A STUDY OF WOMEN ENTREPRENEURSHIP DEVELOPMENT IN INDUSTRIES BACKWARD AREAS Dr. M. A. Lokhande Professor, Department of Commerce Dr. Babasaheb Ambedkar Marathwada University, Aurangabad ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Entrepreneurship, being the prime driving force for economic development in general and industrial development in particular has a great deal of potentiality of generating more and more job opportunities, optimum utilization of available resources and bringing propriety to the nation. Women entrepreneurship is the fact today as women are entering in the field of trading, manufacturing, and processing and service activities in a large number. Nobody can deny the fact that thousands of Women have given shape to the economy of Gujarat state by way of daily industry. Women, since Vedic period, are well skilled in dressmaking, embroidery, architecture, preparing perfumes and cosmetics, clay modelling etc. Women entrepreneurship is not at all new phenomena in our country. Our great national leader late Pandit Nahru had aptly observed When the women moves forward, the family moves, the village moves and the nation moves. Shri Mahila Grih Udyog (Maharashtra), having annual turnover of more than $6.50 billion and about 42,000 women employees has proved that women entrepreneurs, if given opportunities, can excel in any field of business activities. Women entrepreneurship is rapidly developing due to opportunities created by globalization of trade and industry. Women, around half of the world human resources and having inherent entrepreneurial qualities, can contribute substantially to word economic development. Research studies have shown that women s share bin national income is more than 50 per cent. A women entrepreneur can be defined as the owner and controller of an enterprise having majority capital holding (51%) and providing jobs to women on priority basis. In recent years, a new force of women entrepreneurs is coming up from the lower strata of the society through self-help groups. According to the NABARD Report, 2012-13,there were 22.38 lakh SHGs linked with banks and 90% of them were women engaged in gainful entrepreneurial activities as on 31 st March, 2006.
In its effort to encourage and support women entrepreneurship, RSK (Rashtriya Mahila Kosh) disbursed Rs. 14,753.57 crores to 5.48 lakh borrowers up to 31 st March,2006 since its inception. The state government of Maharashtra has been assisting women entrepreneurs, particularly from backward areas by providing the incentives/concessions such as, exemptions from electricity duty, waiver of stamp duty and registration frees, refund of octoroi duty, special capital incentives for SSI units, interest subsidy to new textile, hosiery and knitwear SSI units, financing of capital incentives and refunds under the Package Scheme, sales tax for Khadi & Village Industries etc. In order to accelerate the pace of women entrepreneurship, the central and the state governments are trying their best for promoting entrepreneurship among women through policy measures and institutional network. In spite of their efforts, there has been slow progress of women entrepreneurship even in industrial belts and much slow in industrially backward regions. The need of the hour is to explore the avenues for women entrepreneurs and support them. Keeping in view the need and the importance of women entrepreneurship, the study has been undertaken to understand about motivational factors and problem of women entrepreneurs from Sillod, Vaijapur and Soygaon blocks of Aurangabad district in Maharashtra. Objectives of the study:- The principal objectives of the study are. 1. To understand the socio-economic back ground of women entrepreneurs. 2. To study the motivational factors inducing women entrepreneurs. 3. To know about the problems faced by women entrepreneurs. Scope and Methodology of the study: The study is confined to small scale women entrepreneurs from three blocks (viz. Sillod, Vaijapur and Soygaon) of Aurangabad district, the blocks being declared as the least industrially developed areas in Maharashtra state. A sample of 189 women entrepreneurs (small scale) constituting 10% of 1890 women entrepreneurs (Cumulative up to 31 st March, 2013) trained by the MCED (Maharashtra Centre for Entrepreneurship Development) Aurangabad has been selected conveniently.
The primary data were collected with the help of a structured questionnaires and partly interviews with the respondent. Secondary data were collected from the sources such as offices records of MCED and DIC, books and journal relevant to the study. Profile of sample Entrepreneurs: Education is one of the most effective means of empowering women, which creates awareness, skill, knowledge, and enough confidence to particular actively in the process of development. According to a study report proper education of women in Kerala resulted in high motivation among them to undertake entrepreneurial activities. Table 1 gives literacy level of women entrepreneurs. Table 1- Education qualifications of women entrepreneurs. Sr. No Educational Qualification No.of respondents Percentage 1 SSC/HSC 24 38.10 2 Graduation 10 15.87 3 Post Graduation 06 09.52 4 Diploma *Fashion Designing *Home science *Interior Decoration 08 12 03 12.70 19.05 04.76 Total 63 100.00 Source: Field Survey-2007 The literacy level of the respondents under study indicated that 38.10% of 63 respondents were SSC/HSC, 15.87% graduates and 9.52% were post graduates. Out of 63 respondents, 23 respondents had completed diploma courses. Most of the entrepreneurs under the study had 63 entrepreneurial activities based on their knowledge and skill. It is noteworthy that the 63 entrepreneurs under study had participated in different EDRs organized by the MCED (Maharashtra Centre for Entrepreneurship Development), Jalna. The MCED, Jalna so far has organised 25 EDPs specially for women. Women entrepreneurs are being assisted under development programmes such as NREP (National Employment Programme), IRDP (Integrated Youth), RLEGP (Rural landless Graduation Programmer) and SEPUP (Self Employment Programme for Urban Poor), PMRY (Prime Ministers Rojagar Yojana).
Social background of women entrepreneurs: Social background of women is one of the crucial factors leading them to undertake entrepreneurial activities. Jains, Marwaries, Gujarats and parsis are well known commercial communities. Natutally, women belonging to Marwari or Gujrathi family have inherent business skill and they are found respondents belonged to Marwari s followed by Gujrathis (17.46%) and jains (14.28%). It was observed that women belonging to other castes or social groups with no business background were found running their own business ventures successfully. Table 2-Social background of women entrepreneurs:- Sr. No Religion/Caste No. of respondent Percentage 1 Marwari 13 20.63 2 Jain 09 14.28 3 Gujrathi 11 17.46 4 Maratha 06 09.53 5 Banjara/Vanjari 05 07.94 6 Nav-boudha 04 06.35 7 Christian 04 06.35 8 Muslim 05 07.94 9 Mali 04 06.35 10 Brahmin 02 03.17 Total 63 100.00 Source: field Survey -2007 Family occupation of women entrepreneurs: Besides educational qualifications, family occupation of entrepreneurs is one the influential factors. New entrants in the field of entrepreneurship can get themselves acquainted with business procedures and techniques through their family members. In case of women, as they get less opportunity to handle their family business activities, have less business experience. However, the situation is changing gradually. Table 3 Family occupations of women entrepreneurs
Sr No. Occupation No. Of respondents Percentage 1 Tiny Industry 09 14.28 2 Trading 11 17.46 3 Agriculture 17 26.98 4 Service 26 41.28 Total 63 100.00 Source: Field Survey -2007 The data analysis disclosed that of 63 respondents, 41.28% and 26.98% respondents were from the families with the occupations i.e service and agriculture respectively. On the other hand, 17.46% of he respondents were related to the families with trading while 14.28% respondents were from the families having manufacturing background. It is noteworthy that women are coming forward and proving themselves in any field of challenges irrespective of their family background. Entrepreneurial activity wise classification: Activity wise classification of women entrepreneurs shown in table-4 indicates that: Table -4 Activity wise classifications of women entrepreneurs: Sr No. Activity No Respondents Percentage 1 Tailoring 12 19.05 2 Edible oil extraction 03 04.76 3 Pickles, Masala, Papad 09 14.29 4 Beuty parlors 08 12.70 5 Screen printing 07 11.11 6 Bakery producer 06 09.52 7 Fashion Designing 04 06.35 8 Pav Bhazi centre 05 07.94 9 Kirana Shop 05 07.94 10 Interior decoration 04 06.34 Total 100 Source: Field survey-2007
Most of the activities undertaken by the women entrepreneurs in Jalna district are imitative, tiny and traditional. Motivational Factors: Research studies have shown that entrepreneurs can be made through proper guidance and training. It is crystal clear that certain motivational factors induce entrepreneurs to start ventures. Motivations are an inner spirit that activates a person to undertake entrepreneurial activities. Achievements motivation is the springboard for dynamic and resourceful entrepreneurship. The respondents were asked about which factors induced them. Multiple responses were received as shown in table -4. The study revealed that social recognition and status was most influential factor responsible for the entry of more that 46.03% of the respondents wanted to be owner of their own enterprise while 36.51% expressed that they had good support from their family and friends. Traditional job market has been shrinking day by day and there is no option remained to business activities. Non availability of jobs inspired. 17 women to undertake entrepreneurial activities to support their families. Table -5 Motivational factors inducing women entrepreneurs: Sr. No Motivational factors No.of respondents Percentage to 63 1 Recognition & status 29 46.03 2 Knowledge & skill 23 36.51 3 Ancestral Business 04 6.35 4 Non-availability of jobs 17 26.98 5 Scheme of assistance 21 33.33 6 Support by family & friends 23 36.51 7 Contact with other entrepreneurs 08 12.70 8 Self help group 11 17.46 9 Self reliance 27 42.86 Source: field Survey -2007 The incentives offered by the state government of Maharashtra wooed 33.33% women entrepreneurs. More than 17% of the respondents stated that they got motivation and support from self-help groups, while 6.355 respondents imitation their ancestral friends. Traditional
Job market has been shrinking day by day and here is no better alternative to business activities. Non availability of jobs inspired 17 women to undertake entrepreneurial activities to supports their families. In view of 36.51% of the respondents, the knowledge and skill acquired by them led to entrepreneurship, while 12.70% women entrepreneurs had launched their units due to contact and guidance by other entrepreneurs. It may be concluded that most of the women entrepreneurs wanted to gain social recognition, economic independence and separate identity. Incentives availed by women entrepreneurs: The state Government of Maharashtra has been implementing the schemes of incentives to motivate entrepreneurs in industrially backward areas since 1964. The incentives available are interest free loans, exemption in sales tax, income tax and stamp duty. The assistance under the package schemes of incentives was to the tune of Rs. 48,192.31 lakhs as on 31 st March, 2005. Besides these incentives, there are special incentives for women entrepreneurs e.g. capital investment subsidy, interest subsidy etc. Women entrepreneurs can avail the benefits under the seed money assistance scheme, Margin Money loan scheme and the PMRY. Table- 6 Incentives & facilities availed by women entrepreneurs:- Sr No Incentives/Facilities No of Respondents Percentage 1 Seed Capital 29 46.03 2 Assistance under PMRY 27 42.86 3 Marketing Assistance 33 52.38 4 Concession rate loan 45 71.43 5 Concession in Income tax 25 39.38 Margin Money 24 38.09 Sources:- Field survey-2007 It is revealed from table -6 that more than 70% women entrepreneurs were benefited with soft loans under different schemes. Marketing assistance was availed by 52.38% entrepreneurs from MAVIM(Mahila Arthik Vikas Mahamandal), MSSIDC (Maharashtra Small scale Industries Development corporation) and NGOs. PMRY has been instrumental in promoting women entrepreneurs in backward regions. Under this scheme, 27 women started their own small business activities. Seed capital scheme is being implemented by DICs to
encourage educated unemployed youth to undertake business activities. Out of 63 women entrepreneurs, 29 (46.03%) got the benefits of this scheme. Another scheme of assistance, Margin Money scheme that is also being implemented by the DIC, is very much helpful to small entrepreneurs. The same number of respondents had availed seed capital assistance and income tax concession. Out of 63 respondents, 24 respondents were assisted with margin money loan. It is noteworthy that all the 63 women entrepreneurs were in favour of the scheme of assistance and categorically stated that it should be continued in future at small scale units. Problem faced by women entrepreneurs: In view of the slow progress of women entrepreneurship in Jalna district, the entrepreneur s studies were asked about their problems and difficulties. Majority of the respondent s i.e.46.03% of 63 respondents categorically stated that had been experiencing sex discrimination in a male dominated orthodox society. This is major bottleneck in the progress of women entrepreneurship in India. The need of the hour is to do away with hostile discrimination against women. Table -7 Problems faced by women entrepreneurs: Sr. No Nature of the Problem No. Of respondents Percentage 1 Shortage of Working capital 33 52.38 2 Inadequate supply of raw material 29 46.20 3 Shortage of skilled labour 21 33.33 4 Lack of marketing assistance 30 47.62 5 Deficiency of infrastructure 12 19.05 6 Work stress & health problems 41 65.08 7 Delayed assistance of incentives 31 49.21 8 Sex discrimination 29 46.03 9 Unsupportive attitude of employees 22 34.92 10 Lack of knowledge skill 13 20.63 Source:-Field Survey-2007 Regarding work stress and health problems, 65.08% said that they had been facing these problems, as they had to perform number of duties besides business duties. It was also observed that more than 47.62% women entrepreneurs had to face marketing problems they
opined that the MSSIDC should provide adequate a timely marketing assistance to women entrepreneurs. According to 49.21% of the respondents, too delayed assistance of incentives, created serious financial crisis. Some of them criticized the complex and delayed procedure of promotion/ financial agencies. As many as 20.63% respondents clearly stated that they had not adequate knowledge and skill of management. In case of 46.02% women entrepreneurs under study, many a times, there was shortage of raw material. About 52.38% of the respondents had inadequate supply of working capital, which adversely affected production. Some 19.05% respondents had complained about infrastructural deficiencies and also opined that it was one of the major factors respondents for slow progress of entrepreneurship in Jalna district. It was also found that about 39.42% women entrepreneurs did not have full support of their employees while 33.33% had to face shortage of skilled workers. Observation: On the basis of the above discussion, a few observations were as. The study disclosed that more than 80.00% of the women respondents preferred to set up tiny traditional enterprise. A few women entrepreneurs with particular diploma had initiated in launching modern venture such as fashion designing interior decoration and beauty care. The data analysis shown that the family occupation of the entrepreneurs is an influential factor as they can get direction and guidance regarding business procedure and techniques. Nearly 31.74% of the respondents under study had the family occupation either industry or trading. It was observed that women entrepreneurs belonging to agriculture had preferred edible oil extraction, pickles, masala. Papad manufacturing while some women entrepreneurs, selected tailoring, beauty care, screen printing as their economic activities to support their families. It is to be noticed that women entrepreneurs are also coming up from the families, which do not have business background. With regard to the motivational factors, nearly 46.03% of the respondents got motivation because of social recognition and status while 26.98% had categorically stated that they entered the field of entrepreneurship, as there was no availability of job
opportunities. In case of 33.33% of the total 63 respondents, the attractive incentives offered by the Govt. Induced them to set up their units. There were 4 (6.35%) women entrepreneurs encouraged due to ancestral business (36.51%) had good support of their families and friends and friends and 8 (12.70%) were imitative entrepreneurs. In view of 42.86% of the respondents self reliance and a separate identity were the most influential factors. The study also disclosed that the scheme of incentives has a lion s share in inducing women entrepreneurs in industrially backward blocks of Jalna district. Majority of women were the beneficiaries of concessional rate loans. According to women entrepreneurs under study, special capital incentives, seed capital, margin money, and marketing assistance were supportive to their ventures. As regards the problems, difficulties, most of the respondents i.e. 46.03% spoke about their bad experiences of discriminatory and biased treatment given to them. Nearly 65% respondents had work stress and health problems because of the dual excessive workload. In case of 47.62% of the respondents lack of marketing assistance was major problem, 46.02% respondents had to face inadequacy of raw material while 52.38% had deficiency of working capital. It was also observed that the problem such as, delayed assistance, shortage of skilled labor, lack of business experience and infrastructural deficiencies were stumbling blocks in the progress of women entrepreneurship in Jalna district. Suggestions:- In the context of rapid globalization of Indian economy a number of business opportunities are available for innovative and energetic entrepreneurs. Women entrepreneurship can play a pivotal role in generating job opportunities, proper utilization of available resource and inculcating ethical values in business. In our country, women are the most under privileged class and it needs to provide them opportunities of development on priority basis without any bias, discrimination. The promotional is financial agencies need to improve quality of their services and provide adequate and timely assistance to women entrepreneurs. The package scheme of incentives has a lion s share in motivating and supporting entrepreneurs, particularly in industrially backward areas. However, there is need of reorientation of these schemes and a wider publicity of schemes for women entrepreneurs is the need of hour.
As regards EDPs, the MCED, the DIC and other agencies should organize adequate number of EDPs for women at block as well as at village level. Self Help group should be set up on large scale and covered under EDPs. Our educational structure also needs reorientation. The courses taught must be product and process oriented leading to entrepreneurship. Women entrepreneurs should be assisted with adequate infrastructure, financial assistance and advanced technology. I may be suggested that no collateral security should be demanded to women entrepreneurs, as majority of them do not have title of the properly. Successful women entrepreneurs should be felicitated properly so that others are motivated and encouraged. Social reforms are needed to stop discrimination on sexual basis and provide equal opportunities of development. Conclusion: Women, having inherent managerial skills, can successfully run any type of business enterprise provided a conductive business environment is created. It is a matter of satisfaction that the government and non-government organisation have been striving hard for promotion of women entrepreneurship through different schemes of assistance. Today s women entrepreneurs are leading is every field of economic activity. However, their number is small which needs to be increased significantly. There is also need of promotion of self help groups of women and support their entrepreneurial activities. Today s woman is creative, industrious and innovative. In spite of these entrepreneurial qualities, they get fewer opportunities. Women s share in world gross product is more than two third but they receive only 10 per cent world income (ILO report, 1980). Working women world over are victims of socioeconomic discrimination. So, every possible effort should made be empower women to strengthen our nation. References: 1. Basham A.L,2004, the wonder That was India, Pan Macmillan Ltd.London,PP.185 2. Desai, vasant 1992, Dynamic of Entrepreneurial Development & Management, Himalaya Publication House, Bombay.
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