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Problems of Women Entrepreneurs in India - August 18th, 2009 Problems of Women Entrepreneurs in India

Women in India are faced many problems to get ahead their life in business. A few problems cane be detailed as;

1. The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal – male dominant social order is the building block to them in their way towards business success. Male members think it a big risk financing the ventures run by women.

2. The financial institutions are skeptical about the entrepreneurial abilities of women. The bankers consider women loonies as higher risk than men loonies. The bankers put unrealistic and unreasonable securities to get loan to women entrepreneurs. According to a report by the United Nations Industrial Development Organization (UNIDO), "despite evidence that women's loan repayment rates are higher than men's, women still face more difficulties in obtaining credit," often due to discriminatory attitudes of banks and informal lending groups (UNIDO, 1995b).

3. Entrepreneurs usually require financial assistance of some kind to launch their ventures - be it a formal bank loan or money from a savings account. Women in developing nations have little access to funds, due to the fact that they are concentrated in poor rural communities with few opportunities to borrow money (Starcher, 1996; UNIDO, 1995a). The women entrepreneurs are suffering from inadequate financial resources and working capital. The women entrepreneurs lack access to external funds due to their inability to provide tangible security. Very few women have the tangible property in hand.

4. Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. "Having primary responsibility for children, home and older dependent family members, few women can devote all their time and energies to their business" (Starcher, 1996, p. 8).The financial institutions discourage women entrepreneurs on the belief that they can at any time leave their business and become housewives again. The result is that they are forced to rely on their own savings, and loan from relatives and family friends.

5. Indian women give more emphasis to family ties and relationships. Married women have to make a fine balance between business and home. More over the business success is depends on the support the family members extended to women in the business process and management. The interest of the family members is a determinant factor in the realization of women folk business aspirations.

6. Another argument is that women entrepreneurs have low-level management skills. They have to depend on office staffs and intermediaries, to get things done, especially, the marketing and sales side of business. Here there is more probability for business fallacies like the intermediaries take major part of the surplus or profit. Marketing means mobility and confidence in dealing with the external world, both of which women have been discouraged from developing by social conditioning. Even when they are otherwise in control of an enterprise, they often depend on males of the family in this area.

7. The male - female competition is another factor, which develop hurdles to women entrepreneurs in the business management process. Despite the fact that women entrepreneurs are good in keeping their service prompt and delivery in time, due to lack of organisational skills compared to male entrepreneurs women have to face constraints from competition. The confidence to travel across day and night and even different regions and states are less found in women compared to male entrepreneurs. This shows the low level freedom of expression and freedom of mobility of the women entrepreneurs.

8. Knowledge of alternative source of raw materials availability and high negotiation skills are the basic requirement to run a business. Getting the raw materials from different souse with discount prices is the factor that determines the profit margin. Lack of knowledge of availability of the raw materials and low-level negotiation and bargaining skills are the factors, which affect women entrepreneur's business adventures.

9. Knowledge of latest technological changes, know how, and education level of the person are significant factor that affect business. The literacy rate of women in India is found at low level compared to male population. Many women in developing nations lack the education needed to spur successful entrepreneurship. They are ignorant of new technologies or unskilled in their use, and often unable to do research and gain the necessary training

(UNIDO, 1995b, p.1). Although great advances are being made in technology, many women's illiteracy, strucutural difficulties, and lack of access to technical training prevent the technology from being beneficial or even available to females ("Women Entrepreneurs in Poorest Countries," 2001). According to The Economist, this lack of knowledge and the continuing treatment of women as second-class citizens keeps them in a pervasive cycle of poverty ("The Female Poverty Trap," 2001). The studies indicates that uneducated women donot have the knowledge of measurement and basic accounting.

10. Low-level risk taking attitude is another factor affecting women folk decision to get into business. Low-level education provides low-level self-confidence and self-reliance to the women folk to engage in business, which is continuous risk taking and strategic cession making profession. Investing money, maintaining the operations and ploughing back money for surplus generation requires high risk taking attitude, courage and confidence. Though the risk tolerance ability of the women folk in day-to-day life is high compared to male members, while in business it is found opposite to that.

11. Achievement motivation of the women folk found less compared to male members. The low level of education and confidence leads to low level achievement and advancement motivation among women folk to engage in business operations and running a business concern.

12. Finally high production cost of some business operations adversely affects the development of women entrepreneurs. The installation of new machineries during expansion of the productive capacity and like similar factors dissuades the women entrepreneurs from venturing into new areas.

Introduction

Women 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.

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 on 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.

Problems of Women Entrepreneurs in India


1. The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal – male dominant social order is the building block to them in their way towards business success. Male members think it a big risk financing the

ventures run by women.



4. Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. "Having primary responsibility for children, home and older dependent family members, few women can devote all their time and energies to their business" (Starcher, 1996, p. .The financial institutions discourage women entrepreneurs on the belief that they can at any time leave their business and become housewives again. The result is that they are forced to rely on their own savings, and loan from relatives and family friends.



7. The male - female competition is another factor, which develop hurdles to women entrepreneurs in the business management process. Despite the fact that women entrepreneurs are good in keeping their service prompt and delivery in time, due to lack of organisational skills compared to male entrepreneurs women have to face constraints from competition. The confidence to travel across day and night and even different regions and states are less found in women compared to male entrepreneurs. This shows the low level freedom of expression and freedom of mobility of the women entrepreneurs.


9. Knowledge of latest technological changes, know how, and education level of the person are significant factor that affect business. The literacy rate of women in India is found at low level compared to male population. Many women in developing nations lack the education needed to spur successful entrepreneurship. They are ignorant of new technologies or unskilled in their use, and often unable to do research and gain the necessary training (UNIDO, 1995b, p.1). Although great advances are being made in technology, many women's illiteracy, strucutural difficulties, and lack of access to technical training prevent the technology from being beneficial or even available to females ("Women Entrepreneurs in Poorest Countries," 2001). According to The Economist, this lack of knowledge and the continuing treatment of women as

second-class citizens keeps them in a pervasive cycle of poverty ("The Female Poverty Trap," 2001). The studies indicates that uneducated women donot have the knowledge of measurement and basic accounting.




How to Develop Women Entrepreneurs?

Right efforts on from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Following efforts can be taken into account for effective development of women entrepreneurs.

1. Consider women as specific target group for all developmental programmes.

2. Better educational facilities and schemes should be extended to women folk from government part.

3. Adequate training programme on management skills to be provided to women community.

4. Encourage women's participation in decision-making.

5. Vocational training to be extended to women community that enables them to understand the production process and production management.

6. Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops.

7. Training on professional competence and leadership skill to be extended to women entrepreneurs.

8. Training and counselling on a large scale of existing women entrepreneurs to remove psychological causes like lack of self-confidence and fear of success.

9. Counselling through the aid of committed NGOs, psychologists, managerial experts and technical personnel should be provided to existing and emerging women entrepreneurs.

10. Continuous monitoring and improvement of training programmes.

11. Activities in which women are trained should focus on their marketability and profitability.

12. Making provision of marketing and sales assistance from government part.

13. To encourage more passive women entrepreneurs the Women training programme should be organised that taught to

recognize her own psychological needs and express them.

14. State finance corporations and financing institutions should permit by statute to extend purely trade related finance to women entrepreneurs.

15. Women's development corporations have to gain access to open-ended financing.

16. The financial institutions should provide more working capital assistance both for small scale venture and large scale ventures.

17. Making provision of micro credit system and enterprise credit system to the women entrepreneurs at local level.

18. Repeated gender sensitisation programmes should be held to train financiers to treat women with dignity and respect as persons in their own right.

19. Infrastructure, in the form of industrial plots and sheds, to set up industries is to be provided by state run agencies.

20. Industrial estates could also provide marketing outlets for the display and sale of products made by women.

21. A Women Entrepreneur's Guidance Cell set up to handle the various problems of women entrepreneurs all over the state.

22. District Industries Centres and Single Window Agencies should make use of assisting women in their trade and business guidance.

23. Programmes for encouraging entrepreneurship among women are to be extended at local level.

24. Training in entrepreneurial attitudes should start at the high school level through well-designed courses, which build confidence through behavioral games.

25. More governmental schemes to motivate women entrepreneurs to engage in small scale and large-scale business ventures.

26. Involvement of Non Governmental Organisations in women entrepreneurial training programmes and counselling.

Conclusion

Independence brought promise of equality of opportunity in all sphere to the Indian women and laws guaranteeing for their equal rights of participation in political process and equal opportunities and rights in education and employment were enacted. But unfortunately, 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 large majority of them are still unaffected by change and development. The reasons are well sighted in the discussion part of this article. It is hoped that the suggestions forwarded in the article will help the entrepreneurs in particular and policy-planners in general to look into this problem and develop better schemes, developmental programmes and opportunities to the women folk to enter into more entrepreneurial ventures. This article here tries to recollect some of the successful women entrepreneurs like Ekta Kapoor, Creative Director, Balaji Telefilms, Kiran Mazumdar Shaw, CEO, Biocon, Shahnaz Husain and Vimalben M Pawale, Ex President, Sri Mahila Griha Udyog Lijjat Papad (SMGULP).

Women Entrepreneurship In India Since ages India has been men-dominated country. But, time is changing now. Women in India have outraged the fact that since hundreds of years they had been following the orders of men. They now know their rights and duties and with the spreading awareness amongst the women they are now no less then the men. They are walking with men at the same pace in each and every field.

Following this latest trend, women are no less and backward any more. Many women have established their own economy i.e., entrepreneurial empire and are now ruling their world as they wished to. 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. This is great news. But, a part of women in some parts of the country still do not know their power. They don't know that they can break the domination over men and move on, walk on and fight for their freedom. They can live like princess in their own Disney world.

Some serious constraints faced by women trying to enter in this field are:

Lack of Confidence : women lack confidence in their strength and competence. The family members and the society are reluctant to stand beside their entrepreneurial growth.

Socio- Cultural Barriers : Women's family and personal obligations are sometimes a great barrier for succeeding in business career.

Market-oriented risks - Stiff competition in the market and lack of mobility of women make the dependence of women entrepreneurs on middleman indispensable.

Motivational factors - Self motivation can be realized through a mind set for a successful business, attitude to take up risk and behavior towards the business society by shouldering the social responsibilities.

Knowledge in Business Administration - Women must be educated and trained constantly to acquire the skills and knowledge in all the functional areas of business management.

Identifying the available resources - Women are hesitant to find out the access to cater their needs in the financial and marketing areas.

http://www.freshersworld.com/blogs/post/10/09/28/Women-Entrepreneurship-In-India

Apart from the barriers let's see what all qualities does an entrepreneur requires? They are:

o Innovative thinking and farsightedness.

o Quick and effective decision making skill.

o Ability to mobilize and marshal resources.

o Strong determination and self confidence.

o Preparedness to take risks.

o Accepting changes in right time.

o Access and alertness to latest scientific and technological information

Many women have these qualities but they never got a platform to showcase their talents and hence they don't know their real abilities.

Lets' join hands and mark the beginning to raise the women and influence them, motivate them by showing them the various vibrant paths waiting for them. And all the women, who've read it, remember: "Nothing is impossible... " this is what you teach your students or children. Follow it for yourself as well..!!! Life will then be wonderfull.

Success often comes to those who have the aptitude to see way down the road.” Success is a matter of attitude. It is a matter of futuristic thinking and planning and is about doing things carefully. Relying on the same, Indian women are becoming increasingly visible and successful in the professional and public sphere. The Indian women have proved their footage in the male dominated business arena. For a nation where the only identity of a woman some time back used to be that of a homemaker, hogging the corporate limelight has been a journey to empowerment and strength.

Today innumerable women are filling colors of success in their life and moving a step closer to their dreams of being self dependent. Many of them are entering the corporate field as financial advisors, investment bankers, chartered accountants etc. and doing their job with unmatched excellence and poise. From the confines of four walls to outer space, the Women of today are busy writing the golden tale of emancipation. Call it her urge to prove herself equal to man or better or plain conviction; she has left marks on the tallest of peaks and the deepest of oceans.

SCOPE OF WOMEN ENTREPRENEURSHIPThe hidden entrepreneurial potential of women has gradually been changing with the growing sensitivity to the

role and economic status in the society. Women are increasingly becoming conscious of their existence, their rights and their work situations. Today, women entrepreneurs represent a group of women who have broken away from the beaten track and are exploring new avenues of economic participation. Among the reasons for women to run organized enterprises are their skill and knowledge, their talents, abilities and creativity in business and a compelling desire of wanting to do something positive.Women today are radiating that unmistakable glow of leadership. The time has come for the nations to celebrate and salute the success of women. It is high time that countries should rise to the challenge and create more support systems for encouraging more entrepreneurship amongst women. At the same time, it is up to women to break away from stereotyped mindsets.

INDIAN WOMEN: AN ENTREPRENEURIAL PERSPECTIVE

What is the picture that conjures up when one thinks of Indian women? Any discussion on the status of women in India tends to conjure up pictures of Illiteracy, exploitation, discrimination and low life expectancy. Although this is still true for many Indian women, another reality is driving a new India and relates to a booming nation, powered by female business leaders. Though they are not the majority, Indian women professionals are definitely

on the rise and are paving the way for future generations.

SCOPE OF WOMEN ENTREPRENEURSHIP IN INDIA The emergence of women entrepreneurs and their contribution to the national economy is quite visible in India. The number of women entrepreneurs has grown over a period of time, especially in the 1990s. Women entrepreneurs need to be lauded for their increased utilization of modern technology, increased investments, finding a niche in the export market, creating a sizeable employment for others and setting the trend for other women entrepreneurs in the organized sector.

It is estimated that women entrepreneurs presently comprise about 10% of total number of entrepreneurs in India, with the per cent growing every year and if the prevailing trends continue it is likely that in another five years women will comprise 20% of entrepreneurial force. With the corporate sector eager to associate and work with women owned businesses and a host of banks and non-governmental organizations keen to help them get going, there has rarely been a better time for women, with zeal and creativity, to start their own business.

REASONS FOR GROWTH OF WOMEN AS ENTREPRENEURS One may question the reasons that sparked the sudden rise of Indian women in the corporate world. Women are more likely than men to admit when they do not know something and ask for help. They are natural net workers and relationship builders, forging powerful bonds and nurturing relationships with clients and employees alike. They are more inclined to seek out mentors and develop supportive teams. This perhaps is the reason why more and more women tend stepping into the corporate word.

REASONS WHY WOMEN ARE BETTER Stability : Women do not change activity frequently and tend to grow with the same.

Quick Learners : Women are eager to learn and are quick on the activity learners.

Adaptability : Women adapt to change very well and make the most of available environment.

Attitude: Women generally have the positive attitude most of the time and usually hold the attention of people better than men.

Articulate: Women, more often than not, are very articulate and expressive.

Moreover, a study entitled The DNA of Women Leaders conducted in UK and US by London-based Aurora and New Jersey-based Caliper discovered that Women leaders were highly persuasive, that they had an

“inclusive team-oriented style of problem solving and decision making and that “women leaders are more likely to ignore rules and take risks”.

LET’S TAKE A PEEP IN TO THE LIVES OF SOME OF THE MOST SUCCESSFUL WOMEN TODAY AND LEARN AND GET INSPIRED FROM THESE “WONDER WOMEN”, WHO EPITOMIZE PURPOSE,

STRENGTH AND EMPOWERMENT.

Dr. Kiran Mazumdar Shaw, CEO, Biocon : Founder of India’s Largest Biotech Company to produce Biocon’s first proprietary drug, for Head and Neck Cancer. Decorated with Padamshri in

1989 and Padam Bhushan in 2005. Mrs Sulajja Firodia Motwani, Joint Managing Director, Kinectic Engineering and MD Kinetic

Finance.

Ms. Anuradha Desai, Chairperson : Venkateshwara Hatcheries Second largest company producer of eggs in the world having turnover of Rs. 1800 crore.

Ms. Vidya Chhabria, Chairperson: Jumbo Group

Ms. Ritu Kumar : The diva of Indian Fashion; One of the earliest and most famous designers of India. She has been in the Fashion Designing Business since 1977. She has pioneered the term

“fashion” in the Indian Context, and more importantly, has demonstrated that hand made products can be as profitable and even more glamorous than those made by machine

PROBLEMS FACED BY SMALL SCALE WOMEN ENTREPRENEURSLife for Woman Entrepreneur having a small scale industry is not a bed of roses. The individual woman entrepreneur single-handedly faces a plethora of seemingly endless problems.

1. Bank and other Financial Institutions do not consider Middle Class Women Entrepreneurs as “Serious” applicants for setting up their projects and they are hesitant to provide financial assistance to unmarried women or girls taking into consideration that who will return the loan either parents or in-laws. This humiliates unmarried women and they generally leave the idea to set up their ventures.

2. Attitude of Officers of Support System is not motivating and encouraging as they have the belief that setting up of business/ industry is not the Women’s cup of tea.

3. Financial Support System suffers from adhocism/ unpredictable delays.

4. Moving in and around the Market, is again a tough job for Middle Class Women Entrepreneurs in India Social system.

5. Women cannot get Sales Tax number (Regd.) without a male partner. This again humiliates prospective Women Entrepreneurs. This is male chauvinism at its worst and that too at the eve of the 21st Century.

6. The Security/ Surety and collateral requirements of Banks and Financial Institutions specially frustrate unmarried women/ girls. It is extremely difficult for girls and sometime other women also particularly those, coming from a lower Socio-Economic level to set up a modest sized unit as their own financial and other resources are barely inadequate to meet the promoter’s contribution.

7. Man in the role of Father/ Brother/ Husband in general are not ready to accept Entrepreneurship as career option for women in their homes, as it is unorganized and is full time activity.

8. Personal (family) reasons like : Women’s more inclination towards family activity For married middle class women in India : “Family is the priority”. For unmarried women: “Marriage is the priority because of Indian social system.

But despite these numerous barriers and tangible obstacles women are, today, entering the field of business in increasing numbers.THE WAY AHEAD Although Women are increasingly making their mark in the typically male dominated workplace but they comprise a very meager portion of the entrepreneurs in India. The woman in India still needs to be courageous, risk taking, challenge seeking and above all they are required to be independent. They need to break themselves free from the confines of the four wall of home, which is traditionally recognized role of women in our country, and to come out of the cocoon of a subservient living provided by male family members.

This requires a change in cultural ethos and training the male mindset to recognize women as equals and not inferior to them through a multipronged action at legislative, administrative, legal, social, educational and cultural levels.Three crucial things for aspiring Indian women entrepreneurs

Be Courageous: Do not worry about the fact that you are a woman and chances are that others will not worry about it either. Very often the problem is not external if it’s not internal.

Find and use external support: Today Woman Entrepreneurs have a lot of external support – special funds, working capital loans, network groups – find them & use them well. Banks like SIDBI, Women Co-operative Banks are Women friendly.

Manage your guilt well: If you also have a family to look after. Guilt is not good for you/ your family/ your business. You will realize that fulfilling your dreams is what you love to do and your family might as well realize this too. The family may look at you to keep the home fires running – but the flip side is that you may not have to be the bread earner! Enjoy this freedom and do something that you truly want to do.

CONCLUSION1. The Role of Women is crucial to any society’s formation.

2. Today the world has recognized the need for promoting women Entrepreneurship.

3. All the Problems have Solutions.

4. Solutions are because there are problems.Solutions are indirectly known as:

Business is Tough especially for Women.“Tough time never goes. It is the tough people who do it.” Woman is tough but she has to be very tough to succeed in business world.

It is rightly said that “

To awaken people, it is the woman who must be awakened. Once she is on the move, the family moves, the village moves and the nation moves”.

Women Enterpreneurship Development in India

By

Sanjukta MishraFaculty

Global Institute of ManagementBhubaneswar

Abstract

Women entrepreneurship development is an essential part of human resource development. The development of women entrepreneurship is very low in India, especially in the rural areas. Entrepreneurship amongst women has been a recent concern. Women have become aware of their existence their rights and their work situation. However, women of middle class are not too eager to alter their role in fear of social backlash. The progress is more visible among upper class families in urban cities.

This paper focuses on women entrepreneur. Any understanding of Indian women, of their identity, and especially of their role taking and breaking new paths, will be incomplete without a walk down the corridors of Indian history where women have lived and internalized various role models. The paper talks about the status of women entrepreneurs and the problems faced by them when they ventured out to carve their own niche in the competitive world of business environment.

INTRODUCTION-

The Indian economy has been witnessing a drastic change since mid -1991, with new policies of economic liberalization, globalization and privatization initiated by the Indian government. India has great

entrepreneurial potential. At present, women involvement in economic activities is marked by a low work participation rate, excessive concentration in the unorganized sector and employment in less skilled jobs.

Any strategy aimed at economic development will be lop-sided without involving women who constitute half of the world population. Evidence has unequivocally established that entrepreneurial spirit is not a male prerogative. Women entrepreneurship has gained momentum in the last three decades with the increase in the number of women enterprises and their substantive contribution to economic growth. The industrial performance of Asia-Pacific region propelled by Foreign Direct Investment, technological innovations and manufactured exports has brought a wide range of economic and social opportunities to women entrepreneurs.

In this dynamic world, women entrepreneurs are an important part of the global quest for sustained economic development and social progress. In India, though women have played a key role in the society, their entrepreneurial ability has not been properly tapped due to the lower status of women in the society. It is only from the Fifth Five Year Plan (1974-78) onwards that their role has been explicitly recognized with a marked shift in the approach from women welfare to women development and empowerment. The development of women entrepreneurship has become an important aspect of our plan priorities. Several policies and programmes are being implemented for the development of women entrepreneurship in India.

There is a need for changing the mindset towards women so as to give equal rights as enshrined in the constitution. The progress towards gender equality is slow and is partly due to the failure to attach money to policy commitments. In the words of president APJ Abdul Kalam "empowering women is a prerequisite for creating a good nation, when women are empowered, society with stability is assured. Empowerment of women is essential as their thoughts and their value systems lead to the development of a good family, good society and ultimately a good nation."

When a woman is empowered it does not mean that another individual becomes powerless or is having less power. On the contrary, if a women is empowered her competencies towards decision- making will surely influence her family's behavior.

In advanced countries, there is a phenomenon of increase in the number of self- employed women after the world war 11. In USA, women own 25% of all business, even though their sales on an average are less than two-fifths of those of other small business. In Canada, women own one-third of small business and in France it is one-fifth.

Concept of Entrepreneur- The word ' entrepreneur' derives from the French word "Entreprendre" (to undertake) .in the early 16th Century it was applied to persons engaged in military expeditions, and extend to cover construction and civil engineering activities in the 17th century, but during the 18th century , the word 'entrepreneur' was used to refer to economic activities. Many authors have defined 'entrepreneur' differently. Generally, an entrepreneur is a person who combines capital and labour for production. According to Cantillion "entrepreneur is the agent who buys means of production at certain prices, in order to sell at prices that are certain at the moment at which he commits himself to his cost". According to P.F Drucker " he is one who always (1) searches for change (2) responds to it (3) exploits it as an opportunity."

Concept of women Entrepreneur Enterprise-" A small scale industrial unit or industry –related service or business enterprise, managed by one or more women entrepreneurs in a concern, in which they will individually or jointly have a share capital of not less than 51% as shareholders of the private limited company, members of co-operative society".

Categories of Women Entrepreneurs

• Women in organized & unorganized sector• Women in traditional & modern industries• Women in urban & rural areas• Women in large scale and small scale industries.• Single women and joint venture.

Categories of Women Entrepreneurs in Practice in India

• First Category– Established in big cities– Having higher level technical & professional qualifications– Non traditional Items– Sound financial positions

• Second Category– Established in cities and towns– Having sufficient education

– Both traditional and non traditional items– Undertaking women services-kindergarten, crèches, beauty parlors, health clinic etc

• Third Category– Illiterate women– Financially week– Involved in family business such as Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Agro Forestry, Handloom, Power loom etc.

Supportive Measures for Women's Economic Activities and Entrepreneurship

• Direct & indirect financial support• Yojna schemes and programmes• Technological training and awards• Federations and associations

Direct & Indirect Financial Support

• Nationalized banks• State finance corporation• State industrial development corporation• District industries centers• Differential rate schemes• Mahila Udyug Needhi scheme• Small Industries Development Bank of India (SIDBI)• State Small Industrial Development Corporations (SSIDCs)

Yojna Schemes and Programme

• Nehru Rojgar Yojna• Jacamar Rojgar Yojna• TRYSEM• DWACRA

Technological Training and Awards

• Stree Shakti Package by SBI• Entrepreneurship Development Institute of India• Trade Related Entrepreneurship Assistance and Development (TREAD)• National Institute of Small Business Extension Training (NSIBET)• Women's University of Mumbai

Federations and Associations

• National Alliance of Young Entrepreneurs (NAYE)• India Council of Women Entrepreneurs, New Delhi• Self Employed Women's Association (SEWA)• Association of Women Entrepreneurs of Karnataka (AWEK)• World Association of Women Entrepreneurs (WAWE)• Associated Country Women of the World (ACWW)

Women Entrepreneurship in India

States No of UnitsRegistered

No. of WomenEntrepreneurs

Percentage

Tamil Nadu 9618 2930 30.36 Uttar Pradesh 7980 3180 39.84 Kerala 5487 2135 38.91 Punjab 4791 1618 33.77 Maharastra 4339 1394 32.12 Gujrat 3872 1538 39.72 Karnatka 3822 1026 26.84 Madhya Pradesh 2967 842 28.38

Other States & UTS 14576 4185 28.71 Total 57,452 18,848 32.82

Women Work Participation

Country Percentage India (1970-1971) 14.2 India (1980-1981) 19.7 India (1990-1991) 22.3 India (2000-2001) 31.6 USA 45 UK 43 Indonesia 40 Sri Lanka 35 Brazil 35

Some examples

• Mahila Grih Udyog– 7 ladies started in 1959: Lizzat Pappad

• Lakme– Simon Tata

• Shipping coorporation– Mrs. Sumati Morarji

• Exports– Ms. Nina Mehrotra

• Herbal Heritage– Ms. Shahnaz Hussain

• Balaji films- Ekta Kapoor

• Kiran Mazumdar- Bio-technology

Naina Lal Kidwai, Investment BankerFortune magazine listed her as one of the world's most powerful businesswomen in 2003. India Inc recognises her as one of its most powerful investment bankers. But Naina Lal Kidwai, HSBC's deputy CEO, can't be reduced to simple woman-banker equations; her professional vision transcends gender.

Shahnaz Husain, Herbal Beauty QueenShe's the "Estee Lauder of India", with even famous department stores like Galleries Lafayette in Paris, Harrods and Selfridges in London and Bloomingdales in New York stocking her cosmetics, creams and lotions.

Director, Academic Success ProgramShe practiced law as a business litigator for three years, and then as a transactional attorney for the Silicon Valley Law Group for several years. Her main responsibilities as a transactional attorney were in the following areas: mergers and acquisitions, investor financing and corporate funding, business formation and corporate governance, securities compliance for privately held and public companies.

Lalita Gupte, Banker She's created a formidable global presence of what was once a native development finance institution. Account-holders can now bank at ICICI branches in UK, the Far East, West Asia and Canada. With ICICI since 1971, Gupte was the first woman to be inducted on the board in 1984

Problems of Women Entrepreneurs in India


1. The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal – male dominant social order is the building block to them in their way towards business success. Male members think it a big risk financing the ventures run by women.



4. Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. "Having primary responsibility for children, home and older dependent family members, few women can devote all their time and energies to their business" (Starcher, 1996, p. .The financial institutions discourage women entrepreneurs on the belief that they can at any time leave their business and become housewives again. The result is that they are forced to rely on their own savings, and loan from relatives and family friends.



7. The male - female competition is another factor, which develop hurdles to women entrepreneurs in the business management process. Despite the fact that women entrepreneurs are good in keeping their service prompt and delivery in time, due to lack of organizational skills compared to male entrepreneurs women

have to face constraints from competition. The confidence to travel across day and night and even different regions and states are less found in women compared to male entrepreneurs. This shows the low level freedom of expression and freedom of mobility of the women entrepreneurs.


9. Knowledge of latest technological changes, know how, and education level of the person are significant factor that affect business. The literacy rate of women in India is found at low level compared to male population. Many women in developing nations lack the education needed to spur successful entrepreneurship. They are ignorant of new technologies or unskilled in their use, and often unable to do research and gain the necessary training (UNIDO, 1995b, p.1). Although great advances are being made in technology, many women's illiteracy, structural difficulties, and lack of access to technical training prevent the technology from being beneficial or even available to females ("Women Entrepreneurs in Poorest Countries," 2001). According to The Economist, this lack of knowledge and the continuing treatment of women as second-class citizens keep them in a pervasive cycle of poverty ("The Female Poverty Trap," 2001). The studies indicates that uneducated women don't have the knowledge of measurement and basic accounting.




How to Develop Women Entrepreneurs?

Right efforts on from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Following efforts can be taken into account for effective development of women entrepreneurs.

1. Consider women as specific target group for all developmental programmers.

2. Better educational facilities and schemes should be extended to women folk from government part.

3. Adequate training programme on management skills to be provided to women community.

4. Encourage women's participation in decision-making.

5. Vocational training to be extended to women community that enables them to understand the production process and production management.

6. Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops.

7. Training on professional competence and leadership skill to be extended to women entrepreneurs.

8. Training and counselling on a large scale of existing women entrepreneurs to remove psychological causes like lack of self-confidence and fear of success.

9. Counseling through the aid of committed NGOs, psychologists, managerial experts and technical personnel should be provided to existing and emerging women entrepreneurs.

10. Continuous monitoring and improvement of training programmers.

11. Activities in which women are trained should focus on their marketability and profitability.

12. Making provision of marketing and sales assistance from government part.

13. To encourage more passive women entrepreneurs the Women training programme should be organised that taught to recognize her own psychological needs and express them.

14. State finance corporations and financing institutions should permit by statute to extend purely trade related finance to women entrepreneurs.

15. Women's development corporations have to gain access to open-ended financing.

16. The financial institutions should provide more working capital assistance both for small scale venture and large scale ventures.

17. Making provision of micro credit system and enterprise credit system to the women entrepreneurs at local level.

18. Repeated gender sensitization programmers should be held to train financiers to treat women with dignity and respect as persons in their own right.

19. Infrastructure, in the form of industrial plots and sheds, to set up industries is to be provided by state run agencies.

20. Industrial estates could also provide marketing outlets for the display and sale of products made by women.

21. A Women Entrepreneur's Guidance Cell set up to handle the various problems of women entrepreneurs all over the state.

22. District Industries Centers and Single Window Agencies should make use of assisting women in their trade and business guidance.

23. Programmers for encouraging entrepreneurship among women are to be extended at local level.

24. Training in entrepreneurial attitudes should start at the high school level through well-designed courses, which build confidence through behavioral games.

25. More governmental schemes to motivate women entrepreneurs to engage in small scale and large-scale business ventures.

26. Involvement of Non Governmental Organizations in women entrepreneurial training programmes and counseling.

Conclusion - Entrepreneurship among women, no doubt improves the wealth of the nation in general and of the family in particular. Women today are more willing to take up activities that were once considered the preserve of men, and have proved that they are second to no one with respect to contribution to the growth of the economy. Women entrepreneurship must be moulded properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena.

PARTICIPATION OF WOMEN IN SSI SECTOR11.1

The participation of women in SSI sector has been identified in three different roles. Some women were owners of enterprises, some were managers of enterprises and some were employees. With regard to ownership, an SSI or a SSSBE managed by one or more women entrepreneurs in proprietary concerns, or in which she/ they individually or jointly have a share capital of not less than 51 % as partners/ share holders/ Directors of Private Limited Company/ Members of Co-operative Society is called a 'Woman enterprise'.

WOMEN ENTERPRISES AND SSI UNITS MANAGED BY WOMEN

11.2

The total number of women enterprises in the Total SSI Sector was estimated at 10,63,721 (10.11 %). The estimated number of enterprises actually managed by women was 9,95,141 (9.46 %). In the States of Mizoram, Orissa, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu and Pondicherry, the share of women employment was significantly higher (more than 20 %). The position of women entrepreneurships and women enterprises is given State-wise in the following table.

TABLE 61: PARTICIPATION OF WOMEN IN MANAGEMENT/OWNERSHIPIN SSI SECTOR, STATE-WISE

S. No. Name of State/ UTNo. of Enterprises

Managed By WomenNo. of Women

Enterprises

1. JAMMU & KASHMIR 5640 5742

2. HIMACHAL PRADESH 3515 3722

3. PUNJAB 30190 29068

4. CHANDIGARH 2059 2243

5. UTTARANCHAL 8706 8804

6. HARYANA 10087 9620

7. DELHI 13368 14383

8. RAJASTHAN 29785 36371

9. UTTAR PRADESH 54491 72667

10. BIHAR 38170 49443

11. SIKKIM 30 98

12. ARUNACHAL PRADESH 131 150

13. NAGALAND 207 179

14. MANIPUR 9168 10745

15. MIZORAM 3076 3700

16. TRIPURA 631 863

17. MEGHALAYA 3658 3580

18. ASSAM 11189 11757

19. WEST BENGAL 71847 69625

20. JHARKHAND 7271 7865

21. ORISSA 33274 38233

22. CHHATTISGARH 11766 10034

23. MADHYA PRADESH 62351 68823

24. GUJARAT 55361 53703

25. & 26 DAMAN & DIU & DADRA & NAGAR HAVELI 167 213

27. MAHARASHTRA 80662 100670

28. ANDHRA PRADESH 77347 77166

29. KARNATAKA 101264 103169

30. GOA 677 810

31. LAKSHADWEEP 61 67

32. KERALA 137561 139225

33. TAMIL NADU 130289 129808

34. PONDICHERRY 1089 1065

35. ANDAMAN & NICOBAR ISLANDS 53 110

All India 995141 1063721

11.3

About 13 % of the women enterprises were in the registered SSI sector and the remaining 87 % were in the unregistered SSI sector. With regard to the enterprises managed by women, 11.5 % were in the registered SSI sector and 88.5 % were in the unregistered SSI sector. The State/ UT - wise distributions of units managed by women and women enterprises in respect of registered and unregistered SSI sectors are given in Table R46 and Table UR16 in the Appendix.

11.4

The share of the units managed by women in terms employment was 7.14. The employment generated per Rs. one lakh investment in the units managed by women was 2.49. Principal Characteristics of SSI units managed by women are presented in the following table.

TABLE 62: PRINCIPAL CHARACTERISTICS OF SSI UNITS MANAGED BY WOMEN

For units managed by women

No. of units

Market Value of

fixed assets

Original Value of

plant & machinery

Employment Gross output Exports

Regd. SSI Sector 114362 33624570500 11047852474 349342 60316833602 3314822655

Percentage to total of the respective category

8.32 3.66 3.64 5.67 2.97 2.69

Unregd. SSI Sector 880780 37763317590 11496115541 1429962 37324824839 53802469


9.63 6.04 4.68 7.62 4.72 0.28

Total SSI Sector 995142 71387888090 22543968015 1779304 97641658441 3368625124


9.46 4.63 4.11 7.14 3.46 2.37

FEMALE EMPLOYMENT

11.5

The total number of female employees in the SSI sector is estimated at 33,17,496. About 57.62 % of the female employees were employed in the SSI units located in the States of Tamil Nadu, Kerala, Karntaka, West Bengal and Andhra Pradesh. The State-wise details are given in the following table.

TABLE 63: EMPLOYMENT OF FEMALES IN SSI SECTOR, STATE-WISE

S. No. Name of State/ UTNo. Of Female Employees

Regd. SSI sector Unregd. SSI sector Total

1. JAMMU & KASHMIR 3313 8153 11466

2. HIMACHAL PRADESH 4016 4134 8150

3. PUNJAB 11757 36013 47770

4. CHANDIGARH 659 1975 2634

5. UTTARANCHAL 2940 13240 16180

6. HARYANA 15651 14889 30540

7. DELHI 6306 35798 42104

8. RAJASTHAN 15003 46065 61068

9. UTTAR PRADESH 23506 180918 204424

10. BIHAR 8353 68908 77261

11. SIKKIM 212 9 221

12. ARUNACHAL PRADESH 342 104 446

13. NAGALAND 637 2574 3211

14. MANIPUR 3853 19485 23338

15. MIZORAM 2188 4636 6824

16. TRIPURA 4294 3325 7619

17. MEGHALAYA 3139 5664 8803

18. ASSAM 9077 16988 26065

19. WEST BENGAL 26549 304969 331518

20. JHARKHAND 5105 8907 14012

21. ORISSA 11723 213123 224846

22. CHHATTISGARH 10177 52476 62653

23. MADHYA PRADESH 29612 111703 141315

24. GUJARAT 41189 79990 121179

25. & 26 DAMAN & DIU & DADRA & NAGAR HAVELI 6106 126 6232

27. MAHARASHTRA 78731 162700 241431

28. ANDHRA PRADESH 60693 270026 330719

29. KARNATAKA 117934 223142 341076

30. GOA 5309 1833 7142

31. LAKSHADWEEP 26 405 431

32. KERALA 189640 224491 414131

33. TAMIL NADU 270936 223050 493986

34. PONDICHERRY 5613 2670 8283

35. ANDAMAN & NICOBAR ISLANDS 124 294 418

All India 974713 2342783 3317496

11.6

The proportion of female employees in the total employment in the SSI sector was of the order of 13.31 %. In the States of Mizoram, Orissa, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu and Pondicherry, the share of women employment was significantly higher (more than 20 %) compared to the total employment in the respective States.

TABLE 64

S. No. Name of State/ UTPercentage of Female

employment in the totalemployment of the State

1. JAMMU & KASHMIR 7.51

2. HIMACHAL PRADESH 6.26

3. PUNJAB 5.26

4. CHANDIGARH 5.46

5. UTTARANCHAL 8.28

6. HARYANA 5.52

7. DELHI 6.72

8. RAJASTHAN 7.04

9. UTTAR PRADESH 5.11

10. BIHAR 7.14

11. SIKKIM 16.72

12. ARUNACHAL PRADESH 12.10

13. NAGALAND 5.65

14. MANIPUR 17.06

15. MIZORAM 27.46

16. TRIPURA 13.38

17. MEGHALAYA 13.42

18. ASSAM 6.08

19. WEST BENGAL 15.28

20. JHARKHAND 5.08

21. ORISSA 24.36

22. CHHATTISGARH 11.78

23. MADHYA PRADESH 10.51

24. GUJARAT 9.57

25. & 26 DAMAN & DIU & DADRA & NAGAR HAVELI 14.83

27. MAHARASHTRA 11.77

28. ANDHRA PRADESH 15.46

29. KARNATAKA 20.81

30. GOA 24.37

31. LAKSHADWEEP 26.31

32. KERALA 37.15

33. TAMIL NADU 24.48

34. PONDICHERRY 23.52

35. ANDAMAN & NICOBAR ISLANDS 5.59

All India 13.31

Encouraging women entrepreneurs to increase their participation in the Indian economy India has traditionally been a patriarchal society with low participation of women in the economy. But the fact remains that women represent nearly 50 percent of the total population, and it is crucial to encourage women’s role in the economy at every level. At present women’s entrepreneurial role is limited in the large scale industries and technology based businesses. But even in small scale industries, the women’s participation is very low. As per the third all-India census of Small Scale Industries, only 10.11% of the micro and small enterprises were owned by women, and only 9.46% of them were managed by women. (1)

The following are three key strategies that can help to foster women entrepreneurship in India: (2)

Promoting women entrepreneurs in micro enterprises

An increasingly large number of women in India are engaged in the informal economy and operating in the small scale sector, cottage industries, and micro enterprises. With proper governmental and societal support, these women can create sustainable, organized and growth-oriented enterprises with a vision.

Institutional and policy based support

Government policies and regulations regarding business and industry can be formulated with the intent to encourage women entrepreneurs. The first part of the approach must be to review the existing regulatory framework, and make necessary modifications. The second part should be to take vital steps to reduce the administrative hurdles especially for women entrepreneurs. The third part must be to include easy and subsidized financing for women’s entrepreneurial projects.

Directing women entrepreneurs into high growth areas

Another key part of the strategy must be to facilitate the entry of women entrepreneurs into areas where high growth is expected. Special incentives, tax rebates, duty cuts and subsidized land and machinery can be provided to encourage women in emerging sectors. Special recognitions and award can be instituted for women participating in such targeted industries.

The government of India launched a scheme called “Trade Related Entrepreneurship Assistance and Development Scheme for Women” (TREAD) during the 11th five-year plan. This schemed envisioned economic empowerment of women through the development of their entrepreneurial skills in non-agricultural activities. (3)

Higher education incentives for women from rural regions, advanced training programs for development of management skills among women, and setting up of polytechnics and industrial institutes for women are the key

thrust areas to strengthen the women’s entrepreneurial talent through education and training. Counselling in entrepreneurship through women oriented NGO’s, cheap micro financing and bank support for new business projects launched by women entrepreneurs, and privileged infrastructural support such as priority land allotment and administrative approvals can also promote the cause of women entrepreneurs substantially. (4)

Private sector can also contribute in its own way to women’s entrepreneurial participation in the economy. A leading example is the setting up of TiE Stree Shakti (TSS) with support from a premier group of NRI investors and Indian entrepreneurs in 2009. This organization is reaching out to women who run micro, medium, and large-scale enterprises across manufacturing, services and social sectors. It is a pan-India endeavour to recognize, award, and empower women entrepreneurs from different backgrounds. (5)

A lot still remains to be done to improve the participation of Indian women entrepreneurs in the economy, with an aim to come at par with the women’s participative role in the developed economies of the west. In the 21st century India where nuclear families are becoming popular, the dividing line between the roles of men and women is blurring. Women are equally keen to become active participants in the economy. Therefore, the role of women cannot remain confined to jobs, but they must also engage in employment generation and bring out their entrepreneurial talent. The women’s family and the society have a key responsibility to support this shift in the women’s economic profile.

How many entrepreneurs are there in India?

200 millions.

How come?

Strangely that is a question that has not exercised many brains. I asked this question recently to a lot of people, and the answers I got ranged from well thought out answers like fifty thousand all the way to the adventurous one crore (10 millions). Lots of Googling, Binging and Yahooing later, I still did not have a fix on how many entrepreneurs there are in this vast country of ours.

So, this is an attempt to estimate that number. In the absence of any previous estimates, this is at best a wild guess. So, I will explain my derivation in detail. Any alternate views you have is more than welcome and will help fine tune my guess.

First a definition. Who is an entrepreneur? For the purposes of this estimate, we will define an entrepreneur as anyone who at any point in his or her life has started or owned a business. And an assumption. One entrepreneur can start more than one business and one business can be started by more than one entrepreneur coming together. For the sake of simplicity, we will assume that both of these negate each other out.

About the only official figure we have is the MSME (ministry for micro, small and medium enterprises) statement first made sometime in 2007 that there are 13 million registered msme's in the country.

My feel is that for every small and micro business that has registered with the government, there are atleast 15 that have not registered. These include businesses running in small villages, your local vegetable vendor, the local taxi business owner and so on. So the total number of small medium and micro entrepreneurs in the country would be (13 + 195), approximately 200 millions. (the rounding off is because of the approximations I am making)

That brings us to the big businesses. The registrar of companies could give numbers on the number of companies registered. Here, one large group typically register many companies for tax and other reasons. So, that number is not a good indicator in our case. So, I am going to make another guesstimate here. I am guessing that only 5% of all entrepreneurs own/run large businesses. That is 95% of all businesses are small medium or micro. Therefore, the number of large business entrepreneurs in the country is (200/95x 5) = 10 millions, slightly lower than the number of registered msme's.

http://msme.gov.in/

http://www.dare.co.in/blog-entries/ideas/how-many-entrepreneurs-are-there-in-india.htm

Adding up all these, my estimate of the total number of entrepreneurs in India is in the range of 2o0 millions. Out of a population of 1.2 billions, this is 18 % of the population. Not too bad, but not too good either. 25% would have been more like it, given that the bulk of the 18% are one man shows.

Download - Problems of Women Entrepreneurs in India

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