Entrepreneurship Management

Women Entrepreneurs

Women Entrepreneurs- Definition Profile of a typical women entrepreneur Personality differences between Men & Women Male vs. Female Entrepreneurs A Comparison Professional Women: Problems & Perceptions Barriers to Women Entrepreneurs How can the problem be overcome? Schemes for Women Entrepreneurs

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Women Entrepreneurs- Definition

An enterprise owned and controlled by one or more women having a minimum financial holding of 51% or more, giving 51% or more employment to women Some Facts:

Women Constitute not only half of the Worlds population but also sway the growth of the remaining half
They produce half of the worlds food supply They account for 60% of the work force Own less than 1% of the real estate

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Profile of a typical women entrepreneur

First born child of middle class parents Atleast one of the parents are self employed College educated Married First significant venture in early 30s Previous experience in a new venture Desire for independence and job satisfaction Self confident and moderate risk taker High tolerance for ambiguity High energy levels Start up problems: Obtaining credit, access to information, marketing, lack of experience in financial planning, taxation, cash flow management, personnel management

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We need to understand
Whether women can contribute significantly towards the national economy Do they have equal potential? If so, why are there fewer women entrepreneurs today? What are their difficulties? How can we address them?

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Personality differences between Men & Women

In a patriarchal society like that of India, the exploitation and subjugation of women is commonplace
Women are equally achievement oriented, aggressive, independent, risk takers, self confident, hard working etc as their male counterparts

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Male vs. Female Entrepreneurs A Comparison

Women Entrepreneurs do things differently, as compared to male entrepreneurs

Women tend to work more in teams

Are less self-centered

Personal ego to them is less important for them than success of the organization or business idea they are pursuing

It is a known fact that personal characteristics as well as social aspects clearly play some role in developing entrepreneurship but entrepreneurs can also be developed through conscious action

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Professional Women: Problems & Perceptions

When one tries to explore the root cause of the underachievement of women as professionals, one finds that reasons are actually different from the commonly attributed lack of commitment and competence on part of women professionals The underlying reasons are more related to the social reality of Indian women which imposes certain socio-cultural role-models & stereotypes leading to a conditioning of peoples psyche

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Barriers to Women Entrepreneurship

Level Individual Barriers

Household /Family
Men decide about expenses

Business
Less income= less property= no security= no loan Lack of management know-how

Community/ Government
In some countries, signature of husband required for loan Women discriminated in terms of access to economic resources

Financial

Women look for security

Economical

Women get less education

Women lack support for household work

SocioCultural

Independent thinking is not allowed to women

Violence against women by husband

Limited mobility problems with the marketing, transportation & selling of goods

In male dominated industries, women entrepreneurs are not accepted

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Barriers to Women Entrepreneurship

Level Individual Household/ Business Family Barriers Political-Legal
Women act privately, not politically Women have got less influence and negotiation power in the family Less means to exert power/less protection by the state for women entrepreneu rs Lack of knowledge about women Entrepreneurs to be able to develop appropriate policies

Community/ Government

Psychological Philosophical

Low selfesteem, do not dare to demand rights

Women are divided

Women are afraid to be more successful than men/husba nds

State views men as the ones who publicly represent the family

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How can the problem be overcome?

Women have to go through the same stages of setting up an enterprise as do men They face similar challenges, irrespective of gender based social impediments like social stigma, unfavorable infrastructure, support systems, etc. which block their entry and reduce their pace of growth The need today is to help women overcome these blocks and draw maximum participation from them to set up enterprises, which will help them

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How can the problem be overcome?

Educate/train the women entrepreneurs

Help then in setting up of home based businesses

Make easy finance available Develop special schemes for women entrepreneurs Achieve self reliance and place women entrepreneurs at par with their male counterparts Develop gender sensitivity Examine the processes of gender inequality Acquire skills of identification of potential women entrepreneurs

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Empowerment is not only an external process, but a process that has to bring about intrinsic changes in women as well as in men When women get organized and raise their consciousness about their disempowerment and use their critical understanding to organize themselves and struggle for greater access to resources, there are very few problems they could face

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Schemes for women entrepreneurs

Seed capital scheme National equity fund Prime ministers employment guarantee scheme Single window scheme DIC scheme KVIC scheme Bank schemes for women entrepreneurs Mahila Arthik Vikas Mahamandal (MAVIM) Mahila Udyog Nidhi and Mahila Vikas Nidhi Priyadarshan Yojana

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Seed Money Assistance

Funds for unemployed youth and women aged 18 to 35 years, with minimum qualification- Std. VII th pass @ 10% Maximum seed capital available Rs.5 Lakh

Assistance percent is 10% to 15% of total fixed capital, 22.5% for backward classes
Repayment period- 7 years

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Prime Ministers Employment Guarantee Scheme

Maximum age of 35 years, with qualification- X th pass Assistance by way of loans up to 95% of project cost 15% subsidy is made available

Subsidy of up to 15% or Rs.7,500, whichever lesser provided by government of India

Parents of the candidates cannot have annual income exceeding Rs.24,000

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DIC scheme
Encouragement to start women entrepreneurship in areas with population of less than Rs. 1 Lakh Investment in machinery up to Rs.2 Lakh is allowed 20% of this investment is granted as seed capital For backward classes, the seed capital is up to 30% The interest rate is 4% Remaining capital needs to be financed by banks/financial institutions

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Single Window Scheme

Scheme by SIDBI to provide fixed and working capital from a single source Project cost excluding working capital and margin money, can go up to Rs. 20 Lakh

Repayment period-10 years

Founders capital- Minimum 25%

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Mahila Arthik Vikas Mahamandal (MAVIM)

Established on the 24th February,1975 Schemes: Maharashtra Rural Credit Programme (MRCP), Swarna Jayanti Gram Swarozgar Yojana (SGSY), Swayamsiddha Programme (IWEP), Mahila Swavalamban Nidhi (MSN), Ramai Mahila Shakshamikaran (SCP), NABARD Add-On Project, Rashtriya Samvikas Yojana (RSY), Krushi Saptak Yojana and Tribal Development Project (TSP) Activities/objective: Self employment of women, training them in various product and service industries, assisting them to start business and manage it

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Mahila Udyog Nidhi and Mahila Vikas Nidhi

Started by SIDBI in 1990 Provides finance up to Rs.10 Lakh through state financing corporation and SIDC Financial assistance provided as concessional rate Mahila Vikas Nidhi also provides assistance in training women entrepreneurs