WOMEN ENTREPRENEURSHIP IN INDIA -

CHALLENGES AND OPPORTUNITIESV.S.K.Varma1ABSTRACT

Women in India were given a special status by our scriptures in comparison with men .Indian culture and society has given different responsibilities for them which can be fulfilled only by her. For so many years Indian Women were playing the role as a home maker and the society has been assuming women in the very same role. There have been enormous changes in the present social system and in these circumstances the womans position in the family and in the society need a transformation to face the challenges thrown by the modern society on her. On one hand the modern economic system is making it necessary to earn more and save more for the future survival .on the other hand Globalization is creating relentless and diverse opportunities (along with new challenges) for the people all around the world. In the current fluid environment the needs and responsibilities of women have altered. In this context it has become inevitable for women to take up the role of bread winner for the family and to compete with men for their individual and family reasons. Since it is a new role for women it is challenging for her to come out of those traditions and customs. Women with their inherent abilities can be precisely suitable for some businesses than men. Nowadays the government is also recognizing the need for women empowerment and it is initiating several steps in this direction. Introduction of womens reservation bill, constitution of National council for women and forum for womens rights are some of the steps taken to encourage women which will be presented through this paper.1 Sr.Assistant Professor, M.R.P.G.College, Vizianagaram.

INTRODUCTIONWomen entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise. According to Joseph Schumpeter, an entrepreneur in an innovating individual who introduces something new into the economy.

According to the government of India, a women entrepreneur is defined as an enterprise owned and controlled by a women and having a minimum financial interest of 51 percent of the capital and giving at least 51 percent of the employing generated in the enterprise to women. Women especially Indian women consider themselves inferior to men. This opinion has been deep-rooted in our society as well. This is partly because of the misinterpretation of womens capacities in comparison with men. Women when they approach banks or other financial institutions in need of funds for setting up of business, they may not be given priority as many bankers may feel hesitant to offer loan to them. Men also may not give the same value as they get from them. Women by nature are not aggressive as men are which creates doubts whether she can handle the uncertainties of the modern business. In a still male dominated society they are only few successful women businessmen which can motivate the current generation of women to become entrepreneur.

STATUS OF WOMEN UNDER TRANSITIONThe status ofwomen in Indiahas been subject to great changes over the past few millennia.From equal status with men in ancient timesthrough the low points of the medieval period,to the promotion ofequal rightsby many reformers, the history of women in Indiahas been momentous and eventful. In modern India, women have adorned high offices inIndiaincluding that of thePresident,Prime minister,Speaker of the Lok SabhaandLeader of the Opposition. As of 2011, thePresident of India, theSpeaker of the Lok Sabhaand theLeader of the Oppositionin Lok Sabha(Lower House of the parliament) are all women.HISTORICAL PRACTICESTraditions among some communities such assati,Jauhar, andDevadasihave been banned and are largely defunct in modern India. However, some cases of these practices are still found in remote parts of India. ThePurdahis still practiced by Indian women among some communities, andchild marriageremains prevalent despite it being an illegal practice, especially under current Indian laws.

SATISati is an old, largely defunct custom, among some communities in which the widow was immolated alive on her husband's funeral pyre. Although the act was supposed to be a voluntary on the widow's part, it is believed to have been sometimes forced on the widow. It was abolished by the British in 1829. There have been around forty reported cases of sati since independence. JAUHARJauhar refers to the practice of the voluntary immolation of all the wives and daughters of defeated warriors, in order to avoid capture and consequent molestation by the enemy. The practice was followed by the wives of defeatedRajputrulers, who are known to place a high premium on honour.

PURDAHPurdah is the practice among some communities of requiring women to cover their bodies so as to cover their skin and conceal their form. It imposes restrictions on the mobility of women, it curtails their right to interact freely and it is a symbol of the subordination of women. It does not reflect the religious teachings of either Hinduism or Islam, contrary to common belief, although misconception has occurred due to the ignorance and prejudices of religious leaders of both faiths.WORKFORCE PARTICIPATIONContrary to the common perception, a large percent of women in India work.However, there are far fewer women in the paid workforce than there are men. In urban India Women have impressive number in the workforce. As an example at software industry 30% of the workforce is female.In rural India, agriculture and allied industrial sectors employ as much as 89.5% of the total female labour.In overall farm production, women's average contribution is estimated at 55% to 66% of the total labour. According to a 1991 World Bank report, women accounted for 94% of total employment in dairy production in India. Women constitute 51% of the total employed in forest-based small-scale enterprises.

CHALLENGES IN THE PATH OF WOMEN ENTREPRENEURSHIPThe educated women do not want to limit their lives in the four walls of the house. They demand 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.For centuries, women have been victim of social prejudices and discrimination. Even today, parents prefer male child to female. Lakhs of foetus are destroyed after pregnancy tests reveal it is female. Women are generally presumed to be weak, passive, dependent and people-oriented. On the other hand, men are considered strong, aggressive, independent and things-oriented. As a result, men and women enter organizations with different skills sets. Women are taught to be dependent upon others, to limit their ambitions and to avoid exposure and risk. Such orientations and role prescriptions inhibit development of self-confidence, innovativeness, achievement motivation and risk taking ability which is essential for an entrepreneurial career.In Hindu scriptures, a woman has been described as the embodiment of Shakti (Durga). But in real life she is treated as Abla (weak and dependent). Women in traditional societies are still confined to the four walls of home, children, household affairs and family rituals. Very few get the opportunity to come out of the four walls and enter economic activities. In a male-dominated

society, women are not treated as equal partners. The following issues are creating problems to women and proved to be challenging for her.FUNCTIONAL PROBLEMS:-a) Lack of awareness of potentials b) Lack of training c) Start up problems like seeking approvals and licenses 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 globalization: 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 cannot 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 persistenceOPPORTUNITIES FOR THE GROWTH OF WOMEN ENTREPRENEURSHIP

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. Although the number of such units is not large, but the situation is changing slowly. The Harvard school experts feel that women have a natural deeper sense of commitment towards their work than their male counterparts. The basic quality of efficient management of having a futuristic outlook and planning for the unknown, hard work, patience and perseverance comes naturally to women.

According to the Third All India Census of Small Scale Industries conducted in 2001-02 and subsequent estimates made, only 10.11% of the Micro and Small Enterprises in India are owned by women while 9.46% of the MSE enterprises are managed by women. As per the latest available estimates(2006-07), the number of women owned and women managed enterprises is 12.99 lakh and 12.15 lakh respectively.In order to encourage more and more women enterprises in the MSE sector, several schemes have been formulated by this Ministry and some more are in the process of being finalized, targeted only at the development of women enterprises in India.1. TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT SCHEME FOR WOMEN (TREAD)

With a view to encourage women in setting up their own ventures, government launched a Scheme, namely, Trade Related Entrepreneurship Assistance and Development (TREAD) during the 11th Plan. The scheme envisaged economic empowerment of women through the development of their entrepreneurial skills in non-farm activities. There are three major

components of the scheme;(i) Government Of India grant up to 30% of the total project cost to the Non-Government Organisations (NGOs) for promoting entrepreneurship among women. The remaining 70% of the project cost is financed by the lending agency as loan for undertaking activities as envisaged in the project.

(ii) GoI grant up to Rs.1 lakh per programme to training institutions / NGOs for imparting training to the women entrepreneurs.

(iii) Need-based GoI grants up to Rs.5 lakh to National Entrepreneurship Development Institutions and any other institutions of repute for undertaking field surveys, research studies, evaluation studies, designing of training modules etc.

2. MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP)

a) EXISTING CLUSTERS:

A cluster is defined as a group of enterprises, normally 20 or more producing same/similar products/services. The Cluster Development Programme (CDP) being implemented envisages diagnostic study of identified clusters of traditional skill-based MSEs to identify appropriate technologies and their providers and to facilitate adoption of available technology meeting the specific needs of the end users. The Cluster Development aims at enhanced competitiveness, technology improvement, adoption of best manufacturing practices, marketing of products, employment generation etc. The scheme provides assistance for capacity building, common facilities, marketing etc. the delivery, assimilation and diffusion of the identified technology from its producers to the recipient user/cluster of small enterprises.

Type of interventions

I) SOFT INTERVENTIONS Capacity building activities in the cluster where no fixed assets is acquired or formed. Soft interventions, inter alia, include

i. Diagnostic study

ii. Forming association-Trust building & Developing Identity

iii. Capacity building,

iv. Organising workshops, seminars,

v. Training & Exposure visits,

vi. Market development,

vii. Launch of Website,

viii. Common procurement,

ix. Common/complementary sales and branding;

In the past depending upon the type of cluster, assistance available for soft interventions has varied in the range of Rs.25 35 lakh per cluster. Currently internal ceiling is Rs.10 lakh for soft intervention under this Scheme, which we are trying to bring upwards. Clusters of womens

enterprises are entitled up to 90% assistance for soft interventions.

II) HARD INTERVENTIONS These are tangible assets like

i. Setting up of Common Facility Centre (CFCs),

ii. Mini Tool Rooms,

iii. Design Centres,

iv. Testing Facilities,

v. Training Centre,

vi. R&D Centres,

vii. Common Raw Material Bank/Sales depot, etc.

There can be other tangible assets that could be set up by the womens Clusters, as long as they are put to common use. For hard interventions, it is necessary to form a Special Purpose Vehicle (SPV) which could be a registered society, or a cooperative society, or company, or a trust or any other legal entity in which at least 20 to 30 members of the Cluster contribute and participate. Other Cluster members who do not join this SPV could also sign up as Users. The Common Facility Centre that is set up by the SPV as a hard intervention is entitled to the highest level of assistance from the MSME Ministry i.e. up to 90% of the Project Cost. This covers the cost of machinery, plant, equipment, laboratory and other tangible assets. The balance 10% of the project cost would have to be contributed by the SPV or by the State government or the Local government. But land and building are not covered under this Project Cost and will have to be provided by the SPVs of the Womens Enterprises Clusters or by the State government or by some other agency.

III) INFRASTRUCTURE ASSISTANCEInfrastructure assistance includes the construction of basic amenities like power, approach roads, drainage, water supply and storage and the like. MSME Ministrys assistance for this component is presently limited to 40% of the total cost though we are trying to increase this level.

3Only one element of Infrastructure Assistance i.e. Display or Exhibition Centers (which could consist of show-rooms with attached stores) are entitled to a higher level of assistance in so far as Womens Clusters are concerned, i.e. 90%. This Display/Exhibition Centre could be built by the

Womens Clusters, SPV within the Cluster, or near the Cluster or even in adjoining Markets of Towns as long as they exhibit and market the products manufactured by the Womens Clusters.

b) CREATION OF PHYSICAL INFRASTRUCTURE:This Ministry implemented the IID Scheme to provide developed sites with infrastructural facilities like power distribution network, water, telecommunications, drainage and pollution control facilities, roads, exhibition/display centers, raw materials, storage and marketing outlets,

common service facilities and technological back-up services, etc. This scheme has been subsumed in the MSME-Cluster Development Programme. All the features of IID Scheme have been retained. To create physical infrastructure exclusively for women enterprises central grant of 40% of the project cost subject to a maximum of Rs.2 crore is available. The Ministry of MSME is making efforts to enhance the quantum of grant to 80% in a project of Rs.10 crore.

3. CREDIT GUARANTEE FUND SCHEME

The Government introduced the Credit Guarantee Fund Scheme for Small Industries in May, 2000 with the objective of making available credit to SSI units, particularly tiny units, for loans up to Rs. 25 lakh without collateral/ third party guarantees. The Scheme is being operated by the Credit Guarantee Fund Trust for Small Industries (CGTSI) set up jointly by the Government of

India and SIDBI. The Scheme provides for collateral free credit facility (term loan and / or working capital) extended by eligible lending institutions to new and existing SSI units/ Small Scale Service and Business (industry related) Enterprises (SSSBEs) including Information Technology and Software Industry up to Rs. 25 lakh per borrowing unit. In the case of women enterprises, the guarantee cover is up to 80% of the credit subject to maximum guarantee limit

4 of Rs. 20 lakh. The member lending institutions (MLI) availing of guarantee from the Trust have to pay a one-time guarantee fee of 1.5% of the credit facility (comprising term loan and / or working capital) sanctioned by the lending institution to the borrower and annual service fee of 0.75% per annum on the amount of credit facility extended by the MLI, which is covered under

the scheme.

4. SUPPORT FOR ENTREPRENEURIAL AND MANAGERIAL DEVELOPMENT

MSME DIs regularly conduct EDPs/MDPs for existing and prospective entrepreneurs and charge fee for such courses. To encourage more entrepreneurs from among the SC/ST, women and physically challenged groups, it is proposed that such beneficiaries will not be charged any fees but, instead paid a stipend of Rs.500/- per capita per month. 50,000 entrepreneurs will be trained in IT, Fashion Technology, Catering, Agro & Food Processing, Pharmaceutical, biotechnology etc. through specialized courses run by MSME DIs. 20% of courses conducted by these Institutions shall be exclusively for women.

5. EXHIBITIONS FOR WOMEN UNDER PROMOTIONAL PACKAGE FOR MICRO & SMALL ENTERPRISES APPROVED BY CCEA UNDER MARKETING SUPPORT

DC (MSME) has formulated a scheme for women entrepreneurs to encourage Small & Micro manufacturing units owned by women in their efforts at tapping and developing overseas markets, to increase participation of representatives of small/micro manufacturing enterprises under SIDO stall at International Trade Fairs/Exhibitions, to enhance export from such units.

with a view to encourage women entrepreneurs to participate in the International Exhibitions it has been decided to:

i) provide rent free space in the exhibitions

ii) reimburse 100% economy class air fare for one representative

iii) reimburse shipping cost upto Rs.15,000/-

The overall ceiling shall however be Rs. 1.25 lac.AGENCIES FOR HELPING WOMEN ENTREPRENEURS-Some 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 HandicraftsBoard,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 v 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 non-traditional 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 self-reliance.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. Following is the list of few top Women Entrepreneurs in India:

Indra Nooyi Indian born American businesswoman, Indra Krishnamurthy Nooyi born October 28, 1955 is the

Chairperson and Chief Executive Officer (CEO) of PepsiCo, one of the worldss leading food and beverage companies. On August 14, 2006, Nooyi was named the successor to Steven Reinemund as chief executive officer of the company effective October 1, 2006. On February 5, 2007, she was named Chairperson, effective May 2, 2007. Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has directed the companys global strategy for more than decade and led PepsiCos restructuring, including the 1997 divestiture of its restaurants into

Tricon, now known as Yum! Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became the fifth CEO in PepsiCos 44year history. Nooyis key contributions include promoting and supporting socially responsible business practices, including taking on one of the planets most pressing problems, climate change. Her commitment to global citizenship is

evidenced by her multiyear growth strategy, Performance with Purpose. Nooyi was named on Wall Street Journals list of 50 women to watch in 2007 and 2008, and was listed among Times 100 Most Influential People in The World in 2007 and 2008. Nooyi has been named 2009 CEO of the Year by the Global Supply Chain Leaders Group (GSCLG).

Dr. Kiran MazumdarShaw

Entrepreneur Dr. Kiran Mazumdar Shaw, Chairman & Managing Director of Biocon Ltd. She was educated at the Bishop Cotton Girls School and Mount Carmel College in Bangalore. She founded Biocon India with a capital of Rs.10,000 in her garage in 1978 the initial operation was to extract an enzyme from papaya. Her application for loans was turned down by banks then on three counts biotechnology was then a new word, the company lacked assets, and (most importantly) women entrepreneurs were still a rarity. Today, her company is the biggest biopharmaceutical firm in the country. In 2004, Biocon went for an IPO and the issue was oversubscribed by over 30 times. PostIPO, Shaw held close to 40% of the stock of the company and was regarded as Indias richest woman with an estimated worth of Rs. 2,100 crore (~U.S.

$ 480 million).Sulajja Firodia Motwani

Sulajja Firodia Motwani is Joint Managing Director of Kinetic Engineering Ltd, she is the in charge of the Companys overall business developmental activities. She is also very well performing the role of the Director of Kinetic Motor Company Limited and Kinetic Marketing Services Limited. She as made an incredible contribution in making the firm reach heights of success. Prior to joining Kinetic Company, Sulajja worked for a period of four years with a well known investment analytics company, BARRA International, based in California. She has been an active participant in setting the operations of the company in India. Throughout her studies, she has been a rank holder. She has always cleared exams with merit. Her name appeared in the toppers list in the SSC examinations and HSC examinations. She graduated from the Pune University. Thereafter, she went to the United States for pursuing further studies. She is an MBA degree holder from the reputed Carnegie Mellon University at Pittsburgh. She is an epitome of boldness and courage. With her strong determination and courage, she has been able to establish a niche for the firm in the business world. The Company has witnessed tremendous expansion during her tenure. From being a mere moped manufacturer, today, it has set its foothold in the

industry as a manufacturer offering a complete range of two wheelers right from mopeds, scooters to motorcycles.

CONCLUSION

The world is slowly recognizing the spectacular efforts of women to the global economy and all around the world women Entrepreneurship has become a buzzword. Nowadays there is no sector or industry where women are lagging behind. This 21st century is definitely going to be turning point for women empowerment in the correct direction.References:

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