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International Journal of Emerging Trends & Technology in Computer Science (IJETTCS) Web Site: www.ijettcs.org Email: email@example.com, firstname.lastname@example.org Volume 1, Issue 4, November – December 2012, ISSN 2278-6856, Impact Factor of IJETTCS for year 2012: 2.524
International Journal of Emerging Trends & Technology in Computer Science (IJETTCS) Web Site: www.ijettcs.org Email: email@example.com, firstname.lastname@example.org 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 . 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 . ‘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)  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 . 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)  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 . 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) . 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: email@example.com, firstname.lastname@example.org 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)  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 . 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)  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)  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: email@example.com, firstname.lastname@example.org 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  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  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 . 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: email@example.com, firstname.lastname@example.org 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 . 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  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 . 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  women to be an entrepreneur at par with men. smaller enterprises are benefiting from these potential as much as larger firms  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 . 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  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  Eastern Europe and Latin America are growing want  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 . 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 . 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  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  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: email@example.com, firstname.lastname@example.org Volume 1, Issue 4, November – December 2012 ISSN 2278-6856 India is ranked 18th among the world’s leading exporters  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: . 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  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  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  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.  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  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.  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  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  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  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  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.  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  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  Bruin, A., Brush, C. and Welter, F. 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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: email@example.com, firstname.lastname@example.org Volume 1, Issue 4, November – December 2012 ISSN 2278-6856  Saikou S.E., (2008), “Small and Medium Enterprise for Women Entrepreneurs in Taiwan” , World Journal of Agricultural Sciences, vol.4, pp. 884-890.  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.  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.  Government of India, Planning Commission (1992), Eighth Five Year Plan, 1992-97 New Delhi. And Tenth Five Year plan 2002-07.  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"The Women Adoption in Owned Businesses and Entrepreneurship in India"