Chapter V ROLE OF RIICO AND RFC IN THE PROMOTION OF WOMEN ENTREPRENEURSHIP IN RAJASTHAN

Transcription

1 Chapter V ROLE OF RIICO AND RFC IN THE PROMOTION OF WOMEN ENTREPRENEURSHIP IN RAJASTHAN (i) INTRODUCTION Emancipation of women has been talked of, moving out of the purdah systems and going in for higher education were and are some indicators of them being emancipated, but the emergence of women on the economic scene as entrepreneurs can be heralded as a significant development in their emancipation and securing for themselves a secure place in society which they long deserved. In the present times, they are increasingly becoming conscious of their existence, their rights to work and to lead a respectable life. Today women entrepreneurs represent a group of women who have broken away from the beaten tracks and are exploring new avenues of economic participation. 1 Earlier, marriage was the only career for most women. When they did come out, it was in areas such as teaching, office work, nursing, and medicine, if we take the selfemployed women they consisted of only five percent. The majority of the self-employed women were engaged in the unorganized sector, such as handicrafts, handloom and cottage based Industries. The eighth-five year plan had given impetus to the development of the small-scale sector. The numbers of small-scale units were expected to increase from one and a half million to two and half million during the period of which nine percent would be women. This trend augurs well for women, because this indicates that by the turn of the century women s participation would increase by twenty percent in the small-scale units 2. An ideal climate has been launched for the Indian women entrepreneurs, to exhibit their talents; it is for the government to take up the responsibility to improve a lot of women in economic life and to prepare them to participate in industrial estates as entrepreneurs, which the Indian women must be ready to reach out for new jobs, new responsibilities and new experiences. Promotion of women entrepreneurs needs a prolonged approach. They should come out of their traditional occupation to accept more challenging activities. Simultaneously, an environment should be created to enable their participation. This can be done by motivating

2 them, and get funding agencies to finance them through financial institutions and banks, which should be on priority basis and concessional terms, the elaborate procedure of licensing and government sanctions associated with the establishment of a new business enterprise should be dispensed with, in the case of application received from women entrepreneurs. In recent years, the problems of women in economic field received a lot of attention at the national as well as international level. The United Nations declared the period as the Decade for Women. Role of women in industrialization in Developing Countries held at Vienna from the 6 th to 10 th November 1978, identified several constraints that stood in the way of women and also the effective participation of women in the industrialization of developing countries. In India, several institutional arrangements have been made to protect and develop women entrepreneurship. The nationalized banks and state financial corporations advance loans to women entrepreneurs on preferential basis. State Industrial Development Corporations and district centers provide loans, subsidies and grants to small-scale women entrepreneurs. State level agencies assist women entrepreneurs. India has been developing fast, but not always equitably or inclusively. Our development model is very much a work in progress and deep-rooted challenges remain. Across the world, educating and empowering women has proven time and again to be the catalyst for rapid socio-economic growth. Conversely, societies where women are repressed are among the most backward. India seems to be somewhere in-between. Women in India make up 7.5% of the world s total population. While certain development indicators show their quality of life is improving maternal mortality rates declining; literacy rates increasing; more women gaining access to healthcare and education the pace of change is heartbreakingly slow. India ranks 113 out of 135 on the World Economic Forum s Gender Gap Index. According to India s 2011 census, the sex ratio for children under six was 914 females to 1,000 males, a disturbing decline from 927 in The ranking of Indian women in economic empowerment is 0.3, where 1.0 means equality. This is a dangerous state of affairs for any society. Denying women opportunities to realize their potential is a waste of human capital and bar to economic progress. Women are undoubtedly the foundation of the basic unit of society the family. Even in traditional roles they demonstrate great innovation, skills, intelligence, hard work and commitment. If we can harness these attributes effectively, India s growth can be more inclusive and equitable. The

3 education of women is therefore the key. But in a country where nearly 70% of the population lives in rural areas, access to educational opportunities is limited. Moreover, poverty puts the girl child at a greater disadvantage. Added to this, the social attitude towards women, and it is obvious that we need a multi-pronged approach if we are to achieve education for women worldwide. This is where technology or E-education can help. E-infrastructure can deliver relevant education to both sexes in an efficient and equitable manner, enabling our youth to leapfrog into the Internet age. When we educate and empower one woman, we set off a chain reaction that transforms the life of her family and the community she lives in. An exemplary model is the network of trained Accredited Social Health Activists (ASHA), created under the National Rural Health Mission, who has played a crucial role in improving the health of women and children across India. Vocational training is equally important to women s economic independence. The inspirational efforts of the Self-Employed Women s Association, founded by Ela Bhatt, and other successful self-help groups, have sowed the spirit of entrepreneurship in hundreds of women. SEWA s women members are trailblazers, redefining themselves as they add value to their families and the nation. This kind of female empowerment can transform India. Societal perception towards females and their role are often the biggest barriers to change, because they shape women s perception of themselves. Across all strata of Indian society, people still believe that women are capable of performing only certain types of jobs and that marriage must take precedence over career. This mind-set, common to both men and women, must change. We must focus on the girl child and help her escape the traditional stereotypes that stifles her potential. Take women in science as an example. The prejudice is that women are less capable of understanding science, despite all the evidence to the contrary. In preparing project reports, purchasing machinery, hiring of buildings and training the staff. Several voluntary agencies like FICCI ladies, National Alliance of Young Entrepreneurs (NAYE). In the state of Rajasthan, it s the RIICO and the RFC that have helped the women of this state. The emergence of women on the economic scene as entrepreneurs is a significant development in the emancipation of women and securing them a place in society, which they deserved. The hidden entrepreneurial potential of women has gradually been changing with the growing sensitivity to the role and economic status in society, the recent trend shows that

4 women are now becoming conscious of their existence, their rights and the work situation which women from the middle class are not prepared for; such a change, as they feel that it will have a backlash on them. Today women entrepreneurs represent a group of women who have broken away from the beaten track and are exploring new avenues of economic participation. Recently, the trend has changed where women are contributing to the role as entrepreneurs in the economic development of the country. Today we find women in various fields like engineering, electronics, readymade garments, fabrics, edibles, handicrafts, soft toys, textile and now pharmaceuticals. These are urban educated women, sometimes they have specialized skills and are equipping themselves with some training and financial support. Though women entrepreneurship development programmes have been recognized as human resources development too, many a times there are many expectations from a single programme, like removing employment, promoting small scale industries, developing industrially undeveloped regions. Some recent researches have indicated that several women are now becoming entrepreneurs especially the middle class women due to pull and push of traditional and changing values 3. Under the pull factors, the women entrepreneurs choose a profession as a new challenge, as an adventure with an urge to do something new and to have an independent occupation. Under the push factors women take up business as entrepreneurs to get over financial difficulties when responsibility is thrust on them due to family circumstances. As per Indian census report, 1991, women as a separate target group, account for 48.1% of country's total population. They are regarded as the better half of the society. But their representation in gainful employment is comparatively low. In most of the developing countries like India, women were mostly confined to the four walls of the houses performing household activities. Very few were getting the opportunity to come out of the four walls and enter economic activities. (ii) CONCEPT OF WOMEN ENTREPRENEURS As is already pointed out in the preceding paragraphs, women entrepreneur is relatively a new concept. Conceptually, whether men entrepreneur or women entrepreneur, these are not two drastically different concepts from each other. Origin of both the concepts are from the basic concept of "Entrepreneur." When the enterprise is initiated, organized and

5 controlled by a man, the person referred is man entrepreneur and when the enterprise is initiated, organized and controlled by woman, the person referred is woman entrepreneur. Different individuals/experts defined women entrepreneurs in their own ways. Some of the definitions of women entrepreneurs are given below. According to Harbision, F (1956) "Any woman or group of women which innovates, initiates or adapts an economic activity may be called women entrepreneur." 4 According to National level standing committee on women entrepreneurship. Government of India, 1991, "an enterprise owned and controlled by a woman having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to women" 5. The above definition is subject to criticism by women themselves on the ground that employing more than 50% women workers in the enterprises owned and run by the women is discriminatory and not in tune with practical realities. In nutshell, women entrepreneurs are those women who think of a business, initiate, own, organize, operate, employ women and undertake risks (in various terms such a time, money), involved in running a business and takes it to a height. Women owned businesses are highly increasing in the economics of almost all countries. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in society, skills, knowledge and adaptability in business are the main reasons for women to emerge in business ventures. Woman entrepreneur is a person who accepts challenging roles to meet her personal needs and become economically independent. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who are capable of contributing values in both family and social life. With the coming of media, women have now become aware of their traits, rights and also the work situation. The myth of the glass ceiling is now shattered and today women have broken barriers, and are found indulged in every field of business from papad making to electronics. The challenges and opportunities provided to women of digital era are growing rapidly and jobs seekers are now turning out to be job creators, they are flourishing as designers, interior decorators, architects, exporters, publishers, garment manufacturers and are still exploring for new avenues of economic participation. In India, although women constitute the majority of the total population, the entrepreneurial world is still male dominated one.

6 Coming to women in Rajasthan, first and foremost it must be mentioned that Rajasthan fifty years ago was a very backward State. Till the early sixties free education was given to women so that they could be educated and come to educational institution. The only public school was M.G.D. where only the girls from royal families came to be educated, which was initially a complete residential school. Even the principal was an English lady who gave education on the western pattern; the teachers were mostly residential who were given residence along with their meals. The staff were basically English speaking; in a word most of them being Anglo Indians who could communicate well in English. The same pattern was for the hostel matrons. It would not be an exaggeration to say that the entire system was on the western pattern, which suited the girls from those families. This institution did not cater to the general masses. Another school was run by the mission sisters of Ajmer, which catered to the middle class section, but for the girls, here also, there was a school bus, which brought the girls from their house and back. Two or three government schools were opened, which saw that girls were brought by tongas and that too with a purdah system and the girls were motivated to study. For higher education Maharanis college was started and till the early 60 s, women now came out for education not only to schools but also to colleges. The early seventies saw girls in the field of medicine and engineering too. Women in Rajasthan now came to know about education; in fact their parents too realized that they needed to educate their daughters and give them a new plank in life be it medicine engineering or even business administration. The early women in politics were Sumitra Singh and little later came Gauri Punia. After these two ladies, the 80's and nineties saw a number of entrants into politics.

7 Chart 5.1 Conceptual Model of women Entrepreneurs (iii) CATEGORIES OF WOMEN ENTREPRENEURS Women in organized & unorganized sector Women in traditional & modern industries Women in urban & rural areas Women in large scale and small scale industries. Single women and joint venture. a) First Category Established in big cities Having higher level of technical & professional qualifications Non traditional items Sound financial positions

8 b) Second Category Established in cities and towns Having sufficient education Both traditional and non-traditional items Undertaking women services-kindergarten, crèches, beauty parlors, health clinic etc. c) Third Category Illiterate women Financially weak Involved in family business such as Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Agro, Forestry, Handloom, Power loom etc. (iv) MEN AND WOMEN ENTREPRENEURS: A COMPARATIVE STUDY If we carryout an in-depth analysis of men and women entrepreneurs, we will find that in spite of many similarities, there are some dis-similarities also. Similarities are stated in Exhibit 5.1and dissimilarities are stated in Exhibit 5.2 SI. No. Table 5.1 Similarities in Men and Women Entrepreneurs Characteristics Women Entrepreneur Men Entrepreneur 1 Work Desire to work Desire to work 2 Role Will to play a lead role Will to play a lead role 3 Source of Motivation Achievement of goals and money 4. Personality Objective confidence full of energy Achievement of goals and money Objective confidence full of energy SOURCE : Mayoux, Linde (2001) "Jobs, Gender and small enterprises" Table numbers 5.1 in similarities shows that both men and women have a desire to work will to play a lead role in their business. They also wants to achieve their goals and earn money. Finally their objectives is to have confidence and work with energy Table 5.2

9 Dis-similarities in Men and Women Entrepreneurs SI. No. Characteristics Women Entrepreneur Men Entrepreneur 1 Employment background House wife Experience of the work field 2 Source of finance Personal and family/ individual/ joint loan 3 Source of motivation Will for independence and flexibility in work schedule 4 Reason of entrepreneurship Involves herself in useful work, not getting regular employment, no promotion avenues Personal savings/ bank loan Will to fast increase the self image Tension at work place. Grabbing to opportunity 5 Innovativeness Realistic Innovativeness Ideal innovativeness 6 Associate group Intimate friends, husband family, women and organization, wife, family business and organization 7 Personality Flexible, tolerance, moderate self confidence, moderately active Relatively rigid, high self confidence, active SOURCE : Mayoux, Linde (2001) "Jobs, Gender and small enterprises" Table number 5.2 in dissimilarities shows that women are housewives in comparison to the men because they are first and foremost home makers. Woman are less independent in comparison to men. Women are having much realistic approach whereas men have ideal innovations. if we talk about the personality of man they are rigid, extreme self confidence and active in comparison to women. Table 5.3 Percentage Shares of Informal and Formal Sector Workers among Men and Women,

10 Men Women Persons Sl. Industry group Informal Formal Total Informal Formal Total Informal Formal No. sector sector sector sector sector sector Total 1. Agriculture Manufacturing Trade Education Private households & ETOs Construction Hotels & restaurants Health services Public administration & Defense 10. Real estate, renting & Business services Banking & financial Intermediation Electricity, gas & Water Source: ILO Sub regional Office for South Asia, New Delhi G. Raveendran 2010 ILO Asia - Pacific Working paper Series Table number 5.3 indicates that in construction, health services, real estate and banking and finance, men have an edge over Women in formal and informal sector. where as in the sector of agriculture, manufacturing, education, private house hold and hotel and restaurant women have an edge over the men. (v) THE SCOPE OF ENTREPRENEURSHIP AMONG WOMEN Although many women have advanced in economic structures, for the majority of women, particularly those who face additional barriers, continuing obstacles have hindered their ability to achieve economic autonomy and to ensure sustainable livelihoods for themselves an their dependents. Women are active in a variety of economic areas, which they often combine, ranging from wage labor, subsistence farming and fishing to the informal sector. However, legal and customary barriers to ownership of or access to land, natural resources, capital, credit, technology and other means of production, as well as wage differentials, contribute to impeding the economic progress of women. Women's contribution to development is seriously underestimated and thus their social recognition is limited. The full visibility of the type, extent and distribution of this unremunerated work will also contribute to a better sharing of responsibilities between women and men. Lack of employment in the

11 private sector and reductions in public services and public service jobs have affected women disproportionately. In some countries, women take on more unpaid work, such as the care of children and those who are ill or elderly, compensating for lost household income, particularly when public services are not available. In many cases, employment creation strategies have not paid sufficient attention to occupations and sectors where women predominate; nor have they adequately promoted the access of women to those occupations and sectors that are traditionally male dominated. (vi) HOW TO DEVELOP WOMEN ENTREPRENEURS? Right efforts on from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Following efforts can be taken into account for effective development of women entrepreneurs. a. Consider women as specific target group for all developmental programmes. b. Better educational facilities and schemes should be extended to women folk on government s part. c. Adequate training programmes on management skills to be provided to women community. d. Encourage women's participation in decision-making. e. Vocational training to be extended to women community that enables them to understand the production process and production management. f. Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops. g. Training on professional competence and leadership skills to be extended to women entrepreneurs. h. Training and counseling on a large scale of existing women entrepreneurs to remove psychological causes like lack of self-confidence and fear of success. i. Counseling through the aid of committed NGOs, psychologists, managerial experts and technical personnel should be provided to existing and emerging women entrepreneurs.

12 j. Continuous monitoring and improvement of training programmes. k. Activities in which women are trained should focus on their marketability and profitability. l. Making provision of marketing and sales assistance from government part. m. To encourage more passive women entrepreneurs the Women training programme should be organized that teaches them to recognize their own psychological needs and express them. n. State finance corporations and financing institutions should permit by statute to extend purely trade related finance to women entrepreneurs. o. Women's development corporations have to gain access to open-ended financing. p. The financial institutions should provide more working capital assistance both for small scale ventures as well as large scale ventures. q. Making provisions of micro credit system and enterprise credit system to the women entrepreneurs at local level. r. Repeated gender sensitization programmes should be held to train financers to treat women with dignity and respect as persons in their own right. s. Infrastructure, in the form of industrial plots and sheds, to set up industries is to be provided by state run agencies. t. Industrial estates could also provide marketing outlets for the display and sale of products made by women. u. A Women Entrepreneur's Guidance Cell set up to handle the various problems of women entrepreneurs all over the state. v. District Industries Centers and Single Window Agencies should make use of assisting women in their trade and business guidance. w. Programmes for encouraging entrepreneurship among women are to be extended at local level.

13 x. Training in entrepreneurial attitudes should start at the high school level through welldesigned courses, which build confidence through behavioral games. y. More governmental schemes to motivate women entrepreneurs to engage in smallscale and large-scale business ventures. z. Involvement of Non Governmental Organizations in women entrepreneurial training programmes and counseling. (vii) DEVELOPMENT OF WOMEN ENTREPRENEURSHIP IN INDIA Women entrepreneurship development is an essential part of human resource development. The development of women entrepreneurship is very low in India, especially in the rural areas. Entrepreneurship amongst women has been a recent concern. Women have become aware of their existence their rights and their work situation. However, women of middle class are not too eager to alter their role in fear of social backlash. The progress is more visible among upper class families in urban cities. This chapter focuses on women entrepreneurs. Any understanding of Indian women, of their identity, and especially of their role taking and breaking new paths, will be incomplete without a walk down the corridors of Indian history where women have lived and internalized various role models, the status of women entrepreneurs and the problems faced by them when they ventured out to carve their own niche in the competitive world of business environment. Since the times of yore, the role of woman in Indian society is known to be that of a homemaker. Her confinement to her homestead certified her character and morality. The status of women has undergone a windfall change from what it was in the Vedic age to till the era of globalization. No nation, other than India has held its women in higher esteem than the Hindus. In the Vedic era, women were not incarcerated to the precincts of the house. They were free to attend fairs, festivals and assemblies. They also possessed outstanding academic outfit. In the post Vedic period, the reins were pulled in, and woman started to lose her status in society, which she had attained in the Vedic age. She was meant to be protected by the men - her father, brother and husband. She acquired new identity after marriage. During the Moghul rule, the socio economic status of women deteriorated a lot. Purdah system, child marriage and other social evils, which were detrimental to the social status of women, came

14 into force. During the British rule in India, legislations were enforced to modify the structure of society. Reforms were initiated for the upliftment of women. In continuation with this, post independence, at least legally, men and women are considered to be equal. But in reality, the situation is something different. Outside the educated elite and often within it, girls are considered as economic liability because of the tradition that requires a girl s parents to provide her with a dowry at the time of her marriage. The Indian constitution aimed at attainment of equal status for women in every sphere of life. Women constitute nearly half of the total population in India and are regarded as better half of the society. But for centuries, women were confounded to the four walls of the houses doing household work at home. Marriage was considered as the only career for most women. Their main work was to nourish family and upkeep the values of the society. Though in Hindu scriptures woman had been regarded as "Devi" Laxmi or Grah Laxmi, an embodiment of Shakti (Durga) but in real Life, she was treated as Abla (weak), passive, dependent. Since old age women have been victims of social prejudices and discrimination. Women were taught to depend upon others, to limit their ambitions and to avoid exposure and risk. Those days society was predominantly a male dominated society. It is with these reasons that women work force in industry was negligible and their contribution towards economy was almost, zero. But with the change of time, particularly after independence there was the recognition of women power. Women started realizing their own strengths and demanded their participation in various walks of life. They have started taking up careers in selected professions such as education, nursing medicine and office work and thus, contributing in economic activities. But the concept of women entrepreneur had still not emerged. Women were mostly confined to the activities contributing in other person's (mostly male) industrial set up. Social development has to be construed along with the economic development and individual development. Social development is perceived as a subsystem of Human Resource Development on a national level. Social and economic development go hand in hand, and this in turn, leads to sustainable development.. For the development of society, it is necessary to develop the women folk. The advancement of a fraction of Indian women has resulted in remarkable positive changes in the economic condition of our country, and if there is an overall development of the women lot, then the positive changes will definitely magnify.

15 Under the seventh five-year plan ( ), a separate chapter characterizing integration of women in development was included. It was suggested in this plan that to boost Indian economy, women should also be promoted to take up economic activities and contribute their might in this endeavor. Some of the salient feature of this plan was: (a) (b) (c) To include women as specific target groups in the total development process. To plan diversity, and conduct vocational training programmes suitable to the needs of the women. To provide marketing assistance for their products. (d) To involve women folk in decision making process. 6 Not only in the five-year plan. In industrial policy of Government of India also, the emphasis was placed for preparing women for taking up initiative in starting small-scale industries. It was also emphasized to train this group by conducting special entrepreneurship programmes. The Government of India was so concerned with this sector that in 1981, the 1st National conference of Women Entrepreneurs was organized in New Delhi, which besides calling for urgent attention to allocate land, sheds, also suggested speedy sanction of power and license to run the industry for this sector. The second International conference of women entrepreneurs organized in 1989 in New Delhi. It adopted a declaration. Some of the salient points of this declaration were. a. Promotion of women's involvement in economic development programmes. b. Provide necessary infra-structural support, training and marketing facilities. c. Help them removing hurdles by enacting legislation. d. Products manufactured by women entrepreneurs be widely displayed in trades and fairs. (viii) ROLE OF WOMEN ENTREPRENEURS IN INDIAN ECONOMY The Indian economy has been witnessing a drastic change since mid -1991, with new policies of economic liberalization, globalization and privatization initiated by the Indian government. India has great entrepreneurial potential. At present, women involvement in

16 economic activities is marked by a low work participation rate, excessive concentration in the unorganized sector and employment in less skilled jobs. Any strategy aimed at economic development will be lop-sided without involving women who constitute half of the world population. Evidence has unequivocally established that entrepreneurial spirit is not a male prerogative. Women entrepreneurship has gained momentum in the last three decades with the increase in the number of women enterprises and their substantive contribution to economic growth. The industrial performance of Asia-Pacific region propelled by Foreign Direct Investment, technological innovations and manufactured exports has brought a wide range of economic and social opportunities to women entrepreneurs. In this dynamic world, women entrepreneurs are an important part of the global quest for sustained economic development and social progress. In India, though women have played a key role in the society, their entrepreneurial ability has not been properly tapped due to the lower status of women in the society. It is only from the Fifth Five Year Plan ( ) onwards that their role has been explicitly recognized with a marked shift in the approach from women welfare to women development and empowerment. The development of women entrepreneurship has become an important aspect of our plan priorities. Several policies and programmes are being implemented for the development of women entrepreneurship in India. There is a need for changing the mindset towards women so as to give equal rights as enshrined in the constitution. The progress towards gender equality is slow and is partly due to the failure to attach money to policy commitments. In the words of president APJ Abdul Kalam "empowering women is a prerequisite for creating a good nation, when women are empowered, society with stability is assured. Empowerment of women is essential as their thoughts and their value systems lead to the development of a good family, good society and ultimately a good nation." 7 When a woman is empowered it does not mean that another individual becomes powerless or is having less power. On the contrary, if a women is empowered her competencies towards decision- making will surely influence her family's behavior. In advanced countries, there is a phenomenon of increase in the number of self- employed women after the world war second. In USA, women own 25% of all business, even though their sales on an average are less than two-fifths of those of other small business. In

17 Canada, women own one-third of small business and in France it is one-fifth. Women entrepreneurship has been recognised as an important source of economic growth. Women entrepreneurs create new jobs for themselves and others and also provide society with different solutions to management, organisation and business problems. However, they still represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based barriers to starting and growing their businesses, like discriminatory property, matrimonial and inheritance laws and/or cultural practices; lack of access to formal finance mechanisms; limited mobility and access to information and networks, etc. Women s entrepreneurship can make a particularly strong contribution to the economic well-being of the family and communities, poverty reduction and women s empowerment, thus contributing to the Millennium Development Goals (MDGs). Thus, governments across the world as well as various developmental organizations are actively undertaking promotion of women entrepreneurs through various schemes, incentives and promotional measures. (ix) CURRENT STATUS OF WOMEN IN THE JOB SECTOR According to 2011 census women constitute 48.46% of the country s population of million (Census of India, 2011). 8 They comprise of 96% of the workforce in the unorganized sector in the country i.e., in fields, construction and other such sectors (Padma, 2004). On the contrary, in the organized sector, the proportion of women stands at 15%. In the civil services the number of women has raised from 311 in 1985 to 501 in Women opt mainly for the diplomatic services or district administration. Only 3.47% of women join the police force (Census of India, 2011, a). GDP RATE & WOMEN S CONTRIBUTION India s Gross Domestic Product (GDP) is $3.548 trillion in 2009 (Manorama Year Book, 2011). From 2004 till 2010 India s average quarterly GDP growth was 8.40% (www. tradingeconomics.com, 2011). The per capita GDP is one of the measure to ascertain the contribution made by each individual of India towards GDP. According to sources, the per capita GDP now stands at $3,400 (World fact book, 2010). According to a study Foresight 2020 conducted by Economist Intelligence Unit (EIU), and sponsored by Cisco systems, India is projected to contribute 12.2% to global economic growth by The growth in

18 women s employment has been higher as compared to men in India during Studies indicate that 34.45% of rural women worked compared to only 20% of urban women. The vast difference occurs in the category of self employed, where 32% of rural women work, and compared to just 11% of urban women. Bridging this gap will gramatically. 9 Increase India s GDP. According to UNDP report released on the occasion of international women s day on March 08, 2010, if more women work, India s GDP will raise by 4%. It can make Indians 5% richer than otherwise projected by 2015 and 12% richer by With the changing times and globalization, employability has seen an increasing trend. Owing to the inherent nature of woman which identifies with empathy and benevolence combined with strong determination and sharp business acumen, many firms have had significant success with a woman on the decision making chair. Women have proved to be good team leaders. Indra Nooyi s climb to the top of Fortune s 2007 list of powerful women exemplifies this. The success of brand name firms with women as chief executives has been impressive. Findings indicate that the Fortune 500 companies with the highest percentages of women corporate officers yielded on an average 35.1% higher return on equity than those with the lower percentages(catalyst, 2004) 10. It is generally perceived that women executives at the top inculcate a sense of balance, intelligence, higher emotional quotient and respect to the management team. They tend to bring in team spirit and compassion in the workplace. But in India, this trend has not caught its top gear yet. In Indian corporate sector, women comprise of 2% of the total managerial strength (Saini, 2006). The kinds of Kiran Mazumdar Shaw, Naina Lal Kidwai, Sullajja Firodia Motwani, Vidya Chhabria and Indra Nooyi, who dare to change the rules of the game, are gradually paving their success path nudging aside the obstacles. The Women s Empowerment Principles launched in March 2010 by the UN Global Compact and UNIFEM. Subtitled Equality Means Business, offer guidance to companies on how to empower women in the work place, market place, and community and emphasize (x) PROMOTIONAL EFFORTS SUPPORTING WOMEN ENTREPRENEURS IN INDIA a) Women's entrepreneurship is a relatively new concept in India. The concern to develop more women entrepreneurs emerges from the fact that women represent the fact that women represent 50 per cent of world population, but receive only 10

19 per cent of the world income and less than 1 per cent of the world's assets. yet, research has shown that 'women entrepreneurs are no different from men in terms of their personality cognition, achievement motivation, dependency and other related attitudes. b) Efforts have been made by various governmental and non-governmental agencies all over the world to promote women entrepreneurs. The results are somewhat encouraging. c) Entrepreneurship development in India has received much attention during the last few years. Several policies, programmes, procedures and institutions have been formulated to support development of entrepreneurship among women in India. We discuss below these promotional procedures in brief and their implication for women entrepreneurs: Chart 5.2 Women's Entrepreneurship Promotional Measures Promotional Efforts Policy framework Programmes supporting Institutional support to supporting women women entrepreneurship women entrepreneurs entrepreneurs (xi) OPPORTUNITIES FOR WOMEN ENTREPRENEURS With increased awareness and globalization, there is constant increase in women entrepreneurs. A survey conducted for women entrepreneurs reveals that most of women entrepreneurs are still involved with the food industries at small-scale level. Today majority of women are having small business of Papad, Acchar, Stitching etc., which appears to be an extension of food industry started through kitchens. Gradually with the spread of education and training and having more awareness in variety of fields, women are showing keen interest in the field of technology, energy related industries. But the numbers of such women entrepreneurs are negligible. The situation in metro cities is different. A survey conducted around Delhi clearly revealed that about 40% of women entrepreneurs are having non-traditional enterprise fields such as electronics, engineering,

20 consultancy etc. In a state like Kerala where women literacy is very high, women are also opening up enterprises is non-traditional areas. (xii) GOVERNMENT SCHEMES FOR WOMEN ENTREPRENEURS According to the Third All India Census of Small Scale Industries conducted in and subsequent estimates made, only 10.11% of the Micro and Small Enterprises in India are owned by women while 9.46% of the MSE enterprises are managed by women. 11 Currently ( ) their estimated number is lakh women managed enterprise and lakh women managed enterprise. 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. There are number of schemes launched by Government from time to time for the promotion of women entrepreneurs in India. In some schemes, there are provisions for women whereas some are exclusively for women. Few are: a) Integrated Rural Development programme (IRDP) b) Training of Rural Youths for Self employment Mission (TRYSEM) c) National Bank for Agriculture and Rural Development (NABARD) d) State Bank of India's Stree Shakti Yogana (SSY) e) Women Development Cooperation Schemes (WDCS) f) Indira Mahila Kendra g) Rashtriya Mahila Kosh h) Indira Priyadarshni Yogana i) Mahila Udhyam Nidhi and Mahila Vikas Nidhi j) Working women forum k) Trade related entrepreneurship assistance and development scheme for women (tread) With a view to encourage women in setting up their own ventures, government implements a Scheme, namely, Trade Related Entrepreneurship Assistance and Development (TREAD) during the 11th Plan. The scheme envisages economic empowerment of women through the development of their entrepreneurial skills in nonfarm activities. There are three major components of the scheme. Government of India grants up to 30% of the total project cost to

21 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. Government of India grants up to Rs.1 lakh per programme to training institutions /NGOs for imparting training to the women entrepreneurs, subject to these institutions/ngos bring their share to the extent of minimum 25% of GOI grant and 10% in case of NER. (iii) Need-based Government 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. The scheme envisages that Women Associations/NGOs/SHGs should prepare composite bankable proposals for a group of women entrepreneurs, and submit to the office of the DC (MSME) for forwarding to the Banks for their appraisal. Bank examines the proposal and issues approval. 30% of the loan amount is sanctioned as grant and made available to the bank by office of DC (MSME) for further disbursement to NGOs.

22 (xiii) WOMEN ENTREPRENEUR ASSOCIATIONS IN INDIA a. Consortium of Women Entrepreneurs(CWEI) b. Association of Lady Entrepreneurs of Andhra Pradesh c. Association of Women Entrepreneurs of Karnataka (AWAKE) d. Self-Employed Women's Association (SEWA) e. Women Entrepreneurs Promotion Association (WEPA) f. The Marketing Organisation of Women Enterprises (MOOWES) g. Bihar Mahila Udyog Sangh Bihar Mahila Udyog Sangh h. Mahakaushal Association of Woman Entrepreneurs (MAWE) i. SAARC Chamber Women Entrepreneurship Council j. Women Entrepreneurs Association of Tamil Nadu (WEAT) k. TiE Stree Shakti (TSS) l. Women Empowerment Corporation (xiv) ROLE OF RIICO & RFC IN PROMOTION OF WOMEN ENTREPRENEURSHIP For woman entrepreneurs the RIICO and RFC has proved a boon, since the last two years RIICO has given 25% discount to women on land, earlier it was only 10%. This clearly indicates that RIICO is interested that more women some into the field of business, in a word giving women a boost. The RFC has given a 2% rebate to all women entrepreneurs on an loan amount of rupees five lakhs. This lead start gives women entrepreneurs a chance to start a business, at least they are not entangled by money lenders, which in turn allows them to make the best of the loan given to them. If the same amount is taken from some other source, women entrepreneurs will find it difficult to repay their loan. The major role of RIICO includes the following:

23 a) Providing with loans facility : Under the re-finance scheme provided by the Industrial Development Bank of India, the RIICO extends term loans to every industrial unit up to a maximum limit of R.2.5 crores. b) Contribution in share capital of companies: The RIICO provides economic assistance to companies by contributing to the share capital. Every year, it purchases shares worth crores of rupees. c) Interest free loans: The RIICO provides interest free loans to industrial units to meet their sales-tax liability. d) Extends loan facility in association with RFC : In association with Rajasthan Finance Corporation (RFC), the RIICO extends loan facility to industrial units. Sometimes it associates with commercial banks also in disbursement of loans. e) Distribution of capital investment grants for setting up new units: On behalf of the State Government, the corporation distributes capital investment grants to entrepreneurs who intend to set up new industrial units. f) Providing with seed capital: Seed capital is provided to experienced entrepreneurs to set up industrial units in the State. There is a limit of Rs.15 Lakhs in the case of providing seed capital. g) Promotion of industrial enterprises: The Corporation promotes industrial enterprises in association with private entrepreneurs. Such enterprises are known as joint sector enterprises or enterprises promoted with State assistance. Every year the Corporation promotes a good number of enterprises. h) Software Zone: A software premises was developed with the Cooperation of Rajasthan Electronics and Instrumentation Limited. It is proposed to set up a gold jewellery zone and an export promotion zone for handicrafts and garments, near Sanganer airport in the near future. i) Campaigning towards industrial development: The Business Promotion Unit of Corporation, in association with the RFC and Directorate of Industries, has initiated a campaign for industrial development in the state. This has motivated the original residents of Rajasthan and Non-Resident Indians to set up industries in Rajasthan.

24 j) Providing with technical and managerial services: The RIICO provides technical and managerial services to entrepreneurs wherever necessary. Such services include: providing with technical information relating to project to be set up, brief outline of the projects, project reports about technical and economical viability, marketing research report, financial and managerial consultancy etc. This way it extends various kind of technical assistance to entrepreneurs in setting up new industries in the State. k) Merchant banking services: The RIICO acts as merchant banker on the basis of approval granted by Security and Exchange Board of India (SEBI). It acts in different capacities as Issue Manager, Consultant, Underwriter and Advisor to companies that subscribe capital from the public, through the issue of shares and debentures. l) Rehabilitation of sick units: The RIICO, in association with the RFC, take steps for rehabilitation of sick industrial units. It also operates special plants of rehabilitation in association with the Industrial Reconstruction Bank of India. m) Special concessions to entrepreneurs in allotment of lands: The RIICO offers concessions to special category of entrepreneurs in the allotment of land. The concessions are granted in the following ways: (i) 50% concession to SC/ST category of entrepreneurs, subject to a maximum of 4000 square meters of land. (ii) (iii) (iv) (v) 15% concession to handicapped category, subject to a maximum of 2000 square meters of land. 10% concession to women entrepreneurs subject to a maximum of 2000 sq. meters of land. 20% concession to those who set up industries in the field of electronics, subject to a maximum of 2000 square meters of land. 25% concession to widows of defense personal, subject to a maximum of 2000 square meters of land. n) Industrial Area and Other Scheme: Till March-end 2010, as many as 284 industrial areas have been developed by RIICO. During , some new industrial estates were developed and other existing industrial areas were expanded further. Special

25 attention has been given to strengthen the infrastructure facilities in industrial areas like Bhiwadi; Neemrana, Lalsot, Phulera, Shahpura, Malviya Nagar, Sitapura, Bindayaka (Jaipur) etc. in the recent past. Neemarana, which is located on National Highway No. 8, is being developed as a show-window of Rajasthan. Social infrastructure facilities are being developed in all the potential industrial areas. Growth-centres are being developed at Abu Road, Bikaner, Jhalawar and Dholpur at present. During , development work of growth centre at Hamirgarh, Bhilwara was also undertaken. Four districts, viz., Sirohi, Barmer, Churu and Jaisalmer have been declared as No Industry Districts (NIDs). Their development work is in progress. Export Promotion Industrial Park (EPIP) has been developed at Abu Road, Bikaner, Jhalawar and Dholpur at present. During , development work of growth centre at Hamirgarh, Bhilwara was also undertaken. Four districts, viz., Sirohi, Barmer, Churu and Jaisalmer have been declared as No Industry Districts (NIDs). Their development work is in progress. Export Promotion Industrial Park (EPIP) has been developed at Sitapura, South of Jaipur near the Sanganer airport. The second EPIP is being developed at Boranada (Jodhpur). As indicated earlier the corporation is developing through REIL a Software Technology Park at Kanakpura, Jaipur. An Electronic Hardware Pard at Kukas (Jaipur) and Gold Jewellery Complex at Sitapura (Jaipur) are also being established. RIICO has initiated a new scheme of Udyog Shri, the objective of which is to attract professionals who posses knowledge and experience and entrepreneurial ability to participate in the process of industrial development through their own ventures. RIICO would provide equity participation in the share capital of these projects, which would be thrust areas of high returns. The aforesaid discussion indicates that RIICO is playing the role of a catalytic for industrial development by developing infrastructural facilities an industrial areas, by providing financial assistance, specially in the form of term-loans; by trying to attract investors through industrial campaigns and by preparing project-profiles and reports. Rajasthan is on the threshold of a turn around in industrial development and all efforts are made to expedite the process of infrastructural development as a precondition for further growth in future. Problems of power, water and transport and communications must be attended to in right earnest and as speedily as possible. There must be genuine efforts towards industrial liberalization.