Women Entrepreneurs in India: a Gender Issue

Who is a women entrepreneur ? 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. Business from Pappad to Power cables

 a) Lack of confidence: strength and competence-this situation is changing - b) Socio-cultural barriers : personal obligations c) Market-oriented risks Stiff competition d) Motivational factors: Self motivation e)Knowledge in Business Administration: f) Awareness about the financial assistance g) Exposed to the training programs h) Identifying the available resources

Constraints Indian women Entrepreneurs are facing

Empowering Women Entrepreneurs

Training programs, Newsletters, Mentoring, Trade fairs and Exhibitions .

Gender issues are in relation to the business achievements

1. Women have a preference for less risk business which are less challenging Men go for all types of business. Men are known to get involved in tough businesses exploring other things wrestling for their leisure time while their female counterparts go for easy activities.

Boys are brought up knowing that they are cut for the challenging careers soldiers, pilots scientists while the Girls are given the notion that they must always be neat and clean thus they opt for career prospects that can enable them to be ladish .

Opportunities and challenges for women in business

Reversal of traditional attitudes than the mere creation of jobs for women . Programme should go beyond subsidies and credit allocation to attitudinal changes, group formation, training and other support services. Training in entrepreneurial attitudes should start at the high school level-- build confidence. Training in Skills

Production
Year Total MSME(in lac) 67.87 101.01 118.59 261.01 Fixed Invst.Cr. 93555 146845 178699 500758 Production at current prices. Cr. 78802 261287 429796 709038 Employmen t (Lac person ) 158.34 238.73 282.57 594.61 Export Cr.

90-91 20-01 2004-05 2006-07

9664 69797 124417. 182538

2007-08

272.79

558190

790759

626.34

202017

2008-09

285.16

621753

880805

659.35

Comparative Growth Rate

Yr. 02-03 03-04 Growth Rate Of MSME 8.68 9.64 Overall Industrial Sector. 5.70 6.90 Contri.to GDP 5.91 5.79

04-05
05-06 06-07 07-08

10.88
12.32 12.60 13.00

8.40
11.5 11.5 8.00

5.84
5.83 7.44 8.00

1.Employment
SSI Sector in India creates largest employment opportunities, next only to Agriculture. It has been estimated that 100,000 rupees of investment in fixed assets in the small-scale sector generates employment for four persons. Small scale firms use labour-intensive techniques For every worker employed in large scale industries about three workers are engaged in small scale and cottage industries. Provide employment to agriculturists who remain idle during a part of the year.

Generation of Employment - Industry Group-wise

Food products industry has ranked first -0.48 million persons (13.1%). The next two industry groups Non-metallic mineral products with employment of 0.45 million persons (12.2%) and Metal products with 0.37 million persons (10.2%). In Chemicals & chemical products, Machinery parts except Electrical parts, Wood products, Basic Metal Industries, Paper products & printing, Hosiery & garments, Repair services and Rubber & plastic products, the contribution ranged from 9% to 5%, the total contribution by these eight industry groups being 49%.

Per unit employment

Per unit employment was the highest (20) in units engaged in beverages, tobacco & tobacco products mainly due to the high employment potential of this industry particularly in Maharashtra, Andhra Pradesh, Rajasthan, Assam and Tamil Nadu. Next came Cotton textile products (17), Non-metallic mineral products (14.1), Basic metal industries (13.6) and Electrical machinery and parts (11.2.) The lowest figure of 2.4 was in Repair services line. Per unit employment was the highest (10) in metropolitan areas and lowest (5) in rural areas.

2.Balanced Regional Development

By providing employment in rural areas they help to check migration and overcrowding in urban areas. Improves the standard of living of people in backward regions. Decentralized development contributes to the process of self-sustained growth and avoids concentration of industries in particular areas.

Location-wise Employment Distribution

- Rural: Non-metallic products contributed 22.7% Food Products accounted for 21.1%, Wood Products and Chemicals and chemical products shared between them 17.5%. Urban Food Products and Metal Products almost equally shared 22.8% of employment. Machinery parts except electrical, Non-metallic mineral products, and Chemicals & chemical products between them accounted for 26.2% of employment. In metropolitan areas the leading industries were Metal products, Machinery and parts except electrical and Paper products & printing (total share being 33.6%).

State-wise Employment Distribution

Tamil Nadu (14.5%) made the maximum contribution to employment. This was followed by Maharashtra (9.7%), Uttar Pradesh (9.5%) and West Bengal (8.5%) the total share being 27.7%. Gujarat (7.6%), Andhra Pradesh (7.5%), Karnataka (6.7%) and Punjab (5.6%) together accounted for another 27.4%.

Per unit employment

17, 16 and 14 respectively - in Nagaland, Sikkim and Dadra & Nagar Haveli. It was 12 in Maharashtra, Tripura and Delhi. Madhya Pradesh had the lowest figure of 2. In all other cases it was around the average of 6.

3.Optimization of Capital
The Annual Surveys of industries reveal that fixed capital per employee in case of small scale industry was Rs. 3,706 as compared to Rs. 27,757 in case of large scale industry. They provide quick returns after their establishment on account of short gestation period. In India where the rate of capital formation is low, small scale industries are very suitable.

4.Mobilization of Local Resources

It facilitate mobilization and utilization of local resources and family skills which might otherwise remain talent or utilized. Small business promotes a new cadre of small entrepreneurs and self-employed and encourages local talent. The growth of small enterprises helps in tapping talent resources like entrepreneurial skills and small savings specially in rural areas. Small business helps to protect technical skills and handicrafts.

5.Egalitarian Society
Reduce concentration of economic power in a few hands. They promote a more equitable distribution of national income and wealth. Benefits of small scale firms are derived by a wider population. A large part of the earnings is distributed among workers

6.Feeder to Large industries

Is complementary to the large scale industries. Small scale industries manufacture various types of components, spare parts, tools and accessories which are required by the large scale sector.

7.Social Advantage
Offer opportunity for an independent way of life to people with small means. They offer savings in social overheads like education, housing and medical facilities by taking industry nearer to the people. They help to raise per capita income an standard of living in the country. A system of widely diffused ownership permits wider participation of people in the process of economic development. Base for democracy, socialism and self-government.

8.Export
45%-50% by SSI Sector. Direct exports 35% of total exports. & 15% to exports indirectly. This takes place through merchant exporters, trading houses and export houses. They may also be in the form of export orders from large units or the production of parts and components for use for finished exportable goods.

 Mostly fuelled by the performance of garments, leather and gems and jewellery units from this sector. The product groups where the SSI sector dominates in exports, are sports goods, readymade garments, woollen garments and knitwear, plastic products, processed food and leather products.

Opportunity
The opportunities in the small-scale sector are enormous due to the following factors: Less Capital Intensive Extensive Promotion & Support by Government Reservation for Exclusive Manufacture by small scale sector Project Profiles Funding - Finance & Subsidies Machinery Procurement Raw Material Procurement Manpower Training Technical & Managerial skills Tooling & Testing support Reservation for Exclusive Purchase by Government Export Promotion Growth in demand in the domestic market size due to overall economic growth Increasing Export Potential for Indian products Growth in Requirements for ancillary units due to the increase in number of greenfield units coming up in the large scale sector.

Types of Organisation
Proprietary-90.30% Partnership-3.85% Pvt.Co.-2.69 % Pub.Ltd.Co.- 0.53% C0-Op -0.30% Other -2.27%

Nature of Activity
Mfg/ Assebling / Processing 66.67 % Repair & Maintanenence -16.33 % Services 17.00%

Types of Management Ownership

Number of Enterprise Managed by : 1.Male _ 86.17

Female 13.83.

Product of MSME.
Others-36% Rubber & Plastic-6% Elec.& Mac -6% Metal Products -8% Basic Metal ind.1O% Chemical -12% Food -22 %

Role of Small Buisness in Economic Devlopment.

MSMEs have been accepted as the engine of economic growth and for promoting equitable development. 45 % of Mfg. output. 40% of Total Exports. 66 million people employed . 13 million units 6000 products mfg by them.

Role of Small Buisness in Economic Devlopment.

Classification Micro Mfg.Ent. Rs.25.0Lac Service Ent. Rs.10.0Lac

Small Medium

Rs.5.0Cr Rs.10.0Cr.

Rs.2.0.Cr. Rs.5 .Ocr.s

What is Micro / Small / Medium Enterprise. Based on invt.in plant , machineary ( for mfg ent .)& on equipment for enterprise providing or rendering services.

 Village Ind: Any industry located in rural india, which produces any good or services with or w/o use of power & in which fixed capital invt.does not exceed Rs.One Lac.

How People Become Enterpreneur.

By necessity / oppourtunity/ design/ default. Triggered by social disruption or interruption Ent.created in good & bad times. Achievment & Financial Rewards.

Personality of Enterpreneur.
Some Qualities ; .Clear Strategy .Technical Knowledge .Ethical Behavior .Flexibility .Robust Network .Realistic View .Passion .Leadership .Competitiveness .Good Physical Strength .Creative .High level of Energy. .Versatile.

Characteristics
Ability to deal with series of tough issues Ability to create solutions & work to perfect them Can handle many task simultaneously Resilience in face of set back. Willingness to work hard & not expect easy solutions. Ability to acquire & learn necessary skills for the task at hand. Possess problem solving skills.