Impact of Entrepreneurship on Women Empowerment in Rural

Region of Indore
Mr. Naresh Dembla(Lecturer IIPS, DAVV), Srashti Rathore and Utkarsha Soni(MBA(MS)-5years9th Sem)

International Institute Of Professional Studies

Abstract

Women are regarded as better half of the society. In traditional Indian societies, they were
confined to four walls. In modern society, they come out of four walls to participate in all types
of activities including entrepreneurship. In India empowering women through entrepreneurship
has become an integral part of our development efforts because of 3 important reasons viz.
women development, economic growth and social stability. Present study is conducted to analyse
the "Impact Entrepreneurship on Women empowerment of Rural Region of Indore”. The study is
conducted in rural region of Indore. In present study it is found that there exists the significant
impact of entrepreneurship on women empowerment .Empowerment is the critical driver for
development of economic growth.

Keywords: Women-empowerment, Entrepreneurship, Economic empowerment, Socio-culture

empowerment, Psychological empowerment.

1
Introduction

Women Empowerment has emerged out as a very important issue in recent times. Women
Empowerment is the need of the hour because it is necessary to provide authority to the people
(women) who have many responsibilities for a better and improved country. The study focuses on
if entrepreneurship can be a tool for empowerment of women from the rural region of Indore.
Entrepreneurship provides economic and psychological growth for the women which results in the
women empowerment which turn leads towards the growth of the nation as a whole. This study
shows the various dimensions of empowerment through which it can be measured.

Entrepreneurship: The concept of entrepreneurship was first established in the 1700s, and the meaning
has evolved ever since. Many simply equate it with starting one’s own business. Most economists
believe it is more than that. Defining entrepreneurship is not an easy task. To some, entrepreneurship
means primarily innovation, to others it means risk-taking? to others a market stabilizing force and
to others still it means starting, owning and managing a small business. Entrepreneur is a person
who either creates new combinations of production factors such as new methods of production,
new products, new markets, finds new sources of supply and new organizational forms
.Entrepreneurship can be defined in terms of sixteen different factors:

Tolerance
Innovation
of
Self-Belief Ambiguity
Tenacity

Leadership
Determinatio
n

Disciplined

Emotional
Intelligence

ENTREPRENEURSHIP
Confident

Passion

Self-
Motivated

Vision

Flexibility
Responsible
Decision
Making Competitive

2
Women

A woman is a female human. The term woman is usually reserved for an adult, with the term girl
being usual reserved for a female child or adolescent.

Empowerment
Empowerment is the noun form of the verb EMPOWER which means to make(someone) more
stronger and confident; to give power or authority to; authorize, especially by legal or official
means. World Bank defines empowerment as the process of increasing the capacity of
individuals or groups to make choices and to transform those choices into desired actions and
outcomes. In Business Dictionary Empowerment has been defined as a management practice of
sharing information, rewards, and power with employees so that they can take initiative and
make decisions to solve problems and improve service and performance.

Nelly Stromquist, for instance, defines empowerment as "a process to change the distribution
of power both in interpersonal relations and in institutions throughout society"

In words of Lucy Lazo it is "a process of acquiring, providing, bestowing the resources and
the means or enabling the access to a control over such means and resources".

Women Empowerment

Empowerment of women means making women economically independent, self- reliant, confident
and positive in attitude.Four of the main processes that could lead to women's empowerment, as
defined by the IFAD evaluation, were changes in women's mobility and social interaction changes
in women's labour patterns changes in women's access to and control over resources changes in
women's control over decision-making.

Dimensions

Empowerment being a vague term in itselfneeds to be specified for measuringpurpose. Here in this
study the various dimensions through which the empowerment of entrepreneurs will be measured
are: Economic, Psychology, & socio-culture. In this study it is being considered that if a women
excels in these three dimensions then the women can be stated as an empowered women.

Economy:An economy or economic system consists of the production, distribution or trade, and
consumption of limited goods and services by different agents in a given geographical location.
At the level of household it refers to the Women’s control over income; relative contribution to
family support; access to and control of family resources.

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Psychology: Psychology dimension comprises of elements like Self-esteem; self- efficacy;
psychological well-being; Collective awareness of injustice, potential of mobilization; Women’s
sense of inclusion and entitlement; systemic acceptance of women’s entitlement and inclusion.

Socio-Cultural: A set of beliefs, customs, practices and behavior that exists within a population. In
this study this dimension comprises of women’s freedom of movement; in extra-familial groups
and social networks; Women’s literacy and access to a broad range of educational options;
Women’s freedom from domestic violence; Women’s freedom of gaining knowledge of the related
industry.

Rural region:

In general, a rural region or area is a geographic area that is located outside the cities and towns.The
Health Resources and Services Administration of the U.S. Department of Health and Human
Services defines the word “RURAL” as encompassing all population,housing and territory not
included within an urban area.

Indore city:

The largest city of the Indian state of Madhya Pradesh. Is Located on the southern edge of Malwa
Plateau, the city is located 190 km west of the state capital of Bhopal. With a Census-estimated
2011 population of 2,167,447 distributed over a land area of just (526 km2), Indore is the densely
populated major city in the central province. The Indore Metropolitan Area's population is the
state's largest, with 2.2 million people living there. It is the 14th largest city in India and
147thlargest city in the world.

Literature Review
Rincy V. Mathew and N. Panchanatham studied THE WORK-LIFE BALANCE OF WOMEN
ENTREPRENEURS IN SOUTH INDIA in the year 2011 which incorporates the results of an
empirical analysis of the WLB issues faced by the women entrepreneurs of South India. The
prominent WLB issues that they face are role overload, health maintenance problems, poor time
management, dependent care issues and lack of sufficient support networks. The complexity of
these issues poses very specific demands on the individual's role system. As the work roles of
women entrepreneurs and their personal and familial roles quite often contradict each other, these
women struggle to strike a balance between work and personal life. As a result, work-life
imbalances and conflict have become a common feature of the lives of many aspiring Indian
women entrepreneurs.

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Jayashree Upadhye, Arwah Madan,2012 conducted a research on Entrepreneurship and Women
Empowerment: Evidence from Pune City which entails that women from the lower strata of the
society though educated, are unable to find employment in urban India. The study considers
women from such lower strata of society turning into entrepreneurs. The study portrays a picture
of transformation in the personality, economic and social status of women from the lower strata of
the society. The objectives of this study were:1) to study the profile and nature of SHG sponsored
enterprises managed by woman entrepreneurs from lower income groups in urban areas with
reference to the Pune city (Maharashtra, India) and 2) to evaluate Personal, Economical and Social
status of these small women entrepreneurs in Pune city. The study concludes that there is a marked
change in the personality, the economic and the social status of these women. The hypothesis of
the present study is ‘Empowerment through Entrepreneurship has an influence on the personal,
economic and social status of women. ‘This study has its own limitations one was that the answers
sought for the personal, economic and social status before starting business is retrospective in
nature, and hence the limitations of retrospective answer that are likely to reflect the analysis. The
sample size for the study was of 247 women with the help of NGO’s.

Olajire Adeola Adegun and Comfort Olufunke AKomolafe,2013 studied Entrepreneurship

education and youth empowerment in contemporary Nigeria which is concerned with the
unemployment problem of the youth of Nigeria. The study entails that through entrepreneurship
the problem can be resolved.Unemployment of young people especially graduates have reached
an alarming height in the nation. The economy is currently shedding jobs more than it creates. It
is for this reason that the researcher is looking carefully at entrepreneurship education as a way of
exposing students to the knowledge of various skills and businesses while in school so that after
graduation they become self-employed rather than job seekers. The paper discussed the concept of
entrepreneurship education and youth empowerment, the youth empowerment strategies,
constrains to entrepreneurship education in Nigeria and ways of promoting entrepreneurship
among Nigeria youths. It was recommended among others that the entrepreneurial concept should
be integrated into the school curriculum from elementary school to post-secondary education.

Women’s Empowerment in Rural Bangladesh”,2006 this study was objected towards measuring
empowerment of rural women in Bangladesh with a number of indicators and examination
different from those used in Western area of world as Bangladesh has a predominantly Islamic
society with high levels of illiteracy and poverty. The result of the research was that Women are
relatively more empowered in the dimensions of self- esteem and role in decision-making,
compared to the dimensions of freedom of mobility and access to resources.

5
Social Justice Research Centre studied Gender, status and empowerment: A study among women
who work in Sri Lanka’s Export Processing Zones in the year 2009where report of a large sample
of women working in Katunayake, Sri Lanka’s largest EPZ, has shed important insights on the
effects of formal employment on women’s empowerment and status in developing countries. The
respondents living and working in Katunayake are relatively young, educated women who have
migrated from surrounding rural areas to work predominantly in garment factories. However,
despite the hardships of working and living away from home, the women appear resilient and
focused on the benefits that employment has brought to them and their families. The skills and
economic power the women have gained from formal employment has led to higher feelings of
self-worth for many, a sense of Independence and pride in being able to help their families possibly
move out of poverty. There were several issues which seriously undermined women’s
empowerment and status which are highlighted in this study. The data shows that despite economic
empowerment and significant contribution made to the economy in Sri Lanka, women are being
denied access to community and political involvement.

Matthias & Doepke Mich`ele Tertilt,2011 conducted a research “Does Female Empowerment
Promote Economic Development?”,which was based on to find out if Female Empowerment
Promote Economic Development. Researchers have also developed a series of non-cooperative
family bargaining models to understand what kind of frictions can give rise to the observed
empirical relationships. The researchers examine the link between female empowerment and
economic development from the perspective of economic theories of household decision making.
It is concluded that the same model does not apply to all the women hence the result may come
complete opposite in terms of different women.

Frank Bezzina, University of Malta, Malta, 2010 studied the characteristics of maltese
Entreprepreneur, which is based in Malta seeks to characterize the personality/psychological
profile of Maltese entrepreneurs (business owners and self-employed persons) and employed
managers. The characteristics investigated in this study are the need for achievement, locus of
control, tolerance towards ambiguity, self-confidence, creativity/innovativeness, risk-taking
propensity and self-sufficiency/freedom.It also attempts to determine which of these
characteristics can adequately distinguish between entrepreneurs and managers. However, the two
characteristics that adequately distinguished between entrepreneurs and managers in this study
were self- sufficiency and internal locus of control. In other words, Maltese entrepreneurs are
more likely to prefer to be their own boss and to take decisions independently and believe more
strongly than managers that they can influence events with their decisions.

6
Anju Malhotra, June 28, 2002 measured Women’s Empowerment as a Variable in International
Development whichis concerned with the steps of analyzing and measuring the women’s
empowerment through different indicators.This paper is a first step in the attempt to outline the
most promising methodological approaches for measuring and analyzing women’s
empowerment.Considering it as a complex concept. The study provides an indication of the
different ways in which empowerment has been conceptualized.

Paul Gompers, Anna Kovner, Josh Lerner & David Scharfstein, 1992 conducted a research
whichexaminedthe role that skill plays in the success of entrepreneurs and venture capitalists. By
examining the experience of serial entrepreneurs and the venture capitalists that fund them, paper
provides insights into how important each is and what type of skill each possesses. Results indicate
that skill is an important determinant of success for entrepreneurial startups. Successful serial
entrepreneurs are more likely to replicate the success of their past companies than either single
venture entrepreneurs or serial entrepreneurs who failed in their prior venture. More experienced
venture capital firms are also shown to have higher success rates on their investments.The results
in this paper also highlight the role of venture capital skill in identifying talented entrepreneurs
and attractive markets.

Liang, Chyi-lyi (Kathleen) andDunn, Paul did the study of entrepreneurs and entrepreneurship
which has resulted in a great deal of information about who entrepreneurs are and how they impacts
their behavior. This paper presents additional insight into who entrepreneurs are and how their
characteristics relate, and how those relationships might impact their behavior. Researchers have
studied selected entrepreneurial characteristics.In general researchers have believed optimism is
one of the entrepreneurial characteristics, and have described optimism in a group with seeking
independence, being in control, being creative and willing to take risks.

Dr. Jyoti Agarwal studied women-empowerment through women entrepreneurship (a study of

faizabad zone of uttar-pradesh) in 2010 where it is found that this enterprise is appropriate for
those women entrepreneurs who are having problem to outside home due to family responsibility
or their culture. They can start this venture inside their home. There is no boundation of caste or
marital or age on these entrepreneurs. The reason may be that they have to deal female customers.
No basic professional education is needed for this enterprise. Anyone who is able to read and write
can do diploma or degree courses for starting this venture. This enterprise can be started with
minimum expenditure and which can be expended later on. It is find that as age increases exposure
and expertise in the field increases which in turn increases further investment and profit. Thus we
can see how this venture can be used as important tool for empowering women.

7
Purpose of the Study

Objectives

To study the significant impact of entrepreneurship on Women Empowerment in Rural Region of

Indore.

Hypothesis

H0: Entrepreneurship has no significant impact on Women Empowerment.

HA: Entrepreneurship has significant impact on Women Empowerment.

Limitation

There are various limitations with the study. Some of them are as follow:

1.As it is discussed before, there are many factors of empowerment on which impact of
entrepreneurship depends. But in this study because of time constraints it was difficult to
examine all factors in relation with entrepreneurship.

2.Due to lack of financial help it is carried out in very limited villages.

3.As this project is made at college level thus, the present study is confined to a minimal sample
size and may not reflect the opinion or response of the entire population in general of rural
region Indore.

4.The study is restricted to the Indore region; therefore the results and findings cannot be
generalized for the whole country.

Research Methodology
Study Design

This research is based on the descriptive study. Descriptive research, is used to describe
characteristics of a population or phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Rather it addresses
the"what"question(Whatarethecharacteristicsofthepopulationorsituationbeing studied).The study
will be a field research.

8
Sample Design:

 Sampling technique to be used for this study will be non-probability sampling which will
include quota sampling quota sampling refers to the sampling where the population is
segmented into mutually exclusive sub-groups.

 Sample size is of 30.The number of questionnaires to be filled for the study are 30.

 Sample Respondents are the Rural women entrepreneurs who belong to the rural region of
Indore city.

Data Collection Tools and Scaling:

The nature of the data is primary.

Data collection tools that is used for the present study is Questionnaire. A questionnaire can be
defined as the structured technique for the data collection that consists of a series of questions
designed to extract specific information.

Data has been collected from four villages including interviews of 25 rural women entrepreneurs.
The villages that have been are:Harsola, Kodariya, Naoda, & Ahirkhedi:

The questionnaire for collecting data for this research comprises of three sections a)
Demographic,b) Entrepreneurship, c) Empowerment having 10, 16& 19 questions respectively.

Data Analysis Technique:

In this study data analysis is done through Reliability Test, Percentage Analysis, Correlation
and Regression.

9
Findings& Discussion

Reliability Test:

Table 1:Case Processing Summary

N %
Table 2:Reliability Statistics
Valid 25 100.0
Cronbach's Alpha N of Items
Cases Excludeda 0 .0
.664 21
Total 25 100.0
a. List wise deletion based on all variables in
the procedure.

This measures the overall consistency of the items that are used to define a scale. Since alpha
value lies near to one that is .664 therefore data is considered to be adequate.

Descriptive Analysis
Measuring Empowerment

4%

16% Highly
Empowered
Moderate
Empowered
Low
80% Empowered

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Interpretation:
Above interpretation shows that 16% of Female entrepreneurs of rural region are highly
Empowered. And 80% are empowered whereas only 4% females are low empowered.

Correlation:
Table 6:Correlations
Empowerment Entrepreneurship
Pearson Correlation 1 .618**
Empowerment Sig. (2-tailed) .001
N 25 25
**
Pearson Correlation .618 1
Entrepreneurship Sig. (2-tailed) .001
N 25 25
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:
Correlation is a statistical technique that can show whether and how strongly pairs of variables are
related. The above table shows that there is a significant positive relationship between the two
variables entrepreneurship and empowerment as significance value is lower than .005. Also the
coefficient shows the magnitude of their relationship which in this case is 0.618. It also signifies
the moderate level of correlation between the two variables.

Regression:
Since there is significant correlation between empowerment and entrepreneurship, their exact
relationship can be tested using regression analysis.
The model for regression is:
Empowerment = β0 + β1 entrepreneurship.
Table 7:Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate

1 .618a .382 .355 4.825

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Predictors: (Constant), Entrepeneurship

R-Square provides an indication of the regression model. What constitutes a "good" R-Square
differs depending on the setting and type of data used-Square is simply the percentage of variance
in the dependent variable explained by the collection of independent variables. In this case it's
about 38%.

Table 8:ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 331.080 1 331.080 14.221 .001b
1 Residual 535.480 23 23.282
Total 866.560 24
a. Dependent Variable: Empowerment
a. Predictors: (Constant), Entrepreneurship

The term "sig". In spss refers to "significance test". Which another way of saying statistical
hypothesis test. In other words, numbers in columns labeled "sig".are p-values and therefore give
the results of the hypothesis test.In these case, the p-values refers to the test of the entire model as
a whole. Since p value is .001 which is less than .05 .the alternative hypothesis will be accepted.

Table 9:Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) 39.485 9.530 4.143 .000
1
Entrepreneurship .553 .147 .618 3.771 .001
a. Dependent Variable: Empowerment

The decision rule is same .if p<.05 i.e. accept the alternate hypothesis which states that
Entrepreneurship has significant impact on Women Empowerment and conclude that the
independent variable is a significant predictor of the dependent.

Thus the final model comes out to be:

Empowerment= 39.485 +0.553 entrepreneurship.

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Discussion:
In the descriptive analysis where the overall empowerment of women entrepreneurs is measured
shows that 16% of the women are highly empowered, 80% are moderately empowered and only
4% of women are low empowered. This analysis portrays a picture where most of the women are
not completely empowered but entrepreneurship is empowering them partially or in other words
full-filling some of the needs and wants of women in terms of empowerment. The percentage
analysis of the individual factors of empowerment is done. Through entrepreneurship women are
supporting their families financially and feeling economically empowered.The reason of low
economic empowerment is the lack of available funds. The funds are lesser than what is required
for generating good amount of profit.

The percentage analysis of the second factor i.e. the psychological empowerment shows that 56%
of the women are highly empowered which means that even if they are not able to generate good
amount of profit from their business still they are motivated and find themselves psychologically
empowered. Entrepreneurship is giving a self-satisfaction to women cause of which they are not
giving up their work. It proves that entrepreneurship empowers women psychologically the most.

Third factor i.e. Socio-cultural Empowerment which entails that 72% of the women are moderately
empowered. Women do not find the complete sense of freedom in terms of mobility, decisions
regarding children’s education and some women also get humiliated by the members of their
families over small issues. Women do not have full liberty of going out of home without the
consent of their husbands or the other family members.If an overall look is taken this interpretates
that entrepreneurship is empowering women psychologically the most and it is found to be a good
source of earning for the women who cannot step out of their homes. Entrepreneurship has a
positive correlation with the empowerment which shows that there is a significant impact of
entrepreneurship on empowerment. In the end it can be deduced that entrepreneurship is
empowering women.

Conclusion:
The objective of the Research is to study the impact of Entrepreneurship on women
empowerment of rural region of Indore . In the study of correlation and Regression confirmed
the significance of entrepreneurship on women empowerment. various factors of
entrepreneurship that is Innovation, Tolerance of ambiguity ,Tenacity, Determination, Emotional
Intelligence, Passion, Vision,Responsibility,Competativeness,Decsion-making,Flexibility,self-
motivation,Confidence,Disciplined and Leadership influencing Empowerment factors that is
Psychological, Socio-culture, Economic.

13
In study the reliability testing confirmed that the variables used in study are Reliable. Whereas
through percentage analysis the psychological, economical and socio cultural empowerment is
measured.The study concludes that there is the significant impact of entrepreneurship on women
empowerment of rural region of Indore.

Hence, we can conclude that Women’s entrepreneurship is both about women’s position in society
and about the role of entrepreneurship in the same society. Increased participation of women in
entrepreneurship is a prerequisite for improving the position of women in society. The entry of
rural women particularly in entrepreneurship will be encouraged and motivated. Rural women can
do wonder by their effectual and competent involvement in entrepreneurial activities. Also
motivating women to engage in the activities with the right assistance and strengthening their
capacities besides adding to the family income and national productivity. Entrepreneurship is
effective instrument for social and economic development and is only perfect solution to the
growing employment among rural youth. It really helps to generate employment for a number of
people within their own social system and is best tool for rural women to maintain their identity in
society.

14
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15
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16
Articles:
1)National Policy for the Empowerment of women,www.wcd.nic.in/emp_women.html

2)Women Empowerment in India-An Eye opening website,www.womenempowermentinindia

.com

Books :
Entrepreneurship Books for Class 11th.

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