Socio-Economic Conditions of Women Entrepreneurs in India -----With reference to Visakhapatnam City
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1 Socio-Economic Conditions of Women Entrepreneurs in India -----With reference to Visakhapatnam City A.Lavanya Kumari Asst.Professor, Dept of Economics, Adikavi Nannaya University Dr. B.Mohan Rao Post Doctoral Fellow, Dept of Human Rights and Duties, Dr. B. R. Ambedkar College of Law ABSTRACT Women recently started playing a vital role in international business. The role of women worldwide is undergoing a dramatic change. Women owned businesses are highly increasing in the economies 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 the society. Women entrepreneurs have been proliferating in all segments of the economy in Canada, Great Britain, Germany Australia and US. Women constitute almost half of the total population of world. Similarly in India also women constitute fifty percent of the total population. Women entrepreneurs may be defined as a woman or a group of women who initiate, organize and run a business enterprise. In terms of Schunpeterian concept of innovative entrepreneurs, women who innovate, initiate or adopt a business activity are called business entrepreneur. The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is defined 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 the employment generated in the enterprise to a woman.the role of women in economic activities varies from country to country. This can happen only when women are recognised as agents of socio-economic growth with autonomy of decision-making and also when the rights of women and children are recognised, respected and upheld. Key Words: Women Entrepreneur, Socio-Economic Conditions, Economic Development, Motivational factors, 89
2 Introduction Women recently started playing a vital role in international business. The role of women worldwide is undergoing a dramatic change. Women owned businesses are highly increasing in the economies 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 the society. Women entrepreneurs have been proliferating in all segments of the economy in Canada, Great Britain, Germany Australia and US. Women constitute almost half of the total population of world. Similarly in India also women constitute fifty percent of the total population. Women entrepreneurs may be defined as a woman or a group of women who initiate, organize and run a business enterprise. In terms of Schunpeterian concept of innovative entrepreneurs, women who innovate, initiate or adopt a business activity are called business entrepreneur. The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is defined 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 the employment generated in the enterprise to a woman.the role of women in economic activities varies from country to country. This can happen only when women are recognised as agents of socio-economic growth with autonomy of decision-making and also when the rights of women and children are recognised, respected and upheld. Women entrepreneur has been recognized during the last decade as an important untapped source of economic growth. Women entrepreneurs creates new jobs for themselves and others and by being different also wage society with different solutions to management, organization and business problems as well as to the exploitation of women Entrepreneurial opportunities. What man can do women can do better. A women entrepreneur depicts the balance between home and office done very effortlessly. She has to up fronted with social economical problems. It is estimated that women entrepreneurs presently comprise about 10 per cent of the total number of entrepreneurs in India, with the percentage growing every year. If the prevailing trends continue, it is likely that in another five years, women will comprise 20 per cent of the entrepreneurial force. With corporate eager to associate and work with women owned business, and a host of banks and non- governmental organizations keen to help them going, there has rarely been a better time for women with zeal and creativity to start their own business. Literature Review; S.Bharghav (2004) observed in his study that poverty and illiteracy are the basic reasons of low rate of women entrepreneurship in our country. Nancy M.Carter (2006) suggests that the women s business can make momentous contribution to the economy. Amarnth (1996) has described the consequences of middle class women taking up economically roles. 90
3 Objectives of the Study: The present study aims at examining the position of women Entrepreneurship in India and exploring the present state of women entrepreneur in Visakhapatnam city. For this purpose following objectives have been outlined. 1. To study the present position of women Entrepreneurship in India. 2. To know the socio- economic background of women entrepreneurs in VSP city. 3. To trace out the expectations of women entrepreneurs from the society. Scope of the Study: The study primarily aims at analyzing the development of women entrepreneurs. However, the study is confined to only small scale women entrepreneurs located in Visakhapatnam city. The study is mainly related to women entrepreneurs. Methodology and Sample Design: The study has been designed under the frame work of both the primary and secondary source. Secondary data was collected from the reputed Published Sources like Economic Survey, various books and websites on Internet. The name and address of women entrepreneur are collected from register of Labour Office of Visakhapatnam. Other information has been collected through an interview and which are collected by randomly selected sample of 50 women entrepreneurs through personal interview method. In order to get the inferences the data was analyzed with the help of statistical techniques like percentage, averages and ranking method. Meaning and Definition: Women entrepreneur is a person who accepts challenging role to meet her personal need and become economically independent. There are economical, social, religious, cultural and other factors existing in the society which responsible for the emergency of the entrepreneurs. Women entrepreneur refers equally to someone who has started a one women business to someone who is a principal in family business or partnership or to someone who is shareholder in a public company which she runs. The Government of India has defined a women entrepreneur is an enterprise owned and controlled by a women having a minimum financial interest of 51 % of the capital and giving at least 51 % of the employment generated in the enterprise to women. Women Entrepreneurship Development in India: This study shows that the position of women work participation as well as women entrepreneurship both is low in India in comparison to selected countries of the World. Women work participation in India is presented in Table 1. 91
4 Table 1.1 Women Work Participation Country Percentage India ( ) 14.2 India ( ) 19.7 India ( ) 22.3 India ( ) 31.6 USA 45 UK 43 Canada 42 Indonesia 40 France 38 Sri lanka 35 Brazil 35 Source; World Bank Report The above Table 1.1 shows that in , women work pain India is 31.6 % where as in USA it is 45%, UK 43%, Canada 42%, Indonesia 40%, France 38%, Sri Lanka and Brizil both 35 %. From the above table analysis it can be concluded that India has got the lowest development of women entrepreneurship in the selected leading countries. Table 1.2 discloses the data regarding women entrepreneurship development in terms of total number of units registered, number of women entrepreneurs and their percentage in select leading state in India. 92
5 Table 1.2. Women Entrepreneurship in India State No.of Units No.of Women Percentage Tamil Nadu Uttar Pradesh Kerala Punjab Maharastra Gujarat Karnataka Madhya Pradesh Bihar Other States & UTS Total 64,796 19, Source: Centre for Monitoring Indian Economy (CMIE) Report clear from the above analysis that women The above Table 1.2 shows that UP has got the highest percentage of in number of women entrepreneurs followed by Gujarat which secures percentages. The state of Karnataka has the lowest entrepreneurship development in different states of India is in different degrees. Socio economic background of women entrepreneurs in VSP city: women entrepreneurs i.e., only. It is 93
6 In India, entrepreneurship among women is of recent origin. Entrepreneurship plays a vital role in the growth and success of a business unit. The level of success, the unit, depends upon entrepreneurial qualities. Socio- economic background is an important factor that influences the women to start their business. Money is not the sole objective among the women entrepreneurs to enter in to the business. Certain important factors such as age, education, occupation and income of the family, will always have a greater influence on the decisions of individuals relating to all their activities. Age: The age of the entrepreneur may influence his or her working and production capacity. Age forms one of the important determinant factors in understanding the perceptions, attitudes and capacity of the entrepreneurs. Table 1.3 Age of the Respondents Sl.No Age Group No. of Respondents Percentage Above Source: Field Survey Total Note: Figures in the parenthesis indicate percentages. According to the above Table 1. 3 out of 50 respondents 20 pre cent belongs to the age group between 21 to 30 years and 50 per cent belongs to age group 31 to 40 years,30 per cent respondents belongs to 41 to 50 years and there is no respondents in above 51 years age group. Education: In recent years education is recognised as one of the important 94
7 components of human resource development. In view of this, Government of India has undertaken a number of measures to promote literacy levels. The personality of individuals is developed by their educational status. The level of education also shapes the attitudes, opinions and working capacities. Table 1.4 Educational Qualifications of Respondents Sl.No Level of Education No. of Respondents Percentage 1 SSLC Intermediate Graduate Post Graduate Others Total Source: Field Survey The data relating to the educational background of the women entrepreneurs is collected and is grouped into five categories and the same has been presented in the Table 1.4. Among the total sample women entrepreneurs 10 per cent are either tenth standard or less than that. About 20 per cent had education up to intermediate followed by 40 per cent who are graduates. The remaining two categories Post graduates and other account for 16 per cent and 14 per cent respectively. 95
8 Table 1.5 Type of Industry Sl.No Industry No. of Respondents Percentage 1 Manufacturing Service Total Source: Field Survey The above Table 1.5 shows the type of Industry of women respondents. Only 18 per cent were belongs to manufacturing Industry. Majority of women entrepreneurs i.e, 82 per cent were belongs to service Industry. Table 1.6 Main Reasons to Select Business Sl.No Reason No. of Respondents Percentage 1 High Profit Less Competition Easy Job Improve the Family Status Total Source: Field Survey As in the Table 1.6. Different Reason to select a business, so respondents with regard to become entrepreneurs for the survey only 18 per cent on there is high profit, 50 per cent of respondents were selected for it s easy job and 32 per cent of respondents were select for to improve the family status. 96
9 Table 1.7. Factors Motivating the Women Respondents Sl.No Motivating Factors No. of Respondents Percentage 1 Educational Background Occupational Experience Family Background Desire to work Independently Total Source: Field Survey The Table indicates different factors motivating the women respondents have been mentioned by 50 respondents. Women entrepreneurs are collected and are grouped into four categories and the same has been presented in the Table 1.7. Among the total sample women entrepreneurs 30 per cent of women respondents were motivated by educational background, 8per cent were motivated by occupational experience,22 per cent respondents were motivated by family background and 40 per cent women respondents were desire to work independently. Major findings: The major findings of the study are as below; 1. Right efforts on from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. 2. The largest group of the entrepreneurs comprising 50 per cent of the total respondents were in the age group of below 40 years. 3. Majority of the respondents started their business for it is easy job (50 per cent) and to improve their family status (32 per cent). 4. It is finding that 82 per cent of women entrepreneurs started service industries. 5. Majority of the women entrepreneurs (40 per cent) surveyed were motivated to turn to entrepreneurship due to desire to work independently. Suggestions: Following efforts can be taken into account for effective development of women entrepreneurs; Adequate training programmed on management skills to be provided to 97
10 women community to encourage passive women entrepreneurs. Central and State government should assist financially to women entrepreneurs to participate in international trade affairs, exhibitions and conferences. Better educational facilities and schemes should be extended to women folk from government part. Every women entrepreneur should develop strong desire to achieve and succeed in her business. Association of women entrepreneurs should assume responsibility of creating greater awareness among young women. Conclusion: nation in general and of the family in particular. Women today are more willing to take up activities that were once considered the preserve of men, and have proved that they are second to no one with respect to contribution to the growth of the economy. As government encouragement and support is very important to women entrepreneurs mean while family support is also very essential for development of such entrepreneurs. Women entrepreneurship must be moulded properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena. Entrepreneurship among women, no doubt improves the wealth of the References: 1. Dhameja S.K (2002), Women Entrepreneurs; Opportunities, performance, problems, Deep Publications (P) Ltd., New Delhi, p Sanjay Tiwari, (2007), Indian Entrepreneurship Women Entrepreneurship and Economic Development, Sarup and Sons Publication, New Delhi. 3. Ratna Ghosh, Meenakshi Gupta et, al., (2006), Women and Entrepreneurship in India, Personal Low Price Edition, New Delhi, pp SubbaRao P. And Sundaram.M, (1999), Entrepreneur, Enterprise and Growth Options, Himalaya Publishing House, Mumbai, pp Raghavulu, M.V. (2012), Institutional Support for Women Entrepreneurs in India, International Journal of Scientific Research, Vol.1, Issue 5.Oct,
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