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ENTREPRENEURS IN INDIA
J.Shyamala,
Assistant Professor,Department of Commerce,
Sree Saraswathi Thyagaraja College, Pollachi (TK), Coimbatore (DT), Tamilnadu
ABSTRACT
In India, 65% of population lives in rural areas. Women population is 50 % share of general
population. Therefore, rural women need to turn up into entrepreneur which is an important factor in socio-
economic development. However, there is increasing evidence that more and more women are showing
interest in small business ownership and actually starting up with the business, the status of rural women
are bounded to low level. Traditionally, it is believed that women are physically and mentally weak, and
hence, they are not fit for hard, hazardous and risky tasks. In India, still there are many social and cultural
restrictions on women. Hence, women participation in entrepreneurial activities is less than the requirement
of the fast growth of India. Thus, in this article, an attempt has been made to find out the various factors that
motivate women to enter into business, the various problems faced by the rural women Entrepreneurs in
establishing and running their business in terms of finance, marketing, social, cultural and provide
suggestions to overcome the problems and empower in their business.
Introduction:
Entrepreneurship is the core of Economic development. Entrepreneurship is necessary to establish
the process of economic development of both developed and developing countries. It is also instrumental in
sustaining the process of economic development. Every country tries to achieve economic development for
richness, success and better life of society. So the contribution of both men and women is important in
building a healthy nation. The emergence of Women Entrepreneurs and their contribution to Indian economy
is transparent and very much visible in India. In India, the women Entrepreneurs have grown over a period
of time, especially in last two decades.
The mainstream of Indian economy has always been the unorganised sector. Unorganised sector
constitutes the major sector, especially in providing the employment opportunity in the economy. There is no
doubt in ensuring that, the unorganised sector in developing countries that makes a significant contribution
towards domestic product, and is a major source of entrepreneurship.
In most developing countries, like India, women are the active players in the informal sector
(mbeehe, 2002). It is estimated that women Entrepreneurs account for about 10% of the total entrepreneurs
in India (Barhate, 2012). Though many women entered into the world of business and have become
successful entrepreneurs, the rate of their participation in the business is very low, in spite of its increase in
last one decade. This growth rate of womens participation in economic activities is lower than the
participation of women in developed countries. Thus, in this article, an attempt has been made to find out the
various factors that motivate women to enter into business, the various problems faced by the rural women
Entrepreneurs in establishing and running their business in terms of finance, marketing, social, cultural and
suggestions to overcome the problems and empower women in their business.
Definitions:
Entrepreneurship
Entrepreneurship means different things to different people. Conceptually and in practice, the
term hints of no stereotypical model. Yet its very etymology- derived from the French, entreprendre,
which literally means, to undertake- indicates the minimum characteristics of an Entrepreneur. From the
perspective of economic functions, three crucial characteristics of entrepreneurial activities are: risk taking,
innovation and venturing into new business activities for profit. Entrepreneurship is the, process of creating
something new with value, allocate the necessary time and effort assuming the risk and reward.
Richard Cantillon was the first to introduce the term, entrepreneur. He defined an
entrepreneur as the agent who buys means of production at certain prices in order to combine them into a
product that he is going to sell at prices that are uncertain at the moment at which he commits himself to his
costs (Richard Cantillon 1951).
In terms of Schumpeter concept of innovative entrepreneurs Entrepreneurship is based on
purposeful and systematic innovation. It included not only the independent businessman but also company
directors and managers who actually carry out innovative functions (Schumpeter J. 1959).
Women Entrepreneurs
The Government of India has defined Women Entrepreneurs based on women participation in equity
and employment of business entrepreneurs. Accordingly, a Woman Entrepreneur is defined as an enterprise
owned and controlled by a women having a minimum financial interest of 51 per cent of the capital and
giving at least 51 per cent of employment generated in the enterprise to women. However this definition is
subject to criticism mainly on the condition of employing more than 50 per cent women workers in the
enterprises owned and run by the women (Khanka S.S. 2007).
Women entrepreneurs are those women, who generate business ideas, identify profitable business
opportunities, assemble the necessary resources, combine the factors of production, undertake risks and use
their business skills to operate the enterprise for the purpose of generating profit income and growth (Sudha
G.S. 2007).
Rural Women Entrepreneurs are those entrepreneurs who actually reside in rural areas and mobilize
human resources requirements from those areas in which they live. A rural women entrepreneur is a woman
or group of women who undertake to organise and run an enterprise in a rural area.
Unorganised Sector:
The definition of unorganised sector given by the fifteenth International Conference of
Labour statisticians in 1993 is regarded as a group of household enterprise owned by households that
includes informal own-account enterprises, which may employ contributing family workers and employees
on an occasional basis and enterprise of informal employers, which employ one or more employee on a
continuous basis.
According to NCEUS (2007), The unorganised sector consists of all unincorporated private
enterprise owned by individual or households engaged in the sale and production of goods and services
operated on a proprietary basis and with less than ten total workers.
ii) To examine the various problems faced by women entrepreneurs in establishing and running
a business enterprise
iii) To offer suggestions to overcome the problems faced by women entrepreneurs and improve
their business
Methodology
The present study is an empirical study based on Secondary data. The secondary data have been
collected from various websites, published books, Journals, Periodicals etc.,
Review of Literature
Syed Abdul Hameed (2015), has studied, The Problems and Prospects of Women Entrepreneurs in
India. The study focused on various factors influencing women entrepreneurship and recommended
measures for removal of obstacles to women entrepreneurship from the Indian perspective. The study
identified that, it is the need of the hour to motivate women entrepreneurs to harness the unexplored areas of
business venture and scale greater heights
G.Henry James and Dr.K.Satyanarayana(2015), has conducted an empirical study on Women
Entrepreneurship in India Problems and Prospects. The researcher focused on the status of women
entrepreneurs, problems faced by them and also offered suggestions for overcoming the constraints. It has
been recommended that, there should be efforts from all sectors to encourage the economic participation of
women and the country should rise to the challenge and create more support systems for encouraging more
entrepreneurship amongst women.
Dr.Vijayshree and B.Hema (2011), have conducted a study on, Problems and Prospects of Women
Entrepreneurs in Informal Market in Chennai. The main objectives of the study was to findout the
hindrances of Women Entrpreneurs in informal market and also to study their level of satisfaction of women
entrepreneurs in conducting their business. Non-probability convenience sampling technique was used and
data were collected from 150 respondents using questionnaire. Statistical tools such as simple percentage
and chi-square test were used and found out that, the finance and cultural factors especially on economic
angle were the major constraints that affected the growth of women. Further, all the respondents revealed
that they had a very modest living
Brijesh Patel, Kirit Chavda (2013), have conducted a study on, Challenges and Problems of Rural
Entrepreneurship in India. The study has stated that, the major problems faced by rural women
entrepreneurs are especially in the fields of marketing of Products, Financial amenities and other primary
amenities, i.e. availability of electricity, water supply, transport facilities and required energy etc.,
21. Training in entrepreneurial attitudes should be started at high school level through well-designed
courses which may build confidence through behavioral games
22. Young graduates of that area and the final year students of U.G/P.G courses may also be
provided with such Entrepreneurship training
23. Broad Base Credit Linked Capital Subsidy Scheme (CLCSS) for Technology up gradation of
unorganised Enterprises plays an important role in supporting a women entrepreneur to raise required capital
and to achieve advancements in technology.
24. A women entrepreneurs Guidance cell set up to handle the various problems of women
entrepreneurs all over the state
25. Marketing product is one of the main problems for women entrepreneurs. Here, women co-
operative societies can be started to procure the products from women entrepreneurs. They will help them in
selling their products at a reasonable price.
26. Identify women with different literary levels in proper groups and to create awareness about
entrepreneurship and its importance as job providing avenues rather than job seeking ventures,
Conclusion
Entrepreneurship among women, no doubt improves the wealth of the nation in general and of the
family in particular. Women today are more willing to start their own business or to take over family owned
business. The contribution of rural women to the economy is quite significant. Women entrepreneurs not
only give employment to greater number of people, they also enhance the economy to grow faster than
before, this results the women entrepreneurs to take challenging career and improve the nation as a whole.
But still, the problems and difficulties faced by rural women entrepreneurs are unnoticed. Lack of mobility
and capital investment was the major problem of rural entrepreneurs. Besides this, women entrepreneurs face
several obstacles. This is due to deeply rooted discriminatory socio-cultural values and traditions, embedded
particularly in the policy and legal environment and in institutional support mechanisms. In many instances
women are unable to benefit from services and struggle to overcome or circumvent discriminations in
business circles. So, it is the responsibility of the country to make certain policies to help the rural women to
develop entrepreneur skills and surface the problems to become flourishing entrepreneurs
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