Women Entrepreneurs as an Agent of Social Change

PGDM IV Semester

Women & Entrepreneurship
‡ As per the French Expert of the European Commission for Economic Studies (ECES),
Women s household duties, including childrearing and the financial practical side of housekeeping, have taught them to use their initiative under what are often difficult circumstances, in other words, to be enterprising and innovative.

Evolution of Women Entrepreneurship
‡ As per the worldwide survey initiated by the ECES and OECD* showed the following a the reasons for the rise of women entrepreneurs.
± ± ± ± ± ± ±

Need to play an active role To participate or to exist in their own right To achieve recognition To gain independence Sense of fulfillment Will to succeed Personal circumstances

‡ The study found that women who could not get well paid work, went ahead to create their own firms.
*Organization for Economic Cooperation and Development

Women Entrepreneurs
‡ As per the studies conducted and analyzed by National Foundation for Women Business Owners of the U.S.:
± Across the world women owned firms typically constitute between one-fourth and one-third of the business population. ± Women-owned businesses are starting in every industrial sector. ± The number of women-owned enterprises is growing faster than the economy at large in many countries.

As Agent of Social Change
‡ Majority of impoverished in the world are women and children. ‡ A number of tiny to small enterprises are undertaken by women. ‡ These enterprises enable women to improve the quality of life for themselves and their families. ‡ Such enterprises help improve the micro-economies of a nation. ‡ Foundation for International Community Assistance describes women as the most dependable, productive and creative members of impoverished societies.

Growth of Women Entrepreneurs
‡ In the US markets where large corporations are downsizing resulting in uncertainties of social and economic concerns
± Firms with fewer than 20 employees provide a quarter of all jobs. ± Growing number of these new organizations are led by women.

‡ Women are actively participating in various developing economies. In the sector of food production the contribution of women in developing economies is noteworthy.
± Women in Africa produce 80 percent of the food ± In Asia the contribution of women in food production is 60 percent. ± In Latin America the contribution of women is 40 percent.

Women Entrepreneurs in India
‡ As per definition proposed by the Government of India in 1988.
± Women Entrepreneur was defined as an enterprise owned and controlled by women having a minimum financial interest of 51% of the capital and giving at least 51% of employment generated in the enterprise to women.

‡ Criteria of Employment was dispersed in the year 1991. ‡ Currently, women s enterprise is defined as
± A small scale industrial unit / industry related service or business enterprise managed by one or more women entrepreneurs in proprietary concerns in which she / they individually or jointly have a share of capital of not less than 51% as partners / shareholders / directors of private limited companies / members of cooperative societies.

Women Entrepreneurship
‡ Women Entrepreneurs in India can be viewed as part of one of the following categories.
± Affluent Entrepreneurs ± Pull Factor ± Push Factor ± Rural Entrepreneurs ± Self Employed Entrepreneurs

Affluent Women Entrepreneurs
‡ These are daughters, daughter-in-laws, wives of rich business families. ‡ Family supports the enterprise in many ways through financial and other resource backing ‡ These entrepreneurs are not entirely dependant on the success of the enterprises.

Pull Factor Women Entrepreneurs
‡ In this category, the women take up entrepreneurial enterprises as a challenge. ‡ They hail from town to cities. ‡ These are educated women who may or may not have prior work experience. ‡ The aim these women entrepreneurs is financial independence. ‡ They take up enterprises where the financial risks are not very high.

Push Factor Women Entrepreneurs
‡ They hail from urban to semi-urban areas. ‡ These women take up some business ventures to overcome financial difficulties. ‡ The economic condition of their family push these women entrepreneurs into exploring business ventures.

Rural Women Entrepreneurs
‡ These women have negligible educational qualifications. ‡ They work in areas which involve a minimum usage of transportation, technology and even monetary transactions. ‡ They ensure that the enterprise is of minimum risk and need the least amount of organizing skills. ‡ The purpose of working for business ventures remains supporting the family income.

Self Employed Women
‡ They are women from poor to very poor category. ‡ They rely on their own efforts for sustenance. ‡ Majority of them are from villages and towns. ‡ They set up tiny to small enterprises which can conveniently be managed with their limited education and resources.

Women Entrepreneurs
‡ In India as per the census of 1991, Indian women were found to comprise only 16.5% of the total workforce. ‡ The increase in women entrepreneurs in India has been commendable from 5.2% in 1981 to 11.2% in 1995-96. ‡ Of the total women in 1981 almost 90% were from the rural background engaged in agriculture to agro-based industries. ‡ Current day women enterprises cover a much wider range like
± ± ± ± ± ± 20% of Women Entrepreneurs are involved in Chemical Industry 15% of Women Entrepreneurs are involved in Plastic Industry 13% of Women Entrepreneurs are involved in Textile & Hosiery Industry 12% of Women Entrepreneurs are involved in Engineering Industry 7% of Women Entrepreneurs are involved in Electronics Industry 4% of Women Entrepreneurs are involved in Leather Industry

Growth of Women Enterprises in India
When woman moves forward, the family moves, the village moves and the nation moves . ‡ Women have set up their enterprises and the reasons can be enlisted as below.
± Motivational Factors ± Facilitating Factors

Reasons for Growth
‡ Motivating Factors
1. 2. 3. 4. 5. 6. 7. 8. Economic Security Self Actualization Independence of Action Self Identity and social status Utilization of education and skills Role model to others Employment generation Continuation of family occupation


Facilitating Factors
1. Financial facilities resources 2. Government policies and programs 3. Support of family members 4. Network of contacts 5. Experienced and skilled people at work

Government Policy Support

Government Policy Support
‡ Initial Government Policies were aimed towards the welfare approach towards women. ‡ In 1970, the approach was shifted towards development. ‡ By 1980s the emphasis of the Government moved towards the core areas of Health, Education and Employment and women were given priority in all sectors including the SSI sector.
± Various programs were implemented under different sectors of agriculture and allied activities like
Dairying Handloom Poultry Handicraft Animal Husbandry Small Scale Industries

The Eighth Five Year Plan

Till this time almost 80% of the women entrepreneurs were from rural background and were engaged in agro-related fields.
1. Women in Agriculture was launched in 1993 to train women farmers having small and marginal holdings in agriculture and allied activities such as horticulture, fisheries, bee-keeping, etc. Women cooperatives with financial assistances from government were formed in agro based industries. Khadi and Village Industries Commission (KVIC) took measures to generate more employment opportunities for women Various schemes including Prime Minister Rojgar Yojana and EDPs were launched for honing the entrepreneurial skills. Other schemes like Integrated Rural Development Program, Jawahar Rozgar Yojana, Training of Rural Youth for Self Employment (TRYSEM) were launched with 30 to 40% reservations for women.

2. 3. 4. 5.

The Ninth Five Year Plan

A Special strategy called the Women Component Plan was adopted during the ninth five year plan.
1. 2. Under the scheme not less than 30% of fund / benefits were earmarked for women related sectors. Women Development Corporations were formed. They were aimed at providing forward and backward linkages of credit and marketing facilities to women entrepreneurs of small and tiny sectors. Trade Related Entrepreneurship Assistance & Development (TREAD) scheme was introduced under the Ministry of Small Scale Industries to provide economic empowerment in rural, urban and semi-urban areas. It develops their entrepreneurial skills, eliminates constraints faced by them and strengthens their trade support networks. Reservations for women was provided in schemes like Swarnajayanti Gram Swarozgar Yojna and Swarnjayanti Shahari Rozgar Yojna.



Industrial Estates for Women Entrepreneurs
‡ To give support and encouragement to women entrepreneurs, the Government of Andhra Pradesh encouraged setting up of industrial estates exclusively for women in 3 districts. ‡ The program was aimed at:
± Setting up of electronics, garments, food processing, printing, small engineering units, bio-technology, packaging, handmade paper, jute accessories, herbals, computer software and hardware. ± Encouraging export-oriented units like mushroom processing and computer hardware and software; ± Software Technology Park for women within the industrial estate.

Small Industries Development Bank of India (SIDBI)
‡ Established in April 1990 ‡ It is the Principal Development Financial Institution for promotion, financing and development of Industries in the small scale sector. It also coordinates the functions of other institutions engaged n similar activities. ‡ Business domain of SIDBI consists of organizations in which the investment in plant & machinery does not exceed Rs. 1 Crore. ‡ SIDBI is currently ranked among the top 30 development banks of the world.

SIDBI & Women Entrepreneurs
‡ SIDBI s schemes / development initiatives for women entrepreneurs include
± ± ± ± ±

Mahila Udyam Nidhi (MUN) Mahila Vikas Nidhi (MVN) Micro Credit Scheme (MSC) Women Entrepreneurial Development Programs (Women EDPs) Marketing Development Fund for Women Entrepreneurs.

‡ The objectives of the above schemes being
± To provide training and extension support services to women entrepreneurs through a comprehensive package designed according to skills and socio-economic status. ± Extending financial assistance on liberal terms to enable women to set up industrial units n the small scale sector.

SIDBI Initiatives
‡ Mahila Vikas Nidhi
± Executed during 1990 to 2001 ± Beneficiaries were over 155 NGO s and agencies involved in training and employment opportunities to women in rural areas by creating infrastructural facilities. ± Total amount sanctioned to various agencies to the tune of Rs. 8.04 Crore.

‡ Micro Credit Scheme
± Executed during Feb. 1994 to March 2001. ± Beneficiaries were over 169 micro finance institutions which in turn benefited over 4,42,000 people

‡ The rise of women entrepreneurs: people, processes, and global trends By Jeanne Halladay Coughlin, Andrew R. Thomas

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