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Women Entrepreneurship in India: Prospects and Opportunities

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 Contemporary Indian Society and Culture (2014)
ISBN – 978-81-87364-60-3
Gayatri Publications
Editor – Dr. S. Akhilesh

Women Entrepreneurship in India: Prospects and Opportunities

Mr. Aritra Ghosh

UGC Project Fellow, Department of Sociology, University of Kalyani
&
Guest Lecturer, Department of Sociology, Chapra Bangaljhi
Mahavidyalaya, W.B.

1. INTRODUCTION
Women constitute around half of the total world population. So is in India
also. They are therefore, regarded as the better half of the society. In
traditional societies they were confined to the four walls of houses
performing house hold activities. A quiet revolution is taking shape right
now among women. Unlike the silence revolution that began in the 1970s
which saw women leave the home and enter the workforce in droves,
women today are leaving the workforce in droves in favor of being at home.
But unlike generations of women before, these women are opting to work in
the home not as homemakers— but as job-making entrepreneurs.
2. ENTREPRENEURSHIP
2.1. Meaning
The origin of the basic word “Entrepreneurship” is from a French word
“Entreprendre”, where it cradled and originally meant to designate an
organizer of certain musical or other entertainments. The Oxford English
Dictionary defines the term “Entrepreneur” in similar way as the director or
a manager of a public musical institution, one who gets-up entertainment
arranged, especially musical performance. Initially in the early 16 th century,
it was applied to those who were engaged in military expeditions. In 17th
century, it was extended to cover civil engineering activities such as
construction and fortification. Cantillon (1959) was probably the first to
introduce the term entrepreneur and applied it to the individuals engaged in
production of goods for the market place.
2.2. Entrepreneur: used in various ways
Since then, the term “Entrepreneur” is used in various ways and various
views. These views are broadly classified into three groups namely - Risk-
Bearer, Organizer and Innovator. Thus, a person who assumes and bears all
types of risks involved in an enterprise, who organizes the various inputs or
factors of production and who innovates news ideas, concepts, strategies and
methodology in business from time to time is known as Entrepreneur
(Deshpande and Sethi, 2009).
2.3. Entrepreneurship: New Status of women

Entrepreneurship refers to the act of setting up a new business or reviving an

existing business so as to take advantages from new opportunities. Thus,
entrepreneurs shape the economy by creating new wealth and new jobs and
by inventing new products and services. Many studies reveals that it is not
about making money, having the greatest ideas, knowing the best sales pitch,
applying the best marketing strategy. It is in reality an attitude to create
something new and an activity which creates value in the entire social eco-
system. The status of women in India has been changing due to growing
industrialization, globalization and social legislation. With the spread of
education and awareness, women have shifted from kitchen to higher level
of professional activities.

Entrepreneurship has been a male-dominated phenomenon from the very

early age, but time has changed the situation and brought women as today's
most memorable and inspirational entrepreneurs. In almost all the developed
countries in the world women are putting their steps at par with the men in
the field of business. The role of Women entrepreneur in economic
development is inevitable. There role is also being recognized and steps are
being taken to promote women entrepreneurship (Vijayakumar and
Jayachitra, 2013).

3. WOMEN ENTREPRENEURSHIP
The women have achieved immense development in their state of mind.
With increase in dependency on service sector, many entrepreneurial
opportunities especially for women have been created where they can excel
their skills with maintaining balance in their life. Accordingly, during the
last two decades, increasing numbers of Indian women have entered the field
of entrepreneurship and also they are gradually changing the face of business
of today, both literally and figuratively. Women Entrepreneurs may be
defined as the woman or group of women who initiate, organize and co-
operate a business enterprise. Government of India has defined women
entrepreneurs as an enterprise owned and controlled by a woman having a
minimum financial interest of 51% of the capital and giving at least 51% of
employment generated in the enterprise to women.
A woman or a group of women manages the whole business of enterprise.
She prepares various plans and executes them under her own supervision
and control. There may be some persons to help her but ultimate control lies
with the woman. A woman entrepreneur takes calculated risk. She faces
uncertainty confidently and assumes risk.
3.1. Women Entrepreneurship: Spreading their wings
With the spread of education and new awareness, women entrepreneurs are
spreading their wings to higher levels of the 3-E’s (engineering, electronics
and energy) (Singh, 1992). A comprehensive study (Anonymous, 1990) of
business women in the capital and its outskirts showed that 40 percent of the
entrepreneurs have non-technical as far as their own qualification goes
business such as electronics, engineering, chemicals, auto parts of the
country, although, their number is very less yet are growing very fast in
almost every kind of specializations i.e., T.V., Wines, Cosmetics, Leather,
Non-conventional energy sources, etc.
3.2. Role of Women Entrepreneurs
The role of women entrepreneurs in the process of economic development
has been recognized form nineties in various parts of the world. Today, in
the world of business, women entrepreneurship has become an essential
movement in many countries and has been accepted in all areas of working.
The United Nations report has also concluded that economic development is
closely related to the advancement of women. In nations where women have
advanced, economic growth has usually been steady. By contrast, in
countries where women have been restricted, the economy has been
stagnant.
‘Women Entrepreneur’ is a person who accepts challenging role to meet her
personal needs and become economically independent. A strong desire to do
something positive is an inbuilt quality of entrepreneurial women, who is
capable of contributing values in both family and social life.
4. PROSPECTS OF WOMEN ENTREPRENEURS
In recent time, women entrepreneurs are rising enormously. The emergence
as well as development of women entrepreneurs is quite visible in India and
their over-all contribution to Indian economy is also very significant. The
occupational structure and the enterprises are undergoing a drastic change.
New types of enterprises are created, and there are new requirements as
regards the organization of work, qualifications and management. Several of
the initiatives are especially useful for women entrepreneurs’ improvement
of the entrepreneurial culture, regional contact points and entrepreneur
networks as well as more ready access to financing, especially to small
loans. These initiatives are to be further adjusted to appeal to women
entrepreneurs. All this is providing immense confidence in the women
entrepreneurs and enabling them to exercise their skills, risk, taking abilities,
uncertainty bearing attitude while working in an enterprise. Women
entrepreneurs also want more appreciation of their idea on the part of the
banks. Many say, however, that they themselves must also be better at
selling their idea. More-over with increasing government and non-
government and other financial institutions assistance for various women
entrepreneurs within the economy there can be significant increase brought
about in the growth of women entrepreneurship process.
Most of the respondents state that prospect in service sector is higher. 21
percent of women entrepreneurs are involved in their own business, where
as 79 percent of women entrepreneurs are involved in service. It means that
majority (79 %) of women entrepreneurs respondents indicating there is high
prospects to women in service sector. Within the service sector, majority (43
%) of women entrepreneurs agreed that there is prospect in
corporate/Industries, equal respondents (i.e. 20 %) states that IT and bank
have also prospects. Only 17% women entrepreneurs indicate prospects in
media/film industries (Parmar, 2012).
5. OPPORTUNITIES OF WOMEN ENTREPRENEURS
Self determination, expectation for recognition, self esteem and career goal
are the key drivers for taking up entrepreneurship by women (Moore &
Buttner, 1997). Sometimes, women chose such career path for discovering
their inner potential, caliber in order to achieve self satisfaction. It can also
provide a mean to make best use of their leisure hours.
5.1. Role of Government to Develop Women Entrepreneurs by different
Five Year Plan
Development of women has been a policy objective of the government since
independence. Until the 70s the concept of women‘s development was
mainly welfare oriented. In 1970s, there was a shift from welfare approach
to development approach that recognized the mutually reinforcing nature of
the process of development. Women were given priorities in all the sectors
including SSI sector. Government and non government bodies have paid
increasing attention to women‘s economic contribution through self
employment and industrial ventures.
5.1.1. The First Five-Year Plan (1951-56)
It envisaged a number of welfare measures for women. Establishment of the
Central Social Welfare Board, organization of Mahila Mandals and the
Community Development Programmes were a few steps in this direction.
5.1.2. The Second Five-Year Plan (1956-61)
In the second Five-Year Plan, the empowerment of women was closely
linked with the overall approach of intensive agricultural development
programmes.
5.1.3. The Third & Fourth Five-Year Plan (1961-66 & 1969-74)
The Third and Fourth Five-Year Plans (1961-66 and 1969-74) supported
female education as a major welfare measure.
5.1.4. The Fifth Five-Year Plan (1974-79)
The Fifth Five-Year Plan (1974-79) emphasized training of women, who
were in need of income and protection. This plan coincided with
International Women‘s Decade and the submission of Report of the
Committee on the Status of Women in India. In1976, Women‘s welfare and
Development Bureau was set up under the Ministry of Social Welfare.
5.1.5. The Sixth Five-Year Plan (1980-85)
From the Sixth Five-Year plan onwards that women secured a special niche
and space in the national plans and planning process primarily with thrusts
on health, education and employment. The Sixth Five-Year Plan (1980-85)
saw a definite shift from welfare to development.
5.1.6. The Seventh Five-Year Plan (1985-90)
The Seventh Five-Year Plan (1985-90) emphasized the need for gender
equality and empowerment. For the first time, emphasis was placed upon
qualitative aspects such as inculcation of confidence, generation of
awareness with regards to rights and training in skills for better employment.
5.1.7. The Eighth Five-Year Plan (1992-97)
A paradigm shift occurred in the Eighth Plan where ‘empowerment’ of
women was recognized and accepted as a distinct strategy. The Eight Five-
Year Plan (1992-97) focused on empowering women, especially at the Gross
Roots Level, through Panchayati Raj Institutions.
5.1.8. The Ninth Five-Year Plan (1997-2002)
A further impetus for sectoral contribution to women’s programmes was
received with the introduction of the concept of Women’s Component Plan
in the Ninth Plan whereby identified ministries were required to indicate the
flow of funds to the women’s programmes and schemes. The Ninth Five-
Year Plan (1997-2002) adopted a strategy of Women‘s Component Plan,
under which not less than 30 percent of funds/ benefits were earmarked for
women related sectors.
5.1.9. The Tenth Five-Year Plan (2002-2007)
The Tenth Five-Year Plan (2002-07) aims at empowering women through
translating the recently adopted National Policy for Empowerment of
Women (2001) into action and ensuring Survival, Protection and
Development of women and children through rights based approach. In the
tenth Plan, for the first time, monitorable targets were set for a few key
indicators of human development, which include reduction in gender gaps in
literacy, wage rates and reduction in MMR.
5.1.10. The Eleventh Five-Year Plan (2007-2012)
The Eleventh Plan seeks to reduce disparities across regions and
communities by ensuring access to basic physical infrastructure as well as
health and educational services to all, recognize gender as a cross - cutting
theme across all sectors and commits to respect and promote the rights of the
common person.
5.2. Various Schemes for Women Entrepreneurs
In order to encourage more and more women enterprises in the MSE sector,
several schemes have been formulated by this Ministry and some more are
in the process of being finalized, targeted only at the development of women
enterprises in India. The following is a brief notes on some of the important
schemes that are made specifically for women or give special benefits to
women.
5.2.1. Trade related entrepreneurship assistance and development
scheme for women (TREAD)
With a view to encourage women in setting up their own ventures,
government launched a Scheme, namely, Trade Related Entrepreneurship
Assistance and Development
(TREAD) during the 11th Plan. There are three major components of the
scheme;
a) Govt. of India grant up to 30% of the total project cost to the Non-
Government Organizations (NGOs) for promoting entrepreneurship among
women. The remaining 70% of the project cost is financed by the lending
agency as loan for undertaking activities as envisaged in the project.
b) Govt. of India grants up to Rs.1 lakh per programme to training
institutions / NGOs for imparting training to the women entrepreneurs.
c) Need-based Govt. of India grants up to Rs.5 lakh to National
Entrepreneurship Development Institutions and any other institutions of
repute for undertaking field surveys, research studies, evaluation studies,
designing of training modules etc.
5.2.2. Micro & small enterprises cluster development programme
(MSE-CDP)
a) To support sustainability and growth of MSEs by addressing common
issues such as improvement of technology, skills and quality, market access,
access to capital, etc.
b) For enhancing competitiveness of the MSE units to ensure self
sustainability, growth & employment generation
c) To build capacity of MSEs for common supportive action through self
help group, consortia, etc.
d) To create/upgrade infrastructural facilities in the new/existing industrial
areas/ clusters of MSEs.
e) To set up common facility centers (for testing, training centre, raw
material depot, effluent treatment, etc).
5.2.3. Credit guarantee fund scheme
The Government introduced the Credit Guarantee Fund Scheme for Small
Industries in May, 2000 with the objective of making available credit to SSI
units, particularly tiny units, for loans up to Rs. 25 lakh without collateral/
third party guarantees. The Scheme is being operated by the Credit
Guarantee Fund Trust for Small Industries (CGTSI) set up jointly by the
Government of India and SIDBI. The Scheme provides for collateral free
credit facility (term loan and / or working capital) extended by eligible
lending institutions to new and existing SSI units/ Small Scale Service and
Business (industry related) Enterprises (SSSBEs) including Information
Technology and Software Industry up to Rs. 25 lakh per borrowing unit. In
the case of women enterprises, the guarantee cover is up to 80% of the credit
subject to maximum guarantee limit of Rs. 20 lakh.
5.2.4. Support for entrepreneurial and managerial development
a) The Scheme provides early stage funding for nurturing innovative
business ideas (new indigenous technology, processes, products, procedure
etc.) which could be commercialized in a year.

b) The main objective is to promote development of knowledge-based

innovative ventures and to improve the competitiveness and survival
instincts of the Micro, Small and Medium Enterprises (MSMEs). Such
entrepreneurial innovative ideas are sought to be developed in reputed
Technical Management institutions before these can become commercially
viable and attract venture capital.

c) The idea is primarily for sustaining, at some basic or introductory level,

the incubation of ideas that would have otherwise been lost for want of
support. The expectations are that a sizeable percentage of the
grantees/incubates would be graduating to higher levels of operation that
would then require other form of support under other schemes/organizations
including from Venture Capital or Angel Funding.

5.2.5. Exhibitions for women under promotional package for micro &
small enterprises approved by CCEA under marketing support
DC (MSME) has formulated a scheme for women entrepreneurs to
encourage Small & Micro manufacturing units owned by women in their
efforts at tapping and developing overseas markets, to increase participation
of representatives of small/micro manufacturing enterprises under SIDO
stall at International Trade Fairs/Exhibitions, to enhance export from such
units. Under this scheme participation of women entrepreneurs in 25
international exhibitions is envisaged during the 11th Plan.
5.2.6. Swayamsidha
Swayamsidha is an integrated scheme for women’s empowerment through
formation of women into Self-Help Groups (SHGs). The scheme was
launched in February 2001 across the States and Union Territories of the
country with a total budget outlay of Rs. 116.30 crore. The long-term
objective of the programme is holistic empowerment of women through a
sustained process of mobilization and convergence of all the on-going
sectoral programmes by improving access of women to micro credit,
economic resources etc. The programme is being implemented in 650 blocks
in the country including 238 Indira Mahila Yojana (IMY) blocks, covering
335 districts. Each block consists of 100 Self Help Groups. The programme
is being implemented in many States through ICDS infrastructure; while in
some States, the scheme is implemented through State Women’s
Development Corporations.
7. CONCLUSION
Entrepreneurship is presently the most discussed and encouraged concept all
over the world to overcome economic challenges. Women being the vital
role of the overall population have great capacity and potential to be the
contributor in the overall economic development of any nation. It can be said
that today we are in a better position wherein women participation in the
field of entrepreneurship is increasing at a considerable rate. Efforts are
being taken at the economy as brought promise of equality of opportunity in
all spheres to the Indian women and laws guaranteed equal rights of
participation in political process and equal opportunities and rights in
education and employment were enacted. But unfortunately, the government
sponsored development activities have benefited only a small section of
women i.e. the urban middle class women. At this stage, effective steps are
needed to provide entrepreneurial awareness, orientation and skill
development programs to women. The role of Women entrepreneur in
economic development is also being recognized and steps are being taken to
promote women entrepreneurship.
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Eds. and trans, Henry Higgs, Frank Can and Co, London.

Cohoon, J, McGrath, Wadhwa, Vivek & Mitchell L. 2010. The Anatomy of

an Entrepreneur- Are Successful Women Entrepreneurs Different From
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Deshpande, S.; Sethi, S. (2009), Women Entrepreneurship in India, Shodh,

Samiksha aur Mulyankan - An International Research Journal, Vol. II,
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