms of MicroFinanceOthers --------------

14.What does your modes of transportation?public private

15.What type of enterprise are you engaged in?Trading service manufacturing other

16.What are the major source of money you started this enterprise with?

Borrowed / got loan from Financial Institution

Savings over a period of time

Savings from other enterprise / business

Borrowed from a friend / relative

Help from friends/ relation /Others.

17.Is your enterprise registered?

Yes No

18.Does your business have a bank account?Yes No

19.Do you contribute money from your business towards household

expenditure ?Not at all Some what Moderately Very much

20.Give most prominent problems faced by women entrepreneurs in Trichy.

.........................................................................

.........................................................................

..........................................................................

_________________________