International Journal of Business

Management & Research (IJBMR)

ISSN 2249-6920

Vol. 3, Issue 4, Oct 2013, 75-92

© TJPRC Pvt. Ltd.

A REFLECTION OF INDIAN WOMEN IN ENTREPRENEUR WORLD

KALPANA AGRAWAL

Assistant Professor, PIMR, Indore, Madhya Pradesh, India

Just a bird could not fly with its one wing only; a nation would not march forward if women left behind.

[swami vivekanand]

ABSTRACT

The paper focuses on women entrepreneur of India. There was a time when woman entrepreneurs in India used to

be in Informal sector usually because of lack of capital, labour and market know-how and social cultural norms of India.

But today women are present across sectors as varied as technology, clinical research and in retail, still poised to burst a

common myth that women-led businesses do not grow beyond a certain scale. Even we look at the developed countries we

see that women are actively participative in the business and trade activities, including agriculture, without any social or

other restrictions. But in India, there are still many social and cultural restrictions on women. Despite all the social hurdles

in India, many women have become successful in their works. The urban markets are buzzing with many women

entrepreneurs who have won market space. Many women entrepreneurs are stepping up to show they have the appetite,

skills and vision to take a shot at scaling their young ventures. This paper focuses on women entrepreneurship in India and

it also talks about the status of women entrepreneurs, nature of women entrepreneurship, and the problems faced by them.

The growth rate of women’s participation in economic activities is much lower than the expected rate. Hence, women

participation in entrepreneurial activities is less than the requirement of the fast growth of India.

KEYWORDS: Govt. of India about Women Entrepreneurship, Small Business Administration

INTRODUCTION

An entrepreneur is anyone who is working for themselves and retains profits or anyone who owns an enterprise

with workers. The origin of the basic word “entrepreneurship” is from a French word “Entree” “To enter” and “Pendre” “to

take” and in general sense applies to any person starting a new project or trying a new opportunity. The Definition given by

Govt. of India about women entrepreneurship,” An enterprise owned and controlled by a Women and having a minimum

financial interest of 51% of the capital & giving at least 51 % of the employment generated in the enterprise to Women”.

According to NKC ‘Entrepreneurship is the professional application of knowledge, skills and competencies and/or

of monetizing a new idea, by an individual or a set of people by launching an enterprise de novo or diversifying from an

existing one thus to pursue growth while generating wealth, employment.

National Knowledge Commission 2008 Defined

‘Entrepreneurship is the professional application of knowledge, skills and Competencies and/or of monetizing a

new idea, by an individual or a set of people by launching an enterprise de novo or diversifying from an existing one

(distinct from seeking self employment as in a profession or trade), thus to pursue growth while generating wealth,

employment and social good’.

Entrepreneurship refers to setting a new business to take advantages from new opportunities. Women are taking

interest in the Entrepreneurship in present years than past. During last two decades, increasing numbers of Indian women

76 Kalpana Agrawal

in have entered the field of entrepreneurship and also they are changing the face of business, now women are successful in

this as they have desirable qualities for entrepreneurship development. Entrepreneurship is a suitable profession for women

than regular employment. The women have achieved immense development in their mind. With increasing dependency on

service sectors, many opportunities are there for women. Women have been taking interest in recent year in self business

(Dhameja, 2002). In the process of Entrepreneurship, women have to face various problems and these problems get

doubled because of her dual role as earner and homemakers. In India most of the homemakers want to start their own

business but there are so many problems faced by them. They feel frustrated in dual role. Govt. started several programmes

for the training of women entrepreneurship. Training program create the interest among women and enhance their skills

and also to build the social attitude, and increase their confidence. Some Western multinationals have also developed

remarkable new business models to penetrate emerging markets using women, and at the same time, empower them

through creating spaces for learning.UNO 2003, Report on entrepreneurship says that ‘men are 50 percent more likely than

women to start a new business: 13.9 percent of men become entrepreneurs compared to only 8.9 percent of women.

Entrepreneurship is the core of economic development. Entrepreneur is a key factor of entrepreneurship. The

salience of Entrepreneurship in India has intensified in recent times, particularly with the rise in knowledge-intensive

services. New entrepreneurs who do not belong to traditional business communities have begun to emerge in large

numbers. Entrepreneurship has grown rapidly, visibly so, creating wealth and generating employment, especially in the

past twenty years. Crucial efforts initiated after economic liberalization including systematic attempts to reduce the ‘license

raj’, greater efforts to make finance more easily accessible to entrepreneurs and other institutional support to ‘techno-

preneurs’ have helped improve the climate for Entrepreneurship. And in present time women are an emerging economic

force. Women constitute the family, which leads to society and family. Social and economic development of women is

necessary for development of any country. Every woman wants to start their own business but can not succeed in our

Indian environment in way in which it should be. Due to changing environment, now men have easily accepted the women

entrepreneurial opportunity. Our increasing service sector also promotes the women entrepreneurship (Kaushik 2013).

Entrepreneurship in India occurs in ‘far more encompassing and far reaching ways than in developed countries’,

and could therefore be far more complex, ‘for there is so much more that needs to be done’. Commentators today celebrate

the ubiquitous Indian attitude of ‘Jugaad’ (a Hindi word roughly translated as ‘creative improvisation) a tool to somehow

find a solution based on a refusal to accept defeat, and calling on initiative, quick thinking, cunning and resolve to quickly

fulfill market demands at the lowest possible prices as an entrepreneurial trait that has been as much a part of everyday

Indian living as its rich tradition of philosophy and speculation.

Women are generally perceived as home makers with little to do with economy or commerce. But this picture is

changing. Desire to build the wealth, the wish to capitalize own business ideas they had, the appeal of startup culture, a

long standing desire to own their own company and working with someone else did not appeal them (Cohoon, Wadhwa &

Mitchell, 2010).So in Modern India, more and more women are taking up entrepreneurial activity especially in medium

and small scale enterprises. Even as women are receiving education, they face the prospect of unemployment. In this

background, self employment is regarded as a cure to generate income. The Planning commission as well as the Indian

government recognizes the need for women to be part of the mainstream of economic development. Women

entrepreneurship is seen as an effective strategy to solve the problems of rural and urban poverty. Traditionally, women in

India have been generally found in low productive sectors such as agriculture and household activities. Human

Development Report 2004 ranks India 103 in Gender related Development Index (GDI). As per 2001 census; women

constitute nearly half of India’s population. Out of this total, 72% were engaged in agriculture, 21.7% in other non

A Reflection of Indian Women in Entrepreneur World 77

agricultural pursuits with only 6.3% in household industries.

Women entrepreneurs in India are handicapped in the matter of organizing and running businesses on account of

their generally low levels of skills and for lack of support system. The transition from homemaker to sophisticated business

woman is not that easy. But the trend is changing. Women across India are showing an interest to be economically

independent. Women are coming forth to the business arena with ideas to start small and medium enterprises. They are

willing to be inspired by role models- the experience of other women in the business arena.

The role of women entrepreneurs is especially relevant in the situation of large scale unemployment that the

country faces. The modern large scale industry cannot absorb much of labour as it is capital intensive. The small scale

industry plays an important role absorbing around 80% of the employment (Sengupta,1964). The myth that women cannot

engage in productive employment needs to be dispelled. They can be encouraged to set up small and medium scale

industries on their own initiative. Entrepreneurship development for women is an important factor in economic

development of India. Rural women are being encouraged to start cottage industries. Like micro enterprises have been

encouraged by the government by various schemes-such as Integrated Rural Development Program (IRDP), Training of

Rural Youth for Self Employment (TRYSEM), and Development of Women and Children in Rural Areas (DWCRA). The

aim is to remove poverty through entrepreneurial programs.

Entrepreneurship Pyramid

Entrepreneurship ‘Pyramid’ in India (in terms of sectors and numbers of people engaged) is made up of the

following:

Level 1: Agriculture and other activities: Crop production, Plantation, Forestry, Livestock, Fishing, Mining and

Quarrying.

Level 2: Trading services: Wholesale and retail trade; Hotels and Restaurants

Level 3: Old economy or traditional sectors: Manufacturing, Electricity, Gas and Water supply

Level 4: Emerging sectors (including knowledge intensive sectors): IT, Finance, Insurance and Business services,

Construction, Community, Social & Personal Services, Supply Chain, Transport- Storage-

Communications etc.

OBJECTIVES OF THE STUDY

To study the beginning of Women Enterpreneurship in India from informal sector.

To study the Nature of Women Enterpreneurship.

To study the help provided by Self Help Groups to economically deprived women.

To make aware women entrepreneurs with the financial bodies which provide help.

To study the few women entrepreneurs of India who became inspiration for others.

To study the problems faced by women.

To give suggestions for Indian govt.and women entrepreneurs.

RATIONALE BEHIND WOMEN ENTREPRENEURSHIP

India has been a flourishing ground for enterprises, and this phenomenon has witnessed an unprecedented surge in

78 Kalpana Agrawal

the last few years. Women-owned businesses are one of the fastest growing segments of our economy, according to the

Small Business Administration. Many women entrepreneurs are stepping up to show they have the appetite, skills and

vision to take a shot at scaling their young ventures. There was a time when women entrepreneurs used to be in Informal

sector usually because of lack of capital, labour and market know-how and social cultural norms of India. More than ever

before, change is the only constant in life, especially so in industry, and as a consequence, tremendous opportunities are

opening up for women entrepreneurs. Across sectors as varied as technology, clinical research and retail women are poised

to burst a common myth that women-led businesses do not grow beyond a certain scale. It is true that the presence of

women entrepreneurs is very low in India, but one can look at it as another great opportunity riding on this all-pervasive

change and not as an obstacle toughening the entry barrier further for women in industry. Barely a decade ago, had few

people anticipated that the proportion of women in call centers and IT industry would rise to be what it is today. Similarly,

women as entrepreneurs can be a game changer and change the rules of the game in industry. Right now, women from

upper class families are able to make the transition from homemaker to entrepreneur more easily compared to their

counterparts from the middle and lower classes of society (Jesselyn, 2008).The urban markets are buzzing with many

women entrepreneurs who have won market space and mind space, recognition and awards. It is estimated that presently

women entrepreneurs account for about 10% of the total entrepreneurs in India. It is also clear that this percentage is

growing every year. If prevailing trends continue, it is not unlikely that in the next five years, women will comprise 20% of

the entrepreneurial force in India. In terms of numbers, one would estimate at least 5 lakh women entrepreneurs. Studies

have shown that successful Women entrepreneurs start their businesses as a second or third profession. Because of their

previous careers, women entrepreneurs enter the business world later on in life, around 40–60 years old. As women are

now overtaking their male peers when it comes to education, having higher education degrees is one of significant

characteristics that many successful female entrepreneurs have in common (Schumpeter, 2012).

A recent international study found that women from low to middle income countries (such as Russia, Asia and the

Philippines) were more likely to enter early stage entrepreneurship when compared to those of higher income countries

(such as Belgium, Sweden and Australia).A significant factor that may play a role in this disparity can be contributed to the

fact that women from low income countries often seek an additional means of income to support themselves and their

families. Overall, 40 to 50 per cent of all small businesses are owned by women in developing countries (Lemmon, 2012).

Alternatively, this may also be due to the fact that, in western business practices, it is not seen as beneficial to

exhibit feminine traits. While eastern businesses tend to follow methods based around mutual respect and understanding,

western business expectations are for business leaders to be more ruthless, headstrong and less sensitive or respectful. "In

the grab for power women use whatever means available to them, whereas a man would take a club to his opponents head a

woman is more likely use other less forceful and more subversive measures”(Jacob,2012).

This status paper analyzes the status of women entrepreneurs and the problems faced by them when they venture

out to carve their own place in the competitive world of business environment. It focuses on issues and challenges facing

women entrepreneurs and offers remedies and suggestions. And this paper is also an attempt to inspire, motivate, and

encourage entrepreneurship and self employment which is the only hope under the present unemployment blues. All it

needs a self will, determination, dedication and guts to venture out in full.

Recent surveys, such as those undertaken by Goldman Sachs and Pricewaterhouse Coopers, have estimated that

India has the potential to be among the world’s leading economies by 2050.22 Further, India’s economy can potentially

gain significantly from the country’s characteristic features — a democratic open society, a strong technology base,

unparalleled diversity, vibrant capital markets (including growing private equity and venture capital markets), an

A Reflection of Indian Women in Entrepreneur World 79

increasingly youthful population (50% of India is 25 years and younger), a sizeable market of a large number of customers

with vast unmet needs as well as an environment of full and free competition in the private sector.

WOMEN ENTREPRENEURS IN INFORMAL SECTOR

The informal sector consists of all activities that fall outside the formal net of registered, taxed, licensed,

statistically documented, and appropriately zoned business enterprises (Thomas, 1988). International Labor Organization

(ILO) defines informal sector as “enterprises with a small scale of operation, family ownership, labor-intensive units,

adaptive technology and operating in unregulated and competitive markets”. System of National Accounts (1993)

classified informal sector into (a) Household Sector and (b) Unincorporated Enterprises (Ivo and Viet, 1993).

The informal sector is particularly important with respect to women, because contrary to the formal sector,

women are over-represented (i.e. make up for more than 50 per cent) in the informal sector in developing countries (Chen,

2001). Moreover, they are also important with respect to the formal economy, because rather than being divorced, the

formal and informal economies are linked in complex and intimate ways. With the gender-wage-gap being greater than in

the formal sector; women are more present in the ‘lower-value-added’ activities of the informal economy; the most

invisible informal workers, namely the home-based producers contribute the most to global trade as they form a significant

share of the workforce in key export industries involving manual tasks or labour intensive operations.

The concept of informal sector has its origin in the beginning of the 1970s and has become so popular since then

that it is nowadays being used for various purposes and with various meaning. The informal economy can however no

longer be considered as a temporary phenomenon. Furthermore, the informal economy has been observed to have more of

a fixed character in countries where incomes and assets are not equitably distributed (Ramani,et,al.2013). It seems that

even if economic growth is not accompanied by improvements in employment levels and income distribution, the informal

economy does not shrink. The situation is therefore that the informal economy is continuously increasing in most

developing countries, even in rural areas. Estimates show that the non-agricultural employment share of the informal

workforce is 78% in Africa, 57% in Latin America and the Caribbean, and 45-85% in Asia. In all developing countries,

self-employment comprises a greater share of informal employment than wage employment. Consequently, informal wage

employment in the developing world constitutes 30-40% of the informal employment outside agriculture (Becker, 2004).

Women are 30 % of official labour force and utilize 60 % of all working hours but receive only 10 percent of the world

income and only 1 % share in property (Arpita Sharma, 2011).

In an exhaustive literature survey of entrepreneurship by women, (Carter, Marlow and Bennet 2012) highlight that

as in their developed country counterparts, in developing countries, women’s ventures tend to be younger, smaller and

created with fewer resources. Unlike in developed countries, women entrepreneurs are more likely to be in the informal

economy in developing countries. They usually operate from their homes, have low earnings and compete in overcrowded

sectors. Production is based on very scarce financial, human and physical resources. They are also low-skilled and isolated

from professional networks that characterize firms in the formal economy. More often than not, women are present as

entrepreneurs in the informal economy, not out of a personal ambition to generate wealth, but because they have no other

choice given the poverty level of the household. Innovation and entrepreneurship usually go hand in hand as new market

creation requires novelty in terms of a product, process or business model, but our knowledge and understanding of

innovation processes in the informal economy, especially by women remains extremely limited.

According to Chen (2001) it is mainly because, “women are less able than men to compete in labour, capital and

product markets because they have relatively low levels of education and skills or are less likely to own property or have

80 Kalpana Agrawal

market know-how” and “...women’s time and mobility are constrained by social and cultural norms that assign the

responsibility for social reproduction to women and discourage investment in women education and training”. Excessive

government regulation, government corruption, costly and time-taking bureaucracy, high tax rates and lack of time

flexibility in the formal sector might just be pushing women into the informal economy.

Chen (2002) adds that with formalization women in the informal economy risk to lose an important competitive

advantage in a world characterized by global assembly lines where firms engage in a ruthless gamble of competitiveness

through cost reduction – namely cheap labour. By being in the informal economy, distinct from the formal one, women are

able to leverage self labour to bring down the final price of the product and be competitive with respect to the formal

enterprise products. However, if the informal sector organizations were formalized, unless compliance to minimum wage

laws was strictly monitored and enforced, which is not the case at the moment, women might be in a worse off exploited

situation. Thus, the authors seem to be of the view that under existing patriarchal societal norms coupled with competitive

markets, the formalization of the informal economy is more likely to lower the profitability of informal economy ventures

through increasing their fixed costs and eliminating some of their comparative advantages.

NATURE OF WOMEN ENTREPRENEURSHIP

With the arrival of media and diverse prospects, the modern women are fast growing from job aspirants to job

creators. They are making their marks as interior decorators, journalists, garment manufacturers, fashion designers, etc. and

are equally contributing in the nation's economy. While discussing women entrepreneurship we limit our concern till males

and with big and small capital ventures. Here we limit ourselves with a investment of few lakhs and or Crores. It needs

widening our concern and area.

Agriculture

It was the basic source of livelihood for the people since ages. In rural India 89.5 percent of the total female

labour force is employed in agriculture and allied industrial sectors. The occupational development during the period

consisted of ownership of land, pasture grounds, trees, forest, water resources, mines etc. An even woman is developing

their technological base of agricultural development in terms of advance knowledge of crops, weather, rainfall, fertilizers,

etc. and implements it. Entrepreneurship in technology gave rise to trade. The system is so developed that peasantry and

the artisans produced surplus goods surplus goods, these were brought to towns and exported also.

Vegetable, Fruits and Fruit Juice Vendors

This is the area, though female dominated, never regarded as entrepreneurship until some student after MBA or

BE had entered in door to door selling of vegetables. Women are growing vegetables, fruits, dry fruits and selling also. But

they never are seen as entrepreneurs. Many self help groups are formed by women to loan and to develop their business.

Now they are becoming self sufficient, owing their space in market and society. More and more women’s are joining as

fruit and vegetable vendor and opening fresh fruit juice shops, fruit salad, Coconut water etc.

Train Vendors

Astonishingly the vendors or business fellow roaming in moving trains are not recognized as business persons.

They are the unlicensed entrepreneurs. No Bank finances them but they, with small amount of capital and cash do their

business between risks of life and police and gundas or snatchers. A number of women could be seen roaming in trains

selling eatables, tea, coffee, soft drinks, soaps, toys, food, decorative items, household equipments, fruits and dry fruits,

nuts, books etc. They are the entrepreneurs regularly facing risk yet surviving and serving their family and society.

A Reflection of Indian Women in Entrepreneur World 81

Roadside Stalls, Food, Chaat, Snacks etc

When somebody see these stalls they seem to be doing very small selling. But if one will look it deeply, it is a

billion or more industry in every state of our country. Women from east to west and north to south had a hold in the

industry. The snacks stall at Bangalore started by a lady is now more than 150 in her ownership. VadaPao is a big industry.

These are the business where women entrepreneur had shown their presence and still needed to be recognized as

entrepreneurs.

Home-Based Production Units

Such as Soaps, washing powder, basket making, mat weaving, beedi making, lace making and the production of

agarbatti candles, garments, telephone mats, handicrafts, paper dice, ink, mangodi, papad, pickels jams,squash etc.

Clothing, Garment and Boutiques

It is a field where rural women are involved as a weaver, dyer, printer, designer etc. They are cutting sewing,

preparing designs, marketing the product, selling in urban, semi urban, rural, and remote areas. Women are not only selling

the finished cloths but the raw, rejected, second grade cloths and pieces are also sold as wipers and dusters. These women

can be seen in rural markets hanging the sacks of rejected used cloths, garments on one shoulder and basket of utensils on

the other. On the other hand urban women are running exclusive boutiques. For them opening a boutique is the first thing

that comes in any woman’s mind. Even though there isn’t any lack of boutiques in any city, the customer base of such

stores keep increasing every day; as customers want better quality and variety in the types of clothes and accessories they

wear.

Beauty Parlour

This small business only needs a little investment on training, quality products and basic equipment. So women

are easily turning a spare room into a cozy beauty salon. This beauty business suits women of every age. And those women

who have sound finances provide an unparalleled salon and spa experience for their clientele.

Fitness Center (Gym) and Yoga Classes

This business requires a bit extra investment to set up but in the resulting profit are great. The gym equipments are

expensive but are a one-time investment so women have ventured in this too. Since almost everyone is health conscious

these days, the business has become profitable. It is also giving added benefit with yoga expert and a trained aerobics

trainer. Many women are running just yoga training center from their home.

Internet Business

The Internet has changed our total lifestyle. With the help of some computers and an internet connection women

are running cyber cafes. There are many ways to start earning online. Some are putting their skills to use and start

freelancing on the web writing blogs, articles and feeds for websites. Also, e-stores generate a lot of revenue if they are

marketed well.

Gift Shop

Few women are running gift shops, as no prior experience is required in setting up a gift shop business. Everyone

knows what to expect in a gift shop, so women easily order things from a trusted dealer accordingly or search the Internet

for latest gift items and build up their stock in their stores to sell.

82 Kalpana Agrawal

Restaurant

Most women are talented and passionate about cooking. Therefore this business idea is working well. Women

even can be seen running their own restaurant, café and catering services.

Daycare/Crèche

Women love children, hence they have started up a small daycare center or crèche at their homes. Even spending

the day with kids is a fun and profitable at the same time for them. Thus they can easily balance work and home life.

Creative Classes

Running on a small to medium scale music or dance academy, handicraft, agarbatti, candles making, cooking etc.

Interior Decoration Store

Women have a good sense in designing and keep their homes beautiful, hence they have opened an Interior

designing business.

Pet Shop

Few urban women have started a shop to cater the needs of pet owners with items like pet foods, accessories,

clothes, cages, kennels, etc. Owing a pet is becoming popular these days and pet lovers are more than willing to spend on

accessories and knick-knacks for their pets.

Consultancy

Women who are having good network of contacts with professionals from different industries are breaking

barriers and blazing trails in Consultancy. Even though women make up just about a quarter of the consulting profession,

their collective impact is exponentially larger.

Business Agents

Many women are agents to sell cosmetic and branded plastic cooking utensils like Tupperware.

Home Tutions and Coaching Classes

Women are also running home tuitions in the field she is expert in and many are earning handsome through their

coaching classes.

Jewellery Designing

Woman keen attention to detail is evident in the one of a kind pieces she designs and often hand crafts is a

creative gift to the world of fashion. Influenced by the rich and eclectic culture of India, her designs are intrinsically

vibrant, dynamic and attuned to the times. Every piece of design is unique and divine in their exquisite quality and beauty,

molded to perfection with the pulse of the modern yet traditional woman in mind.

Women in Knowledge Intensive

Sectors are taking entrepreneurship. They are coming up as software professionals. Like Stuti Jalan has

established Communication Network. They are establishing their own ventures.

Service Entrepreneurship

An emerging field for entrepreneurship is services, where women are registering their presence and proving their

intellect and traits.

A Reflection of Indian Women in Entrepreneur World 83

Security Services

Is an emerging area where they are establishing themselves.

SELF HELP GROUPS FOR FINANCIAL SUPPORT FOR ECONOMICALLY DEPRIVED WOMEN

Self-help groups are started by non-governmental organizations (NGOs) that generally have broad anti-poverty

agendas. Self-help groups are seen as instruments for a variety of goals including empowering women, developing

leadership abilities among poor people etc (Rutherford, 1999). A Self-Help Group may be registered or unregistered. It

typically comprises a group of micro entrepreneurs having homogenous social and economic backgrounds, all voluntarily

coming together to save regular small sums of money, mutually agreeing to contribute to a common fund and to meet their

emergency needs on the basis of mutual help. They pool their resources to become financially stable, taking loans from the

money collected by that group and by making everybody in that group self-employed. The group members use collective

wisdom and peer pressure to ensure proper end-use of credit and timely repayment. This system eliminates the need for

collateral and is closely related to that of solidarity lending, widely used by micro finance institutions. To make the book-

keeping simple enough to be handled by the members, flat interest rates are used for most loan calculations. This model

has attracted attention as a possible way of delivering microfinance services to poor populations that have been difficult to

reach directly through banks or other institutions. "By aggregating their individual savings into a single deposit, self-help

groups minimize the bank's transaction costs and generate an attractive volume of deposits (Robert et.al, 2005).

Women were a further step behind the average man, having to contend with gender barriers in financial

institutions, discouragement in families, lower levels of education and confidence. The position of rural women in the State

has remarkably changed with the formation of SHGs, which started on an experimental basis in 1989 in the rural areas. It

helped poor rural women to enter the entrepreneurial world and it also helped them to develop self confidence,

communication, courage, independence, mobility, management and technical skills. Assisted by some NGOs and with a

little Government support, this movement gained momentum and developed into strong local institutions. They provided

legitimate avenues for social mobilisation with access to inputs, such as training, banking services, Government services,

etc. Most of them in the informal sector are now running micro enterprises or home-based production units such as basket

making, mat weaving, beedi making, lace making and the production of agarbatti, candles, garments, telephone mats,

handicrafts, paper dice, ink, etc.

Two recent studies conducted by Nirantar (1991) examining their linkages between literacy, leadership and

capacity building within Self – Help Groups found a high correlation between literacy levels, leadership opportunities and

access to credit. And since the socio- economic / status and education were correlated, leadership tended to get

concentrated in the hands of the better-off members.

Jakinow (2007) stated that Self-help has often perceived as a valuable, if not essential element to the development

programmes. At the same time, as a concept it has generally escaped scrutiny. Two types of claims were made about the

benefits of self-help programmes. First, it was suggested that self-help empowered its participants more so than other

externally directed or implemented programmes. The second less local claim has the compatibility of self-help with cost-

reduction strategies: both in terms of material costs and costs to the prevailing social and economic structure. This article

has explored these two claims through a case study of a self-help group (SHG) programme in Tamil Nadu, India. It has

argued that although empowering outcomes were stated as the rationale for self-help, these were often neglected in favor of

achieving cost-reduction ones. This has an outcome of the concept of self-help being absorbed into the practices and

discourses of the dominant development paradigm. Self-help had thus been divorced from its role in enabling self-

84 Kalpana Agrawal

direction, and had become the rationale for pressurizing the marginalised to take responsibility for improving their own

condition within a non-negotiable economic and social structure.

Petra Bergquist (2009) has raised a serious doubt on the extent to which microfinance serves as an adequate

strategy for poverty alleviation. He had argued that micro finance should be seen as a pro- poor policy that provided the

poor with financial services. This came in the light of a study conducted to analyze the material and symbolic outcomes of

microfinance, in a field study of SEWA Bank in Ahmedabad in association with Grameen Bank which had developed an

integrated approach to help SEWA women to break the vicious circle of poverty.

Financial Institutions Assisting Women Entrepreneurship in India

For the past several years, financial institutions have been playing a pivotal role in giving financial assistance and

consultancy services to women entrepreneurs. These institutions include: i) National Small Industries Corporation (NSIC),

ii) All-India Development Banks (AIDBs), viz. IDBI, IFCI,ICICI , IIBI, IDFC and SIDBI, iii) Specialised Financial

Institutions (SFIs),viz. Exim Bank and NABARD, iv) Investment Institutions, viz. LIC, GIC, NIC,NIA, OIC, UII and UTI,

v) Regional/ State-Level Institutions, viz. NEDFI,SIDCs and SFCs , vi) Commercial Banks, vii) Co-operative Banks, etc.

Marketing Organisation of Women Entrepreneurs (MOOWES)

MOOWES provides comprehensive support to women entrepreneurs to achieve success in the business. Its main

aim is to aid women in marketing their products through exhibitions and thus provide an opportunity to tour the country

also.

FEW WOMEN OF INDIA WHO BECAME AN INSPIRATION FOR ALL OTHER WOMEN WHO

STRIVE TO ACHIEVE GREAT HEIGHTS IN THEIR LIVES

Any understanding of Indian women, their identity, their role-playing, and breaking the glass ceiling by blazing

new paths, will be incomplete without a walk down the corridors of Indian history where women have done multiple roles

and responsibilities.

Kanika Dewan: The Diva who Designed Floors of IGI’s Terminal 3

Dewan's family-owned business, Bramco, headquartered in Bahrain, carried out the floor work for the airport.

More than 130,000 sq m of tiles was laid before the deadline of 11 months was over. After the project for the Delhi

International Airport, Bramco is now working on a similar project with the Mumbai International Airport. The company

has also done the flooring for a Leela Hotels project in Delhi. For somebody who has contributed to designing mansions of

several billionaires, apart from the work at the airports. After majoring in finance at the Wharton business school, instead

of continuing with investment banking, in which she had dabbled for a while, Dewan decided to become an interior

designer.

Nidhi Saxena, Karmic Pharmaceuticals

Karmic conducts clinical trials and provides clinical data management to pharmaceuticals companies, like

Novartis BSE -2.17 % International, Bayer BSE -0.69 % AG and CiplaBSE -0.48%.Nidhi Saxena targeted a revenue of Rs

54 crore. Saxena was previously the vice president for the North American operations of business process outsourcing

company,WNS. She raised the funding for her venture from Indian Angel Network, Basil Growth Corporation, SIDBI and

Mumbai Angels.

A Reflection of Indian Women in Entrepreneur World 85

Sneha Roy & Sananda Misra, Toptomato.in

Toptomato.in is an online platform by Sneha Roy & Sananda Misra for ordering all household items. Its not a new

concept but the founders aim to make it unique with its grocery subscription. One can subscribe for regular needs like milk,

butter, etc and can specify required frequency. TopTomato was launched in the month of September, 2012 by Sneha Roy

and Sananda Misra, graduates from Indian Institute of Technology, Kharagpur, with varied experience of working in the

FMCG sectors. The venture is self-funded and the seed capital was about Rs 5 lakhs. The initial capital was used for

building the website and setting up the back-end and delivery networks.

Vijaya Pastala, under the Mango Tree

Vijaya Pastala's enterprise has a Rs 60 lakh turnover from selling honey. The enterprise which took 14 years to

shape up has a simple business model.The sourced honey is tested, certified, packaged and labelled in a production plant

on rented premises in an industrial area, in Mumbai. The packaged products are sold online, delivered to over 100 shops in

Mumbai and Bangalore, as well as to a lot of B2B partners like Taj Hotels.After acquiring a post graduate degree in

regional planning from the MIT, US, in 1993, Pastala returned to India and stumbled upon the name for her future

venture.When her son was born in 2003, she changed career tracks. It took Pastala about a year to zero in on exactly what

she wanted to do.

Mitali Kalra, Zao Foods

The idea of starting her own cafe took root in 2010. After completing her MBA in finance from INSEAD in

France, in 2008, she spent a year working in Dubai and Singapore, handling private equity investments in oil and gas, and

shipping. About a year on, her craving for healthy fare spawned a business idea: a chain of health food cafes in India. So,

in December 2011, she left her cushy investment banking job, pumped in Rs 14 lakh from her personal savings, and

registered her company name as Zao Foods Private Limited. Samosas, kachoris, choley-bhaturey/ kulchey. No matter how

much we relish our traditional unhealthy savouries, there is the nagging need to eat nutritious food. To cater to this

growing awareness of eating healthy is Mitali Kalra's year-old Mediterranean cafe, Crostini, tucked away in a corner of the

HauzKhas Village in south Delhi. A year into operations, her turnover is Rs 25-30 lakh. Till date, she has invested Rs 30

lakh, but expects to earn Rs 35-40 lakh by end of 2013.

Shahnaz Husain Ayurvedic Beauty Care

Shahnaz Husain`s journey as an entrepreneur is a great inspiration for all the young entrepreneurs and startup

ventures. Shahnaz Husain is one of the rare and few first generation women entrepreneur, pioneer, visionary and an

innovator, who introduced a totally new concept of Ayurvedic Care and Cure worldwide. She created a brand with

universal appeal and application. Shahnaz Husain`s brand found place in the international market for Ayurvedic beauty

care. In a world ridden with environmental degradation, Shahnaz Husain ventured into the world of nature and its healing

powers, taking the Indian herbal heritage of Ayurveda to every corner of the globe with a crusader’s zeal. The pioneer of

Ayurvedic beauty care has achieved unprecedented international acclaim for her practical application of Ayurveda, the

ancient Indian system of herbal healing. Just when there was a worldwide “back to nature” trend, Shahnaz Husain

recaptured an ancient herbal system and made it relevant to modern demands.

Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd., who became India’s richest

woman in 2004, 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

86 Kalpana Agrawal

papaya. Her application for loans were turned down by banks then – on three counts – biotechnology was then a new word,

the company lacked assets, women entrepreneurs were still a rarity. Today, her company is the bigget biopharmaceutical

firm in the country.

Ekta Kapoor, Creative Head of Balaji Telefilms, is the daughter of Jeetendra and sister of Tushar Kapoor. She

has been synonymous with the rage of soap operas in Indian TV, after her most famous venture ‘Kyunki Saas Bhi Kabhi

Bahu Thi’ which was aired in 2000 on Star plus. Ekta dominates Indian Television.At the 6th Indian Telly Awards

2006,she bagged the Hall Of Fame award for her contributions.

Neelam Dhawan, Managing Director, Microsoft India, leads Microsoft India. She is a graduate from St.

Stephens College in 1980, and also passed out from Delhis Faculty Of Management studies in 1982. Then she was keen on

joining FMCG majors like Hindustan Lever and Asian Paints, both companies rejected Dhawan, as they did not wish to

appoint women for marketing and sales.

Indu Jain, the multi-faceted lady used to be the Chairman of the Times Group-The most powerful and largest

Media house India has known. Indu Jain is known by many different identities such as that of spiritualist, humanist,

entrepreneur, an educationalist but most prominently she played the role of the Chairman of Times Group. Indu Jain is the

perfect picture of the successful Indian Woman entrepreneur.

Preetha Reddy, Managing Director of Apollo Hospitals, Chennai, one of the largest healthcare conglomerates

of India, is one of the pioneer businesswoman of India in the segment of Health Care Industry.

Ranjana Kumar, Currently Vigilance Commissioner in Central Vigilance Commission, after her retirement

as the Chairperson of NABARD- National Bank for Agricultural and Rural Development, is a prominent Indian Banker.

When the Government of India appointed her as the Chairperson and Managing Director of The Indian Bank, she became

the first woman to become head of a public sector bank in India. At that time of her appointment, The Indian Bank was

saddled with huge losses and during her tenure she ensured the turnaround of The Indian Bank.

Mallika Srinivasan, Currently the Director of TAFE- Tractors and Farm Equipment, India was honoured

with the title of Businesswoman of the Year during 2006 by the Economic Times. She joined the company in 1986 and has

since been responsible for accelerating turnover from 85 crores to 2900 crores within a span of 2 decades.

With Social Entrepreneurship Exploding in Popularity all over the World – A Few Social Women Entrepreneur

In India, there is no shortage of talented female social entrepreneurs. Women like Ela Bhatt, who in 1972 founded

SEWA, the world’s first and largest trade union for undocumented women workers, as well as Women’s World Banking in

1979 - have been inspiring and leading women for generations. Jeroo Billmoria, founder of Child line India and Asoka

fellow since 1998, has become the case study example of social entrepreneurship around the world. In education,

Akanksha Foundation founder and Teach for India CEO ShaheenMistri is leading her country through arguably the most

complex and challenging learning ecosystems in the world. Padmaja Reddy and Chetna Gala Sinha have founded two of

the major microfinance organizations of India, Spandana and Mann Vikas Samajik Sanstha, while Neera Nundy, cofounder

of Dasra, and AparajitaAgrawal and Manju Reddy, cofounders of Intellecap, build and grow the social enterprise sector

through impact consulting.

PROBLEMS FACED BY INDIAN WOMEN ENTREPRENEURS

Women entrepreneurs face so many problems in aspects of finance, marketing, health, family, and other

problems. The traditional role of women as caretakers of children restricts the time they can invest in income generation.

A Reflection of Indian Women in Entrepreneur World 87

Norms (societal, Religious or other) also determine the mobility of women and with whom they may interact. This places

women entrepreneurs at a disadvantage because interaction within social networks is crucial for the success of

entrepreneurial ventures. Social networks enable entrepreneurs to build up their market and expand their businesses and

open new doors for gaining access to funding. Yuen’s (2009) study on 9000 entrepreneurs (not exclusively on women) in

urban China finds for example. That one of the most determinant factors of a successful entrepreneurial venture is the

existence of a social network that not only see credit constraints but provides access to supply and distribution channels or

even a channel to obtain the necessary licenses to operate.

In general, women have lower personal financial assets than men. This means that for a given opportunity and

equally capable individual, women must secure additional resources compared to men in order to exploit the opportunity

because they control less capital. A question that has developed into its own sub-field in the women’s entrepreneurship

literature is if women have a harder time getting finance than men for the same business opportunity (Brush and

Carter,1998). Getting fund for business has been biggest challenge for business across geographies.Women entrepreneurs

in India need an average of USD 9,376 in start-up capital for business, compared to USD 8,060 required in the UK and

USD 19,985 in the US.

The major problem faced by women are as

Lack of family support- Sometimes the family may make the women feel guilty of neglecting household duties in

her pursuit of business obligations. Cultural traditions may hold back a woman from venturing into her own

business. The traditional role of women as caretakers of children restricts the time they can invest in income

generation. Norms (societal, Religious or other) also determine the mobility of women and with whom they may

interact.

Lack of confidence and faith-lack of role models undermines the self confidence of women entrepreneurs. The

activity of selling is considered abhorrent to the female gender.

Lack of capital-traditional sources of finance like banks are reluctant to lend to women entrepreneurs especially if

they do not have any male or family backing. This is especially true of lower income females. Women do not

have adequate finance or legal knowledge to start an enterprise.

Lack of right public/ private institutions: Most public and private incentives are misused and do not reach the

woman unless she is backed by a man. Also many trade associations like ministries, chambers of commerce do

not cater to women, expecting women’s organizations to do the necessary thing.

People are still very hesitant to place big orders when they see a woman entrepreneur. They give a small order and

check the capability first. This challenge needs to be overcome.

Lack of marketing knowledge among women entrepreneurs because of lack of mobility and social network.

SUGGESTIONS TO ENHANCE WOMEN ENTREPRENEURSHIP

Rural entrepreneurship is the answer to removal of rural poverty in India. Therefore, there should be more stress

on integrated rural development programs. The problem is that most of the rural women do not think of

entrepreneurship as the career option. Therefore, the rural women need to be motivated to take up

entrepreneurship as a career, with training and sustaining support systems providing all necessary assistance.

Indian government should create ‘one-stop shops’ to provide all relevant information needed to start an

88 Kalpana Agrawal

entrepreneurial activity for women. There are a number of websites relating to Entrepreneurship in India. In this

regard, NKC proposes to explore the possibility of having an all encompassing website on Entrepreneurship as a

one-stop information portal for current and aspiring entrepreneurs. In addition, Entrepreneurship in India will also

grow significantly with the spread of e-governance and quality infrastructure development.

The government must evolve appropriate policies to help women entrepreneurs. Networking facilities must be

provided as well as adequate entrepreneurship awareness training should be provided using the help of local

NGOs. Credit facilities must be made available and marketing help must be provided. All these will help foster a

culture of entrepreneurship among women in India.

Financers need to become more active, particularly in knowledge-intensive sectors, and need incentives for

greater involvement. To create incentives for seed capital funding, some steps can be: establishing a secondary

market for smaller companies, creating new instruments for start-up funding and providing financial literacy to

start-ups.

There should be synergies between education (including modern vocational education training/skill development),

Innovation (converting ideas into wealth and employment) and Entrepreneurship among women should be

encouraged.

There is also a need to significantly increase Business Incubation for Entrepreneurship (BIE) among women by

comprehensively exploring policy options to improve access to financing. While valuable work is being done by

Indian women incubators, there is huge scope for them to become entrepreneurial themselves by providing

services such as market data, helping in preparing business models, recruiting skilled employees, etc.

The key challenges for the government is higher education for women, relate to ensuring its access, inclusiveness

and excellence. In Vocational Education and Training (VET) there is need to completely overhaul and modernize

current institutions and practices. Reforms in VET require innovative delivery models, providing incentives for

states, ensuring performance-based training and assessment, re-branding, certification, encouraging learning-by-

doing, incentivizing, english speaking skills, ensuring flexibility of VET alongside the higher education stream,

for easier crossover and choice, as critical success factors.

A meaningful implementation of the Single Window System; introducing a Single Composite Application Form as

already done in a few states; introducing a ‘Single Unique Company Number’ (for company, tax and social

security registrations); reducing the frequency of tax payments for women entrepreneurs from monthly to

quarterly; creating specialized commercial courts; introducing Limited Liability Partnerships (LLPs).

Women need to learn more about their market and competition prevailing in the market. They should promote

their product through advertising and other popular media channels. Acquaint yourself of the fast changing market

conditions by making optimum utilization of media and internet.

Women should be highly educated and trained in their area of knowledge so that they can attain expertise and

understanding of all the major operational aspects of business administration. This will assist a woman to take

balanced decisions beneficial for expanding her business network.

Women should know various institutions in the financial industry which give their assistance in the form of loans,

low rate interest scheme, incentives, etc. This will not only help women to kick start their business venture but

would also ensure constant supply of capital.

A Reflection of Indian Women in Entrepreneur World 89

Government should encourage women entrepreneurship towards formal sector by giving subsidies.

CONCLUSIONS

The above literature shows journey of women entrepreneur who uses simple things in innovative way to build a

business while keeping the balance among family, personal interest, social contribution and business. There was a time

when woman used to make soft toys as a hobby only, then moved to puppet making and converted these skills in to

business. Women conditions in country like India are different from western countries. The societal context is different in

India. Business for her now not only profit maximization but also giving something more to herself and building goodwill

in the society showcasing women empowerment, education, art and making a difference. She had started from informal

sector majorly from agriculture and Itawaria Bazar and now she has made her presence in every sector, they are building

businesses on a grand scale across multiple sectors. They are willing to take challenges of unfavourable situation. Yet the

potentiality and talent among the women is not identified adequately with only about 10-12% of the women being

entrepreneurs in India. At this critical economic situation of the country, when the job market is very down and those

women who are very keen to set up their small, medium and large sized enterprise, they should be encouraged as they can

give employment to various other people. Even the cultural practices and socialization processes and government scheme

awareness programs can further encourage these aspiring women. Especially those women who are self developed vendors

but in true sense they are unrecognized entrepreneurs they should be given more attention by the government.

Uma Reddy, the Managing Director of Hi-Tech Magnetics & Electronics Pvt Ltd, said that when she started her

company, people could not imagine a woman managing a company. Another entrepreneur Ishita Swarup, who owns a

shopping portal 99 labels says, "Women have become more experimental and are slowly shedding their inhibitions of

taking risk. People are still very hesitant to place big orders when they see a woman entrepreneur. They give a small order

and check the capability first. This challenge needs to be overcome. She brushed aside the misconception that being an

entrepreneur entails flexibility in timings and more free time in hand. Entrepreneurship has gained greater significance at

global level under changing economic scenario. Global economy in general and Indian economy in particular is poised for

accelerated growth driven by entrepreneurship. In India, the role of women entrepreneurs is more in the unorganised sector

whereas the number of enterprises initiated and being run by women in the formal sector is small. Enterprises started by

women are no longer confined to conventional fields but are venturing into the field of computers, engineering and

electronics. So Indian government must take needful measures for encouraging women in formal sector as well so woman

as an entrepreneur is not undermined.

REFERENCES

1. Brush, C. G. 1992. Research on women business owners: Past trends, a new perspective and future directions.

Entrepreneurship Theory & Practice, 16(4): 5-30.

2. Co, Mary Jesselyn (2004).‘The Formal Institutional Framework of Entrepreneurship in the Phillipines: Lessons

for Developing Countries’, The Journal of Entrepreneurship, 13, 2, Sage Publications, New Delhi.

3. Carter, S., Anderson, S., & Shaw, E. 2001. Women's Business Ownership: A Review of the Academic, Popular

and Internet Literature. London, UK: Small Business Service.

4. Carter, S., & Rosa, P. 1998. The financing of male- and female-owned businesses. Entrepreneurship and Regional

Development, 10: 225-241.

5. Chen, M. A. (2001). Women and informality: A global picture, the global movement. SAIS Review, 21(1), 71-82.

90 Kalpana Agrawal

6. Chen, M.A.(2002). Rethinking the informal economy: Linkages with the formal economy and the formal

regulatory environment (No. 2005/10). Research Paper, UNU-WIDER, United Nations University (UNU).

7. Cohoon, J. McGrath, Wadhwa, Vivek & Mitchell Lesa, (2010). The Anatomy of an Entrepreneur- Are Successful

Women Entrepreneurs Different From Men? Kauffman, The foundation of entrepreneurship.

8. Cooper, A. C., Woo, C., & Dunkelberg, W. 1989. Entrepreneurship and the initial size of the firms. Journal of

Business Venturing, 4(5): 317-332.

9. Cooper, C. A., & Dunkelberg, W. C. 1987. Entrepreneurial research: Old questions, new answers and

methodological issues. American Journal of Small Business, 11(3): 11-23.

10. Dhameja S. K (2002). Women Entrepreneurs, Opportunity, Performance, Problems, Deep Publications(P) Ltd.

New Delhi.

11. ILO. (2002). Women and Men in the Informal Economy: A Statistical Picture.

12. Jacobs, S (2012). Can we please change the Conversation.

http://www.shebusiness.com/2012/09/can-we-please-change-the-conversation/

13. Kaushik (2013). Challenges Faced by Women Entrepreneurs in India International Journal of Management and

Social Sciences Research (IJMSSR) ISSN: 2319-4421 Volume 2, No. 2, February 2013.

14. Lemmon, G. (2012). Women entrepreneurs, example not exception. Available from

http://www.ted.com/talks/lang/en/gayle_tzemach_lemmon_women_entrepreneurs_example_not_exception.html

15. Malathi V Gopal (2005). Role Conflicts of Women Entrepreneurs, Indian Institute of Management, NISIET,

Government of India, Hyderabad, p. 54.

16. Natarajan R (1991) Women Entrepreneurs in Tamil Nadu, (A Study, thesis , NITIE, Bombay)

17. Petra Bergquist (2009) Breaking the vicious circle of poverty – (university essay : Lunds University)

18. Robert Peck Christen, N. Srinivasan and Rodger Voorhies(2005) Managing to go down market: regulated

financial institutions and the move into microsavings. In Madeline Hirschland (ed.) 'Savings Services for the

Poor: An Operational Guide', Kumarian Press, Bloomfield, CT, p. 106.

19. Ramani, Shyama V. , Ajay Thutupalli, Tamas Medovarszki, Sutapa Chattopadhyay & Veena Ravichandran,

(2013). Women entrepreneurs in the informal economy: Is formalization the only solution for business

sustainability?, UNU-MERIT Working Paper 2013-018.

20. Reitz &Henrekson(2000). Testing the Female Underperformance Hypothesis,Small Business Economics,working

paper series.

21. Schumpeter (2012). "The daughter also rises women are storming emerging-world boardrooms". The Economist.

22. Sen Gupta Padmini,(1964). Women in India, Information Services of India, New Delhi, p.5.

23. Shirley Nuss, Ettore Denti and David Viry (1989). Women in the World of Work: Statistical Analysis and

Projections to the year 2000, International Labour Office, Geneva, , p.42.

24. T. Jakinow (2007) “The Rationale of Self help in Development Intervention A case study of a Self Help Group

A Reflection of Indian Women in Entrepreneur World 91

Programme in Tamil Nadu” JOURNAL OF SOUTH ASIAN DEVELOPMENT, (Vol. 2(1) January 1, 2007) PP

107 – 204)

25. http://www.thenextwomen.com/2013/02/20/10-upcoming-female-social-entrepreneurs-

india#sthash.1HrclS5D.dpuf

26. Stuart Rutherford. Self-help groups as micro finance providers: how good can they get? mimeo, 1999, pg9.

27. http://www.en.wikipedia.org/wiki/Informal

28. http://www.academia.edu/1753655/Entrepreneurship_and_the_informal_sector_some_lessons_from_India

29. http://www.iupindia.in/1203/Entrepreneurship%20Development/Rural_Women_Entrepreneurs.html