National Conference on New Dimensions & Dynamics in Indian Business - ISBN 978-93-5396-922-6

AN ANALYSIS ON CHALLENGES OF WOMEN ENTREPRENEURS IN INDIA

S.Sunitha , Research Scholar Dr S.Sudha, Research Supervisor

Vels Institute of Science, Technology & Advanced Studies (VISTAS)

ABSTRACT

The super competitive business world brings extreme challenges to the entrepreneurs.
This paper is to explore the world of women entrepreneur and their challenges to establish in
market. This paper provides the detailed study of present condition of women entrepreneurs and
their struggle in start-ups. Entrepreneurs increasingly contribute to India’s GDP and also have a
greater impact on the socio-economic state of the nation; Economic participation by Women will
boost the development of economy.

KEYWORDS: entrepreneurs, women entrepreneurs, start-ups

INTRODUCTION

India is a land of diversity and cultural heritage and values, and the most striking feature
of India is it Size, the seventh largest in the world with one of the largest populations of
technically qualified manpower, comprising around 15 million doctors, engineers and scientists.
On the other hand, the literacy rate in the country is just over 50%. Surprisingly India is a young
country with 40% of its population falls under range of 23-44 years. The wide urban-rural divide
makes India demographically more equipped. India opened its economy in 1991, and since then
the forces of change have affected virtually all Indians, both personally and professionally.
Almost all Indians have an opinion about these changes in the economic policies, and are quite
vocal in advocating or opposing these changes. India is a developing country and its
development is truly the hard work of its people. India has shaped many great scholars,
scientists, intellectuals and even entrepreneurs. The sense of achieving is deep rooted in Indians
and that’s the reason Indians are doing great works in almost all countries. India has produced
many successful entrepreneurs who have raised the standards and placed made India globally
visible ,

WOMEN ENTREPRENEURS IN INDIA

The Constant development and globalization has boasted the Indian start-up industry,
making more women folks turning into entrepreneurs and chasing their dream of success &
becoming global leaders. One such wonder women is Kalpana Saroj , of Kamani industries. She
is the first female corporate entrepreneur in post-independence India. As per the Sixth Economic
Census, this was conducted between January 2013 and April 2014. Out of 58.5 million
businesses counted by that census, 8.05 million were owned by women, which correspond to a
rate of 13.76 percent of women among the total number of entrepreneurs in India. According to a
World Bank Enterprise Survey, the percentage of women in leadership positions in 2014 was as
low as 9 percent. The top five states with the highest percentage of women entrepreneurs are
Tamil Nadu, Kerala, Andhra Pradesh, West Bengal, and Maharashtra. In a recent study by World
Bank, it’s observed that in 2012, only 27 % of adult Indian women had a job, or were actively
looking for one, compared to 79 %of men. In fact, almost 20 million women had dropped out of

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National Conference on New Dimensions & Dynamics in Indian Business - ISBN 978-93-5396-922-6

the workforce between 2005 and 2012. Indian women entrepreneurs are sub dived in three
categories

First Category Second Category Third Category

•Established in Big Cities •Established in towns and • Established in Villages

•Highly Educated cities • Illiterate
•Sound Financial backgroud •Educated • Financially Weak
•Affluent Entreprenuer •Little Financial Support • Rural Entreprenuer
•Self Entreprenuer

Figure 1.1 -Types of Women Entreprenuers in india

The Women of present-day symbolizes a educated, modern, working women who has family to
run, kids to feed along with job in hand. Women’s usually achieve professional and personal
goals without risking their dignity, money or taking much risk. There are many factors which are
responsible for turning a woman into a entrepreneur – Reasons why women’s start business
 Decrease in Private or Public Job availability
 For Change in Life Style / Life Style expense
 Financial independence or Compulsion
 Inflation
 Enhance Family income
The availability of microfinance has ameliorated women’s empowerment and entrepreneurship
and 98 percent of businesses owned by women are micro-enterprises, where approximately 90
percent of them operate in the informal sector. India is steadily rising up the ranks when it comes
to a favourable start-up ecosystem with solid backing from the Government.Challenges for
female entrepreneurship Today’s world is advancing in terms of empowering women in various
Being a Woman - India is a land, which worships female-deities from centuries. However, the
evils of society have brought up immense challenges of being a woman in India. Be it as a
mother, a working woman, or even a small girl. Women are abused, ill-treated, harassed and
demoralized.
Funding and Financing – Major setback or problem in Women led start-up are the Funding
and Financing arrangements. It’s not easy for women to get a collateral free loan or clear
financing as most of the Banks and Financial institution don’t voluntarily consent them to grant
loans.
Limited Mentoring Opportunities – Women’s need Support and Guidance to establish them
in this Male dominant competitive market. Absence of such guidance, Skill, and knowledge
creates a gap. Recently many initiatives have been taken by government and many NGO & SHG
have accepted this challenge and helping women’s in both rural and urban areas of our country.

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National Conference on New Dimensions & Dynamics in Indian Business - ISBN 978-93-5396-922-6

Lack of Workspace -A single lady looking for an office space often ends up in trauma.
Finding a workspace near home is again a big challenge; the latest trend in start -ups is the
shared office space, Co-working Spaces.
Lack of access to technology – Women need technology for the same reasons as men: to
develop their marketable skills, enhance their economic opportunities, participate in informed
decision-making, network, promote themselves as individuals or simply to have fun. Women
need technology to participate in the modern world as equals.
Mobility issues – Women’s usually prefers closer work places, most of the indian womens are
engaged in home based business like Pickle dealers, Papad , Ornament , handlooms , mostly
small scale businesses. Travelling frequently
Non Awareness of facilities offered by government – Women Entrepreneurs are backed
by various government schemes in India to grow their small business, however most of the
women’s are unaware of these benefits.Some of the schemes are – Annapurna Scheme For
Catering Business, Stree Shakti For Entrepreneurship Development Programme, Dena Shakti
Scheme For Manufacturing Business, Orient Mahila Vikas Yojana For Small Businesses.etc The
governments at the centre and the states have established a number of specialized institutions to
cater to the needs of women entrepreneurs but they still face many problems.

CONCLUSION

India has seen many successful Women entrepreneurs; Indra Nooyi, Chanda Kochar or
Ekta Kapoor to name a few. Women will have to brave the odds and succeed. Promoting the full
prospective of women entrepreneurs can support innovation, economic growth, and job creation.
There is a need of entrepreneurial counselling and promotion with well-planned market
surveys.First, To bridge the Gender Gap and promote Equal Opportunity to all, It’s essential to
promote education and leadership skills at all levels. Policies should be such that women should
be included in senior /leadership positions which will help women have to start on their
own.Second, Women entrepreneurs at all categories should have access and knowledge of all the
government schemes available for them. There should be regular drives and media reports proof
that business can be a woman’s world, too. The Ambassador for women drive should endorse in
such way that all women’s inspire of financial or non-financial constraints should reach the
scheme centre for support.

REFERENCES
 Ministry of Statistics and Programme Implementation, “Highlights of the Sixth Economic
Consensus”, 2014.
 Sabrina Korreck, “Women Entrepreneurs in India: What is Holding Them Back?”, ORF
Issue Brief No. 317, September 2019, Observer Research Foundation.
 Sabrina Korreck, “The Indian Startup Ecosystem: Drivers, Challenges and Pillars of
Support”, Observer Research Foundation Occasional Paper No. 210, September 2019.

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