Women Entrepreneurs in the Informal Sector in Mayiladuthurai Town A Study

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1 Available online at International Journal of Advanced Scientific Research & Development Vol. 02, Spl. Iss. 02, Ver. I, Aug 2015, pp e-issn: p-issn: Women Entrepreneurs in the Informal Sector in Mayiladuthurai Town A Study S. SELVI Asst. Prof. in Economics, AVC College (Autonomous), Mayiladuthurai, Tamil Nadu S. SARANYA DEVI Asst. Prof. in Economics, AVC College (Autonomous), Mayiladuthurai, Tamil Nadu ARTICLE INFO Article History: Received: 09 Jul 2015; Accepted: 10 Jul 2015; Published online: 10 Aug Key words: Entrepreneurship, Women Entrepreneur, Entrepreneur Development. ABSTRACT Informal sector occupies a crucial role in the economic development of our country which may defined as those establishments that employ less than 10 persons with or without use of power. wadays, women are not only independent but also have their autonomy in many aspects such as politics, education, socially and economically. However, the realty is though they have entered into all business, majority are found in the informal sector in one side and in the backward regions, their role is still questioned in the formal sector on the other. The present research is made an attempt to bring out the significance of informal women entrepreneur in generating income to their families. Based on this, an attempt is made to analyze the incidence of women entrepreneurs in one of the towns of Nagapattinam district, Mayiladuthurai. The specific objectives of the is paper are to study the socio-economic background of the women entrepreneurs in informal sector; to explore the problems encountered by the women entrepreneurs in informal sector; and to offer suggestions for fostering women entrepreneurship in informal sector in the study area. Sample of 30 women entrepreneurs engaged in various business of Mayiladuthurai town was conveniently selected and interviewed personally for the study. It is also found that age is not an obstacle to start any business. Maturity, vast experience and age are the determining factor of entrepreneurship. The literacy level of women entrepreneurs was found to be very low. The proportionate share of the contribution of women entrepreneurs to their annual family income range between of 66% and 87%. The study reveals the fact that though women entrepreneurs with their marginal capital undertake trade at micro level, they contribute a greater proportion of income to their families. They face various constraints in mobilizing finance. Dual role of women is the major social constraints faced by women entrepreneurs. The Indian society is shifting from conservative attitude to progressive attitude. So, women are getting more opportunities not only in entrepreneurial arena but also in other domains of human life. If women entrepreneurs get support and encouragement from family, society, Government and financial institutions, such positive effort can open new avenues for them and increase the marketability and profitability of business owned by them. Copyright 2015 IJASRD. This is an open access article distributed under the Creative Common Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. How to cite this article: Selvi, S., & Devi, S. S., (2015). Women Entrepreneurs in the Informal Sector in Mayiladuthurai Town A Study. International Journal of Advanced Scientific Research & Development (IJASRD), 02 (02/I), [Special Issue Aug 2015], pp

2 INTRODUCTION Women Entrepreneurs in the Informal Sector in Mayiladuthurai Town A Study Informal sector occupies an important role in the economic development of our nation. The term informal sector was first used by the International Labor Organization (ILO) in1972 to denote a wide range of small and unregistered economic activities, which may be defined as those establishments that employ less than 10 persons with or without use of power. The informal sector consists of all activities that fall outside the formal net registered, taxed, licensed, statistically documented, and approximately zoned business enterprises (Thomas, 1988). It is the unique feature that in most developing countries women are the active players in the informal sector (Mbeche, 2002). Despite all social hurdles, many women have been successful in their works. Until now, a widespread assumption has been that such women engaged in informal entrepreneurship are necessity-entrepreneurs engaged in low-paid, menials, and exploitative work in the absence of alternative means of livelihood (Chen et al.2004; ILO 2002) Entrepreneurship is traditionally considered to be a male dominated pursuit, but the number of women entering entrepreneurship is increasing comparatively and at present account for about 10% of the total entrepreneurs in India (Barhate, 2012). They have multiple roles and responsibilities in their family and also in their business. In 21st century, the autonomy and power of woman have become more obvious and as clear (Purdy 2005). Over the last century, women have substantially infiltrated professional, educational, managerial and executive positions once employed by men (Eisenberg, 2010). An entrepreneur has been dominated or pursuit by men, but many women are stepped into the entrepreneurship today. The field of entrepreneurship is increasing its theoretical focus on the unique contributions of women entrepreneurs to business and society (de Bruin, Brush and Welter, 2007). wadays, women are not only independent but also have their autonomy in many aspects such as politics, education, socially and economically. They have the liberty of expressing their own ideas and displeasures on a variety of matters (Brindley, 2005). However, the realty is though they have entered into all business, majority are found in the informal sector in one side and in the backward regions, their role is still questioned in the formal sector on the other. It is a wrong notion that women employment is of secondary nature and plays only supportive role to the male income in the family. But the role of rural women as unorganized workers is 95.7% in total workforce compared to the male share of 90.7% (Report of Ministry of Women and Child Development, 2007). Women dominate those forms of work that are unregulated and unregistered, found mostly in the so called informal economy. Many of these women workers are primary earners for their families. Their earnings are necessary for their survival. The present research is made an attempt to bring out the significance of informal women entrepreneur in generating income to their families. Based on this, in this paper an attempt is made to analyze the incidence of women entrepreneur in one of the towns of Nagapattinam district, Mayiladuthurai. 1.1 Objectives The specific objectives of the is paper are to study the socio-economic background of the women entrepreneurs in informal sector; to explore the problems encountered by Volume 02, Special Issue 02, Version I 10 th & 11 th August

3 International Conference on Innovation in Commerce and Management (ICONICM 2015) Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal, Mayiladuthurai , Tamil Nadu, India. the women entrepreneurs in informal sector; and to offer suggestions for fostering women entrepreneurship in informal sector in the study area. DATA COLLECTION Keeping the above objectives in mind a sample of 30 women entrepreneurs engaged in various business like Vegetable Vendor (9), Flower Vendor (6), Petty Shop (4), Dairy Products (3), Tailoring (5), Food Supplier (2), Beauty Parlour (1) of Mayiladuthurai town was conveniently selected and interviewed personally for the study. MAJOR OBSERVATIONS 30 sample respondents were selected for the present study. The various enterprises considered as Vegetable Vendor (9), Flower Vendor (6), Tailoring (5) Petty Shop (4), Dairy Products (3), Food Supplier (2), Beauty Parlour (1) Some are engaged in entrepreneurship due to external circumstances such as divorce, widow or gender discrimination, some entering into entrepreneurship in order to overcome their poverty, unemployment or loss of family support. It has become necessary for those women to work in the informal sector to be the bread winners to support their family income. Women entered the business to shoulder the financial needs of their families. The data in Table 2 reveals that percent respondents selected their family business and self-employment percent where forced by circumstances. Only percent women respondents choose it as career option. It is also found that age is not an obstacle to start any business. Maturity, vast experience and age are the determining factor of entrepreneurship. It is a common belief that as an individual grows old she tends to mature in wisdom and experience. With maturity and vast experience, entrepreneur at the higher age group can achieve goals expected and natures of their enterprises are given table 3. The larger proportion of entrepreneurs that is percent found in the age group of years. It is observed that very young women (up to 20yrs) have incubation in undertaking vegetable vending, petty shop, dairy products, food supplier and beauty parlour. Among the total entrepreneurs very young respondents up to 20 years prefer tailoring to other types of business It is observed that the women entrepreneurs had medium size family. The Average family size of family members is between 3 and 6. The literacy level of women entrepreneurs was found to be very low. The highest literacy level was primary school level. The average annual income from entrepreneurship was between Rs12, 000 and 35, 000. The average annual income of households was betweenrs17, 000 and35, 000. The proportionate share of the contribution of women entrepreneurs to their annual family income worked out to be in the range of 66% to 87%. The study reveals the fact that though women entrepreneurs with their marginal capital undertake trade at micro level, they contribute a greater proportion of income to their families. 113 Volume 02, Special Issue 02, Version I 10 th & 11 th August 2015

4 Women Entrepreneurs in the Informal Sector in Mayiladuthurai Town A Study With regard to the problems faced by the entrepreneurs, the women entrepreneurs face various constraints in mobilizing finance. The ranks given by the respondents given It can be inferred from the table shortage of working capital is a serious constraints faced by the women entrepreneurs. The sample respondents viewed that banks have a negative attitude towards women entrepreneurs and it is ranked second. Rigid repayment schedule is ranked third and inadequate size of loan is ranked fourth by the respondents. Delay in sanctioning loan is ranked last. Further, the Dual role of women is the major social constraints faced women entrepreneurs. Male domination and lack of economic freedom are ranked as the second and third constraints faced by women entrepreneurs. Lack of self-confidence is ranked fourth and absence of family encouragement is ranked last. The respondents felt that they are not recognized properly by the family members and the society. SUGGESTIONS Efforts from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Entrepreneurship basically implies being in control of one s life and activities and women entrepreneurs need to be given confidence, independence, and mobility to come out of their paradoxes. To empower the women and to seize various opportunities and face challenges in business, some of the possible measures are suggested. Inculcation of entrepreneurial culture by Continuous attempt to inspire, encourage, motivate and co-operate women entrepreneurs and enunciation of awareness programme to encourage women entrepreneurs in the study area. Advice the educational institutions in the region to enhance the standards of education of women in general as well making effective provisions for their training, practical experience and personality development programmes, to improvise their over-all personality standards through their curriculum. Provision of vocational training to women folk by the training agencies and NGOs in this region that enables them to understand the production process and production management Arrangement of International, National, Local trade fairs, Industrial exhibitions, seminars and conferences should be organized to help women to facilitate interaction with other women entrepreneurs. Measures to be taken through the Financial Institutions say, commercial Banks to render financial assistance under concessional terms for small scale venture and large scale ventures. Arrangements may also be made through the self-help groups of women entrepreneurs to mobilize resources and pooling capital funds, in order to help the women in the field of industry, trade and commerce can also play a positive role to solve this problem. CONCLUSION Women, being almost 50% population of India, have a pivotal role to play as far as economic development of country is concerned. The Government has increased the Volume 02, Special Issue 02, Version I 10 th & 11 th August

5 International Conference on Innovation in Commerce and Management (ICONICM 2015) Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal, Mayiladuthurai , Tamil Nadu, India. importance of women by adopting various schemes and programs for their participation in economic activities. The Indian society is shifting from conservative attitude to progressive attitude. So, women are getting more opportunities not only in entrepreneurial work but also in other domains of human life. Thus by adopting the following aforesaid measures the problems associated with women entrepreneurs can be solved. Entrepreneurship is not a bed of roses to women. Women participation in many kinds of economic activities to complement to their family income, their participation in no way reduces their family duties. The task of women has become more tedious and full of challenges. If the problems of women entrepreneurs are addressed properly, they can emerge as very successful entrepreneurs far better than men entrepreneurs. REFERENCE [1] Gopalakrishnan. V (2004), Rural Women Entrepreneurship, Discovery Publishing House, New Delhi, pp [2] Ratna. M Sundaram (2007) Gender Statistics and Development Policy: Women Work in India, CSP Research Report 06, Institute of Social Studies Trust, New Delhi. [3] Report of Ministry and Child Development. [4] Shoma Chatterjee (2009), Women and Work in Informal Sector in India, International Conference held at Christ College, Bangalore, pp [5] [6] APPENDIX Table 1: Nature of Enterprise. Nature of Enterprise Number of Units 1 Vegetable Vendor 9 2 Flower Vendor 6 3 Petty Shop 4 4 Dairy products 3 5 Tailoring 5 6 Food Supplier 2 7 Beauty Parlour 1 Total 30 Table 2: Reasons for Selecting Business Family Business Selfemployment Forced by circumstances Career Number of Units 1 Vegetable Vendor (30) 2 Flower Vendor (20) 3 Petty Shop (13.33) 4 Dairy products (10) 5 Tailoring (16.66) 6 Food Supplier (6.66) 115 Volume 02, Special Issue 02, Version I 10 th & 11 th August 2015

6 Women Entrepreneurs in the Informal Sector in Mayiladuthurai Town A Study 7 Beauty Parlour (3.33) Total Percentage (%) te: Figures in the Parenthesis denote the Percentage Table 3: Age Wise Classification of Women Entrepreneurs Up to 20 yrs yrs yrs Above 40 yrs 1 Vegetable Vendor Flower Vendor Petty Shop Dairy products Tailoring Food Supplier Beauty Parlour Total Total Percentage (%) te: Figures in the Parenthesis denote the Percentage Table 4: Economic and Social Empowerment 1 Average size of Family 2 Literacy Level Average annual income from business (Rs) Average annual income from households Women entrepreneurs contribution family income to Vegetable Vendor Flower Vendor Petty Shop Dairy products Tailoring Food Supplier Beauty Parlour Middle Higher secondary school Graduates % 66% 86% 83% 76% 71% 87% Table 5: Financial Constraints of Women Entrepreneurs Shortage of working capital Negative attitude of Financial Institution Delay in Sanctioning Loan Rigid Repayment Schedule Inadequate Size of Loan 1 Vegetable Vendor Flower Vendor Petty Shop Dairy products Tailoring Food Supplier Beauty Parlour Total Rank I II V III IV Volume 02, Special Issue 02, Version I 10 th & 11 th August

7 International Conference on Innovation in Commerce and Management (ICONICM 2015) Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal, Mayiladuthurai , Tamil Nadu, India. Table 6: Social Constraints of Women Entrepreneurs Lack of Self Confidence Absence of Family Support Dual role of Women Male Domination Lack of Economic Freedom 1 Vegetable Vendor Flower Vendor Petty Shop Dairy products Tailoring Food Supplier Beauty Parlour Total Rank IV V I II III 117 Volume 02, Special Issue 02, Version I 10 th & 11 th August 2015