TiE Stree Shakti GEM Study 2006

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GEM Study conducted that led to the genesis of TiE Stree Shakti

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TiE Stree Shakti GEM Study 2006

  1. 1. Project GEM An overview November 2006
  2. 2. Study objective <ul><li>To help in the advocacy programme for women entrepreneurs, TiE needed the following: </li></ul><ul><li>To understand the specific systemic challenges faced by women entrepreneurs </li></ul><ul><ul><li>at various points in their evolution, especially at start up. </li></ul></ul><ul><li>Support needed to scale up further. </li></ul><ul><li>Successful policy or systemic advocacy could make a big difference to their business. </li></ul>
  3. 3. The spirit of Enterprise Three segments, possibly stages of enterprise 1. Untapped 2. Grassroots 3. Mid-rung <ul><li>Women in middle class households who had thought of setting up an enterprise </li></ul><ul><li>Taken a few steps forward, faltered, given up </li></ul><ul><li>Most would be interested in picking up the idea again, if helped </li></ul><ul><li>Women from similar households who did set up an enterprise </li></ul><ul><li>Earn up to 5 lakhs a year today from it </li></ul><ul><li>And gain self respect and self confidence </li></ul><ul><li>Need help to think of scaling up and then help for scaling up </li></ul><ul><li>A different profile, SEC A </li></ul><ul><li>Benefit of education and a comfortable life </li></ul><ul><li>Combination of drive, interest and opportunity </li></ul><ul><li>Often glided into business, not struggled </li></ul><ul><li>Would like to grow but the fire is missing </li></ul>Stage 1 can grow to Stage 2 with help, but 2 to 3 might be difficult
  4. 4. Segment 1 - Untapped <ul><li>Random sampling of 1202 households in SECs B,C and D revealed that 31% (377 women) had tried to set up an enterprise </li></ul><ul><ul><li>Thought of (in varying degrees) the field in which they wanted to operate, the finances needed, the method, the market, etc. </li></ul></ul><ul><ul><li>Each one of them had had to give up the idea for lack of support – financial and/or domestic. </li></ul></ul><ul><ul><li>Of these 377 women, 297 would still be interested in setting up an enterprise’ </li></ul></ul><ul><li>Thus, 25% of women in the middle class have the interest and the drive to have moved towards setting up an enterprise and still want to. </li></ul>
  5. 5. Segment 1 - Untapped <ul><li>In just these 6 cities, there are 3 lakh potential women entrepreneurs waiting for support and opportunity. </li></ul><ul><li>These women typically have school education up to the 10 th standard, but less than 20% would have been to college. </li></ul><ul><li>Married almost immediately afterwards, three-fourths of them had children in school or college today. </li></ul><ul><ul><li>Not a single woman had a school-age child who was not in school </li></ul></ul><ul><ul><li>They want to ensure that their children have a real chance! </li></ul></ul><ul><li>Their husbands were </li></ul><ul><ul><li>Skilled workers (carpenters, electricians, machine operators) (30%) </li></ul></ul><ul><ul><li>Employed with some firm or the government in a clerical position (20%) </li></ul></ul><ul><ul><li>Shop owners and traders (30%) </li></ul></ul>
  6. 6. Segment 1 - Untapped <ul><li>These women would typically have strong aspirations </li></ul><ul><ul><li>Having come from homes that afforded them school education, they want better for their children. </li></ul></ul><ul><ul><li>Having earning husbands, they want to bring in something more that will ensure their children’s future </li></ul></ul><ul><li>78% of these women would be interested in taking up the idea of their own enterprise again </li></ul><ul><ul><li>To help family financially </li></ul></ul><ul><ul><li>To secure the future of their children </li></ul></ul><ul><li>Of the help needed </li></ul><ul><ul><li>83% of the requests would be for financial support </li></ul></ul><ul><ul><li>90% would be for training and guidance </li></ul></ul><ul><ul><li>67% would want help and support from the family </li></ul></ul><ul><ul><ul><li>Or just absence of objection, or even fewer social pressures </li></ul></ul></ul><ul><ul><li>54% would need some space from where to operate </li></ul></ul>
  7. 7. Segment 1 - Untapped <ul><li>Their aspirations were strongly in the field of garments </li></ul><ul><ul><li>Tailoring, embroidery, supplying against orders from ready made garment stores. </li></ul></ul><ul><ul><ul><li>This could be where they see the opportunity, maybe by observation of word of mouth </li></ul></ul></ul><ul><ul><ul><li>And believe that their skills and confidence would match up. </li></ul></ul></ul><ul><ul><li>Suggestions about cooking classes or beauty classes did not find much interest </li></ul></ul><ul><ul><ul><li>Possibly do not believe they know enough to teach </li></ul></ul></ul><ul><ul><li>Current aspirations are in line with limited exposure and confidence </li></ul></ul><ul><ul><ul><li>If given information about other opportunities and if given training, their horizons could widen. </li></ul></ul></ul>
  8. 8. Segment 2 - Grassroots <ul><li>60 women entrepreneurs from SECs B, C, D interviewed. </li></ul><ul><li>A wide range of enterprises covered. </li></ul><ul><ul><li>Tailoring/ garment boutiques </li></ul></ul><ul><ul><li>Coaching classes </li></ul></ul><ul><ul><li>Beauty parlours </li></ul></ul><ul><ul><li>General stores </li></ul></ul><ul><ul><li>Embroidery shops </li></ul></ul><ul><ul><li>Catering or tiffin suppliers </li></ul></ul><ul><li>Her profile is similar to the ones seen earlier </li></ul><ul><ul><li>Had been to school, been married early, had children who were in school /college, lived in a nuclear family but felt the pressure of the larger family, and of having to perform her traditional role in that context. </li></ul></ul><ul><ul><li>She probably lived in a one BHK house, or in a chawl but maintained a clean house and dressed neatly. Her home management would be thrifty but based on good value for money. </li></ul></ul>
  9. 9. Segment 2 - Grassroots <ul><li>What made a difference was: </li></ul><ul><ul><li>Having the drive to do something more </li></ul></ul><ul><ul><ul><li>Supported by others who expressed faith in their abilities and pushed them along – friends, family </li></ul></ul></ul><ul><ul><ul><li>Inspired by other women who seemed to be successful </li></ul></ul></ul><ul><ul><li>Circumstances that forced them to bring in an income </li></ul></ul><ul><ul><ul><li>Usually an unhappy incident that left them with no choice </li></ul></ul></ul><ul><ul><ul><li>The need for flexibility to continue domestic responsibilities and absence of qualifications made a job a non-option </li></ul></ul></ul><ul><ul><li>Self recognition of skills and interest </li></ul></ul><ul><ul><ul><li>Had inspired those forced by circumstances </li></ul></ul></ul><ul><ul><ul><li>Had given others confidence to change their circumstances </li></ul></ul></ul><ul><ul><ul><ul><li>Threw up oppressive jobs to strike out on their own </li></ul></ul></ul></ul>
  10. 10. Segment 2 - Grassroots <ul><li>Choice of business was guided by </li></ul><ul><ul><li>Their own interest based on known skills or training </li></ul></ul><ul><ul><li>Confidence in their ‘guide’, they adopted the guide’s field of work </li></ul></ul><ul><li>While most rated their business success and future prospects as ‘very good’ to ‘okay’, </li></ul><ul><li>There were problems </li></ul><ul><ul><ul><li>Not able to find committed and dependable people </li></ul></ul></ul><ul><ul><ul><li>Inexperience </li></ul></ul></ul><ul><ul><ul><li>Lack of finances </li></ul></ul></ul><ul><ul><li>All these had made it a rough or at least a bumpy ride </li></ul></ul><ul><li>Government policies did not impact them as such </li></ul><ul><ul><li>Business records usually not formally maintained, scribbles, back of envelope calculations </li></ul></ul><ul><ul><li>Government could mainly help them by providing good infrastructure – electricity, water, absence of bribes, etc. </li></ul></ul>
  11. 11. Segment 2 - Grassroots <ul><li>Would want to expand sales, bring in more orders </li></ul><ul><ul><li>The drive was there, but unrelenting, multiple responsibilities made them wary of taking on too much </li></ul></ul><ul><li>Yet, if they could get support </li></ul><ul><ul><li>Financial </li></ul></ul><ul><ul><li>Managerial – help with systems and processes </li></ul></ul><ul><ul><li>Formal training in their line of work </li></ul></ul><ul><ul><li>Better technology and infrastructure </li></ul></ul><ul><ul><li>And family support and encouragement </li></ul></ul><ul><li>They would be keen to grow their business and increase their earnings! </li></ul>
  12. 12. Segment 3 – Mid-rung <ul><li>16 women entrepreneurs who had taken bank loans </li></ul><ul><li>Almost all were from SEC A, almost all had graduate or post graduate degrees, were married and had school going children </li></ul><ul><li>Their enterprises were: </li></ul><ul><ul><li>Garment boutiques, export of furnishings, catering, poultry farms, plant nursery, dealers in flowers, manufacturer of labels for industry, etc. </li></ul></ul><ul><li>Annual turnover in the range of half a crore to 5 crores </li></ul><ul><li>Most employed 10 to 50 people </li></ul><ul><li>This would be the woman who would drive her own car, ensure that her children go to the best schools, travel abroad, eat out, have a good life. </li></ul>
  13. 13. Segment 3 – Mid-rung <ul><li>What made her set up an enterprise: </li></ul><ul><ul><li>The major factor was a drive to do something more </li></ul></ul><ul><ul><ul><li>Supported by others who expressed faith in their abilities and pushed them along – friends, acquaintances, family </li></ul></ul></ul><ul><ul><li>To a lesser extent, negative circumstances had played a role </li></ul></ul><ul><ul><ul><li>Husband’s accident or ill health had forced one in eight to take over their husband’s work </li></ul></ul></ul><ul><ul><ul><li>Other were cheated, forced into a corner, left with no choice </li></ul></ul></ul><ul><ul><li>But a larger mention was of positive circumstances </li></ul></ul><ul><ul><ul><li>The right social circle, contacts, word of mouth, serendipity. </li></ul></ul></ul><ul><ul><ul><li>Hearing of an opportunity, getting the support and backing from friends or family </li></ul></ul></ul>
  14. 14. Segment 3 – Mid-rung <ul><li>Most rated their business success and future prospects as ‘excellent’ to ‘very good’. </li></ul><ul><li>Most sounded extremely pleased that they had their own business to run and that it was doing so well </li></ul><ul><li>There were problems </li></ul><ul><ul><li>Not able to find committed and dependable people </li></ul></ul><ul><ul><li>Not getting time with the family, esp. when work involved travel </li></ul></ul><ul><li>About one in four worried about financial matters </li></ul><ul><ul><li>But not getting or losing good people was a bigger worry </li></ul></ul><ul><li>But on the whole, 60% said that the going had been mostly smooth </li></ul><ul><ul><li>76% could not mention any government policy that interfered with their business </li></ul></ul>
  15. 15. Segment 3 – Mid-rung <ul><li>Yet, there was no strong desire to grow </li></ul><ul><ul><li>The hunger seemed to be missing </li></ul></ul><ul><ul><li>The current level of business was sufficient </li></ul></ul><ul><ul><ul><li>To bring in good money </li></ul></ul></ul><ul><ul><ul><li>Keep them busy and give them the thrill of having an enterprise to run </li></ul></ul></ul><ul><ul><ul><li>Expansion would move them out of their comfort zone </li></ul></ul></ul><ul><ul><ul><ul><li>And there was no burning need or ambition </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Spare time to spend at home, on leisure or with children seemed more attractive. </li></ul></ul></ul></ul>

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