Problems & Prospects of Woman Entrepreneurship-A Critical Study

Problems & Prospects

of Woman
Entrepreneurship-A
Critical study by
1
Komal Bhardwaj ,
2
Dr.Urvesh Chaudhary
1
(Research Scholar, School of
Management, Lingayas University,
Faridabad, Haryana, India,
[email protected],
9911656528)
2
(Professor, Department of Management,
Advanced Educational Institutions, Palwal,
Haryana,India,
[email protected],
9810678093)

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

ABSTRACT: For the growth of any country an entrepreneur plays an important role in the
development of its economy. An entrepreneur is the heart or sole of any economy. Now a day’s
scenario has been changed and females are now educated and they are also taking up the
responsibility of an entrepreneur .The problems faced by the women entrepreneurs are also
discussed in the paper, In addition to this they are also discussing about the change in status of
women entrepreneurs.. The data is collected from the secondary sources and qualitative
analysis is done. Some suggestions and advice are also provided at the end of the paper to
promote Women Entrepreneurship.

Keywords: Women Entrepreneurship, Women Entrepreneurs, Challenges, Finance,

Economy

INTRODUCTION

An entrepreneur is one who is busy in financial or economic activities and regularly

taking some new & creative steps to develop his business. Entrepreneurship deals with
creativity and rethinking . For being a successful entrepreneur you should have an art to take
best out of the waste. An entrepreneur not only make profit for his own but also provide work
to so many people. He is actually serving the society by creating employment opportunities in
the market and also by optimum utilisation of the resources .Mostly it has been seen that males
are becoming entrepreneur, normally males are financially strong and supported by their
families. But it is very difficult for a female to have financial support from her family
especially for starting the business. Now a day’s situation is changed ,more and more females
are doing business as entrepreneurs or are in higher positions in the enterprises/organisations.
Entrepreneurship knows no boundation even it is not hereditary to any person irrespective of
his/her gender, caste or religion anyone can start a business.

In past few years, scenario has been changed due to urbanisation & industrialisation; more &
more females are coming forward as an Entrepreneur. Not only as starters but they have
become the role model for many. This is due to the education & awareness only that is rising
day by day .Even govt. has also taken so many steps to raise the living standard of the women.
Doing Business not only help them in earning, and make them financially strong but it also
gives them motivation, self -confidence ,independent & develop her personality too.
Entrepreneurship is the creativity of a person, more he is creative more he will be successful in
his venture. A country which is rich in so many resources needs more & more entrepreneurs

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

who can do the best use of these resources. Entrepreneurs are the one who can make a society
financially & economically strong. Even it is confirmed by various sources that “the women
entrepreneurs play a crucial role in the economies across the world”1.In U.S,1.5 trillion dollars
worth of sales is generated by more than 9million firms owned by the female entrepreneurs,
while according to statistics only 26.6 lakhs MSME units are there in India. Women is doing
business in every field whether it is production, marketing ,services or trading sector. It is very
clear that in the growth of an economy women plays an important role, so it is necessary that
a women friendly environment must be created so that they can do their business easily.

RESEARCH OBJECTIVE

The condition of women in India is merciful. Even so much awareness about rights of woman,
acts has been passed to save guard their rights. Even then the condition of women in India is
pitiful .To improve the status of women, it is necessary to know about them. The objective of
writing this paper is to find the problems of women entrepreneurs in India and try to find the
solutions ,that how can we solve their issues.

LITERATURE REVIEW

Many studies have already been done regarding entrepreneurship in under developed and
underdeveloped countries but not much study is done in relation to female
entrepreneurship.(Key et al.,2003:Jahanshashi et al.2010).According to Amha and Ademassie
(2004) gender related challenges are faced by the women entrepreneurs in Ethiopia.As per
OECD,2004,female entrepreneurs in Turkey has to face many obstruction and challenges
while establishing ,increasing and running their organisations.They have to face many societal
limitations such as patriarchal beliefs,traditional gender roles,poor education and poor
experience of labour force.According to Hendricks,2005 ,In south Africa males are more
dominant as compare to females in entrepreneurial activities.Same case is with Bangladesh also
as per Hossain,2007.

An important study done in India is ,by Rani,in 1996 who had highlighted the various issues of
Indian female Entrepreneurs.Her study was related with the examination of social And
economic background of women entrepreneurs ,she also studied the strengths,weaknesses and
motivational factors of Indian women..She worked on these factors to analyse their threats and
opportunities in Indian culure and Society.She also find out that Indian women give priority to

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

their families, even their family support them in doing business still they feel that that home
management is the duty, which comes first. Even it has been found that they prefer small
enterprise or side business which can be easily managed along with the family. They used to
sacrifice their career for their family and children .Even they don’t want to shift after leaving
their family for a good job or opportunities. Work-Home conflict are normal as male bypass
the working schedule of the females outside the home., it is just time pass for them .Vyas and
Singh in 1993 studied the role of family, psychological issues and social factors that impact
the entrepreneurship in India. According to Singh(1997).the personality of a person if
motivated can influence entrepreneurial behaviour of a person. As per Pujar(1989),the elements
which help in achieving success are autonomy, financial independency and a need for
achievement.Some of the main qualities which are required in aperson to be agood
entrepreneur

. Factors such as need for achievement, economic independence and autonomy are essential
elements for the success of an entrepreneur (Pujar, 1989). On the psychological side,
willingness to take risks, ambition, a strong desire for individual achievement, and persistence
are considered some of the main traits (Kaza, 1996). Especially with those who are
unaccustomed to taking risks, the fear of failure (psychological) and of peer opinion (social)
are predominant at the entry level. The key barrier that a woman entrepreneur has to overcome
is the fear of risk (Histrich et al., 1986). In short, an entrepreneur is very different from a non-
entrepreneur in social and psychological disposition (Rani, 1996). Regional differences in the
matter cannot be overlooked. In developed countries motivation of women entrepreneurs often
has roots in job frustration and interest in the area of business (Histrich, 1986). In developing
countries entrepreneurship has to be socially desired behavior rather than individual activity
(Vinze, 1987). Further, in developing countries women entrepreneurs face considerable
repercussions within their families and social relationships because of the role transformation
from that of the traditional homemaker to a business person. To cope with these psychological
stresses women require great confidence and mental resolve. Researchers do believe that these
psychological traits like need for achievement, power, and affiliation are those that can be
developed (Uddin, 1989). Vinze (1987) studied the socio-economic background and the factors
that contributed to entry into business of women entrepreneurs in Delhi. Corroborating with
above findings, she highlighted the cultural aspects. It is harder for women to take „calculated
risks‟ that are essential to entrepreneurship, as they are the custodians of society in the
maintenance of cherished values, habits, and accepted norms of conduct. An attempt to study
women entrepreneurship in Kerala was done by Pillai and Anna (1990). Their study showed
that entrepreneurs depended on financial support from the state and that familial assistance was
used only as a secondary source of help. Yet, women had cited family support and encouragement as the
highest facilitating factors for them to do business. Another conclusion was that women in Kerala were “not
coming forward to take industrial ventures which demand initiative and dynamism”. Thus, the Kerala scenario
projects an intriguing picture as the study conducted at Thrissur by Jacob (1998). According to her, neither the
encouragement from the government policies nor the EDP-training they had received had been the motivation for
setting up enterprises. Kaza (1996) investigated why banks were not able to meet their targets for women
enterprises in Baroda. He also found the over-riding importance of family for women and instances such as
marriage, childbirth or even a crisis in the family led to closure of enterprises of women. Financial institutions are
therefore hesitant to give loans to women entrepreneurs; they might quit even a well-running business for the sake

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

of their families. This factor also leads women to locate their enterprise near their homes even if it means
compromising on business interests.

According to Khanka (2000), a women entrepreneur is a confident, innovative and creative woman capable of
achieving economic independence individually or in collaboration generates employment opportunities for
others through initiating establishing and running an enterprise by keeping pace with her

DEFINITION OF WOMEN ENTREPRENEUR

The term ” entrepreneur “ is derived from a French word i.e “Entreprendre” which means to
undertake. An entrepreneur is a person who combines capital and labour for production.

Women Entrepreneurs can be defined as a woman or group of women who owned a business
enterprise,& taking decision is her sole responsibility. It means that she is the decision maker
of the business. According to Government of India a women can be called an Entrepreneur if
she has minimum financial interest of 51% of the capital in the enterprise owned & controlled
by her.6 Also she is giving 51% of employment or jobs to the women only. Today‘s women
are not confined to her home only she is showing her talent and skills to the whole world. She
is handling her office as well as she manages at her home. Women are said to be the best
managers of the world. In the economy of the developing countries women entrepreneurs are
giving their due share.

III .STATUS OF WOMAN ENTREPRENEURS IN INDIA

As per 2001 census; India’s half population is made of females only, out of which 70% are
busy in agriculture, while 21.7% are busy in non –agricultural jobs and rest are busy in
household activities. But with the impact of Industrialisation ,policy of globalisation and the
increase in privatization during mid 90’s ,the women are coming forwarded in this man
oriented society where it was the matter of a shame to do the business by a female. There are so
many examples of Women entrepreneurs who has taken the initiative and become the well
known reckoned ladies in the world of business .Some to cite here are Surabhi Dewra,
Founder, MeraCareerGuide.com, Suruchi Wagh, Founder and COO, Jombay.com, Suchi
Mukherjee founder & CEO, Limeroad.com and many more to count. Doing business not only
make them financially independent but also give them self respect & confidence in them. The
women are taking lead role in setting up their own ventures like MSME’s.

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

In India 26.61 lacs enterprise are female-owned out 361.76 lacs enterprise in the Small,
Medium & micro enterprises. While out of 805 lacs employees 120 lacs of employees are
females. As per the MSME annual report 2017-18 .As per business report 2017 and survey
done by IFC,women enterprises contribute 3.09% of industrial output and employ over 8
million people12.As per the report of Female entrepreneurship Index by the global
Entrepreneurship and Development Institute in survey of 77 countries India ranks 70.All over
the world the number of women entrepreneurs are raising day by day while in India it is not
showing any improvement. There are so many problems that are faced by Indian female
entrepreneurs that need to be sorted out. The main problem is of Capital that is the basic
requirement for doing any business which is not easily available here or we can say that the
females are unaware of the facts that from where they can arrange the funds to start up their
own venture. Another factor can be lack of skills & tight social norms that discourage women
to start their own venture.

WHY THE WOMAN ENTREPRENEURSHIP IS NEEDED?

There are so many reasons that support the women Entrepreneurship. According to the 2011
census around 48% of population are women, out of which 34% are not paid for their work and
efforts.13Most critical situation arises when the sole earner of the family is no more and there is
no financial support to the family. In that situation it is the basic requirement of the society to
promote the women entrepreneurship.

Involving women in business has its own benefits for the society as well as the economy.
Women entrepreneurship helps in creating more job opportunities in the market as well as help
in improving per capita income of the nation. The various factors14 that helps in making a
women entrepreneur are:-

1. Made her Own identity:-

If a women becomes an entrepreneur, than she is able to find her own
identity in the society otherwise she remains an unknown name in the darkness of four
walls.
2. Be independent:-
Entrepreneurship helps a woman in becoming independent; she is
financially independent and can make her decision at her own. She doesn’t have to
depend on anyone else for her well being.

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

3. Bright Future:
By becoming an entrepreneur, a woman assures her bright future as she is
able to make her own destiny. Her future is secure in addition to her dependents and
whole family.
4. Increase confidence and Positivity:
Entrepreneurship helps in increasing confidence and positivity in a
woman. Now she is confident enough to make her own decisions.
5. Create Employment opportunities:
Women Entrepreneurship helps in creating employment opportunities in
the market as more entrepreneurs mean more job opportunities.
6. Better education and Awareness:
Chances of better education and awareness are increased by increase in
the number of women entrepreneurs.
7. Support of family members:
As woman is become entrepreneur than she can get the
support of family in her ventures very easily as they came to know her capabilities.
8. Increasing Risk Taking Abilities:
The abilities of a women to take risk are increased when
she become an Entrepreneur.
9. Developing equal status in society:
Women Entrepreneurship helps in developing equal
status of women in the society.
10. Innovative Ideas and Creativity:
It is ability of women to creatively think & doing work in
such a different way that enhance the possibilities of woman to become an entrepreneur.

PROBLEMS FACED BY WOMEN ENTREPRENEURS

1.Problem of Capital:-Arrangement of finance is a major problem for the

women entrepreneurs, as they are not financially so strong to start their own business. Mostly
women don’t own a good bank balance and no man wants to give his money to invest in her
venture as he doesn’t believe in his entrepreneurial skills. They are unable to fetch finance
from market too as they don’t have any property on their name or good bank balance too. As
per the research done by Robert in Non-OECD and developing economies shows around 59%

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

of respondents have financial problem as major problem for starting his business while 41%
have the main problem in obtaining loan from external sources.

2. Lack of Formal Education:-In India & developing countries, women don’t get proper
education related to developing entrepreneurial skills or training. Lack of finances, social
barriers or lack of interest there can be many reasons due to which women are unable to get
formal education.

3. Competition in the market:-There is stiff competition in the market and it is very hard to
find a suitable customer, even middleman exploit women entrepreneurs more as they are less
aware about the market. Even they don’t know the market tricks and new technology available
in the market. Most of the women entrepreneurs run small, micro or middle enterprises while
market is rule by the large enterprises in terms of cost, standard, & marketing skills they are
unable to compete with them.

4.Social Factors:-There are so many factors in the society that create hindrance in the success
path of women entrepreneurs .They have to face Gender discrimination, family responsibilities
& burden of dependents and many more such social factors are there which they have to face.

5. Poor Entrepreneurial Skills:-Women are not having training or learned entrepreneur skills
in a formal way .SO they lack somewhere in management skills of Planning, Organising,
Directing and controlling. Even they are not aware of the latest trends and techniques available
in the market.

6. Not ready to take Risk: Women fear of taking risk. It has been seen that man are more self
confident and take risk than women. As woman have to play on safer side and answerable to
their male counterpart so it is not easy for them to take higher risk.

Other factors can be:-

 Travelling Problem
 Shortage of resources
 High Cost of Production
 Playing so many roles
 Lack of Experience
 Tax related Issue

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

 No Government support
 Lack of well qualified or trained employees
 Unable to take risk
 Family Matters Most
 Poor self-Confidence
 So many legal formalities

SUGGESTIONS /SOLUTIONS TO OVERCOME THE PROBLEMS OF

WOMEN ENTREPRENEURS

Women are almost half or 50% of our population and developing women entrepreneur’s means
developing our economy. If more and more women are becoming entrepreneurs than problem
of poverty, unemployment and education can be resolved.

Women entrepreneurs are facing so many problems in India because of many reasons ,but still
they are showing a significance improvement in their growth .They are boosting our economy
and breaking “Glass ceilings”.

Some suggestion are giving hereby to solve the problems of women entrepreneurs in India:

1. Provision of Financial Support and Loan:- More and More financial institution
should be started to provide easy finance and loan to women entrepreneurs as per their need
and requirement. Female should be appointed as the in charge & employees of these
institutions so that the women can easily approached them for the help and the finance should
be provided at local level.

2. Help in marketing :-Marketing co operatives should be provided to them to support them

in their marketing activities. Even govt. should purchase from women entrepreneurs so that it
helps them in their survival.

3. Availability of Raw materials: Help should be provided in the arrangement of cheap and
best raw materials to the women entrepreneurs by different agencies.

4. More Professional Knowledge and Awareness: Steps should be taken to increase

awareness and education among women to do the business. Scholarship schemes and grants

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

should be provided to the women so that they have knowledge and courage to start their own
venture.

5. More clear picture or draft of their actual plan. As per the studies it has been found that
women face failure in their business because they don’t have any written plan or design
regarding their product or service. They need to have set their well defined goals and strategies
which can be executed with proper planning.

6. Support & cooperation: Women need not to do all the work alone. They should know how
to use the talent of the people surround her .She has the talent to choose the right person for
right work.

7. Relation Building: Women entrepreneur should have very good professional relationship so
that she shouldn’t face any problem in public dealings.

8. Right estimation of Price value :As per Wes man females under estimate their value and
ready to work at comparatively low price than males .similarly they do with their product and
not able to fetch right price of their product.

9.Avoid dealing money issues:- Normally women hides from the cash issues,and rely on some
other person who can deals with money issues on her part which is not right. She should know
how to deal with the debtors and creditors of the business.

10.Friendly relations with Employee: Employees are the back bone or base of any business.
A women should take care of maintaining cordial relationship along with professionalism. So
she should know how to mix the both.

Government initiatives to develop Women Entrepreneurship are

1. Indira Mahila Yojana

2. Indira MAhila Kendra
3. Mahila Samiti Yojana
4. Rashtriya Mahila Kosh
5. Prime Minister’s Rojgar Yojana
6. Women’s Development Corporation Scheme
7. Khadi and village industries commission
8. Indira priyadarshini Yojana
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Problems & Prospects of Woman Entrepreneurship-A Critical Study

9. SBI’s Sree shakti Scheme

10. NGO’s Credit Schemes

CONCLUSION: In a country like India where women face so many discrimination against
men need support to improve their status in the society. Even for the growth of our economy ,
development of women is very necessary. It is only through the growth of the women , after
that we can say that we are completely developed. Even govt. has given the slogan of ”Beti
Bachao ,Beti Padhao “ just to improve the situation of females in India. Education
,Awareness, Financial support etc are the some ways by which we can improve the status of
women entrepreneurs. Women are called the “Nari shakti” and they have the power to change
the world. Need of the hour is to support them , to motivate them and help them in their
ventures. They want Moral, Financial , Physical And Family support to go beyond the limits.
Women are very good managers but they are always harassed and used by the society for their
own selfish wishes. Now it is the high time to make the people aware about the importance of
Women Entrepreneurship. Government should taken some important steps to safeguard the
rights of women entrepreneurs.

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Problems & Prospects of Woman Entrepreneurship-A Critical Study

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