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Shodh, Samiksha aur Mulyankan (International Research Journal)—ISSN-0974-2832 Vol. II, Issue-9-10 (Oct.-Nov.

-2009)

13

Women Entrepreneurship In India
(Problems, Solutions & Future Prospects of Development)
Research Paper—Commerce & Management
Entrepreneurship Meaning:-The origin of the basic word “Entrepreneurship” is from a French word “Entreprendre”, where it cradled and originally meant to designate an organizer of certain musical or other entertainments. The Oxford English Dictionary (of 1897) defines the term “Entrepreneur” in similar way as the director or a manager of a public musical institution, one who gets-up entertainment arranged , especially musical performance. Initially in the early 16th century, it was applied to those who were engaged in military expeditions. In 17th century. It was extended to cover civil engineering activities such as construction and fortification. Since then, the term “Entrepreneur” is used in various ways and various views. These views are broadly classified into three groups namely:- • Risk-Bearer • Organizer • Innovator Thus, a person who assumes and bears all types of risks involved in an enterprise, who organizes the various inputs or factors of production and who innovates news ideas, concepts, strategies and methodology in business from time to time is known as Entrepreneur. Women Entrepreneurship:- When we speak about the term “Women Entrepreneurship” we mean, an act of business ownership and business creation that empowers women economically, increases their economic strength as well as position in society. Hence women-entrepreneurs have been making a considerable impact in all most all the segments of the economy which is more than 25% of all kinds of business. In India “Entrepreneurship” is very limited amongst women especially in the formal sector, which is less than 5% of all the business. Objectives/ Purpose of Study:- The main purpose or objective of study of women entrepreneurship is as follows: a) To exhibit the encouraging and discouraging factors in an enterprise. b) Identification and analysis of all the shortcomings encountered by women in setting and establishing an industrial enterprise. c) To provide solutions to the various problems faced by the women entrepreneur group. Methodology of Study:- For methodology an extensive literature review of secondary data from various sources has

* Dr. Sunil Deshpande **Ms. Sunita Sethi

been held as related to the stated objectives of the study as well as research study on internet survey basis. Women Entrepreneurship Role in Today’s Society :The emergence of entrepreneurs in a society depends to a great extent on economic, social, religious, cultural and psychological factors prevailing in the society. In many of the advanced countries of the world there is a phenomenal increase in the number of self-employed women after the world war. In U.S women own 25% of all business, even though there sales on an average are less than 2/5th of those of other small business groups. In Canada, 1/3rd of small business are owned by women and in France, it is 1/5th. In U.K., since 1980, the number of self-employed women has increased 3 times as fast as the number of self employed men. They have made their mark in business for the following reasons highlighted below:- 1) They want to assume new and fresh challenges and opportunities for self-fulfillment. 2) They want to prove their personalities in an innovative, daring and competitive jobs. 3) They want to undertake changes to control the balance between their families responsibly and business obligations. Women Entrepreneurs in India:- Two main stream of thoughts have influenced the promotion of women entrepreneurship in India by the government as well as by various other agencies. The first stream is employment centered. It has been argued that considering their weaker bargaining power in the market as well as society, women should be given higher priority in various entrepreneurial schemes. The second most stream of thought relates to the argument for autonomy of women. There are three broad stages for this- I. Conceptualization II. Analysis of internal aspects III. Analysis of external aspects An integrated view of these aspects are in the form of chart below:Entrepreneurial Background Labour Market

backward Linkages Woman's Industry Public Policy

Forward Linkages

* Asstt.Proff, Department of Commerce & Management, G.S. College, Jabalpur ** Asstt. Proff, Department of Commerce, M.G.M.M Jabalpur

000 women entrepreneurs during the 8th .5 % of the total population. The rough estimate showed that amongst the SSI entrepreneurs approx 9 % were women entrepreneurs. raising the number of women entrepreneurs to about 5. Finally moving on to next Figure 5. thus the role and involvement of women entrepreneurs in rural sector is tremendously enhancing. ship-building. Based on this assumption for getting 3.16 % in the year 2001 in the state of Kerala and when we notice all India level again a growing trend from 36.64 million entrepreneurs in India.-2009) 14 Internal Aspects:.60 lakh every year. during the aforesaid period. Samiksha aur Mulyankan (International Research Journal)—ISSN-0974-2832 Vol. To understand more specifically following figures are indicated ( taken from various internet sources) which indicate some facts and figure. As we can see further. it shows the amount of compensation given to men and women designated as Product Managers at the various enterprise at the global level.5 million adding 0. smelting. a majority were concentrated in low-paid.8 million in the 5 year period or 1. however is comparatively a recent phenomenon commencing from 70’s era onwards. during 1995-96. Work participation of Indian women is 22% as per 1991 census and triple in rural areas around 27% and in urban areas 9%. painting and glass making. In the era of L. alloying. So with the spread of more and more knowledge there is a general awareness been generated amongst people to encourage the policy of “Female-Literacy”.95. As it can be clearly noticed from the graph that the number of male participation per thousand count in population is significantly more globally than the female group. 5 year planning period .Out of the total 940. Globalization) the Indian women entrepreneurs are very fast entering the non-traditional sectors. The present rate of 30% success in EDP training was likely to go up-to 45% with growing experience and im- proved techniques of training and follow-up. who the entrepreneur and his workers are. agro-based industries.9% of the female population ) but as per the 1991 census only 185900 women accounting for only 4. handicrafts. refining.9-61.5% in administrative role /positions. As per the 2001 census report. It takes care of development policy in relation for up-liftment of women’s development and takes care for providing an economic secured environment for all women entrepreneur group.00. there are 22.48 million people in India. run by women and are having more than 80% women employees.G (Liberalization.-Nov. There are 126.4 % were totalemployed. On this. right from the year 1951-2001 and there is a rising trend from 7. Figure 4 indicates the level of literacy rates of females in overall India as well as in the state of Kerala. in the 1990’s female comprise of 437.93% in the initial year 1951 to 54.1% and similarly in the various sectors of the economy which can be seen from Figure 2. .4 million women workers were in the rural areas as against only 10% (86 million) in the urban areas. manufacture of organic and in-organic compounds. Issue-9-10 (Oct.2 % of total 2. forward and backward linkages as well as the government policies and regulations that play an important role in determining the position of these enterprises in the economic structure. Privatization. which indeed is in response to their grater awareness.2%) among the total population of self employed during 1981.through training and other developmental efforts. Their participation.48 million women work-force( representing 28. II. External Aspects:. Participation of women as industrial entrepreneurs. There were more than 2. second highest in service sector ranging from 59. low-skilled. Almost 79. Thus considering the trend women participation in another 5 years was more 20% more.Such group of factors are important for planning of women industry features.50. indicates the level of men and women participating in the field of entrepreneurship.10 million representing 46.5% of total self-employed persons in the country were recorded. however is increasing. Majority of them are engaged in the un-organized sector like agriculture . Position Status of Women Entrepreneurs:.86% in the year 2001.000. creative skills. 5 year planning period the number of SSI’s expected to rise from 1. Noticing the graph it clearly depicts that men are been paid more for their innovation.7 million to 2. metallic and lead battery industry etc.5 lakh women entrepreneurs it was necessary to train and support about 7. Only 2. Therefore one could aim at developing atleast 3. More important aspects are the background of the entrepreneur as well as the question.43% in the initial year 1951 to as high as 87. For example Figure 1.P. It is not functionally enough to state that it means all enterprises. Figure 3 indicates women participation in the various sectors of industries such as information sector. handloom and cottage based industries.78 lakh entrepreneurs. During the 8th.73% of women workers of the total working population including formal as well as informal sector. low-technology and low-productivity jobs in the rural and un-organized sector.Shodh. Also. the literacy levels increased ratio is also a significant factor of this positive trend in the field of entrepreneurship.The motion of women industry itself has to be defined and further sub-divided. Likewise when we see the participation of women at the various occupational positions we can notice that women have a higher percentage from 75-78. enterprising attitude as compared to women which clearly need to be analyzed and strictly needs to be looked upon.5 million women workers were in the organized sector and a small percentage of 12. starting from year 1996-97 till year 2007-08. ideation. This is almost double the percentage of women (5.680 women entrepreneurs claiming 11.

be it large or medium or small scale enterprise. on one hand and getting raw materials at minimum discount rates is the other.Secondly. Figure 2:- Figure 3:- Figure 4:- Female literacy rates in India and Kerala as well Total Compensation to men and women Problems Associated With Women Entrepreneurs :. Firstly. the banks also consider women less credit worthy and discourage women borrowers on the belief that they cannot repay back the amount of loans taken by them. Scarcity of raw materials required for productive capacities:. Samiksha aur Mulyankan (International Research Journal)—ISSN-0974-2832 Vol.Women entrepreneurs do not have a proper organizational set-up to pump in a lot of money for canvassing and advertisements. Usually women entrepreneurs face the problems of shortage of finance on two important grounds. II. On the top of this. Such a competition ultimately results in the liquidation of women entrepreneurs. Issue-9-10 (Oct. women do not generally have property on their own names to use that as collateral securities for obtaining loans/funds from banks and other financial institutions.Shodh.-2009) 15 Figure 1:- Figure 5:- Male/Female participation in the field of enterprise on a global level.-Nov. Thus their access to external sources is very limited . Over-all these problems can be summed up as under:Problem of Finances arrangement:. is the high prices of raw materials. Limited mobility factor in case of women entrepre- . Cut-throat competition with other group of men and established self-sufficient entrepreneurs:.while the other category of problems have a general or over-all affect on the enterprises owned by such group pf women entrepreneurs. The first category of problems affect women specifically in their smooth operations of enterprise .They have to even face the problems of scarcity of raw-materials and necessary inputs.Basically all women entrepreneurs almost suffer from two main category of problems. such problems can be designated as follows:.Finance is said to be the “life blood” of every business undertaking. Thus they have to face a stiff competition with the men entrepreneurs who easily involve in the promotion and development area and carry out easy marketing of their products with both the organized sector and their male counterparts.1) Specific Problems 2) General Problems.

Samiksha aur Mulyankan (International Research Journal)—ISSN-0974-2832 Vol. • Offering seed capital. Apart from the above discussed problems there may occur other series of serious problems faced by women entrepreneurs are improper infrastructural facilities. Support and approval of husbands seems to be necessary condition for women entry into business. A single women asking for room is still looked with suspicion. motivate and cooperate women entrepreneurs. i. women mobility in India is highly limited due to many factors/reasons. serves as a barrier to woman’s entry into business. II.e.e. practical experience and personality development programmes. Lack of self-confidence and optimistic attitude amongst women :. will-power. • Establishing various policies to offer easy finance schemes for economically strengthening the position of women. They are even less educated and economically not stable neither self-depended. Man plays a secondary role only. enhancing their capabilities. strong mental outlook. high cost of production. Illiteracy is the root cause of socio-economic barriers or hurdles. Women nowadays have low risk taking ability because of the number of questions put forward by the conservative society people.-Nov. ties as well as commitments:In India. in order to help the women in the field of industry. to improvise their over-all personality standards. All these factors reduce their ability to bear risks and uncertainties involved in a business unit. Such solutions or remedies can be well understood as under:-• There should be a continuous attempt to inspire. Solutions for solving the above discussed problems:On the basis of the above mentioned problems faced by women entrepreneurs and various other problems too. Thus lack of education creates problems before women to set up competitive enterprises. Lack of education and prevalent levels of illiteracy amongst women:. Thus they are under a social pressure which restrains them to prosper and achieve success in the field of entrepreneurship. 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. This in turn. risk-taking abilities. optimism etc. Thus all these psychological factors often obstructs their path of achieving success in the area of enterprise. Family responsibilities.Shodh.In India. encourage. Due to such limited scope of help and cooperation from family and other people. Issue-9-10 (Oct. women are looked upon as “abla” i. in a nutshell in a male dominated society. plans and strategies on the development of women in the field of industry. trade and commerce. Accordingly. Her total involvement in family leaves little or almost no time or energy to be diverted for the business activities.Also one of the dominant reason for their failure is the attitude of society people towards their modern business prospects and developing attitude. Thus women suffer from a number of problems . Cumbersome exercise involved in starting with an enterprise coupled with officials humiliating attitude towards women compels them to give up their spirit of surviving in enterprise altogether. • Attempts to bring about a society attitude change. which is the most important criteria of every business activity. But in practice. • Forming a cooperative association of women entrepreneurs to mobilize resources and pooling capital funds. women are not treated equal to men. • Attempts by various NGO’s and government organizations to spread information about policies. Absence of proper support and back-up for women by their own family members and the outside world people:. They always fear from committing mistakes while doing their piece of work. more over there is limited initiative of taking risk and bearing uncertainty in them. they drop the idea of excelling in the enterprise field. Lesser risk and uncertainty bearing attitude:Women in India lead a protected life. trade and commerce. there is a provision of a number of solution measures to overcome the aforesaid problems. • Attempts should be there to enhance the standards of education of women in general as well making effective provisions for their training. mainly a woman’s duty is to look after her children and manage the other members of the family. Due to lack of education and that to qualitative education. the educational level and family background of husbands also influences women participation in the field of enterprise. • Attempts to establish for them proper training institutes for enhancing their level of work-knowledge. women are not aware of business. attitude of people of society towards the women modern business outlook. The constitution of India speaks about the equality between both the sexes. weak in all respects. Also lack of education causes low achievement motivation amongst women. Incase of married women she has to strike a fine balance between her business and family. up-liftment schemes.Unlike men. Old and outdated social outlook to stop women from entering in the field of entrepreneurship:. low needs of achievement and socio-economic constraints often puts women behind in the field of enterprise. technology and market knowledge.Today all the women are suffering from one major problem of lack of self-confidence.Male chauvinism is still prevalent in many parts of the country yet.-2009) 16 neurs:. men and women. Domination by male and ideology of male dominated society:. around 3/5th (60%) of women are still illiterate. generation of awareness and consciousness on the policy of self-development of women entrepreneurs. women entrepreneurs .Many a times their own family members are not supporting and cooperating as well as having encouraging attitude to dare to enter into the entrepreneurship field. skills.

Dhameja Abhishek Publications Chandigarh-17 (India) 5.K. This is a good indicator as if the aforesaid condition prevails through a long period of time the number of women entrepreneurs will just double and even in certain sectors of economy it may triple in the coming 5-7 years. then very soon we can pre-estimate our chances of out beating our own conservative and rigid thought process which is the biggest barrier in our country’s development process. Chand & Company Limited . S. grievances. reputation. . The Government wants this trend to continue. 4. Electronic edition by Schultz Grafisk A/S. Himalaya Publishing House. II. however.-Nov. These initiatives are to be further adjusted to appeal to women entrepreneurs. budgeting. New Delhi-110055). Therefore the Government’s industrial policy strategy .-2009) 17 fund etc. Internet related search topics. morale. issues. support and cooperation by society members. Women Entrepreneurship and Economic Development – By Sanjay Tiwari. Samiksha aur Mulyankan (International Research Journal)—ISSN-0974-2832 Vol. we can notice that the percentage or ratio of women entrepreneurs is growing tremendously. liquidity. especially to small loans. New types of enterprises are created. We can promise ourselves and make a sincere commitment of contributing to the field of women entrepreneurship at individual level which un-doubtedly bring drastic positive change in growth and development of women entrepreneurship at country and even at a global level. 3. emphasizing on educating women strata of population. women want competent counseling in various fields: such as namely: financing. and filing complaints against constraints or shortcomings towards the economic progress path of women entrepreneurs and giving suitable decisions in the favour of women entrepreneurs and taking strict stand against the policies or strategies that obstruct the path of economic development of such group of women entrepreneurs.If we see the present business and entrepreneurship trend throughout the world. diverted conservative mindset of society to modern one. The occupational structure and the enterprises are undergoing a drastic change. Entrepreneurial culture is undergoing a positive development. All this is providing immense confidence in the women entrepreneurs and enabling them to exercise their skills. changes and relaxations in government policies. that they themselves must also be better at selling their idea. S. Thus. Women entrepreneurs also want more appreciation of their idea on the part of the banks. regional contact points and entrepreneur networks as well as more ready access to financing. This is mainly because of attitude change. IT and the Internet revolutionize the very method of doing business. Entrepreneurship Development –By S. uncertainty bearing attitude while working in an enterprise.By Dr. Many say.Danish Agency for Trade and Industry October 2000. • To establish all India forum to discuss the problems. qualifications and management. The emergence as well as development of women entrepreneurs is quite visible in India and their over-all contribution to Indian economy is also very significant. For example in Denmark. spreading awareness and consciousness amongst women to outshine in the enterprise field.S Khanka. and goodwill in the field of industry. Several of the initiatives are especially useful for women entrepreneurs’ improvement of the entrepreneurial culture. making them realize their strengths. Thus by adopting the following aforesaid measures in letter and spirit the problems associated with women can be solved. trade and commerce. • To extend confessional rates facilities and schemes for women entrepreneurs to prosper in the field of enterprise. Still efforts are being made to coordinate with the enterprise activities of women and providing them utmost financial. financial status. daring and risk-taking abilities of women. D. Conclusion :. and important position in the society and the great contribution they can make for their industry as well as the entire economy. Future Prospects of Development of Women Entrepreneurs:.D.Shodh. Issue-9-10 (Oct. granting various up-liftment schemes to women entrepreneurs etc. Above all. efforts are being taken at the economy as well as global level to enhance woman’s involvement in the enterprise sector. especially the women group of entrepreneurs. To inspire confidence and to “sell one’s idea” is the policy nowadays being adopted by women entrepreneurs. Dynamics of entrepreneurial development and management – By Vasant Desai. If every citizen works with such an attitude towards respecting the important position occupied by women in society and understanding their vital role in the modern business field too. Publisher : Sarup and Sons 2. More-over with increasing government and non-government and other financial institutions assistance for various women entrepreneurs within the economy there can be significant increase brought about in the growth of women entrepreneurship process. what else is required is to continue with the above changed trend. risk taking abilities. Sharma & Dr. Anshuja Tiwari. For this many NGO’s should also come forward to extend their support services in the form of pooling financial resources for helping them and spreading education amongst various category of people of the society to encourage woman’s in their families to represent themselves in the entrepreneurship sector and earn a good name. etc. (Ram Nagar. psychological support by various institutions working within the economy and world-wide.It can be said that today we are in a better position wherein women participation in the field of entrepreneurship is increasing at a considerable rate.dk 21 contains a series of political initiatives to foster the entrepreneurial culture and to improve the framework of provisions for all entrepreneurs. and there are new requirements as regards the organization of work. Indian Entrepreneurship (Theory and Practice). to encourage them economically. R E F E R E N C E 1.