Entrepreneurship Development Name: Aarya Jadhav 1152190163 Class: Sy BSC Economics

Case Study Assignment no.
3
Entrepreneurship development
Name: Aarya Jadhav 1152190163
Class: SY BSc Economics
Introduction:
Lijjat papad, a brand today, was started by 7 housewives who were bored and
wanted to start an enterprise to make most of their time and get some extra
income for their families. The Sri Mahila Griha Udyog Lijjat Papad (SMGULP)
started with its founders having no knowledge what it is to become an
entrepreneur and run a self-employed business but with time their business grew
to sky heights. With minimal leverage and effective work ethics and culture the
organisation has managed to make its name and market share today. Today the
organisation is spread across various rural parts of Maharashtra and Gujrat.
History:
It was started in 1959 by 7 Gujrati housewives to support their family and to
make efficient use of their free time. The seven women were Jaswantiben
Jamnadas Popat, Parvatiben Ramdas Thodani, Ujamben Narandas Kundalia,
Banuben. N. Tanna, Laguben Amritlar Gokani, Jayaben V. Vithalani etc. they
started making papads on a big terrace in south Mumbai. Initially borrowed 80rs
to start the work and within 3 years their business grew at such pace that there
were 300 women working for the organisation and today it has reached to
42,000 members. This case shows that even after not knowing any crux of what
it takes to start a business these ladies showed all the qualities that a successful
entrepreneur portrays.
Aim, business ethics and culture of organisation:
 The organisation was solely "for the women, by the women and of the
women" to empower women and help them to pe productive. It has
become a symbol of the progress of women in developing countries like
India.
 It aims to supplement their family incomes and create a sustainable
source of employment with the only skill they had which was cooking.
To empower women economically to improve their standard of living.
 SMGULP refers employees as co-owners and all members are referred as
sisters, to give them a sense of belonging towards the organisation and in
return they will put in more hard work for the betterment of the company.
 Helping the disadvantaged sections of society to better their livelihood
conditions and to inculcate feelings of self-confidence and self-reliance. It
has taken a major step towards eliminating poverty and illiteracy and
forms a vital link between social development and the advancement of
rural women.
 The organization believes that business must be done with prudence, so
they divide profits among all the employees judiciously.
 For employees, SMGULP is a source of strength and a place of worship
where they work for the benefit of all which is a great workplace
environment for any employee and the fact that the organisation has
managed to hold up to such standards is very commendable.
 The organisation has provided better facilities for its employees such as
pick and drop bus services.
Que1: Challenges faced by Women Entrepreneurs:
 Difficulties in financial support to start a business. Most of the women
are denied big loans by banks which creates a primary barrier to start any
business.
 No flexible mobility for women. This is because it is not considered safe
for women to stay late at work also most of the rural women don’t know
how to ride vehicles, so it gets difficult to travel at workplaces.
 Illiteracy among the rural women is a significant factor as they are
unaware of most things which could be of benefit for them.
 Lack of risk bearing ability. As the women are not financially literate so
their ability to bear the risk involved in running a company reduces
significantly.
 Societal confrontation: as the society is male chauvinist, women are
looked like the weaklings in terms of running a business and taking
decisions, so they even suffer from stiff competition from the male owned
business rivals.
Que2: Suggestions for effective functioning of the organisation in future:
 Start educational programmes for the employees to increase their
educational coefficient so that they can pitch in different angles to better
the functioning of the organisation.
 Introduce newer products such as pickles, tailoring or handicraft products
to increase the business, diversify it and involve more people who has
expertise in these skills.
 Monitor that they are working according to their vision and mission and
are reaching their set aim/ goals.
 Provide employees with better incentives so that they will always be
motivated to work to their fullest capacities.
Topics from syllabus that are related to the case: All explained above
under the aim, business ethics and culture section in detail.

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