A Journal of Radix International Educational and Research Consortium RIJEB RADIX INTERNATIONAL JOURNAL OF ECONOMICS & BUSINESS MANAGEMENT PROBLEMS OF RURAL WOMEN ENTREPRENEURS A STUDY WITH REFERENCE TO VIRUDHUNAGAR DISTRICT Dr.J.Fredrick Assistant Professsor (SG) & Principal Investigator UGC-MRP, Dept. of Economics, N.M.S.S.V.N. College Nagamalai, Madurai-625 019 K.Gowri Assistant professor, Department of Economics N.M.S.S.V.N. College, Nagamalai, Madurai-625 019 ABSTRACT Entrepreneurship Development is a very crucial factor for the acceleration of economic growth of any country and women entrepreneurship development is an essential part of human resource development. Women entrepreneurs have started show in more interest because it provides them an opportunity to be one's own boss, the challenges they want to face and the chances of making more money, which outweigh their family duties. The present research study has been conducted to study the problems of rural women entrepreneurs with special reference to Virudhunagar District of the state of Tamil Nadu. In India, entrepreneurship among women is of recent origin. Socio economic background is an important factor that influences the women to start their business. Money is not the sole 1 P a g e www.rierc.org
objective among women entrepreneurs to enter in to the business. The studies relating to women entrepreneurs in rural areas further reveal that training and awareness regarding different agencies have proved beneficial for women entrepreneurs in building confidence. INTRODUCTION Development of entrepreneurship among women is a major step to increase women participation in the process of economic development. It will speed up economic growth, and provide employment opportunities for women resulted in improving the economic independence. Provision of economic opportunities for women can also improve the social, educational and health status of women and their families. In advanced countries, there is a phenomenon of increase in the number of self employed women after the World War II. In U.S.A, women own 25 per cent of all business, even though their sales on an average are less than two fifth of those of other small business. In Canada, one-third of small business is owned by women and in France it is one fifth. A similar trend is noticed even among the developed nations in Asia. Women constitute 40 per cent of the total workforce in these countries. It has been seen that women outnumbered men by at least two times particularly when it comes to starting business in China. There are over five million women entrepreneurs constituting one-fourth of all the entrepreneurs in China. In Japan to a similar trend has been noticed. Unfortunately, the trend in India does not go along the same lines. The 2001 census shows that the proportion of enterprises setup and run by women in India was approximately a fraction of one per cent. The total number of women in India is a whopping figure of 526 million. This female population is larger than the combined total population of Canada, USA and the Russian 2 P a g e www.rierc.org
federation. Unfortunately a very small percentage of the women population belonging to the elite, educated and upper middle class especially in the cities, has been exposed to issues on Women s roles, career options and jobs. At the same time women are underrepresented in government and decision making positions. At present, less than eight per cent of parliamentary seats, less than six per cent of cabinet positions and less than four per cent of seats in High Courts and the Supreme Court are occupied by women and less than three per cent of administrators and managers are women. The not so fortune sister of the glam doll urban and rural women consumer battle their day with inadequate wages, poverty, female feticide, sexual harassment, lack of education and job skills, HIV infection etc. WOMEN AND THE ECONOMY The most popular image of an entrepreneur is that of a business leader, who is bold and energetic, possesses high business acumen, eager to introduce technological changes, expand and diversify into new areas of business, earn profiles and make further investments. Through embracing creativity and innovations, they can contribute to business growth, employment generation, wealth creation, productivity improvements and enhance image of the society and in the end ensure a high living standard and better life for all. People with such entrepreneurial traits are very limited in every society, especially in the developing countries and their supply should, therefore, be enhanced by adopting promotional and supportive measures. It is estimated that women entrepreneurs presently comprise about 10 percent 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 20percent of the entrepreneurial force. In recent years the empowerment of women has been recognized as 3 P a g e www.rierc.org
the central issue in determining the status of women. There has rarely been a better time for women with zeal and creativity to start their own business. In urban cities, more and more women are successfully running day care centres, placement services. floriculture, beauty parlours and fashion boutiques. Even in rural areas self help groups are empowering women to start their own micro businesses. Even though women own around 10 percent of the total enterprises in the small scale sector, the gross output of these units is just barely 3.5 percent of the total output of the SSI sector. In contrast, in developed countries such as the United States, Women own nearly 91 lakh small businesses and the number of women owned start-ups are growing at nearly twice the rate of their male counterparts. Most of these enterprises are found to be concentrated in few states including Kerala, Tamil Nadu, Karnataka, West Bengal and Uttar Pradesh. As high as 13 percent of the total women owned enterprises are concentrated in the state of Kerala. Moreover, in accordance, with the trend in the SSI sector as a whole, as many as 87 percent of the women owned enterprises are unregistered units. Economic development plays an important role in the development and the growth of any society. The importance of promoting women to engage in economic activities is being increasingly realised in all developing countries. Entrepreneurship Development is a very crucial factor for the acceleration of economic growth of any country and women entrepreneurship development is an essential part of human resource development. Women entrepreneurs have started show in more interest because it provides them an opportunity to be one's own boss, the challenges they want to face and the chances of making more money, which outweigh their family duties. Moreover, technological development empowers women to acquire more relevant qualifications and values to meet the demands of entrepreneurship. To fill the gap in the implementation of this erstwhile self-employment must be designed to development of 4 P a g e www.rierc.org
entrepreneurship among the women, through which possible to develop the women empowerment. The present research study has been conducted to study the problems of rural women entrepreneurs with special reference to Virudhunagar District. The main objective of the study has been to understand the socio-economic background of rural women entrepreneurs, and their problems in running their enterprises efficiently and profitably. OBJECTIVES This study has been done with the following specific objectives: To analyze the socio-economic conditions of the rural women entrepreneur in Virudhunagar District. To assess the reasons to start entrepreneurship. To examine decision making participation in the family. To ascertain the constraints faced by rural women in their enterprises. SAMPLING DESIGN Virudhunagar district comprises 8 taluks. For the purpose of collecting primary data, taluk wise list of entrepreneurs were obtained from District Industrial centre. More than 70 percent of the entrepreneurs were concentrated in two taluks namely Sivakasi and Sattur. 250 sample members from these 2 taluks were randomly selected by using proportionate probability random sampling technique. Well structured and pretested interview schedule was used for collecting primary data by survey method. This is purely a descriptive study. Percentage, average, chi square tests, t tests, standard deviation, variance and probability analysis were used. 5 P a g e www.rierc.org
NATURE OF ENTERPRISES The women entrepreneurs may run the enterprises according to their capability in terms of management, marketing and risk taking ability. The nature of enterprises selected by them is influenced by the scope of business and profitability. Table-1Nature of Enterprises of the women entrepreneurs SL.No Enterprises Sivakasi % Sattur % Total % 1 Fire works 96 38.4 34 13.6 130 52.0 2 Tailoring Work 14 5.6 12 4.8 26 10.4 3 Beauty Parlors 6 2.4 8 3.2 14 5.6 4 Petty Business 52 20.8 22 8.8 74 29.6 5 Computer Training 6 2.4 -- -- 6 2.4 Total 174 69.6 76 30.4 250 100.0 (Mean: 6.83: 29.17; S.D: 5.34: 39.01; standard error of difference: 16.07; t: 1.3892; df: 10) Enterprises taken up for the study were Fire Works, tailoring shops, beauty parlors, petty shop business and computer training. It is specified that nearly 52 per cent of the women entrepreneurs belonged to Fireworks. Only 2.4 per cent women involve computer training business. 29 per cent belonged to petty business. From the data it can be concluded that women tend to involve themselves more in fireworks (t= 1.4895; df=10). 6 P a g e www.rierc.org
AGE WISE CLASSIFICATION The age is one important aspect of self development since the resistance to change is relatively less when young. Table-2 Age wise classification of the respondents SL.No Age Sivakasi % Sattur % Total % 1 18-30 24 9.6 18 7.2 42 16.8 2 31-45 92 36.8 44 17.6 136 54.4 3 46-60 58 23.2 14 5.6 72 28.8 Total 174 69.6 76 30.4 250 100.0 From the above table-2, it is revealed that the percentage of middle age respondents is more i.e., 54 percent. As per the survey middle age groups involvements is higher than that of old and young aged groups in the study area. The chi-square test value ( 2 =0.93, P=0.862, df=2) assured that there are no marked significant differences in age and women entrepreneurs in two taluks from Virudhunagar District of Tamilnadu. EDUCATIONAL STATUS Education Qualification Is An Important Factor To The Entrepreneur To Start The Business Table-3Educational Qualification of the respondents SL.No Education status Sivakasi % Sattur % Total % 1 Illiterate 16 6.4 12 4.8 28 11.2 2 Primary 97 38.8 46 18.4 143 57.2 3 High school 8 3.2 6 2.4 14 5.6 4 Higher secondary 21 8.4 5 2.0 26 10.4 5 Degree 32 12.8 7 2.8 39 15.6 Total 174 69.6 76 30.4 250 100.0 7 P a g e www.rierc.org
It has been inferred from the table 3, that a maximum of 57 percent of the women entrepreneurs are having school level education. MOTIVATING FACTOR FOR WOMEN The Table-4 Reveals That 58 Percent Of Respondents Stated That The Most Important Motivating Factor To Start The Entrepreneurship Venture Was To Supplement Their Family Income. It Also Reveals That There Is Definite Growing Awareness In Society And Women In Particular That If The Family Has To Maintain A Reasonable Standard Of Living, Women Should Supplement To Family Income With Whatever Skill They Have. Table-4 Motivating factors for women entrepreneurship SL.No Reason to start entrepreneurship Sivakasi % Sattur % Total % 1 To supplement the family income 112 44.8 34 13.6 146 58.4 2 Bored at home 31 12.4 14 5.6 45 18.0 3 For livelihood 23 9.2 17 6.8 40 16.0 4 To provide good life for children 8 3.2 11 4.4 19 7.6 Total 174 69.6 76 30.4 250 100.0 Almost 18 percent of women expressed that they felt bored at home, which prompted them to take up entrepreneurship. 16 and nearly 7 per cent of them stated that they started business for their livelihood and to provide good life for their children respectively. The chi-square test ( 2 =20.83, P=.0001, df=3, Cramer's V=0.309) shows significant relationship between motivation to start business and women entrepreneurs in two taluks from Virudhunagar District of Tamilnadu at 5% level. 8 P a g e www.rierc.org
DECISION MAKING The empowerment of women in the study has been measured in terms of their decision making capacity, which has been classified on the basis of self, husband and both. Table-5 Decisions Making SL.No Decision Taken Sivakasi % Sattur % Total % 1 Husband 72 28.8 23 9.2 95 38.0 2 self 88 35.2 38 15.2 126 50.4 3 Both of them 14 5.6 15 6.0 29 11.6 Total 174 69.6 76 30.4 250 100.0 It is inferred from table-5, that nearly 50 percent of the respondents take independent decisions. Husband alone taking decision was 38 percent. Thus, the socio-economic conditions of women have demonstrated that their status has improved since starting an enterprise. The result of chi-square- test ( 2 =0.74, P=0.6988, df=2) revealed that there is relationship between participation in decision-making in family and women entrepreneurs. PROBLEMS FACED BY WOMEN ENTREPRENEURS Women continue to face barriers to entrepreneurship. These obstacles include discrimination in education, training, access to credit and greater domestic responsibilities for women. Table-6 Problems faced by women entrepreneurs SL.No Problems No. of Respondents Percentage 1 Lack of guidance and 39 15.6 9 P a g e www.rierc.org
motivation 2 Poor access to credit 67 26.8 3 Difficulty In availing credit 96 38.4 4 High cost of required machine or equipments 27 10.8 5 Perception of knowledge 9 3.6 6 Negative self perceptions 12 4.8 Total 250 100.0 Finance is a most important aspect of any business. Among the respondents, difficulty in availing credit (38%), Poor access to credit (26%), Lack of guidance and motivation (15%), high cost of required machine or equipments (10%), Negative self perceptions (4%), and Perception of knowledge (3%) were found to be the problems faced by respondents based on the multiple responses given by them. RECOMMENDATIONS Gender specific training is more essential to suit socio-economic demographic conditions. Holistic approach is needed to look at the whole individual in a business perspective in the socio-cultural milieu. The product must fit the need through bottom-up approach. Some women need tremendous amount of nontechnical support also. Some women need pre-entrepreneurial training first. Total personal support and awareness is needed - counselling, stress coping skills, public speaking skills. 10 P a g e www.rierc.org
CONCLUSION Entrepreneurship is a dynamic concept and no specific personality attribute can generate success. However, the technical knowledge and skill, parental support, previous job experience may help an entrepreneur to compete successfully in the market. An awareness of various entrepreneurial risks helps an entrepreneur to build up strategies to control / counter them and become successful. New and innovative tools in the technological realm have allowed women business owners to successfully move forward on all these fronts more efficiently. The increasing trend developed among the women to be self-employed suggests that time is not far away when women factor would also have an important role in the economic growth of the country. Possessing the natural gift of politeness, Women entrepreneurs, and if provided the level ground, are expected to bring new milestone to this country. REFERENCES 1. Anil Kumar, Financing Pattern of Enterprises owned by women Enterprises owned by women entrepreneurs. The Indian Journal of Commerce, Vol. 57 No.2, April- June. 2004. P-73. 2. Dhameeja S.K., Women Entrepreneurs; Opportunities, performance, problems Deep Publications (P) Ltd., New Delhi, P-11. 3. Women Entrepreneurs SIDBI Report on Small Scale Industries, OP Cit. 4. Kanitkar, Ajit and contractor, Nalinee: in search of felentity the women entrepreneurs of India. Entrepreneurship development institute of India, Ahemedabad, 1992. 11 P a g e www.rierc.org