PROBLEMS OF WOMEN ENTREPRENEURS

PROBLEMS OF WOMEN ENTREPRENEURS

1. PROBLEMS OF WOMEN ENTREPRENEURS G.REKA ASSISTANT PROFESSOR DEPARTMENT OF COMMERCE JAMAL MOHAMED COLLEGE TIRUCHIRAPPALLI TAMILNADU-620 020 INDIA

2. INTRODUCTION The emergence of entrepreneurs in a society depends to a great extent, on the economic, social, religious, cultural and psychological factors prevailing in the society. Entrepreneurship among women has been a matter of recent concern. The term “women entrepreneur” deals with that section of the female population who venture out into industrial activities i.e. manufacturing, assembling, job works, repairs/servicing and other businesses.

3. MEANING Women entrepreneurship is the process in which women initiate business, gather all resources, undertake risks, face challenges, provides employment to others, and manages the business independently. Women entrepreneurs are the women or group of women who initiate organise and operate a business enterprise.

4. DEFINITION The Government of India has defined women entrepreneurs as “an enterprise owned and controlled by women having a minimum financial interest of 51 per cent-bf the capital and giving at least 51 percent of the employment generated in the enterprise to women ”. According to Ruhani J. Alice, “Women entrepreneurship is based on women participation in equity and employment of a business enterprise.”

5. PROBLEMS OF WOMEN ENTREPRENEURS Important problems faced by women entrepreneurs are explained below: No Independence Primary problem of a woman entrepreneur is that of her being a woman. She is considered subordinate to male in all walks of life. The basic ingredients such as Independence and authority required for a successful entrepreneur are not adequate for women for India.

6. 2.Scarcity of Raw Material Most of the women enterprises are plagued by the scarcity of raw material and necessary inputs. Added to this is the high prices of raw material, on the one hand, and getting raw material at the minimum of discount, on the other. The failure of many women co-operatives in 1971 engaged in basket-making is an example of how the scarcity of raw material sounds the death-knell of enterprises run by women.

7. 3.Stiff Competition   Women entrepreneurs do not have organizational set-up to pump in a lot of money for canvassing and advertisement. Thus, they have to face stiff competition for marketing their products with both the organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women enterprises.

8. 4.Social Attitude Social attitudes are equally responsible for keeping women away from training and skill in rural areas overbearing presence of elders restrict the young girls from venturing out and very strict boundaries are drawn around their mobility.

9. 5.Low Literacy 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 a business, technology, and market knowledge. Also, a lack of education causes low achievement motivation among women. Thus, the lack of education creates problems for women in the setting up and running of business enterprises.

10. 6.Dual Responsibility A woman has to perform responsibilities towards family, society and work simultaneously consequently, a serious conflict emerges between home and work resulting in high stress level is beating a success Independence and progress.

11. 7.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.

12. 8.Financial Constraints The problem of finance for women entrepreneur still remains a challenge. They lack access to external funds due to the inability to provide tangible security very few women have property in their name. Banks also take negative attitude while providing Finance to women entrepreneurs. As a result they rely on their own funds and loans from family, friends which is inadequate to run the business

13. 9.Marketing Problems Marketing is a serious problem encountered by women entrepreneurs due to the Following reasons: competitions lack of storage facilities unaware of the value of products insufficient arrangement

14. 10.Limited Mobility Women entrepreneurs are handicapped by their inability to travel from one place to another for business reasons. Further, the humiliating attitude of government officials , i.e., licensing, authorities, labour officers, sales tax officials, etc., make life miserable for women and force them to get out of the business in the certain cases.

15. REMEDIAL MEASURES In order to promote women entrepreneurship the following measures have to be made at different levels of the Economy. 1.Vocational Education The first measure would be to provide education, particularly vocational and Technical Education to girls. The curriculum should be restructured to include accountancy, management, computer science, small scale industry and entrepreneurial development etc.,

16. 2. Entrepreneurship Motivation At School Level The girls at the school level should be inspired to adopt entrepreneurship. Generally, woman to become job seekers rather than job makers. To motivate the women, a coordinator effort should be made among the educational institutions, government departments and the business world.

17. 3.Accessibility To Information All possible access to information should be provided for woman entrepreneurs. Government agencies, associations of women entrepreneurs, NGOs and Universities should assume responsibilities in this regard.

18. 4. Separate Publications Separate publication should be brought out and distributed to women entrepreneur on subsidised rate order to create awareness and encourage them to avail of the benefits offered to them. Media should be used to give maximum information for promoting the cause of women entrepreneurs.

19. 5. 100% finance Bank and financial institution should offer 100 percent loan without Collateral security to qualified technocrats. Similarly, term loans and working capital loans should be sanctioned liberally on differential terms. It is also suggested that a certain percentage by reserved for women in the various self-employment schemes launched by the government.

20. 6.Access To Technology Access technology is low for woman entrepreneurs. Due to lack of finance and information, they cannot have proper tools and equipment to improve the product. Setting up of special Institutions at the state level would help to upgrade their skill and acquire new techno-managerial knowledge so that they good go in for innovative Technologies of production.

21. 7. Simple Formalities Efforts should be made to simplify the procedures, formalities, rules and regulations, etc., in matters regarding registration and getting assistance from different departments and government Agencies.

22. 8. Women Cooperatives T o meet the severe competition held out by big and small business, woman Cooperatives may be formed to market the products. Rural market that Cater to nearly three-fourths of the total consumers in India offer a vast scope for woman entrepreneurs. Rural tourism is another area which can be marketed by rural women entrepreneurs.

23. Conclusion The recent trends indicate what women entrepreneurs indicates that women entrepreneurs are sensitive to changing socio-economic conditions in the country. They are keen to take advantage of such positive changes. They also want to prove their mettle in dual role of work at home and participation in entrepreneurial activities. It is expected that the negative attitude towards women entrepreneurs by the family and society will fade off in future.