UNIT - 5

WOMEN ENTREPRENEURS

In India, entrepreneurship has been dominated by a male-governed economy, where the role of
women as entrepreneurs has been negligible.

“An enterprise owned and controlled by a women having a minimum financial interest of 51 %
of capital and giving at least 51 % of the employment generated by the enterprise to women.

In India's economy, women entrepreneurs are growing more substantial, and their
contributions shouldn't be undervalued. These female entrepreneurs play a crucial role in the
Indian economy and have a significant effect on it by generating employment, accelerating
development, and fostering prosperity. As per recent figures, women comprise 14 per cent of
the total entrepreneurs in India, which works out to 8 million. Also, 10 per cent of all formal
enterprises are owned by women.

“ Indian women entrepreneurs are playing a crucial role in driving the country's economy
forward by creating job opportunities, innovating in various sectors, driving growth in key
industries, and overcoming social and cultural biases. They are particularly active in sectors
such as e-commerce, fashion, education, healthcare, and technology. Women entrepreneurs
are bringing new ideas and approaches to traditional industries, as well as creating new
products and services.

Statistics about Women Entrepreneurs in India

Sl.No. Particulars
1. 15.7 Million women-owned enterprises in India
2. Represents 22% of all enterprises in the country
3. Women own 20% of MSMEs
4. 69% are solopreneurs
5. Provide employment to 27 million people in India
6. Popular E-com business categories preferred by Indian women are : Home
Décor; Fitness; Clothing; Beauty Cosmetics; Food; Online Tutoring and Art.
(updated upto March-22)
 In India there are 5 types of women entrepreneurs They are

1. Affluent entrepreneurs.
2. Pull Factors
3. Push Factors
4. Self Employed Entrepreneurs and
5. Rural Entrepreneurs

1. Affluent entrepreneurs : Affluent entrepreneurs are those women, hailing from rich business
families and select their trade in film distribution, beauty parlour, interior decoration, etc, and
carry out their work with the help of their family members.

2. Pull Factors: This type of entrepreneurs are educated women in cities take up
entrepreneurship as a challenge to do something new and to be economically independent.
They usually take low risk enterprises like establishing schools, catering centres, restaurants,
grocery shops, etc, (.Ex: Falguni Sanjay Nayar is an Indian billionaire businesswoman, who is
the founder and CEO of the beauty and lifestyle retail company Nykaa,)

3. Push Factors : These entrepreneurs are those who accepts entrepreneurial activities to
overcome family difficulties. The family situation forces them to start a new venture or to
develop the existing family business.

4. Self Employed

We know that women entrepreneurs are mostly undertake self employment ventures. This
type of women are from very poor family and start mini enterprise like bamboo making, broom
making, candle making, tailoring firm or providing tea and coffee to schools and offices are
called self employed entrepreneurs.

5. Rural Entrepreneurs

This type of entrepreneurs are hailing from rural areas and select less risk trade like
preparation of fruit juices, pickle making, pappad making, etc. (Ex: Lijjat Papad: A tale of
determination and women's empowerment. From Rs 80 to Rs 1,600 crores, transforming lives
through unity and hard work.)
 OBSTACLES BEING FACED BY WOMEN ENTREPRENEURS IN INDIA

The major problems faced by women entrepreneurs are:

1. Lack of Finance and Problem of Liquidity:

The main problem faced by the women and small entrepreneurs are in-adequate finance and
working capital. The family members do not like to take risk in spending money in ventures run
by women. Moreover banks also have negative attitude on women thinking that they may not
able to repay the amount. Hence the female entrepreneurs trust their personal savings and
loans from their friends.

2. Inadequacy of Raw Materials:

Due to scarcity of raw materials and other necessary equipments women entrepreneurs finds
difficult to run a business.

3.Family Responsibilities:

As far as women are concerned, managing family is more complicated than running a
business. Hence the women entrepreneurs cannot put their total involvement in the venture.
Occupational backgrounds of the family members and literacy level of their husbands has a
direct impact on the success of women entrepreneurship.

4. Low Literacy Level:

In India more than 60% of women are illiterate. The family think that spending money for
women education is a liability. Lack of education and experience leads further problem in
starting a business.

5.. Low Confidence to Face Risks

Usually women lead a protected life by their family members. Since she is not economically
independent, she may not have confidence to face the risks. This leads to failure in her venture.

6. Lack of Training

Without proper skill training in Income Generating Activities or other business related
activities, it is very difficult for women to start a business.

7. Lack of Information regarding Credit Facilities

Women Entrepreneurs are not aware of the information about the availability of credit
facilities, subsides and concessions available for women to start a business.
 Business Incubation
Define Business Incubation, Explain its importance and different types Business Incubators.

Business Incubation is the name given to the process wherein an individual or an organization
supports the establishment and growth of a start-up. Those supporting the start-up or new
companies are called business incubators.

Importance of Business Incubation

There is no dearth of start-ups that work on a brilliant idea with a huge scope of scaling.
However, these companies have little knowledge about management and, therefore, burn cash
rapidly. Business incubators help start-ups manage finances and ensure proper utilization of the
money. Managing a business locally plays a significant role in making the foundation strong and
scale it. Business incubators essentially perform the same function.

There are various business incubators that target businesses that want to establish themselves
formally in the market. Such businesses with great growth potential might require various types
of support such as planning, training, development, research support, etc.

Stages of Business Incubation

The whole process of business incubation is broadly divided into three categories:

Physical Facility Support:

This refers to the incubation service provided within the physical facility.

Networking Facilities:

After the physical facility, business incubators help the start-up with networking facilities so as
to grow the business.

Support Services:

Once the business is up and running, the incubators offer various support services to the
businesses in order to run the business smoothly.
Incubators –

Incubators are usually a partnership or collaboration between one more pro-business

organization. These organizations can be:

 Economic development organizations

 Government entities
 Local colleges and universities
 For-profit ventures
 Trade associations

Services Offered by Business Incubators

Start-ups usually have a rich idea but lack the resources to execute it. Thus, they require
business incubators to perform significant roles or fill gaps. Following are the most common
services offered by the business incubators:

 Help a start-up to start basic operations and financial management.

 They offer marketing and PR assistance to new companies to set up a brand name.
 Business incubators have a strong network of influential people, and therefore, they can
connect the business with the same to grow.
 Incubators also provide assistance and resources for conducting market research.
 They also help the start-ups in sorting their accounting books.
 Incubators bring credibility to the company. This helps the company to get loans and
credit facilities from financial institutions.
 Often the start-ups do not know how to create an effective presentation to impress
angel investors, venture capital, and other investors. Business incubators, with plenty of
experience behind them, also help these companies with the presentations.
 Business incubators also act as mentors and advisors and assist start-ups in all sorts of
business-related issues.

Types of Business Incubators

 Majorly there are four types of incubators prevailing in the market today. These are:
 Corporate Incubators
 Objective – To enhance the entrepreneurial spirit and help the start-up to keep up with
others in the industry.
 Targets – usually target internal and external projects related to the activity of the
company.
 Challenges – conflicts between the management regarding the objectives and
management-related decisions.
 Private Investors’ Incubators:
 Objective – assist the potential business model and then reap benefits by selling the
shares.
 Targets – technology-intensive start-ups.
 Challenges – quality and durability of the project.

Academic Incubators:

 Objective – offering new sources of finance to startups, supporting the entrepreneurial

spirit and civic responsibility.
 Targets – external projects and the projects internal to the institution before creating a
company.
 Local Economic Development Incubators:
 Objective – economic development, supporting SMEs and specific groups for the overall
upliftment of the society.
 Targets – small, handicraft, locally sourced business companies.
 Challenges – conflicts, governance risk, management quality, red-tapism, long hours of
negotiation.
 There are other types of incubators as well, including Seed Accelerator (focusing on
early startups), Public/Social Incubator (focusing on the public good), Kitchen Incubator
(focusing on the food industry), Medical Incubator (focusing on medical devices &
biomaterials) and Virtual Business Incubators (online business incubators).

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