CHAPTER 9

INTRODUCTION

Women constitute around half of the total world population so is in India also. They are therefore,
regarded as the better half of the society. In the traditional Indian society, a distinction was made between
‘men’s work and ‘women’s work, particularly that of the women with family responsibility. It curtailed
employment opportunity for women in conventional and unconvential fields of economic activity with
changing times and societal ideologies; there is drastic change in the conditions of women. They are now
enjoying an equal status with men and are equally contributing towards the growth of economy.

9.1 THE DEFINITION AND CONCEPTS

Women entrepreneur may be defined as a women or a group of women who innovates imitates for adopts
an economic activity. In other words, any women or a group of women who initiate organize and operate
a business enterprise.
According to the Government of India, a woman entrepreneur is defined as,” an enterprise owned
and controlled by a woman and enterprise owned and controlled by a woman and having a minimum
financial interest of 51% of the employment generated in the enterprises to women. Just as entrepreneurs,
women entrepreneurs are those women who generate business ideas or select the best opportunity,
mobilizes resources, combine the factors of production, undertake risk and operate the enterprise in the
most effectiveness with a new to earn profit.
In the modern era of globalization and liberalization, a revolutionized method has been invited in
our country with which the women population is being given more importance. Due to constant increase
in the cost of living, it has become essential for women to engage themselves in economic activities to
stand as a support to their families. They have proved themselves in not only various job areas but have
also taken a bold step of invading the forbidden land of entrepreneurship. Women have been acting as
true entrepreneurs, taking risks, managing resources and accepting challenges to gain economic
independence and establish their strong position in the society.
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Some facts about Status of Women in the area of entrepreneurship.

• Women won one-third of small business in USA and Canada.
• Women make for 40 percent of total work force in Asian Countries.
• In China, women outnumber men by at least two times when it comes to starting business there.
• Women have desires and also aspire to enter and succeed in all fields at par with men.

9.2 ROLE OF WOMEN ENTREPRENEURS

Like a male entrepreneur, a woman entrepreneur performs different functions of different nature some of
them one:
Generating New business ideas
Exploring the prospects of starting new enterprises
Undertaking risks and handling of economic uncertain tic
Employment generation
Introducing new ideas of innovation
Support to family’s income
Overall economic growth
Balanced regional development

9.3 SCOPE OF AND OPPORTUNITIES FOR WOMEN ENTREPRENEUR

The modern world women has been able to overcome the hurdle of society’s perception of considering
them to the confined to the four walls of the house or viewing them as weak entrepreneurs caught up in
limited business area such as papad making, pickle preparation food items, paintings, handicrafts, etc.
They have been able for show a remarkable shift from these small entrepreneurs at ventures to
modern, technology-based business ventures such as.
• Computer services and information dissemination
• Trading in computer stationary
• Computer maintenance
• Computer maintenance
• Travel and tourism
• Quality testing, quality control laboratories
• Sub-assemblies of electronic products
• Nutrition clubs in schools and offices
• Poster and indoor plant library
• Recreation centers for old people
• Culture centers
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• Screen printing, photograph and video shooting

• Stuffed soft toys, wooden toys
• Mini laundry, community eating centers
• Community kitchens
• Distributing and trading of house hold provision as well as saris, dress materials, etc
• Job contracts for packaging of goods
• Photocopying, typing centers
• Beauty parlors
• Communications centers like STD booths, cyber cafes, etc.

9.4 OPPORTUNITIES FOR WOMEN IN SEMI-URBAN AREAS

Considering the socio-economic, cultural and educational status and the motivational of Women in semi-
urban; particularly projects with low investments, low technical know-how and assured market are
suggested for the Improvement opportunities identified for semi-urban women are enlisted below:
• Production of liquid soap, soap power, detergents, deodorants etc.
• Office stationary like cushion pads, germ, ink pads etc.
• Convenience, readymade, instant food products including pickles, spices, papads etc.
• Community kitchens and communication services
• Different types of training and coaching classes
• Child care canters and culture canters for children
• Nursery classes
• Manufacturing of leather goods
• Garments

9.5 OPPORTUNITIES FOR WOMEN IN RURAL AREAS

In the recent industrial policy, the government has given tremendous importance for the agro- based
products-and allied products, Only one to two percent of the total production of fruitful and vegetables is
processed every year in India. This reveals a huge scope for the food, fruit and vegetables processing
industry. Women have a natural flair and instinct for food preparation and processing. A new market is
developed for the processed fruits and vegetables in form of baby foods, ice cream, convenience food
cold drinks, and canned products traditional medicine preparations etc. Thus there are plenty of
opportunities available for women entrepreneurs.

9.6 PROBLEMS OF WOMEN ENTREPRENEURS

Women entrepreneurs encounter two sets of problem, vix, general problems of entrepreneurs and problems
specific to women entrepreneurs. These are discussed as follows:
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Finance is regarded as “life-blood” for any enterprise, be it big or small. However, women entrepreneurs
suffer from shortage of finance on two counts. Firstly, women do not generally have property on their
names access to the external sources of funds is limited. Secondly, the banks also consider women less
credit-worthy and discourage women borrowers on the belief that they can at any time level their business.
Given such situation, women entrepreneurs are bound to rely on their own savings, if any and loan from
friends and relatives who are expectedly meager and negligible. Thus, women entrepreneurs fall due to
the shortage of finance.

Most of the women entrepreneurs are plagued by scarcity of raw material and necessary inputs. Added to
this is the high price of raw material, on the one hand and getting raw material at the minimum of
discount, on the other.

Women entrepreneurs ‘do not have organization setup pump in a lot of money for canvassing and
advertisement. Thus, they have to face a stiff competition for marketing their products with both organized
sector and their male counterparts. Such a competition ultimately results in the liquidation of women
enterprises.

Unlike men, women mobility in India is highly limited due to various reasons. A single women asking
for room is still looked upon suspicion. Procedural formalities involving in starting an enterprise coupled
with the official’s humiliating attitude towards women compels them to give attitude towards women
compels them to give up idea of starting an enterprise.

In India, it is mainly a woman’s duty to look after the children and other members of the family. Man
plays a secondary role. In case of married women, she has to strike a fine balance between her business
and family. Her total involvement in family leaves little or no energy and time to devote for business.
Support and approval of husbands seem necessary condition for women’s entry into business. Accordingly,
the educational level and family background of husbands positively influence women’s entry into business
activities.

In India, around three-fifths (60%) of women are still illiterate illiteracy is the root cause of socio-
economic problems. Due to the lack of education and that too qualitative education, women are not
aware of business, technology and market knowledge. Also, lack of education causes low achievement
motivation among women.

The Constitution of India speaks of equality between sexes. But, in practice, women are looked upon as
weak section of society in all respects. Women suffer form male reservations woman’s role, ability and
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capacity and are treated accordingly. In nutshell, in the male-dominated Indian society, women are not
treated equal to men. This, in turn, serves as a barrier to women entry into business.

Women in India lead a protected life. They are ‘less educated and economically not self-dependent. All
these reduce their ability to bear risk involved in running an enterprise. Risk-bearing is an essential
requisite of a successful entrepreneur.
In addition to above problems, inadequate infrastructural facilities, shortage of power, high cost of
production, social attitude, low for achievement and social-economic constraints also hold the women
back from entering into business.

9.7 DEVELOPMENT OF WOMEN ENTREPRENEURS

Under the Seventh Five Year Plan, a special chapter covered Integration of Woman in Development. In
this regard the plan suggested:
(a) To treat women as specific in target groups in all development programmer.
(b) To properly diversity vocational training facilities for women to suit their varied needs and
skills.
(c) To encourage appropriate technologies, equipments and practice for reducing their drudgery
and increase their productivity for women to suit their varied needs and skills.
(d) To encourage appropriate technologies, equipments and practice for reducing their drudgery
and increase their productivity.
(e) To provide marketing assistance at the State level.
(f) To increase women’s participation in decision making. The new industrial policy of the
Government of India has stressed the need for conducting special Entrepreneurship programmers
for women. Product and process oriented course may be conducted to enable women to start
small scale industries. The policy further add that the objective of such course should be as to
give representation to women in the field of small industry development with a view to uplift
their status in the economic and social fields.
The international agencies like UNCTAD, UNDP, ILO and the national government should adopt
appropriate measures to encourage free flow of trade of products manufactured by women Entrepreneurs
and provide fiscal and expert assistance to the government and other agencies engaged in promotion of
Entrepreneurship among women.
In international and national trade fairs, the products manufactured by women Entrepreneurs should
be widely displayed.
UNESCO and the education ministries in different countries should provide necessary literature,
course books and publication for the benefit of women students.
International bodies have also paid attention to the economic problems of women. The UNIDO
Preparatory Meeting on the Role of Women in, Industrialisation Developing Countries held at Vienna in
November 1978 identified the following primary constraints upon women’s more effective participation:
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social, attitudinal and institutional barriers; insufficient employment opportunities; inadequate and
inappropriate education and training; unsatisfactory employment conditions and environment; lack of
participation in decision- making and insufficient information. The Secretary General, United nations, in
his report on Status and Role of Women in Education and in the Economic and social Field presented at
the Thirty-fourth Session of United Nations General assembly pointed out that inadequate basic that
education and insufficient appropriate professional technical and vocational training were the main
obstacles to equal conditions of work and notably in attempting to combine employment with household
and child care. The World Conference of the United Nations Decade for Women at Copenhagen, Denmark,
at its 20th, plenary meeting on July 30, 1980 adopted a programme of action for second half of the United
Nations decade. The programme aimed at promoting full and equal opportunities and treatment of women
in employment, equal remuneration for work of equal value and equal educational and training
opportunities in both rural and urban areas. The programme called for increased employment opportunities
to enable women to obtain jobs involving more skills and responsibility, particularly at the managerial
level in all sector of the economy and promoting the access of women and girls to non-traditional skilled
trades.
Several institutional arrangements have been made to protect and develop women entrepreneurship.
In the United States, Small Business Administration (SBA) established an office of Women’s Business
Enterprise in 1980. This agency makes special efforts to assist. Women to get into business through its
district and local offices. It offers courses in counseling and publication on everything from marketing to
accounting, with specific on computing, selling, dry cleaning, fish farming etc.
In India the Federation of India Chambers of Commerce and Industry (FICCI), FICCI Ladies
Organisation (FLO), National Alliance of Young Entrepreneurs (NAYE) and other voluntary agencies
assist women Entrepreneurs. Under the Social Education Scheme of Community Development
Programme, Mahila Samagams (Women’s groups) were organized and women’s Industrial cooperatives
were set up in 1958. The Sixth Five Year Plan proposed for promoting female employment in women
preferred industries.
The nationalized banks and State Financial Corporations advance loan to women Entrepreneurs on
preferential basis. State Industrial Development Corporation and District Industries Centers provide
loans, subsidies, and grants to small scale and women Entrepreneurs. State level agencies assist women
Entrepreneurs in preparing project reports, buying machinery and building, Training and hiring staff.
Women possess a futuristic outlook and the capacity to nurture new enterprise. What is needed is
proper training, helpful attitude and facilities and assistance, In this connection, At present emphasis in
women polytechnics is on traditional skills like embroidery; interior decoration, tailoring, knitting, etc.
In addition to these, entrepreneurial skills in starting and running business units should be imparted to
girls. Many institutions are now imparting training under various schemes. But social attitudes keep
young women away from these intuitions: Women are not allowed to go away from home or to neglect
the family. Mobile training centers, part time training facilities during afternoons, transports facilities,
stipend, etc. can overcome this problem:
In rural areas, women are already helping men in agriculture and agro-based industries. With little
training they can set up industries independently. Women can ‘particularly enter ‘food preservation,
bakery, dairy, poultry, and forest based weaving and handloom areas of bus mess. In urban areas women
can be assisted to set up .ancillary units, maintenance and repair units in mechanical and electrical
industries.
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9.8 ROLE OF WOMEN ENTREPRENEURS ASSOCIATIONS

With the growth of women Entrepreneurs, a few associations of women Entrepreneurs have been set up
both at international and national levels. The main purpose ‘of these associations is to create a congenial
environment for developing women Entrepreneurship in rural urban areas. These associations seek to
achieve the following objectives:
(i) To provide a meeting ground for women Entrepreneurs;
(ii) To promote and develop feeling of unity and brotherhood among the Entrepreneurs;
(iii) To develop self-confidence and hope among female entrepreneurs;
(iv) To present the problems of women Entrepreneurs before the concerned authorities for
consideration and redressl;
(v) To secure various concessions, subsidies and assistance for women Entrepreneurs;
(vi) To conduct entrepreneurial development programmes for women.

REVIEW QUESTIONS

1. Who is a women entrepreneur? What role does a women entrepreneur play?

2. What are the areas of opportunities for women entrepreneurs?
3. Explain the various problems faced by women entrepreneurs.
4. Explain the role of women entrepreneurs associations in developing women as entrepreneurs.