Professional Documents
Culture Documents
Problems Faced by Women Entrepreneurs in Tamilnadu
Problems Faced by Women Entrepreneurs in Tamilnadu
TAMILNADU:
INTRODUCTION:
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 sizable employment for others and setting
the trend for other women entrepreneurs in the organized sector.
While women entrepreneurs have demonstrated their potential, the fact remains
that they are capable of contributing much more than what they already are. In order to
harness their potential and for their continued growth and development, it is necessary to
formulate appropriate strategies for stimulating, supporting and sustaining their efforts in
this direction. Such a strategy needs to be in congruence with field realities, and should
especially take cognizance of the problems women entrepreneurs face within the current
system.
The present study report is an effort in this direction. An attempt has been made to
document available information regarding the status of women entrepreneurs, against the
backdrop of the socioeconomic context and the attendant challenges they face.
The project has been sponsored by the International Labour Organization. Mr.
Gerry Finnegan, Senior Specialist on Small Enterprises and Management Development,
ILO-SAAT, took a deep interest in this study and provided his guidance throughout.
The completion of this project is the result of the well-matched professional
commitment of Ms. Poonam Krishnan who showed her excellent competence in putting
stray thoughts together, more meaningfully and effectively. Ms. Archana Mathur, Dr.
Padma Iyer and Dr. C. Rain extended their help in data collection and analysis. The hard
work of Kamlesh Padmanathan coupled with her consistent optimism despite all odds,
enabled us to put together this document in a presentable format.
The team looks beyond the present study, hoping to get greater satisfaction, once
this work has the tangible consequence of helping towards the larger goal of assisting
women entrepreneurs in the small scale sector, in setting up and managing their ventures
within a more conducive and supportive socioeconomic environment.
1. The greatest deterrent to women entrepreneurs is that they are women. Indian society is
patriarchal and Indian women are traditionally considered to be homemakers and not
'businesswomen.'
2. The financial institutions are skeptical about the entrepreneurial abilities of women.
Banks and other financial institutions are reluctant to lend money to women
entrepreneurs and they stipulate many conditions before they lend money to them.
3. Consequently women entrepreneurs are handicapped by inadequate financial resources
and working capital.
4. Another argument against them is that they have low-level management skills.
5. Women are less mobile than men. The confidence to travel day and night and to
different regions and states is lacking in women when compared to male entrepreneurs.
6. The overall literacy rate of women in India is low when compared to the literacy rate
of the Indian male population.
7. Low-level education results in low-level self-confidence and self-reliance of the
women folk to engage in business activities.
8. They lack encouragement and motivation from others. Men infact discourage them and
are jealous of their success in business.
9. Finally high production cost of some business operations adversely affects the
development of women entrepreneurs.
10. Most importantly their domestic duties are always a hindrance to their success in
business enterprises.
PREFACE:
This report is part of the regional Asia project for the promotion of
entrepreneurship among women in small and cottage industries (RAS/92/M12/SWC).
The Project was funded by the Swedish International Development Cooperation Agency
(Sida) and executed by the South Asia Multidisciplinary Advisory Team of the
International Labour Organization, ILO-SAAT, in close cooperation with the ILO Area
Office in New Delhi.
One of the key activities undertaken under this project has been to commission
country studies to assess the status-barriers and constraints, as well as opportunities and
support mechanisms of women's entrepreneurship in the five participating countries, viz.
India, Nepal, Philippines, Sri Lanka and Thailand. The present study on India prepared by
Dr. S.P. Mishra, is the third in the series of studies published by ILO-SAAT. Mr. Gerry
Finnegan, Senior Small Enterprise and Management Development Specialist provided the
overall coordination and technical guidance to the study and Vandana Verma, Research
Officer, contributed the technical inputs.
The study brings together an extensive amount of information on various
entrepreneurship and women's development programmes introduced in India. There is an
assessment of the current position of women entrepreneurs, as well as of the existing
support programmes such as credit, training and marketing support, for women to
establish their own enterprises. The study looks at the sociocultural, educational and legal
barriers to women's entrepreneurship in India. It also includes profiles of most of the key
agencies involved in promoting women's entrepreneurship and recommendations for
policy-makers aimed at enhancing the economic empowerment of women tl-troughout
the country.
Women entrepreneurs face a series of problems right from the beginning till the
the enterprise functions. Besides the above basic problems the other problems faced by
women entrepreneurs are as follows:
1. Family ties:
2. Male dominated society:
3. Lack of education:
4. Social barriers:
5. Shortage of raw materials:
6. Problem of finance:
7. Tough competition:
8. High cost of production:
9. Low risk-bearing capacity:
10 Limited mobility:
11. Lack of entrepreneurial aptitude:
12. Limited managerial ability:
13. Legal formalities:
14. Exploitation by middle men:
15. Lack of self confidence:
Womens entrepreneurship, and partly to provide role models for potential women
entrepreneurs particularly for young women entering the labour market for the first time.
As the problems of running a small enterprise can be very different from those
encountered or inhibit the growth of women's enterprises in India. Once available, this
information should prove to be most useful for Government, donor organizations, and
indeed for the women entrepreneurs themselves.
Women entrepreneurs face a series of problems right from the beginning till the
the enterprise functions. Being a woman itself poses various problems to a woman
entrepreneur, The problems of Indian women pertains to her responsibility towards
family, society and lion work.
The tradition, customs, socio cultural values, ethics, motherhood subordinates to
ling husband and men, physically weak, hard work areas, feeling of insecurity, cannot be
tough etc are some peculiar problems that the Indian women are coming across while
they jump into entrepreneurship.
Women in rural areas have to suffer still further. They face tough resistance from
men. They are considered as helpers. The attitude of society towards her and constraints
in which she has to live and work are not very conducive.
Besides the above basic problems the other problems faced by women
entrepreneurs are as follows:
1. Family ties:
Women 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.
2. 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.
3. 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
Therefore, less and limited managerial ability of women has become a problem for them
to run the enterprise successfully.
13. 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.
14. 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.
15. 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.