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:
1. 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
To 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.