WOMEN ENTREPRENEURSHIP

R.Jeya Sri; B.Siva Shankari,

II year, MBA,
Mepco Schlenk Engineering College, Sivakasi


ABSTRACT

Even though Indian culture is a male chauvinistic one, women started to stand tall from the rest
of the crowd and are applauded for their achievements in their respective field. The transformation of
social fabric of the Indian society, in terms of increased educational status of women and varied
aspirations for better living, necessitated a change in the life style of Indian women. Looking into the
women icon who fought their own battles to make their mark in this competitive world its clear that they
assertive, persuasive and willing to take risks. They managed to survive and succeed in this cut throat
competition with their hard work, diligence and perseverance.

This paper endeavors to study the reasons why women opt entrepreneurship, barriers they face
and how a suitable environment for women entrepreneurship to flourish can be designed. A small
research with 10 women entrepreneurs has been performed to find their opinions. In addition secondary
data from already performed researches have been also used to derive the conclusions.

KEYWORDS: Entrepreneurship, Women, Business, Barriers, Gender


INTRODUCTION

Women Entrepreneur It may be defined as a woman or group of women who initiate,
organize and run a business enterprise. Government of India has defined women entrepreneurs as
owning and controlling an enterprise with a woman having a minimum financial interest of 51%
of the capital and giving atleast 51% of the employment generated in the enterprise to women.
Nature has made a division of labor entrusting upon men and women different
responsibilities for the betterment of the process of evolution. The woman, the mother, has been
the symbol of continuity of culture, tradition and religion, being the binding force of the family
system. Women entrepreneurs can be divided into three categories:
First Category: They are established in big cities, having higher level technical and professional
qualifications. They are used up to non-traditional items and have sound financial positions.
Second Category: Established in cities and towns, having sufficient education. They are used up
to both traditional and non-traditional items. They undertake women services like kindergarten,
crches, beauty parlors, health clinic etc.
Third Category: They are illiterate women and are financially week. They are involved in
family business such as Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Agro
Forestry, Handloom, Power loom etc.
IMPORTANCE OF WOMEN ENTREPRENEURSHIP

Women entrepreneurship has been recognized as an important source of economic
growth. Women entrepreneurs create new jobs for themselves and others and also provide
society with different solutions to management, organization and business problems. However,
they still represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based
barriers to starting and growing their businesses, like discriminatory property, matrimonial and
inheritance laws and/or cultural practices; lack of access to formal finance mechanisms; limited
mobility and access to information and networks, etc.

Womens entrepreneurship can make a particularly strong contribution to the economic
well-being of the family and communities, poverty reduction and womens empowerment, thus
contributing to the Millennium Development Goals (MDGs). Thus, governments across the
world as well as various developmental organizations are actively undertaking promotion of
women entrepreneurs through various schemes, incentives and promotional measures.

CURRENT STATUS IN INDIA

The She Can, You Can Tupperware advertisements on prime-time television showcasing their
corporate social responsibility initiative for instilling confidence in Indian women to take up socially
relevant businesses of their own, have managed to share some tales of success of the Women
Entrepreneur. This being one side as per the survey made by economic times (6-1-2013) the fastest
growth in number of women owned firms over the past 10 years are found to be in Educational services
94%, Health care and social assistance 55%, Arts, Entertainment, food service and recreation 35% .

Financing Modes Percentage
Family members 43%
Banks 33%
Friends 25%
Venture Capitals 17%
Business Acquaintances 21%
Colleagues 16%
Government funding programs 15%
Crowd funding 13%
Angel investors 11%
Other 1%

A Dow Jones study Women at the Wheel: Do Female Executives Drive Start-up Success? has some
interesting conclusions:

The overall median proportion of female executives in successful companies is 7.1%, compared
to 3.1% at unsuccessful companies.
A companys odds of success increase with female executives at the VP and director levels. A
statistically significant evidence that there is a dependence between a company having female
executives and its success.
Based on his survey, the number of women partners and succeeded companied rate in India is found
to be as follows. ( From 2000- 2013 )


BENEFITS AND EXISTING PROBLEMS

Literature Review

The number of Women entrepreneurs is rising in the global world and it accounts to more than
25% of all business (Woldie & Adersua, 2004). Walker et al. (2007) argue that historically women were
pushed rather than pulled into business ownership. In recent studies it is indicated that many young
women actively choose self-employment than to be an employee. In addition to this Walker et al. (2008)
observe that womens preference to home-based business ownership predominantly by the flexibility
afforded to lifestyle and the ability to balance work and family. Women entrepreneurs can significantly
contribute in poverty reduction, mobilization of entrepreneurial initiatives, autonomy, and in accelerating
the achievement of wider socio-economic objectives (Belwal & Singh, 2008). However, the contribution
of women entrepreneurs depends on their performance, which in turn is affected by the underlying
facilitators and barriers, understating of which is a key to nurturing a balance economy and the growth in
a long run. However, women entrepreneurs in developed countries such as the US are much more
ambitious in constructing a professional identity. They revealed that they actively draw on role models
from different domains and prefer to learn from external role models. He identified that the factors like
innovation (the most influential), a business plan, a strong family support system, social networks, and
professional development is helping women in starting and operating their small business. Sindhu S.
Narayan and P.S. Geethakutty (2003) pointed that very high literacy rate and lack of employment
opportunities paved way for many unemployed youth including women to take up small-scale business
units. Kamal Naser et.al (2009) financial support from the government especially in the start-up capital is
an important factor that motivates women to establish their
own businesses. Self-fulfillment, knowledge, skills and experience, including relationship to
spouse/father business, are all important factors in the development of women entrepreneurs.

Push factors- Push factors are elements of necessity such as insufficient family income, dissatisfaction
with salaries job, difficulty in finding work and a need for flexible work schedule because of family
responsibilities. These factors may have more importance for women than for men.
Pull factors-Factors that work as entrepreneurial drive factors relate to independence, self-fulfillment,
entrepreneurial drive and desire for wealth, power and social status, co-operation and support of family
members and a strong network of contacts. The most prominent factor is self-achievement expressed in
terms of challenge which helps women to start, run their own business and turn it into a profitable
venture. When a strong need for achievement could not be fulfilled through a salaried position or when
there was a desire to transform a perceived opportunity into a marketable idea, then these factors work for
a person to start their own venture.

Research methodology

Sample size 10 (Primary data)
Sample area Chennai, Dinigul, Tuticorin, Virudhunagar
Sample type Convenient sampling within area sampling

The study aims at identifying the major barriers and the influencing aspects for women in
entrepreneurship. The sample areas comprises of urban, suburban and rural areas. The data collection
method is obtained through a well-structured questionnaire. The questionnaire includes the details of the
demographic profiles and eight constructs. Secondary data was obtained from problems and prospects of
women entrepreneurs in India in Journal of Management Research Vol 1 Issue 1 September 2013.

Analysis tools
Weighted mean
Results
Most people prefer to start their venture all alone without partners. They founded
entrepreneurship attractive mainly because of the innovativeness, flexible work time and profit. Its found
that most of the people who opted entrepreneurship found problems with personal mobility, handling men
and getting capital.

ENABLING ENVIRONMENT FOR WOMENS ENTREPRENEURSHIP
Women often have life skills and natural abilities that are useful in businesses. Women tend to be
great networkers, have inherent skills for negotiating, and the ability to multi-task. Single m
others are often good at delegating and budgeting; skills that they rely on to manage their
families. Specific strategies to help women entrepreneurs succeed include:
Creating a Strong Network
Considering Certifying as a Women-Owned Business
Understanding the Power of the Internet
Learning New Ways to Balance Work and Life
Getting Inspiration and Advice From by Other Women Succeeding in Business
Staying current on issues the present challenges for women in business, and read how
other women overcome their own obstacles in the business world.

Government has taken so many steps from its side starting from funding to helping them form
associations under schemes like
Mahila Vikas Nidhi
Under mahila vikas nidhi, a cumulative help of Rs. 80.4 million was
sanctioned, during the period 19902001 . Various training-cum production centers
set up by NGOs mostly relate to activities like sericulture, spinning, weaving,
block printing, handloom products, handicrafts etc.
Training Programs
The government of India has started various training programs schemes
exclusively for self-employment of women. The training programs include
Support for Training and Employment Programs of women (STEP) and
Development of Women and Children in Rural Areas (DWCRA).
Rashtriya Mahila Kosh
It was set up in 1993 to provide microcredit to poor women who had no access to
financial institution at reasonable rates of interest with very low transaction costs
and simple procedures. It proved quite useful for lower income group women.
District industries center
DICs arrange various lectures and seminars etc. in girls colleges and technical
institutes to encourage them to set up their own enterprises.
There are so many women asscociations helping women all over India like

S.no. Association Name Website
1 Federation of Indian Women Entrepreneurs
(FIWE)
http://www.fiwe.org/
2 Consortium of Women
Entrepreneurs(CWEI)
http://www.cwei.org/
3 Association of Lady Entrepreneurs of
Andhra Pradesh
http://www.aleap.org/index.html
4 Association of Women Entrepreneurs of
Karnataka (AWAKE)
http://awakeindia.org.in/
5 Self-Employed Women's Association
(SEWA)
http://www.sewa.org/
6 Women Entrepreneurs Promotion
Association (WEPA)
http://www.dcmsme.gov.in/
7 The Marketing Organisation of Women
Enterprises (MOOWES)
http://www.dcmsme.gov.in/
8 Bihar Mahila Udyog SanghBihar Mahila
Udyog Sangh
http://www.biharmahilaudyogsangh.com/
9 Mahakaushal Association of Woman
Entrepreneurs (MAWE)
http://www.maweindia.com/
10 SAARC Chamber Women Entrepreneurship
Council
http://www.scwec.com/index.htm
11 Women Entrepreneurs Association of Tamil
Nadu (WEAT)
http://www.wewatamilnadu.com/
12 TiE Stree Shakti (TSS) http://www.tiestreeshakti.org/
13 Women Empowerment Corporation http://www.wecindia.org

SUGESSTIONS

Apart from them these initiatives together will bring more benefits.
1. Gender budgeting
A gender responsive budget would allocate funds to move the society towards equality.
This would mean more money to train women entrepreneurs.
2. More E-Governance
Every process in the life cycle of a business like registration of the firm & bidding for
projects is made e-friendly; women would have an equal footing.
3. Rural Programme
A large number of women in rural areas are entrepreneurs in their own right. They need
schools where they can get basic education and marketing know-how at one place.
4. Global school
An institution that should aim at training women for big business.
A Major Suggestion here is, women entrepreneurs are getting success when they have
support from family and husband. So, there should be support from family and life partner. For
problem by an entrepreneur family members should support in all aspects. These two factors are
playing prominent role, to get success as an entrepreneur.

CONCLUSION

Entrepreneurship isnt a walk in the park for anyone and it can be even more challenging
if you are of the female persuasion. Even with all of the advancements that women have made
in the business world, there is still a long way to go before the success rate is level between male
and female entrepreneurs. However there is no age too late to start a venture and no biodata
requirements for a woman to being a business. Statistics of Web Women & Entrepreneurship in
India 2012 Study indicate that women as young as 20 are starting their own ventures. Perhaps
this large number is motivated to try their hands at business because of the creative free-reign
that entrepreneurial outfits offer or even the ability to make something out of the most
uncommon idea. So, with a support platform, loan schemes and ample opportunity, the only
thing that remains is initiative on the part of women wishing to enter the business world.

REFERENCES

[1]. Belwal, R. & Singh G. (2008), Entrepreneurship and SMSs in Ethiopia. Gender in
Management: An International Journal 23(2), 120-136.
[2] Bowen, Donald D. & Hirsch Robert D. (1986), The Female Entrepreneur: A career Development
Perspective, Academy of Management Review, Vol. 11 no. 2, Page No. 393-407.
[3]. Cohoon, J. McGrath, Wadhwa, Vivek & Mitchell Lesa, (2010), The Anatomy of an Entrepreneur-
Are Successful Women
Entrepreneurs Different From Men? Kauffman, The foundation of entrepreneurship.
[4].Women Entrepreneurship Development in India,
www.indianmba.com/Faculty_Column/FC1073/fc1073.html
[5]. Hackler, Darrene; Harpel, Ellen and Mayer, Heike, (2008), Human Capital and Womens Business
Ownership, Arlington, Office of Advocacy U.S. Small Business Administration, August 2006, VA
22201 [74], No. 323.
[6]. Kamal Naser, Wojoud Rashid Mohammed, Rana Nuseibeh (2009), Factors that affect
women entrepreneurs: evidence from an emerging economy, International Journal of
Organizational Analysis Volume: 17 Issue: 3, pp. 225 247.
[7]. Dr.S.Sakthivel Rani, M.Selvarani, Problems and prospects of women entrepreneurship: an
identification of the barriers, Journal of Management Research, Vol 1 Issue 1 September 2013.
[8]. Sindhu S. Narayan and P.S. Geethakutty (2003), Level of Entrepreneurial Success among
Women Entrepreneurs in Agribusiness, Journal of Tropical Agriculture, Vol 41, pp. 41-44.
[9]. Singh, Surinder Pal, (2008), An Insight Into The Emergence Of Women-owned Businesses As An
Economic Force In India, presented at Special Conference of the Strategic Management Society,
December 12-14, 2008, Indian School of Business, Hyderabad
[10]. Tambunan, Tulus, (2009), Women entrepreneurship in Asian developing countries: Their
development and main constraints, Journal of Development and Agricultural Economics Vol. 1(2), Page
No. 027-040.the glass ceiling. Thousand Oaks, CA: Sage.
[11]. Walker, E. & Webster, B. (2007), Gender, age and self-employment: some things change,
some stay the same. Equal Opportunities International, 22(2): 122-135.
[12]. Walker, E., Wang, C. & Redmond, J. (2008), Women and work-life balance: is homebased
business ownership the solution? Equal Opportunities International, 27(3): 258-275.
[13]. Woldie, A. & Adersua, A. (2004), Female entrepreneurs in transitional economy
businesswomen in Nigeria. International Journal of Social Economics, 31(1/2): 78-93.
[14]. http://www.chimc.in/Volume2.1/Volume2Issue1/GurendraNathBhardwaj.pdf
[15]. A Reflection of the India women in Entrepreneurial World - Article Womens Web 2013
[16]. www.iimahd.ernet.in/publications/data/2005-08-07 indirap.pdf
APPENDIX
SURVEY ON WOMEN ENTREPRENEURSHIP
Greetings Mam,
We are researchers doing our research regarding the barriers faced by women entrepreneurs
in India. We kindly request you to give your honest opinion and help us carry on our research
project. We assure that all the details that you provide will be kept confidential. Thank you for
volunteering and wish you all the very best for the future endeavors you undertake.
B. Siva Shankari , R. Jeyasri, MBA,
Mepco Schlenk Engineering College, Sivakasi.


Name Age
Educational
Qualification

Startup Name &
Details



Started on
Partners
count

Investment Monthly Income

Kindly make a mark on the respective opinion columns
Major Benefits being
Women Entrepreneur
Strongly
Agree
Agree Neutral Disagree
Strongly
Disagree
Freedom to take
decision

Freedom to choose
work and time

To earn more profit
as an individual

Self-dependence
Increase in skills and
experience

Apply creation and
innovation at work

Opportunity to deal
with others and
getting respect

Participation in the
social services


Barrier nature
Strongly
Agree
Agree Neutral Disagree
Strongly
Disagree
Getting Capital
Believing in their
abilities

Choice of Location
Societys outlook
Supplier search and interactions
Balancing Home and Business
Handling Men
Problems with the customers
Marketing
Personal Mobility
Lack of Management Skills
Exclusion from informal Networks
Perception of Women Role

If there is any experience / suggestion you would like to convey for budding entrepreneurs please
mention:









Signature