Challenges and Problems faced by Women

Entrepreneurs in Tamil Nadu

Reshma P, Assistant Professor, Department of Management Studies, The American

College, Madurai

Sherene Alice J, II MBA, The American College, Madurai

James Ebenezer D, II MBA, The American College, Madurai

ABSTRACT:
Running a business enterprise, management and solving problems such as unforeseen risks
arising therefrom is something that comes to the minds of women entrepreneurs. Around three-fourths of
the start-ups in India are operated by women entrepreneurs. Women owned businesses have greatly
increased in the economies of virtually all countries and their hidden entrepreneurial potentials have also
shown transformation along with increasing awareness about her role and economic status in society.
Because of economic growth, increasing ease in education, urbanization, diffusion of liberal and
democratic culture as well as acceptance in society the levels of women entrepreneurship has been rising
fast. During the past few years, several projects such as Startup India, Tamil Nadu Women
Entrepreneurship Promotion (TNWEP), Tamil Nadu Women Entrepreneurs Development Corporation
(TNWEDCO), Tamil Nadu Rural Women’s Entrepreneurship Promotion (TNRWEP), Entrepreneurship
Development Institute of India (EDII).

In Tamil Nadu, many studies have been made in order to point out the problems faced by women
entrepreneurs of Coimbatore Thiruvallur Kancheepuram Erode and Trichy districts and research has
provided results that Social Institutional support was insufficient, funding prospects were poor lack

Women entrepreneurship is chained by the high-cost machineries etc. On the other hand,
financial support is said to be the biggest challenge.

In this research paper, the main issues that women entrepreneurs have to struggle with are
identified and appropriate solutions for the same

Keywords: Women Entrepreneur, Challenges, Prospects, Tamil Nadu

INTRODUCTION:

Women’s entrepreneurship has emerged as an issue in the past few years. Women’s leadership
skills, decisiveness and the ability to bring in new ideas for economic growth and social development are
highlighted. To some degree, women in corporate leadership have significantly been accepted and
recognized for their relevance over the years. However, over the last couple of decades there has been a
growing focus on women’s under-representation in entrepreneurship and economic leadership. They
continue to seek positions on the boards of major companies, and businesses owned by women remain
few in number. In India, women have made significant contributions towards the society but their
entrepreneurial abilities remain underutilized as they are in an inferior position in the social hierarchy.
Only

From the Fifth Five Year Plan (1974- 1978) has women's role been properly identified, with a
major shift in tactics of welfare of Women to the development and empowerment of women. It is
necessary to modify attitudes towards women for equal rights as specified in the constitution.
Opportunities and Challenges for Women Entrepreneurs in Tamil Nadu

Through entrepreneurship, the women in India provide a powerful economic empowerment place
for the women’s community and nation. Women empowerment in the society will promote economic
growth and development. The process of empowering women in order to meet their needs, makes
them conscious through education as a source; resources and opportunities are known as empowerment.
With their entrepreneurial spirit, women are getting more economically and emotionally empowered.
Women empowerment through entrepreneurship in Tamil Nadu: a study with special reference to rural
women entrepreneurs.
Women entrepreneurs are presented with various difficulties since they approach their business ventures
and until it has fully operated. A woman entrepreneur has a series of challenges for being a woman.
Indian

Women’s problems are connected with their duties to the family, society, and lion work.
Traditions, codes of behaviors, phenol sociocultural values, ethics as well as motherhood dominated by
ling husband and men and physical failures are seen to be quite particular problems for the Indian women
startup. Rural women will have to endure much more. Men resisted a lot. They are considered as helpers.
Society attitude towards her, as well as the limitations imposed in her life and work are discouraging.

Furthermore, the traditional Indian system differentiated between ‘Men’s work’ and ‘Women’s
work’, particularly that of housewives. It restricted women’s access in both traditional and alternative
fields of economic activity. However, the number of females seeking business careers has skyrocketed in
the past decade. Technology, globalization and increasing competition has made the corporate world
much more complex dynamism than it used to be. These factors highlight the importance of system
thinking, which provides a structure for finding the large picture and connections. (Challenges for women
entrepreneurs in India).
LITERATURE REVIEW:

1. Mr.T.Shunmugam , Mr.S.Kumar , Dr.S. Mookiah(published in 2019):

This study has a two-tiered research aim: to analyze the openings for Tamilnadu women
entrepreneurs and the barriers they face. Adopting a descriptive method, the team of researchers collected
information from various credible secondary sources like government records, census reports, literature
and published studies. The findings of the research indicate that gender discrimination is a widespread
phenomenon in an economic context, problems with equity capital funding and the immediate need for
women entrepreneurs to have strong support networks. Additionally, the study focuses on the situation of
deficient institutional support in Tamilnadu showing negative attitudes among women entrepreneurs and
recommending a change.

2. Anitha D. Pharm , Dr.R.Sritharan (published in 2013) :

This study looks at the changing nature of women’s roles in entrepreneurship, as more and more
women-owned businesses are established within various economies. The overall objectives for the study
are to analyze socio economic backgrounds of women entrepreneurs, identify motivational factors
affecting them, evaluate strengths and weaknesses, and suggest recommendations that will promote
women entrepreneurship. The study, limited to Erode

District and using a sampling design of 90 women entrepreneurs from different taluk. Their
findings that are obtained using tools such as personal interviews, secondary data analysis, percentage
analysis and Chi-Square tests can show challenges like lack of formidable leadership as well as financial
deficits. The socioeconomic background analysis includes important aspects such as age, education,
marital status, familial income level type of business and financing sources. The results of Chi-Square
analysis pointed out several meaningful links between age, education level, marital status, type of
business and sources of financing. The paper ends by providing thoughtful recommendations such as
regular training programs, zero interest loans, sensitization campaigns, support on joint stock companies,
promotion of women co-operative societies and establishment of industrial parks. In this sense, this
research provides an important contribution to the discussion on women empowerment and development
in the rural economy of India.

3. Ms.Sweety gupta , Ms. Aanchal Aggarwal :

The objectives of the study are not only to describe and discuss problems faced by women
entrepreneurs in the process of their ventures but also to investigate factors responsible for women
entrepreneurship development worldwide as well as to provide proposals aimed at improving situation
and prospects of women entrepreneurs in India. Though the article does not provide specific information
about sample size and design methodology, it refers to survey-based studies by Bowen & Hisrich (1986),
Cohoon et al. The findings are presented in two parts the problems faced by women entrepreneurs of
India and the factors that influence entrepreneurship in various countries. The study makes
recommendations at the end, emphasizing the central role of education, awareness, training programs and
government policies that can empower women entrepreneurship. In particular, the article offers a succinct
overview of some prominent female entrepreneurs in India and presents facts and figures resulting from
an IIT Delhi survey. But if detailed information about the sample size and design is needed, readers will
have to refer to the source material.

4. Aneesya Sharma and Avnish Sharma :

The focus of the research is placed on the transformation between women in society where, from
being homebound slaves, they become educated and talented economic contributors. According to the
authors, it is higher education, family support and social networks which appear to contribute in
cultivation of desire and ability among women entrepreneurs. In the paper, the issues of push factors such
as low job satisfaction and pull factors like freedom and competence are discussed affecting the female
enthusiasm for entrepreneurship. It suggests ways to boost women entrepreneurs by such actions as
constant encouragement, improving education and awareness, setting up training centers, altering
attitudes of society at large, and establishing assistance groups. The authors also introduce government
programs and schemes that promote women entrepreneurs in India. The paper ends with the recognition
of how women entrepreneurs are largely on the rise in India and that there is a need to continue
empowering them so as to ensure they get recognized for their contribution towards economic
development.

5. Dr.G.Jayammal :
The objectives were to determine the socio-economic status of women entrepreneurs, evaluate
their profitability and efficiency, as well as define peculiar difficulties they face in operation. The study
applied an Average Rank Analysis methodology obtaining primary data with the help of a questionnaire
filled in by 973 respondents from service, manufacturing and allied industrial units. Results showed that
finance was the most pressing concern, closely followed by sales, competition, raw materials supplies,
technical issues and labor-related challenges. The challenges that the women entrepreneurs faced were
socio- personal, managerial, production, marketing, financial difficulties as well as problems in terms of
government assistance and labor. Specifically, challenges such as product marketing problems, financial
limitations and labor issues were rampant. The paper also shows complicated female entrepreneur
problems, allowing policymakers and stakeholders to develop specific strategies and support systems in
creating an enabling environment for women businesses in Coimbatore District.

6. V. Sumathi and Dr. K. Gunasundari (published in 2016) :

The goals of the investigation are focused on determining and evaluating socio-economic
hardships, family issues and societal barriers that prevent women owned businesses from growing.
Women entrepreneurs in India, with details of characteristics and size of the sample not given. The
method is based on surveys and
questionnaires, which will be evaluated with the “Average Rank Analysis” for results of quantitative data.
Results of interviews with 973 respondents in service, manufacturing, and others including industrial
units demonstrate the complexity of issues faced by individuals such as family commitments, societal
influences, educational differences, financial limitations arising from gender inequality. The research
opens a window to the intricate topography of barriers confronted by women entrepreneurs in India,
providing insight into the socio-economic, cultural and systemic forces that influence their business
ventures.
7. A. Anandalakshmy and S. Ashok Kumar (published in 2018) :
The focus of the study is on identifying and analyzing social-economic roadblocks, family
problems, and societal barriers that stunt women owned business development. Women entrepreneurs in
India form the sample, and specific features regarding its size and scope are not given. The methodology
under consideration includes surveys or questionnaires employing the “Average Rank Analysis” to
analyze quantitative information. Results from 973 respondents in service, manufacturing and allied
industrial units reveal that diverse challenges inflect including family obligations, cultural beliefs,
educational disparities, financial constraints and gender biases. The paper unravels the intricate terrain of
obstacles that women entrepreneurs’ encounter in India, and reveals significant socio- economic, cultural
and systemic factors influencing their business ventures.

8. MS. Lavanya .V, DR. S. Chitra ( published in 2020) :

The purpose for the study is to discover and analyze the social-economic hurdles, family issues
and societal barriers that impede growth of women’s business in India. Though the sample size and range
are not mentioned, the study centers on 973 respondents of service, manufacturing, and allied industrial
units. This research utilizes surveys or questionnaires and engages "Average Rank Analysis" for
quantitative assessment of the challenges facing women entrepreneurs such as family responsibilities,
cultural beliefs, educational differences, financial costs, and gender biases. The results reveal the intricate
maze of challenges that are laid on Indian women entrepreneurs which highlights crucial socio-
economic, cultural and systematic factors influencing their business undertakings. For policymakers,
support organizations and the larger entrepreneurial community, this holistic understanding provides
invaluable insight for participating actively in the discourse designed to create favorable conditions for
women’s entrepreneurial success in India.

Problems Faced:

1. Fewer sectors are Women friendly

Although gender equality policies and practices are in place, the sector of India’s
entrepreneurship is still managed by men. As per the latest research, most women-owned ventures in the
country work in low-profit industries

Many of the industries are also male-centric which forces women entrepreneurs to work in these
professions that have historically been known as “women friendly” — education, fashion and beauty care,
among others. It greatly impedes their exposure, possibilities, and capacities.

Women starting their business do not get the required social support from their families, friends
or from the immediate environment. The lack of mentorship from the business community is among the
greatest challenges that women entrepreneurs face in this country.

When considering institutional support, it is the same. Despite programs designed to encourage
women entrepreneurship, few of the women receive counseling or assistance from authorities in a timely
manner. They lack a support system which impacts negatively on their confidence and ability to take
risks.
2. Poor Funding Prospects
Although it may seem unfair to state so, the Indian funding landscape harbors marked gender
prejudices. Women-led enterprises in the country face a funding gap because of investor preconceptions
and other considerations among others. Based on calculations by Innoven Capital, in 2019 only one out of
every eight startups that received funds had at least a woman founder.

This is due to reluctance by most venture capital firms and angel investors to work with female
enterprises which banks and financial institutions consider less creditworthy. In addition, most Indian
women do not own property or assets in their names and this poses a problem when seeking collateral
loans or private finance.

3. Lack of Access to Professional Networks

One of the main problems that women entrepreneurs in India face is lack of professional
networks. The Google-Bain census shows that women are less integrated with both the formal and
informal networks. As stated in the report, almost 45% of urban small business owners experience
difficulties with network development.

Research shows that most current professional networks have men, making it hard for women to
tap into or bargain on such settings. Therefore, they lose opportunities to develop their business, meet
partners and suppliers and earn social capital.

4. Pressure to Stick to Traditional Gender Roles

Under patriarchy, both men and women are required to play their gendered roles. A woman’s role
extends to cooking, cleaning home, delivering offspring and taking care of the aged. Balancing family
and work roles is already nigh impossible, but when you want to create a brand the things are even more
challenging.

The greatest challenge that women entrepreneurs face is the need to act according to accepted
gender norms. They are often convinced to abandon entrepreneurship in favor of an “easy" position
granting more time for a family and children. Additionally, a woman who focuses more on her career than
everything else is treated with contempt.

5. Lack of an Entrepreneurial Environment

However, entrepreneurship is a process that involves a lot of learning, unlearning and upskilling.
Such an entrepreneurial spirit is necessary for a person to be a successful business owner. Yet many
women often lack a productive environment.

First of all, many housewives are forced to manage their businesses from home due to family
duties. This makes companies miss out on opportunities to network with other businesses and increase
their market penetration. This also restricts their access to resources and mentors, among other things.
6. Limited Mobility
One of the basic problems that women entrepreneurs face in India is immobility. They cannot
travel alone or stay in hotels for business without worrying about their security. Additionally, most hotels
in India do not permit a woman to check-in unless she is accompanied by a male.

It is despite the fact that more financially independent women have started to buy cars, there are
still more females compared to men in possession of motor vehicles in India. All of these factors restrict
the mobility of female owners when it comes to companies.

7. Lack of Education
Prior experience running a successful firm is one of the most important credentials for a modern
entrepreneur. To compensate for a lack of experience in running a business, the entrepreneur should have
professional experience working in the relevant industry or a business management degree.
Unfortunately, in India, women's education is undervalued. As a result, many aspiring women
entrepreneurs lack the education required to manage a successful business. Women's access to higher
education is leveling the playing field.

8. Low Risk-Bearing Ability and Financial problems

For the entrepreneur to invest and manage a successful firm, he or she has to be ready to take up
some risks that accompany any business venture. Women often have no money of their own and are
generally inexperienced in making independent decisions. They are also risk-averse because they do not
trust themselves. This is increasingly evolving as women assume ownership of their finances and curb
risks from one generation to another.

9. Balancing Responsibilities between Family & Business

Family is frequently viewed as an extension of women. Married women are expected to become
mothers at a specific age and to play an active role in raising their children. As a result, young women
must take time away from their employment to focus on their children. Running a business is a tough
undertaking that frequently conflicts with women's family obligations and makes them feel bad for
prioritizing their business.

10. Stiff Competition

The present economic climate and market conditions have made corporate competitiveness tough.
They confront challenges from competitors as well as competition for leadership within their company.
To acquire the trust of their colleagues and investors, they must demonstrate their worthiness at every step
of the way. They must also manage a large amount of output while working with limited resources in
order for their company to survive.

11. Limited Industry Knowledge and Male dominated society

 Many industry sectors, such as manufacturing, are still considered to be men's domain. Women
lack access to the industry relationships, procedures, and know-how required to run a successful business.
Despite the ongoing dismantling of preconceptions, there is a general lack of exposure in these fields.
STEM (science, technology, engineering, and mathematics) education can help women entrepreneurs
cross the gender gap. Digital literacy has also resulted in a revolution in empowering women to have the
necessary instruments for learning.

12. Missing Role Models

One of the major obstacles that aspiring female entrepreneurs confront is a lack of strong role
models. Because they lack role models, it is impossible for them to imagine what success would look like.
They also struggle to find female mentors and coaches who can nurture them and provide constructive
feedback. They also have difficulty finding informative articles and literature that can help them
understand their career and personal issues.

13. Social Construct

Gender roles have been meticulously created as a result of the country's long-standing patriarchal
heritage. Women have been relegated to a supporting role, and they are not expected to take the lead in
the corporate and professional worlds. Although this viewpoint is changing, it continues to produce
tensions and rifts in the social lives of aspiring female entrepreneurs. There are still negative stereotypes
that women are unfit for leadership posts that must be broken.

14. Safety Concerns

Crime against women has increased due to a lack of law and order. Women entrepreneurs who
require mobility to operate their company initiatives face significant obstacles in this hostile and
dangerous climate. This prevents women from traveling to many places on their own and occasionally
demands the company of a guy for their own safety. The situation can be adequately rectified to establish
a safer atmosphere for women attempting to take business roles with significant legal reforms, attentive
law enforcement, and an effective court system.

SOLUTION IN GETTING GOVERNMENT ASSISTANCE AND NGOs’ ASSISTANCE:

The Government and Non-Government Organizations have started giving attention and
encouragement to women’s economic conditions and formulated various policies and programmes to
promote women entrepreneurs in the country. The schemes such as Mudra

Yojana, Dena Shakti, New Swarnima Scheme, Mahila Samridhi Yojana (Micro Credit Scheme)
and organizations like Women Entrepreneurs Welfare Association (WEWA) and Centre for
Entrepreneurship Development (CED) (a non-Governmental Organization) provide financial assistance
and help women with their entrepreneurial ventures. It is imperative to provide adequate knowledge on
various funding sources to the women entrepreneurs so as to overcome the financial hardship to run their
enterprises. It is also necessary to train them in relevant fields for manufacturing, marketing, fixing
competitive prices for the products and minimizing the administrative and regulatory charges. It is also
felt essential to develop a viable Support Network, as 48% of female entrepreneurs in Tamil Nadu in a
study mentioned, that a lack of advisors and mentors limit their professional growth.
Prospects

The possibilities for women entrepreneurs in Tamil Nadu appear bright. The number of women
starting their own businesses has significantly increased over time, and the state government has been
taking steps to encourage and support them. The following elements point to promising futures for female
business owners in Tamil Nadu:
● Government support: To encourage women's entrepreneurship, the Tamil Nadu government has
put in place a number of programmes and programs. Women entrepreneurs are intended to get
training, mentorship, financial aid, and other types of support through programs like theTamil
Nadu Women Entrepreneurs' Association (TANWEA) and the Women Entrepreneurship
Development (WED) cell.
● Programs for skill development: The Tamil Nadu government and a number of organizations
provide workshops and programs for skill development that are especially geared toward women
entrepreneurs. These courses improve their managerial abilities, business acumen, and general
business understanding.
● Financial access: Financial support for women entrepreneurs has been more readily available in
Tamil Nadu, which is important because access to capital is essential for any entrepreneur.
Aspiring women entrepreneurs can get financial support through a variety of programs and loans
provided by banks, non-banking financial institutions, and government-backed initiatives.
● Opportunities for networking: Tamil Nadu has a thriving entrepreneurial environment that
includes co-working facilities, incubators for startups, and networking events. These forums give
women entrepreneurs the chance to network with sector experts, possible investors, and like-
minded people, encouraging collaboration and development.
● Social standards or societal norms are evolving: There has been a progressive change in how
society views women in business. More women are being encouraged to explore entrepreneurship
because of rising awareness and activism. In Tamil Nadu, this shift in perspective is fostering a
positive business environment for women.
● Technological advancements: New opportunities for women entrepreneurs have been made
possible by technological developments. Online marketplaces, digital marketing, and e-commerce
platforms have made it simpler for women to launch and expand their enterprises, reaching a
larger clientele.
● Industry diversity: The industrial landscape in Tamil Nadu is diversified, including industries
like textiles, information technology, automotive, healthcare, and tourism. This diversity offers
female business owners a variety of options to investigate and tap into various sectors in
accordance with their interests and areas of expertise.

Although there are good opportunities for women entrepreneurs in Tamil Nadu, there are still
difficulties. Gender biases, restricted access to resources, and juggling job and family obligations are a
few of these difficulties. However, the entrepreneurial environment in Tamil Nadu is becoming more
inclusive and friendly for women entrepreneurs as a result of the government's ongoing support, changing
societal norms, and women empowerment efforts.
SUGGESTION:

District-Level Committees:

Form district-wide committees focused on the promotion and development of women

entrepreneurs. District committees can work with existing government programs such as Startup India,
TNWEP and others to facilitate the flow of resources and support.

Industry-Specific Clusters:

Establish industry-specific clusters that are reserved solely for women entrepreneurs. These
clusters will classify women-led businesses according to sectors like manufacturing, technology, health
care etc. Each cluster strives to promote cooperation, sharing of resources as well as finding common
solutions to problems like lack of industry information and stiff competition within the same profession.

Resource Pooling and Skill Exchange:

Facilitate initiatives for collaboration between the industry clusters and enable entrepreneurs to
consolidate their resources financial as well as non-financial. This means shared offices, equipment and
mutual access to funding opportunities. In addition, encourage skill exchange programs in the clusters
that focus on mentorship and provide workshops and training sessions to help address issues related to
improper education of knowledge.

District-Level Advocacy:

Establish district-level committees to champion policies relevant to women entrepreneurs in their

respective areas. This comprises working with local authorities to address problems such as limited
mobility and lack of social, institutional support.

Joint Market Access Initiatives:

Organize joint participation of industry specific clusters in district level and region level events,
exhibitions and business forums. This optimizes the market access, networking opportunities and
visibility to women entrepreneurs.

Support Networks:

Build a robust network of support both from district-level committees and specific industry
clusters. This involves frequent network meetings, seminars and online platforms for creating a
collaborative and supportive group.
 The integrated approach developed by the author will ensure a multi-dimensional solution as it
focuses not only on the localized challenges addressed through district-level committees but also industry
particular ones discussed via collaborative clusters. Combining these strategies, women entrepreneurs will
be able to utilize a supportive environment, industry-specific knowledge sharing and focused advocacy.

CONCLUSION:

Therefore, it is evident that although several problems are faced by the women entrepreneurs in
Tamil Nadu, the knowledge of sources for adequate finance, proper training in the relevant field and a
viable support Network are the major issues faced by the women entrepreneurs. To Overcome all these
problems, a district level committee can be constituted to promote and make the women entrepreneurs
familiar with the resources available through various schemes implemented by the Government and Non-
Government organizations in Tamil Nadu for finance and training and making women entrepreneurship
an important factor to the economic growth of the country.

REFERENCES:

T. Shunmugam, S. Kumar, S. Mookiah (2019): “Opportunities and Challenges Faced by Women

Entrepreneurs in Tamilnadu”. (VOL-5-ISSUE-5-SEPTEMBER-OCTOBER-2019)

V. Lavanya, s. Chitra: “Women empowerment through entrepreneurship in tamilnadu – a study with

special reference to rural women entrepreneurs”. Palarch’s Journal of Archaeology of Egypt/Egyptology
17(6) (2020). ISSN 1567-214X.

V. Sumathi, K. Gunasundari (2016): “International Journal of Management Research & Review”

Problems faced by the women entrepreneurs in india. IJMRR/March 2016/ Volume 6/Issue 3/Article No-
4/348-354

Raman (2023): 15 major problems faced by women entrepreneurs in India while starting a business in
2023. www.theofficepass.com/toppings/top-problems-faced-by-women- entrepreneurs-in-india