WOMEN ENTREPRENEURSHIP AND GLOBALISATION Jagadeesh.B Assistant Professor, Department of Commerce, Field Marshal K.M Cariappa College, Madikeri jagga_konaje@rediffmail.com ABSTRACT In the Globalised world, women entrepreneurs are playing a vital role and they have become important part of the global quest for the 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. In India, the women role has been explicitly recognized with a market shift in the approach from women welfare to women development and empowerment from the Fifth Five Year Plan (1974-79) onwards and today the significant role of women in entrepreneurship constantly increasing due to various global factors. The Government of India has been implementing several policies and programmes for the development of women entrepreneurship in India. In India, entrepreneurship among women is of recent origin. Socio economic background is an important factor that influences the woman to start their business. Despite all the social hurdles, Indian women stand tall from the rest of the crowd and are applauded for their achievements in their respective field. The transformation of social fabric of the Indian society, in terms of increased educational status of women and varied aspirations for better living, necessitated a change in the life style of Indian women. She has competed with man and successfully stood up with him in every walk of life and business is no exception for this. These women leaders are assertive, persuasive and willing to take risks. They managed to survive and succeed in this cut- throat competition with their hard work, diligence and perseverance. 92
INTRODUCTION: In spite of forming 50 per cent of the total population of the world women do not own even 1 per cent of the world s property. Their role and contribution in industrialization has remained unaccounted and un assessed. The lot and the position of women the world over has remained neglected. Their share in business and trade is very low. Though they represent half the humanity, their contribution to leadership and management is much less. According to the UN report women receive 25 per cent less wages than men inspite of the law of equal wages for equal work. Time has come for women to come out of the drudgery of housework and give vent to their creativity and entrepreneurship. Political developments in India have also been responsible for determining the role of women in a changing society. It is an accepted fact that the role of women in national development is a crucial one. Women have an important role to play in synthesizing social progress with economic growth of developing countries. Nonaligned and other developing countries have attached a great importance to ensure that women play their full role in the development process. The specific role of women in the economic effort has not yet been clearly defined but the need for integration of women into development is being particularly felt by women themselves. With the increase in the number of women getting educated, there is considerable awareness among women to be self-employed and gradually the role of women is changing in the society. Women Entrepreneurship Women entrepreneurs are key players in any developing country particularly in terms of their contribution to economic development. Women entrepreneurship has been recognized 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, organization 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 93
strong contribution to the economic wellbeing 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. Over the past few decades the sex role of women has been breaking the barriers of four walls. Today the roles of women are not confined to the traditional on as a mother / housewife. The role of modern women is much more than, what it was previously. However even after the 63 years of India s independence the bias against women continues because of the cultural and traditional mores, which has affected lot on the female status and role. A woman has to play multiple roles. Besides playing the role of housewife/mother/daughter, she has to play different roles in community in the social settings simultaneously. Playing all the roles, women sometimes submerged her own self-role and her own real identity. Status of Women Entrepreneurs in India Nature has made a division of labour entrusting upon men and women different responsibilities for the betterment of the process of evolution. In this division of labour, the women have been endowed upon with the gift of motherhood and upbringing of the future generation. Woman, the mother, has been the symbol of continuity of culture, tradition and religion, being the binding force of the family system. Quality of life has depended upon how well or how badly the women have performed this duty of hers. Women entrepreneurs can be divided into three categories: 1. Entrepreneurs in Large and Medium Sector In large and medium sectors, women with educational and professional qualifications, take the initiative and manage the business as well as a man. A woman entrepreneur who has received basic managerial training and educational qualifications, sometimes even an MBA degree, usually may head the medium sector and large units. These women because of their qualifications and other opportunities which are available to them are in a superior position and have a competitive edge over others to set up and manage the units. 2. Entrepreneurs in the Small Sector Those women entrepreneurs who do not have education or any formal training in 94
management, but have developed skills take to small scale industry. They choose that product with which they are familiar i.e. garments, weaving, pickles, dolls and handicrafts. Some have ventured into engineering, electronics, chemicals and pharmaceuticals. Some also make surgical instruments, furniture and pottery. These women entrepreneurs need in the initial period, certain special privileges to overcome the practical social handicaps they face for being a woman such as attitudinal reluctance of officers, lack of information, and too many formalities that need to be completed. 3. The third category of women entrepreneurs work in cities and slums to help women with lower means of livelihood. There is service motivated organization to help economically backward sections. They need Government support in marketing as well as getting finances at a concessional rate for their products. Preferential purchasing policy of government helps such institutions to manufacture and sell to the government items like files, chalk, stationery, etc. Women in our country always remained a victim of neglect and discrimination and were not allowed to perform their due role in the economic or social life of the society. Recognizing the injustice meted out to women in the past, the architects of our Constitution took special care to guarantee equality of rights and opportunities for women in political and social fields and to specifically prohibit any discrimination particularly in matters of employment, wages and human conditions of work. The need is now keenly felt that women should also work outside the home for getting better living standards for all. It is in this context, that the question of women entrepreneurs or women s industries has taken a new significance especially when unemployment has become a matter of great concern to all. Better health and decreasing infant mortality is a sufficiently persuasive force for women to come out of their homes. Rapid industrialisation, urbanisation, and sociopolitical movements have made a dent in the old pattern. 95
Table 1 Women Entrepreneur in India States No of Tamil Nadu Units Register ed No. Women of Entreprene urs Percenta ge 9618 2930 30.36 Uttar 7980 3180 39.84 Pradesh Kerala 5487 2135 38.91 Punjab 4791 1618 33.77 Maharash tra 4339 1394 32.12 Gujarat 3872 1538 39.72 Karnataka 3822 1026 26.84 Madhya Pradesh 2967 842 28.38 Bihar 7344 1123 15.04 Others & 14576 4185 28.71 UTS Total 64796 19971 32.82 Source: CMIE Report 2011 The above table 1 depicts the fact that on an average 32.82 percent of the total registered enterprises were occupied by the women entrepreneurs in India. Among the states, Uttar Pradesh tops with 39.84 percent which is followed by Gujarat 39.72 percent, Kerala 38.91 percent, Punjab 33.77 percent, Maharashtra 32.12 percent, Tamil Nadu 30.36 percent, Other States and UTS 28.71 percent Madhya Pradesh 28.38 percent Karnataka 26.84 percent and Bihar 15.04 percent. The Various Constrains Faced By Women Entrepreneurs Social attitude and support: The society plays a prominent role in entrepreneurial venture and success. Many researchers have been conducted to study the attitude and support to women entrepreneurs across the region. Some research concludes that, women received strong support from their social environment which she may have built either due to start up types requiring more social support or hesitation to enter the business formation forces. Marketing: The other hand women face marketing challenges in the form of competition from cheaper and substitute product, delayed payment and liberal credit terms. Women entrepreneurs neither have knowledge nor access to proper market, thus they sell their product through the middle man. This middle man exploits them and entrepreneur received for price than desired even if the demand of product is high. Finance: Finance is a critical resource for venture creation. It is very important that women entrepreneurs have adequate knowledge and information of the various financial institutions which are rendering financial incentives and many other help for the women entrepreneurs in the region. 96
Operational: Women entrepreneur in India not only struggle at the time of establishment of enterprises but at operation stage also, they have lots to overcome with different functional difficulties. Usually women faced two fold operational problems and she has to overcome with problems of production process like, scarcity of raw material, lack of technical skills, lack of utilities and infrastructure facility. Management problem: It is normally believed that women have low managerial skill. But in fact women are stronger in more logic based skills though they are weaker in self promotion and handling frustration. The increasing number of female students and their excellent performance in management education is a proof to the fact. Mobility constraints: Women in India have got restricted mobility, our society is a conservative society, and the career of women was limited to four walls of kitchen. Although now, women have got relatively more freedom in terms of entrepreneurial activity but also by the family members if they move out after normal hours. Though women faced lots of problems being mobile in entrepreneurial activity, the mobility problem has been solved to certain extent by the expansion of education awareness to all. Dual responsibility: The most exploited individual of the day are the working women, as they have to perform dual responsibility, one at work and another as family as mother of wife. The level of women exploitation on family responsibility ground depends on her social dependence. Risk-bearing ability: One pre-requisites of the entrepreneurial success is risk taking. It is normally believe that women being feminist gender have low risk taking ability. They are being suppressed by the protected environment and are not allowed most of the time to take any type of risk even if she is willing or she has the ability to bear. Absence of entrepreneurial aptitude: Many women take the training by attending the Entrepreneurship Development Programmes without entrepreneurial bent of mind. As per a study, involvement of women in small scale sector as owners stands at mere 7 percent. Women who are imparted training by various institutes must be verified on account of aptitude through the tests, interviews etc. Quality of EDPS: All women entrepreneurs are given the same training through EDPs. Second-generation women entrepreneurs don't need such training as they already have the previous exposure to business. 97
Family conflicts: Women also face the conflict of performing of home role as they are not available to spend enough time with their families. They spend long hours in business and as a result, they find it difficult to meet the demands of their family members and society as well. Their inability to attend to domestic work, time for education of children, personal hobbies, and entertainment adds to their conflicts. Credit facilities: Though women constitute about 50 per cent of population, the percentage of small scale enterprise where women own 51 percent of share capital is less than 5 percent. Women are often denied credit by bankers on the ground of lack of collateral security. Therefore, women's access to risk capital is limited. The complicated procedure of bank loans, the inordinate delay in obtaining the loans and running about involved do deter many women from venturing out. At the same time, a good deal of self- employment program has been promoted by the govt. and commercial banks. Shortage of raw-materials: Women entrepreneurs encounter the problems of shortage of raw-materials. The failure of many women co-operations in 1971 such as these engaged in basket making were mainly because of the inadequate availability of forest-based raw materials. Heavy competition: Many of the women enterprises have imperfect organizational set up. But they have to face severe competition from organized industries. High cost of production: High cost of production undermines the efficiency and stands in the way of development and expansion of women's enterprises, government assistance in the form of grant and subsidies to some extent enables them to tide over the difficult situations. However, in the long run, it would be necessary to increase efficiency and expand productive capacity and thereby reduce cost to make their ultimate survival possible, other than these, women entrepreneurs so face the problems of labor, human resources, infrastructure, legal formalities, overload of work, lack of family support, mistrust etc. CONCLUSION Micro enterprises come into existence out of either market driven or non market driven forces. Women entrepreneurs have become a strong driving force in today s corporate world. Not only are they able to equalize their duties of both motherhood and entrepreneurship but they also comprise of almost half of all businesses owned today. 98
They involved in various business activities either individually or as a group. The rural women are having basic indigenous knowledge, skill, potential and resources to establish and manage enterprise. It is suggested that women entrepreneur networks are the major sources of knowledge about women s entrepreneurship and they are increasingly recognized as a valuable tool for its development and promotion. This network helps to give lectures, printed material imparting first hand technical knowledge in production, processing, procurement, management and marketing among the other women and will motivate other rural women to engage in micro entrepreneurship with the right assistance and help them to strengthen their capacities besides adding to the family income and national productivity. REFERENCES 1. Baporikar, N. (2007) Entrepreneurship Development & Project Management - Himalaya Publication House. 2. D'Cruz., N. K. (2003), Constraints on Women Entrepreneurship Development in Kerala:. An Analysis of Familial, Social and Psychological Dimensions. Thiruvananthapuram, India, Centre for Development Studies. 3. Dhaliwal S. (1998), "Silent Contributors: Asian Female Entrepreneurs and Women in Business", Women's Studies International Forum, Vol. 21 (5), pp. 469-474. 4. Handy F., Kassam M. and Ranade S. (2003), Factors Influencing Women Entrepreneurs of NGOs in India, Nonprofit Management and Leadership, Vol. 13 (2), pp. 139-154. 5. Hookoomsing P. D. and Essoo V. (2003), Promoting Female Entrepreneurship In Mauritius: Strategies In Training And Development. SEED Working Paper No. 58: Series on Women's Entrepreneuship development and Gender Equality-WEDGE, International Labour Office, Geneva and ILO Antananarivo. 99