tie stree shakti gem study 2006

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Project GEM

An overviewNovember 2006

Study objective

To help in the advocacy programme for women entrepreneurs, TiE

needed the following:

To understand the specific systemic challenges faced by

women entrepreneurs

at various points in their evolution, especially at start up.

Support needed to scale up further.

Successful policy or systemic advocacy could make a big

difference to their business.

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The spirit of Enterprise

Three segments, possibly stages of enterprise

1. Untapped 2. Grassroots 3. Mid-rungWomen in middle class households who had thought of setting up an enterpriseTaken a few steps forward, faltered, given upMost would be interested in picking up the idea again, if helped

Women from similar households who did set up an enterpriseEarn up to 5 lakhs a year today from itAnd gain self respect and self confidenceNeed help to think of scaling up and then help for scaling up

A different profile, SEC ABenefit of education and a comfortable lifeCombination of drive, interest and opportunity Often glided into business, not struggled Would like to grow but the fire is missing

Stage 1 can grow to Stage 2 with help, but 2 to 3 might be difficult

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Segment 1 - Untapped

Random sampling of 1202 households in SECs B,C and D revealed that 31% (377 women) had tried to set up an enterprise Thought of (in varying degrees) the field in which they wanted to operate, the

finances needed, the method, the market, etc. Each one of them had had to give up the idea for lack of support – financial

and/or domestic. Of these 377 women, 297 would still be interested in setting up an enterprise’

Thus, 25% of women in the middle class have the interest and the drive to have moved towards setting up an enterprise and still want to.

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In just these 6 cities, there are 3 lakh potential women entrepreneurs waiting for support and opportunity.

These women typically have school education up to the 10th standard, but less than 20% would have been to college.

Married almost immediately afterwards, three-fourths of them had children in school or college today. Not a single woman had a school-age child who was not in school They want to ensure that their children have a real chance!

Their husbands were Skilled workers (carpenters, electricians, machine operators) (30%) Employed with some firm or the government in a clerical position (20%) Shop owners and traders (30%)

Hema Viswanathan

Rama - based on some figures that i have but i do not have access to the lastest NRS/ IRS estimates.

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These women would typically have strong aspirations Having come from homes that afforded them school education, they want better

for their children. Having earning husbands, they want to bring in something more that will ensure

their children’s future 78% of these women would be interested in taking up the idea of their own

enterprise again To help family financially To secure the future of their children

Of the help needed 83% of the requests would be for financial support 90% would be for training and guidance 67% would want help and support from the family

Or just absence of objection, or even fewer social pressures 54% would need some space from where to operate

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Their aspirations were strongly in the field of garments Tailoring, embroidery, supplying against orders from ready made garment stores.

This could be where they see the opportunity, maybe by observation of word of mouth

And believe that their skills and confidence would match up. Suggestions about cooking classes or beauty classes did not find much interest

Possibly do not believe they know enough to teach Current aspirations are in line with limited exposure and confidence

If given information about other opportunities and if given training, their horizons could widen.

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Segment 2 - Grassroots

60 women entrepreneurs from SECs B, C, D interviewed. A wide range of enterprises covered.

Tailoring/ garment boutiques Coaching classes Beauty parlours General stores Embroidery shops Catering or tiffin suppliers

Her profile is similar to the ones seen earlier Had been to school, been married early, had children who were in school

/college, lived in a nuclear family but felt the pressure of the larger family, and of having to perform her traditional role in that context.

She probably lived in a one BHK house, or in a chawl but maintained a clean house and dressed neatly. Her home management would be thrifty but based on good value for money.

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What made a difference was: Having the drive to do something more

Supported by others who expressed faith in their abilities and pushed them along – friends, family

Inspired by other women who seemed to be successful Circumstances that forced them to bring in an income

Usually an unhappy incident that left them with no choice The need for flexibility to continue domestic responsibilities and absence of

qualifications made a job a non-option Self recognition of skills and interest

Had inspired those forced by circumstances Had given others confidence to change their circumstances

Threw up oppressive jobs to strike out on their own

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Choice of business was guided by Their own interest based on known skills or training Confidence in their ‘guide’, they adopted the guide’s field of work

While most rated their business success and future prospects as ‘very good’ to ‘okay’,

There were problems Not able to find committed and dependable people Inexperience Lack of finances

All these had made it a rough or at least a bumpy ride Government policies did not impact them as such

Business records usually not formally maintained, scribbles, back of envelope calculations

Government could mainly help them by providing good infrastructure – electricity, water, absence of bribes, etc.

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Would want to expand sales, bring in more orders The drive was there, but unrelenting, multiple responsibilities made them

wary of taking on too much Yet, if they could get support

Financial Managerial – help with systems and processes Formal training in their line of work Better technology and infrastructure And family support and encouragement

They would be keen to grow their business and increase their earnings!

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Segment 3 – Mid-rung

16 women entrepreneurs who had taken bank loans Almost all were from SEC A, almost all had graduate or post graduate

degrees, were married and had school going children Their enterprises were:

Garment boutiques, export of furnishings, catering, poultry farms, plant nursery, dealers in flowers, manufacturer of labels for industry, etc.

Annual turnover in the range of half a crore to 5 crores Most employed 10 to 50 people This would be the woman who would drive her own car, ensure that her

children go to the best schools, travel abroad, eat out, have a good life.

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What made her set up an enterprise: The major factor was a drive to do something more

Supported by others who expressed faith in their abilities and pushed them along – friends, acquaintances, family

To a lesser extent, negative circumstances had played a role Husband’s accident or ill health had forced one in eight to take over their

husband’s work Other were cheated, forced into a corner, left with no choice

But a larger mention was of positive circumstances The right social circle, contacts, word of mouth, serendipity. Hearing of an opportunity, getting the support and backing from friends or

family

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Most rated their business success and future prospects as ‘excellent’ to ‘very good’.

Most sounded extremely pleased that they had their own business to run and that it was doing so well

There were problems Not able to find committed and dependable people Not getting time with the family, esp. when work involved travel

About one in four worried about financial matters But not getting or losing good people was a bigger worry

But on the whole, 60% said that the going had been mostly smooth 76% could not mention any government policy that interfered with their business

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Yet, there was no strong desire to grow The hunger seemed to be missing The current level of business was sufficient

To bring in good money Keep them busy and give them the thrill of having an enterprise to run Expansion would move them out of their comfort zone

And there was no burning need or ambition Spare time to spend at home, on leisure or with children seemed

more attractive.