DAVCC’S ADVANCE MANAGEMENT RESEARCH: AN INTERNATIONAL JOURNAL

Marketing &
Entrepreneurship in SMEs
“Ensuring women empowerment through
supporting women entrepreneurship”

Sd/- Deepti Kalra, Govt College, Tigaon

12/15/2017

The year old Indian thought of considering women as the home maker has to larger extents
have changed in the recent years with the rising number of the women employments in
almost all the industries. The Indian women have also emerged as the victorious on the
managing front i.e. managing the overall organisational activities i.e. as the entrepreneurs. As
proven by the success stories of many women entrepreneurs ranging from Indira Nooyi, Indu
Jain, Kiran Mazumdar shaw, Vandana Luthra, Naina Lal Kidwai, to many more in the list.
But the role of the women entrepreneurs has also risen as a standalones in the small and
medium scale industries and need to be looked forward to encourage women empowerment.
Although with the rising number of women entrepreneurs in SMEs as supported by various
government schemes and initiatives, a lot more has to be done in order to give an equal status
to the women in the society. This paper methodology thus attempts to understand the various
initiatives taken by the Indian government to foster women empowerment and the problems
still pertaining and the ways to overcome them.
Introduction and statement of the problem: Women represent about 48.36 percent of the

total population in India and the majority of the Indian women are concentrated in the house

hold works only. The Indian women are well versed in almost all the tasks and need to bring

out in order to lead to economic growth of the society. Entrepreneurship refers to the act of

setting up a new business or reviving an existing business so as to take advantages from new

opportunities. Thus, entrepreneurs shape the economy by creating new wealth and new jobs

and by inventing new products and services through the basic day to day activities performed

at home like cooking, stitching, etc.

The women-owned micro, small, and medium enterprises is still unexplored as a distinct

segment compared to MSMEs in India due to a lack of awareness, support and the potential

business opportunity presented to this segment. Women entrepreneurs make a momentous

contribution to the Indian economy. There are nearly three million MSMEs in India with full

or partial female ownership and around 78 percent of women-owned businesses operate in

the services sector. Collectively, these women-owned enterprises contribute 3.09 percent of

industrial output and employ over 8 million people. It is also observed that the women

entrepreneurs have lower access to finance from formal financing sources when compared

with male entrepreneurs. Women-owned medium-scale enterprises, which account for 0.01

percent of the total MSME sector had finance requirements of around Indian rupees 0.21

trillion. Women entrepreneurship is largely skewed towards smaller sized firms, as almost 98

percent of women-owned businesses are micro-enterprises. As with the broader MSME

sector, access to formal finance is a key barrier to the growth of women-owned businesses,

leading to over 90 percent of finance requirements being met through informal sources.

Financial institutions that have created specific approaches for women entrepreneurs as part

of their overall SME strategies have seen an increase in the number of women clients, both as
entrepreneurs and as consumers. Banks data indicates that in the case of women-owned

businesses, non-performing loans are 30 to 50 percent lower, women-owned MSMEs present

greater potential for cross sales and they are likely to access more products when compared

with male entrepreneurs. This nearly makes them twice as profitable for banks as a consumer

segment. Financial institutions thus, tap this profitable segment with products and services

tailored to the needs of women-owned MSMEs. The financial institutions however need to

adapt to encouraging the women entrepreneurs both financially and with the technical

assistance because of number of reasons like: huge number of women entrepreneurs in the

services sector, banks rely heavily on collateral to give credit, which is a constraint for

women-owned services enterprises, there is also a need to address some of the more obvious

barriers that prevent women entrepreneurs from approaching financial institutions, such as a

lack of women relationship managers and the need for support from a male family member to

access credit and finally, financial institutions should consider options such as advisory desks

at selected bank branches to offer information on products and services tailored to women-

owned enterprises. Providing non-financial services and training, along with access to

financial products, will offer holistic growth opportunities to women entrepreneurs.

India’s growth story in the past decade has seen rapid industrial progress as well as

exponential growth of the services sector. The micro, small, and medium enterprises

(MSME) sector played a significant role in this through innovation, diversification, and

employment generation. An estimated 29.8 million MSMEs in India contribute 11.5 percent

of gross domestic product (GDP), 45 percent of industrial output, 40 percent of exports, and

employ nearly 69 million people. MSMEs in India are broadly divided into two classes

according to the provisions of the MSME Development (MSMED) Act, 2006. These are:

Manufacturing enterprises engaged in the manufacturing or production of goods pertaining to

any industry specified in the first schedule of the Industries Development and Regulation Act,
1951, defined in terms of investment in plant and machinery. Service enterprises engaged in

providing or rendering of services defined in terms of investment in equipment. 94 percent of

MSMEs operate without formal licenses or registration. Approximately 29 percent belong to

the manufacturing sector. MSMEs in the services sector, comprising of the remaining 71

percent, mostly operate in conventional transaction-based industries. Access to finance is a

key constraint to growth of the MSME sector in India. A significant proportion of financing

is sourced from (75%) informal sources such as moneylenders. Around 3.01 million women-

owned enterprises represent about 10 percent of all MSMEs in the country. Collectively, they

contribute 3.09 percent of industrial output and employ over 8 million people. Approximately

78 percent of women enterprises belong to the services sector. Women entrepreneurship is

largely skewed towards smaller sized firms, as almost 98 percent of women-owned

businesses are micro-enterprises. Approximately 90 percent of women-owned enterprises are

in the informal sector. Table 1 and 2 thus highlights the detail of the registers and

unregistered Women-owned MSMEs along with the Geographical distribution of women-

owned MSMEs

Table 1: Women-owned MSMEs

Category Registered Unregistered Total

Micro 274059 2655318 2929377

Small 40722 30414 71136

Medium 276 * 276

Total 315057 2685732 3000789

Source- International Finance Corporation

Table 2: Geographical distribution of women-owned MSMEs

 Prevalence of State wise No. of states/ States / union territories Combine

women-owned share (%) union d share

businesses territories %

High > 10.00 4 Kerala, Karnataka, Tamil 51.9

Nadu, West Bengal

Medium 5.00 – 2 Andhra Pradesh, Madhya 11.5

10.00 Pradesh

Low 2.00 – 7 Rajasthan, Maharashtra, 26.7

4.99 Punjab, Uttar Pradesh, Bihar,

Gujarat, Odisha

Very low < 1.99 20 Rest of India 9.9

Source- International Finance Corporation

Aims & Objective of the Study: The research is a purely exploratory review based research

with an objective to identify and understand various governmental and institution supports to

women SME entrepreneurs in ensuring women empowerment.

Conceptual Framework: Government schemes: Women have fewer opportunities for

education and employment than men. By ensuring women's participation in skills

development programs, it is possible to bring more women to light and make optimum

utilization of our human capital and women empowerment.

Scope & coverage: The government of India thus along with some financial institutions, in

order to encourage women empowerment with the aim of promoting and easing out the

process for them has introduced various schemes and incentives like:

 Under the trade Related Entrepreneurship Assistance and Development

(TREAD) scheme the government grant up to 30 percent of the total project cost to

the Non-Governmental Organizations (NGOs) for promoting entrepreneurship among

women. The remaining 70 per cent of the project cost is financed by the lending

agency as loan for undertaking activities as envisaged in the project. Further, the

government grants up to Rs. 1 lakh per programme is provided to training

institutions/NGOs for imparting training to the women entrepreneurs. Under this

scheme, proposals involving grant of Rs.51.65 lakh to 16 NGOs / institutions, have

been approved for benefiting 1700 women.

 Under Rural Employment Generation Programme (REGP) scheme the

government focuses on employment generation in the unorganized sector. Though

 there are no specific reservation for women entrepreneurs under this scheme, still

there has been substantial participation (around 30 per cent) of women as a result of

the promotional efforts undertaken in this regard. Under this programme, 3,656

projects of women entrepreneurs involving margin money of Rs.6397.99 lakh have

been assisted as government grant during 2007-08 up to December 2007.

 During 2006-07, the participation of women in terms of employment generation under

Prime Minister Rozgar Yojana (PMRY), was 16.5 per cent. Under the scheme,

preference is given to women beneficiaries and the government also made several

relaxations to women to facilitate their participation.

 Mahila Coir Yojana is a women-oriented self-employment scheme in the coir

industry, which provides self-employment opportunities to the rural women artisans

in regions producing coir fibre. The scheme envisages distribution of motorized rats

for spinning coir yarns to women artisans after giving training. Women spinners are

trained for two months in spinning coir Board provides motorized rats / motorized

traditional rats at 75 per cent cost subsidy, subject to a maximum, ceiling of Rs.7500/-

for motorized rats and Rs.2,925/- for traditional rats. During 2007-08, up to December

2007, 1,042 rats have been distributed.

 Rajiv Gandhi Udyami Mitra Yojana scheme launched on February 7, 2008 with an

objective to promote and support establishment of micro and small enterprises

through handholding of potential first generation entrepreneurs, who have already

successfully completed Entrepreneurship Development Programme (EDP), Skill

Development Programme (SDP) etc.

 Various Public sector banks’ schemes for women-owned MSMEs are:

o ALEAP and CGTSI - Mutual Credit Guarantee Scheme for Women by

Andhra Bank to provide Credit (Fund-based and/or non-fund-based) for single

eligible borrowers in the micro and small enterprise sector.

o Akshaya Mahila Arthik Sahay Yojna by Bank of Baroda to provide

financial assistance for professional, self-employed women and for women in

retail trade and agriculture.

o Cent Kalyani scheme of Central Bank provides financial assistance to women

entrepreneurs for economic pursuits in various sectors.

o Dena Shakti Scheme for Women Entrepreneurs of Dena Bank provides

finance for women entrepreneurs in agriculture and allied activities, small

enterprises, retail trade, micro credit, education, and housing.

o Schemes for professional and self-employed women of Oriental Bank of

Commerce for professional and self-employed women.

o Orient Mahila Vikas Yojana of Oriental Bank of Commerce, For women-

owned SMEs. Also, micro credit units provide doorstep services to women in

rural areas.

o Priyadarshini Yojana of Bank of India, Covers payments for women to set

up small, village, and cottage industries and to purchase machinery.

o Udyogini Scheme of Punjab and Sind Bank offer Loans on liberal terms for

women entrepreneurs in agriculture, tiny/small-scale industries, and retail and

also for professional and self-employed women.

o PNB schemes for women of Punjab National Bank offers five schemes for

women entrepreneurs: 1) To meet gaps in equity 2) To purchase

infrastructure 3) Easier credit to finance crèches 4) To meet working capital

credit requirements of allied agricultural activities 5) Margin concessions.

o Stree Shakthi Package for Women Entrepreneurs of State Bank of India,

For women entrepreneurs (small scale units managed by one or more women

entrepreneurs) with a stake of not less than 51 percent. Entrepreneurs who

have undergone entrepreneurship development programs conducted by state-

level agencies or programs co-sponsored/sponsored by the bank are eligible.

The scheme also offers a discounted rate of interest by 0.50% in case the

amount of loan is more than ₹2 lakhs.

o Marketing Fund for Women (MFW) by the Small Industries Development

Bank of India, Provides assistance to women entrepreneurs and organizations

involved in marketing products manufactured by women entrepreneurs to

increase their reach in domestic and international markets.

o Annapurna Scheme for Financing Women for Establishing Food

Catering Units by the State Bank of Mysore Supports women entrepreneurs

setting up food catering units in order to sell packed meals, snacks, etc. The

amount granted as a loan under this scheme can be used to fulfill the working

capital needs of the business like buying utensils and other kitchen tools and

equipment.

o Mahila Vikas Scheme of State Bank of Travancore , extends term

loan/working capital to units promoted by women entrepreneurs. Only

enterprises owned and administered by woman entrepreneurs, having a

minimum financial interest of 51 percent and providing at least 50 percent of

employment generated to women.

o Special Benefits for Women Entrepreneurs in Micro and Small

Enterprises Segments by the Canara Bank.

 Bharatiya Mahila Bank Business Loan: This loan is a support system for budding

women entrepreneurs looking to start new ventures in the fields of the retail sector,

loan against property, MICRO loans, and SME loans. The maximum loan amount

under this loan goes up to ₹20 crores in case of manufacturing industries and also a

concession is available to the extent of 0.25% on the interest rate and interest rates

usually range from 10.15% and higher. Additionally, under the Credit Guarantee Fund

Trust for Micro and Small Enterprises (CGTMSE), there is no requirement of

collateral security for a loan of up to ₹1 crore.

 Mudra Yojana Scheme For Women launched by the Govt. of India for individual

women wanting to start small new enterprises and businesses like beauty parlors,

tailoring units, tuition centers, etc. as well as a group of women wanting to start a

venture together. The loan doesn’t require any collateral security and can be availed

as per 3 schemes –

o Shishu – loan amount is limited to ₹50,000 and can be availed by those

businesses that are in their initial stages.

o Kishor – loan amount ranges between ₹50,000 and ₹5 lakhs and can be availed

by those who have a well-established enterprise.

o Tarun – loan amount is ₹10 lakhs and can be availed by those businesses that

are well established but require further funds for the purpose of expansion.

If the loan is granted, a Mudra card will be given to you which functions the same

way as a credit card however the funds available are limited to 10% of the loan

amount granted to you.

Promotional Package

Besides all the schemes In March 2007, the government of India has announced a

comprehensive package for the promotion of Micro and Small Enterprises, which comprises

several proposals and schemes having direct impact on their promotion and development.

Which includes credit and fiscal support, cluster-based development; infrastructure,

technology and marketing support and Capacity building of MSME Associations and support

to women entrepreneurs are the other important features of this package. Enhanced Credit

Flow to the MSME Sector for strengthening the delivery of credit to the MSEs, the

Government announced a policy package for stepping up credit to MSME in August 2005 for

doubling the credit flow to this sector within a period of five years. This has further resulted

in a significant increase in the credit flow from Public Sector Banks (PSBs) to the micro and

small enterprises (MSME) sector.

Skill Development

Along with the financial support the Government of Indian has also extended skill

development support as a high priority area through various measures like enhancing the

training capabilities of the Tool Rooms, MSME Development Institutes and other

organization under the Ministry of MSME. The agencies under the Ministry of MSME

conducted programmes for skill development for nearly 1.8 lakh trainees during 2007-08 and

the targets set for 2008-09 is 3 lakh persons. The Ministry of MSME provides all such

training for Scs/STs free of cost. Similar programmes are also being organized for women

and other weaker sections of the society free of cost, besides providing a monthly stipend of

Rs.500/-per month during the entire period of training.

Cluster Development Programme For the last few years, the Government has been

focusing on the strategy of Cluster Development for development of the MSEs through which

different cluster and concentrations of enterprises are given the benefit of a whole variety of

interventions ranging from exposure to skill development, from credit to marketing and from

technological improvements to better designs and products. About 412 clusters have been

approved for interventions under the scheme (including 50 clusters for hard interventions,

152 clusters for soft interventions and 210 clusters for diagnostic studies).

National Fund for Unorganized Sector

The National Commission for Enterprises in the Unorganized Sector (NCEUS) in one of its

reports has recommended creation of a National Fund for the unorganized sector. The

Minister for Micro, Small and Medium Enterprises, Mahabir Prasad informed parliament that

while a final view on the creation of this fund is yet to be taken, a token provision in the

Budget 2009-10 has been proposed. He said that the MSME has continued to contribute

significantly in the gross domestic product, industrial production, employment generation and

exports and has acquired a prominent place in the economy of the country. The government

has an ambitious 14-point action plan for public sector banks to increase women’s access to

bank finance, including MSME finance. It set a target of 5 percent aggregate public sector

bank lending to women and instructed the central bank to track performances. Following this,

Reserve Bank of India (RBI) in 2000 asked public sector banks to report credit extended to

women. This resulted in an increase of loans to women from 2.36 percent in 2001 to 5

percent of total lending in 2007. Aggregate net bank credit to women increased to 6.3 percent

in 2009, with 25 banks reaching targets. Apart from MSME-specific initiatives, India’s 11th

five-year plan encourages ownership rights for women by offering incentives for registration

of property. Women homebuyers benefit from tax exemptions, lower stamp duties, and easier

availability of home loans. This could help women who own MSMEs to get greater access to
collateral and, in turn, access business finance. The MSME ministry has flagged the

promotion of women-led enterprises as a key priority area. In 2008, the ministry launched the

government of India’s only financing scheme for women entrepreneurs. However, lack of

awareness among target clients led to low uptake of this scheme. In 2012, loans of Indian

rupees 7.7 million ($140,000) were disbursed against a target of Indian rupees 38 million

($700,000).Table 10 outlines the key details of the scheme. The government plans to set up

India’s first all-women’s public sector bank -- the Bharatiya Mahila Bank -- by the end of

2013. The bank targets to have 25 branches by March, 2014. This bank will focus on the

banking needs of women and promote their economic empowerment. The government has

approved Indian rupees 10 billion ($181 million) as seed capital for this bank. It gave an in-

principal approval for the bank in June 2013.

PERSONAL INTERVIEWS:

INTERVIEW NO 1: We met this young, smart man who had a good idea about a business

he wanted to start. An analyst at one of the major banks, the individual had a solid plan to

back his idea but had a problem. He had taken loans to go to B-School and now the cost of

going out his own and starting up was proving to be difficult. He had, after all EMIs to pay. It

is ironic that some of the life lessons are never taught at B-Schools but picked up outside. A

look at seven of them:

1. Ability to take calculative risks – As an old adage says no risk, no gain. This is

particularly true in business as one has to take risks – calculated risks. Many fail to take

risks due to the fear of failure and maybe losing everything. This greatly diminishes an

individual’s ability to make things work and is often the thin line between grabbing the

opportunity or letting it go. However, in most cases, what entrepreneurs do not realize is

that not taking a risk may itself be risky. In a world with cut-throat competition, it is often

a choice between finding the balance between the financial risk of investing and the

competitive risk of not investing. B-Schools will never be able to teach what constitutes a

calculated risk and what does not since it differs from occasion to occasion. There are

some risks that one can categorize and plan for but in all likelihood one can never know

for sure all the risks you will face in a business. Treat B-Schools like a game of Cricket.

You may have as many sessions in the nets, but nothing comes close to playing the real

game.

2. To deliver maximum with minimum – For an entrepreneur, resources are always

limited. Capital is limited, talent is limited, operating space may be limited and even cash

flow can be a trickle. However, within this limited setup an entrepreneur has to deliver.

By getting his hands dirty an entrepreneur over time learns to maximize his output with
 minimum resources he possesses. In all cases an entrepreneur has to juggle with his

resources to deliver the best result and this call for smart planning and envision. While an

entrepreneur may get a flavor of this at a B-School, the real life lessons come from

starting and operating a real business.

3. Working with Uncertainties – For every entrepreneur, there is a lot of uncertainty at

work. From getting the product or service ready to finding out if it’s acceptable, there is a

good deal of uncertainty. It is true that due diligence and good market research helps

negate uncertainty to some extent, nothing is cast in stone. A degree from a B-School

never prepares you to work with such uncertainties and ultimately it sometimes boils

down to good old trial and error. Sometimes it is about taking the leap of faith and every

entrepreneur will tell you that trial and error has been a vital part of their growing up. The

trick is to recover quickly from each mistake and continue forward. Uncertainties also

exist when scaling as it’s a trade-off between an expansionist strategy versus the wait-

and-see strategy.

4. What works beyond Marketing – Marketing is considered as the most vital part of

making a product or service work. One may have a great product or service, but it will

fail to take off if not marketed properly. However, most B-Schools often miss out that

there is life beyond the principles of guerrilla marketing, buzz marketing and viral

marketing. Providing a good customer experience is one of the most vital ingredients for

the success of a company and this is often overlooked. How a startup is able to provide

great customer service is best figured out on the job. Marketing techniques are also

evolving. Someone passing out from a B-School would have never learnt about marketing

through Facebook or Twitter. Similarly, philanthropy and undertaking social work is also

a great way to market a company – however small it may be. Thinking beyond bottom
 line and connecting with the society is a great way of leveraging your products and

services. Sadly, B-Schools often miss out on this vital part.

5. What real success and failure looks like – It is easy to find out what is at stake at a

business plan competition in a B-School. However, in real life sometimes the stakes are

high and success or failure can have different outcomes. A maverick entrepreneur by the

name of Richard Branson says, “In fact, failure is one of the secrets to success, since

some of the best ideas arise from the ashes of a shuttered business. If you are an

entrepreneur and your first venture wasn’t a success, welcome to the club!” In real life

success and failure often follow each other and an entrepreneur has to take in stride. Only

life experience will teach an entrepreneur, how to deal with success, what to do with it

and equally on how to deal with failure. Real success can be sweet, but failure may be

invaluable. B-School does not prepare you for real life success and setbacks, which can

come in various forms and degrees.

6. Leveraging your network – As an entrepreneur B-Schools may not be the most ideal

place to go. Business schools have often been the bastion for the investment banker and

the analyst and the number of people wanting to startup is relatively low. As someone

who wants to startup, sharing study time with someone who wants to be in the corporate

world may make you feel lost. Being an entrepreneur is very different from working in a

corporate setup.

For entrepreneurs, knowing the right people is very important and you may find them outside

the B-school setup. People that can impact your business, who can be a source of inspiration

and camaraderie are often found outside famed B-Schools. Create a rapport and over time

you will be able to leverage the network of people you know. Events, meet ups, conferences
all are great places to build your network, but sadly not one course in B-School will tell you

how to build your network or be popular

Stay humble, have fun – You may be an MBA from IIM but being humble is important.

Being grounded helps you capitalize on your education. Your B-School degree may open

doors but can alienate a lot of people by being brash about it. People do like individuals who

are grounded and humble and this certainly works in the long run – among peers, competitors

and employees. At the same time it is important to have fun on the job. If being an

entrepreneur is becoming a liability, maybe you are doing it wrong. When an entrepreneur

cannot wait to get back to his job everyday and is excited about what he is creating, there is a

far greater chance that you will do better. While starting up can be very sapping and time

consuming, keep aside time to relax, be with family and unwind.

By stating the above, I do not mean to deter anyone from education. Education after all, is the

bedrock of our intellect and wisdom. However, experience is surely the cheaper and richer

source of learning when compared to degree from B-School.

INTERVIEW NO 2: We met a team of 20-something entrepreneurs working on an idea and

were being offered a ‘commitment’ of around 50 Lakhs against a ridiculous 80 percent share

of their company. The teams had successfully proved the idea through a pilot test, making

significant financial returns, and still were keen on taking the abominable offer because they

needed the money.

INTERVIEW NO 3: We met around 50 women student entrepreneurs and innovators, most

of whom are in dire need of proper mentorship, guidance and, most importantly, access; and

while the number of incubators is steadily growing by the day, the amount of support

provided at the lowest level of the pyramid is pretty much non-existent, and highly isolated to

large urban centers.

The number of startups in the country is rising, and thus are the number of stakeholders

involved in the ecosystem. Incubators, accelerators, mentors, investors, all are adding to

thriving geographical-centered ecosystems around the country, as India takes its first

significant steps to become a knowledge-driven economy.

The challenge is, while India is an ideal place to start up today, we still lack some key

ingredients for becoming an extraordinary startup ecosystem.

Relevance, anticipated outcomes, and proposed outputs from the study:

Women too are seen leaving their high-profile jobs as well as some stepping out of the four

walls of their homes and joining the pool of Entrepreneurship in India. The major factor to

jumpstart the entrepreneurial journey is capital and various banks offer specialized loans for

women entrepreneurs that have slightly different and more flexible set of terms and

conditions pertaining to collateral security, interest rates, etc. However, an insight study

reveals the efforts of the Indian government to encourage women empowerment though

supporting the growth of women entrepreneurship. The women have achieved immense

development in their state of mind. With increase in dependency on service sector, many

entrepreneurial opportunities especially for women have been created where they can excel

their skill with maintaining balance in their life. Accordingly, during the last two decades,

increasing numbers of Indian women have entered the field of entrepreneurship and also they

are gradually changing the face of business of today, both literally and figuratively.
References:

1. Annual report of Ministry of Micro, Small and Medium Enterprise –[MSME] of

India, (2010-11, Introduction: Background of MSMEs Development Commissioner

(MSME), Government of India.

2. Annual report of MSME of India, (2010-11), Growth and performance of MSMEs

and 4th Census of MSMEs, Development Commissioner (MSME), Government of

India.

3. Rai D., (2009), Development Policies for Micro, Small Medium Enterprises

(MSMES) in India, Laghu Udyog Samachar: Journal of Small Scale Industries, 34(9-

11), pp 3-7.

4. Report of Prime Minister’s Task Force., (2010), Micro Small and Medium

enterprises, Government of India.

Website References:

http://www.startupindia.gov.in/,

https://en.wikipedia.org/wiki/Startup_India,

http://www.profitbooks.net/startup-india/,

https://yourstory.com/tag/startup-india/
Book Review and steps:

Women Entrepreneurship Start ups cannot be a flash in the pan. There are many impediments

in the way of a women entrepreneur from converting his idea into a successful business.

Capital, market research, finding a niche, identifying a team are some of them. Here are 10

steps that can help an entrepreneur bootstrap a start-up and provide structure to the process.

Step 1: Ignite your passion: Bootstrapping a startup does not start with great ideas but with

a passion to make a mark and solve real business issues. While an idea is very important to

do a startup, the best ideas will fail if there is no passion to execute it.

Step 2: Research your idea – Sometimes an idea should remain only an idea. This is the

stage where a founder determines if his start-up can grow to become a real business.

Step 3: No Plan B: A founder has to realize that a startup is a full time job. Very often than

not a startup where the founder is moonlighting fails to take off.

Step 4: Identifying the niche – Every idea must solve a problem in the society or provide

utility. It is only when the product or service is really needed that someone is willing to pay

for it and the business is sustainable.

Step 5: Defining the market – Once the need is identified, it is important to define what

constitutes the target audience. This can be done on age, gender, religion, interests, where

they reside among a host of other factors.

Step 6: Getting the right team: A founder cannot do a start-up alone. Every entrepreneur

needs a team to execute the idea and sometimes finding the right team is more important than

a brilliant idea.
Step 7: Creating your first prototype – Whatever may be the nature of the startup it is very

important to get a working prototype of the key elements.

Step 8: Finding your first unpaid customers – Unpaid customers are needed primarily for

two reasons. The first being once you have a final version of your product or service ready,

the real feedback comes from your customers.

Step 9: Prepare to scale – Many startups fail to scale, primarily because they have not

planned for it. In its infancy, things are easier to manage for a startup, but teething problems

begin when a startup grows bigger and starts addressing the higher volume of clients or

consumers.

Step 10: Go to market – Timing is the key when launching a product or service. Founders

are under tremendous pressure to quickly roll out their services and products, but what is

important to understand is that one has to be ready for it.