Forms of Business

Ownership

Women Entrepreneurs and

Rural Entrepreneurship
Forms of Business Ownership

 One of the first decisions that you will have to

make as a business owner is how the
company should be structured.

 This decision will have long-term implications.

 Consult with experts to help you select the

form of ownership that is right for you.
 In making a choice about forms of
business ownership, take into account the
following:
> Your vision regarding the size and
nature of your business

> The level of control you wish to have

> The level of “structure” you are willing to

deal with
 >The business’s vulnerability to lawsuits
..
> Tax implications of the different ownership
structures

> Expected profit (or loss) of the business

> Whether or not you need to re-invest earnings into

the business.

> Your need for access to cash out of the business

for yourself
Business Ownership
 Sole Proprietorships
The vast majority of small business start out as
sole proprietorships. These firms are owned
by one person, usually the individual who has
day-to-day responsibility for running the
business. Sole proprietors own all the assets
of the business and the profits generated by
it.
Business Ownership
 Partnerships
In a Partnership, two or more people share
ownership of a single business. The Partners
should have a legal agreement that sets forth
how decisions will be made, profits will be
shared, disputes will be resolved, how future
partners will be admitted to the partnership, how
partners can be bought out, or what steps will be
taken to dissolve the partnership when needed.
 Women Entrepreneurs

 Women entrepreneurs are key players in any

developing country particularly in terms of
their contribution to economic development.

 In recent years, even among the developed

countries like USA and Canada, Women’s
role in terms of their share in small business
has been increasing.
Problems of Women Entrepreneurs

1. Patriarchal Society:
 Entrepreneurship has been traditionally seen as a
male protected and idea of taking up
entrepreneurial activities is considered as a
distant dream.
 Any deviation from the norm is looked fiercely and
if possible, immediately restricted.
 Women also have to face role conflict as soon as
they initiate any entrepreneurial activity.
 Problems of Women Entrepreneurs

2. Marketing Problems:
 Women entrepreneurs continuously face the problems in
marketing their products. It is one of the core problems as
this area is mainly dominated by males and even women
with adequate experience fail to make a knock.
 For marketing the products women have to be at the
mercy of middlemen who pocket the chunk of profit.
Although the middlemen exploit the women
entrepreneurs, the elimination of middlemen is difficult,
because it involves a lot of running about. Women
entrepreneurs also find it difficult to capture the market
and make their products popular.
 Problems of Women Entrepreneurs

3. Financial Problems:
 Obtaining the supports of bankers,
 managing the working capital,
 lack of credit resources are the problems which
still remain in the males domain.
 Women are yet to make significant mark in
quantitative terms. Marketing and financial
problems are such obstacles where even training
doesn’t significantly help the women.
Problems of Women Entrepreneurs

4. Family conflicts:
 Women also face the conflict of performing of home
role as they are not available to spend enough time
with their families.
 They spend long hours in business and as a result,
they find it difficult to meet the demands of their
family members and society as well.
 Their inability to attend to domestic work, time for
education of children, personal hobbies,
entertainment add to their conflicts.
Problems of Women Entrepreneurs

5. Credit facilities:
 Though women constitute about large percentage of
population, the percentage of small scale enterprise
where women own very small percentage of share
capital.
 Women are often denied credit by bankers on the
ground of lack of collateral security. Therefore,
women’s access to risk capital is limited.
Example: Grameen Banks, Brac, Proshika,
Asa’s microcredit facilities have been a good
deal of self employment program.
Problems of Women Entrepreneurs
6. Heavy competition:
 Many of the women enterprises have imperfect organizational
set up. But they have to face severe competition from
organized industries.
7. High cost of production:
 undermines the efficiency and stands in the way of
development and expansion of women’s enterprises.
 Government assistance in the form of grant and subsidies to
some extent enables them to tide over difficult situations.
 Other than these, women entrepreneurs also face the problems
of
 labor,
 human resources,
 Infrastructure,
 Legal formalities,
 Overload of work,
 Lack of family support,
 Mistrust etc.
Women set up an enterprise due to economic
and non-economic reasons

 “When women moves forward, the family

moves, the village moves and the nation
moves.” is rightly said by Pandit Jawahar Lal
Nehru. Employment gives status and economic
independence to women leading to an
empowered women.
 Motivational Factors
 Economic necessity
 independence
 education and qualification
 employment generation
 success stories of friends & relatives
 family occupation
 Govt. policies and programs
 role models to others
 self identity and social status
 Facilitating Factors

 Adequate financial facilities

 Innovative thinking
 Co-operation of family
 Support of family members
 Network of contacts
 Rural Entrepreneurship

 In simple words, rural entrepreneurship

implies entrepreneurship emerging in rural
areas. Or rural entrepreneurship means rural
industrialization.
 Industrialization can’t originate or sustain
without entrepreneurship whether rural or urban.
 Thus, rural entrepreneurship is the only solution
to rural poverty and backwardness.
 Some Village Industries

 Mineral based industry i.e. cottage pottery industry, slate

& slate pencil making, manufacture of bangles etc.
 Forest based industry i.e. hand made paper,
manufacture of katha, cottage match industry,
agarbatties etc.
 Agro based food industry. it includes, honey,
manufacture of cane gur, nuts etc.
 Engineering and non-conventional energy includes
carpentry, household aluminium utensils, gobar gas from
cow dung and other waste products.
 Textile industry includes batik work, toys, and doll
making etc.
 Features of Rural Industry

 Agriculture and rural development are the

ultimate goal of our economy.
 As far as meaning of rural industrialization is
concerned, there are conceptual difficulties in
defining as such.
 However, it is generally taken as a group of
traditional industries like handloom, khadi,
handicraft, pottery, Bamboo made stuffs etc.
 Features of Rural Industry
 A Rural industry has following features:
a) very low investment
b) use of traditional skills
c) products are either essential mass consumer goods
or handicrafts;
d) use of locally available raw-materials
e) cater to limited markets
f) products are becoming popular in foreign markets for
their unique nature
Problems in Growth of Rural Entrepreneurship

a. Lack of infrastructural facilities

b. Non-supportive attitude of financial institutions which
works more on papers that its delay often disappoints the
entrepreneurs
c. lack of technical know-how
d. lack of communication facilities and market information
e. lack of warehousing facilities
f. banks do provide concessional loans but their rules are
very rigid
g. lack of quality management

Conclusion: Village & small industries is under a threat of

extinction. Unless the rural industry is modernized, it has
to face its closure sooner or later due to increasing
competition.
How to Develop Rural
Entrepreneurship
 Small Business Development
 Small Scale Enterprise
 Business firm which is independently owned and
operated and not dominant in its field of
operation.
 According to new industrial policy of Bangladesh
 Small scale business enterprise refers to industries
engaged either in manufacturing process or in service
activity within a total investment up to taka 15 million
 The investment in machinery and equipment not
exceeding Taka 10 million.
 Small Business Development
 Characteristics of Small Business
 Independent management –
 owner manager
 Capital –
 individual or small group provide the capital
 Location oriented operation –
 local and community based who fulfill the local need
which is termed as focused strategy.
 Small sized business
 Type of business activity –
 They contribute a lot of satisfying needs and wants of
small group of customers.
 Network is small and scattered.
 Small Business Development
 Problems of Developing SSE in Bangladesh
 Problems in government policies
 Govt. help developing enterprises not developing
entrepreneurship
 Emphasizes on other factor of production rather than the
human factor
 Frequent change in industrial policy
 Lack of adequate incentive measure
 Small business are deprived of incentives, tax holiday,
low rate interest policy, relaxed loan repayment policy.
 Small Business Development
 Problems of Developing SSE in Bangladesh
 Problem of awareness of the facilities
 People are not aware of facilities given by government
 Lack of educational background
 Lack of training facilities
 Institution of management Bangladesh (IMB) and small
scale enterprises training institute are two organization that
provides training.
 Lack of research
 Absence of integrated package assistance
 Stimulatory, supportive and sustaining activities on
assistance program are not included.
Find the Solution for the Problem of
Developing the SSE in Bangladesh?