PROBLEMS AND PROSPECTS OF WOMEN ENTREPRENEURSHIP IN

GLOBALIZATION SCENARIO
GUDURU NARESH*
Assoc. Professor & Research scholar KLUniversity
Abstract

Indias first Prime Minister, Pandit Jawaharlal Nehru, said

When women move forward, the family moves, the village moves and the nation moves.
The educated women do not want to limit their lives in the four walls of the house. They
stipulate 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.
Traditionally, women were concentrated to their family life and were satisfied with
3Ks-kitchen, kids and knitting. Apart from the household activities, they were engaged mostly in
agriculture or at the most in families trade activities. But, with the development of small scale
industries in the post independent era, there was extension of kitchen activities of women from
3Ks to 3Ps viz. pickles, powder and pappad. With the spread of education and awareness, the
women entrepreneurs had further shifted from the 3Ps to the higher level of activities. i.e.
3Es viz. engineering, electronics and energy. Now women entrepreneurs have come to occupy a
significant place in most of the countries, particularly in terms of their contribution towards
economic development. Even in developed countries like U.S.A, Canada, U.K, France, there has
been a phenomenal increase in the number of self employed women in recent years.
Despite all the social hurdles, many women have become successful in their works. These
successful women have made name & wealth for themselves with their hard work, diligence,
competence and will power. They should explore the prospects of starting new enterprise;
undertake risks, introduction of new innovations, coordination administration and control of
business and providing effective leadership in all aspects of business
______________________________________________________________________________
Keywords: Women entrepreneurs- women entrepreneur in the new millennium- challenges
faced -leading business women of india- factors influencing women entrepreneurs- problems and

prospects of women entrepreneurship in india, -challenges in the path of women entrepreneurspromotional efforts supporting women entrepreneurs in india

Introduction
E:xamine needs, wants, and problems to see how they can improve the way needs and wants are met and
problems overcome.
N: arrow the possible opportunities to one specific "best" opportunity.
T:hink of innovative ideas and narrow them to the "best" idea.
R:esearch the opportunity and idea thoroughly.
E:nlist the best sources of advice and assistance that they can find.
P:lan their ventures and look for possible problems that might arise.
R:ank the risks and the possible rewards.
E:valuate the risks and possible rewards and make their decision to act or not to act.
N:ever hang on to an idea, no matter how much they may love it, if research shows it won't work.
E:mploy the resources necessary for the venture to succeed.
U:nderstand that they will have to work long and hard to make their venture succeed.
R:ealize a sense of accomplishment from their successful ventures and learn from their failures to help
them achieve success in the future.

The Indian sociological set up has been traditionally a male dominate done. Women are
considered as weaker sex and always to depend on men folk in their family and outside,
throughout their life. They are left with lesser commitments and kept as a dormant force for a
quite long time. The Indian culture made them only subordinates and executors of the decisions
made by other male members, in the basic family structure. The traditional set up is changing in
the modern era. 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. Indian families do have the privilege of being envied by the
westerners, since women here are taking more responsibilities in bringing up children and

maintaining a better home with love and affection. At the family level, the task of coordinating
various activities in a much effective manner, without feeling the pinch of inconveniences, is
being carried out by the women folk. Thus, the Indian women have basic characters in
themselves in the present sociological and cultural setup as follows.

Indian women are considered as Sakthi, which means source of power.

Effectively coordinating the available factors and resources.

Efficient execution of decisions imposed on them

Clear vision and ambition on the improvement of family and children.

Patience and bearing the sufferings on behalf of others and

Ability to work physically more at any age.

Women sector occupies nearly 45% of the Indian population. The literary and educational status
of women improved considerably during the past few decades. More and more higher
educational and research institutions are imparting knowledge and specialization. At this
juncture, effective steps are needed to provide entrepreneurial awareness, orientation and skill
development programmes to women. The institutions available at present are very limited.
Moreover, their functions and opportunities available with them are not popularized much.
QUALITIES REQUIRED FOR AN ENTREPRENEUR: An effective entrepreneur requires
certain basic qualities, which can be listed as follows.
Innovative thinking and farsightedness.
Quick and effective decision making skill.
Ability to mobilize and marshal resources.
Strong determination and self confidence.
Preparedness to take risks.
Accepting changes in right time.
Access and alertness to latest scientific and technological information.
Matching the basic qualities required for entrepreneurs and the basic characters of Indian women
reveal that, much potential is available among the Indian women on their entrepreneurial ability.

This potential is to be recognized, brought out and exposed for utilization in productive and
service sectors for the development of the nation.

Concept of Women Entrepreneurs

According to the Government of India, a woman entrepreneur is defined as an
enterprise owned and controlled by a woman and having a maximum financial interest of 51% of
the employment generated in the enterprise to women. This definition has been criticized by
many on the ground that the condition of employing more than 50% women workers in the
enterprises owned and run by the woman is discriminatory.
Role of Women Entrepreneur in the Present
It is a general belief in many cultures that the role of women is to build and maintain the
homely affairs like task of fetching water, cooking and rearing children. Since the turn of the
century, the status of women in India has been changing due to growing industrialization,
urbanization, spatial mobility and social legislation. With the spread of education and awareness,
women have shifted from kitchen to higher level of professional activities. Entrepreneurship has
been a male-dominated phenomenon from the very early age, but time has changed the situation
and brought women as today's most memorable and inspirational entrepreneurs. In almost all the
developed countries in the world women are putting their steps at par with the men in the field of
business. Except some Islamic countries of the world the law of the country has been made in
favour of the development of women entrepreneurship.
The role of Women entrepreneur in economic development is inevitable. Now-a-days
women enter not only in selected professions but also in professions like trade, industry and
engineering. Women are also willing to take up business and contribute to the Nation's growth.
There role is also being recognized and steps are being taken to promote women
entrepreneurship. Resurgence of entrepreneurship is the need of the hour.
Women Entrepreneurs in India represent a group of women who have broken away from
the beaten track and are exploring new vistas of economic participation. The governments draft
of the national perspective plan for Women, the period of 1988 to 2000 A.D. has mooted a wide
range of proposals including job reservations for women in anti-poverty programmes,
wholesome projection of women in media and provision of through going legal safeguards to

women in various endeavors. The government has 27 beneficiary oriented and 45 training
programmes designed for women. At present, there are 1084 industrial training institutes of
which 126 are exclusively for women with approximately 5600 seats for them. Lijjat has become
a house hold name due to its determination and marketing efforts of its sister members. The total
number of sister-members involved in the institution is over 40,000. In Mumbai, currently 8000
sister members are self employed in Lijjat pappad.
LEADING BUSINESS WOMEN OF INDIA
1. Ekta Kapoor-Creative Director-Balaji Telefilms.
2. Jyoti Naik-Chairperson, Lijjat Papad.
3. Lalita D Gupta-Managing Director, ICICI Bank.
4. Naina Lal Kidwai-Vice-Chairman-HSBC Securities.
5. Ranjana Kumar-Chairman-NABARD
6. Ritu Kumar-Fashion Designer.
7. Ritu Nanda-CEO-Escolife
8. Shahanaz Hussain-CEO- Shahanaz Herbis
9. Renuka Ramanath-CEO-ICICI Ventures.
10.Priya Paul-Chairman, Apeejay Park Hotels.
11.Rupa Mahanthy-Executive-Tata Steel.
12.Rekha Marsalamani-Executive-TELCO.
13.Sudha Murthy-Chairperson-Infosys Foundation.
14.Ravina Raj Kohli-Media Personality-Ex-President-STAR News.
15.Amrita Patel-Chairperson, NDDB-Gujrat.
Factors Influencing Women Entrepreneurs
1) The following are the major factors influencing women entrepreneurs.
2) Economic independence.
3) Establishing their own creativity.
4) Establishing their own identity.
5) Achievement of excellence.
6) Building confidence.
7) Developing risk-taking ability.
8) Motivation
9) Equal status in society.

10) Greater freedom and mobility.

Problems and Prospects of Women Entrepreneurship in India

With the growth of industrialization, urbanization, education and democratic system in
the country after independence the tradition bound Indian society has undergone a sea change.
One striking evidence of this is that evidence of this is that women have started seeking not only
the gainful employment in several fields in increasing number but also started to take active
interest in entrepreneurial activities. The growth of entrepreneurial field is hunted by a number of
difficulties, sung and problems faced by women entrepreneurs.
In brief the women entrepreneurs are facing the following problems in India.
1. Stiff competition from male entrepreneurs
2. High prices of raw materials required
3. Financial and managerial constraints
4. Technical difficulties
5. Low ability to bear economic, social, technical and environmental skills.
6. Discrimination in the selection for entrepreneurial development training.
7. Low level of favorable family back-ground in the field of family cooperation education,
occupational and entrepreneurial base.
8. Inferiority complex among the lower and middle class women community.
9. Family affairs, child and husband care.
10.Lack of specialized entrepreneurial training programmes best suited to the temperament of
women entrepreneurs.
11. Lack of specialized entrepreneurs.
12. Lack of infrastructural facilities in urban as well as rural areas.
13. Restrictive policy of state governments and other promotional agencies in granting loans,
incentives, concessions and subsidies specifically meant for women Entrepreneurs, and;
14. Late commencement of women entrepreneurship in the country.
Functional problems:a) Lack of awareness of potentials
b) Lack of training
c) Start up problems like seeking approvals and licences

d) Obtaining seed capital: lack of own savings.

e) Providing guarantees to lenders: no own assets
f) Recruitment of skilled manpower: cultural constraints
g) Problem in financial management: lack of exposure
h) Problems in production: physical limitations.
i) Raw material procurement: less mobility and unable to make longer tours
j) Administrative problems: social cultural factors
k) Marketing problems in the era of globalisation: less mobile.
Cultural problems:a) Fear of success: may lose affiliation with friends if successful as an entrepreneur
b) Low recognition in society
c) Pardha system
d)Family and religious duties given more importance in life.
Social problems:a) Discriminating treatment: do not get a share in fathers business/ property
b) Family notions about Ideal woman
c) Conflicts with values
d) Role conflicts: professional Vs personal life
e) Low image associated with working women f) Male dominance in family and market
g) Problems in production: physical limitations and can not stay out at night.
Psychological problems:a) Susceptibility to negative attitudes
b) Low level of motivation
c) Lower level of self-confidence
d) Lower self-conceptualization
e) Easily fall into depression
f) Lack of persistence
Face up to in the path of women Entrepreneurs
a) Lack of Confidence
b) Problems of Finance and Working Capital
c) Socio-cultural Barriers
d) Production Problems

e) Production Problems
f) Inefficient Marketing Arrangements

Promotional Efforts Supporting Women Entrepreneurs in India

Womens entrepreneurship is a relatively new concept in India. The concern to develop more
women entrepreneurs emerges from the fact that women represent 50 per cent world population,
but receive only per cent of the world income and less than 1 per cent of the worlds assets.
Efforts have been made by various governmental and non-governmental agencies all over to
promote women entrepreneurs. The results are somewhat encouraging. Entrepreneurship
development in India has received much attention during the last few years. Several policies,
Programmes, procedures and institutions have been formulated to support development of
entrepreneurship among women in India.
The following measures may be adopted to solve the problems faced by women entrepreneurs in
India;-

1.Finance Cells: In various public financial institutions and banks, special cells may be opened
for providing easy finance to women entrepreneurs. Women officers and clerks should man these
cells. Efforts should be made to provide finance at the local level. Finance to women
entrepreneurs may be provided at concessional rates of interest and on easy repayment basis.
2. Marketing cooperatives: - Encouragement and assistance should be provided to women
entrepreneurs for setting up cooperatives. These cooperatives will pool the inputs of women
enterprises and sell them on remunerative prices. Such cooperatives will help to eliminate the
middlemen. Central and State Government should give priority to women entrepreneurs while
purchasing for their requirements.
3. Supply of Raw materials:-Scarce and imported raw materials may be made available to
women entrepreneurs on priority basis. A subsidy may also be given to make the products
manufactured by women entrepreneurs cost competitive.
4. Education and Awareness: - It is necessary to change negative social attitudes towards
women. Elders particularly mothers and mother-in-law need to be made aware of the potential of
girls and their due role in society. Unless the social attitudes are made
positive, not much progress can be made by women entrepreneurs.

5. Training Facilities;- Training and skills are essential for the development of entrepreneurship.
Training schemes should be so designed that women can take full advantage. Family members
do not like women to go away to far off places for training.
Therefore, mobile training centres should be arranged. Similarly, part time training facilities,
especially during afternoons will attract more women to acquire skills. Additional facilities like
stipend, good hygienic crches, transport facilities etc. should be offered to attract more and
more women to the training centres.
AGENCIES FOR HELPING WOMEN ENTREPRENEURSSome of the agencies which helps new entrepreneurs to set up their new enterprises.

National Laboratories and Institutes.(National physical Laboratory, New Delhi, Central

Fuel Research Institute, Dhanbad, Bihar)

Commodity Boards and other organizations.(The all India Handicrafts Board,

Ramkrishapuram, New Delhi, Tea Board, Kolkata)

Specialized Trade Publications and (Automobile India, new Delhi, Central Glass &
Ceramic Research Institute Bulletin, Kolkata)

Technical Consultancy Organisations. (Andhra Pradesh Industrial & Technical

Consultancy Organisation Ltd Hyderabad,

Gujarat Industrial & Technical Consultancy Organisation Ltd. Ahmedabad) However,

entrepreneurs are advised to contact at least the following agencies to acquire essential
knowledge about small scale industries, procedures and formalities.

District Industries Centre v Directorate/Commissioner of Industries Office

State Financial Corporation

Technical Consultancy Organisation

Agencies Conducting Entrepreneurship Development Programmes.

PROGRAMMES SUPPORTING WOMEN ENTREPRENEURSHIP:

Swa-Shakti Project: A project for womens development, with assistance from International
Funds for Agricultural Development (IFAD), was initially taken up in Tamil Nadu. That project,
under implementation for the last 9 years, has shown significant results insofar as empowerment
of women is concerned.

 Rural Women Development and Empowerment Project: The department has been
exploring, for some time past, the possibility of a womens development project, with assistance
from the various aid agencies. The overall objective of the project is to launch a programme
which strengthens the processes to promote the social and economic development of women and
raise an environment for social change to improve their quality of life.
Indira Mahila Yojana (IMY): The IMY is a scheme that aims at organizing women at grass
root level to facilitate their participation in decision making and their empowerment. The scheme
was launched in 1995 on pilot basis in 200 blocks, over a strategy to co-ordinate and integrate
components of sectoral Programmes and facilitate their convergence to empower women.
Support to Training and Employment Programme for Women (STEP): The programme of
STEP launched in 1987 aims to upgrade the skills of poor and asset less women, mobilize,
concentize and provide employment to them on a sustainable basis in the traditional sectors
of agriculture, animal husbandry, dairy, fisheries, handlooms and handicrafts.
Employment and Income Generation-cum- Production Units (NORAID): Under the
scheme, which is assisted by Norweigian Agency for International development (NORAID),
projects of skill development and training of achieving self reliance through income generation
for women are supported. These projects of training for income generation are in the nontraditional trades of electronics, watch manufacturing/ assembly, computer programming,
garment making, handlooms etc.
Rashtriya Mahila Kosh (RMK) : The National Credit Fund for Women is an innovative
mechanism for reaching credit to poor women. Through access to
credit, it aims to raise the earning capacity of women by enhancing their productivity and selfreliance.

Conclusion:
In this study we have assessed the importance of womens entrepreneurship. From an Indian
-economic perspective we have analyzed the characteristics of womens entrepreneurship and offered a
set of policy recommendations. As we still do not know enough of the entrepreneurial process and
women we have argued that better knowledge about the economic importance of womens
entrepreneurship and their particular strengths, weaknesses and opportunities, is central. As low rates
of womens entrepreneurship are both related to the status of women and the status of
entrepreneurship, we have suggested that increasing the abilities of women to participate in the labour
force and generally to improve the position of women in society and generally increase the possibility
to engage in entrepreneurship is central. However, more targeted initiatives are also needed to support
women entrepreneurs and would be entrepreneurs
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