Get documents about "The Women Adoption in Owned Businesses and Entrepreneurship in India
W
Description
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS) Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November – December 2012, ISSN 2278-6856, Impact Factor of IJETTCS for year 2012: 2.524
Document Sample
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com
Volume 1, Issue 4, November – December 2012 ISSN 2278-6856
The Women Adoption in Owned Businesses and
Entrepreneurship in India
Asif Perwej
Research Scholar Ph. D (Management Studies)
Department of Management & Commerce,
CMJ University, Shilong, Meghalaya, India
Women Entrepreneurs may be defined as the women or a
Abstract: The Entrepreneurship is very important criteria group of women who initiate, organize and operate a
for economic development. The role of women entrepreneurs business enterprise. Government of India has defined
cannot be ignored in this process. There is a significant women entrepreneurs as an enterprise owned and
contribution of women entrepreneurs in the growth of controlled by a woman having a minimum financial
developing nations in the real world. Even though women's interest of 51% of the capital and giving at least 51% of
contributions to the business are one of the major engines of employment generated in the enterprise to women. Like a
global economic growth, too often women do not have access
male entrepreneur a women entrepreneur has many
to basic business education, commercial credit, and
marketing opportunities .It is in everyone's interest to
functions [4]. They should explore the prospects of
improve the status of women. Studies show that societies that starting a new enterprise; undertake risks, introduction of
promote women's rights are healthier and more prosperous. new innovations, coordination administration and control
Societies that restrict women's rights are just the opposite. of business and providing effective leadership in all
Keywords: Women, Socio-Economic Constraints, aspects of business.
Entrepreneurship, Motivational Factors, Business,
Economy.
2. THE CONCEPT OF WOMEN
ENTREPREENEURSHIP IN INDIA
1. INTRODUCTION Entrepreneurship has long been recognized as the key to
The women owned businesses are highly increasing in the economic growth. The role of entrepreneurs, especially
economies of almost all countries. The hidden the small scale entrepreneurs who successfully exploit the
entrepreneurial potentials of women have gradually been industrial and commercial opportunities on a small scale
changing with the growing sensitivity to the role and can not be underestimated. Small scale enterprises help in
economic status in the society. Skill, knowledge and enhancing economic growth because they have a better
adaptability in business are the main reasons for women chance to carry out innovations, new means of
to emerge into business ventures [1]. ‘Women production, new markets, new materials, new forms of
Entrepreneur’ is a person who accepts challenging role to organizations that lead to increased productivity. In his
meet her personal needs and become economically studies relating to entrepreneurship Matlay (2006) [5]
independent. A strong desire to do something positive is posited that conceptual and contextual convergence is of
an inbuilt quality of entrepreneurial women, who is paramount importance to the ongoing debate of whether
capable of contributing values in both family and social entrepreneurs are born or made and to issues
life. With the advent of media, women are aware of their surrounding entrepreneurship education and its impact on
own traits, rights and also the work situations [2]. The entrepreneurial activities. Schutte (1995) suggested that
glass ceilings are shattered and women are found the male entrepreneurs have been extensively studied and
indulged in every line of business from puppet to power the focus has now shifted to the study of female
cables. The challenges and opportunities provided to the entrepreneurs. Hisrich and Brush (1984) [1] mentioned
women of digital era are growing rapidly that the job that most of what is known about entrepreneurs, their
seekers are turning into job creators [3]. They are background, motivation for starting a business and
flourishing as designers, interior decorators, exporters, business problems faced by them are based on studies of
publishers, garment manufacturers and still exploring male entrepreneurs. It is important to differentiate
new avenues of economic participation . In India , entrepreneurs on the basis of gender if women
although women constitute the majority of the total entrepreneurship is to be promoted (John, 2004) [3]. The
population, the entrepreneurial world is still a male following flow chart shows the reasons for women
dominated one. becoming entrepreneurs below figure 1.
Volume 1, Issue 4 November - December 2012 Page 56
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com
Volume 1, Issue 4, November – December 2012 ISSN 2278-6856
owners that might explain why female-owned businesses
appear to under perform than male-owned businesses.
The prominent factors are age of female owned business,
family commitments, lesser access to capital, different
education levels, prior experience of business and attitude
towards risk. According to Jesselyn (2004) [9] developing
countries should also tap the potential of women
entrepreneurs. Women are generally more serious
entrepreneurs in developing countries, even though their
businesses are small. They repay loans more reliably than
men, and use their earnings for the benefit of families and
for reinvestment.
Barshefsky, the U.S. Government's chief trade negotiator,
noted that the U.S. Trade Representative's work "rests on
a simple foundation: the commitment to open markets,
freer trade, and the rule of law in world commerce." She
pointed out that the day of her speech, June 16,
commemorated the 70th anniversary of the Smoot-
Hawley Act, which she described as the "largest single
restriction on trade in American history" and a major
contributor to the Great Depression of the 1930s. She
went on to say that the free trade policies of President
Figure 1: The Reason of women becoming entrepreneurs Franklin D. Roosevelt and successive administrations
Women entrepreneurship has come a long way in India. have led to:
In urban areas, more and more women are successfully
running day care centers, placement services, floriculture, Growth and Rising Living Standards - Since the
beauty parlors and fashion boutiques. Even in rural areas, 1950s, trade has expanded fifteen-fold, world
self-help groups are empowering women to start their economic production has grown six-fold, and per
own micro business. In her study Anju (1994) capita income has nearly tripled. The result,
emphasized on value orientation among women Barshefsky said, has been "historically unprecedented
entrepreneurs [6]. She argued that women entrepreneurs social progress: since the 1950s, world life
had a preference for values like achievement, expectancy has grown by 20 years, infant mortality
independence, leadership effectiveness and conformity to dropped by two-thirds, and famine receded from all
social obligations, which change the scale of success in but the most remote or misgoverned corners of the
favor of entrepreneurs. Problems, however, are plenty for world."
a female business enthusiast who wishes to start her own
unit. In general, whatever problems men might face in Economic Security - In 1997-99, with 40 percent of
setting up a small-scale unit are accentuated in the case of the world in an economic recession, the "system of
women. In certain businesses that are traditionally male mutual benefit and the rule of law represented by the
dominated, women are looked at with suspicion on their WTO helped prevent a cycle of protection and
seriousness of managing the business with a long-term retaliation like that of the 1930s and ultimately
perspective. Rinkal (2004) [7] suggested that women of averted the political strife that can erupt in economic
today are in several ways different from the women of crisis."
past years. During the present times, they seek social and
Peace and Stability - Barshefsky praised the
economic independence and are prepared to take risks for
international economic system for its role in
the same.
reintegrating Germany and Japan in the 1950s,
Mitchell (2004) [8] found that women entrepreneurs tend
nations emerging from colonial rule in the 1960s and
to be motivated by the need to provide security for their
1970s, and the nearly 30 nations that have broken
families and by their family circumstances. Women
with communist planning systems and sought
entrepreneurs are motivated by the need to be
economic integration since the end of the Cold War.
independent, economically and otherwise.
Entrepreneurship allows women to combine caring for According to the United Nations, nearly half of the
their family with bringing in the money needed for day- world's business owners are women, and they are
to-day survival. This trend has also been visible in several responsible for more than half of the economic activity in
Asian countries including Indonesia and Singapore. In developing nations. Despite this, according to the U.N.,
the opinion of Watson (2003) there are quite a number of only one-third of the work that women do in the
potential systematic differences between male and female
Volume 1, Issue 4 November - December 2012 Page 57
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com
Volume 1, Issue 4, November – December 2012 ISSN 2278-6856
developing world is measured and counted in national enough time to perform all their responsibilities in
economic reports. priority.
Mr. Heinrich Kolb, Secretary of State, Ministry of
c) Market-oriented risks – Stiff competition in the
Economy, Germany "We need to improve the
market and lack of mobility of women make the
environment for SMEs, because they are creating scope
dependence of women entrepreneurs on middleman
for more growth employment, broad space innovation,
indispensable. Many business women find it difficult to
better skills in the local and global markets. SMEs have to
capture the market and make their products popular. They
be more forward-looking. In Germany, those women who
are not fully aware of the changing market conditions and
use government incentives are doing as well as men in
hence can effectively utilize the services of media and
creating enterprises. Women bring fresh motivation.
internet.
Women will fit better into the new service society than in
the old industrial society. Our countries can no longer do d) Motivational factors – Self motivation can be realized
without the expertise, skills and experience of women through a mind set for a successful business, attitude to
entrepreneurs." take up the risk and behavior towards the business society
Ms. Ann Diamantopoulou, Secretary of State, Ministry of by shouldering the social responsibilities. Other factors
Development, Greece "Women and SMEs constitute the are family support, Government policies, financial
main weapons for helping us to build a future without assistance from public and private institutions and also
discrimination. We fight for our rights, and not for the environment suitable for women to establish business
privileges, because the business has no gender. What is a units.
natural success for men is a conquest of women.
Women’s participation in any kind of economic activity e) Knowledge in Business Administration – Women
is of a complementary nature to their family must be educated and trained constantly to acquire the
incomes; their participation in no ways reduces their skills and knowledge in all the functional areas of
family duties." business management. This can facilitate women to excel
Ms. Barbara Prammer, Federal Minister for the in the decision making process and develop a good
Condition of Women, Austria "Women provide an business network.
essential opportunity for economic and social
development and progress. They have a different vision f) Awareness about the financial assistance – Various
thanks to the delays they are currently remediation, a institutions in the financial sector extend their maximum
vision which is new and different, realistic, modern, and support in the form of incentives, loans, schemes etc.
enthusiastic. When social structures leave them no Even then every woman entrepreneur may not be aware of
possibility of evolving in their careers, and when civil all the assistance provided by the institutions. So the
society closes its doors to them, women take their own sincere efforts taken towards women entrepreneurs may
initiatives. They are quite naturally drawn to initiative, to not reach the entrepreneurs in rural and backward areas.
creation and to the management of businesses.
g) Exposed to the training programs -
Trainingprograms and workshops for every type of
3. THE WOMEN ENTREPRENEURS
entrepreneur is available through the social and welfare
CONSTRAINTS associations, based on duration, skill and the purpose of
The women in advanced nations are recognized and are the training program. Such programs are really useful to
more prominent in the business world. But the Indian new, rural and young entrepreneurs who want to set up a
women entrepreneurs [10] are facing some major small and medium scale unit on their own.
constraints like-
h) Identifying the available resources – Women are
a) Lack of confidence – In general, women lack hesitant to find out the access to cater their needs in the
confidence in their strength and competence. The family financial and marketing areas. In spite of the
members and the society are reluctant to stand beside mushrooming growth of associations, institutions, and the
their entrepreneurial growth. To a certain extent, this schemes from the government side, women are not
situation is changing among Indian women and yet to enterprising and dynamic to optimize the resources in the
face a tremendous change to increase the rate [11] of form of reserves, assets mankind or business volunteers.
growth in entrepreneurship.
Highly educated, technically sound and professionally
b) Socio-cultural barriers – Women’s family and qualified women should be encouraged for managing
personal obligations are sometimes a great barrier for their own business, rather than dependent on wage
succeeding in business careers. Only few women are able employment outlets. The unexplored talents of young
to manage both home and business efficiently, devoting women can be identified, trained and used for various
types of industries to increase the productivity in the
industrial sector [12]. A desirable environment is
Volume 1, Issue 4 November - December 2012 Page 58
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com
Volume 1, Issue 4, November – December 2012 ISSN 2278-6856
necessary for every woman to inculcate entrepreneurial century Women are an emerging economic force that
values and involve greatly in business dealings [13]. The policymakers cannot afford to ignore However
additional business opportunities that have recently been governments and institutions promoting democratic
approaching for women entrepreneurs are empowering values make a real difference in women s business
women entrepreneurs is essential for achieving the goals organizations in newly emerging market democracies
of sustainable development and the bottlenecks hindering [20] In the global economy of the 21st century
their growth must be eradicated to entitle full international trade will be a key source of economic
participation in the business [14]. Apart from training growth and development. A recent survey conducted in
programs, Newsletters, mentoring, trade fairs and several countries by the National Foundation of Women
exhibitions also can be a source for entrepreneurial Business Owners NFWBO indicates that women owned
development. As a result, the desired outcomes of the firms involved in the global marketplace. Women
business are quickly achieved and more of remunerative Entrepreneurs in the Global Economy have greater
business opportunities are found. Henceforth, promoting revenues are more optimistic about their business
entrepreneurship among women is certainly a shortcut to prospects and are more focused on business expansion
rapid economic growth and development. Let us try to obviously expanding into international trade can pay off
eliminate all forms of gender discrimination and thus for women owned firms. However it is not clear that
allow [15] women to be an entrepreneur at par with men. smaller enterprises are benefiting from these potential as
much as larger firms [21] Women s business associations
4. PUSH-PULL FACTORS AND WOMEN can and should ensure that their members are equipped to
IN BUSINESS reap the rewards of expanding into the international
The women in business are a recent phenomenon in arena. Women must learn how to play the international
India. By and large they had confided themselves to petty trade game and a global network of women s business
business and tiny cottage industries [16]. Women associations can help them do that Information
entrepreneurs engaged in business due to push and pull technology can help identify markets provide industry
factors. Which encourage women to have an independent [22] information and spotlight trends about. What's the
occupation and stands on their own legs. A sense towards role of women in national economies can be Today
independent decision-making on their life and career is women in advanced market economies own more than 25
the motivational factor behind this urge. Saddled with of all businesses and women owned businesses in Africa
household chores and domestic responsibilities women Asia [23] Eastern Europe and Latin America are growing
want [17] to get independence under the influence of rapidly. In some regions of the world transformation to a
these factors the women entrepreneurs choose a market economy threatens to sharpen gender inequality
profession as a challenge and as an urge to do something Some of these changes are simply the legacy of a gender
new. Such situation is described as pull factors. While in imbalance that existed prior [24].
push factors women engaged in business activities due to
family compulsion and the responsibility is thrust upon An economist once said that the country's total gross
them [18]. domestic product would go down if he married his
housekeeper, Rachel Kurian, the course convener, said.
She cited a 1995 Human Development Report by the
United Nations Development Program, that work outside
5. GROWING ROLE OF WOMEN of that valued by the market mostly women's work in the
ENTREPRENEURS IN INDIA home reached a value of US$9 trillion, or three [25]
fourths of the world's gross domestic product. Such
In the context of Indian economy, Women owned
estimates are based, for instance, on the cost of paying for
businesses are highly increasing in the economies of
your laundry or meals.
almost all countries The hidden entrepreneurial potentials
of women have gradually been changing with the growing
sensitivity to the role economic status in the society Skill
6. STRUCTURE OF THE ECONOMY
Knowledge adaptability in [19] business are the main AFTER GLOBALIZATION
reason for women to take up entrepreneurship They span
Due to globalization not only the GDP has increased but
generations and are there in every field From Tractors to
also the direction of growth in the sectors has also been
television from biscuits to banking from HR to hospitals
changed. Earlier the maximum part of the GDP in the
Denied entry into a male bastion they create another
economy was generated from the primary sector but now
industry like Kiran Mazumdar Shaw of Biocon According
the service industry is devoting the maximum part of the
to her hard work commitment and caring in word and
GDP. The services sector remains the growth driver of the
deed helps people overcome obstacles Women
economy with a contribution of more than 57 per cent of
Entrepreneurs in the Global Economy As technology
GDP.
speeds up lives and the new millennium is now upon us it
is useful to take time to reflect on what will surely be one
of the driving forces of the global economy of the 21st
Volume 1, Issue 4 November - December 2012 Page 59
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com
Volume 1, Issue 4, November – December 2012 ISSN 2278-6856
India is ranked 18th among the world’s leading exporters [2] Jesselyn and Mary (2004), "The Formal Institutional
of services with a share of 1.3 per cent in world exports Framework of Entrepreneurship In The Philippines:
[26]. The services sector is expected to benefit from the Lessons for Developing Countries", The Journal of
ongoing liberalization of the foreign investment regime Entrepreneurship, vol. 13 (2), pp. 185-203.
into the sector. The software and the ITES-BPO sectors [3] John J. , "Development of India: Gender Dimensions",
have recorded an exponential growth in recent years. Labour and Development, vol. 10 (1), pp. 113-125,
2004.
7. A COMPRASION WITH OTHER [4] Rinkal, Divya and Sneha. , "Women Entrepreneurs--
DEVELOPING COUNTRIES Critical Issues." , Proceedings of the 11th Summer
Camp on Entrepreneurial Stimulation for Children
• The Consider global trade India’s share of world from May 2-7, 2004.
merchandise exports increased from .05% to .07% over [5] Matlay, & Harry , "Researching Entrepreneurship
the past 20 years. Over the same period China’s share and Education", Emerald Group Publishing Ltd., vol.
has tripled to almost 4%. 48 (8/ 9), pp. 704-718, 2006.
[6] Chinonye Okafor and Roy Amalu, (2010),
• India’s share of global trade is similar to that of the “Entrepreneurial Motivations as Determinants of
Philippines and economy 6 times smaller according Women Entrepreneurship Challenges by”, Economic
to IMF estimates. science series, vol LXII, no. 2, pp. 67-77.
• Over the past decade FDI flows into India have averaged [7] Rinkal, Divya and Sneha. , "Women Entrepreneurs--
around 0.5% of GDP against 5% for and 5.5% for Critical Issues." Proceedings of the 11th Summer
Brazil. FDI inflows to China now exceed US $ 50 Camp on "Entrepreneurial Stimulation for Children
billion annually. It is only US $ 4billion in the case of from May 2-7, 2004.
India. [8] Mitchell & B. C. (2004), "Motives Of Entrepreneurs:
A Case Study Of South Africa", The Journal of
Entrepreneurship, vol. 13 (2), pp. 167-183.
8. CONCLUSION
[9] Jesselyn and Mary (2004), "The Formal Institutional
The all women are endowed with innate power that can
Framework of Entrepreneurship In The Philippines:
make them successful entrepreneurs. Women
Lessons for Developing Countries", The Journal of
empowerment becomes reality by nurturing their innate
Entrepreneurship, vol. 13 (2), pp. 185-203.
qualities of entrepreneurship. When women bring life
[10] Vijay and B. (1997), “Problems and Prospects of
into this world, it contributes to the society. When an
Women Entrepreneurs” , The Indian Journal of
entrepreneur creates an enterprise it generates
Commerce, Golden Jubilee 193(IV), pp. 218-221.
employment, create wealth. Entrepreneurship is a
[11] Levent.T. ,Masurel. E & Nijkampo, P. (2003),
prerequisite for the development of any nation. The
“Diversity in entrepreneurship: Ethnic and Female
independence brought the promise of equality of
Roles in Urban Economic Life” , International
opportunity in all spheres to the Indian women and laws
Journal of Social Economics 30(11), pp. 1131-1161.
guaranteeing for their equal rights of participation in the
[12] Ahl and H. (2006), “Why research on women
political process and equal opportunities and rights in
entrepreneurs needs new directions”,
education and employment were enacted. But
Entrepreneurship Theory & Practice, vol. 30 no. 5,
unfortunately, the government sponsored development
pp. 595-621.
activities have benefited only a small section of women.
[13] Jamali, D., Sidani, Y. and Safieddine, A. (2005),
The large majority of them are still unaffected by the
“Constraints facing working women in Lebanon: an
change and development activities have benefited only a
insider View”, Women in Management Review, vol.
small section of women i.e. The urban middle class
20 no. 8, pp. 581-94.
women. The large majority of them are still unaffected by
[14] Winn and Joan , “Women Entrepreneurs: Can we
change and development. The reasons are well sited in
remove the Barriers?” International
the discussion part of this article. It is hoped that the
Entrepreneurship and Management Journal, vol.
suggestions forwarded in the article will help the
1(3), pp. 381-397, 2005.
entrepreneurs in particular and policy-planners in general
[15] Bruin, A., Brush, C. and Welter, F. (2007),
to look into this problem and develop better schemes,
“Advancing a framework for coherent research on
developing programs and opportunities to the women folk
women’s entrepreneurship”, Entrepreneurship
to enter into more entrepreneurial ventures.
Theory & Practice, vol. 31 no. 3, pp. 323-39.
[16] Das M, (2001), “Women entrepreneurs form India-
REFERENCES problems motivators and success Factors”, Journal of
[1] Hisrich, R. D., Brush, C., (1984), "The Women small business and entrepreneurship, vol. 15, no.4,
Entrepreneur: Management Skills and Business pp.67-81.
Problems", Journal of Small Business Management,
vol. 22 (1), pp. 30-37.
Volume 1, Issue 4 November - December 2012 Page 60
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com
Volume 1, Issue 4, November – December 2012 ISSN 2278-6856
[17] Saikou S.E., (2008), “Small and Medium Enterprise
for Women Entrepreneurs in Taiwan” , World
Journal of Agricultural Sciences, vol.4, pp. 884-890.
[18] S. Vargheese Antony Jesurajan & Dr. M. Edwin
Gnanadhas (2011), “Study on the factors motivating
women to become entrepreneurs in tirunelveli
district” , Asian Journal of Business and
Economics,vol.1, no.1, pp. 2231-3699.
[19] Farr-Wharton, R. and Brunetto, Y. (2007), “Women
Entrepreneurs, Opportunity Recognition and
Government-Sponsored Business Networks: A Social
Capital Perspective”, Women in Management
Review, vol. 22, no. 3, pp. 187-207.
[20] Government of India, Planning Commission (1992),
Eighth Five Year Plan, 1992-97 New Delhi. And
Tenth Five Year plan 2002-07.
[21] Farr-Wharton, R. and Brunetto, Y. (2009), “Female
Entrepreneurs as Managers - The Role of Social
Capital in Facilitating a Learning Culture”, Gender
in Management: An International Journal, vol. 24,
no. 1, pp. 14-31.
[22] Hampton, A., McGowan, P. and Cooper, S. (2011),
“Developing Quality in Female High Technology
Entrepreneurs Networks”, International Journal of
Entrepreneurial Behaviour & Research, vol. 17, no.
6, pp. 588-606.
[23] Jamali, D. (2009), “Constraints and Opportunities
Facing Women Entrepreneurs in Developing
Countries: A Relational Perspective”, Gender in
Management: An International Journal, vol. 24, no.
4, pp. 232-251.
[24] Tambunan, T. (2009), “Women Entrepreneurship in
Asian Developing Countries: Their Development and
Main Constraints”, Journal of Development and
Agricultural Economics, vol. 1, no. 2, pp. 27-40.
[25] Langowitz, N. and Minniti, M. , “The
entrepreneurial propensity of women”,
Entrepreneurship Theory & Practice, vol. 31 no. 3,
pp. 341-64, 2007.
[26] Jalan B. , (1996) “India’s Economic Policy:
Preparing for the Twenty-First Century”, Penguin
Books, New Delhi.
Volume 1, Issue 4 November - December 2012 Page 61
Related docs
Other docs by editorijettcs
