CHANAKYA NATIONAL LAW UNIVERSITY, PATNA

Sociology-II

Project on:- Female entrepreneurship:

achievements and obstacles

SUBMITTED TO: Dr. SANGEET

SUBMITTED BY: Manini Jaiswal

IstYEAR-2ndSEMESTER

ROLL NO.429

ACKNOWLEDGMENT

“Character cannot be developed in ease and quiet. Only through experience of trial and suffering

can the soul be strengthened, ambition inspired, and success achieved.”

The success of any project depends largely on the encouragement and guidelines of many others.

I take this opportunity to express my gratitude to the people who have been instrumental in the

successful completion of this project.

I would like to extend our heartfelt thanks to the Vice Chancellor, Dr. A. Laxminath , teacher,

Dr. Sangeet , our Professor, for nurturing a congenial yet competitive environment in the

University, which motivates all the students to pursue higher goals.

I would like to extend our thanks to all the teaching and non-teaching staff members of our

University, and to all my colleagues who helped me with the ever daunting task of gathering

information for the completion of the project.

Finally, how can I forget the almighty the supreme power the GOD and my loving parents

without whom this work task was only a distant dream.

Manini JaiswalRoll 429

RESEARCH METHODOLOGY

Research Methodology is a systematized investigation to gain new knowledge about the

phenomena or problems. Legal phenomena require their own research methodology. The

research methodology applied here is doctrine method of research. The systematic investigation

of problems and of matters concerned with the topic “Female Entrepreneurship:

Achievements and Obstacles” has been done. The books in the library and materials available

on the internet have been used to study the social and behavioural phenomena of the topic and its

verification. The main object of this legal research is to gain familiarity with legal phenomena

and to test and verify old facts to disguise the weakness or merits of old legal aspects to analyze

the facts into new theoretical frameworks.

1.IntroductionThe main aim and objective of this project work is to know about the facts and information

relating to the Female Entrepreneurship and study about the achievements and obstacles which

come on the way of success of these entrepreneurs.

In order to know about these facts, the help of books and internet have been taken. Both

doctrinal and non-doctrinal mode of research was conducted for gaining the true facts from

the society and in trying to know what the society thinks about it.

In this project work, there are many topics which have been dealt with in relation to the

achievements and obstacles of female entrepreneurship. Firstly a short introduction about the

topic is given, then we move on to know what the historical perspective of female

entrepreneurship in India is. Then there is a description about the present status of women

entrepreneurship which is followed by the legal provisions and schemes given to women

entrepreneurs followed by the conclusion.

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.

Across centuries and across time, the role of women remains rooted into eternity. It

forever remains the same and at the same time goes through many transitions. It takes

centuries for women‘s roles to unfold in different forms, shapes and sizes and to move in new

directions. There are some locales where women live in a bygone century chained and

shackled to the social structures and coding and wishes of others who carve a code of conduct

on stone. Whereas there are other locales where women struggle to find freedom and space to

define their roles in a new context with new occupations and forge a new path for their lives.

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

defence 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.

2. Historical Perspective

Most women business owners in Indian organization were either housewives or fresh

graduates with no previous experience of running a business. These women business

owners were in traditionally women œ oriented business like garments, beauty care, and fashion

designing, which either do not require any formalized training or are developed from a hobby

or an interest into a business. The classic example will be of herbal queen Lady Shehnaz

Hussain who started her herbal-based treatment from a relatively small scale. In fact, she

started literally from her kitchen domain to a chain of beauty parlours spread out across the

nation and world. Shehnaz started her business as a hobby on a relatively small budget and made

an herbal empire to be inherited by her family.

Women, who had started out their own business without any mentor or legacy, had created their

own plateau and also earned many feats. For example, Shehnaz Hussain, who had neither a legacy

nor a mentor to follow, created her own legacy for her family. Women, on other hand,

who inherited a small business from the family, had taken their small business to a greater extent

and turned it out into a large organization. While there are also some women who had inherited a

large organization, had taken the organization to a much higher plateau.

WOMEN ENTREPRENEURS OF THE FIFTIES

In these years women resorted to entrepreneurship for two reasons, which were that either the

husbands were out of job or not interested to work, or the husbands had left a legacy for the

family where these women were the only ones to look after.

But mostly in this era, businesses were taken away by relatives and the women and their

families lived their lives as dependants while they had the resources or did not have the

resources.1

WOMEN ENTREPRENEURS OF THE SIXTIES 1 Kohlan, Bharti & Indira Parikh, A Reflection Of Indian Women in Entrepreneurial World, (IIM Ahmedabad, Aug 2005) 9

In this decade, women who were educated at schools and colleges had just started to develop a

sense of aspiration. But not following their dreams and aspirations, they resorted the society and

culture and got married. Although, they started with taking small steps and began with activites

of self- sufficiency and engagement from home after marriage, which was mainly due to their

aspirations, these activities were still not for economic autonomy.

WOMEN ENTREPRENEURS OF THE SEVENTIES

In this decade, many women were educated and many started to chase their dreams and

aspirations of establishing one woman entrepreneurs which would employ others. These

enterprises started from the parental homes and continued till their own houses.2

WOMEN ENTREPRENEURS OF THE EIGHTIES

By the time eighties came around, the women were educated in highly sophisticated

technological and professional education.3 This was the decade of the breakthrough for women

in many fields and many frontiers. Women made personal choices, stood up for their

convictions and had the courage to make new beginnings. However, all these choices and

beginnings was a not smooth sailing. For many, the society was hostile, the family was opposing

and non-supportive and the woman carried the guilt of not playing the traditional and appropriate

social roles viz. that of being a good mother.

WOMEN ENTREPRENEURS OF THE NINETIES

The scenario in nineties changed, and it was all due to the efforts of the women in earlier two

generations. The women of the nineties were capable, competent, confident and assertive women.

They knew what choices to make, they were clear as to what they wanted to do and they went

ahead and did it. The nineties have thrown up many names of women who initiated an enterprise,

fostered it and nurtured it to grow. There were many others who entered the big enterprises of

their fathers and husbands and contributed it with their competencies and capabilities.

Sometimes they outshone the names of their fathers and husbands.4 This was the first time that

“the best” took the place of “the male heir”.

2 Ibid, Pg 93 Ibid, pg 104 Ibid , pg 10, 11

Through these changes women on the social front have become brave, independent, and are now

living a life all on their own. They have now the courage to give an answer to the social taboos,

physical violence, domestic violence and the system of dowry. Marriage has not only remained

their future.

3. present status of female entrepreneurs

Women Entrepreneurs may be defined as the women or group of women who initiate,organise

and co-operate a business enterprise. Government of India has defined women entrepreneurs as

an enterprise owned and controlled by a woman having a minimum financial interest of 51% of

the capital and giving atleast 51% of employment generated in the enterprise to women.

The Indian women are no longer treated as show pieces to be kept at home.They are also

enjoying the impact of globalisation and making an influence not only on domestic but also on

international sphere.Women are doing a wonderful job striking a balance between their house

and career. They have left their male counterparts behind in their achievements.

Here are a few:

1.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 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

biggest biopharmaceutical firm in the country.

2.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.

3. Neelam Dhawan, Managing Director, Microsoft India, leads Microsoft India. She is a

graduate from St. Stephens College in 1980, and also passed out from Delhi’s 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.

4. Naina Lal Kidwai, was the first Indian woman to graduate from Harvard Business School.

Fortune magazine listed Kidwai among the world’s top 50 Corporate Women from 2000 to 2003.

According to the Economic times, she is the first woman to head the operations of a foreign bank

in India. ( HSBC).

5. 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.

6.Priya Paul, she has a bachelor’s degree specialising in Economics from Wellesley College,

USA. She entered her family business and is currently the Chairperson of Park Hotels.

7. Simone Tata, has been instrumental in changing a small subsidary of Tata Oil Mills into

the largest cosmetic brand in India – LAKME, synonymous today with Indian Fashion. She

became a part of Lakme during 1961 and has been responsible for turning the company into one

of the biggest brands of fashion in India. At present she is the Chairperson of Trent Limited, a

subsidary of Tata Group.

8.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.

9. 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.

10. 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 turn around of The Indian Bank.

Women like these are an inspiration for all other women who strive to achieve great heights in

their lives. Taking them as our role models each one of us can be there where they are right now.

All we need have is faith in ourselves, confidence and above all a fixed aim that we need work

towards.

4. obstacles and provisionsWomen entrepreneurs face a series of problems right from the beginning till the the enterprise

functions. Being a woman itself poses various problems to a woman entrepreneur, The problems

of Indian women pertains 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.

2. Male dominated society:

Even though our constitution speaks of equality between sexes, male chauvinism is still the order

of the day. 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

puts 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 (around

sixty per cent of total 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

hinders women entrepreneurs too. In rural areas, they face more social barriers. They are always

seen with suspicious eyes.

5. Shortage of raw materials:

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 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

organised sector and their male counterpart who have vast experience and capacity to adopt

advanced technology in managing enterprises

8. High cost of production:

Several factors including inefficient management contribute to the high cost of production which

stands as a stumbling block before women entrepreneurs. Women entrepreneurs face technology

obsolescence due to non-adoption or slow adoption to changing technology which is a major

factor of high cost of production.

9.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.

10 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.

11. Lack of entrepreneurial aptitude:

Lack of entrepreneurial aptitude is a matter of concern for women entrepreneurs. They have no

entrepreneurial bent of mind. Even after attending various training programmes on entrepreneur

ship women entrepreneurs fail to tide over the risks and troubles that may come up in an

organisational working.

12. Limited managerial ability:

Management has become a specialised job which only efficient managers perform. Women

entrepreneurs are not efficient in managerial functions like planning, organising, controlling,

coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited

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

13. Legal formalities:

Fulfilling the legal formalities required for running an enterprise becomes an upheaval task on

the part of an women entrepreneur because of the prevalence of corrupt practices in government

offices and procedural delays for various licenses, electricity, water and shed allotments. In such

situations women entrepreneurs find it hard to concentrate on the smooth working of the

enterprise.

14. Exploitation by middle men:

Since women cannot run around for marketing, distribution and money collection, they have to

depend on middle men for the above activities. Middle men tend to exploit them in the guise of

helping. They add their own profit margin which result in less sales and lesser profit.

15. Lack of self confidence:

Women entrepreneurs because of their inherent nature, lack of self-confidence which is

essentially a motivating factor in running an enterprise successfully. They have to strive hard to

strike a balance between managing a family and managing an enterprise. Sometimes she has to

sacrifice her entrepreneurial urge in order to strike a balance between the two.

Indian women started their entrepreneurial work in 1970s. Their entrepreneurship is traced out as

an extension of kitchen activities mainly pickles, powder and pappad. Women are encouraged to

start an occupation or venture with an urge to do something independently started to tide over

their economic difficulties and responsibilities.

In the seventies, Government of India has also brought a change in its policy objective of welfare

approach of women to development approach of women. Women were given priorities in all the

sectors including small scale industries sector. As a result, the number of women entrepreneurs

has increased over the years.

During 1980s, government and non-government bodies have paid increasing attention to women

entrepreneurs through formulation of various policies and programmes and introduction of new

schemes and incentives. It adopted a multi-disciplinary approach for development of women

entrepreneurs. Women entrepreneurs were given top priority for implementation of programmes

under agricultural and its allied activities of diary farming, poultry, animal husbandary,

handlooms, handicrafts and small scale industries, etc.

In the nineties, out of the total women population of 437.10 millions, there are 126.48 million

women workforce of which only 1,85,900 women accounting for self employed in the country.

This indicates a dismally low level of women participation in the entrepreneurial activities.

Further women entrepreneurs in India accounted for 9.01% of the total 1.70 million

entrepreneurs during 1988-89. There were more than 2,95,680 women entrepreneurs claiming

11.2% of the total 2.64 million entrepreneurs in India during 1995-96. The number of women

entrepreneurs have increased to 3,28,000 in 1996-97.

During the ninth five year plan, the government has introduced in 1998 an important scheme on

Trade Related Entrepreneurship of Assistance and Development (TREAD) aiming at economic

empowerment of women in rural, urban and semi-urban areas. It develops their entrepreneurial

skill and eliminates the constraints faced by women entrepreneurs.

The TREAD programme was operated through Small Industries Development Bank of India

(SIDBI). SIDBI has initiated various schemes for the growth of women entrepreneurs through

Mahila Udyam Nidhi (MUN), Mahila Vikash for Nidhi (MVN), Micro Credit Scheme (MSC),

Women Entrepreneurial Development Programme (EDP), and Marketing Development Fund

(MDF) for women entrepreneurs.

In the context of the opening up of the economy and the need for upgradation of technology, the

Consortium of Women Entrepreneurs of India (CWEI) is a common platform to help the very

women entrepreneurs in finding innovative techniques of production and marketing and finance.

Prime-Minister Rozgar Yojna (PMRY), National Rural Employment Programme and (NREP),

Rural Landless Employment Guarantee Programme (RLEGP) are some of the important schemes

floated by the Government which encourage women to enter into work entrepreneurial activities.

With growing awareness about business and due to growth of educational level, in professional

education, industrialisation, urbanisation and democratic values awareness, the tradition bound

Indian society has undergone a change and women entrepreneurs have shifted their

entrepreneurial activities to engineering, electronics and energy. They made personal choices,

stood up for their convictions and had the courage and strength to enter into new ventures. As a

result of these efforts, number of women entrepreneurs have increased over the years. Also there

was a non doctrinal research conducted regarding the topic and the results are herewith attached.

5.conclusion

There are ample opportunities in small businesses in India and such opportunities will transform

India in the coming future. For such transformation to happen there needs to be support both at

the governmental and societal level. For the government it is important to realize that the goal of

small business owners will be to remain self-employed. Such people may not need financial

assistance but they will need marketing and legal assistance in order to sustain themselves.

Practical and cost effective programs need to be developed to address their needs because self-

employed people will represent an important segment in economic revitalization.

Entrepreneurship development is the key factor to fight against unemployment, poverty and to

prepare ourselves for globalization in order to achieve overall Indian economic-progress.

6. bibliography1. Entrepreneurial Development by S.S. Khanka

2. Kohlan, Bharti & Indira Parikh, A Reflection Of Indian Women in Entrepreneurial World, (IIM

Ahmedabad, Aug 2005)

3. Dynamics of Entrepreneurial Development and Management Millennium Edition by

Vasant Desai

4. http://www.articlesbase.com/entrepreneurship-articles/

5. http://knowledgeportal.in/

6. http://dobato.blogspot.com/2006/02/scope-of-entrepreneurship-development.html

7. http://www.thehindubusinessline.com/

8. http://papers.ssrn.com/sol3/