Challenges Faced by Women Entrepreneurs in the Era of Globalization

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    Challenges Faced by Women Entrepreneurs in the

    Era of Globalization

    Abstract:Although entrepreneurship as an area of research has attracted a great deal of scholarlyattention in recent decades, most of the available studies relate to the entrepreneurial endeavors of men..

    Though the glass ceiling for corporate women has been widely documented, the negligible presence of

    firms owned by women entrepreneurs in the large firm bracket suggests that there may be an iron ceiling

    in operation for women business owners... This paper, based on a pilot study centered on the problems

    and challenges faced by women entrepreneur in the era of globalization and how a women can overcome

    it. .Also about various steps taken by government in order to promote women entrepreneurs Few case

    study is also been included in the paper in order to motivate the women especially planning to be an

    entrepreneur. The research is descriptive and exploratory A study of life history of leading women

    entrepreneurs in India is been examined and analyzed so that the information regarding their problems

    and challenges can be collected. The study is totally based on the secondary data collected from various

    sources. The study will have an important implication in development programmers and public policies.

    Also it throws light on the grey areas of a successful women entrepreneur which will ultimately help in

    providing better platform and horizon to women entrepreneurs. All business owners face certain

    challenges, but women, because of their gender, often have additional challenges and obstacles that their

    male peers are less likely to encounter. Working women who have children experience even more

    demands on time, energy and resources. But this does not mean women are less successful than men, in

    fact, statistics show that women are starting businesses at more than twice the rate of male-majority-

    owned businesses. The growing success rate of women entrepreneurs shows that they are resourceful,

    and able to succeed, despite the odds. After a decade of independence still Indian women are not treated

    as par with man. Also the government sponsored development activities have benefited only a small

    section of women. The large majority of them are still unaffected by change and development activities

    have benefited only a small section of women i.e. the urban middle class women. The reasons have been

    discussed in the paper. It is hoped that the suggestions forwarded in the article will help the

    entrepreneurs in particular and policy-planners.

    Keywords: Globalization, women entrepreneurs, Problems & Challenges, Success rate, Case study,Government Measures)

    Dr. Neha Tomar SinghFaculty, Economics, Bhartiya Vidya Bhavan- Usha &

    Lakshmi Mittal Institute of Management,

    New Delhi, India

    ISSN 2319-9725

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    1. The women Entrepreneurs: an IntroductionWomen Entrepreneurs may be defined as the women or a group of women who initiate,

    organize and operate a business enterprise. Government of India has defined women

    entrepreneurs as an enterprise owned and controlled by a women having a minimum financial

    interest of 51% of the capital and giving at least 51% of employment generated in the

    enterprise to women. Like a male entrepreneurs a women entrepreneur has many functions.

    They should explore the prospects of starting new enterprise; undertake risks, introduction of

    new innovations, coordination administration and control of business and providing effective

    leadership in all aspects of business. During the last two decades, Indian women have entered

    the field of entrepreneurship in greatly increasing numbers. With the emergence and growth

    of their businesses, they have contributed to the global economy and to their surrounding

    communities. The routes women have followed to take leadership roles in business are

    varied. Yet, most women business owners have overcome or worked to avoid obstacles and

    challenges in creating their businesses. The presence of women in the workplace driving

    small and entrepreneurial organizations creates a tremendous impact on employment and

    business environments. Indian women business owners are changing the face of businesses of

    today, both literally and figuratively. The dynamic growth and expansion of women-owned

    businesses is one of the defining trends of the past decade, and all indications are that it will

    continue unabated. For more than a decade, the numbers of women-owned businesses have

    grown at one-and-a-half to two times the rate of all businesses. Even more important, the

    expansion in revenues and employment has far exceeded the growth in numbers.

    2. Push-Pull Factors And Women In Business:Women in business are a recent phenomenon in India. By and large they had confide

    themselves to petty business and tiny cottage industries. Women entrepreneurs engaged in

    business due to push and pull factors which encourage women to have an independent

    occupation and stands on their own legs. A sense towards independent decision-making on

    their life and career is the motivational factor behind this urge. Saddled with household

    chores and domestic responsibilities women want to get independence. Under the influence

    of these factors the women entrepreneurs choose a profession as a challenge and as an urge to

    do some thing new. Such situation is described as pull factors. While in push factors women

    engaged in business activities due to family compulsion and the responsibility is thrust upon

    them.

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    3. The Profile of Some Famous Women Entrepreneurs and Their Enterprises inIndia:

    Indra Nooyi- 4th position- Chief Executivedesignates, Pepsi Co.

    This Madras born woman was a straight A student in her school. Nooyi did her bachelors

    from Madras Christian College and MBA from Indian Institute of Management, Calcutta.

    Nooyi then went to USA and attended Yale University. From Yale, she obtained degree on

    management. This brilliant corporate woman started her career in Boston Consulting Group

    and moved on to Motorola and Asea Brown Boveri. She joined Pepsi Co. in 1994. She turned

    the company into a bold risk taker. In 1998, Pepsi acquired Tropicana. In 1997, Pepsi started

    its own fast food chain. In 2001, she became President of Pepsi Cola. Wall Street Journal

    included her name in their top 50 women to watch in 2005. Fortune magazine declared her

    11th most powerful women in business.

    Vidya Manohar Chhabria95th positionChairman, Jumbo Group

    The wife of late Manohar Rajaram Chhabria, is now leading Jumbo Group, a Dubai based

    $1.5 billion business conglomerate. She became chairperson of the company after the death

    of her husband in 2002. She runs the business with the help of her three daughters. She was

    ranked 38th most powerful women by the Fortune magazine in 2003.

    Anu Aga- Chairperson (former) Thermax Group

    Like Vidya Manohar Chabaria, this woman also became the Chairperson of Thermax

    Engineering after the death of her husband Rohinton Aga. The companys condition was

    critical at that time. Its share price dipped to Rs. 36 from Rs. 400. Anu Aga, the then Director

    of Human Resource, Thermax, was compelled to take charge of the company. In order to

    make the company profitable, she brought a consultant from abroad and restructured the

    company. The strategy worked and the company saw profit again. She stepped down from the

    post of chairperson in 2004. Now, she spends most of her time in social activities. Bombay

    Management Association awarded her Management Woman Achiever of the Year Award

    2002-2003.

    Kiran Mazumdar-ShawBiocon

    She is the first female master brewer and the richest woman in India. Her father was a master

    brewer and he encouraged her to get into this profession. Shaw obtained her Honors degree in

    Zoology from Bangalore University. Then she went to Ballarat University to study brewery.

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    Her first job was in Carlton & United Beverages in 1974, as a trainee brewer. She started her

    firm Biocon India in 1978 in her garage. When she applied for loan to the banks, she was

    turned down. At that time, biotechnology was not known in India and she was a female and

    her company did not have much assets.

    With her hard work and determination she overcome all these obstacles and turned Biocon

    into the biggest biopharmaceutical firm in India.

    Simone TataManaging Director (former) Lakme

    With her visions, she changed a small unknown cosmetics company, one of the subsidiaries

    of Tata Oil Mills, into one of the leading cosmetic companies of India. Lakme changed the

    face of Indian fashion and cosmetics forever. For her success, Simone N. Tata is also known

    as Cosmetic Czarina of India. Simone joined Lakme in 1961 and became Chairperson in

    1982. The company is now sold to Hindustan Liver. Simone is now heading Trent Limited

    another subsidiary of the Tata Company.

    Indu Jain- Chairperson (former) The Times Group

    Indu Jain has many identities: spiritualist, entrepreneur, humanist, educationalist, great lover

    of art and culture. She was the Chairman of The Times Group, the biggest and the most

    powerful media house in India. The company was bought from a British group. Now, her two

    sons Samir and Vineet are running the company. Among the major products of the company,

    The Times of India, the largest selling English daily newspaper of the world. In 2000, Jain

    delivered speech at the Millennium World Peace Summit of Religious and Spiritual Leaders.

    Iyoti Naik

    Business: Shri Mahila Gram Udyog Lijjat Papad

    Purpose: Empowers women by providing them with employment opportunities.

    Anyone who knows anything about India has heard of or tried poppadums--the crackling,

    savory crisps that accompany main courses. And one brand that has made poppadums or

    papad an international success is Shri Mahila Gram Udyog. It started when a group of seven

    women casually got together one afternoon in 1959 to roll out papads on the terrace of a

    south Bombay house. They were quick to notice the potential of what they had begun, and

    production started under the name Lijjat Papad. Company President Jyoti Naik has led the

    women's cooperative to become one of India's most successful business ventures. Shri Mahila

    Gram Udyog has diversified into bakery products, detergents, spices and flour. It has built an

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    image as one of trusted homemade products of the finest quality at very reasonable prices.

    The company now has 62 authorized branches across the country and, with only women

    members, is being seen as the best village industry institution in India.

    Shahnaz Husain

    Purpose: Ayurvedic herbal care and cure Shahnaz Husain, who started India's first

    professional herbal salon in the balcony of her house in Delhi in 1971, now reigns over an

    Ayurvedic beauty care empire. Husain, who has worked with eminent names such as Helena

    Rubinstein, Christine Valmy, Swarzkopf and Lancome, realized early on how much damage

    chemical cosmetics can cause. Her customized beauty care based on the concept of "herbal

    care and cure" found instant appreciation, and the enterprise grew.

    4. Challenges Faced By Women Entrepreneur:Women owned businesses are highly increasing in the economies of almost all countries. The

    hidden entrepreneurial potentials of women have gradually been changing with the growing

    sensitivity to the role and economic status in the society. Skill, knowledge and adaptability in

    business are the main reasons for women to emerge into business ventures. Women

    Entrepreneur is a person who accepts challenging role to meet her personal needs and

    become economically independent. A strong desire to do something positive is an inbuilt

    quality of entrepreneurial women, who is capable of contributing values in both family and

    social life. With the advent of media, women are aware of their own traits, rights and also the

    work situations.. The challenges and opportunities provided to the women of digital era are

    growing rapidly that the job seekers are turning into job creators. They are flourishing as

    designers, interior decorators, exporters, publishers, garment manufacturers and still

    exploring new avenues of economic participation. In India, although women constitute the

    majority of the total population, the entrepreneurial world is still a male dominated one.

    Women in advanced nations are recognized and are more prominent in the business world.

    But the Indian women entrepreneurs are facing some major challenges like

    a. Lack Of Confidence In general, women lack confidence in their strength andcompetence. The family members and the society are reluctant to stand beside their

    entrepreneurial growth. To a certain extent, this situation is changing among Indian

    women and yet to face a tremendous change to increase the rate of growth in

    entrepreneurship.

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    b. Socio-Cultural Barriers Womens family and personal obligations are sometimes agreat 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.

    c. Market-Oriented Risks Stiff competition in the market and lack of mobility ofwomen make the dependence of women entrepreneurs on middleman indispensable.

    Many business women find it difficult to capture the market and make their products

    popular. They are not fully aware of the changing market conditions and hence can

    effectively utilize the services of media and internet.

    d. Motivational Factors Self motivation can be realized through a mind set for asuccessful business, attitude to take up risk and behavior towards the business society

    by shouldering the social responsibilities. Other factors are family support,

    Government policies, financial assistance from public and private institutions and also

    the environment suitable for women to establish business units.

    e. Knowledge In Business Administration Women must be educated and trainedconstantly to acquire the skills and knowledge in all the functional areas of business

    management. This can facilitate women to excel in decision making process and

    develop...

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