Unit 2 Q.1. What do you understand by women entrepreneurship? Explain women entrepreneurship participation in small sector.

. OR Write essay Womens Entrepreneurship opportunities and problems. Ans. The emergence of entrepreneurs in society depends largely on the economic, social religious, cultural and psychological factor prevailing in the society. In the advanced countries of the world there is an increase in the number of self-employed woman after the world war. In the United States woman own 25% of all business. In Canada, one-third of small businesses are owned by women and in France it is one-fifth. As per 1991 census only 1,85,900 women accounting for only 4.5% of the total self employed persons in the country were recorded. Majority of them were engaged in the unorganized sector like agriculture, ages based industries, handicrafts, handlooms and cottage-based industries. Participation of women as industrial entrepreneurs is a recent phenomenon commencing from 70s onwards. There were more than 2,95,680 women entrepreneurs during 1995-96. They claimed 11.2% of the total 2.64 million entrepreneurs of this majority was concentrated low-paid, low skilled, low-technology and lowproductivity job 90% women workers were in the rural areas as against only 10% in urban areas. Only 2.5 million women workers were in the organised sector a mere 12.4% of the total employed. The Government of the India has defined women entrepreneurship as any enterprise owned and controlled by women, having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to women. However, the definitions in subject to criticism mainly on the condition of employing more than 50 percent women workers in the entereprises owned and run by the women. According to Frederick Harbison there are five functions of women entrepreneurs1- Exploration of the prospects of starting a new business enterprise. 2- Undertaking of risks and the handling of economic uncertainities involved in business. 3- Introduction of innovation or imitation of innovations. 4- Co-ordination of administration and control. 5- Supervision and leadership. Opportunities of women entrepreneurship There a great awakening among women now-a-days. In education they have not only excelled but also become the toppers, similarly in office and industry, many of there have shown appreciable performance the need of the hour is to provide them opportunity in a conductive atmosphere. Opportunities in Urban Areas Womens entry into business is a new phenomenon. There entry is marked as an extension of their kitchen acitivities in 3 Ps. i.e. (Pickles, Powder Masala and Papad). Manufacturing, with the growth of awareness and spread of education, women have started shifting from 3 Ps to modern activities like enjoinring, electronics and energy populary known as 3 PEs. The enterprises set-up by women cover a wide range of activities and only 2% are in food products and 13% in traditional business of garment/hosiery 20% women opt for chemicals and another 12% for engineering items. The selections of business venture depends open the following factors :(i) (ii) Family background. Education.

(iii) (iv)

Attitude Training etc.

The list of successful women entrepreneurs is quite long. A selected representative women entrepreneurs are mentioned here. Among the Smt. Sumati Morarji of shipping Corporation Smt. Sharayan Dafitary of Automible. Radiators, Smt. Yamutai Kirlosker of Mahila Udyog Limited, Smt Vimal Pitre, manufacturer of surgical instrument. Smt. Manik Vandrekar of leather crafts, Smt. Redanika Pradhan of Plastic Industries. Smt. Gogate for drugs, Smt. Swati Bhatija in engineering industries. Smt. Prerang thakre of jayant Vitamins Ltd; Smt. Nargis Wadia of Inter Publicity, Smt. Neena Malhotra in Export Smt. Rajani Agarwal in engineering, Smt. Shahanaz Hussain in beautry clinical cosmetics,. Smt. Wadia in fabrics. Smt. Waheed Rehman in food fools all stand out as successful women entrepreneurs Since the inception of the national Awards to small entrepreneurs instituted in 1983,10 women entrepreneurs have received special recognition awards. They have attributed their success in their enterprise to hard work devotion, dedication, determination and confidence in themselves. Behind every successful women entrepreneur there is a man and Vice-versa. The opportunities of women entrepreneurship are uncountable. A few of the opportunities for them in urban areas can be enlisted as follows 1- Computer training 2- Trading in Computer stationary 3- Computer maintenance

4- Sub assembles of electronics products

5- Travel and tourism 6- Quality control laboratories 7- Recretion centres for old people 8- Culture centres 9- Screen printing, photography and Video shooting 10- Staffted soft toys, wooden toys 11- Mini-laundry 12- Trading of Household provision 13- Photo copying 14- Beauty Parlours 15- Communication Centres like Std Booths cyber cafes etc. 16- Health clubs etc. Opportunities in Rural Areas The new industrial policy of Govt. of India has specially highlighted the need for entrepreneurship programmes. For women in the nature of product process oriented courses. In suggest that the objective of the policy is to given representation to women in the field of small industry development with a view to uplifting their status. Many other opportunities for woman entrepreneurs in rural areas can be identified as follows: 1. 2. 3. 4. 5. Handmade paper Bee-keeping Leather goods Black smith Biogas

6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Palam-gur Non-edible oils Gur and khandsari Agarwathi Fire-works Cottage Match Bamboo and Cane work Gams Weaving of doormats Bags manufacturing Candles.

Women are now willing to become entrepreneurs due to various factors. These factors can be broadly classified under two heading namely Pull factor and Push factor. Under the first category, the women entrepreneurs choose a profession as a challenge and adventure with an urge to do something new, liking for business for business and to have an independent occupation. The other category of women takes up business enterprises to get over financial difficulties and responsibility is thrust on them due to family circumstances. However, the latter category forms a negligible percentage of the total women entrepreneurs. Problems of Women Entrepreneurship Problem of Finance- Finance is life blood of an enterprise. Women suffer from shortage of finance on two grounds. First women do not generally have property on their names so as to get funds from external sources Secondly financial institutions consider women less credit worthy and discourage them on the belief that they can leave their business at any time. So they have to depend on their saving and loans from near and dear ones. As a result, women enterprises fail due to the shortage of finance. Low Mobility One of the biggest problems for women is mobility. They do not like to travel from one place to another. It is seen that government clerks and private dealers harass them as they feel uneasiness to face the court proceedings. Family Duties Being the primary duty to look after the family, women like to have the support of her husband and family in her enterprise. There arises a conflict in many women entrepreneurs. Such conflicts check, them from taking prompt decisions in business. Despite modernization, traditions and family responsibility slow down the movement of women. Lack of Education In India, literacy among women is very low. Due to the lack of education, majority of women entrepreneurs are unaware of technical knowledge. Lack of information and experience creates so many problems in running their enterprise. Low Risk- bearing Ability To be successful in business enterprise risk bearing in essential. Women have a low ability to bear economic and other risk. Thus it cause major problem. Male- Dominated society The constitution of India has given equal right to man and women but in practice, it is not so women are still looked down upon as Abla i.e. weak in all respects. In the maledominated Indian society, women are not treated equal to men. Thus women face a great barrier in running their business.

High Cost of Production High cost of production mars the efficiency and checks the development. Government must help them in the form of incentives and subsidies to as the enable them to tide war the difficulty. Shortage of Raw-material It is very difficulty to procure raw materials and other necessary inputs. High prices of raw material cause another problem getting them at the minimum of discount. Stiff Competitions Many of women have imperfect organizational setup they have to face severe competition from organized industries and male entrepreneurs. Such a competition ultimately results in the liquid action of women enterprise.

Qs.2. What consideration should be kept in view while starting a business? Describe a business. Or Discuss briefly the main consideration while starting a business. Ans. Modern age is age of competition. An entrepreneur has to bear in mind many important factors for starting his business. They are as follows

1. Type of Business The entrepreneur must take decision what type of business is started. He
should think over the margin of profit. He may consult other before taking a decision.

2. Selection of the Type of Organization The entrepreneur must also consider whether the business
be taken up on sole proprietorship basis or in the form of partnership or joint stock company after the merits and demerits of these form of business organization, he should select and finally take decision.

3. Proper Location and Installation of Business At the time of selection of suitable place for business,
economic, natural, and potential and other general factors must be taken into consideration. The installation of machinery or plant too must be considered in advance. 4.Sufficient Financial Resource No enterprise could be set up without capital. Before commencing business, the sources of financial availability must be estimates capital is needed meet out other purposes.

5. Assembling Various Element of production According to the size of business, the entrepreneur
should manage to assemble all such business components and have co-ordination among them. In the present complex industrial age, Co-ordination of the factors of production must be made useful in view of the nature of business.

6. Approproximate Organised Structure The success of business depends upon its proper
organization. Various functions should be distributed separately in different departments and section. This includes the determination of the responsibilities and entrusting of rights of various deptt.

7. Selection of Efficient Employees The entrepreneurs should select the employees carefully
keeping in view their qualifications, abilities and efficiency. Work must be allocated in accordance with their abilities; the number of employees would depend on the size and nature of the business. Employee should be efficient, honest, diligent and experienced employees. 8.Purchase and Production Policy The entrepreneur should determine policy for purchase and production. It is to decided within the purchase policy that where form how, in what quantity and

when should the raw material be procured. Within production policy all the matter must be carefully considered. 9.Determination of the sales policy Before starting the business, it is essential to decide sales policy. The following matter could be known through market analysis. a. The probable market for commodities b. Competing producers. c. Finding out the likings needs of the consumer etc. The success of business of business most depends upon the suitable sales policy.

10. Efficient Management System For the success of business it is essential that the total enterprise
must be kept under the control of the efficient managers. In the present complicated business age efficient management is the foundation pillar of the business. 11. Efficient Office Procedure In order to run any business properly directed and regulated, an is needed. According to the basis and nature of business, office may be divided into various sections or departments. The procedure of the office must be easy and automatic. The use of labour saving revises is desirable in the office.

12. Study of Industrial and Financial Policy While starting business, the business main must study the
governmental economic and industrial policy. Moreover, the acquisition of sate approval or getting licenses, too is quite essential. Qs.3 What do you mean by search for business idea? Or Write short notes on a.Search for Business Idea. b.Source of Idea. c. Selection of Project Idea Ans. A. Search for Business Idea. - A business is created out of an idea. It is the seed for growing an enterprise. The idea may owe its origin from any source. The idea may relate to the starting of a new business or to takeover of an existing enterprise. It should be sound and workable. The promoter has to be imaginative and foresighted to discover a business idea. Sources of Idea An idea for business may be searched out from the following sources: 1.Market Surveys Observing the markets can reveal a business idea. Market surveys reveal the trend of demand, and price trends in the market. An entrepreneur can thin find out the most profitable line of business.

2. Expert Advice Advice of professional experts like dealers, bank managers, advertising agencies
may also help to find new business idea. 3.Consumers The consumer is the foundation of the business consumers habits and taste may be the best source of business idea. 4.Social and economic changes An entrepreneur can observe the changes in social and economic status of people. Social changes can vast opportunities for a new venture. 5.Emerging Technologies Knowledge of indigenous or foreign technologies may be another source of project idea. 6.Commercial Journals Commercial journals also provide information relating to new business or products. 7.Trade Fairs An entrepreneur can get lot of ideas by visiting trade fairs and exhibitions at national and international level.

8. Foreign Market an entrepreneur in under development countries may keep touch with
developments. He may visit foreign market in search of ideas for promoting a new venture.

d. Selection of Project Idea

1 Technical Feasibility The idea is judge in view of availability of necessary technology, machinery, labour skill and raw material. The technical advice may also be taken from some expert. 2 Commercial Viability The major factors are needed to be considered to access the viability of ideaa. Good market scope i.e gap between demand and supply. b. Attractive return on investment 3. Compatible with Govt. Regulation The project idea should not violated regulation and policy regarding investment and production. 4. Risk in the Project Various risk, such as changes in demand, technological development, competition etc. should be assessed before selecting a particular idea. Many more criteria can be kept in view while selecting a project idea.