T0PIC – WOMEN AS EMERGING

ENTREPRENEURS IN INDIA

SUBMITTED BY SUBMITTED TO
Sandipana Usha Amulya Mam
[BBA LLB(HONS)]

ABSTRACT
Indian women have increased their participation in entrepreneurship
during the past 20 years. They have aided in the development of their
companies and the economy and society of India. These female
business owners work in a variety of fields. Despite the fact that both
men and women go through the same three stages of the
entrepreneurial process—creating, nurturing, and nourishing—in
actuality, women encounter issues that are larger and more complex
due to social and cultural factors. Women's participation in the sector
is also affected by the widespread gender discrimination that
frequently exists at all levels in many countries, and a confluence of
psychological, social, economic, and educational variables serve as
barriers to female entrepreneurs breaking into the mainstream.
Despite the fact that many of the early barriers to their achievement
have been removed, some still exist. In addition, there has been
significant advancement in academic and public policy programmes
for the training and development of female entrepreneurs. In this
paper, we look at questions like: Why do women become
entrepreneurs in India? What distinguishes Indian women business
owners and their enterprises? What have been the biggest barriers and
difficulties for Indian women business owners?

[keywords: Gender discrimination, Psychology, Economic,

Education, Entrepreneurs]

INTRODUCTION

As the global market is growing rapidly women’s, are also emerging

as growing entrepreneur’s. India being developing economy day by
day new entrepreneur’s are coming up with their new ideas and start
up’s. Women entrepreneurship is the process in which women initiate
a business, gather all resources, undertake risks, face lot of challenges
provide employment to others and manages the business
independently approximately 1/3rd of the entrepreneurs in the world
are women entrepreneurs. Some interesting statistics on female
entrepreneur in India. About 58% of the female entrepreneur were in
the age range of 20-30 when they started out. Nearly 73% of them
report revenue of approximately RS.10 Lakhs in a financial year.
Almost 57% of these women started out solo, i.e, without any other
member. About 35% of the women had a co-founder. Roughly 71%
of the Indian female entrepreneurs employ five people or less. In a
country like India where most women aren’t encouraged to think big ,
there are some who have soared higher than one would expect in a
constrictive setup.

The Emergence of Women Entrepreneur as an Economic Force In

India

Indian women have significantly increased their participation in

entrepreneurship during the past 20 years. They have benefited their
local communities and the global economy through the emergence
and expansion of their businesses. Women have entered business
leadership positions through a variety of paths. But while starting
their enterprises, the majority of women company entrepreneurs
overcame or made an effort to avoid hurdles and obstacles. The
employment and business settings are greatly impacted by the
presence of women in the workforce leading small and
entrepreneurial enterprises.

Indian women entrepreneurs are literally and symbolically altering the

way that businesses look today. One of the defining trends of the last
ten years has been the dramatic rise and expansion of women-owned
businesses, and all signs point to this trend continuing unabatedly.
The number of women-owned enterprises has increased at a rate that
is 1.5–2 times faster than that of all firms for more than a decade.
More significantly, employment and revenue growth have both
outpaced population growth by a significant margin.

These trends have led to an increase in the number of women-owned

businesses across the board, regardless of the metric used to gauge
success—revenue, employment, or longevity. The argument that all
government initiatives should support women's business in their home
countries is strengthened by this. Some of the earlier barriers to
women's commercial success have been removed, despite the fact that
many of them have already been done so. This has inspired
researchers in entrepreneurship and small enterprises to examine the
determinants and effects on female company ownership. These
research studies are becoming more prevalent over time.1

Why do women become entrepreneurs in India?

It is commonly known that there are less female business owners in
India than there are male business owners. Studies and surveys,
however, show that India's female entrepreneurs lag behind those in
other nations in the global economy. There is still more work to be

1
Arkja Singh IFTM University, The Emergence of Women Entrepreneur as an Economic Force in India -
Hurdles & Dénouements,
https://www.researchgate.net/publication/334536672_The_Emergence_of_Women_Entrepreneur_as_an_Econo
mic_Force_in_India_-_Hurdles_Denouements, (march 2011)
done, even though the Indian population's shifting perspective has
produced encouraging outcomes.
As can be seen, India is far behind the United States, Canada, and
Australia in terms of rankings, as well as behind Uganda, Ghana, and
Tunisia. It even falls short of the 20-point threshold with a score of
17, which only puts it ahead of its neighbours Pakistan and
Bangladesh. There is much that needs to be done in India to improve
the situation of women entrepreneurs. The question that emerges here
is why Indian women entrepreneurs are lagging behind the rest of the
world.
The issue can be understood in the way that follows:
Our Society: The fact that India's attitude toward women is changing
does not change the fact that it is still primarily a patriarchal country.
This poses difficulties for female business owners. For instance,
entrepreneurship demands strong skills to market the business, and
many women find it difficult to do so because they are susceptible to
the stereotype that women must prioritise the needs of others over
their own.
Lack of support: Like male entrepreneurs, women require help with
company planning and financial arrangements because these are areas
they are not often exposed to. When a woman's small business starts
to grow, the time comes when she must lay out a precise plan for how
her ideal firm would operate. In addition, family support is another
essential element. Women must prioritise their time and attention
between their work and families, according to one of our social
principles.
Funding: - To avoid sounding contradictory, Indian women take safer
risks than men do. Instead of choosing an investment that would be
considered overconfident, they choose to make investments just to the
extent that they can be easily repaid. As a result, the majority of them
decided to finance their businesses independently using their savings.
However, the contemporary environment suggests that they should
also anticipate investors, loans, and grants.
"India needs more women to start their own businesses. Males only
work for fashion e-commerce sites like Jabong and Myntra. India
needs more feminine sensitivity, in my opinion, which is absent at the
moment. In the US, there are several fashion commerce enterprises
with female co-founders. Kartik Hosanagar, a professor at the
Wharton Business School, made these remarks during an interview
with The Times of India.2

Challenges and Problems faced by Women Entrepreneurs in India

1. A prohibition against families

It is projected that women will spend more time with their families.
Women are not urged to travel widely to take advantage of business
prospects.
2
Divyaish Kumar Srivastava, Student, Shri Harish Chandra P.G. College, Varanasi, Why Do We Need More
Women Entrepreneurs In India, https://blog.ipleaders.in/need-women-entrepreneurs-india/ , March 25, 2016
2. A lack of funds
Family members do not support female business owners. They are
hesitant to put money into a venture started by a woman entrepreneur.
Banks and other financial institutions do not view Middle Class
Women Entrepreneurs as suitable candidates for setting up their
businesses, and they are reluctant to lend money to unmarried women
or girls because they are unsure of who will pay back the loan after
the couple gets married—their parents or in-laws. Unmarried women
feel humiliated by this and frequently abandon the goal of starting
their own businesses.
For exampl, Kiran Mazumdar Shaw initially had a lot of issues
getting the money for her firm. She was a woman entrepreneur, which
was an unusual occurrence, and biotechnology was a brand-new
industry at the time, so banks were unwilling to lend to her.
3. Education Deficit
Higher education is typically not available to women, particularly in
rural and developing nations. Women are not permitted to expand
their technical and research expertise in order to introduce new items.
4.Role Conflict
In Indian society, marriage and family are valued more highly than
careers and social lives.

5. A Negative Environment
Males predominate in society. Many businessmen are not keen on
doing business with female entrepreneurs. Males typically do not
support female business owners.
6. Lack of enduring In general, Nature Women are compassionate.
They are quite sensitive. Due to their nature, they shouldn't be
susceptible to business fraud.
7. Poor mental fortitude
Risk exists in business. When a company loss occurs, female
entrepreneurs become quite distressed very quickly.
8. A lack of knowledge
Most women business owners are unaware of the grants and
incentives that are available to them. They could be unable to take
advantage of the specific strategies due to ignorance.
9. Difficult Competitors
Men compete fiercely with women. Because of their limited mobility,
they struggle to compete with men.

10. Movement
In the Indian social system, navigating the market is once again a
difficult task for middle class women entrepreneurs.

Remedial Actions
The following are some corrective actions that can be made to
encourage women's entrepreneurship in India.
1. Marketing Assistance
Entrepreneurs need support from the government and NGOs in both
financial and non-financial sectors. 2. Training
Women entrepreneurs must be given training to operate and run a
business successfully. Training has to be given to women who are still
reluctant to take up the entrepreneurial task.

3. Selection of Machinery and Technology

Women require assistance in selection of machinery and technology.
Assistance must be provided to them in technical areas so that the
business unit become successful.

4. Finance
Finance is one of the major problems faced by women entrepreneurs.
Both family and government organizations should be liberal in
providing financial assistance to them.

5. Marketing Assistance
Due to limited mobility, women are unable to market their goods.
Assistance must be provided to help them to market their goods
successfully in the economic environment.

6. Family support
Family should support women entrepreneurs and encourage them to
establish and run business successfully.
3

The Problems Indian Women Entrepreneurs Face

The fact that they are not taken seriously has been one of the biggest
challenges for female entrepreneurs. The belief that women-owned
firms are less profitable, creditworthy, and inventive remains a barrier
even though women have established a reputation as competent
business owners in sectors like retail, personal services, and business
services.

In addition, women entrepreneurs encounter the following additional

difficulties:

1. Lack of Visibility as Strategic Leaders: Increasing the visibility of

women in leadership roles within the larger business community is
essential to changing attitudes about the likelihood of success for
women-owned enterprises. In a study of women's representation as
CEOs or directors of large corporations, it has been hypothesised that
the exodus of women to entrepreneurial growth firms may be due to
women's perceptions that they are more likely to hold strategic
leadership positions in privately held or family-owned businesses
because these businesses offer better opportunities for leadership than
publicly traded businesses do.

3
Top 10 Challenges & Problems faced by Women Entrepreneurs | Remedial Measures, Top 10 Challenges &
Problems faced by Women Entrepreneurs | Remedial Measures (accountlearning.com) , October 2014
2. Diverse Information and Assistance Needs: Many women company
owners have a strong need for the right information and assistance to
help their companies expand to the next stage. In a research to find
out what information women entrepreneurs needed, those who were
just starting out asked for help and training with putting their business
ideas into practise, finding their first sources of funding, and
advertising and promotion. The more established entrepreneurs had
slightly different requirements, such as capital for business expansion
and rising sales. Another research project had found the following ten
requirements for fast-growing entrepreneurs: Increasing the value of
the business, financing growth, hiring, training, and motivating for
growth, succeeding in a world that is changing quickly, successful
selling, managing sales forces, managing people successfully, and
avoiding problems and pitfalls associated with growth are just a few
of the topics covered. Unfortunately, these variations in information
and support demands exist across all cultural contexts.

3. Family Influences on Women Entrepreneurs: For women business

entrepreneurs, there is little crossover between the family and the
company. Sadly, not much research has been done on the dynamics
of family-owned businesses with female CEOs. Women who run
family companies have a special set of challenges relating to personal
identity, role conflict, loyalty, family connections, and attitudes
toward authority because the lines between the company and the
family are sometimes blurred. In addition, family enterprises run by
women are financially disadvantaged and are compelled to rely on
internal funding sources rather than external ones. Cross-cultural
studies that demonstrate how significantly a woman depends on her
family for start-up financing also highlight the crucial role that
families play in business.

The following actions must be taken in India to promote the growth of

women entrepreneurs:-
Three interconnected and interdependent clusters of recommendations
may be made with the intention of "pushing" more women
entrepreneurs toward growth possibilities, maximising their potential
as wealth and job creators, and creating a more hospitable legal and
regulatory environment. These suggestions can also guarantee that
"pull mechanisms" are positioned properly, allowing growth-oriented
female businesses to increase their investments, markets, and
earnings.
1.Setting priorities and promoting at the micro-level: Micro-
enterprises and the informal economy are home to a sizable and
seemingly ever-increasing number of women entrepreneurs. The
following steps can help them develop into huge, legitimately
registered, sustainable businesses: -
All entrepreneurial support programmes should be gender-analyzed.
Data on men and women entrepreneurs should be collected. Women
entrepreneurs should use "target group segmentation," and priority
categories should use targeted approaches to give women
entrepreneurs a "push" to the next stage of growth. Representative
associations should be encouraged to form and be mobilised.
Examining how different government programmes, policies, and
actions affect different groups of people. Supporting the creation of
demand-driven initiatives to help women entrepreneurs.
2. Unlocking and Unrestricting Institutional Framework: Policies,
rules, and the broader regulatory environment are frequently viewed
as obstacles to growth and development. They must be advertised,
nevertheless, so that female entrepreneurs understand the advantages
and rewards of compliance.
• Examining the effects of new and existing tools on women
entrepreneurs
Identification of the tools that impede development and growth,
modification or removal of these tools, and consideration of the social
and cultural circumstances that affect policy execution and address
inequities and anomalies.
• Using IT and associations to reduce the administrative difficulties
faced by female entrepreneurs.
• Holding monthly meetings with important parties, such as
associations for women entrepreneurs, financial institutions, etc., to
assess progress and spot any new roadblocks.
3. Projecting and Pulling to Grow and Support the Winners: The first
two sets of recommendations are meant to "push" more female
entrepreneurs into growth circumstances while also making sure that
rules and regulations do not get in the way of their success. The final
suggestion is to help and "drag" female businesses into circumstances
where they can actively pursue growth methods.
• Offering encouragement for growth and expansion after removing
obstacles and disincentives.
• Supporting and praising active representative organisations of
female entrepreneurs.
• Fostering close ties and collaboration with current main economic
players
Making full use of the data gathered to inform new policies,
programmes, and supportive actions. Ensuring synergies between (a)
women-related ministries (b) economic ministries (c) welfare & social
development ministries in the government. Profiling the economic
and social contributors among women entrepreneurs to the national
economy. Promoting and rewarding programmes that serve women
entrepreneurs.

Conclusion
More women throughout the world are starting and running successful
businesses thanks to increasing economic conditions, financial
opportunities, and suitable education and work experience. This will
affect not only the economies of the nations where women own
enterprises, but it will also alter the position of women in those
society. This century, as we enter the new millennium, is probably
going to be known as the century of the entrepreneur in general and of
the female entrepreneur in particular.4

4
Arkja Singh IFTM University, The Emergence of Women Entrepreneur as an Economic Force in India -
Hurdles & Dénouements,
https://www.researchgate.net/publication/334536672_The_Emergence_of_Women_Entrepreneur_as_an_Econo
mic_Force_in_India_-_Hurdles_Denouements, (march 2011)