The focus on women entrepreneur of India is essential. There was a time when woman entrepreneurs in India used to be in the Informal sector usually because of the lack of capital, labour and market know-how and social-cultural norms of India. But today women are present across sectors as varied as technology, clinical research and retail, still poised to burst a common myth that women-led businesses do not grow beyond a certain scale.
Even we look at the developed countries we see that women are actively participative in business and trade activities, including agriculture, without any social or other restrictions. But in India, there are still many social and cultural restrictions on women. Despite all the social hurdles in India, many women have become successful in their works. The urban markets are buzzing with many women entrepreneurs who have won market space.
Slowly and gradually, many women entrepreneurs are stepping up to show they have the appetite, skills and vision to take a shot at scaling their young ventures.
An entrepreneur is anyone who is working for themselves and retainings profits or anyone who owns an enterprise with workers. The origin of the basic word “entrepreneurship” is from the French word “Entree” “To enter” and “Pendre” “to take” and in general sense applies to any person starting a new project or trying a new opportunity.
The definition given by the Government of India about women entrepreneurship, “An enterprise owned and controlled by a Women and having a minimum financial interest of 51% of the capital & giving at least 51 % of the employment generated in the enterprise to Women”.
According to National Knowledge Commission [NKC] “Entrepreneurship is the professional application of knowledge, skills and competencies and/or of monetizing a new idea, by an individual or a set of people by launching an enterprise de novo or diversifying from an existing one thus to pursue growth while generating wealth, employment.”
Changing Face of Business
Entrepreneurship refers to setting up a new business to take advantage of new opportunities. Women are taking more interest in Entrepreneurship in the present years than past. During the last two decades, increasing numbers of Indian women have entered the field of entrepreneurship and also, they are changing the face of business, now women are successful in this as they have desirable qualities for entrepreneurship development.
In the process of Entrepreneurship, women have to face various problems and these problems get doubled because of their dual role as earners and homemakers. In India, most homemakers want to start their own business but there are so many problems faced by them. They feel frustrated in a dual role.
The government started several programmes for the training of women entrepreneurship. Training programs create interest among women and enhance their skills and also to build the social attitude and increase their confidence.
Some Western multinationals have also developed remarkable new business models to penetrate emerging markets using women, and at the same time, empower them through creating spaces for learning.
UNO 2003, Report on entrepreneurship says that ‘men are 50 per cent more likely than women to start a new business: 13.9 per cent of men become entrepreneurs compared to only 8.9 per cent of women.
Entrepreneurship is the core of economic development. An entrepreneur is a key factor of entrepreneurship. The salience of Entrepreneurship in India has intensified in recent times, particularly with the rise in knowledge-intensive services. Crucial efforts initiated after economic liberalization including systematic attempts to reduce the ‘license raj’, greater efforts to make finance more easily accessible to entrepreneurs and other institutional support to ‘techno- preneurs’ have helped improve the climate for Entrepreneurship. And in the present time, women are an emerging economic force.
Changing Picture
Women constitute the family, which leads to society and family. The social and economic development of women is necessary for the development of any country. Every woman wants to start their own business but cannot succeed in our Indian environment in the way it should be. Due to changing environment, now men have easily accepted women entrepreneurial opportunities. It is interesting to see our increasing service sector also promotes women entrepreneurship.
Women are generally perceived as homemakers with little to do with the economy or commerce. Now, this picture is changing. Desire to build wealth, they wish to capitalize on business ideas they had, the appeal of startup culture, a long-standing desire to own their own company and working with someone else did not appeal to them.
So, in Modern India, more and more women are taking up entrepreneurial activity especially in medium and small-scale enterprises. Even as women are receiving education, they face the prospect of unemployment. In this background, self-employment is regarded as a cure to generate income.
The Planning commission as well as the Indian government recognizes the need for women to be part of the mainstream of economic development. Women entrepreneurship is seen as an effective strategy to solve the problems of rural and urban poverty.
Yes, the trend is changing. Women across India are showing an interest to be economically independent. Women are coming forth to the business arena with ideas to start small and medium enterprises. They are willing to be inspired by role models -- the experience of other women in the business arena. No doubt, the small-scale industry plays an important role in absorbing around 80% of employment.
Schemes
Entrepreneurship development for women is an important factor in the economic development of India. Rural women are being encouraged to start cottage industries. Like micro-enterprises have been encouraged by the government by various schemes-such as the Integrated Rural Development Program (IRDP), Training of Rural Youth for Self-Employment (TRYSEM), and Development of Women and Children in Rural Areas (DWCRA).
The aim is to remove poverty through entrepreneurial programs.
OBJECTIVES OF THE STUDY
- To study the beginning of Women Entrepreneurship in India from the informal sector. To study the Nature of Women Entrepreneurship.
- To study the help provided by Self Help Groups to economically deprived women.
- To make aware women entrepreneurs with the financial bodies which provide help.
- To study the few women entrepreneurs of India who became an inspiration for others.
- To study the problems faced by women.
- To give suggestions for the Indian government and women entrepreneurs.
RATIONALE BEHIND WOMEN ENTREPRENEURSHIP
India has been a flourishing ground for enterprises, and this phenomenon has witnessed an unprecedented surge in the last few years. Women-owned businesses are one of the fastest-growing segments of our economy, according to the Small Business Administration. Many women entrepreneurs are stepping up to show they have the appetite, skills and vision to take a shot at scaling their young ventures. There was a time when women entrepreneurs used to be in the Informal sector usually because of the lack of capital, labour and market know-how and social-cultural norms of India. More than ever before, change is the only constant in life, especially so in industry, and as a consequence, tremendous opportunities are opening up for women entrepreneurs.
It is true that the presence of women entrepreneurs is very low in India, but one can look at it as another great opportunity. Barely a decade ago, had few people anticipated that the proportion of women in call centers and the IT industry would rise to be what it is today.
Classes of Society
Similarly, women as entrepreneurs can be game-changers and change the rules of the game in the industry. Right now, women from upper-class families are able to make the transition from homemaker to entrepreneur more easily compared to their counterparts from the middle and lower classes of society. The urban markets are buzzing with many women entrepreneurs who have won market space and mind space, recognition and awards.
It is estimated that presently women entrepreneurs account for about 10% of the total entrepreneurs in India. It is also clear that this percentage is growing every year. If prevailing trends continue, it is not unlikely that in the next five years, women will comprise 20% of the entrepreneurial force in India.
As women are now overtaking their male peers when it comes to education, having higher education degrees is one of the significant characteristics that many successful female entrepreneurs have in common.
A recent international study found that women from low to middle-income countries [such as Russia, Asia and the Philippines] were more likely to enter early-stage entrepreneurship when compared to those of higher-income countries [such as Belgium, Sweden and Australia]. A significant factor that may play a role in this disparity can be contributed to the fact that women from low-income countries often seek an additional means of income to support themselves and their families. Overall, 40 to 50 per cent of all small businesses are owned by women in developing countries.
Economics 2050
Recent surveys, such as those undertaken by Goldman Sachs and Price Waterhouse Coopers, have estimated that India has the potential to be among the world’s leading economies by 2050. Further, India’s economy can potentially gain significantly from the country’s characteristic features — a democratic open society, a strong technology base, unparalleled diversity, vibrant capital markets [including growing private equity and venture capital markets], an increasingly youthful population [50% of India is 25 years and younger], a sizeable market of a large number of customers with vast unmet needs as well as an environment of full and free competition in the private sector.
NATURE OF WOMEN ENTREPRENEURSHIP
With the arrival of media and diverse prospects, modern women are fast-growing from job aspirants to job creators. They are making their marks as interior decorators, journalists, garment manufacturers, fashion designers, etc. and are equally contributing to the nation's economy. While discussing women entrepreneurship we cannot limit ourselves, it needs to widen our concern and area.
Agriculture
It was the basic source of livelihood for the people for ages. In rural India, 89.5 per cent of the total female labour force is employed in agriculture and allied industrial sectors.
Vegetable, Fruits
and Fruit Juice Vendors
Women are growing vegetables, fruits, dry fruits and selling also. But they never are seen as entrepreneurs. Many self-help groups are formed by women to loan and develop their businesses. Now they are becoming self-sufficient, owing to their space in the market and society.
Train Vendors
The vendors or business fellows roaming in moving trains are not recognized as businesspersons. They are unlicensed entrepreneurs. No Bank finances them but they, with a small amount of capital and cash, do their business between risks of life. They are the entrepreneurs regularly facing risk yet surviving and serving their family and society.
Roadside Stalls, Food, Chaat, Snacks etc
When somebody sees these stalls, they seem to be doing very small selling. But if one will look it deeply, it is a billion or more industry in every state of the country. Women from east to west and north to south had a hold in the industry. These are the business where women entrepreneur had shown their presence and still needed to be recognized as entrepreneurs.
Home-Based Production Units
Such as Soaps, washing powder, basket making, mat weaving, beedi making, lace making and the production of agarbatti candles, garments, telephone mats, handicrafts, paper dice, ink, mangodi, papad, pickles jams, squash etc.
Clothing, Garment and Boutiques
It is a field where rural women are involved as a weaver, dyer, printer, designer etc. They are cutting sewing, preparing designs, marketing the product, selling in urban, semi-urban, rural, and remote areas.
On the other hand, urban women are running exclusive boutiques. For them opening a boutique is the first thing that comes in any woman’s mind.
Beauty Parlour
This small business only needs a little investment in training, quality products and basic equipment. So, women are easily turning a spare room into a cosy beauty salon. This beauty business suits women of every age. And those women who have sound finances provide an unparalleled salon and spa experience for their clientele.
Fitness Center (Gym) and Yoga Classes
This business requires a bit extra investment to set up but in the resulting profit are great. The gym equipment is expensive but is a one-time investment, so women have ventured into this too. Since almost everyone is health conscious these days, the business has become profitable. It is also giving added benefits to yoga experts and trained aerobics trainers. Many women are running just yoga training center from their homes.
Internet Business
The Internet has changed our total lifestyle. With the help of some computers and internet connections women are running cyber cafes. Some are putting their skills to use and start freelancing on the web writing blogs, articles and feeds for websites.
Gift Shop
Few women are running gift shops, as no prior experience is required in setting up a gift shop business. Everyone knows what to expect in a gift shop, so women easily order things from a trusted dealer accordingly or search the Internet for the latest gift items and build up their stock in their stores to sell.
Restaurant
Most women are talented and passionate about cooking. Therefore, this business idea is working well. Women even can be seen running their restaurant, café and catering services.
Daycare/Crèche
Women love children, hence they have started up a small daycare center or crèche at their homes. Even spending the day with kids is fun and profitable at the same time for them. Thus, they can easily balance work and home life.
Creative Classes
Running on a small to medium scale music or dance academy, handicraft, agarbatti, candles making, cooking etc.
Interior Decoration Store
Women have a good sense of designing and keeping their homes beautiful, hence they have opened an Interior designing business.
Pet Shop
Few urban women have started a shop to cater for the needs of pet owners with items like pet foods, accessories, clothes, cages, kennels, etc.
Consultancy
Women who are having a good network of contacts with professionals from different industries are breaking barriers and blazing trails in Consultancy.
Business Agents
Many women are agents to sell cosmetic and branded plastic cooking utensils like Tupperware.
Home Tuitions and Coaching Classes
Women are also running home tuitions in the field she is expert in, and many are earning handsomely through their coaching classes.
Jewellery Designing
Woman keen attention to detail is evident in the one-of-a-kind pieces she designs and often handcrafts is a creative gift to the world of fashion. Influenced by the rich and eclectic culture of India, her designs are intrinsically vibrant, dynamic and attuned to the times.
Women in Knowledge Intensive
Sectors are taking entrepreneurship. They are coming up as software professionals. Like Stuti Jalan has established Communication Network. They are establishing their ventures.
Service Entrepreneurship
An emerging field for entrepreneurship services, where women are registering their presence and proving their intellect and traits.
Security Services
Is an emerging area where they are establishing themselves.
SELF HELP GROUPS FOR FINANCIAL SUPPORT FOR ECONOMICALLY DEPRIVED WOMEN
Self-help groups are started by non-governmental organizations (NGOs) that generally help groups are seen as instruments for a variety of goals including empowering women, developing leadership abilities among poor people etc.
Financial Institutions Assisting Women Entrepreneurship in India
For the past several years, financial institutions have been playing a pivotal role in giving financial assistance and consultancy services to women entrepreneurs. These institutions include:
- National Small Industries Corporation (NSIC)
- All-India Development Banks (AIDBs), viz. IDBI, IFCI,ICICI , IIBI, IDFC and SIDBI
- Specialised Financial Institutions (SFIs),viz. Exim Bank and NABARD
- Investment Institutions, viz. LIC, GIC, NIC,NIA, OIC, UII and UTI
- Regional/ State-Level Institutions, viz. NEDFI,SIDCs and SFCs
- Commercial Banks, vii) Co-operative Banks, etc.
MOOWES provides comprehensive support to women
entrepreneurs to achieve success in the business. Its main aim is to aid women
in marketing their products through exhibitions and thus provide an opportunity
to tour the country also.
FEW WOMEN OF INDIA BECAME AN INSPIRATION FOR ALL OTHER WOMEN WHO STRIVE TO ACHIEVE GREAT HEIGHTS IN THEIR LIVES
Any understanding of Indian women, their identity, their
role-playing, and breaking the glass ceiling by blazing new paths, will be
incomplete without a walk down the corridors of Indian history where women have
done multiple roles and responsibilities.
- Kanika Dewan: The Diva who Designed Floors of IGI’s Terminal 3
- Nidhi Saxena, Karmic Pharmaceuticals
- Sneha Roy & Sananda Misra, Toptomato.in
- Vijaya Pastala, under the Mango Tree
- Mitali Kalra, Zao Foods
- Shahnaz Husain Ayurvedic Beauty Care
- Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd
- Ekta Kapoor, Creative Head of Balaji Telefilms
- Neelam Dhawan, Managing Director, Microsoft India
- Indu Jain, the multi-faceted lady used to be the Chairman of the Times Group-The most powerful and largest Media house India
- Preetha Reddy, Managing Director of Apollo Hospitals
- Ranjana Kumar, Currently Vigilance Commissioner in Central Vigilance Commission
- Mallika Srinivasan, Currently the Director of TAFE- Tractors and Farm Equipment.
PROBLEMS FACED BY INDIAN WOMEN ENTREPRENEURS
Women entrepreneurs face so many problems in aspects of finance, marketing, health, family, and other problems.
The major problem faced by women are as
- Lack of family support- Sometimes the family may make the women feel guilty of neglecting household duties in her pursuit of business obligations. Cultural traditions may hold back a woman from venturing into her own business.
- Lack of confidence and faith-lack of role models undermines the self-confidence of women entrepreneurs. The activity of selling is considered abhorrent to the female gender.
- Lack of capital-traditional sources of finance like banks is reluctant to lend to women entrepreneurs especially if they do not have any male or family backing. This is especially true of lower-income females. Women do not have adequate finance or legal knowledge to start an enterprise.
- Lack of right public/ private institutions: Most public and private incentives are misused and do not reach the woman unless she is backed by a man. Also, many trade associations like ministries, chambers of commerce do not cater to women, expecting women’s organizations to do the necessary thing.
- People are still very hesitant to place big orders when they see a woman entrepreneur. They give a small order and check the capability first. This challenge needs to be overcome.
- Lack of marketing knowledge among women entrepreneurs because of lack of mobility and social network.
SUGGESTIONS TO ENHANCE WOMEN ENTREPRENEURSHIP
- Rural entrepreneurship is the answer to the removal of rural poverty in India. Therefore, there should be more stress on integrated rural development programs. The problem is that most rural women do not think of entrepreneurship as a career option. Therefore, rural women need to be motivated to take up entrepreneurship as a career, with training and sustaining support systems providing all necessary assistance.
- Indian government should create ‘one-stop shops’ to provide all relevant information needed to start an entrepreneurial activity for women. There are many websites relating to Entrepreneurship in India.
- The government must evolve appropriate policies to help women entrepreneurs. Networking facilities must be provided as well as adequate entrepreneurship awareness training should be provided using the help of local NGOs. Credit facilities must be made available and marketing help must be provided. All these will help foster a culture of entrepreneurship among women in India.
- Financers need to become more active, particularly in knowledge-intensive sectors and need incentives for greater involvement. To create incentives for seed capital funding, some steps can be: establishing a secondary market for smaller companies, creating new instruments for start-up funding and providing financial literacy to start-ups.
- There should be synergies between education (including modern vocational education training/skill development), Innovation (converting ideas into wealth and employment) and Entrepreneurship among women should be encouraged.
- There is also a need to significantly increase Business Incubation for Entrepreneurship (BIE) among women by comprehensively exploring policy options to improve access to financing.
- Women need to learn more about their market and the competition prevailing in the market. They should promote their product through advertising and other popular media channels. Acquaint yourself of the fast-changing market conditions by making optimum utilization of media and the internet.
- Women should be highly educated and trained in their area of knowledge so that they can attain expertise and understanding of all the major operational aspects of business administration. This will assist a woman to take balanced decisions beneficial for expanding her business network.
- Women should know various institutions in the financial industry which give their assistance in the form of loans, low rate interest schemes, incentives, etc. This will not only help women to kick start their business venture but would also ensure a constant supply of capital.
- Government should encourage women entrepreneurship in the formal sector by giving subsidies.
Key challenges
The key challenge for the government in higher education for women relates to ensuring its access, inclusiveness and excellence. In Vocational Education and Training (VET) there is a need to completely overhaul and modernize current institutions and practices.
CONCLUSIONS
No doubt, the reflection of Indian women in the entrepreneur world is played a significant role and we cannot ignore the contribution is immense towards the upliftment of economic development.
The journey of a women entrepreneur who uses simple things in innovative way to build a business while keeping the balance among family, personal interest, social contribution and business. There was a time when a woman used to make soft toys as a hobby only, then moved to puppet making and converted these skills into a business.
One should understand that women conditions in a country like India are different from western countries. The societal context is different in India. Business for her now not only profit maximization but also giving something more to herself and building goodwill in the society showcasing women empowerment, education, art and making a difference.
The potentiality and talent among the women have not been identified adequately with only about 10-12% of the women being entrepreneurs in India.
It this critical economic situation of the country, when the job market is very down, [the Covid-19 challenges and the Omicron] and those women who are very keen to set up their small, medium and large-sized enterprise, they should be encouraged as they can give employment to various other people. Even the cultural practices and socialization processes and government scheme awareness programs can further encourage these aspiring women. Especially those women who are self-developed vendors but in a true sense they are unrecognized entrepreneurs they should be given more attention by the government.
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