Journal

of the
Oriental Institute
M.S. University of Baroda
ISSN: 0030-5324
WOMEN ENTREPRENEURSHIP IN INDIA-PROBLEMS AND PROSPECTS

DR.K.SUCHITRA ASSISTANT PROFESSOR IN COMMERCE PG AND RESEARCH

DEPARTMENT OF COMMERCE BISHOP HEBER COLLEGE (AUTONOMOUS)
TIRUCHIRAPPALLI-620017

ABSTRACT
The educated Indian women have to go a long way to achieve equal rights and position because
traditions are deep rooted in Indian society where the sociological set up has been a male dominated
one. Despite all the social hurdles, Indian women stand tall from the rest of the crowd and are
applauded for their achievements in their respective field. The transformation of social fabric of the
Indian society, in terms of increased educational status of women and varied aspirations for better
living, necessitated a change in the life style of Indian women. She has competed with man and
successfully stood up with him in every walk of life and business is no exception for this. These women
leaders are assertive, persuasive and willing to take risks. They managed to survive and succeed in this
cut throat competition with their hard work, diligence and perseverance. The present paper endeavours
to study the concept of women entrepreneur–Reasons women become entrepreneurs -Reasons for slow
progress of women entrepreneurs in India - suggestions for the growth of women entrepreneurs-
Schemes for promotion & development of women entrepreneurship in India-Case study of a women
entrepreneur of Ludhiana.
KEYWORDS: Entrepreneurship, Women, Business, Gender.

INTRODUCTION
The educated women do not want to limit their lives in the four walls of the house. They
demand equal respect from their partners. However, Indian women have to go a long way to achieve
equal rights and position because traditions are deep rooted in Indian society where the sociological
set up has been a male dominated one. Women are considered as weaker sex and always made to
depend on men folk in their family and outside, throughout their life. The Indian culture made them
only subordinates and executors of the decisions made by other male members, in the basic family
structure. While at least half the brainpower on earth belongs to women, women remain perhaps the
world‘s most underutilized resource. Despite all the social hurdles, India is brimming with the success
stories of women. They stand tall from the rest of the crowd and are applauded for their achievements
in their respective field. The transformation of social fabric of the Indian society, in terms of increased
educational status of women and varied aspirations for better living, necessitated a change in the life
style of Indian women. She has competed with man and successfully stood up with him in every walk
of life and business is no exception for this. These women leaders are assertive, persuasive and willing
to take risks. They managed to survive and succeed in this cut throat competition with their hard work,
diligence and perseverance. Ability to learn quickly from her abilities, her persuasiveness, open style
of problem solving, willingness to take risks and chances, ability to motivate people, knowing how to
win and lose gracefully are the strengths of the Indian women entrepreneurs.

CONCEPT OF WOMEN ENTREPRENEURS

Women Entrepreneurs may be defined as the women or a group of women who initiate,
organize and operate a business enterprise. The Government of India has defined women entrepreneurs
as ―an enterprise owned and controlled by women having a minimum financial interest of 51 per cent
of the capital and giving at least 51 per cent of the employment generated in the enterprise to women‖.

Vol. 71, Issue. 01, No.06, January-March: 2022 Page. 174

Women entrepreneurs engaged in business due to push and pull factors which encourage women to
have an independent occupation and stands on their on legs. A sense towards independent decision-
making on their life and career is the motivational factor behind this urge. Saddled with household
chores and domestic responsibilities women want to get independence. Under the influence of these
factors the women entrepreneurs choose a profession as a challenge and as an urge to do some thing
new. Such a situation is described as pull factors. While in push factors women engaged in business
activities due to family compulsion and the responsibility is thrust upon them.

OBJECTIVES AND RESEARCH METHODOLOGY OF THE STUDY

 The study is based on secondary data which is collected from the published reports of RBI,
NABARD, Census Surveys, SSI Reports, newspapers, journals, websites, etc. The study was
planned with the following objectives:
 To evaluate the factors responsible for encouraging women to become entrepreneurs
 To study the impact of assistance by the government on women's entrepreneurship.
 To study the policies, programmes, institutional networks and the involvement of support
agencies in promoting women's entrepreneurship.
 To critically examine the problems faced by women entrepreneurs

REASONS FOR WOMEN BECOMING ENTREPRENEURS

The glass ceilings are shattered and women are found indulged in every line of business. The
entry of women into business in India is traced out as an extension of their kitchen activities, mainly
3P‘s, Pickle, Powder and Pappad. But with the spread of education and passage of time women started
shifting from 3P‘s to modern 3E‘s i.e., Energy, Electronics and Engineering. Skill, knowledge and
adaptability in business are the main reasons for women to emerge into business ventures. ‗Women
Entrepreneur’s a person who accepts challenging role to meet her personal needs and become
economically independent. A strong desire to do something positive is an inbuilt quality of
entrepreneurial women, who is capable of contributing values in both family and social life. With the
advent of media, women are aware of their own traits, rights and also the work situations. The
challenges and opportunities provided to the women of digital era are growing rapidly that the job
seekers are turning into job creators. Many women start a business due to some traumatic event, such
as divorce, discrimination due to pregnancy or the corporate glass ceiling, the health of a family
member, or economic reasons such as a layoff. But a new talent pool of women entrepreneurs is
forming today, as more women opt to leave corporate world to chart their own destinies. They are
flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still
exploring new avenues of economic participation. The following flow chart shows the reasons for
women becoming entrepreneurs

REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA

 The problems and constraints experienced by women entrepreneurs have resulted in restricting
the expansion of women entrepreneurship. The major barriers encountered by women
entrepreneurs are:

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  The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal-
male dominant social order is the building block to them in their way towards business success.
Male members think it a big risk financing the ventures run by women
 Male chauvinism is still prevalent in many parts of the country yet. Women are looked upon
as ―able‖ i.e. weak in all respects. In a male dominated society, women are not treated equal
to men that act as a barrier to woman‘s entry into business.
 Women entrepreneurs have to face a stiff competition with the men entrepreneurs who easily
involve in the promotion and development area and carry out easy marketing of their products
with both the organized sector and their male counterparts. Such a competition ultimately
results in the liquidation of women entrepreneurs.
 Lack of self-confidence, will-power, strong mental outlook and optimistic attitude amongst
women creates a fear from committing mistakes while doing their piece of work. The family
members and the society are reluctant to stand beside their entrepreneurial growth.
 Women in India lead a protected life. They are even less educated, economically not stable nor
self-dependent which reduce their ability to bear risks and uncertainties involved in a business
unit,
 The old and outdated social outlook to stop women from entering in the field of
entrepreneurship is one of the reasons for their failure. They are under a social pressure which
restrains them to prosper and achieve success in the field of entrepreneurship
 Unlike men, women mobility in India is highly limited due to many reasons. A single women
asking for room is still looked with suspicion. Cumbersome exercise involved in starting with
an enterprise coupled with officials humiliating attitude towards women compels them to give
up their spirit of surviving in enterprise altogether.
 Women's family obligations also bar them from becoming successful entrepreneurs in both
developed and developing nations. The financial institutions discourage women entrepreneurs
on the belief that they can at any time leave their business and become housewives again.
 Indian women give more emphasis to family ties and relationships. Married women have to
make a fine balance between business and family. The business success also depends on the
support the family members extended to women in the business process and management.
 Women‘s family and personal obligations are sometimes a great barrier for succeeding in
business career. Only few women are able to manage both home and business efficiently,
devoting enough time to perform all their responsibilities in priority.
 The educational level and family background of husbands also influences women participation
in the field of enterprise.
 Many women take the training by attending the Entrepreneurial Development programme
without an entrepreneurial bent of mind. Women who are imparted training by various
institutes must be verified on account of aptitude through the tests, interviews, etc.
 High production cost of some business operations adversely affects the development of women
entrepreneurs. The installations of new machineries during expansion of the productive
capacity and like similar factors discourage the women entrepreneurs from venturing into new
areas.
 Women controlled business are often small and it is not always easy for women to access the
information they need regarding technology, training, innovative schemes, concessions,
alternative markets, etc. Just a small percentage of women entrepreneurs avail the assistance
of technology and they too remain confined to word processing software in the computer. They
hardly make use of advanced software available like statistical software SAP, Accounting
Package like TALLY, Animation software 3D MAX, internet, etc
 Lack of awareness about the financial assistance in the form of incentives, loans, schemes etc.
by the institutions in the financial sector. So the sincere efforts taken towards women
entrepreneurs may not reach the entrepreneurs in rural and backward areas.

SUGGESTIONS FOR THE GROWTH OF WOMEN ENTREPRENEURS

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 Right efforts from all areas are required in the development of women entrepreneurs and their
greater participation in the entrepreneurial activities. Entrepreneurship basically implies being in
control of one‘s life and activities and women entrepreneurs need to be given confidence,
independence, and mobility to come out of their paradoxes. The following measures are suggested to
empower the women to seize various opportunities and face challenges in business.
 There should be a continuous attempt to inspire, encourage, motivate and co-operate women
entrepreneurs.
 An Awareness programme should be conducted on a mass scale with the intention of creating
awareness among women about the various areas to conduct business.
 Attempts should be there to enhance the standards of education of women in general as well
making effective provisions for their training, practical experience and personality
development programmes, to improvise their over-all personality standards.
 Organize training programmes to develop professional competencies in managerial, leadership,
marketing, financial, production process, profit planning, maintaining books of accounts and
other skills. This will encourage women to undertake business.
 Skill development to be done in women's polytechnics and industrial training institutes. Skills
are put to work in training-cum-production workshops.
 Educational institutes should tie up with various government and non-government agencies to
assist in entrepreneurship development mainly to plan business projects. .
 Making provision of micro credit system and enterprise credit system to the women
entrepreneurs at local level.
 Attempts by various NGO‘s and government organizations to spread information about
policies, plans and strategies on the development of women in the field of industry, trade and
commerce. Women entrepreneurs should utilize the various schemes provided by the
Government.
 Women should try to upgrade themselves in the changing times by adapting the latest
technology benefits. Women must be educated and trained constantly to acquire the skills and
knowledge in all the functional areas of business management. This can facilitate women to
excel in decision making process and develop a good business network
 Self help groups of women entrepreneurs to mobilize resources and pooling capital funds, in
order to help the women in the field of industry, trade and commerce can also play a positive
role to solve this problem.
 Women‘s entrepreneurship must be examined both at the individual level (i.e. the choice of
becoming self-employed) and at the firm level (the performance of women owned and managed
firms) in order to fully understand the differences between men‘s and women‘s
entrepreneurship.

STEPS TAKEN BY THE GOVERNMENT

Development of women has been a policy objective of the government since independence.
Until the 70s the concept of women‘s development was mainly welfare oriented. In 1970s, there was
a shift from welfare approach to development approach that recognised the mutually reinforcing nature
of the process of development.
The 80s adopted a multi-disciplinary approach with emphasis on three core areas of health,
education and employment. Women were given priorities in all the sectors including SSI sector.
Government and non government bodies have paid increasing attention to women‘s economic
contribution through self employment and industrial ventures. The First Five-Year Plan (1951-56)
envisaged a number of welfare measures for women. Establishment of the Central Social Welfare
Board, organization of Mahila Mandals and the Community Development Programmes were a few
steps in this direction. In the second Five-Year Plan (1956-61), the empowerment of women was
closely linked with the overall approach of intensive agricultural development programmes.
The Third and Fourth Five-Year Plans (1961-66 and 1969-74) supported female education as
a major welfare measure. The Fifth Five-Year Plan (1974-79) emphasized training of women, who

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were in need of income and protection. This plan coincided with International Women‘s Decade and
the submission of Report of the Committee on the Status of Women in India. In1976, Women‘s welfare
and Development Bureau was set up under the Ministry of Social Welfare. The Sixth Five-Year Plan
(1980-85) saw a definite shift from welfare to development.
It recognized women‘s lack of access to resources as a critical factor impending their growth.
The Seventh Five-Year Plan (1985-90) emphasized the need for gender equality and empowerment.
For the first time, emphasis was placed upon qualitative aspects such as inculcation of confidence,
generation of awareness with regards to rights and training in skills for better employment. The Eight
Five-Year Plan (1992-97) focused on empowering women, especially at the Gross Roots Level,
through Panchayati Raj Institutions. The Ninth Five-Year Plan (1997-2002) adopted a strategy of
Women‘s Component Plan, under which not less than 30 percent of funds/ benefits were earmarked
for women related sectors.
The Tenth Five-Year Plan (2002-07) aims at empowering women through translating the
recently adopted National Policy for Empowerment of Women (2001) into action and ensuring
Survival, Protection and Development of women and children through rights based approach. At
present, the Government of India has over 27 schemes for women operated by different departments
and ministries. Some of these are:
Integrated Rural Development Programme (IRDP)
 Khadi And Village Industries Commission (KVIC)
 Training of Rural Youth for Self-Employment (TRYSEM)

 Prime Minister‘s Rojgar Yojana (PMRY)

 Entrepreneurial Development programme (EDPs)
 Management Development progammes
 Women‘s Development Corporations (WDCs)
 Marketing of Non-Farm Products of Rural Women (MAHIMA)
 Assistance to Rural Women in Non-Farm Development (ARWIND) schemes

 Trade Related Entrepreneurship Assistance and Development (TREAD)

 Micro Credit Scheme
 SIDBI‘s Mahila Udyam Nidhi
 SBI‘s Stree Shakti Scheme
 NGO‘s Credit Schemes
 Micro & Small Enterprises Cluster Development Programmes (MSE-CDP)

 National Banks for Agriculture and Rural Development‘s Schemes

 Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP)
 NABARD- KfW-SEWA Bank project

Exhibitions for women, under promotional package for Micro & Small enterprises approved by CCEA
under marketing support
The efforts of government and its different agencies are ably supplemented by NGOs that are
playing an equally important role in facilitating women empowerment. Despite concerted efforts of
governments and NGOs there are certain gaps. Of course we have come a long way in empowering
women yet the future journey is difficult and demanding.

CONCLUSION
It can be said that today we are in a better position wherein women participation in the field of
entrepreneurship is increasing at a considerable rate. Efforts are being taken at the economy as brought
promise of equality of opportunity in all spheres to the Indian women and laws guaranteed equal rights
of participation in political process and equal opportunities and rights in education and employment

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were enacted. But unfortunately, the government sponsored development activities have benefited only
a small section of women i.e. the urban middle class women.
Women sector occupies nearly 45% of the Indian population. At this juncture, effective steps
are needed to provide entrepreneurial awareness, orientation and skill development programs to
women. The role of Women entrepreneur in economic development is also being recognized and steps
are being taken to promote women entrepreneurship. Resurgence of entrepreneurship is the need of
the hour emphasizing on educating women strata of population, spreading awareness and
consciousness amongst women to outshine in the enterprise field, making them realize their strengths,
and important position in the society and the great contribution they can make for their industry as
well as the entire economy.
Women entrepreneurship must be moulded properly with entrepreneurial traits and skills to
meet the changes in trends, challenges global markets and also be competent enough to sustain and
strive for excellence in the entrepreneurial arena. If every citizen works with such an attitude towards
respecting the important position occupied by women in society and understanding their vital role in
the modern business field too, then very soon we can pre-estimate our chances of out beating our own
conservative and rigid thought process which is the biggest barrier in our country‘s development
process. We always viewed that a smart woman can pick up a job any day, but if she becomes an
entrepreneur she can provide a livelihood to 10 more women at least..!! Highly educated, technically
sound and professionally qualified women should be encouraged for managing their own business,
rather than dependent on wage employment outlets.
The unexplored talents of young women can be identified, trained and used for various types
of industries to increase the productivity in the industrial sector.

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WEBSITES
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