Study of Financial Problems of Women Entrepreneurs: Subhash Chander Dr. D.D. Arora

International Journal of Social Science & Interdisciplinary Research__________________________________ ISSN 2277 3630
IJSSIR, Vol. 2 (4), APRIL (2013)

Online available at indianresearchjournals.com
STUDY OF FINANCIAL PROBLEMS OF WOMEN ENTREPRENEURS

SUBHASH CHANDER*; DR. D.D. ARORA**
*RESEARCH SCHOLAR
UNIVERSITY SCHOOL OF MANAGEMENT
KURUKSHETRA UNIVERSITY, KURUKSHETRA
**PROFESSOR AND DEAN

UNIVERSITY SCHOOL OF MANAGEMENT
KURUKSHETRA UNIVERSITY, KURUKSHETRA
______________________________________________________________________________
ABSTRACT
Entrepreneurship is a herculean task for women in India but if carried successfully can inculcate
confidence among them and making them more conscious about their rights. Development of
women entrepreneurship is very low in India in comparison to developed countries. There are
number of obstacles faced by women entrepreneurs during start-up stage and running up of their
enterprise. These obstacles need to be addressed so that women can make a significant
contribution in sustained economic development and social progress of our country. The present
study tries to examine the financial problems faced by women entrepreneurs in Haryana during
start-up stage and running up of their enterprise. The study brought out that lack of adequate
information about the schemes of financial institutions for women entrepreneurs and reluctance
of officials to finance women entrepreneurs are the main problems.
______________________________________________________________________________
1. Introduction
India is a vast country with an estimated population of about 1.21 billion of which nearly half are
women. Entrepreneurship amongst women in India is relatively a recent phenomenon. Various
programmes are being conducted to improve the status of women, their access to resources and
so on. But peripheral interest has been shown in developing a realistic and well-designed plan
and programme for promoting women entrepreneurs. Despite the shared characteristics, gender-
based differences have been found to influence both business start-up and performance (e.g.
Greene et al., 2003; Loscocco and Leicht1993; Lerner and Almor 2002). This reality influenced
the author not only to study the field of entrepreneurship following a general and theoretical
approach, but to focus on the financial obstacles which women encounter when engaging in
entrepreneurship.
Finance is life blood of business. So, it becomes necessary for women entrepreneurs to
approach to financial institutions when need arises. Researcher made efforts to know the
behaviour of financial institutions in granting financial assistance to women entrepreneurs.
According to a report by the United Nations Industrial Development Organization (UNIDO),
"despite evidence that woman‟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, 1995).
Today, women have not only safely entered into job situations, but have also immersed as
professionals and executives in many fields. They have found acceptance in the family as well as
society. However, their entry into fiercely competitive business world has a great challenge.
Besides, family and social problems they face problems in raising both working capital finance
103
and long term finance. Rao. 2002, in his study gave higher rank to financial problems followed
by marketing, production and social problems.
2. Literature Review
A number of studies have been conducted in India and aboard focusing on problems faced by
women entrepreneurs including financial one. In the following paragraphs, a review of studies
relating to problems and challenges of women entrepreneurs has been done.
Yadav, while studying women entrepreneurs of Saurashtra region in 1999 found that 50 %
women entrepreneurs were managing their business successfully. None of them utilized 100 %
production capacity. It was found that education; religion, age and marital status had significant
impact on entrepreneurship. 90% of the women responded that it was very difficult to start and
manage the business venture as a woman independently. Other problems reported by them were
related to financing and marketing. Lack of training was also one of the major constraints and the
respondents suggested setting up of mobile training centres.
Soundarpandian, (1999) suggested that for entrepreneurship development in India, there was a
greater need to emphasize on research relating to process and enhancement of entrepreneurship.
The problems of women entrepreneur are listed as, Stiff competition from male entrepreneurs,
High price of raw materials required, Financial constraints, Managerial constraints, Technical
difficulties, Low ability to bear risks, Low level of favourable family background, Lack of
entrepreneurial initiative.
Rao, 2002 researched on problems of the women entrepreneurs. They classified the problems
into personal, social and economic categories. Lack of experience, lack of business exposure,
and conservative attitude towards risk were reported to be personal problems. Among social
problems was male domination, unwritten rules of society and family responsibilities. Lack of
economic power, no right over property, dependence on male members on banking and such
others were the economic problems faced by women entrepreneurs.
Rao, 2002 studied the problems of women entrepreneurs in Chennai. Among the socio- personal
problems, 70 % faced lack of family and community support. 60 % had managerial experience.
Production problem in the form of availability of land, plots and premises was faced by 70 %
respondents. Lack of knowledge about marketing the product was the major problem faced by 76
% of the respondents. 74 % faced financial problems regarding loan and subsidy whereas
inadequate government assistance was reported as problem by 70 %respondents. The ranking
given to problems by selected respondents was as Financial problems, Marketing problems,
Production problems, Socio-Personal problems, problems of Government Assistance and
Managerial problems.
Managerial problems among working female headed households were studied by Mehrotra, in
2003. The sample of this research study comprised of 120 working families selected through
purposive random sampling procedure. It was observed that majority of the respondents from
both rural and urban areas were highly affected by the general decline in financial position. A
large majority, i.e., 80 % were always under constant financial stress in spite of copying
strategies adopted by them. Rural families felt that these tasks were very tiring and stressful due
to the non-availability of paid help. Further, 75 % of urban and 82 % rural families were either
always or sometimes affected by psychological problems.
Problems of women entrepreneurs were studied by Chhichhia, in 2004.The information was
collected by questionnaire from 40 women entrepreneurs who had invested Rs 2 to 15 lakhs in
their enterprises. It was found that all entrepreneurs had some or the other problem. 91 % said
104
that there was lack of training, 79 % entrepreneurs reported that they had family responsibilities
and financial pressure, 54 % said that time spent did not give worthy outcome. 35 %said that
there was a need of modification from time to time. 72 % reported that they had to struggle more
to survive in the market. 93 % entrepreneur did not use internet in their enterprise, 3 % had
complete organized computer set up in their enterprises.
Kapadia and Barodia in 2004 while studying the problems of women entrepreneurs quoted that
in order to improve living conditions, developing capabilities of women for self-employment had
become essential. Women were often the main economic agents to ensure the survival of a poor
family. Hence, women get empowered if they are led towards entrepreneurship. They also
reported that there were successful women entrepreneurs today heading enterprises like
electronics, multimedia, garment industry and so on. They also suggested that women
entrepreneurs had to face many problems.
Rao, K in 2004 conducted a survey in Rajkot and collected information by questionnaire method
from 25 entrepreneurs from lower middle class. Families were grouped into three –
• Group -1 Education (Tuition and Play house)
• Group -2 Health and physique (Beauty Parlor)
• Group -3 Miscellaneous.
Survey showed that educational background was good for 28 % in group1, 24 % in group 2 and
48 % in group 3. Age was no bar to start any enterprise. Most of the undergraduate women
entrepreneurs in lower middle class had started business due to some problems like large family
size or disability of male earner. Most of the women entrepreneurs in all groups had arranged
their own funds, borrowing from friends or relatives but did not approach any financial
institution.
Jobanputra, in 2004 highlighted those problems that followed entrepreneurs like shadow. If a
women entrepreneur solves one, a few more crop up. It was suggested that a successful
entrepreneur has to be vigilant and work as a tactful manager.
While another study by Nayyar et al. (2007) suggested that Poor location of unit, tough
competition from larger and established units, and lack of transport facility, lack of rest and sleep
and non-availability of raw material were the significant problems faced by entrepreneurs. The
factors causable to these problems were; difficulty in affording own vehicle, not being popular,
heavy schedule of work and long working hours.
Vatharkar (2012) examined the problems faced by women entrepreneurs in Pune district at
various levels in their journey as entrepreneurs and also found the factors motivating these
women to become entrepreneur. The study found that women entrepreneurs face lots of problems
at start-up as well as operating stage like, role conflict, lack of motivation, lack of finance,
maintaining balance between work and family life, discriminating treatment, understanding
government rules and regulations, etc. Further, it is noted that these women entrepreneurs are
both “willing” as well as “forced” entrepreneurs. For some of them, factor motivating to start
their own enterprise is to support family financially, while for some of them it is the urge to be
economically independent.
Research on problems faced by women entrepreneurs have revealed that women
entrepreneurs face specific start-up problems as they are trying to shift their traditional role by
venturing into entrepreneurial world. So, researcher has tried to identify these problems and with
this objective problems relating to finance have been identified, one relating to start-up and
second faced in running up of the enterprise. An attempt is made to test the following
hypothesis-“There is no significant difference between the views of women entrepreneurs
105
according to different demographic factors for the main financial problems to start and run their
enterprises”.
3. Methodology
The present study was conducted among women entrepreneurs in Haryana state. The enterprise
included from both urban and rural areas. Information was gathered from 189 enterprises. For
selection of enterprise different divisions (mandals) are considered. Haryana has four divisions
which are divided into 21 districts. The four divisions consist of Ambala, Rohtak, Gurgaon and
Hissar. Three divisions namely, Ambala, Gurgaon and Rohtak were selected for the survey as
these divisions constitute about 93.43 percent of total MSM enterprises of Haryana (2007-08). A
sample comprising of 189 respondents from almost all areas of these three divisions were
approached by using the “Purposive and snow ball” sampling techniques. The respondents and
officials of DIC‟s and Banks were requested to furnish the names and addresses of women
entrepreneurs they know. The responses of the respondents from various divisions of Haryana
were analysed using Chi-Square technique using different criterion such as type of activity,
division, age, education, form of organisation, residential background and family structure of the
respondents.
4. Data Analysis Tools

For analysing the financial problems faced by women entrepreneurs, two separate types of
questions were prepared, one relating to start-up obstacles and second relating to the problems
faced in running up of the enterprise. The respondents were asked to mark their views as a major
obstacle, minor obstacle and no obstacle, on each of the problems faced by them and their
responses were given weights as 3, 2, and 1 respectively. The data collected has been analysed
by use of percentages and Chi-square test.
The first question raised to women entrepreneurs was regarding start-up finance problem.
The data obtained in this regard is given in table 1. It shows that39.2 percent women
entrepreneurs have faced the problem in obtaining start-up capital and accept it as a major
obstacle, 24.3 percent accept it as a minor obstacle and 36.5 percent responded that it is no
obstacle. Activity-wise information further shows that the problem of start-up capital is more felt
by respondents pursuing manufacturing and trading activities. In manufacturing sector, 43.8
percent of respondents find it a major obstacle, 27.1 percent minor obstacle and for 36.5 percent
start-up capital is no obstacle. In manufacturing sector, the entrepreneurs need more capital to
invest in plant and machinery and more space for factory. In trading sector, 40 percent women
entrepreneurs feel major difficulty in obtaining start-up capital, 20 percent feel it a minor
problem and 40 percent have not faced any problem in obtaining start-up capital. In service
sector, women entrepreneurs relatively feel less painful the difficulty of obtaining capital to start
their enterprise. As information in the table reveals that for 35.8 percent women entrepreneurs
obtaining start-up capital is major impediment, for 25.9 percent minor problem and for 38.3
percent no problem. The table also shows the value of Chi-square which is insignificant at 5
percent level of activity. It indicates that no significant difference in views of women
entrepreneurs is found in respect of this problem across type of activity undertaken by them.
106
Table 1 Problems faced by Women Entrepreneurs in respect of obtaining Start-up capital
Major obstacle Minor obstacle No obstacle

Type of Activity
Frequency Percent Frequency Percent Frequency Percent
Service 29 35.8 21 25.9 31 38.3
Trading 24 40 12 20 24 40 Chi-Square df
Manufacturing 21 43.8 13 27.1 14 29.2 2.177a 4
Total 74 39.2 46 24.3 69 36.5 Asy. Sig.=.703
Divisions
Ambala 27 38.6 16 22.9 27 38.6 Chi-Square df
Gurgoan 21 36.8 15 26.3 21 36.8 .563a 4
Rohtak 26 41.9 15 24.2 21 33.9 Asy. Sig.=.967
Education
Below Matric 3 37.5 3 37.5 2 25
Matric 13 38.2 7 20.6 14 41.2
Senior Secondary 11 52.4 3 14.3 7 33.3 Chi-Square df
Graduate 31 23.9 24 28.6 29 34.5 4.297a 8
Post-Graduate 16 38.1 9 21.4 17 40.5 Asy. Sig.=.829
Family Structure Chi-Square df
Nuclear 46 40 29 25.2 40 34.8 .386a 2
Joint 28 37.8 17 23 29 39.2 Asy. Sig.=.824
Form of Organisation Chi-Square df
Sole Trader 64 40.5 34 21.5 60 38 4.165a 2
Others 10 32.3 12 38.7 9 29 Asy. Sig.=.125
Background of Respondents Chi-Square df
Urban 45 34.1 35 26.5 52 39.4 4.715a 2
Rural 29 50.9 11 19.3 17 29.8 Asy. Sig.=.095
The table further reveals the division-wise information about problems of women entrepreneurs
in obtaining start-up capital. It is a major obstacle for 41.9 percent of women entrepreneurs in
Gurgaon division, 38.6 percent in Ambala division and 36.8 percent in Rohtak division. It is a
107
minor problem for 26.3 percent of respondents in Rohtak division, 24.2 percent in Gurgaon
division and 22.9 percent in Ambala division. The value of Chi-square is insignificant at 5
percent level of activity. Education-wise information further reveals that almost equal proportion
of women entrepreneurs (approximately 38 percent) face the obstacle of start-up capital as major
problem across different levels of education except senior secondary respondents, for 52.4
percent respondents it is a major obstacle. Making arrangement for start-up capital is a minor
problem for 37.5 percent of below matric, 28.6 percent of graduate, 21.4 percent of post-
graduate, 20.6 percent of matric and 14.3 percent of senior secondary women entrepreneurs. The
result of chi-square- test reveals that there is no significant dependence between these two
variables. Family structure wise information shows that 40 percent respondents coming from
nuclear family and 37.8 percent from joint family express that they felt the obstacle in obtaining
start-up capital and term it as a major obstacle. And 25.2 percent nuclear family respondents and
23 percent joint family respondents express that start-up capital arrangement is a minor obstacle
for them and with little efforts they overcome this barrier. The result of chi-square- test reveals
that there is no significant dependence between these two variables.
From the table it is also revealed that 40.5 percent of women entrepreneurs managing their
enterprise as sole trader and 32.3 percent other than sole trader express they felt major obstacle
in obtaining start-up capital. As relatively more sole traders feel this start-up obstacle, is may be
due to limited resources of an individual. For entrepreneurs other than sole trader it is a minor
obstacle for 38.7 percent of respondents. The result of chi-square- test (Chi-square=4.165a, df=2,
P=0.125) revealed that there is no significant difference between these two variables. The table
also shows that difficulty of obtaining start-up capital was more felt in respondents of rural
origin as 50.9 percent of them expressed that they felt it as a major problem and only 34.1
percent of urban origin respondents expressed it as a major problem. For 26.5 percent of urban
origin respondents and 19.3 percent of rural origin respondents it was a minor hindrance. The
result of chi-square- test (Chi-square=4.715a, df=2, P=0.095) reveals that there is no significant
dependence between these two variables.
Reluctance of Financial Institutions in Granting Credit Facilities is another problem of women
entrepreneurs. Table 2 which presents the survey data indicates that 16.4 percent respondents
face the problem of reluctance of financial institutions in granting credit facilities to a large
extent and another 24.3 percent face this problem to some extent. It is also clear from the table
that 59.3 percent of respondents are not facing this problem in any form. Activity-wise
information reveals that 20 percent respondents in trading sector, 17.3 percent in service sector
and 10.4 percent in manufacturing sector face this problem to a large extent and find the
behaviour of officials of financial institutions discouraging. It is a problem to some extent for 35
percent of respondents in trading sector, 25 percent in manufacturing sector and 16 percent in
service sector. The problem is more evident in trading sector and manufacturing sectors. The
value of Chi-square (Chi-square=9.696a, df=4, P=0.046) is significant at 5 percent level of
activity. It indicates that a significant dependence is found between these two variables. The
table further reveals division-wise information in respect of this problem. The behaviour of
officials of financial institutions is perceived to be discouraging by 19.4 percent respondents in
Rohtak division, 15.8 percent in Gurgaon division and 14.3 percent in the Ambala division. It is
considered as a problem to some extent by 25.8 percent, 24.3 percent and 22.8 percent of
respondents in Rohtak division, Ambala division and Gurgaon division respectively.
108
Table 2 Problem faced by Women Entrepreneurs in respect of reluctance of financial institutions in

granting credit facilities
Type of Activity
Frequency Percent Frequency Percent Frequency Percent
Service 14 17.3 13 16 54 66.7
Trading 12 20 21 35 27 45 Chi-Square df
a
Manufacturing 5 10.4 12 25 31 64.6 9.696 4
Asy.
Total 31 16.4 46 24.3 112 59.3
Sig.=.046
Divisions
Ambala 10 14.3 17 24.3 43 61.4 Chi-Square df
a
Gurgoan 9 15.8 13 22.8 35 61.4 .948 4
Asy.
Rohtak 12 19.4 16 25.8 34 54.8
Sig.=.918
Education
Below Matric 1 12.5 2 25 5 62.5
Matric 3 8.8 10 29.4 21 61.8
Senior Secondary 5 23.8 8 38.1 8 38.1 Chi-Square df
a
Graduate 13 15.5 22 26.2 49 58.3 10.887 8
Asy.
Post-Graduate 9 21.4 4 9.5 29 69
Sig.=.208
Family Structure Chi-Square df
a
Nuclear 17 14.8 32 28.8 66 57.4 2.110 2
Asy.
Joint 14 18.9 14 18.9 46 62.2
Sig.=.348
Form of Organisation Chi-Square df
a
Sole Trader 26 16.5 37 23.4 95 60.1 .460 2
Asy.
Others 5 16.1 9 29 17 54.8
Sig.=.795
Background of Respondents Chi-Square df
a
Urban 26 19.7 31 23.5 75 56.8 3.468 2
Asy.
Rural 5 8.8 15 26.3 37 64.9
Sig.=.177
The value of Chi-square (Chi-square=.948a, df=4, P=0.918) is insignificant at 5 percent level of

activity. It indicates that no significant dependencies found between these two
variables.Education-wise information further reveals that 23.8 percent senior secondary, 21.4
percent post-graduate, 15.5 percent graduate, 12.5 percent below matric and 8.8 percent
109
matriculate respondents perceive reluctance of financial institutions in granting credit facilities as

a major problem. It is perceived as a minor problem by 38.1 percent senior secondary, 29.4
percent matriculate, 26.2 percent graduate, 25 percent below matric and 9.5 percent post-
graduate respondents. The value of Chi-square (Chi-square=10.887a, df=8, P=0.208) is
insignificant at 5 percent level of activity. It indicates that no significant dependencies found
between these two variables.
Family-structure wise information reveals that for 18.9 percent of joint family and 14.8 percent
of nuclear family respondents, reluctance of financial institutions in granting credit facilities is a
problem to large extent. The table shows that 27.8 percent respondents hailing from nuclear
family and 18.9 percent hailing from joint family perceive that this is problem to some extent for
women entrepreneurs. The value of Chi-square (Chi-square=2.110a, df=2, P=0.348) is
insignificant at 5 percent level of activity. It indicates that no significant association is found
between these two variables. It is evident from the table that 16.5 percent of women
entrepreneurs who are pursuing their economic activities as sole trader and 16.1 percent other
than sole trader perceived „reluctance of financial institutions in granting loans‟ is a problem to
large extent. While 29 percent other than sole trader and 23.4 percent sole trader perceive that
this is a minor problem for women entrepreneurs. The value of Chi-square (Chi-square=.460a,
df=2, P=0.795) is insignificant at 5 percent level of activity. It indicates that no significant
association is found between these two variables. The table further shows that 19.7 percent of
urban origin and 8.8 percent of rural origin respondents perceived that they face this problem to a
large extent. Reluctance of financial institutions in granting credit facilities is a minor problem
for 26.3 percent of rural origin and 23.5 percent of urban origin respondents. The value of Chi-
square (Chi-square=3.468a, df=2, P=0.177) is insignificant at 5 percent level of activity. It
indicates that no significant association is found between these two variables.
Lack of knowledge about different financial schemes and facilities available to women
entrepreneurs is also considered as a major hindrance for them as they are unable to take the
benefit of these schemes and facilities. Table 3 highlights that 40.7 percent of the respondents are
of the view that in the process of development of entrepreneurship among women they face the
problem of, „lack of awareness of financial schemes and facilities available for them‟ to a large
extent. 33.9 percent of respondents reveal that they face the problem of lack of awareness of
schemes and facilities only to some extent in their way of success. It is clear from the above
information that about 74.6 percent of respondents are not able to get full benefits of various
financial schemes and facilities available to them due to problem of „lack of awareness about the
various financial schemes and facilities‟.
110
Table 3 Problems faced by Women Entrepreneurs in respect of lack of awareness of

financial schemes and facilities
Type of
Activity Frequenc Percen Frequenc Percen Frequenc Percen
y t y t y t
Service 32 39.5 21 25.9 28 34.6
Chi-
Trading 20 33.3 33 55 7 11.7 df
Square
Manufacturin
25 52.1 10 20.8 13 27.1 21.374a 4
g
Asy.
Total 77 40.7 64 33.9 48 25.4
Sig.=.000
Divisions
Chi-
Ambala 26 37.1 25 35.7 19 27.1 df
Square
Gurgoan 20 35.1 22 38.6 15 26.3 3.479a 4
Asy.
Rohtak 31 50 17 27.4 14 22.6
Sig.=.481
Education
Below Matric 3 37.5 4 50 1 12.5
Matric 12 35.3 18 52.9 4 11.8
Senior Chi-
12 57.1 7 33.3 2 9.5 df
Secondary Square
Graduate 36 42.9 21 25 27 32.1 16.179a 8
Post- Asy.
14 33.3 14 33.3 14 33.3
Graduate Sig.=.040
Chi-
Family Structure df
Square
Nuclear 49 42.6 36 31.3 30 26.1 .874a 2
Asy.
Joint 28 37.8 28 37.8 18 24.3
Sig.=.646
Chi-
Form of Organisation df
Square
Sole Trader 67 42.4 54 34.2 37 23.4 2.169a 2
Asy.
Others 10 32.3 10 32.3 11 35.5
Sig.=.338
Chi-
Background of Respondents df
Square
Urban 52 39.4 46 34.8 34 25.8 .343a 2
Asy.
Rural 25 43.9 18 31.6 14 24.6
Sig.=.842
111
It may have happened due to inadequate dissemination of information by appropriate authorities.

It may be inferred from the above information that various schemes offered by government,
public sector banks and other financial institutions are not availed by the deserving women
entrepreneurs. The table also shows that 25.4 percent of respondents don‟t consider that this lack
of awareness about financial schemes is a problem as many of them depend on their own source
of finance. Activity-wise information shows that 52.1 percent women entrepreneurs of
manufacturing sector, 39.5 percent of service sector and 33.3 percent of trading sector are facing
the problem of unawareness of financial schemes and facilities to a large extent and 55 percent in
trading sector, 25.9 percent in service sector and 20.8 percent in manufacturing sector accept that
they face this problem only to some extent. Chi-square test is performed to test the null
hypothesis that there is no association between the problem of unawareness of financial schemes
and facilities available to women entrepreneurs and type of activity undertaken by them. The
activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted. It shows that
there is significant association between the problem of lack of awareness of financial schemes
and facilities available to women entrepreneurs and type of activity undertaken by them. Women
entrepreneurs doing economic activity in trading sector are more ignorant in respect of financial
schemes and facilities which may have jeopardised their success as an entrepreneur.
Division-wise information shows that 50 percent respondents in Rohtak division, 37.5 percent in
Ambala division and 35.1 percent in Gurgaon division felt the problem of lack of awareness of
financial problem to a large extent. While 38.6 percent in Gurgaon division, 35.7 percent in
Ambala division and 27.4 percent in Rohtak division feel this unawareness is a minor problem as
they expressed that they face this problem only to some extent. The value of Chi-square (Chi-
square=3.479a, df=4, P=0.481) is insignificant at 5 percent level of activity. It indicates that there
is no significant difference in the views of respondents in respect of problem of lack of
awareness of financial schemes and facilities across division of respondents. Education-wise
information shows that 57.1 percent senior secondary, 42.9 percent graduate, 37.5 percent below
matriculate, 35.3 percent matriculate and 33.3 percent post-graduate face this problem to a large
extent. The table further shows that 52.9 percent matriculate 50 percent below matric, 33.3
percent senior secondary and post-graduate each and 25 percent graduate face this problem only
to some extent. The value of Chi-square (Chi-square=16.179a, df=8, P=0.040) is significant at 5
percent level of activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted.
It shows that there is significant difference in the views of respondents in respect of the problem
of lack of awareness of financial schemes and facilities available to women entrepreneurs‟ across
their level of education.
112
The table further highlights that 42.6 percent of women entrepreneurs hailing from nuclear
family and 37.8 percent from joint family expressed that lack of awareness of financial schemes
and facilities is a problem for them to large extent. For 37.8 percent of women entrepreneurs
from joint family and 31.3 percent of nuclear family it is a problem only to some extent. The
value of Chi-square (Chi-square=.874a, df=2, P=0.646) is insignificant at 5 percent level of
activity. Hence null hypothesis is accepted which indicates that there is no significant association
between these two variables. Women entrepreneurs (42.4 percent) doing business as sole trader
and 32.3 percent other than sole trader felt this is a major problem for them. It happens to be a
minor problem for 34.2 percent sole traders and 32.3 percent other than sole traders. The value of
Chi-square (Chi-square=2.169a, df=2, P=0.338) is insignificant at 5 percent level of activity.
Hence null hypothesis is accepted which indicates that there is no significant association between
these two variables. In the table origin of background wise information shows that 43.9 percent
respondents of rural origin and 39.4 percent of urban origin express they face this problem to a
large extent while 34.8 percent or urban origin and 31.6 percent of rural origin recognised that
they face this problem to some extent. The value of Chi-square (Chi-square=.343a, df=2,
P=0.842) is insignificant at 5 percent level of activity. Hence null hypothesis is accepted which
indicates that there is no significant relationship between these two variables.
Next problem considered under study was shortage of finance. The responses in this regard are
given in table 4. It shows that out of 189 sample population surveyed, 27.5 percent women
entrepreneurs are facing the problem of shortage of finance to a large extent, 32.8 percent are
facing this problem only to some extent considering it as minor problem and for 39.7 percent
finance is not posing any problem in their entrepreneurial adventure. Activity-wise information
reveals that 38.3 percent women entrepreneurs of trading sector, 29.2 percent of manufacturing
sector and 18.5 percent in service sector are facing the problem of shortage of finance to a large
extent and expressed it as their major problem. This problem is considered a minor problem by
50 percent respondents of manufacturing sector, 28.3 percent of trading sector and 25.9 percent
service sector and for remaining 55.6 percent women entrepreneurs of service sector, 33.3
percent of trading sector and 20.8 percent of manufacturing sector finance is not a problem in
any form.
113
Table 4 Problems faced by Women Entrepreneurs in respect Shortage of Finance

Type of
y t y t y t
Service 15 18.5 21 25.9 45 55.6
Chi-
Trading 23 38.3 17 28.3 20 33.3 df
Square
Manufacturin
14 29.2 24 50 10 20.8 20.893a 4
g
Asy.
Total 52 27.5 62 32.8 75 39.7
Sig.=.000
Divisions
Chi-
Ambala 20 28.6 20 28.6 30 42.9 df
Square
Gurgaon 14 24.6 22 38.6 21 36.8 1.540a 4
Asy.
Rohtak 18 29 20 32.3 24 38.7
Sig.=.819
Education
Below Matric 2 25 4 50 2 25
Matric 12 35.3 8 23.5 14 41.2
Senior Chi-
9 42.9 9 42.9 3 14.3 df
Secondary Square
Graduate 22 26.2 28 33.3 34 40.5 12.311a 8
Post- Asy.
7 16.7 13 31 22 52.4
Graduate Sig.=.138
Chi-
Family Structure df
Square
Nuclear 29 25.2 38 33 48 41.7 .881a 2
Asy.
Joint 23 31.1 24 32.4 27 36.5
Sig.=.644
Chi-
Square
Sole Trader 42 26.6 46 29.1 70 44.3 9.487a 2
Asy.
Others 10 32.3 16 51.6 5 16.1
Sig.=.009
Chi-
Square
Urban 38 28.8 40 30.3 54 40.9 1.259a 2
Asy.
Rural 14 24.6 22 38.6 21 36.8
Sig.=.533
114
Chi-square test is performed to test the null hypothesis that there is no significant association
between the problem of shortage of finance and type of activity undertaken by women
entrepreneurs. The value of Chi-square (Chi-square=20.893a, df=4, P=0.000) is significant at 5
percent level of activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted.
It shows that there is significant difference in the views of women entrepreneurs in respect of this
problem across type of activity undertaken by them.
Division-wise information reveals that in Ambala division, equal proportion (28.6 percent) of
women entrepreneurs accepted that they face the problem of shortage of finance to a large extent
and to some extent. In Rohtak division, shortage of finance is a major problem for 29 percent,
minor problem for 32.3 percent and no problem for 38.7 percent of women entrepreneurs. In
Gurgaon division, for 24.6 percent of respondents are facing the problem of shortage of finance
to a large extent, though 38.6 percent accepted that finance is a problem but only to some extent.
The value of Chi-square (Chi-square=1.540a, df=4, P=0.819) is insignificant at 5 percent level of
activity. Hence, null hypothesis is accepted which indicates that there is no significant
association between these two variables. Education-wise information in the table further shows
that 42.9 percent senior secondary, 35.3 percent matriculate, 25 percent below matric, 26.2
percent graduate and 16.7 percent post-graduate are facing the problem of shortage of finance to
a large extent. The problem is felt more by respondents who have not attained good education
level. It shows that they are unaware about financial schemes and unable to find right source of
finance. The value of Chi-square (Chi-square=2.311a, df=8, P=0.138) is insignificant at 5
percent level of activity. It shows that there is no significant association between these two
variables.
Type of family structure wise analysis shows that 31.1 percent of women entrepreneurs hailing
from joint family and 25.2 percent from nuclear family are facing the problem of shortage of
finance to a large extent. Almost equal proportion of respondents from nuclear and joint family
are also facing the problem of shortage of finance but to some extent only. The value of Chi-
square (Chi-square=.881a, df=2, P=0.644) is insignificant at 5 percent level of activity. Hence
null hypothesis is accepted which indicates that there is no significant association between these
two variables. Information across form of organisation reveals that 32.3 percent other than sole
trader and 26.6 percent sole trader face the problem of shortage of finance to a large extent and
51.6 percent other than sole trader and 29.1 percent sole trader accepted shortage of finance is a
115
problem to some extent. The value of Chi-square (Chi-square=9.787a, df=2, P=0.009) is

significant at 5 percent level of activity. Hence null hypothesis is rejected which indicates that
there is significant association between these two variables. 28.8 percent women entrepreneurs of
urban back ground and 24.6 percent of rural background are facing the problem of shortage of
finance to a large extent and found it as their major problem while 38.6 percent of rural
background and 30.3 percent of urban background consider shortage of finance a minor problem.
The value of Chi-square (Chi-square=1.259a, df=2, P=0.533) is insignificant at 5 percent level of
activity. Hence null hypothesis is accepted which indicates that there is no significant difference
in the views of women entrepreneurs in respect of this problem across their residential
background.
In some of the studies it has been found that banks, financial institutions generally do not come
forward to provide financial assistance to women borrowers on the ground of their less credit
worthiness and more chances of business failures. So an opinion of women entrepreneurs was
also taken in this regard the same is presented in table 5.
The table shows that only 6.3 percent of sample respondents face the major problem of economic
incredibility of women. Another 18 percent though accepted that problem of economic
incredibility of women exists but they feel it is a minor problem for them. Problem of economic
incredibility of women is not prevalent at high rate as more than three-fourth of women
entrepreneurs responded that they are not facing such problem. This problem is felt more only by
women entrepreneurs who are doing economic activities in trading and manufacturing sectors as
11.7 percent in trading sector and 4.2 percent in manufacturing sector face the problem of
economic incredibility of women to a large extent. Only 3.7 percent of the respondents in service
sector confirmed that such problem exists. 25 percent in manufacturing sector, 23.3 percent in
trading sector and only 9.9 percent in service sector face this problem only to some extent. The
activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted. It shows that
there is significant association between these two variables i.e. problem of economic incredibility
of women and type of activity undertaken by them.
116
Table 5 Problem faced by Women Entrepreneurs in respect Economic incredibility of

women
Type of
y t y t y t
Service 3 3.7 8 9.9 70 86.4
Chi-
Trading 7 11.7 14 23.3 39 65 df
Square
Manufacturin
2 4.2 12 25 34 70.8 11.441a 4
g
Asy.
Total 12 6.3 34 18 143 75.7
Sig.=.022
Divisions
Chi-
Ambala 6 8.6 15 21.4 49 70 df
Square
Gurgoan 4 7 9 15.8 44 77.2 2.788a 4
Asy.
Rohtak 2 3.2 10 16.1 50 80.6
Sig.=.594
Education
Below Matric 1 12.5 3 37.5 4 50
Matric 2 5.9 14 41.2 18 52.9
Senior Chi-
5 23.8 3 14.3 13 61.9 df
Secondary Square
Graduate 2 2.4 11 13.1 71 84.5 33.973a 8
Post- Asy.
2 4.8 3 7.1 37 88.1
Graduate Sig.=.000
Chi-
Family Structure df
Square
Nuclear 6 5.2 22 19.1 87 75.7 .805a 2
Asy.
Joint 6 8.1 12 16.2 56 75.7
Sig.=.669
Chi-
Square
Sole Trader 11 7 27 17.1 120 75.9 1.015a 2
Asy.
Others 1 3.2 7 22.6 23 74.2
Sig.=.602
Chi-
Square
Urban 9 6.8 19 14.4 104 78.8 3.862a 2
Asy.
Rural 3 5.3 15 26.3 39 68.4
Sig.=.145
117
Division-wise information reveals that 8.6 percent in Ambala division, 7 percent in

Gurgaon division and 3.2 percent in Rohtak division face the problem of economic incredibility
of women to a large extent. 21.4 percent respondent of Ambala division, 16.1 percent of Rohtak
division and 15.8 percent of Gurgaon division face this problem to some extent. The value of
Hence, null hypothesis is accepted which indicates that there is no significant association
between these two variables. Education-wise information further highlights that a high
proportion (23.8 percent) of respondents of senior secondary and 12.5 percent below matriculate
face the problem in respect of economic incredibility of women to a large extent. While 5.9
percent respondents of matric level of education, 2.4 percent respondents having graduation level
education and 4.8 percent post-graduate accepted that economic incredibility of women is a
problem to large extent. It shows that the problem of economic incredibility of women is
affecting more to those who have not attained higher level of education. The value of Chi-square
(Chi-square=33.973a, df=8, P=0.000) is significant at 5 percent level of activity. Hence, null
hypothesis is rejected and alternate hypothesis is accepted. It shows that there is significant
association between these two variables. 8.1 Percent respondents of joint family and 5.2 percent
of nuclear family expressed that they face this problem to a large extent. The problem of
economic incredibility of women is expressed as minor problem as 19.1 percent women
entrepreneurs of nuclear family and 16.2 percent of joint family face this problem to some
extent. The value of Chi-square (Chi-square=.805a, df=2, P=0.669) is insignificant at 5 percent
level of activity. The results indicate that there is no significant association between these two
variables.
Form of organisation wise information highlights that 7 percent sole trader and 3.2 percent other
than sole trader marked that economic incredibility of women is a major problem as they face
this problem to a large extent while 22.6 percent other than sole trader and 17.1 percent sole
traders expressed that it is a minor problem for them and they face it to some extent. The value of
Hence, null hypothesis is accepted which indicates that there is no significant association
between these two variables. Origin of background wise information shows that 6.8 percent
women entrepreneurs of urban origin and 5.3 percent of rural origin face the problem of
economic incredibility of women to a large extent and 26.3 percent respondents of rural origin
and 14.4 percent of urban origin face this problem to some extent. The value of Chi-square (Chi-
square=3.862a, df=2, P=0.145) is insignificant at 5 percent level of activity. Hence, null
hypothesis is accepted which indicates that there is no significant association between these two
variables.
As revealed above in the study that some of women entrepreneurs face the problem of shortage
of finance. In Indian society, male members of the family held maximum property to their name
and women relatively have a very less property and bank balance to their name. So, women face
difficulty in getting credit facilities from financial institutions and banks due to absence of
tangible security.
118
Table 6 Problem faced by Women Entrepreneurs in respect Lack of collateral security and
margin money to secure the money borrowed
Type of
Activity Frequenc Perce Frequenc Perce Frequenc Perce
y nt y nt y nt
Service 13 16 20 24.7 48 59.3
d
Trading 11 18.3 14 23.3 35 58.3 Chi-Square
f
a
Manufacturing 12 25 10 20.8 26 54.2 1.626 4
Asy.
Total 36 19 44 23.3 109 57.7
Sig.=.804
Divisions
d
Ambala 15 21.4 16 22.9 39 55.7 Chi-Square
f
a
Gurgoan 9 15.8 15 26.3 33 57.9 .993 4
Asy.
Rohtak 12 19.4 13 21 37 59.7
Sig.=.911
Education
Below Matric 3 37.5 1 12.5 4 50
Matric 10 29.4 10 29.4 14 41.2
Senior d
4 19 2 9.5 15 71.4 Chi-Square
Secondary f
a
Graduate 11 13.1 24 28.6 49 58.3 12.064 8
Asy.
Post-Graduate 8 19 7 16.7 27 64.3
Sig.=.148
d
Family Structure Chi-Square
f
a
Nuclear 22 19.1 28 24.3 65 56.5 .212 2
Asy.
Joint 14 18.9 16 21.6 44 59.5
Sig.=.899
d
Form of Organisation Chi-Square
f
Sole Trader 34 21.5 39 24.7 85 53.8 6.411a 2
Asy.
Others 2 6.5 5 16.1 24 77.4
Sig.=.041
d
Background of Respondents Chi-Square
f
a
Urban 25 18.9 31 23.5 76 57.6 .011 2
Asy.
Rural 11 19.3 13 22.8 33 57.9
Sig.=.994
119
Table 6 reveals that 19 percent of women entrepreneurs face major problem in the form of lack
of collateral security and margin money. 23.3 percent of women respondents face this problem
only to some extent. Activity-wise information reveals that 25 percent women respondents in
manufacturing sector, 18.3 percent in trading sector and 16 percent in service sector face this
problem to a large extent while procuring finance. The value of Chi-square (Chi-square=1.626a,
df=4, P=0.804) is insignificant at 5 percent level of activity. Hence, null hypothesis is accepted
which indicates that there is no significant association between these two variables. 21.4 percent
women respondents from Ambala division, 19.4 percent from Rohtak division and 15.8 percent
from Gurgoan division face the problem of lack of collateral security and margin money. The
value of Chi-square (Chi-square=.993a, df=4, P=0.911) is insignificant at 5 percent level of
activity. Hence, null hypothesis is accepted which indicates that there is no significant
association between these two variables.
Education-wise information shows that 37.5 percent below matric education level entrepreneurs,
29.4 percent matriculate, 19 percent senior secondary and post-graduate each and 13.1 percent
graduate face this problem to a large extent. The value of Chi-square (Chi-square=12.064a, df=8,
P=0.148) is insignificant at 5 percent level of activity which indicates that there is no significant
association between these two variables. Almost equal proportion of respondents hailing from
nuclear family (19.1 percent) and joint family (18.9 percent) face the problem of collateral
security and margin money to a large extent. The value of Chi-square is insignificant at 5 percent
level of activity. Table 5.11 further highlights that women entrepreneurs who are pursuing their
economic activity as sole trader (21.5 percent) relatively face more difficulty in getting loans due
of lack of tangible collateral security and margin money to their name. Only 6.5 percent
respondents other than sole traders face this problem. The value of Chi-square (Chi-
square=6.411a, df=2, P=0.041) is significant at 5 percent level of activity. Hence, null hypothesis
is rejected and alternate hypothesis is accepted. It shows that these two variables are closely
associated with each other. 19.3 percent women entrepreneurs of rural origin and 18.9 percent of
urban origin face the problem of lack of collateral security and margin money to a large extent.
Almost equal proportion of respondents of urban origin (23.5 percent) and rural origin (22.8
percent) acceptthat they face this problem to some extent. The value of Chi-square is
insignificant at 5 percent level of activity. It shows that these two variables are not positively
associated.
4 Conclusions
There are a number of constraints to women owned businesses that need to be addressed. The present
study is an attempt to examine the various financial obstacles faced by women entrepreneurs during start-
up stage and running up of their enterprise. A survey of 189 enterprises from urban and rural areas of
three divisions, Ambala, Rohtak, and Gurgaon of Haryana State was conducted. The results of the study
show that 39.2 percent of sample women entrepreneurs faced the problem in obtaining start-up capital and
accepted it as a major obstacle. Activity wise this problem is more felt in manufacturing and trading
sectors. 16.4 percent of Women entrepreneurs feel that financial institutions show reluctance in granting
credit facilities to them. The behaviour of officials of these institutions is found to be discouraging
especially by the respondents doing business in trading and manufacturing sectors. Inadequate
dissemination of information about financial schemes for women entrepreneurs is also felt as a major
problem by 40.7 percent of respondents. 27.5 percent of women entrepreneurs are of the view that
shortage of finance is a major problem for them. In overcoming these obstacles, there are actions to be
taken by government, financial institutions and policy makers by working closely with women business
associations.
120
REFERENCES
1. Greene, P.G.; Hart, M.M.; Gatewood, E.J; Brush, C.G; Carter, N.M. (2003).Women
Entrepreneurs: Moving Front and Center: An Overview of Research and Theory. United
Sates Association for Small Business and Entrepreneurship (USASBE). White Papers:
p.1-47
2. Lerner, M; Almor, T (2002). Relationships among Strategic Capabilities and the
Performance of Women-Owned Small Ventures. Journal of Small Business Management,
40 (2): p.109- 125.
3. Soundarapandian, M. (1999), Women entrepreneurship, Kanishka Publishers, New Delhi
4. Yadav, J., (1999), Profile of Women Entrepreneurs in Saurashtra Region, Ph.D. Thesis
Department of Commerce, Saurashtra University, Rajkot.
5. Rao, P., (2002), Entrepreneurship and Economics Development, Kaniska Publishers,
New Delhi.
6. Mehrotra, N. (2003), Managerial Problems among Working Family Headed Households,
Research Paper Presented at XXV BiennialConference of Home Science Association of
India on Enhancing the Qualityof Life Through Family and Community Science Hosted
by Home ScienceAssociation of India, Nagpur Chapter.
7. Chhichhia, V., (2004), Problems faced by Women Entrepreneurs and Importance of
Training in their Entrepreneurs, Research Paper Presentedat National seminar on
Women Entrepreneurship – A Need for Training andCurriculum Development held by
Development of Home Science Extensionand Communication, Faculty of Home Science,
M. S. University, Vadodara.
8. Kapadia, S. Barodia, S.. (2004), Women Entrepreneurs : Problems and Difficulties ,
Research Paper Presented at National seminar on Women Entrepreneurship – A Need for
Training and Curriculum Development held by Development of Home Science Extension
and Communication, Faculty of Home Science , M. S. University, Vadodara.
9. Rao, K., (2004), Women Entrepreneur in Lower Middle Class Families and their
Problems, Research Paper Presented at National seminar on Women Entrepreneurship –
A Need for Training and Curriculum Development held by Development of Home
Science Extension and Communication, Faculty of Home Science , M. S. University,
Vadodara.
10. Jobanputra V., (2004), Women Entrepreneurs –A New Face of Professional Women,
Research Paper Presented at National Seminar on Current Trendsand Issues in Home
Science, Saurashtra University, Rajkot.
11. Nayyar P., Sharma A., Kishtwaria J., Rana A., Vyas N. (2007), Causes and Constraints
Faced by Women entrepreneurs in Entrepreneurial Process, Journal of Social Sciences,
Vol.14, No.2, pp. 99-102.
12. Vatharkar (2012), A Study of Constraints and Motivating Factors for Indian Women
Entrepreneurs in Small Scale Industries, The 2012 International Conference on Business
and Management, 6 – 7 September 2012, Phuket - Thailand
13. United Nations Industrial Development Organization (UNIDO). (1995). “Women,
industry and entrepreneurship.” Women in Industry Series. Vienna, Austria.
14. Loscocco, K.A.; Leicht, K.T. (November, 1993) Gender, Work-Family Linkages, and
Economic Success among Small Business Owners. Journal of Marriage and the Family.
Vol. 55: p.875-887.
121

Study of Financial Problems of Women Entrepreneurs: Subhash Chander Dr. D.D. Arora

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Study of Financial Problems of Women Entrepreneurs: Subhash Chander Dr. D.D. Arora

Uploaded by

Copyright:

Available Formats

International Journal of Social Science & Interdisciplinary Research__________________________________ ISSN 2277 3630

IJSSIR, Vol. 2 (4), APRIL (2013)

STUDY OF FINANCIAL PROBLEMS OF WOMEN ENTREPRENEURS

**PROFESSOR AND DEAN

4. Data Analysis Tools

Table 1 Problems faced by Women Entrepreneurs in respect of obtaining Start-up capital

Major obstacle Minor obstacle No obstacle

Table 2 Problem faced by Women Entrepreneurs in respect of reluctance of financial institutions in

The value of Chi-square (Chi-square=.948a, df=4, P=0.918) is insignificant at 5 percent level of

matriculate respondents perceive reluctance of financial institutions in granting credit facilities as

Table 3 Problems faced by Women Entrepreneurs in respect of lack of awareness of

It may have happened due to inadequate dissemination of information by appropriate authorities.

Table 4 Problems faced by Women Entrepreneurs in respect Shortage of Finance

problem to some extent. The value of Chi-square (Chi-square=9.787a, df=2, P=0.009) is

Table 5 Problem faced by Women Entrepreneurs in respect Economic incredibility of

Division-wise information reveals that 8.6 percent in Ambala division, 7 percent in

You might also like