RIJS Volume 3, Issue 1 (January. 2014) ISSN:

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1 A Journal of Radix International Educational and Research Consortium RIJS RADIX INTERNATIONAL JOURNAL OF RESEARCH IN SOCIAL SCIENCE WOMEN ENTREPRENEURSHIP IN INDIA: OPPORTUNITIES AND CHALLENGES MR. GUNASHEKHAR.K Assistant Professor Dept. of Accounting & Finance College of Business & Economics Samara University, Ethiopia ABSTRACT Women Entrepreneur' is 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. Women are found indulged in every line of business from pappad to power cables. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation. Women in advanced nations are recognized and are more prominent in the business world. But the Indian women entrepreneurs are facing some major constraints. The present paper is focusing on the role and characteristics of women entrepreneurs and also highlights the constraints and opportunities of women entrepreneurs in India. Key words: Women Entrepreneur', exporters, constraints and opportunities etc. INTRODUCTION During the last two decades, Indian women have entered the field of entrepreneurship in greatly increasing numbers. With the emergence and growth of their businesses, they have contributed to the global economy and to their surrounding communities. The routes women have followed to take leadership roles in business are varied. Yet, most women business owners have overcome or worked to avoid obstacles and challenges in creating their businesses. The presence of women in the workplace driving small and entrepreneurial organizations creates a tremendous impact on employment and business environments. Indian women business owners are changing the face of businesses of today, both literally and figuratively. The dynamic growth and expansion of women-owned businesses is one of the defining trends of the past decade, and all indications are that it will continue unabated. For more than a decade, the numbers of women-owned businesses have grown at one-and-a-half to two times the rate of all businesses. Even more important, the expansion in revenues and employment has far exceeded the growth in numbers. 1 P a g e

2 The result of these trends is that women-owned businesses span the entire range of business life cycle and business success, whether the measuring sticks is revenue, employment or longevity. This strengthens the view that all governmental programs and policies should target at strengthening women s entrepreneurship in their native lands. Although, many of the earlier obstacles to women s business success have been removed, yet some still remain. This has initiated the scholars of entrepreneurship in small businesses to study the influences of and the impact on business ownership by women. The numbers of these research studies are growing steadily. Women owned businesses are highly increasing in the economies of almost all countries. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in the society. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. Women Entrepreneur is 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 glass ceilings are shattered and women are found indulged in every line of business from pappad to power cables. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation. In India, although women constitute the majority of the total population, the entrepreneurial world is still a male dominated one. Women in advanced nations are recognized and are more prominent in the business world. OBJECTIVES OF THE STUDY To know the need of women entrepreneurship in India. To study the characteristics of women entrepreneurs. To find out the opportunities and challenges of women entrepreneurs in India. WHY DO INDIAN WOMEN UNDERTAKE ENTREPRENEURSHIP? In spite of the growing number of female entrepreneurs, the share of female entrepreneurs is still significantly low when compared to their participation rate. However, there are several factors responsible for increasing the level of female entrepreneurship in India: Nature of Entrepreneurship: Women enter into entrepreneurial activity because regular employment does not provide them with the flexibility, control or challenge offered by business ownership. Motivation: Several evidences suggest that women do not lack the motivation to enter into business ownership. They are often highly motivated than their male counterparts to overcome the barriers to business start-up. Empowerment: Indian women are becoming more empowered now-a-days. Legislations are being progressively drafted to offer them more opportunities at various levels. Social Conditions: Population growth results in a strong positive relationship on entrepreneurial activity. Across genders, the increase in demand and competition for jobs pushes more people into necessary entrepreneurship. For women, in particular, the relatively high involvement in necessary entrepreneurship indicates that self-employment 2 P a g e

3 is used as a way to circumvent institutional and cultural constraints with respect to female employment, as well as a way to provide supplemental family income. Economic Conditions: Auspicious economic conditions favour the participation of women in entrepreneurial activity. The smaller amount of financial capital requirement and higher proportion of available bank loans positively correlates the level of female entrepreneurship to economic conditions. In fact, in a country like India, the relationship between the size of unofficial economy and entrepreneurial activity is positive. Literacy & Education: Increased levels of education have played a crucial role in initiating the process of entrepreneurship. It is not only the illiterate that are starting the businesses but those with education & skills are also exploiting profit opportunities. CHARACTERISTICS OF INDIAN WOMEN ENTREPRENEURS Indian women of today have taken many strides towards business ownership. The broad classification of women business owners include women who establish, inherit, or acquire a business; women who start businesses with spouses or business partners but are either at the forefront or behind the scenes; and finally, women who start fastgrowing or part-time or slow-growing firms. Although earlier researches on women entrepreneurs have suggested that significant differences existed between female and male entrepreneurs. However, more recent studies have shown that there are far more similarities than differences between women and men entrepreneurs in terms of psychological and demographic characteristics. The dominant predictors of success in case of women entrepreneurs are work experience and years of self-employment. Generally, women view their businesses as a cooperative network of relationships rather than as a distinct profitgenerating entity. This network extends beyond the business into the entrepreneur s relationships with her family and the community. Certain cross-cultural studies on women entrepreneurs have reported that their management styles emphasize open communication and participative decision-making, and their business goals reflect a concern for the community in which the business operates. The majority of women business owners operate enterprises in the service sectors, whereas the majority of male business owners operate enterprises in non service sectors, particularly manufacturing. Women are not only achieving economic independence and wealth creation for themselves, but through job creation, they are also providing opportunities for others, particularly for other women. A series of researches have shown that the workforce of women-owned businesses tend to be more gender balanced than the workforce of men-owned businesses, although women business owners are more likely to hire women. Put simply, an investment in women s entrepreneurship in an investment in the economic independence and well-being of all women. In comparison to their women counterparts who established their businesses two decades earlier, women who have started their businesses sometime during the past decade are more likely to have the following: Higher level of education, previous professional and managerial experience, as well as executive level experience. Greater appetitive for capital, both credit and equity Strong motivation for autonomy and achievement Dynamic personality Passion for what they do Creativity to innovate and implement 3 P a g e

4 Independence and self reliance High self confidence Willingness & ability to take risks Alertness to opportunities Ability to marshal resources Ability to respond to market & environment signals. WOMEN ENTREPRENEURIAL DEVELOPMENT IN INDIA: SOME NOBLE INITIATIVES A possible set of three inter-linked and inter-dependent clusters of recommendations can be aimed at pushing a larger number of women entrepreneurs towards growth opportunities, unlocking their potential as creators of wealth and jobs, and providing a more conducive legal and regulatory framework. These recommendations can also ensure the proper positioning of pull mechanisms to enable the growth-oriented women entrepreneurs to expand and grow in terms of investments, markets and profits. 1. Prioritizing and pushing at the micro-level: There is a large and seemingly ever-increasing number of women entrepreneurs operating in micro-enterprises and in the informal economy. They can be facilitated to grow into sustainable, formally registered & large enterprises with the help of following actions:- Conducting gender analysis for all entrepreneurial support programmes Gathering data on women and men entrepreneurs Applying target group segmentation to women entrepreneurs Using targeted approaches for priority categories in order to provide additional push to women entrepreneurs to the next level of growth. Promoting mobilization and organization of representative associations. Examining differential impacts of governmental policies, programmes and actions. Promoting development of demand-led supports for women entrepreneurs Promoting more flexible and innovative financial products by banks. 2. Unlocking and Unfettering Institutional Framework: Policies, laws and overall regulatory environment are frequently seen as barriers and disincentives to expansion and growth. However, they need to be promoted in such a way that women entrepreneurs see the advantages of and benefits that come with compliance. Reviewing impact of existing and new instruments on women entrepreneurs Identifying those instruments that act as barriers to expansion and growth Modifying or dismantling these instruments Taking account of the social and cultural contexts affecting policy implementation and redress inequalities and abnormalities Making use of IT and associations so as to minimize the administrative burdens on women entrepreneurs Holding regular consultations with key factors like women entrepreneurs, women entrepreneurs associations, financial institutions, etc, to review progress and identify new bottlenecks. 3. Projecting and Pulling to Grow and Support the Winners: The first two sets of recommendations are aimed at trying to push more women entrepreneurs into growth situations as well as ensuring that laws & regulations do not stand in their way. The third possible recommendation relates to facilitating and pulling the women entrepreneurs into situations where they can actively pursue growth strategies. Providing incentives for expansion and growth after removing barriers and disincentives Encouraging and rewarding dynamic representative associations of women entrepreneurs: 4 P a g e

5 Promoting strong links and synergies with existing major economic players. Profiling the economic and social contributors among women entrepreneurs to the national economy. Promoting and rewarding programmes that serve women entrepreneurs. Making full use of data gathered to inform new policies, programmes and supportive actions Ensuring synergies between (a) women related ministry (b) economic ministry (c) welfare & social development ministry in the government. With relevant education, work experience, improving economic conditions and financial opportunities, more women around the world are creating and sustaining successful business ventures. This will not only have an impact on the economies of the countries in which women own their businesses but also will change the status of women in those societies. It is likely that, as we begin this millennium, this will be the century of the entrepreneur in general and of the women entrepreneur in particular. Women Entrepreneurship is both about Women pose in society and the role of Women Entrepreneurship in the same society. Women are faced with specific obstacles (such as family responsibilities) that have to be overcome in order to give them access to the same opportunities as men. Also, in some countries, women may experience obstacles with respect to holding property and entering contracts. Increased participation of women in the labour force is a prerequisite for improving the position of women in society and self-employed women. CHALLENGES FACED BY WOMEN ENTREPRENEURS IN INDIA: One of the major obstacles faced by women entrepreneurs has been that they are not taken seriously. Even though women have achieved credibility as competent entrepreneurs in areas such as retail, personal services and business services, perceptions that women-owned businesses are less successful, credit worthy & innovative continues to be a barrier. Besides this, there are several other challenges being faced by Women Entrepreneurs: 1. Women hardly interact with other women who are successful entrepreneurs. This results in a negative impact on their networking skills. 2. The areas, where one can see women acting as entrepreneurs, are in the very typical women's sectors of 3Ps. This is also the area, where women are accepted in society to be experts in and thus have the capacity for entrepreneurial activities. 3. It is clear that, women have the responsibility of getting children and taking care of them. Very few societies accept fathers taking over the role of staying home and taking care of the children. Once these children are old enough to take care for themselves, they have to bear an additional responsibility of taking care of elder parents. If they want to become entrepreneurs, the society expects them to be able to do both: take care of family and home and do business. 4. Women are very critical when it comes to them can I really do this, am I good enough, maybe I have to learn more, others can do it better. It is quite interesting that many successful women have been educated in only girl s colleges and schools, which often deliver a safe environment to try out ones personal strengths, learn to overcome weaknesses and be proud of them. 5. Discrimination it is hard to believe but women are still treated differently in our society. Women do get lower salaries compared to men doing the same job; women do not have access to men dominated networks who take their decisions about successors in the company during golf plays or sauna meetings. 6. Missing networks through century s business men have build up their networks but women still have to learn to catch up. 5 P a g e

6 7. A lot of women tell stories about not being taken serious by bankers, when they wanted to get a loan for their business. Often enough, they have to bring their husbands or fathers to be able to be heard and receive financing. So, the domination of men in the banking world is a problem. OPPORTUNITIES OF WOMEN ENTREPRENEURSHIP Highly educated, technically sound and potentially qualified women should be encouraged for managing their own business rather than dependant on wage employment outlets. A desirable environment is necessary for every woman to inculcate entrepreneurial values and involve greatly in business dealings. The vastly opening up of opportunities for women are:- Eco-friendly Technology. Bio-Technology. IT Enabled Enterprises. Event Management. Tourism Industry. Telecom Sector. Plastic Industries. Floriculture. Sericulture. Herbal and Health Care. Food Processing. Education Sector. Initiatives for the Development of Women Entrepreneurs: The following are the proposed Initiatives for the development of Women Entrepreneurs in India: Vocational training to be extended to women community that enables them to understand the production process and production management. State Finance Corporations and Financing Institutions should permit by statute to extend purely trade related finance to women entrepreneurs. The financial institutions should provide more working capital assistance both for small scale ventures and large scale ventures. Making provision of micro credit system and enterprise credit system to the women entrepreneurs at local level. Industrial estates could also provide marketing outlets for the display and sale of products made by women. A Women Entrepreneurs Guidance Cell may be set up to handle the various problems of women entrepreneurs all over the state. Training in entrepreneurial attitudes should start at the high school through well designed courses, which build confidence through behavioural games. More governmental schemes to motivate women entrepreneurs to engage in small scale and large scale business ventures. Involvement of Non-governmental Organizations in women entrepreneurial training programs and counselling. Training on professional competence and leadership skill to be extended to women entrepreneurs. 6 P a g e

7 Adequate training program on management skills to be provided to women community. Better educational facilities and schemes should be extended to women folk from government part. CONCLUSION "Entering the new Century, one can strongly believe that more efforts should be undertaken in order to ensure greater opportunities for women, who nowadays take the main burden of doing most of domestic work, supporting their families financially and morally, and often having not enough time and energy left for doing what they want to do most. One can hope that in the 21st century, there will be a just and democratic society, where women and men can participate equally in all aspects of social, political and economic life. One can hope, that the civil and political interests of women will be protected, women's economical independence (support to small business, loans to women entrepreneurs, etc.) will be increased, women's political participation will be strengthened, discrimination against women (violence against women, trafficking in women and children, etc.) will be eliminated, women's access to education will be expanded. One can think that it is very important for women of diverse countries to consolidate efforts and get more international visibility for the purpose of uplifting the status of women in our communities and, indeed, in the whole world REFERENCES Barringer, B and Ireland, R. (2006). Entrepreneurship: Successfully launching new ventures'. Prentice Hall, New Jersey. Welsch, H. (2005). Entrepreneurship: the war ahead'. Routledge, London. Papers For You (2006) " P/B/604. Theories on entrepreneurial behaviour", Available from Papers4you.com [18/06/2006] Papers For You (2006) " P/B/423. What are the origins of entrepreneurial behaviour?", Available from [17/06/2006]. Alvarez, S.A., and Meyer, G.D. (1998). Why do women become entrepreneurs? Frontiers of Entrepreneurship Research, Wellesley, MA: Babson College. Anna, A.L., Chandler, G. N., Jansen, E., and Mero, N. P. (2000). Women business owners in traditional and nontraditional industries, Journal of Business Venturing. Ben-Yoseph, M., Gundry, L.K., and Maslyk-Musial, E. (1994). Women entrepreneurs in the United States and Poland, Kobieta I Biznes. Ben-Yoseph, M., and Gundry, L.K. (1997). Teaching about women managers and women entrepreneurs across cultures, Journal of Developmental Entrepreneurship. Birley, Sue (1989). Female entrepreneurs; Are they really different? Journal of Small Business Management, Summer. Brush, C. (1992). Research on women business owners: Past trends, a new perspective and future directions, Entrepreneurship: Theory and Practice. Brush, C. (1997). Women-Owned Businesses: Obstacles and Opportunities, Journal of Developmental Entrepreneurship. Brush, C., and Hisrich, R. (1988). Women entrepreneurs: Strategic origins impact on Growth. Frontiersof Entrepreneurship Research. Wellesley, MA: Babson College Clark, T., and James, F. (1992). Women-owned businesses: Dimensions and policy issues. Economic Development Quarterly. Gundry, L.K., and Welsch, H.P. (1994). Differences in familial influence among women-owned businesses. Family Business Review. 7 P a g e

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