challenges faced by women entrepreneurs in india

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Post on 13-Jan-2015




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In the current business world, women entrepreneurs are playing a vital role and they have become important part of the economic development and social progress. Development Compared to other countries the development of women entrepreneurship is very low in India. The educated women have to go a long way to achieve equal rights and position because traditions are deep rooted in Indian society where the sociological set up has been a male dominated one. Despite all the social hurdles, Indian women entrepreneurs stand tall from the rest of the crowd and are applauded for their achievements in their respective field. This paper focuses on women entrepreneurs, reasons women become entrepreneurs, the challenges faced by women entrepreneurs and suggestions for the growth of women entrepreneurs.


  • 1. Author : R. Latha Department of Management Studies, Sapthagiri College of Engineering

2. Entrepreneurship is necessary to initiate the process of economic development of both developed and developing countries. It is also instrumental in sustaining the process of economic development. Every country tries to achieve economic development for prosperity and better life to people. So, contribution of both men and women is essential in economic activities for healthy nation building. 3. But in India, women have to face many constraints in carrying out economic activities or undertaking any entrepreneurial work. Women have to face various socio-economic and other problems as entrepreneurs as they are not treated at par with men due to social and cultural traditions. In recent years, it is observed that there has been increasing trend in number of women enterprises in India as the result of changing scenario of the present world. 4. The term entrepreneur has been derived from the French word entreprendre means to undertake. The term entrepreneur may be defined as an entrepreneur is a person who combines capital and labour for production. A "women entrepreneur" is any women who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk. 5. FIRST CATEGORY Established in big cities. Having higher technical qualifications. Sound financial positions. SECOND CATEGORY Established in cities and towns. Having sufficient education. Undertaking women services- kinder garden, crches, beauty parlours, etc. THIRD CATEGORY Illiterate Women. Financially week. Involved in family business like agriculture, dairy, handlooms, horticulture etc. 6. Womens family and personal obligations are sometimes a great barrier for succeeding in business career. Only few women are able to manage both home and business efficiently, devoting enough time to perform all their responsibilities in priority. The educational level and family backgrounds of husband also influences women participation in the field of enterprise. Absence of proper support, cooperation and back-up for women by their own family members and the outside world people force them to drop the idea of excelling in the enterprise field. They are always making many pessimistic feelings to be aroused in their minds and making them feel that family and not business is a place meant for them. 7. Many women take the training by attending the Entrepreneurial Development programme without an entrepreneurial bent of mind. Women who are imparted training by various institutes must be verified on account of aptitude through the tests, interviews, etc. High production cost of some business operations adversely affects the development of women entrepreneurs. The installations of new machineries during expansion of the productive capacity and like similar factors discourage the women entrepreneurs from venturing into new areas. Lack of awareness about the financial assistance in the form of incentives, loans, schemes etc. by the institutions in the financial sector. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas. 8. At present, the Government of India has over 27 schemes for women operated by different departments and ministries. Some of these are: Integrated Rural Development Programme (IRDP) Khadi And Village Industries Commission (KVIC) Training of Rural Youth for Self-Employment (TRYSEM) Prime Ministers Rojgar Yojana (PMRY) Entrepreneurial Development programme (EDPs) Management Development progammes 9. Womens Development Corporations (WDCs) Marketing of Non-Farm Products of Rural Women (MAHIMA) Assistance to Rural Women in Non-Farm Development (ARWIND) schemes Trade Related Entrepreneurship Assistance and Development (TREAD) Working Womens Forum Indira Mahila Yojana Indira Mahila Kendra Mahila Samiti Yojana Mahila Vikas Nidhi 10. Micro Credit Scheme Rashtriya Mahila Kosh SIDBIs Mahila Udyam Nidhi Mahila Vikas Nidhi SBIs Stree Shakti Scheme NGOs Credit Schemes Micro & Small Enterprises Cluster Development Programmes (MSE-CDP). National Banks for Agriculture and Rural Developments Schemes 11. Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP) Priyadarshini Project- A programme for Rural Women Empowerment and Livelihood in Mid Gangetic Plains NABARD- KFW-SEWA Bank project Exhibitions for women, under promotional package for Micro & Small enterprises approved by CCEA under marketing support 12. Women, being almost 50% population of India, have a pivotal role to play as far as economic development of country is concerned. The Government has increased the importance of women by adopting various schemes and programs for their participation in economic activities. The Indian society is shifting from conservative attitude to progressive attitude. So, women are getting more opportunities not only in entrepreneurial work but also in other domains of human life. 13. Women should be encouraged to take the benefits of policy measures introduced by the Government to promote the status and level of women entrepreneurs in the country. Increased support should be provided by the Government to help women entrepreneurs in order to overcome the challenges faced by them. Women entrepreneurs also require support from their family and society. They should be provided easy financial help without putting unrealistic conditions by banks and financial institutions. 14. If women entrepreneurs get support and encouragement from family, society, Government and financial institutions, such positive effort can open new avenues for them and increase the marketability and profitability of business owned by them. If the problems of women entrepreneurs are addressed properly, they can emerge as very successful entrepreneurs far better than men entrepreneurs.