AEIJMR Vol 2 - Issue 6 - June 2014 ISSN Problems and Prospects of Women Entrepreneurs in Madurai with References to Beauty Parlours

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1 Problems and Prospects of Women Entrepreneurs in Madurai with References to Beauty Parlours *Dr.Muthuvelayutham **R.Jeyakodeeswari *Associate Professor, Department of Management Studies, Anna University, Coimbatore **Head-In-Charge and Asst. Prof, Department of Business Administration, Lady Doak College, Madurai-2 Introduction The secret and the only way to lift India out of poverty is to educate and enhance the status of country s women - World Bank In India, the concept of entrepreneurship has gained worldwide popularity in recent years. Women are becoming entrepreneurs showing much interest towards it. According to Global Entrepreneurship Monitor [GEM], one in eleven [8.9%] women is involved in entrepreneurship across the globe and India occupies the second position among the 22 countries where 14.1 percent of women have ventured into entrepreneurship [GEM, 2002] Due to increase in cost of living, it has become necessary for women to undertake economic activities and support their families. Started as entrepreneurs of pickle and pappad making, women in India have now entered into service entrepreneurship and are keen towards the beauty parlour business. The Temple city Madurai is not an exception to this. Madurai holds nearly 1500 parlours at least two in every street.. Recently The Indian Salon Report 2013 indicated that the Indian Salon industry would reach$3.5 billion and that it would create more than three million jobs by As women, the entrepreneurs running the parlours face many difficulties and there is a need to identify them and provide ideas to solve them and therefore this study is undertaken. Key Words Women entrepreneur- An enterprise owned and controlled by a woman having a minimum financial interest of 51% of the employment generated by the enterprise to the women - Government of India. Beauty Parlour- Beauty parlor means any establishment providing beauty treatment service- Section 65 (17) of Financial Act (India), 1994 as mentioned. Beauty services- The Beauty services covers the beauty treatments such as facial, manicure, pedicure and other makeup s provided by beauty parliurs. However, it does not include hair cutting and shaving. Further it does not include plastic surgery or cosmetics surgery done to Improve the appearance, as they are not the kind of service provided by the beauty parlours- Ministry s F.No.B 11/1/2002 TRU dt Statement of the Problem Recently, in Madurai, there is a Mushroom growth of beauty parlours. Beauty making has now become a lucrative field that generates several employment opportunities to women from humble manicurists to the fanciest hair stylist, more women are now in beauty making profession. The easy establishment of the business with less investment attracts many women into this field. 1

2 This business not only creates employment opportunities, also increase the standard of living of people through the variety of health and beauty care services. They are great source of revenue to the government and they create an entrepreneurial economy leading to eradication of poverty from the country. Though the number of beauty parlours in Madurai is in an increasing trend, they are challenged with problems in the areas of finance, marketing, etc The threatening problems were to be identified and strategies needed to be framed and adopted appropriately so that they continue to contribute towards the economic development. Objectives To study and analyze the problems faced by the women entrepreneurs To suggest ways to solve the problems Scope of the Study The study took in to consideration the parlours that have atleast 2 lakhs initial investment and that are popular in the city. K.K.Nagar, Anna Nagar, Bye Pass Road, Ellis Nagar, Mahatma Gandhi Nagar, Doak Nagar, P&T Nagar, K.Pudur, Valluvar colony, Bibikulam, Goripalayam and Simmakkal were the areas considered for the study. The study took in to account the owners of beauty parlours who have invested capital as well as managing the parlours. Research Design This is an empirical study base on survey method. The data were collected both from primary and secondary sources. The primary data was collected from 30 sample respondents through an interview schedule. The secondary data was collected through Yellow pages, News papers, Journals, Text books, reports from Associations and centers, and websites. Sampling Design The study was conducted taking into account the parlours situated in 12 areas of Madurai and from each place 5 prominent parlours that have invested more than 2 lakhs rupees were selected. Totally 60 popular parlours were studied. Though there were 1500 parlours in the city very few are well established. Therefore the well established ones are taken for the study.. Judgement sampling method was adopted. Tools of Analysis Percentage analysis was used to analyze and interpret the data collected. REVIEW OF PREVIOUS STUDIES *1 A study conducted by Chitra K (2006), focused on the various demographic factors of women in personal care industry in Coimbatore, and their relationship with their success.. Her exploratory research revealed that a strong relationship existed between these variables. *2 A Study undertaken by Dr.K.Chidambaram (2000) from 100 customers of Beauty parlours in Maduari revealed that the customer was visiting the beauty parlours with a view to enhance their beauty and they preferred herbal treatments.. As regards the frequency of visits, they make a regular visit to beauty parlours once in a month. *3 Another research work was done by Ms.J.Anitha,(2003) in Madurai, revealed that the respondents spent Rs per month for the purpose of beautification and that they selected the parlours near their location for convenience. The customers were also aware of the 2

3 modern treatments provided in the parlours. Type of Problems faced by Beauty Parlour Owners in Running the Parlour As business women, the beauty parlour owners face problems with regard to finance, human resources, production, and marketing areas while running the business. They struggle to chanelise the efforts to become successful. Table 3.24 Type of problems faced by beauty parlour owners in running the parlour Type of Problems No % Equity Finance Working Capital Choice of location 12 3 Labour/ Assistants Raw Materials 3 5 Marketing Family responsibility 8 13 Government (regulation & tax) Technology adoption From the table (3.24) it is understood that about 75% of the respondents faced problems of working capital requirement. Next to that, about 67% of them faced marketing problems & only 5% of the respondents faced Raw material problems. It is inferred from the data that during the running phase of the problem the business is challenged with working capital requirements to meet the day to day expenses of the Parlour such as purchase of raw materials. Regarding fruit facial, fresh fruits are the raw materials which are to be bought and used. The Government regulations such as the service tax and the marketing problems in relation to intermediaries, market trend and customer satisfaction are other concern areas for the women entrepreneurs owning beauty Parlours in Madurai City. 3

4 Table 3, 25- Comparison of problems faced by the respondents at the initial stage of business and during the running stage Type of problems At initial Stage At running stage % % No. No. increase decrease Equity finance Working Capital Location Problems Labour/Assistants Raw Materials Marketing Family Responsibility Government Regulations Technology Adoption The table (3.25) clearly states that out of the 9 problems encountered by the respondents, in the establishment / initial stage of their business, 8 problems were noted to have significantly reduced in course of time. It is understood from the table that there was only a 5% decrease in the problems related to working capital, marketing and labor. It is inferred that the respondents had faced a continuous problem in marketing their services, in meeting with working capital requirements and in labour related aspects such as lack of skilled & qualified laborers with integrity. As individuals, most of these women had to operate in an environment dominated by men. The study had noted an interesting insight that the problem related to government regulation and tax had increased with 6%. As the government increased the service tax from 8% to 10.2% applicable for beauty services, the respondents had felt it as a problem area for them. This has been identified as a threat factor from the point of view of the beauty Parlours owners. The problems related to family responsibility had gone down by 12% and that of location had gone down by 13%, The problems relating to infrastructure and equity finance had gone down by 8%, which are highly significant data. It is inferred from the data that once an enterprise is established the maintenance of the same would be possible if some of the problems encountered by women in the establishment phase have either been taken care or have been eliminated. 4

5 Table 3.26 Type of problems faced while arranging for finance Type of problems No. % Availability of schemes in limited number of banks Mistrust of Lender 5 8 Tough eligibility criteria Long formalities High rate of interest Short repayment period 8 13 It is understood from the data that about 42 % of the entrepreneurs had faced the problem of eligibility criteria and only 8 % had faced the problem of mistrust of the lenders. It is inferred from the data that though there are so many schemes available for the entrepreneurs there is a tough eligibility criteria being framed, where the entrepreneurs are denied in getting the right benefit at right time. Table 3.27 Type of labour problems faced by the entrepreneurs Type of Problem No % Lack of experience Sudden turnover 9 15 Lack of honesty 6 10 Lack of professional Skill & Training Total The table (3.27) clearly shows that about 48% of the entrepreneurs had felt that their labourers were not acquiring professional skill and training properly to do the assistant work and only 10% had felt that they were with dishonest behaviours. It is inferred from the data that the beauty parlours in Madurai are suffering from unskilled labourers with less professional knowledge. 5

6 Table 3.28 Type of Marketing Problems faced by the entrepreneurs Type of Problems No % Less prices for service High advertising cost Less opportunities for Exhibitions Unhealthy Competition From table (3.28) it is understood that about 53% of the entrepreneurs had marked high advertising cost as their major marketing problem. Next to that about 50% had marked the fewer prices of beauty parlour services as their problem. Only 25% had felt that their main marketing problem was that they had very less opportunities to demonstrate their skills in exhibitions. It is inferred that most of the parlours in Madurai did not go for advertising their parlours because of the high lost that is prevailing and that the prices for the services still needs a hike, so that there might be a chance for them to meet the advertising expenses also, in the future. Suggestions The following suggestions were made from the study The government has to widen its help to the beauticians in Madurai through providing working capital assistance through commercial banks There is a need for policy reformation by the government for further more guidance. Proper regulation and monitoring is to be done in order to reduce unhealthy competition. The Madurai beautician association needs to be strengthened with more committed members. It has to come out with more enhancing programmes which might help the Beauty parlours to grow. The parlours in Madurai city still needs to enhance their promotional aspects. They can go in for Demonstrations in Exhibitions, Conducting beauty contests, Distribution of pamphlets and leaflets, Provision of Innovations in services Beauty parlours in Madurai can grow to greater heights even to international level, through adopting expansion strategy. They could expand by entering in to Health care, Tourism and through maintaining ISO standards; As Physical evidence is an The important factor for any service, the location of a parlour requires being very attractive to customers. The location must be ecofriendly, spacious, prominent and convenient for the customer s visit. The can have tie-ups with certain institutions and provide their services. For example, any air transport industry for grooming up the Air hostesses.etc, Therefore, it is suggested that the beauty parlours in Madurai must update themselves with all innovations to stand on pace with the growing competition, demand and frequent changes in the preferences of the people. The Government support is expected in all phases of its growth. 6

7 Conclusion What lies behind us and what lies before us are tiny matters compared to what lies within us. - Oliver Wendell Holmes As the Beauty salon and wellness business in India is estimated to be worth Rs crores out of which 35% of business is contributed by South India and this industry is growing at a pace of 15% annually, there are lots of prospects awaiting the Players. Given the competitive environment these services can be a powerful source of wealth creation and jobs for middle income economics, more powerful than off shore services could ever to be Women folk find a great employment opportunity in the beauty sector. Reduction in poverty and unemployment could be achieved through uplifting this beauty factor. Therefore this sector cannot be forgotten. The policy makers need to consider the sector in their matters and bring out strategies to build up. More training avenues need to be opened by the government, to encourage more women in to the beauty industry. The beauty parlour industry in Madurai has to catch up with other developed cities setting bench marks for standardizing quality and competitiveness. References X X Chitra k. (2006)Women Entrepreneurs in Personal Care Industry, An exploratory study of the critical success factors, The Journal of Management Awareness, Vol6, issue 1 Dr.K.Chidambaram, Ms.N.Sheela Devi, Beauty Parlour Customers in Madurai City. Indian Journal of Marketing, January to April 2000, page 29. J.Anita, A Study on Women s Beauty Parlour in Madurai City, a research work for the fulfillment of M.Com degree, The American College, Maduria, Duchesneau.D, W.Garner, A profile of new venture success and failure in an emerging industry, Journal of Business Venturing, Vol 5, Pg , Sujatha Mukerjee, What motivates women entrepreneurs? Factors influencing their motivation, The ICFAI University Press, ICFAI Journal of Entrepreneurship development, Vol III, No.4. Rajendran Narkundar, Services Marketing, TMGH, New Delhi, Boucher, Francois, 20,000 years of fashion: The History of Costume and Personal Adornment Harry N.Abrams, Inc, Publishers, NewYork, Robinson, Julian, The Quest for Human Beauty, An illustrated History, W.W.Norton & Company, Inc, New York, C.R.Kothari, Research Methodology, Methods & Techniques Second edition, New age International Publishers New Delhi, Somen Das, Women in India, Problems & Prospects, Bishop s College, Calcutta, West Bengal,