CHAPTER – I

INTRODUCTION AND DESIGN OF THE STUDY

ENTREPRENEURIAL DEVELOPMENT

“Around three million graduate pass out of over 300 Universities in our country. All
this graduates look for Government jobs. It may be impossible to find jobs for all graduates in
Government are in Government undertakings. All this Graduates have to provide with
entrepreneurial orientation. They have to be groomed in to entrepreneurs who will generate
sustainable employment others and create wealth for the nation’’

-A.P.J.ABDULKALAM

1.1 INTRODUCTION

Women entrepreneurship is the process where women take the lead and organize a
business or industry and provide employment opportunities to others. Though women
entrepreneurship is a recent phenomenon in India which came into prominence in the late 1970s,
now one could see that more women are venturing as entrepreneur in all kinds of business and
economic activities and service sector. Though at the initial stage women entrepreneurship
developed only in urban areas, at a later stage it extended its wings to rural and semi-urban areas
too.

Through earlier women concentrated much on traditional activities, due to the spread
of education, favorable government policies towards development of women entrepreneurship,
women have changed their attitudes and diverted towards non-traditional activities too. They
slow favorable response to changing situations and get adjusted to themselves and have
improved their position.

The Government and Non-government organization are giving more prominence to

promote self-employment among women and build women entrepreneurship. Special finance
assistance is provided and training programs are organized for women to start their venture.

The economic reform agenda in the global perspective is dominating the socio
economic cultural in recent year. The process of economic reforms, more commonly referred as
“Globalization”, is affecting practically each country in the world in some way or the order,
although all the countries have not embraced the process very willingly. With increasing
importance on accountability under the process of economic reforms, situation has started
changing. Participating approach is gaining higher acceptance. Their role in the success of
development programs are being accepted more widely.

The special role of women in economic effort has not yet been clearly defined but the
need for “Integration of women into development” is being particularly felt but women
themselves. With the increase in the number of women getting educated, there is considerable
awareness among women to be self-employed and gradually the role of women is changing in
the society. Women make the second largest target group for identification of potential
entrepreneurs being slightly less than 50% of the total population. The Challenges and
opportunities provided to the women of digital era are growing rapidly that the job seekers are
turning into job creators.

Women entrepreneurs in India

The government of India has defined women entrepreneurs based on women

participation in equity and employment of a business enterprise. Accordingly, a women
entrepreneur is defined 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 the employment generated in
the enterprise to a women.

Women in Business

Women form a major segment in the business sector. They are often considered to be
the best managers due to among other factors. Their understanding nature and the fact that they
often given a motherly ear to employees` grievances. The business world has benefited
immensely from the contribution made by many well-known business women. If the current
world where women are just as competent and confident as men, and where women have risen to
influential positions, the business world has not been left behind “Women in Business” will
explore to extent to which the female gender has influence business in the world.

Status of Women entrepreneurs

Status of women has been changing since 21st century as a result of growing
Industrialization & Urbanization. More and more women are going for higher education,
technical and professional education. Women have shifted from kitchen handicrafts to non-
traditional higher level of activities. Financial institutions like banks have also set up special
cells to assist women entrepreneurs.

The past three decades have witnessed a steadily increasing awareness of the need to
empower women through measures to increase social, economic and political equity, and border
access to fundamental human rights, improvements in nutrition, basic health and education.
Allowing with awareness of the subordinate status of women has come to the concept of gender
as an overarching socio-culture variable, seen in relation to other factors, such as race, class, age
and ethnicity. Gender is not synonymous with women, nor it a zero-sum game implying loss for
men rather, it refers to both women and men, and to their status relative to each other. Gender
equality to refers that stage of human social development at which “the rights, responsibilities
and opportunities of individuals will not be determined by the fact of being born male or
female”. In other words, it is a stage when both men and women realize their full potential.

In recognition of the importance of establishing gender equality around the world, the
United Nation Development Fund for Women (UNIFEM) was established as a separate fund
with in the United Nation Development Program (UNDP) in 1984. At that time, the General
Assembly instructed it to “Ensure Women involvement with mainstream activities”.

Empowerment is a multidimensional process, which should enable the individuals or a

group of individuals to realize their full identity and power in all spheres of life. It consists of
greater ability to plan their lives, or have greater control over the circumstances that influence
their lives and free from the shackles imposed on them by custom, belief and practice. “The
status of women is a barometer of the democratize of any, an indicator of how human rights are
respected in it”.

Women’s contribution to National Economy

Women entrepreneurs are a significant part of the global expedition for sustained
economic development and social progress .Due to the growing industrialization urbanization,
social legislation and along with the spread of higher education and awareness, the emergence of
women owned businesses are highly increasing in economies of almost all countries.

Women’s contribution to the economy is particularly topical as the world digs its way
out of the global financial crisis, because it is vital if we are to consolidate economic recovery.
Many large global companies are also committing themselves to employing and enhancing the
careers of more women.

Women do make a vital contribution to the global economy, and international women’s
day is an important opportunity to raise awareness of this and how the female economy is the
key to a sustainable future.

Present Scenario of Women Entrepreneurs

Women entrepreneurs have completely changed the face of business internationally. It

has been observed that one-third of the businesses in the world are managed by women. Women
entrepreneurs hold a dignified position in many countries like USA, Holland, Sweden etc.
However, in India women comprised of only 16.5% of the total work force which is considered
to be too low according to the Census.

Today women are entering in many industries like fabrics, engineering, plastics,
garment industry etc. Due to emergence of women in the field of entrepreneurship, there has
been a considerable growth of an Indian economy has been changed by the women
entrepreneurs, as the amount of employment and revenue has increased to the great extent.

Growth of Women Entrepreneurs

Last five Decades have seen Phenomenal changes in the status and work place
diversity of women in India. Women Entrepreneurs dominating 50s fall into two Categories. One
set took to creating and managing an Entrepreneurs activity where there was no income
generating male. The second set took enormous courage to break through the social maps and
coding to take charges of the business the husband had left or else her family would be the losers.

In Sixties women took small steps to start small one women enterprises at home and
from home for self Occupation and Engagement.

The Women in Seventies opened by new frontiers and developed not only aspirants but
Ambitions for self employment generation. These women wanted home, marriage, children as
well as occupation. They accepted the share of the work and responsibilities for success and
growth of their enterprises.

The women in Nineties were capable, competent, confident and as service. They were
fearless, and have learnt to live alone, travel alone, and rear children alone when failure in
marriage and life partnerships occurs. In most of the cases they more out shone and out
performed their male counterparts.

21st Century is the century of Telecom, IT, and Financial Institutions. Women`s
enterprise in all these enterprise in all these industries has made them emerge as a force to reckon
with many of these industries has made them emerge as a force are headed and guided by women
as pioneers and mavericks. They have ventured to build enterprises, to discover their relevance
and meaning of life in themselves. But still in relation to the women population. The trend has
not been speculator.

The present rate of EDP 30% success of EDP training was likely to go up to 45%
with growing experience and improved techniques of training and follow up. The women were to
be given training in self employment/Entrepreneurs of shorter duration as well as some training
in trade and skill areas.

In India women entry into business is a new phenomenon women entry into business
or say entrepreneurship is traced out as an Extension of their kitchen activities mainly to 3Ps viz,
Pickles, Powder, and Pappad. Women in India plunged in to business for both pull and push
factors. Pull factors imply the factors which encourage women to start an occupation or venture
with an urge to do something independently. Push factors refer to those factors which compel
women to take up their own business to tide their economic difficulties and responsibilities with
growing awareness about business and spread of education among women over the period,
women have started shifting from 3Ps to engross to 3 modern Es, Viz., Engineering Electronics
and Energy. They have excelled in these activities. Women Entrepreneurs manufacturing solar
cookers in small foundries in Maharashtra and TV capacitors in Orissa have proved beyond
doubt that given opportunities, they can excel their male counterparts. Smt.Sumathi Morarji
(Shipping Corporation), Smt.Yamutai Kirloskar (Mahila Udyog Limited), Smt.Neena Malhotra
(Exports) and Smt.Shahnaz Hussain (Beauty Clinic) are some exemplary names of and
accomplished women Entrepreneurs in our Country.

In India, Kerala is a state with highest literacy (including women literacy) reflecting
a congenial atmosphere for the emergence and development of women Entrepreneurship in the
state. According to a study, the number of women`s industrial unit in Kerala was 358 in 1981
which rose to 782 in March 1984. These 782 Units included 592 proprietary concerns 43
partnership firms, 42 charitable institutions, 03 Joint stock companies and 102 Co-operative
societies covering a wide range of activities. On the whole world proper education of women
Kerala resulted in high motivation among them to enter into business. The financial marketing
and training assistance provided by the state Government also helped motivated women to
assume Entrepreneurial career. Women’s desire to work at the place of residence, difficulty of
getting jobs in the public and private sectors and the desire social recognition also motivated
women in Kerala for Self-Employment. Like Kerala, an increasing number of women is entering
the business in the state of Maharashtra.

Rural Development and Women Entrepreneurship

It has been constant endeavor of the ‘Planners’ to give adequate thrust to Rural
Development as the sector is directly related to agriculture-still the mainstay for majority of
India’s population. It has been realized that to emerges as a strong and modern nation and secure
its rightful place in the community of nations, sustainable development in rural areas is an
essential prerequisite. Rural Development gained momentum in the Ninth (1997-2001) and Tenth
(2002-2007) five year plans. In order to correct the development imbalances and accord due
priority in rural areas, the Rural Development Ministry is implementing a number of programs
aimed at sustainable development of rural areas with a focus on weaker and vulnerable sections,
mainly women.

There has been a paradigm shift in the policy of rural development. The rural poor are
now being treated as resource, whose idea and experiences from an integral part of the
development strategy. To bridge the rural-urban divide, the allocation of fund for rural
development programs has been hiked to Rs.76,774 crores for the Tenth Plan against Rs.42,874
crores during the Ninth Plan. There has been greater emphasis on giving greater participation to
people in development process through Panchayat Raj Institutions and Self Help Groups.
1.2 STATEMENT OF THE PROBLEM

In spite of the outstanding performance, women entrepreneurs are not free from the
problems while achieve their goal in the dynamic business environment. The basic problem of a
women entrepreneur is that she women, this pertains to her responsibility towards family, society
and work. Therefore averages women hesitate assume the role of an entrepreneur on account of:

Role conflict in many entrepreneurs prevents them from taking prompt decisions in
business. Despite modernization traditional family responsibilities slow down the movement of
women. The biggest problem of women entrepreneurs is the social attitude and the constraints in
which she have to live and work. In a dominated society a women hardly gets equal treatment
and male ego puts barrier in their progress.

It is assumed that women have relatively low ability to bear economic risk and market
uncertainties. Due to lack of proper education, majority of women are unaware of technological
developments, marketing knowledge, lack of information and experience creates further
problems in the setting up and running of business enterprise. A major hurdle for women is the
initiation into independent professional work.

In this context, this study is an attempt to find out answer to find out answer to the
following question.

1. What are the factors that influence women to become Entrepreneur?

2. What are the problems faced by the Women Entrepreneurs?
3. To what extent Women Entrepreneurs are satisfied?

1.3 REVIEW OF LITERATURE

Ehigie,(2000)1 Womens are increasingly getting involved in business and contributing

financially to household requirements, in addition to their traditional roles as housewives. The
1
Ehigie(2000); Journal of International women’s studies, volume 5, issue 1, Nov-2003.
extent to which wives are able to cope with these multiple role demands is likely to be significant
factor in their personal adjustment.

A.S.Shiralashetti and S.S.Hugar (2007)2 analyses the ‘Problems and Prospects of Women
Entrepreneurs’ and offer useful suggestions to overcome these inherent problems. The Problems
identified were, lack of sufficient information on production and distribution, lack of training
facilities in their respective areas, the problem of playing too many roles which lead to work
family conflict and dominance from the male member of the family.

(OECD, 1998)3, Female owned firms are considered as one of the “Emerging trends in
Entrepreneurship” and the raising of the visibility and awareness about the economic and social
role of women Entrepreneurs is emphasized in order to encourage female Entrepreneurs.

According to Nina MC Lemore, (2009)4 Chair of the Center for women`s business
research and president of Regent Capital, “The new generation of women Entrepreneurs appears
to be narrowing the business started within the past decade, there is no significant gender
difference in the share of firms with in more revenues. Women-owned businesses establishes in
the last decade are making significant economic contributions, at the same overall level as their
predecessors”

Beena and Sushma (2003)5 conducted a study on ‘women Entrepreneurs managing petty
business: A Study from the motivational perspective’. The study reveals that the reasons for
starting their enterprises are monetary returns and need to support family.

2
Shiralashetti A.S and S.S.Hungar (2007) “problems and prospects of women entrepreneurs; A case study”,
the ICFAI journal of entrepreneurship development, volume IV No.2, pp(48-53).

3
“ European research studies” 2005, Volume VII, issue (3-4).

4
Nina MC Lemore, center for women’s business Research, National Association of women business
owners, orange country chapter p.o Box 174, Tustin CA 92781, 2000.

5
C.Beena and Sushma B (2003), “Women entrepreneurs managing petty business – A study from the
motivational perspectives”, Southern economics, volume 42, No. 2, May 15, pp. 5-8.
 Krishnaveni Motha (2004)6 in a study on women Entrepreneurship in rural areas of India
also observed that the majority of women entered the Entrepreneurial field to supplement family
Income and due to other reasons such as economic necessity, non-availability of government jobs
etc.

Seenivasagalu (2001)7 conducted a comparative study on “Women Entrepreneurs and

Executives” in Chennai city. It is revealed that women Entrepreneurs are mainly motivated by
“Education and previous Experience”. It is recommended that promotion of women
Entrepreneurship is a better solution for Unemployment and involvement of women in economic
activities.

Anil kumar (2004)8 made a study about enterprise location: Choice of women
Entrepreneurs in Haryana state, India. It was found that most of the women Entrepreneurs
wanted to operate their businesses ‘near the homes’ followed by ‘near the market’

Anjaneya Swamy and Deepak Raajan (2003)9 in their working paper on women
Entrepreneurs point out that a multi-pronged approach needs to be adopted to motivate the
pursue entrepreneurial activities.

H.Subramanyam (2011)10 compares women Education in India at present and past. Author
highlighted that there has a good progress in overall Enrolment of girl students in schools. The

6
Krishnaveni Motha, “Women entrepreneurship in Rural areas in India”, SEDME, volume 31, No.2, pp 8-32,
sep., 2004.

7
R.Seenivasagalu, “Women entrepreneurs and executives – A comparative study”, Ph.D Thesis, Madras
university, Madras, March 2001.

8
Anil kumar “Enterprise location: choice of women entrepreneurs”, SEDME, volume no.31, issue no.3, pp.
8-32, Sep.2004.

9
G.Anjaneya swamy and Deepak Rajan, “Women entrepreneurship – need for a fresh look”, Indian
economic panorama, volume 13, issue no.3, pp. 34-36, October, 2003.
term empower means to give Lawful power or Authority to act. It is the Process of acquiring
some activities of Women.

On the basis of the review of these studies, it can be deducted that women entrepreneurs
are playing a very significant role in the development of a country, but at the same time, they are
facing disparate problems which are detrimental to the development of women entrepreneurship.
Thus, there is need for more specific studies on women entrepreneurship. Thus, there is need for
more specific on women entrepreneurship using structured questionnaires and appropriate tools,
so that the various aspect of women entrepreneurship could be understood in the larger context.
This can then become the basis of designing interventions to address this problem.

1.4 SCOPE OF THE STUDY

This study is confined to Gobichettipalayam Taluk, Erode District. This study is an

attempt to analyze the factors influencing the women entrepreneurs, Satisfaction and problems
faced by the respondents.

1.5 OBJECTIVES OF THE STUDY

1. To analyze the factors that influence women to become Entreprenuers.

2. To highlight the problems faced by women entrepreneurs.

3. To examine the Level of satisfactions of women entrepreneurs.

4. To provide solutions to the various problems faced by the women entrepreneurs.

1.6 HYPOTHESES

On the basis of knowledge gaining pilot study and the review of various relevant studies,
the present study aim to test the following null hypotheses formed.

Ho1: There is no significant association between socio economic characteristics (age,

educational qualifications, nature of the family, nature of the enterprise, annual income,
expenditure) of the sample respondents and level of satisfaction of women entrepreneurs.

10
IOSR journal oif business and management “A study on issue and challenges of women empowerment in
India” volume 17, issue no.4, pp. 13-19, April, 2005.
 The statistical significant of these hypotheses have been tested with the help of Chi-
Square test, 5% level of significance and co-efficient of contingency.

1.7 METHODOLOGY

This study is empirical research based on the convenient sampling method. The present
study is confined to Gobichettipalayam town. The convenient sampling technique is adopted to
select the sample respondents. In the present study 50 sample respondents are considered. The
sample respondents are interviewed personally with the help of well designed and pretested
schedule. Both primary and secondary data are used in the present study. The primary data have
been collected through survey method, by direct personal interview with the sample respondents.
Required secondary data were collected from various journals, books and web sites.

1.8 SAMPLING DESIGN

Universe of the present study is infinite. Hence, it is decided to use convenient sampling
method. Originally it was planned and collected data from 75 sample respondents. Due to
completion and contradictory information it was possible to have only 50 sample respondents as
final sample size. The sample chosen consists of 50 sample respondents representing women
entrepreneurs.

1.9 OPERATIONAL DEFINITION OF THE CONCEPTS

1.9.1 ENTREPRENUER

The terms entrepreneur denotes an innovator, a risk taker, a resource assembler, an

organizational builder and so on. Truly speaking, an entrepreneur is all combined into one. He
introduced new ideas, carriers on new activities, co-ordinates the factor of production and
decides how business shall run. He has vision, originally of thought and ability to take calculated
risk.

1.9.2 INNOVATIVE ENTREPRENUERS

An innovative entrepreneur is one who introduces new goods, inaugurates new method of
production, discover new markets and reorganize the enterprise. It is important to note that such
entrepreneurs can work only when a certain level of development is already achieved, and people
look forward to change the improvement.

1.9.3 IMITATIVE ENTREPRENUERS

These are characterized by reading to adopt successful innovating entrepreneurs.

Imitative entrepreneurs do not innovative the changes themselves, they only imitate technique
and technology innovative by other. Such type of entrepreneur are practically suitable for the
under developed regions.

1.9.4 FABIAN ENTREPRENUER

Fabian entrepreneurs are characterized by very great caution and skepticism in

experimenting any changes in their enterprises. They imitate only when it becomes perfectly
clear that failure to do so would result in a loss of the relative position in the enterprise.

1.9.5 DRONE ENTREPRENEURS

These are characterized by a refusal to adopt opportunities to make change in production

formulae even at the cost of severely returns relatively to other like producers. Such
entrepreneurs may even suffer from losses but they are not change in their existing production
methods.

1.9.6 NATURAL ENTREPRENUERS

Those who take business as profession on their own either by self planning or motivated
through money factor and also for keeping themselves busy.

1.9.7 GENERATED ENTREPRENUERS

Those who have been encouraged and training through specialized training programmes
such as the EDP to set up independent business.

1.9.8 FORCED ENTREPRENUERS

 Those who are compelled by circumstances such as death of father or husband with
responsibilities falling on them to take over the existing business.

1.9.9 BENAMI ENTREPRENUERS

Those who are acting as a faced for business of their husband or brothers.

1.10 PILOT STUDY

The pilot study is conducted during the year November 2017. On the basis of the pilot
study the design is modified and hypotheses are formulated.

1.11 PERIOD OF STUDY

The period of the study for the primary data collected through a survey made on women
entrepreneurs is related to the year. Sample respondents are interviewed during the month of
November 2017 to February 2018.

1.12AREA OF THE STUDY

The area of the study is confined to Erode District, Gobichettipalayam Taluk.

1.13 COLLECTION OF DATA

The present study is carried out by adopting the formal interview technique. Both primary
and secondary data are used. The present study is largely based on the primary data. Because, the
information relating to the study is extremely scant. Required primary data are collected in the
course of interview with the women entrepreneurs through survey method collected data are
tabulated to make it suitable for further statistical analysis.

The secondary data collected from the publications of various news papers, journals,
Books and websites. Personal observations are also made while filing the interview schedule.

1.14 ANALYSIS OF DATA

The data collected from the primary source are analyzed with reference to each of the
objectives with various statistical tools.
 The influence of various personal, socio-economic variables in the satisfaction level of
the sample respondents are analyzed with the help of chi-square has been used for analysis. For
which the following formula has been used.

∑ (O-E) 2
χ² =
Nj

Where

O = Observed frequency

E = Expected frequency

To rank the factors influencing and problems faced by the sample respondents Garrett’s
ranking technique is used. For which the following formula has been used.

Garrett’s formula:

100 (Rij-0.5)
Percent position =
Nj

Where,

Rij= Rank given the ith factors by the jth respondents

Nj= Number of factors ranked by the jth respondents

1.15 LIMITATION OF THE STUDY:

Even though an elaborate analysis is made in the study, the study is not free from
limitation. The following are the limitations.

1. This study is restricted only due to, so the result may not be applicable to other
areas.
 2. This study is based on the prevailing of women entrepreneurs.

3. The population of the study is huge; the researcher has taken only 50 respondents.

1.16 CHAPTER SCHEME:

Chapter I:

This chapter deals with the statement of problem, review of literature, scope of the study,
objectives of the study, hypotheses, methodology, sampling design, operational definition, period
of the study, limitation of the study and chapter scheme.

Chapter II:

This chapter analyses the factors influencing the women to became an entrepreneur

Chapter III:

This chapter presents the satisfaction level of entrepreneurs to their achievements.

Chapter IV:

This chapter examines the various problems faced by women entrepreneurs.

Chapter V:

This last chapter brings together the important summary of findings, suggestions and
conclusion for improving women entrepreneur’s satisfaction.