ANNEXURE - III

Proposed Research Work

(i) Project Title : Role of Micro Finance in Women Empowerment
ii. Introduction
Women Entrepreneurs plays an important role in boosting the Indian economy system.
The development of the business sector may be an indicator of a predictable legal
structure and a prosperous economy. Entrepreneurship development for women is an
important factor in economic development of India. 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 want 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.
Micro finance is emerging as a powerful instrument for poverty alleviation, employment
generation and empowerment of women folk. In India Microfinance for women is mainly
group based assuming that bringing women together in groups will be more
empowering than the individual lending. Many successful women forums and
organizations are trying to bring rural women together for development of women folk
like Working Womens Forum (WWF), Self-Employed Womens Association (SEWA),
etc..
Origin of the research problem:
Women entrepreneurs explore the prospects of starting a new enterprise; undertake
risks, introduction of new innovations, coordinate administration & control of business &
providing effective leadership in all aspects of business and have proved their footage in
the male dominated business arena. Entrepreneurship amongst women is a relatively
recent phenomenon, which is gradually changing with the growing sensitivity of the
roles, responsibilities and economic status of women in the society in general and
family in particular. At the same time, it is also recognized that their challenges are
immense and complex. For women entrepreneurs, starting and operating a business
involves considerable risks and difficulties, because in the Indian social environment
women has always lived as subordinate to men. There have been noticeable changes in
the socio-psycho-cultural and economic norms of our society due to liberalized policy of
the government of India, increase in the education levels of women and increased social
awareness in respect of the role women plays in the society. It has now been recognized
that to promote self-employment and to reduce the incidence of poverty, some drastic
efforts have to be made to accelerate self- employment of women in various sectors.
Women Entrepreneurship means an act of business ownership and business
creation that empowers women economically increases their economic strength
as well as position in society.
According to Kamala Singh, A women entrepreneur is a confident, innovative
and creative woman capable of achieving economic independence individually
or in collaboration generates employment opportunities for others through
initiating establishing and running an enterprise by keeping pace with her
personal, family and social life.
In the words of Former President APJ Abdul Kalam "empowering
women is a prerequisite for creating a good nation, when women are
empowered, society with stability is assured. Empowerment of women is
essential as their thoughts and their value systems lead to the development of a
good family, good society and ultimately a good nation."
Khanka (2002) referred to women entrepreneurs as those who innovate, imitate or adopt
a business activity. Given that entrepreneurship is the set of activities performed by an
entrepreneur, it could be argued that being an entrepreneur precedes entrepreneurship. In
any case, the entrepreneurial definitions described above highlight the aspects of risk-
taking, innovating and resource organizing.
Interdisciplinary relevance:
Women Entrepreneurs plays an important role in boosting the Indian economy
system. The development of the business sector may be an indicator of a
predictable legal structure and a prosperous economy. Microfinance is an
efficient tool to fight against poverty, but also as a means of promoting the
empowerment of the most marginalized sections of the population, especially
women. Entrepreneurship is a form of human resource and entrepreneurial
behavior depends on a number of factors like skill, knowledge of the ent erprise,
risk taking ability, achievement motivation, exposure to mass media, trainings
received, and moreover, with innovativeness of the entrepreneur. Entrepreneurial
behavior can be attributed as the change in knowledge, skills and attitude of
entrepreneurs in the enterprise they have taken up. Women have been starting
businesses at a higher rate than men for the last 20 years and tend to create home-
based micro (less than 5 employees) and small businesses. Women will create
over half of the 9.72 million new small business jobs expected to be created by
2018 and more and more are doing this from home offices across the country.
Its a surprising statistic, especially considering that women-owned businesses
only created 16 percent of total U.S. jobs that existed in 2010.
There is evidence of significant potential for micro-finance to enable women to
challenge and change gender inequalities at all levels if there is a strategic gender
focus. There have also been many important recent innovations in products and
services to enable women to better benefit. Nevertheless benefits cannot be
assumed and even financially sustainable micro - finance if it is gender blind may
seriously disempowering women and increase inequality. These are (i) official
definition of microfinance, (ii) ensuring the microfinance services, (iii)
approach to subsidy, (iv) banking policies, (v) management information system
and (vi) legislation processes. Todays women are taking more and more
professional and technical degrees to cope up with market need and are
flourishing as designers, interior decorators, exporters, publishers, garment
manufacturers and still exploring new avenues of economic participation. It is
perhaps for these reasons that Government Bodies, NGOs, Social Scientists,
Researchers and International Agencies have started showing interest in the
issues related to entrepreneurship among women in India. Women Entrepreneurs
may be defined as the women or group of women who initiate, organize 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 at least 51% of
employment generated in the enterprise to women.

Review of Research and Development in the Subject:
International status
Microfinance programs target women with the explicit goal of empowering them.
Whereas, other believe that investing in womens capabilities empowers them to
make choices which is a valuable goal in itself but it also contributes to greater
economic growth and development. Microfinance is being promoted as an entry
point in the context of a wider strategy for womens economic and sociopolitical
empowerment, which focuses on gender awareness. (Kessey, 2005). Ranjula
Bali Swaina and Fan Yang Wallentin (September 2009) in their article Does
microfinance empower women? Evidence from self-help groups in India
concluded that their study strongly indicate that SHG members are empowered
by participating in microfinance program in the sense that they have a greater
propensity to resist existing gender norms and culture that restrict their ability to
develop and make choices.
Knowledge of latest technological changes, know how, and education level of the
person are significant factor that affect business. The literacy rate of women in
India is found at low level compared to male population. Many women in
developing nations lack the education needed to spur successful
entrepreneurship. They are ignorant of new technologies or unskilled in their
use, and often unable to do research and gain the necessary training
(UNIDO, 1995b, p.1). 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 in Poorest Countries," 2001). According to
The Economist, this lack of knowledge and the continuing treatment of women
as second-class citizens keep them in a pervasive cycle of poverty ("The Female
Poverty Trap," 2001). The studies indicates that uneducated women do not have
the knowledge of measurement and basic accounting.
National Status
Women have gradually been changing with the sensitivity to their role and
economic status in the society. Women are increasingly being conscious of their
existence, their rights, and work situation. However, the position of women work
participation as well as both is low in India in comparison to selected counties of
the world. Women work participation in India is 31.6 % where as in USA it is 45
%, UK 43 %, Canada 42 %, France 32 %, Indonesia 40 % Sri Lanka and Brazil
both 35 %. Table-1 refers women entrepreneurship position in the selected states
of India is 30 per cent on an average, but in Bihar it is only 15.04 per cent.
Further, in India, men generally take the lead in the entrepreneurial world. With
the change of time as well as cultural norms, and increase in literacy, women are
increasingly ready to enter the field of entrepreneurship.
Women entrepreneur is a person who accepts challenging role to meet
her personal need and become economically independent. There are
economic, social, religious, cultural and other factors existing in the
society which responsible for the emergency of the entrepreneurs.
Women entrepreneur refers equally to someone who has started a
one women business to someone who is a principal in family
business or partnership or to someone who is shareholder in a public
company which she runs.
The Government of India has defined a women entrepreneur is an
enterprise owned and controlled by a women having a minimum
financial interest of 51% of the capital and giving at least 51% of the
employment generated in the enterprise to women .
The study by Banerjee, Duflo, Glennerster and Kinnan (2009) asserted that
microfinance for women has no impact on participants average monthly
expenditure per capita, health, education, or their decision making in India. A
recent study by Shillabeer (2008) in Bangladesh argued that microfinance
created indebtedness and led to poverty traps for poor women. The study of
Sugg (2010) conducted with Bangladesh Rural Advancement Committee
(BRAC) clients showed a negative correlation between ownership of assets and
length of membership with the organization. BRAC beneficiaries reported that
they have to sell personal assets in order to repay their debts. In addition, in a
study with Grameen Bank clients in Bangladesh, Sugg (2010) showed that 57%
of female clients saw a rise in spousal verbal aggression since the start of their
loans, and a 13% rise in both verbal and physical violence.
The Indian Economic Outlook Report 2011-12 indicates a GDP growth rate of
8.2% and women entrepreneurs in India have good reason to be feeling bullish.
Womens Web Women & Entrepreneurship in India 2012 shows a significant
rise in female entrepreneurship in the country, there are a still few challenges that
they face to achieve success.
Significance of the study
The efforts of Government of India through various welfare organizations, Non-
Governmental agencies, Ministry of Commerce and Industry and hosts of other
agencies have started looking after and helping the efforts of women
entrepreneurs. Encouraged with the efforts made by different agencies, the aim of
the present study is to test the status of Women Entrepreneurs through the
microfinance. This study was carried out as the role of women entrepreneurs has
gained significance in today's environment. Most of them are capable of fully
identifying themselves in their new economic role in society. The study has
highlighted many factors that have motivated women entrepreneurs in starting an
entrepreneurial career. Success has been seen mostly among the mid thirty
and early forty age group. The government schemes, incentives and
subsidies have stimulated and provided support measures to women
entrepreneurs in India.
(iii) Objectives
The main objectives of the study are :
To provide a national networking forum for women in business that will
support them in starting and growing their businesses.
To identify problems unique to women in setting up and running their
enterprises
To suggest certain remedial measures to solve the problems of Women
Entrepreneurship in Indian Economy.
To study the policies, programmes, institutional networks and the
involvement of support agencies in promoting wo men's entrepreneurship
(iv) Methodology
For the purpose of the present study, the examples, illustrations and secondary data will
be taken from national and international basis whereas women entrepreneurs from
Gujarat State. The women entrepreneurs from rural and urban area will be studied
regarding role of micro finance in their empowerment. Organized and unorganized
women entrepreneurs will be covered under the study. Rajkot, Ahmedabad, Baroda,
Surat and Vapi will be studied for the urban women entrepreneurs whereas rural
entrepreneurs from Saurashtra will be studied for the purpose of this study.
(v) Year-wise Plan of work and targets to be achieve.
04 Months - Review of Literature
12 Months - Field Work Collection of Data
04 Months - Data Analysis
04 Months - Report Writing
(vi) Cost Estimate :
The cost of the project is to be estimated in terms of total man-months and the facilities needed.
Calculate it under the following headings :
(i) Personnel Requirement in the format given below (the approved emoluments for project staff are given at
the end) :
Position No. of Person Emoluments Duration Amount
Required
Joint Director 01 16,000/- p.a. 24 months 3,84,000.00
Research
Officer/
Research
Associate
01 13,000/- p.m. 24 months 3,12,000.00
Research
Assistant
02 10,500/- p.a. 24 months 5,04,000.00
TOTAL 12,00,000.00




(ii) Travel :
09 District * 06 days for Identification of Schools = 54 days * 1,000.00 = 54,000.00
05 Cities * 10 days for Questionnaire Filling Up = 50 days * 2,000.00 = 1,00,000.00
________________
1,54,000.00
(iii) Data Processing : 1,00,000.00
( Internet Charges etc.)
(iv) Stationery and Printing:
3000 questionnaire * 4 pages = 12000 * 4 Rs. Per page 48,000.00
Stationary and Postage
Report Typing and Printing 25,000.00
(v) Books and Journals 1,00,000.00
(vi) Contingency Expenses including Postage 50,000.00
(Expenditure not to exceed 5 per cent of the total budget):
(vii) Any Other : Equipment* 45,000.00
(viii) Overhead Charges (7.5 per cent of the Cost i.e. of the sum of items 1,29.000.00
(i) through (vii), where applicable):
Grand Total: 18,51,000.00
While preparing budget estimates for the research proposal, the Project Director should take into account
the time, funds as well as various steps involved in the conduct of the research proposal. The rationale for
the allocation of time and money for the various items of budget estimates must be furnished.
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