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COACHING CENTRE
Near Car Plaza
K.P Road Anantnag

Entrepreneurship
For Class 11TH
BY
SHAFI SIR
{M.COM(K.U)}
(KU Entrance Topper)

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UNIT .1

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Topic 1:Introduction of Entrepreneurship:

Entrepreneurship may be defined as the visualization and realization of new ideas by insightful
individuals, who are able to use information and mobilize resources to implement their vision.
Entrepreneurship is the ability (i,e knowledge and skills) of a person to translate ideas of
commencing a business unit into reality by setting up a business on ground to serve the needs of
society and the nation ,in the hope of profits.
The concept of entrepreneurship can be understood properly by the below given diagram.

Entrepreneur:
Entrepreneur is a person responsible for setting up a business or an enterprise. He has the
significant skill, creativeness and innovative mindset by which he looks for higher
achievements. He is a catalytic agent of change and works for the good of people.He doesn’t
wait opportunities to come his way rather he goes out and search for attractive opportunities
__identify them, explore them and then exploit them in a most creative manner.

Entrepreneurship:
Entrepreneurship is the process of designing, launching and running a business efficiently
and effectively. It is the ability and quality of an entrepreneur to identify an investment
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opportunity and to organize an enterprise in order to contribute for the real economic growth. It
is an attempt to create value through identification of business opportunity by mobilizing _
human, financial and material resources. Entrepreneurship is an economic activity done to
create, develop and maintain a profit-oriented business. It begins with identifying an
opportunity as a potential to sell and make profit in the market.

Enterprise:
Enterprise is the outcome or result of entrepreneurship process performed by an entrepreneur.
An enterprise is a business organization that is formed which provides goods and services,
create jobs, enhancing national income thus contributing to the sustainable economic
development.

Topic2: Definitions of Entrepreneurship?

 Adam Smith: An individual, who undertakes the formation of an organization for
commercial purposes by recognizing the potential demand for goods and services, and
there by acts as an economic agent and transforms demand into supply.
 Joseph Schumpter: Entrepreneurs are innovators, who use the process of
entrepreneurship to shatter the status quo of the existing products and services, to set new
products, new services. He describes entrepreneurs as innovators.
 Richard Cantillon: As a person, who pays a certain price to a product to resell it at
an uncertain price, thereby making decisions about obtaining and using the resources
while consequently admitting the risk of enterprise.
Finally, entrepreneurship can be understood as, “An economic process where an idea is
generated or an opportunity is created, refined, developed and implemented, while exposed to
uncertainty to realize a profit by effective utilization of resources”.

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Topic3: Characteristics or features of

Entrepreneurship?
The following are the characteristics of entrepreneurship :
1. Economic activity : The concept of entrepreneurship is based on the philosophy of
feeling and recognizing of customers needs and wants and satisfying them at profit. Hence
entrepreneurship is an economic activity.
2. Innovation : Entrepreneurship is an innovative process. It brings a new product in the
market, uses new production technology, discovers new source of raw materials and opens a
new market for the specific product. In view of changing taste of consumers from time to time,
entrepreneurs uses research and development techniques to produce such goods and services
which satisfies the consumer in best possible manner.
3. Creative activity : Entrepreneurship believes in the thought of satisfying the customers
in different and distinct way. Introducing creativity in producing some new is a big challenge
for the entrepreneur. Thus creativity is an essential part of entrepreneurship.
4. Organization building : It is an activity where various factors of production have to be
organized. Different factors like place utility, time utility, form utility, etc. has to be considered
to collect them under one roof for new production.
5. Managerial skill and leadership : Leadership and managerial skills are the most
important facts of entrepreneurship. Other skills can be considered secondary. An entrepreneur
must have the ability to lead and manage.
6. Risk bearing : Entrepreneur is an agent who buys factors of production at certain prices.
In order to combine them into a product, to sell them at uncertain prices in future. Thus they too
are risk-bearing agents of production.

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Topic 4: Functions of Entrepreneur.

Topic 5: Sensing of Entrepreneurial Opportunity:

Meaning ,Objectives and importance:

Meaning:

A. Entrepreneurial functions:
(a) Innovation: It is the basic function of an entrepreneur. As an innovator, the
entrepreneur has to introduce new combinations of the means of production, new
product, new market for a product and new sources of raw material.

(b) Risk-taking: It refers to taking responsibility for a loss that may occur due to
unforeseen contingencies in the future. He/she is a self-confident and highly
optimistic person, willing to assume the risks

(c) Organization Building: Organization and management are the main functions
of an entrepreneur. They refer to the bringing together of the various factors of
production. The purpose is to allocate the productive resources in order to minimize
losses and reduce costs in production.
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B. Promotional functions:
(a) Discovery of an idea: The entrepreneur visualizes that there are opportunities for
a particular type of business and it can be profitably run. The idea may be to exploit
new areas of natural resources, more profitable venture, or an existing line of
business.

(b) Detailed Investigation: Entrepreneur makes a detailed investigation in order to

determine the prospective demand of the market. The analysis of market is done in
such a way that the products produced are in line with the customers’ expectations.

(c) Assembling the Requirements: After making sure that the proposition is practical
and profitable, the entrepreneur proceeds to assemble the requirements. The
entrepreneur selects the factory site, decides about plant and machinery and contacts
suppliers of raw materials etc.

(d) Financing the Proposition: The entrepreneur decides about the capital structure of
the enterprise. The requirements of finances are estimated first, then the sources from
which money will come up are determined.

C. Managerial functions:
(a) Planning: Planning is concerned with the mental state of the entrepreneur. It is
decision making in advance: what to do, when to do, how to do and who will do a
particular task.

(b) Organizing: The function of organising is to arrange guide, co-ordinate, direct and
control the activities of the factors of production.

(c) Staffing: It is concerned with the human resources of an enterprise. It consists of

human resources, manpower planning, recruitment, selection and placement of
manpower, human resource development, promotion, transfer, appraisal and
determination of employee’s remuneration.

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(d) Directing: It is concerned with carrying out the desired plans. It initiates organised
and planned action, and ensures effective performance by subordinates towards the
accomplishment of group activities.

(e) Leadership & Communication: Leadership is the ability to build up confidence

and zeal among the people and to create urge in them to be led. Communication
refers to the exchange of ideas, feelings, emotions, knowledge and information
between two or more persons.

(f) Motivation: It is the psychological process of creating an urge among the

subordinates to do certain things or behave in the desired manner.

(g) Co-ordination: It is the process of bringing of harmony in the organization such

that team work and better order is maintained.

(h) Controlling: Control is the process which enables the entrepreneur to get his/her
company’s policies implemented and take corrective action if performance is not
according to the predetermined standards.

D. Commercial Functions :
(a) Production: It is the key function of an entrepreneur. The activities of
production are independent of the size of the undertaking. It is the creation
of goods and services. It consists of manufacturing, ancillary and advisory activities.

(b) Finance: It is the most important function of an enterprise. Finance function deals
with the estimating of financial requirements ,deciding the capital structure , selecting
the source of capital, pattern of investment etc.

(c) Marketing: It is primarily concerned with the movement of goods and services from
the producer to the ultimate consumer. It is directed towards the satisfaction of
consumer wants.

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(d) Personnel: This function is concerned with employment, development and

compensation for the personnel, the provisions of working conditions and welfare
measures to maintain a good work force in the organisation.

(e) Accounting: It is defined as a systematic recording of entrepreneurial transactions of

an enterprise and the financial position of the enterprises. The entrepreneur should
look into the record keeping of the entries of all transactions which take place in the
organisation so that he/she is aware of his/her financial position.

Topic 5: Need and Importance of Entrepreneurship:

The need for the entrepreneurship in an economy is highlighted below:

(1)Life-line of a Nation: No country can progress without the development of

entrepreneurship. Every country is trying to promote its trade so that it is able to share the
benefits of development. Therefore, entrepreneurship is the yardstick to measure the level of
development of a country.

(2) Provides Innovation: Entrepreneurship provides new ideas, imagination and vision
to the enterprise. An entrepreneur is an innovator as he tries to find new technology, products
and markets. He increases the productivity of various resources. The entrepreneur stands at the
centre of the whole process of economic development. He conceives business ideas and puts
them into effect, to enhance the process of economic development.

(3) Change of growth /Inclusive growth: An enterprise operates in a changing

environment. The entrepreneur moulds the enterprise in such a changing environment. The
latter moulds not only the enterprise, but also alters the environment itself, to ensure the success
of the enterprise. In order to meet the challenge of automation and the complexities of advanced
technology, there is a need for the development of entrepreneurship.

(4) Increased profits: Profits can be increased in any enterprise, either by increasing the
sales revenue or reducing cost. To increase the sales revenue is beyond the control of an
enterprise. Entrepreneurship, by reducing costs, increases its profits and provides opportunities
for future growth and development.
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(5) Employment opportunities: Entrepreneurship and its activities provide the

maximum employment potential. Large numbers of persons are employed in entrepreneurial
activities in the country. The growths in these activities bring more and more employment
opportunities.

(6) Social Benefits: It is not only beneficial to the business enterprise, but to the society at
large. It raises the standard of living by providing good quality products and services at the
lowest possible cost. It also makes the optimum use of scarce resources and promotes peace and
prosperity in the society.

Topic 6: Role of Entrepreneurship in economic

development:
1. Capital Formation: Entrepreneurs mobilize the idle savings of the public through the
issues of industrial securities. Investment of public savings in industry results in productive
utilization of national resources. Rate of capital formation increases which is essential for
rapid economic growth. Thus, an entrepreneur is the creator of wealth.
2. Improvement in Per Capita Income: Entrepreneurs locate and exploit
opportunities. They convert the latent and idle resources like land, labour and capital into
national income and wealth in the form of goods and services. They help to increase net
national product and per capita income in the country, which are important yardsticks for
measuring economic growth.
3. Generation of Employment: Entrepreneurship and its operations generate the
greatest number of job openings. Entrepreneurs generate employment both directly and
indirectly. Directly, self-employment as an entrepreneur offers the best way for independent
and honorable life. Indirectly, by setting up large and small scale business units they offer
jobs to millions. Thus, entrepreneurship helps to reduce the unemployment problem in the
country.
4. Balanced Regional Development: Entrepreneurs in the public and private
sectors help to remove regional disparities in economic development. They set up industries
in backward areas to avail various concessions and subsidies offered by the central and state
governments.

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5. Improvement in Living Standards: Entrepreneurs set up industries which

remove scarcity of essential commodities and introduce new products. Production of goods on
mass scale and manufacture of handicrafts, etc., in the small scale sector help to improve the
standards of life of a common man. These offer goods at lower costs and increase variety in
consumption.
6. Economic Independence: Entrepreneurship is essential for national self-reliance.
Industrialists help to manufacture indigenous substitutes of hitherto imported products thereby
reducing dependence on foreign countries. Businessmen also export goods and services on a
large scale and thereby earn the scarce foreign exchange for the country. Such import
substitution and export promotion help to ensure the economic independence of the country
without which political independence has little meaning.

Topic 7:Barriers of Entrepreneurship- Economical

& Techonological:

(A) Economical Barriers:The economic environment is the sum total of

the economic conditions and the nature of economy in which the business has to
operate and compete. These barriers influence the entrepreneurship in the great extent
.These are as:

(1) Economic Condition: The general economic conditions prevailing in the country
i,e. national income, per capita income ,economic resources ,distribution of income
, business cycle, economic growth etc. of the country are crucial factors affecting
the entrepreneurship environment in the economy.

(2) Economic System: The economic system operating in the country also affects the
business enterprise . the economic system of a country may be capitalist, socialist,
communist or mixed one. The systems have a separate affect on the economic

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activities of an economy such as production , consumption, selling and exchange ,

earning and spending etc.

(3) Economic planning: Economic Planning is the system of utilizing the country’s
capital and human resources according to national priorities. The GOI has set up
Planning Commission in 1950 for ensuring growth and development in the
economy.

(4) Economic Infrastructure: Economic Infrastructure includes provision for roads

,railways, telecommunication , and availability of ancillary business houses etc. for
having a smooth execution of business operations.

(5) Capital & Labour: These are the most significant factors of production. The easy
availability of these resources plays a vital role in having the normal course of
business.

(B) Technological Barriers: Following are the main technological

barriers:

(1) Selection Of right technology: One of the biggest challenge is the selection of
most feasible technology in order to have the sustainable competitive advantage
over the rivals.

(2) Employee Frustration: The technology which an organization wants to choose

for getting the desired level of output might get rejection from employee because
they may not like to change their status quo or they may not be able to understand
the know how of technology.

(3) Security issues: It is not easy to deal with cyber security issues . Maintaining the
security of technology is a very critical job.

(4) Staying up to date with technology: It is a large barrier for entrepreneurs to stay
up to date with technology as the environment keeps on changing thus the
technology needs to be updated with the passage of time.
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(5) Requires adequate education,training and skills: Implementation of a given

technology requires the workers to be equipped with a required knowledge ,skill
and training. Thus operating a particular technology is not every body’s cup of tea.

UNIT .2
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Topic 8:Meaning and characteristics of

entrepreneures:
Definition & Meaning:
Joseph A Schumpeter defines an entrepreneur as “one who innovates, raises money,
assembles inputs and sets the organization going with the ability to identify them and
opportunities, which others are not able to fulfil such economic opportunities”. He further
said, “An entrepreneur is an innovator playing the role of a dynamic businessman adding
material growth to economic development”.

Entrepreneurs are business people who can detect and sense the availability of business
opportunities in any given scenario. They will utilize these opportunities to create new products
by employing new production methods in different markets. They will also function in different
ways by using various resources who will give them profit. It is important to note that although
most entrepreneurial businesses start small, the owners of such businesses need not be small
scale owners. They could in fact be big business owners, who first try and test the waters before
investing big time in the business. Small business owners dread risk, but successful
entrepreneurs are very innovative and know how to operate profitably in a business
environment, even if the risk is very high.

In fact, innovation is the life blood of any kind of entrepreneurs; this is one of the tools that
helps them gain competitive advantage over established players in the market. Entrepreneurs
are, thus, defined as ―individuals or groups of individuals who carry out entrepreneurship
activities that are based on their innovative approaches to solving real-word problems.

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Topic.9: Characteristics / Features of

Entrepreneurs?

Following are the main characteristics of an entrepreneur:

(A) Innovative:- Innovation means creating something new or enhancing value of some
exiting product. Innovation is the basic feature of an entrepreneur. As an innovator,
entrepreneur has to introduce new products, create new markets, apply new processes of
production, discover of new and better source of raw-materials etc.
(B) Risk Taker: Risk means Variability in expected return. Starting a new enterprise
always involves risk and trying to do something new and in different manner is also risky.
A successful entrepreneur is bestowed with the risk bearing ability. Thus, entrepreneur is
risk taker instead of risk averse.

(C) Initiative: One of the most fundamental competencies required for the entrepreneurs
is the ability to take initiative. An entrepreneur has to be keen observer of the society, the
commercial trends, the product types, the change dynamics and the consumer trends.

(D) Vision and Foresight: Entrepreneur is one who has eye on long run instead of
restricting to short run. He focuses on long run and devise the potential strategies in order
to get the sustainable competitive advantage over the rivals.

(E) Leadership:An entrepreneur has to issue orders and instructions and counsel his sub-
ordinates in their work with a view to improve their performance and achieve
predetermined objectives.

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Topic.10: Types of Entrepreneurs?

(A) According to type of Business :
1. Business Entrepreneur: Business entrepreneurs are those who develop an idea for a
new product or service and then establish an enterprise to materialise their idea into reality.
Most of the entrepreneurs belong to this category because majority of entrepreneurs are found
in the field of small trading and manufacturing concerns.
2. Trading Entrepreneur: Trading Entrepreneurs procures finished products from
manufacturers and sells these to customers either directly or through middlemen such as
wholesalers, dealers, and retailers. These middlemen act as a link between the manufacturer and
customer
3. Industrial Entrepreneur: Industrial entrepreneurs essentially manufacture products and
offer services, which have an effective demand in the marketing. They have the ability to
convert economic resources and technology into a profitable venture.
For example: Enterprises like Hero Motorcorp and Hyundai Corporation.
4. Corporate Entrepreneur: Corporate Entrepreneurs are those who through their innovative
ideas and skill able to organise, manage and control a corporate undertaking very effectively
and efficiently. Usually, they are promoters of the undertakings/corporations, engaged in
business, trade or industry.
5. Agricultural Entrepreneur: Agricultural entrepreneurs are those who undertake
agricultural as well as allied activities in the field of agriculture. They engage in raising and
marketing of crops, fertilisers and other inputs of agriculture through employment of modern
techniques, machines and irrigation.

(B) According to Motivation :

(1)Pure Entrepreneur: They believe in their own performance while undertaking
business activities. They undertake business ventures for their personal satisfaction, status and
ego. They are guided by the motive of profit. For example, Dhirubhai Ambani of Reliance
Group.

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(2) Induced Entrepreneur: He is induced to take up an entrepreneurial activity with a

view to avail some benefits from the government. These benefits are in the form of assistance,
incentives, subsidies, concessions and infrastructures.

(3)Spontaneous Entrepreneur: They are motivated by their desire for self-

employment and to achieve or prove their excellence in job performance. They are natural
entrepreneurs, as they start their business out of their natural talents. They are the persons with
initiative, boldness and confidence which motivate them to undertake entrepreneurial activity.

C. According to Danhof :
1. Innovative Entrepreneur:These are the entrepreneurs who come up with new
ideas , turns them into viable business and find new ways to market the products that make their
business stand out from the crowd and sometimes create a new crowd. Examples are Steve Jobs
and Bill Gates.

2. Imitative Entrepreneur: There is a second group, generally referred as imitative

entrepreneurs. They usually copy or adopt suitable innovations made by innovative
entrepreneurs. They are adaptive and more flexible. Example: The local mobile companies
using the same technology as big companies to manufacture their products.

3. Fabian Entrepreneurs: The third type are the Fabian Entrepreneurs. Such
entrepreneurs are very shy and lazy. They are very cautious. They do not venture or take risks.
They are rigid and fundamental in their approach. They are not too interested in taking risks or
changes and they try to follow the beaten track created by their predecessors.

4. Drone Entrepreneurs: The fourth type is the Drone Entrepreneurs, who refuse to
copy or use opportunities that come their way. They are conventional in their approach. They
are not ready to make changes in their existing production methods even if they suffer losses.
They resist changes. They may be termed as laggards.

D According to size of Enterprise:

1. Micro Entrepreneurs : An entrepreneur who has made investment in plant and
machinery upto 25 lacs is called micro entrepreneur

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2. Small-Scale Entrepreneurs: An entrepreneur who has made investment in plant and

machinery more than 25 lacs but does not exceeds 5 crore is called small scale entrepreneur
3. Medium-Scale Entrepreneurs: An entrepreneur who has made investment in plant
and machinery more than 5 crore but does not exceeds 10 crore is called medium scale
entrepreneur
4. Large-Scale Entrepreneurs: An entrepreneur who has made investment in plant and
machinery more than 10 crore is called large scale entrepreneur

Topic.11: Difference between Entrepreneur and

Intrapreneur?

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Topic.12: Difference between Entrepreneur and

Manager?

Topic.12: Meaning of women Entrepreneurship?

 Definition:
 “An enterprise owned and controlled by woman having a minimum financial
interest of 51% of the capital and giving at least 51% employment generated to
women”By Government of India ,
 “Women who innovate initiate or adopt business actively are called women
entrepreneurs.” -J.Schumpeter.

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 “Women entrepreneurship is based on women participation in equity and

employment of a business enterprise.” -Ruhani J. Alice.
 Concept: Women entrepreneurship is the process in which women initiate a business,
gather all resources, undertake risks, face challenges, provides employment to others and
manages the business independently. Women Entrepreneurship refers to business or
organization started by a woman or group of women.A woman entrepreneur is therefore
a confident, creative and innovative woman desiring economic independence
individually and simultaneously creating employment opportunities for others.

Topic.13: Characteristics of women Entrepreneurs?

Following are main characteristics of women entrepreneurs:

(1) Self-confident and bold: Self-confidence is one of the most important characteristics for a
successful life. A confident woman has tremendous faith in herself and her abilities. She can
easily respond to the changes in the consumer market and succeed in her business.

(2) Assertiveness and decision making: A successful woman entrepreneur takes various
decisions on various activities of her enterprise with assertiveness. She takes firm decisions on
the type of venture she undertakes and the way of doing / handling it. She is clear, creative and
assertive in her decision making.

(3) Work-life balance: She can efficiently cope up with the stress levels in a better way by
spending value time with her children, spouse and family members. She very well knows how
to balance her work-life which is one of the keys to successful business. She makes time to
spend with her children and supports them in every possible way without any excuses of busy
work life.
(4) Persistence: Women entrepreneurs must have an intention to fulfil their dreams. They have
to make a dream translated into an enterprise. Studies show that successful women have worked
hard. They persisted in getting loan from financial institutions and other inputs. They have
persisted in adverse circumstances and in adversity.

(5) Ability and Desire to Take Risk: The desire refers to the willingness to take risk and
ability to the proficiency in planning, making forecast, estimates and calculations. Profits are
the reward of risk. Enterprising women take risk but the risk is well calculated.

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(6) Build and develop their networks: One of the most prominent characteristics of a
successful woman entrepreneur is she is keen on meeting new people and thus tries to grow her
business contacts. She readily socializes with people whom she thinks are useful in developing
her business. She is a good relationship builder and develops mutually beneficial relationship in
the society.

(7) Goal oriented: Most of the successful business women set targeted goals in spite of their
family responsibilities. They work hard for achieving their set goal/s. Women who are goal
oriented, work harder and succeed in her business.
(8) Good Organiser: The most critical skill required for industrial development is the ability
of building a sound organization. A women entrepreneur assembles , co-ordinates , organizes
and manages the other factors namely land, labour and capital. She obtains factors of production
from the society and supplies them finished goods.

Topic.14: Role of women Entrepreneurs?

1.Contribution in Economic Development:- The contribution of the women in
the field of economic development is very important for the participation of women in
industries has improved not only economic condition of their family but also help in economic
progress of the country.

2.Problem of Unemployment:- In India there is a problem of unemployment which

in the main of poverty. Women Entrepreneurship has played an important role in eradication of
problem of unemployment. Several women. Entrepreneurs have established industrial unit
which has provided employment to unemployment person. This has reduced the problem of
employment large extent.

3. Eradication of the social evils:- There are many social evils existing in the
society due to women suppress . Various social evils like, child marriage prohibited widow
marriage, dowry system, female feticides, illiteracy among the girl child are showing declining
trend due to women entrepreneurship. On observing the status of women entrepreneurship
women started various trades, by ignoring old customs, rituals restrictions on them.

4.Self-dependence:- Traditionally women are dependent for their money matters and
family decisions, on men. But due to entrance of women entrepreneurs in the industrial sector

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they have achieved self dependence. It had increased their social status and self confidence.
Now they are not subordinate of men but they play role of colleagues.

5. Building self confidence:- Women entrepreneurship has helped to a large extent in

boosting the self confidence and enthusiasm among women.Women Entrepreneurship creates a
quality of leadership and encourages women to take lead in different areas.

6. Role Model for others: Women entrepreneurs has acted as symbolic role models and
mentors , setting examples and providing valuable guidance for other aspiring women
entrepreneurs.

Topic.15: Problem of women Entrepreneurs?

Women entrepreneurs, unlike men entrepreneurs, face certain specific problems in their
business. These problems are as follows:

1) Low Risk-Taking Ability: Risk-taking is an essential requisite of a successful

entrepreneurship. But women entrepreneurs have a low ability to bear economic and other risks.
Inferiority complex, low education, unplanned but protected growth, lack of infrastructure etc.
are the main factors for their low ability to take or bear risks.

2) Lack of Self-Confidence: Women entrepreneurs generally lack self-confidence in

doing anything independently, particularly in India. They hesitate to take risks. They are
conservative in their outlook. The public in general look women entrepreneurs with suspicion
and they do not support nor encourage them.

3) Lack of Entrepreneurial Aptitude: Women generally lack entrepreneurial

aptitude. They lack any entrepreneurial bent of mind as well as entrepreneurial creativity,
motivation, behaviour etc.

4) Lack of Mobility: Women, particularly in India, lack mobility. In other words, their
mobility is highly limited due to social restrictions . Women cannot travel alone freely and
safely nor can they deal courageously with male officers who always try to humiliate women,
when approached for any official or business work. Travelling is also not possible and feasible
for women entrepreneurs. Thus the mobility of women entrepreneurs is very limited,
particularly in India.

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5) Family Problem: In India, it is mainly the duty of a woman to look after her children
and other elderly or old members of the family. Lot of time and energy will have to be used by
the woman in looking after her family affairs. Therefore, her involvement in family affairs
leaves little time and energy for fulfilling their dream of business and self reliance.

6) Male-Dominated Society: Ours is a male-dominated society. Our constitution

speaks of equality between men and women, but in reality women are not treated equal to men.
Women are looked down upon as weak and incapable in all respects. Women suffer from male
reservations about their role, ability and capacity. Such an attitude of men towards women acts
as a great barrier to women’s entry into business.

7) Social Attitudes: The biggest problem faced by the women entrepreneurs is the
problem of social attitudes towards women and the constraints in which women entrepreneurs
live and work. It is believed that the skill imparted in a girl is lost when she matures . Hence,
girls, though having entrepreneurial talent, continue to be helpless in fulfilling their own
business dream and hence their dreams remains mere dreams till their ultimate death.

8) Lack of Education: In India, women are less educated and therefore, they are not
aware of the business technology and market knowledge. Nearly 48 percent of women in India
are still illiterate as per 2001 census. Therefore, lack of education creators problems for women
in setting up and running business enterprises.

9) High Cost of Production: Another problem faced by the women entrepreneurs is

the high cost of production, which undermines the efficiency and restricts the development of
entrepreneurship among the woman. Women entrepreneurs s face certain problems such as
problems of human resources, infrastructure, legal formalities,non-availability of raw material
etc.

10) Low Need for Achievement: Need for high achievement, independence,
autonomy and freedom are the pre-requisites for success in entrepreneurship. But women, by
nature prefer to grow under some assured shelter and glory of their family members. They have
got some pre-conceived notions about their role in life and this attitude of women inhibits their
achievements.

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Topic.15: Measures / Remedies to Solve the Problems of

Women Entrepreneurs:
The following steps may be adopted to solve the problems of the women entrepreneurs:

1) Finance Cells: In various financial institutions and banks, special finance cells should
be opened for providing easy finance to women entrepreneurs. The finance cells should provide
to women entrepreneurs at low rates of interest and on easy repayment basis.

2) Marketing Co-Operatives: Women entrepreneurs should be encouraged and given

all assistance for setting up marketing cooperatives. The Government and semi-government
bodies should give highest preference to such women’s marketing cooperatives while making
their purchases. Such cooperatives will be able to eliminate the middlemen while making their
purchases of inputs and selling their products at remunerative prices.

3) Supply of Raw Materials and Other Inputs: The government should make
necessary arrangements for the supply of scarce and imported raw materials and other inputs
required by the women entrepreneurs. The government should also give subsidy to the women
entrepreneurs to make their products cost- competitive and sell them at competitive prices.

4) Education and Awareness: Intensive educational and awareness programmes

should be arranged so as to change the negative or unfavourable attitudes towards women.The
social attitudes of people should be made positive so as to enable the women entrepreneurs to
achieve progress in their venture.

5) Training Facilities: Training and skill development are quite essential for
development of entrepreneurs. Special training schemes should be designed so as to suit the
women entrepreneurs so as to create self-confidence in their mind about the success of their
entrepreneurship.

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