chapter five nature and growth of self-employment...
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CHAPTER FIVE
NATURE AND GROWTH OF SELF-EMPLOYMENT
AMONG WOMEN COMMUNITY
INTRODUCTION
The present world population is 7.1 billion, which is growing at the rate of
97 million people per year and is expected to touch 8.5 billion by the year 2025.
About 95 per cent of the population growth will be in the developing countries.
The Asian population is 3.55 billion, which may reach 4.54 billion by 2025 and
women constitute around half-of the total world population (Singh et al, 2007)1. As
shown by the world economic profile of women, women represent 50 per cent of
the world population, make up 30 per cent of the official labour force, perform 60
per cent of all working hours, receive 10 per cent of world income and own even
less than one per cent of the world's property ( Sudhir et. al, 2007)2.
Around 50 per cent of India's population is composed of women, yet
business spheres such as trade, commerce and industry are still considered a male
prerogative. Entrepreneurial work has also been predominantly a man's world in
India and women are expected to take up domestic roles or go for ‘secured’ wage-
employment. Among the states, Gujarat, Maharashtra and Karnataka have the
highest number of women entrepreneurs with self-employed ventures.
Indian women are in no way inferior to men in all walks of life and they
can be good entrepreneurs as men in the country. Therefore, it is essential to
exploit the potential of Indian women. Women's participation in trade, industry
and commerce, requiring entrepreneurship is still poor which is mainly because of
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the problems associated with their gender roles. Therefore, promotion of
entrepreneurship and economic empowerment of women poses a challenge to the
government, funding agencies and non-government organizations. It is important
for these authorities to understand the limitations faced by the women in order to
plan supporting systems to enhance the development of women entrepreneurship in
India.
Srivastava (2008)3
stated that generally there are three sets of steps that the
women entrepreneurs in India have crossed through self-employment:
Earlier there were 3 Ks
1. Kitchen
2. Kids
3. Knitting
Then came 3 Ps
1. Powder
2. Pappad
3. Pickles
At present there are 4 Es
1. Electricity
2. Electronics
3. Energy
4. Engineering
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Exhibit 5.1: Steps in Emergence of Self-Employed Women in India
The composition of self-employed women in the entire state of Assam has
certain variations in rural and urban areas. Before proceeding to the nature of self-
employed women in Barpeta district, the composition of employment in Assam
needs an overview.
COMPOSITION OF EMPLOYMENT IN ASSAM
An assessment of the socio-economic scenario of the state of Assam and
employment situation in terms of time disposition is very useful to understand the
composition of the labour market. As per the results of the National Sample Survey
Organisation conducted in 2004 – 2005, in Assam the composition of household
types, classified according to their major economic activity, is as follows:
3Ks
Kitchen, Kids, Knitting
3Ps
Powder, Pappad, Pickles
4Es
Electricity, Electronics, Energy,
Engineering
Fig 5.1: Per Thousand Distribution of Employment Type in Rural Sector
Fig 5.2: Per Thousand Distribution of Employment Type in Urban Sector
Source: NSSO, 2004-05
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Fig 5.1: Per Thousand Distribution of Employment Type in Rural Sector
Source: NSSO, 2004-05
Fig 5.2: Per Thousand Distribution of Employment Type in Urban Sector
Fig 5.1: Per Thousand Distribution of Employment Type in Rural Sector
Fig 5.2: Per Thousand Distribution of Employment Type in Urban Sector
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From the above two figures, ie., Fig 5.1 and Fig 5.2, it can be observed that
in rural area of Assam, the per thousand self-employed population is quite higher
than that in India but in urban area of Assam the per thousand self-employed
persons is less than all that at all India level. In rural Assam, about 66% of
household are self employed, majority of the self employed are in agriculture
(48%). Whereas in urban sector about 44% are regular wage/salary earner and
about 36% are self employed. Casual labourers both in rural and urban sector are
comparatively less. Land holding structure indicates that 61% are having small and
marginal holdings and only about 6% are landless households.
It may be also be pointed out that the composition of employed person in
Assam is heavily tilted towards unorganised sector employment. Out of the total
employment of 10,493,692 about 89% of employment comes from the unorganised
sector. The share of organised sector is restricted to only 11%.
MARITAL STATUS OF SELF-EMPLOYED WOMEN IN BARPETA
DISTRICT
Marriage is one of the most important elements in a person’s life. Often it is
believed that marriage brings a slowdown and sometimes an end to the career of a
woman. In the current study, an attempt has been made to determine the marital
status of self-employed women. Also, the sample self-employed women have been
classified into four age groups in order to determine the productive age of such
women in the district. The following observations have been made in this regard.
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Table 5.1: Age and Marital Status of Self Employed Women (in percentage)
Age (Year) Marital Status Total
Married Unmarried
Less than 30
31 – 40
41 – 50
Above 50
9.5
20.0
20.0
9.0
19.0
13.5
7.5
1.5
28.5
33.5
27.5
10.5
Total 58.5 41.5 100.0
Source: Field Survey
During the research work, it was noticed that in the total self-employed
women population of Barpeta, 58.5% were married whereas 41.5% were
unmarried. 33.5% of such women were in the age group of 31-40. The observation
during the study shows that though majority of the self-employed women were
married, they did not consider marriage to be an impediment in their self-
employment voyage. Further, approximately one-third of the women (33.5%),
married and unmarried combined, is below forty years which means these are
young women who have the potential for high productivity if their efforts are
properly tapped.
EMPLOYMENT AMONG THE WOMEN COMMUNITY:
The liberalization process of the Indian economy has penetrated deep into
the lives of people including women. Women, who comprise one half of the total
population, were earlier confined to household chores and family affairs. All their
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potentialities, skills, abilities and aptitudes were confined to the four walls of the
house.
With the opening up of the Indian economy, the exposure to the culture and
practices of the modern world, influence of information explosion, increased
consumerism due to advanced techniques of salesmanship and state intervention in
the form of incentives for the promotion of individual owned ventures, and similar
other factors have had a profound influence on the Indian women particularly those
belonging to the middle-class and lower middle-class.
The effect of social and economic transition can be seen in the population
characteristics of Assam also. The women population of Assam has always been
progressive, dynamic and pragmatic in approach than many other states in India.
The following table will give us a comparative picture of male and female
workers and non-workers in Assam as well as in the district of Barpeta.
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Table 5.2 :Distribution of Population by Workers and Non-Workers
State/
District
Area Population Total Workers Non-workers
Persons Male Female Persons Male Female Persons Male Female
Assam
Barpeta
Total
Rural
Urban
Total
Rural
Urban
26,655,528
23,216,288
3,439,240
1,647,201
1,520,333
126,868
13,777,037
11,939,945
1,837,092
8,48,578
782,414
66,164
12,878,491
11,276,343
1,602,148
7,98,623
737,623
60,704
9,538,591
8,396,769
1,141,822
517,088
477,224
39,864
6,870,960
5,899,204
971,756
404,737
370,587
34,150
2,667,631
2,497,565
170,066
112,351
106,637
5,714
17,116,937
14,819,519
2,297,418
1,130,113
1,043,109
87,004
6,906,077
6,040,741
865,336
443,841
411,827
32,014
10,210,860
8,778,778
1,432,082
686,272
631,282
54,990
Source : Census of India, 2001.
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NATURE/FORMS OF ORGANISATION OF SELF-EMPLOYED WOMEN
The form of business organization should be so strong that it can continue for
a long time and small obstructions should not extinguish it. In the world of
business, the various forms of business organizations are sole proprietorship,
partnership, Joint Hindu Family business, cooperative society and Joint Stock
Company.
Exhibit 5.2: Different Formats of Business Organisation
A sole proprietorship organization is run by a single person. A partnership
organization is run by minimum two persons and maximum ten persons in case of
banking industry and twenty in case of any other business. A Joint Hindu Family
business is owned and carried on by the members of Hindu Undivided Family
(HUF). A cooperative society is formed with minimum ten persons to protect and
promote economic and social interests of the members. A joint stock company is
an association of persons formed for carrying out businesss activities suitable in a
large scale and has a separate legal identity independent of its members.
During the study, it has been observed that Joint Hindu Family business is
not a very popular phenomenon in the district of Barpeta. Moreover, it is basically
a male oriented concept. So, it has been attempted to determine which of the
FORMS OF BUSINESS ORGANISATION
Sole Proprietorship Partnership Joint Hindu
Family Business
Cooperative
Society
Joint Stock
Company
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remaining four forms of business organizations, along with SHGs, are adopted by
self-employed women for their entrepreneurial ventures in the district. The
information obtained is shown hereunder.
Table 5.3 : Form/Nature of Organisation of Self-Employed Women in Barpeta
District
Form Of Organisation Percentage of
Women (%)
Sole Proprietorship
Partnership :
With Family Members
Without Family Members
Self Help Groups
Co-operative Societies
Joint Stock Companies
13.5
16.0
14.5
37.0
19.0
Nil
Total 100.0%
Source : Field Survey
Out of the sample respondents interviewed during the field survey, 37%
comprised of women who had initiated their own works by formation of Self Help
Groups. 30.5% of women were in partnership business out of which 16% had
family members as partners whereas 14.5% had non-family members as partners.
19% of women were associated with co-operative societies. Only 13.5% women in
the district were associated with sole-proprietorship ventures.
During the period of field study, it has also been found that there were no
joint stock companies run by women in Barpeta District. All self-employed women
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under the above forms of organization were associated with micro, small and
medium enterprises. In the study, not even a single self-employed women was
found in the large scale sector.
ADMINISTRATIVE STRUCTURE OF SELF-EMPLOYMENT VENTURES
OF WOMEN
The nature of administration and management style of ventures run by self-
employed women vary with the type of organization and the area of activity. The
administrative structure of ventures run by self-employed women in Barpeta
district has been shown below:
Table 5.4: Administrative Structure of Self-Employed Ventures of Women
Administration of Ventures Percentage of
respondents (%)
Owner or owners only 11
Honorary services of family members 12
Paid services of family members 14
Honorary services of friends and neighbours 04
Paid services of friends and neighbours 12
Casual employees 22
Permanent employees 09
Both casual and permanent employees 16
TOTAL 100
Source: Field Survey
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As it can be observed in the above table, 11% of the self-employed women
ran their ventures all by themselves without taking the paid or honorary services of
anybody. 26% women respondents revealed that they used the services of their
family members in different activities of which 12% used honorary services and
14% used paid services. Many self-employed women used the services of friends
and neighbours also in their economic pursuits. As noticed during the field survey,
12% women availed the paid services of friends and neighbours whereas only 4%
availed honorary services from friends and neighbours. Besides, women
entrepreneurs hired employees on casual or permanent basis depending on the
nature and volume of work. Only 9% women engaged permanent employees, 22%
women hired casual employees as and when required and 16% self-employed
women took the services of both permanent and casual employees. Thus, it can be
observed that entrepreneurship among women can be an important medium of
employment generation. In the district of Barpeta, it has been observed that though
both males and females got employment through self-employed ventures run by
women yet most of the women entrepreneurs were more tilted towards fellow
females while availing services from others for administration of their enterprises.
MOTIVATIONAL FACTORS FOR SELF-EMPLOYMENT
Many studies indicate that women start businesses for fundamentally
different reasons than their male counterparts. While men start businesses
primarily for growth opportunities and profit potential, women most often start
businesses in order to meet personal goals, such as gaining feelings of achievement
and accomplishment. In many instances, women consider financial success as an
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external confirmation of their ability rather than as a primary goal or motivation to
start a business, although millions of women entrepreneurs will agree that financial
profitability is important in its own right.
As stated by Jahanshahi, et al.(2010)4, women also tend to start businesses
about ten years later than men, on average. Motherhood, lack of management
experience, and traditional socialization has all been cited as reasons for delayed
entry into entrepreneurial careers. In fact, over 30 percent of women entrepreneurs
reported that they started a business due to some traumatic event, such as divorce,
discrimination due to pregnancy or the corporate glass ceiling, the health of a
family member, or economic reasons such as a layoff. But a new talent pool of
women entrepreneurs is forming today, as more women opt to leave corporate
sector jobs to chart their own destinies. Many of these women have developed
financial expertise and bring experience in manufacturing or non-traditional fields.
As a result, the concentration of women business owners in the retail and service
sectors—and in traditional industries such as cosmetics, food, fashion, and
personal care—is slowly changing.
Winn (1994)5 in a study on assessing the entrepreneurial environment conditions
for female entrepreneurship revealed that acceptance of women as entrepreneurs,
availability of education, training and economic climate were the three main
factors which contributed to the success of female entrepreneurs.
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Ovidiu (1994)6 conducted a study on major features of some successful
entrepreneurs and revealed that personal savings, family money and bank loan
were the main source of finance for the entrepreneurs to start their self-
employment ventures. And the study also revealed that entrepreneurial experience
and implementing new ideas were the main factors which contributed for the
success of an entrepreneur.
Nandagopal and Chinnaiyan (2004)7 conducted a study on entrepreneur’s
perception about success factors and reported that hard work was reflected as the
key factor for the success with mean score of 4.76 followed by support of family
members (4.58) and self confidence (4.54) and the study also revealed that
important facilitative factors for starting the enterprise as perceived by the
entrepreneurs were high demand for the product with the mean scores of 4.64,
followed by local advantage (4.14) and family source of finance (4.06).
The self-employed people of Barpeta District were asked to cite the major
motivational factors in order of their importance which encouraged them to
undertake the path of self-reliance through their own ventures instead of wage
employment or remaining absolutely dormant professionally. The following table
shows the important motivational factors leading to women self-employment in
Barpeta District.
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Table 5.5: Motivational Factors and Their Respective Ranks for Present
Trend of Self Employment in Barpeta
Motivating Factor
Percentage of women
who opted for first
preference
Rank
Desire to achieve something 10.0 IV
Need for independence 23.5 II
Desire to get gainfully occupied 31.0 I
To get social Prestige 02.5 VIII
To obtain decision-making power 05.5 VII
Success of others 07.5 VI
Finance Facility 08.0 V
EDP/EAC 01.0 IX
Desire for leadership 00.5 X
Any other 10.5 III
Source: Field Survey.
Note: Any other factor includes unemployment problem, experience in the same
line, interest in becoming self-employed, dissatisfaction with previous job,
providing employment to a few people, encouragement by family or friends, local
availability of raw materials etc.
The highest number of self-employed women (31%) in the district of
Barpeta were motivated by the factor to get gainfully occupied to enter into the
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area of self-employment. Gainful occupation means such engagement which has
the potential to give monetary benefits for the efforts put in. The second important
motivator was to obtain independence in their day to day activities and not being
subject to mere orders of others. Interestingly, though many self-employed women
felt that entrepreneurship had enhanced their status, reputation and goodwill in the
society, yet initially it was not a significant motivator to enter into self-
employment ventures.
CLASSIFICATION OF VARIOUS SECTORS OF SELF EMPLOYMENT
IN BARPETA DISTRICT
The four broad forms of organization of self-employed women in Barpeta
District viz. Sole proprietorship, Partnership, Self Help Groups (SHGs) and Co-
operative Societies have their respective entry into certain areas/sectors of self-
employment ventures. The major areas of self-employment, which have been
observed in Barpeta district among women, in each of these four forms of
organization have been presented by means of the following four pie-diagrams.
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Fig 5.3: Self-Employment Areas in Sole-Proprietorship
Source: Field Survey
Note: Others include training institutes, sericulture, food processing, doll making,
tailoring etc.
In sole-proprietorship nature of business, 26% of women were found in
beauty care segment by opening parlours and saloons. The district is primarily an
agro-based district but agriculture occupied the second position (15%) in case of
women who run their self-employed ventures on their own. 13% self-employed
women were involved in trading of goods like clothes, food products, stationeries
etc.
13%
15%
21%
3%
9%4%
7%
26%
2%Trading
Agriculture
Weaving
Duckery/Poultry Farming
Handicraft
Goatery
Dairy Farming
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Fig 5.4: Self-Employment Areas in Partnership
Source : Field Survey
Note : Others include beauty parlours, mat making, cane and bamboo products
manufacturing, animal husbandry, PCOs, Photostat business etc.
In case of partnership nature of self-employment, it was observed that 23%
of women were in trading followed by 21% in tailoring/cutting/embroidery. Only
7% women were in agriculture as partners. However, in trading, it had been
observed that women traded basically in agriculture, handloom and handicraft
products produced by others.
7%
11%
17%
18%
21%
23%
3% Agriculture
Food Processing
Poultry Farming
Weaving
Tailoring/Cutting/Embroidery
Trading
Others
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Fig 5.5: Self Employment Areas in SHGs
Source : Field Survey
Note: Others include mushroom cultivation, incense sticks making, mat making,
brass metal item production, soap making, chira-muri making etc.
On the initiation of the Ministry of Rural Development under the Swarna
Jayanti Gram Swarojzar Yojana, the concept of Self Help Groups (SHGs) was
launched to provide self employment and economic empowerment to the rural
poor.
In the district of Barpeta, SHGs have mostly women members. In the study,
18% of the women involved in SHGs were found to be associated with weaving.
Assamese and Bodo community women formed the majority of women in weaving
2%3%
5%6%
7%
8%
9%
12%13%
16%
18%1%
Horticulture
Food Processing
Handicraft
Tailoring/Cutting/EmbroideryCane & Bamboo Industry
Fisheries
Poultry Farming/Duckery
Goatery/Piggery
Dairy Farming
Agriculture
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sector. 16% of women were in agriculture. In the Muslim dominated areas, women
were mainly engaged in animal husbandry, duckeries, poultry farms and fisheries.
Fig 5.6: Self Employment Areas in Co-operative Societies
Source: Field Survey
The highest 29% of women are in agriculture in case of co-operative
societies run by self-employed women. It is worth mentioning that 11% of women
are engaged in pisciculture (fisheries) through co-operative societies. Weaving is a
prominent sector in the district and 18% of women self-employment is in this area.
PROBLEMS FACED BY WOMEN ENTREPRENEURS
Women entrepreneurs face a series of problems right from the beginning
till the enterprise continues to function. Being a woman itself poses various
problems to a woman entrepreneur. The problems of Indian women pertain to her
responsibility towards own family, society and in laws’ work.
5%6%
7%
8%
11%
13%18%
29%
3%
Cane & Bamboo Industry
Food Processing
Poultry Farming/Duckery
Cutting/Embroidery/TailoringFisheries
Animal Husbandry
Weaving
Agriculture
Others
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The traditions, customs, socio cultural values, ethics, motherhood,
subordination to husband and men, physical weakness, hard work areas, feeling of
insecurity, cannot be tough, etc. are some peculiar problems that the Indian women
often come 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.
Baruah (2010)8 discussed in his research work on tribal women in Udalguri
district of Assam that an overview of the constraints encountered by respondents
while initiating or running their enterprises highlighted that women experienced all
sorts of problems related to financial, technical, labour, marketing and of general
nature. However, limited working capital under financial problems, non-
availability of skilled and experienced personnel under labour problems, stiff
competition under marketing problems were found to be the most pressing ones
among others.
Different studies undertaken in India as well as in Assam indicate that there
are several problems peculiarly faced by self-employed women. The main
problems faced by the women and which affect the growth of self-employment
among women, as observed in other research works and also during the survey,
are as follows:
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1. Social attitudes:
One of the biggest problems faced by a women entrepreneur is the social
attitude in which she has to live and work. The traditions and customs prevailing in
Indian societies towards women sometimes stand as obstacles 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 eyes. Even though our Constitution speaks of equality
between sexes, male chauvinism is still the order of the day. Women are often not
treated equal to men in many societies. Their entry to business requires the
approval of the head of the family. Entrepreneurship has traditionally been seen as
a male domain. All these put a break in the growth of women self-employment.
2. Tough competition:
Usually self-employed women 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 counterparts
who have vast experience and capacity to adopt advanced technology in managing
enterprises.
3. High cost of production:
The high cost of production is another problem which undermines the
efficiency and restricts development of women entrepreneurs. Several factors
including inefficient management contribute to the high cost of production which
stands as a stumbling block before women entrepreneurs. Women entrepreneurs
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face technology obsolescence due to non-adoption or slow adoption to changing
technology which is a major factor of high cost of production. Although great
advances are being made in technology, many women's illiteracy, structural
difficulties, and lack of access to technical training prevent the technology from
being beneficial or even available to females (Women entrepreneurs, 2001)9.
High production cost of some business operations adversely affects the
development of women entrepreneurs. The installation of new machineries during
expansion of the productive capacity and like similar factors dissuades the women
entrepreneurs from venturing into new areas. (Vikas, 2007)10
.
4. Limited mobility:
Women mobility in India is highly limited and has become a problem due
to traditional values and also often due to the 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.
5. Exploitation by middle men:
Since women cannot run around for marketing, distribution and money
collection, they have to depend on middle men for these activities. Middle men
tend to exploit them in the guise of helping. They add their own profit margin
exorbitantly which results in less sales and lesser profit.
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6. Lack of self confidence:
Women entrepreneurs, because of their inherent nature, lack in 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. Achievement
motivation of the women folk found less compared to male members. The low
level of education and confidence leads to low level achievement and advancement
motivation among Indian women folk to engage in business operations and running
a business concern.
7. Shortage of Finance:
Self-employed women generally suffer from inadequate financial recourses
and working capital. They are not able to afford external finance due to absence of
tangible security and credit in the market.
Women have a very less property and bank balance to their names. Male
members of the family do not want to invest their capital in the business run by
women as they lack confidence in the ability of women to run their ventures
successfully.
The complicated procedure of bank loans also creates lot of problems in
getting the required finance. Women entrepreneurs even face problems in getting
requisite working capital financing for day-to-day business activities. According to
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a report of the United Nations Industrial Development Organization (UNIDO),
“despite the evidence that women’s loan repayment rates are higher than men's,
women still face more difficulties in obtaining credit,” often due to discriminatory
attitudes of banks and informal lending groups. (United Nations, 2002)11
.
Women entrepreneurs have to depend upon their personal savings and
loans from family friends. Most of the women entrepreneurs fail due to lack of
proper financing facilities, because finance is life blood of every business
activities.
8. Marketing problems:
Women entrepreneurs often depend upon intermediaries for marketing their
products who pocket large chunk of profit. Such middlemen tend to exploit the
women entrepreneurs.
Women entrepreneurs also find it difficult to capture the market and make
their products popular. A lot of money is needed for advertisement in these days of
stiff competition from male entrepreneurs.
Women entrepreneurs also lack energy and extra efforts needed for
investing and to win the confidence of customers and popularize the products.
9. Shortage of raw materials:
The shortage of required raw materials is also one of the big problems
faced by women in self-employment. Women entrepreneurs find it difficult to
procure the required raw materials and other necessary inputs for production in
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sufficient quantity and quality. The prices of raw materials are quite high and
generally fluctuate.
The scarcity of raw materials and sometimes non- 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.
10. 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. Women entrepreneurs have to face severe competition from
organized industries and male entrepreneurs having vast experience.
Therefore, less and limited managerial ability of women has become a
problem for them to run the enterprise successfully. Self-employed women may
not be an expert in each and every function of the enterprise. She may not be able
to devote sufficient expertise for all types of activities. Basically women have
limited managerial ability and they often lack professionalism in management of
their enterprises. They are prone to be subjective and on many occasion their
business decisions are taken emotionally and not out of managerial
professionalism.
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11. Lack of entrepreneurial aptitude:
One of the biggest problems of women is the 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 entrepreneurship, self-employed women fail to
tide over the risks and troubles that may come up in an organisational working.
The basic characteristics of an entrepreneur such as innovation, risk bearing etc.
are absent in self-employed women.
12. Low risk taking ability:
Self-employed women suffer from the problem of low risk taking ability as
compared to their male counterparts, because they have usually led a protected life.
Women in India are by nature weak, shy and mild. They cannot bear the
amount risk which is essential for running an enterprise. They even face
discrimination in the selection for training and skill development in
entrepreneurship. Inferiority complex, unplanned growth, lack of infrastructure,
hesitation in taking quick decision and absence of financial support or surety also
increases the rate of risk and chances of loss.
13. Family responsibilities:
Having primary responsibility for children, home and older dependent
family members, few women can devote all their time and energies to their
business (Starcher,1996)12
.Women in India are emotionally attached to their
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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 burdened with family
responsibilities like extra attention to husband, children and in laws which take
away a lot of their time and energy. In such a situation, it becomes very difficult to
concentrate and run the enterprise successfully.
A married woman entrepreneur has to make a perfect balance between
domestic activities and business activities. The woman entrepreneur cannot
succeed without the support and approval of husband. Her success in this regard
also depends upon supporting husband and family. Thus, occupational back
grounds of families and education level of husbands have a great influence on the
growth of women entrepreneurship.
14. Lack of Education:
The education level among women in India is very low. Majority of women
are not aware about the technological developments, marketing knowledge, etc.
due to lack of proper education. Illiteracy further creates problems in setting up
and smooth running of enterprises. 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 counterparts partly due to early marriage, partly due to preference
of 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 may encourage them to flourish.
108
15. Legal Formalities:
Women entrepreneurs find it extremely difficult in complying with various
legal formalities in obtaining licenses, permissions, etc. Fulfilling the legal
formalities required for running an enterprise becomes an uphill task on the part of
a 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.
In the perspective of the above discussion, the observations made in the
district of Barpeta regarding the problems faced by self-employed women have
been shown in the following table.
Table 5.6: Problems Faced by Women in Self-Employment in Barpeta District
and their Respective Ranks
Nature of Problems
Percentage of Women
who Opted as the
Biggest Problem
Rank
Lack of self-confidence 2.0 IX
Lack of awareness of Govt. programmes 19.0 I
Lack of power 04.5 VIII
Scarcity/irregular supply of raw materials 01.5 X
Transportation problems 12.0 V
Marketing problems 16.5 II
Poor coordination with institutions and
departments
14.5 III
Lack of state of the art technology and skills 07.0 VII
Stiff competition in the market 10.0 VI
Limited mobility 13.0 IV
Source: Field Survey
109
Rank correlation between motivational factors and problematic factors
concerning self employed women has been shown below:-
Motivational
factors
R1(in
terms of
Rank )
Problematic
factors
R2(in
terms of
Rank )
D
(R1-R2)
D2
Desire to achieve
something
4 Lack of self
confidence
9 -5 25
Need for
independence
2 Lack of awareness
of Govt.
programmes
1 1 1
Desire to get gain
fully occupied
1 Lack of power 8 -7 49
To get social
prestige
8 Scarcity /irregular
supply of raw
materials
10 -2 4
To obtain decision
making power
7 Transportation
problems
5 2 4
Success of others 6 Marketing problems 2 4 16
Finance facilities 5 Poor coordination
with institutions
and departments
3 2 4
EDP/EAC 9 Lack of state of the
art technology and
skill
7 2 4
Desire for
Leadership
10 Stiff competition in
the market
6 4 16
Any other 3 Limited mobility 4 -1 1
ΣD2=124
Rank Correlation(R) =1- =
6 ΣD
2
N3-N
0.248
110
During the course of the study, women had categorically admitted that they
faced several problems. The motivational factors are very little correlated with the
problematic factors. Although certain factors motivate women, at the same time
they are deterred by the problem factors. When the nature of problems are
analysed, it becomes clear that 19% of women thought ignorance or lack of
awareness about various schemes and policies of the central as well as State
Governments is the major problem. Due to this factor, they were often not aware of
the financial facilities and subsidies given by the Government through different
schemes. Only 1.5% women opined that scarcity/irregular supply of raw materials
was the major problem. This revealed that though the women had the required
self-confidence (2% rated lack of it as major problem) yet problems in movement,
technology, skills, transportation and competition posed as hindrances in their
efforts. If these problems can be removed, they could utilize the resources which
are available locally for their better economic well-being.
CONCLUSION
Women have a unique position in the society. Real development cannot
take place if it is bypasses women, who not only represent one half of the country's
population but also the kernels around which societal revolution take place.
Entrepreneurial work has been predominantly a man’s world in India. But this
attitude needs to change with more women in self-employed ventures. It is high
time that business spheres such as trade, commerce and industry open their doors
to women. During the present study, it has been observed that in the district of
Barpeta majority of the self-employed women are in agriculture through self help
111
groups. Gainful engagement is the primary motivator for the self-employed women
in the district but they face several problems too in their pursuits. Entrepreneurship
enhances financial independence and self-esteem of women. Indian women are in
no way inferior to men in all walks of life and they can be good entrepreneurs as
men in the country. Therefore, it is essential to exploit the potential of Indian
women. Women's participation in trade, industry and commerce, requiring
entrepreneurship is still poor, mainly because of the problems associated with their
gender roles. Therefore, promotion of self-employment and economic
empowerment of women poses a challenge to the government, funding agencies
and non-government organizations. It is important for these institutions,
authorities and agencies to understand the limitations faced by the women and to
plan supporting systems to motivate women and enhance women entrepreneurship
in India.
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