WOMEN ENTREPRENEUR

1] INTRODUCTION
Women entrepreneur is any women who organizes and manages any enterprise,
especially a business.
The emergence of entrepreneurs in a society depends to a great extent on the social,
economic, religious, cultural, psychological and environmental factors prevailing in a
society. Entrepreneurs with their inherent intelligence, drive and hard work making the
best use of the opportunities that are made available in the above factors. Women
entrepreneurs are no exception to this.
Though women, in traditional societies are confined to the four walls of houses doing all
the household works including taking care of the children and are treated as property of
men, the concept and status of women in the modern society has been changed
substantially.
Modern age has lifted the veil of ignorance. Slowly and subtly changes are creeping in.
Women have come out of the four walls to participate in all sorts of activities. They are
growing and blossoming as successful persons in their own right.
They have proved that they are no less than men in efficiency, hard work or intelligence.
They are treated equally in teaching jobs, IT firms, hospitals and administrative jobs,
military and defense fields, law, science, medicines and even aeronautics and space
exploration. Now they have jumped into industrial activities and run their enterprises
successfully. They are emerging as potential entrepreneurs. They have been making
significant impact in all segments of the economy. Indian women also do have vast
entrepreneurial talent which could be harnessed to join in the race for development.
Therefore, it is now quite significant to discuss about the concept, meaning,, growth,
problems and its solutions of women entrepreneurs in India.

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2] DEFINITION
2.1] Definition of Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money
through risk and initiative. The term was originally a French word and was first defined
by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term
applied to a person who is willing to help launch a new venture or enterprise and accept
full responsibility for the outcome.
2.2] Definition of Women Entrepreneur
Government of India has given a broader definition of the term women entrepreneur. It
defined women entrepreneur as "an enterprise owned and controlled by women having a
minimum financial interest of 51% of the capital and giving at least 51% of the
employment generated in the enterprise to women".
According to J.A. Schumpeter, "Woman who innovates, imitates, or adopts a business
activity is called woman entrepreneur." Thus women entrepreneur are those women who
initiate, organize and operate business enterprise and want to prove their mettle in
innovative and competitive jobs. She also wants to oversee and control every aspects of
her business for its overall success.

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3] CONCEPT AND MEANING

Increase in cost of living has prompted the Indian women to undertake economic
activities in order to support their families. They are coming forward to take risks, face
challenges and prove to the world that their role in the society is no more limited to that
of buyers but they can be also successful sellers. There are thousands of good examples
where women have shown entrepreneurial talents and have succeeded. Women
entrepreneurs are the key players in any developing country in terms of their contribution
to economic development. Now, it is imperative to know who is a women entrepreneur.
In the simplest sense, women entrepreneurs are those women who take the lead and
organize the business or industry and provide employment to others. It signifies that
section of female population who venture out into industrial activities. It may be defined
as a woman or group of women who initiate, organize and run a business enterprise.
4] WHY DO WOMEN TAKE UP EMPLOYMENT?
There are several factors responsible for increasing a number of women in work
participation. These factors can broadly be classified under two categories, namely pull
factors and push factors.
Push factor includes:
i)

Death of bread winner.

ii)

Sudden fall in family income due to accidental or exceptional circumstances

such as long and continued sickness of father, brother or husband

iii)

Permanent and growing inadequacy in over all income of the family.

Pull factor there is a demand for jobs, entrepreneurship and it includes:

i)

Womens desire to evaluate their talent and to get economic independence.

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ii)

To utilize their free time or education or to work for their personal

satisfaction.

iii)

Need and perception of womens liberation, equality, etc. advocated by

women in Western Countries.

iv)

To gain recognition, importance and social status.

5] CATEGORIES OF WOMEN ENTREPRENEUR

Women entrepreneur can b categorized on the basis of different criteria such as;
i)

Women entrepreneurs in organized and unorganized sector.

ii)

Women entrepreneurs in traditional and modern industries.

iii)

Women entrepreneurs in urban area and rural areas.

iv)

Women entrepreneurs in large scale industries and small scale industries.

v)

Single women entrepreneur and joint venture entrepreneur.

On the basis of economic and social status, women entrepreneur in India do not belong
to single category. They can broadly be classified in three groups.
The first category contains women established in big cities, having a higher level of
technical and professional qualifications. Such women commanding medium and large
units in the field of non-traditional items such as electronics, pharmaceuticals and
services etc.
The second category of women is engaged mostly in handicraft and cottage industries of
traditional and non- traditional fields. There ownership in traditional field such as

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garment, knitting, printing sarees, doll, toy making as well as in some non- traditional
areas like plastic, chemical, drugs, textiles etc.
The third category normally consists of illiterate and financially weak women. Normally
they involved in family business such as agriculture, horticulture, animal husbandries,
fisheries, handloom, etc.
6] PROBLEMS FACED BY WOMEN ENTREPRENEURS
Women entrepreneurs face a series of problems right from the beginning till the
enterprise functions. Being a woman itself poses various problems to a woman
entrepreneur, the problems of Indian women pertain to her responsibility towards family,
society and lion work.
The tradition, customs, socio cultural values, ethics, motherhood subordinates to ling
husband and men, physically weak, hard work areas, feeling of insecurity, cannot be
tough etc are some peculiar problems that the Indian women are coming across while
they jump into entrepreneurship.
Women in rural areas have to suffer still further. They face tough resistance from men.
They are considered as helpers. The attitude of society towards her and constraints in
which she has to live and work are not very conducive.
Besides the above basic problems the other problems faced by women entrepreneurs are
as follows:
1. Family ties:
Women in India are very emotionally attached to their families. They are supposed to
attend to all the domestic work, to look after the children and other members of the
family. They are over burden with family responsibilities like extra attention to husband,
children and in laws which take away a lots of their time and energy. In such situation, it
will be very difficult to concentrate and run the enterprise successfully.

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2. Male dominated society:

Even though our constitution speaks of equality, women are not treated equal to men.
Their entry to business requires the approval of the head of the family. Entrepreneurship
has traditionally been seen as a male preserve. All these put a break in the growth of
women entrepreneurs.
3. Lack of education:
Women in India are lagging far behind in the field of education. Most of the women are
illiterate. Those who are educated are provided either less or inadequate education than
their male counterpart partly due to early marriage, partly due to son's higher education
and partly due to poverty. Due to lack of proper education, women entrepreneurs remain
in dark about the development of new technology, new methods of production, marketing
and other governmental support which will encourage them to flourish.
4. Social barriers:
The traditions and customs prevailed in Indian societies towards women sometimes stand
as an obstacle before them to grow and prosper. Castes and religions dominate with one
another and hinder women entrepreneurs too. In rural areas, they face more social
barriers. They are always seen with suspicious eye.
5. Shortage of raw materials:
Neither the scarcity of raw materials, sometimes nor, availability of proper and adequate
raw materials sounds the death-knell of the enterprises run by women entrepreneurs.
Women entrepreneurs really face a tough task in getting the required raw material and
other necessary inputs for the enterprises when the prices are very high.
6. Problem of finance:
Women entrepreneurs stiffer a lot in raising and meeting the financial needs of the
business. Bankers, creditors and financial institutes are not coming forward to provide
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financial assistance to women borrowers on the ground of their less credit worthiness and
more chances of business failure. They also face financial problem due to blockage of
funds in raw materials, work-in-progress finished goods and non-receipt of payment from
customers in time.

7. Tough competition:
Usually women entrepreneurs employ low technology in the process of production. In a
market where the competition is too high, they have to fight hard to survive in the market
against the organized sector and their male counterpart who have vast experience and
capacity to adopt advanced technology in managing enterprises
8. Low risk-bearing capacity:
Women in India are by nature weak, shy and mild. They cannot bear the amount risk
which is essential for running an enterprise. Lack of education, training and financial
support from outsides also reduce their ability to bear the risk involved in an enterprises.
9. Limited mobility:
Women mobility in India is highly limited and has become a problem due to traditional
values and inability to drive vehicles. Moving alone and asking for a room to stay out in
the night for business purposes are still looked upon with suspicious eyes. Sometimes,
younger women feel uncomfortable in dealing with men who show extra interest in them
than work related aspects.
10. Limited managerial ability:
Management has become a specialized job which only efficient managers perform.
Women entrepreneurs are not efficient in managerial functions like planning, organizing,
controlling, coordinating, staffing, directing, motivating etc. of an enterprise. Therefore,

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less and limited managerial ability of women has become a problem for them to run the
enterprise successfully.

7] STEPS TAKEN TO REMOVE THE PROBLEMS

Women have to go through the same stages of setting up an enterprise as do men

They face similar challenges, irrespective of gender based social impediments like
social stigma, unfavorable infrastructure, support systems, etc. which block their
entry and reduce their pace of growth. The need today is to help women overcome
these blocks and draw maximum participation from them to set up enterprises,

which will help them

Educate/train the women entrepreneurs
Help then in setting up of home based businesses
Make easy finance available
Develop special schemes for women entrepreneurs
Achieve self reliance and place women entrepreneurs at par with their male

counterparts
Develop gender sensitivity
Examine the processes of gender inequality
Acquire skills of identification of potential women entrepreneurs

8] SCHEMES FOR WOMEN ENTREPRENEURS

8.1] Seed capital scheme
The Self Help Groups (SHG) in rural and urban areas are to be encouraged to take
up income generating enterprises under industries, and services which are Nonfarm sector activities by contributing their resources and to get one time nonrecurring grant of 50% of the project cost from Government to the extent of
Rs.50,000/- as seed capital and deposit the same in the name of Self Help Group
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in the Bank account. The balance part of the seed capital, the loan part to the
extent of 45% shall be made available through the Village Co-operative Bank
Branches, Economic Development Corporation (EDC), branches of the
nationalized banks or other micro finance companies.
8.2] DIC scheme
Any rural service and cottage industry is eligible to get the benefit under the
scheme. Soft loan from D.I.C for general categories 20% upto Rs.40,000/- and
30% for the SC/ST category upto Rs.60,000/- against the project cost approved by
the Financial Institutions. The value of Plant & Machinery should not be more
than Rs.2.lakhs.Soft loan is admissible @ 4% interest p.a.
8.3] Bank schemes for women entrepreneurs
Bank of India: - Priyadarshini Yojana
Canara Bank: - CAN Mahila
Central Bank of India: -Cent Kalyani
Dena Bank: -Dena Shakti
Oriental Bank of Commerce: - Orient Mahila Vikas Yojana
State Bank of India: -Stree Shakti Package
SIDBI: -Mahila Udyam Nidhi
8.4] Mahila Arthik Vikas Mahamandal (MAVIM)
Mahila Arthik Vikas Mahamandal is known as MAVIM and it is the State
Womens Development Corporation of Government of Maharashtra, established
on the 24th February, 1975 on the occasion of International Womens year. Her
Excellency Hon. Pratibhatai Patil, President of India, was the first
Chairperson of MAVIM.
MAVIM has been declared as a Nodal agency by Government of Maharashtra on
20th January 2003 to implement various Women Empowerment Programmed
through Self Help Groups (SHGs).The headquarter of MAVIM is based at
Mumbai and MAVIM has offices at every district to implement developmental
schemes in rural areas. It is registered under Companies Act 1956 (Section 25 C)
as not for profit Company. MAVIM has covered 13000 villages of Maharashtra.

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Activities and objectives of MAVIM is Self employment of women, training them

in various product and service industries, assisting them to start business and
manage it.
8.5] Priyadarshani Yojana
With a view to empowering women by providing credit to women entrepreneurs,
a scheme called Priyadarshini Yojana was launched in 1989. Under
Priyadarshini Yojana women entrepreneurs are extended credit facilities at
liberal terms and at concessional rate of interest, for economic activities.
Purpose of this scheme is
i) Purchase of equipment, machinery, vehicle, furniture / fixtures etc. for capital
investment and working capital needs
ii) Agriculture & Allied activities
iii) Education Loan
Margin is for limit upto Rs.50,000/- - Nil and For limit over Rs. 50,000/15% to 20%.

9] SOME OF THE POWERFULL WOMEN ENTREPRENEURS

Indra Nooyi- Chief Executive designate,
Pepsi Co.
Ekta Kapoor - creative head of Balaji films
Neelam Dhawan- Managing Director, Microsoft India
Preetha Reddy- Managing Director of Apollo Hospitals, Chennai
Ms. Shahnaz Hussain - Herbal Heritage
Chanda Kochchar, Managing Director and CEO, ICICI Bank Ltd

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10] EXAMPLE
1) Indra Nooyi- Chief Executive ,Pepsi Co.
Indra Nooyi was born in Chennai, Tamil Nadu, India. She completed her
schooling from Holy Angels AIHSS, Chennai. She received a Bachelor's degree in
Physics, Chemistry and Mathematics from Madras Christian College in 1974 and
a Post Graduate Diploma in Management (MBA) from Indian Institute of
Management Calcutta in 1976. Beginning her career in India, Nooyi held product
manager positions at Johnson & Johnson and textile firm Mettur Beardsell. She
was admitted to Yale School of Management in 1978 and earned a Master's
degree in Public and Private Management. While at Yale, she completed her
summer internship with Booz & Company.Graduating in 1980, Nooyi joined the
Boston Consulting Group (BCG), and then held strategy positions at Motorola
and Asea Brown Boveri.
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi
has directed the company's global strategy for more than a decade and led
PepsiCo's 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 PepsiCo's 44-year
history.
According to BusinessWeek, since she started as CFO in 2000, the company's
annual revenues have risen 72%, while net profit more than doubled, to $5.6
billion in 2006.
Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and
2008, and was listed among Time's 100 Most Influential People in The World in
2007 and 2008. Forbes named her the #3 most powerful women in 2008. Fortune
ranked her the #1 most powerful woman in business in 2009 and 2010. On the 7th
of October 2010 Forbes magazine ranked her the 6th most powerful woman in the
world.
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BIBLIOGRAPHY
Books

Women Entrepreneurs by Dr. S. S. Khanka

Entrepreneurial development by Dr. S. S. Khanka and S. Chand

Websites

http://www.preservearticles.com/201101153364/meaning-and-growth-of-woman-

entrepreneurship-in-india.html
http://definitions.uslegal.com/w/women-entrepreneurs/
http://www.answers.com/topic/women-entrepreneurs
http://www.preservearticles.com/201101153366/problems-faced-by-women-

entrepreneur.html
http://www.bankofindia.com/priyadarshini.aspx
http://mavimindia.org/
http://www.nandeddic.in/schemes.html

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