CONCEPT OF WOMEN ENTREPRENEURSHIP

Based on the general concept of entrepreneurship women entrepreneurs may be defined as a woman or
group of women who initiate, organize and run a business enterprise. In terms of Schumpeterian concept
of innovative entrepreneurs, women who innovate, imitate or adopt a business activity are called women
entrepreneurs. The government of India has defined women entrepreneurs based on women participation
in equity and employment of a business enterprise. Accordingly, a women entrepreneur is defined as an
enterprise owned and controlled by a women having a minimum financial interest of 51 percent of the
capital and giving at least 51 percent of the employment generated in the enterprise to women. However,
this definition is subject to criticism mainly on the condition of employing more than 50 percent women
workers in the enterprises owned and run by the women.
In nutshell, women entrepreneurs are those women who think of a business enterprise, initiate it, organize
and combine the factors of production, operate the enterprise and undertake risks and handle economic
uncertainty involved in running a business enterprise.
GROWTH OF WOMEN ENTREPRENEURS
Women entrepreneurs in India accounted for 9.01% of the total value 11.70 million entrepreneurs during
1988-89.
A cross country comparison reveals that emergence and development of entrepreneurship is largely
caused by the availability of supporting conditions in a country. To quote, with improving supporting
conditions, the share of women owned enterprises in the United States has risen from 7.1% in 1977 to
32% in 1990. It is likely to reach to 50% by the turn of the 20th century.
In India, women entry into business is a new phenomenon. Women entry into business, or say,
entrepreneurship is traced out as an extension of their kitchen activities mainly to 3 Ps viz, pickles,
powder and pappad. Women in India plugged into business for both pull and push factors. Pull factors
imply the factors, which encourage women to start an occupation or venture with an urge to do something
independently. Push factors refer to those factors, which compel to take up their own business to tide over
their economic difficulties and responsibilities.
With growing awareness about business and spread of education among women over the period, women
have started shifting from 3 Ps to engross to 3 modern Es, viz. Engineering, Electronics and Energy.
They have excelled in these activities. Women entrepreneurs manufacturing solar cookers in Gujarat,
small foundries in Maharashtra and T.V. capacitors in Orissa have proved beyond doubt that given the
opportunities, they can excel their male counterparts. Smt. Sumati Morarji (Shipping Corporation), Smt.
Yumutai Kirloskar (Mahila Udyog Limited), Smt. Neena Malhotra (Exports) and Smt. Shahnaz Hussain
(Beauty Clinic) are some exemplary names of successful and accomplished women entrepreneurs in our
country.
In India, Kerela is a state with highest literacy (including women literacy) reflecting a congenial
atmosphere for the emergence and development of women entrepreneurship in the state. According to a
study, the number of womens industrial units in Kerela was 358 in 1981, which rose to 782 in March
1984. These 782 units included 592 proprietary concerns, 43 partnership firms, 42 charitable institutions,
3 joint stock companies and 102 co- operative societies covering a wide range of activities. On the whole,
proper education of women in Kerela resulted in high motivation among them to enter into business. The
financial, marketing and training assistance provided by the state government also helped motivate
women to assume entrepreneurial career. Womens desire to work at the place of residence, difficulty of
getting jobs in the public and private sectors and the desire for social recognition also motivated women
in Kerela for self- employment. Like Kerela, an increasing number of women are entering the business in
the state of Maharashtra also.

PROBLEMS OF WOMEN ENTREPRENEURSHIP

Women entrepreneurs encounter two sets of problems, viz, general problems of entrepreneurs and
problems specific to women entrepreneurs. These are discussed as follows:
1. Problem of finance: Finance is regarded as life blood for any enterprise, be it big or small.
However, women entrepreneurs suffer from shortage of finance on two counts. Firstly, women do not
generally have property on their names to use them as collateral for obtaining funds from external
sources. Thus, their access to the external sources of funds is limited. Secondly, the banks also consider
women less credit- worthy and discourage women borrowers on the belief that they can at any time leave
their business. Given such situation, women entrepreneurs are bound to rely on their own savings, if any
and loans from friends and relatives who are expectedly meager and negligible. Thus, women enterprises
fail due to the shortage of finance.
2. Scarcity of raw material: Most of the women enterprises are plagued by the scarcity of raw material
and necessary inputs. Added to this are the high prices of raw material, on the other. The failure of nay
women co- operatives in 1971 engaged in basket making is an example how the scarcity of raw material
sounds the dealth- knell of enterprises run by women.
3. Stiff Competition: Women entrepreneurs do not have organization set- up to pump in a lot of money
for canvassing and advertisement. Thus, they have to face a stiff competition for marketing their products
with both organized sector and their male counterparts. Such a competition ultimately results in the
liquidation of women enterprises.
4. Limited Mobility: Unlike men, women mobility in India is highly limited due to various reasons. A
single woman asking for room is still upon suspicion. Cumbersome exercise involved in starting an
enterprise coupled with the officials humiliating attitude towards women compels them to give up an idea
of starting an enterprise.
5. Family Ties: In India, it is mainly a womans duty to look after the children and other members of the
family. Man plays a secondary role only. In case of married woman, she has to strike a fine balance
between her business and family. Her total involvement in family leaves little or no energy and time to
devote for business. Support and approval of husbands seem necessary condition or womens entry in to
business. Accordingly, the educational level and family background of husbands positively influence
womens entry into business activities.
6. Lack of Education: In India, around three- fifths (60%) of women are still illiterate illiteracy is the
root cause of socio- economic problems. Due to the lack of education and that too qualitative education,
women are not aware of business, technology and market knowledge. Also, lack of education cases low
achievement motivation among women. Thus, lack of education creates problems for women in the
setting up and running of business enterprises.
7. Male dominated Society: Male chauvinism is till the order of the day in India. The constitution of
India speaks of equality between sexes. But, in practice women are looked upon as able i.e. Weak in all
respects. Women suffer from male reservations about a womens role, ability and capacity and are treated
accordingly. In nutshell, in the male-dominated Indian society, women are not treated equal to men. This
in turn, serves as a barrier to women entry into business.
8. Low Risk- Bearing Ability: Women in India lead a protected life. They are less educated and
economically not self- dependent. All these reduce their ability to bear risk involved in running an
enterprise. Risk bearing is an essential requisite of a successful entrepreneur. In addition to above
problems, inadequate infra structural facilities, shortage of power, high cost of production, social attitude,

low need for achievement and socio- economic constraints also hold the women back from entering into
business.
SPECIAL SCHEME FORWOMEN ENTREPRENEURS
With a view that women entrepreneurs should come forward in industrial field and become selfsufficient, government and financial institutions have announced many schemes of providing financial
assistance.
1. Seed Capital Scheme: In order to start ones own business this scheme is undertaken by the
government. Government provides funds @ 10% to unemployed youths and women. The seed capital
provided is 10% to 15% of the total cost of the project. The percentage of seed capitalist 22.5% for
backward class candidates. The woman is treated unemployed even if their husbands are in business or
service. The qualification is they should have passed at least the standard and should be between 18- 50
years of age. The maximum capital available is 5 lacs. For a partnership firm, the contribution of
employed should be more than 75%. The seed capital granted is to be aid within the period of 7 years.
More details in regard are provided by District Industries Centre.
2. National equity Fund: National Bank or State finance Corporation implements this scheme. There is no
condition of age or education under this scheme. Loan granted for industrial or service oriented business
purpose. It is expected that the candidate should contribute minimum 105 of the cost of the project. 15%
of the project cost is granted by the bank towards capital @ 10% equity fund as loan.75% of project cost
is granted by the bank in the form of loan.
3. Finance Corporation Scheme: All the schemes announced by the finance corporation scheme are
applicable to women entrepreneurs. Prime ministers employment guarantee scheme, Central
governments scheme for educated unemployment: This scheme is sponsored by central government. The
age limit applicant is 35 years and minimum education is Std.Xth. Under this scheme 95% of loan is
granted by the bank. 15% subsidy is available. Rs. 5,000 for business purpose. Rs. 25,000 for service
industry and Rs. 35,000 for the purpose of individual loan is granted. The candidate is not expected to
contribute his share. 15% of subsidy is directly remitted to bank by central government. This scheme has
been revised from April 1999. The income limit of the partners of the women should not be more than Rs.
24,000 p.a. for availing loan under this scheme, the candidate has to make an application to District
Industries Center.
4. Women Industries Fund scheme: Under this scheme women entrepreneurs get 15% seed capital of
total cost of the project for starting a new business. The seed capital money is restricted to Rs. 4 lacs. The
cost of the project should not exceed 10 lacs. It is expected that women entrepreneurs should contribute
10% of total project cost.
Incase of partnership firms/ private limited company the contribution of women entrepreneurs should be
minimum 51% of the total project cost. For availing this facility application must be made to nationalized
banks or State Finance Corporation.
5. Single Window Scheme: To facilitate women entrepreneurs in getting term loan and working capital
from one and the same institution, the Small Industrial Development bank of India has started this
scheme. It is applicable to both, male and female entrepreneurs. This scheme is applicable to project
where total expenses are up to 20 lacs (excluding working capital and margin money). The loan is too
repaid within the period of 1 year. Entrepreneurs share in the project should be 25%. This scheme is
implemented through Finance Corporation. The corporation also provides term loan and working capital.
Bank has to take the responsibility of providing working capital.
6. Joint Loan Scheme: Under this scheme, the artisans living in rural areas, where the populations is up to
5 lacs get the loans to purchase instruments and working capital needs. Financial assistance is available

cent per up to Rs. 50,000 lacs with minimum rate of interest. Loan granted is to repaid within a period of
8 years. There is no restriction of age education qualification of the candidate.
7. District Industries Center Scheme: The main objective of this scheme is to start industries in rural areas
where the population is less than 1 lacs. The industries with investment in machinery not exceeding Rs. 2
lacs are eligible for financial assistance under this scheme. 20% of 2 lacs for general category and
30%incase of backward people are granted as seed capital from the District Industries Center. The
remaining amount of entrepreneur has to invest rest of the amount. The government sponsors this scheme.
The rate of interest on seed capital is 4%. The District Industries Center implements the scheme and the
applicant has to apply to them for financial assistance.
8. Scheme of KVIC: Many schemes are implemented by KVIC for women entrepreneurs to start their
own business (cottage industries) in rural and semi- urban areas.
9. Women Financial Corporation: For overall financial development of women, Government establishes
Women Financial Corporation.
10. Training For Women Entrepreneurs: The Indian small development bank has undertaken training
programme for women entrepreneurs with an object of getting more opportunities for starting self
employment industries/ business for women. This scheme is implemented in the state of Maharashtra at
Maharashtra District Center, Aurangabad and other centers.
11. Banks Scheme for women entrepreneurs: Bank implements various scheme for women entrepreneurs,
one of which is streeshakti in State bank of India.
12. Subsidy on Interest Scheme: The Indian Finance Corporation ahs implemented this scheme. The
subsidy is granted loans up to Rs. 10 lacs. The women entrepreneurs are encouraged to start their own
business. They are encouraged to undergo training in industrial development. The industry should be run
by the women entrepreneur with the contribution of 51% of total cost of project. The amount of subsidy
available is interest for 1 year or Rs. 20,000 granted through financial institution to women entrepreneurs.
Indian Financial Corporation reimburses this amount to the financial institutions.