MNV Project

8/8/2019 MNV Project

1/19

1

Role of women entrepreneurs in new emerging economic

scenario in India

Study, analyze and compare problems and prospectsof women entrepreneurship in BRIC nations

Managing New Venture Project Submitted

IN

Partial Fulfilment of the Requirements for the Award of

Post Graduate Diploma in Management(Recognized by AICTE, Ministry of HRD, Govt. of India)

By

PRAGYA KUMARI

PG 09-075

Submitted to:

Prof. S. S. Sharma

INMANTEC, Ghaziabad


2/19

2

Contents:

Sl. No. Particulars Page. No.1 Introduction 3

2 The role of women entrepreneurs in thenew emerging economic scenario in India

4

3 Women Entrepreneurship in India 10

4 Problems and prospects of womenentrepreneurship in BRIC nations

11

5Findings

136 Economic Impact of Women

Entrepreneurship17

7 Conclusion 19


3/19

3

The role of women entrepreneurs in the new emerging economic

scenario in India

Study, analyze and compare problems and prospects of

women entrepreneurship in BRIC nations

What we need is an entrepreneurial Society in which innovation &

entrepreneurship are normal, steady& continual

-Peter.F.Drucker

Introduction

Women Entrepreneurship is both about Women pose in society and the role

of Women Entrepreneurship in the same society. Women are faced with specific

obstacles (such as family responsibilities) that have to be overcome in order to give

them access to the same opportunities as men. Also, in some countries, women

may experience obstacles with respect to holding property and entering contracts.

Increased participation of women in the labour force is a prerequisite forimproving the position of women in society and self-employed women.

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 & economic status in the society.

Skill, Knowledge & adaptability in business are the main reason for women to take

up entrepreneurship.

They span generations and are there in every field, From Tractors to

television, from biscuits to banking, from HR to hospitals. Denied entry into a

male bastion, they create another industry like Kiran Mazumdar Shaw of Biocon .


4/19

4

According to her, hard work, commitment and caring in word and deed helps

people overcome obstacles.

The role of women entrepreneurs in the new emerging economic

scenario in India

The role of Women Entrepreneur needs to be considered in the economic

development of the nation for various reasons.

Women Entrepreneur has been recognized during the last decade as an

important untapped source of economic growth. Women Entrepreneurs create new

jobs for themselves and others and by being different also provide society with

different solutions to management, organization and business problems as well as

to the exploitation of Women Entrepreneurial opportunities. However, they still

represent a minority of all Women Entrepreneurs. Thus there exists a market

failure discriminating against Women possibility to become Women Entrepreneurs

and their possibility to become successful Women Entrepreneurs. This market

failure needs to be addressed by policy makers so that the economic potential ofthis group can be fully utilized. While without a doubt the economic impact of

women is substantial, we still lack a reliable picture describing in detail that

specific impact. Recent efforts initiated by the OECD (1997, 2000) are responses

to this lack of knowledge and have focused the attention of policy makers and was

on this important topic.

Women Entrepreneurship has been largely neglected both in society in

general and in the social sciences. Not only have women lower participation rates

in Women Entrepreneurship than men but they also generally choose to start and

manage firms in different industries than men tend to do. The industries (primarily

retail, education and other service industries) chosen by women are often perceived


5/19

5

as being less important to economic development and growth than high-technology

and manufacturing.

Furthermore, conventional research, policies and Proposals tend to be men

streamed and too often do not take into account the specific needs of Women

Entrepreneurs and would-be Women Entrepreneurs. As a consequence, equal

opportunity between men and women from the perspective of Women

Entrepreneurship is still not a reality. In order to realize the benefits of policy

changes it is important to incorporate a Women Entrepreneurial dimension in

considering all SMEs and growth policies (e.g. meeting Women financing needs at

all stages of the business continuum; take-up of business development and support

services; access to corporate, government and international markets; technology

access and utilization; R&D and innovation; etc.). Moreover this means

periodically evaluating the impact of these measures on the success of women-

owned businesses and exchanging good models and best practices, through

cooperation with leading international organizations such as the OECD, European

Union, APEC, UNCTAD and the ILO, in order to continually improve policies andProposals.

Better qualitative information and quantitative data and statistics are

required to profile Women Entrepreneurs (demographic information, barriers to

start-up and growth). This would also assist in promoting awareness of the role of

Women Entrepreneurs in the economy. Using a frame of reference such as that

developed in the report could be valuable for the analysis of this information.

It is observed that Women Entrepreneur networks are major sources of

knowledge about Women Entrepreneur and they are increasingly recognized as a

valuable tool for its development and promotion. Policy makers must foster the


6/19

6

networking of associations and encourage co-operation and partnerships among

national and international networks and facilitate Women Entrepreneurial

endeavors by women in the economy.

The challenge of world class competition and the attempts at globalization

and Liberalization has tremendously altered the business environment of firms in

India. In contributing to the working of any firm in India, be as a policy maker or

as a person doing business with a firm in India or as a marketing practitioner or as

an academician, it is important to understand how practically the firms have taken

measures to combat the onslaught of these challenges.

What new turns have been made in the actual working system of Women

Entrepreneur? In other words, an understanding of the exact nature of the paradigm

shifts in small and medium enterprises.

That is, from the point of view of an individual firm in India, how the

challenge of the shifting economic environment been perceived and what new

efforts have been adopted towards managing these challenges?

From the above passages, it is worthwhile to mention the major

recommendations contributed by the researchers from the wide-ranging study

about Women Entrepreneur were summarized below:

Increase the ability of women to participate in the labour force by ensuring

the availability of affordable child care and equal treatment in the work place.

More generally, improving the position of women in society and promoting

Women Entrepreneurship generally will have benefits in terms of Women

Entrepreneur. Listen to the voice of Women Entrepreneurs. The creation of

government offices of Women business ownership is one way to facilitate this.

Such offices could have programmed responsibilities such as providing Women


7/19

7

business centers, organizing information seminars and meetings and/or providing

web-based information to those wanting to start and grow a business. Incorporate a

Women Entrepreneurial dimension in the formation of all SME-related policies.

This can be done by ensuring that the impact on Women Entrepreneur is taken into

account at the design stage. Promote the development of Women Entrepreneur

networks. These are major sources of knowledge about Women Entrepreneur and

valuable tools for its development and promotion. Co-operation and partnerships

between national and international networks can facilitate Women Entrepreneurial

endeavors by women in a global economy. Periodically evaluate the impact of any

SME-related policies on the success of women-owned businesses and the extent to

which such businesses take advantage of them. The objective should be to identify

ways to improve the effectiveness of those that should be retained. Good practices

that are identified in this way should be disseminated and shared internationally.

Improve the factual and analytical underpinnings of our understanding of the role

of Women Entrepreneurs in the economy. This requires strengthening the

statistical basis for carrying out gender-related cross-country comparative analyses

and longitudinal studies of the impact of important developments and policies,

especially over time. Women Entrepreneur is dependent on both demand side

(political and institutional framework, family policy and market sources) and

supply side factors (the availability of suitable individuals to occupy Women

Entrepreneurial roles). Women Entrepreneur depends on both the situation of

women in society and the role of Women Entrepreneurship in that same society.

Both the factors that affect the gender system and the factors that affect Women

Entrepreneurship in society are involved.

Women entrepreneurs have been making a significant impact in all segments

of the economy in India, Canada, Great Britain, Germany, Australia and the United


8/19

8

States. The areas chosen by women are retail trade, restaurants, hotels, education,

cultural, cleaning, insurance and manufacturing The New Thrust suggests

following two factors pulling or pushing women in an entrepreneurship Factors

leading women to be an entrepreneur: Women entrepreneurs choose a Women

takes up business enterprises to Profession as a challenge and an get over financial

difficulties and respond- adventure with an urge to do some - sibilate is thrust on

them due to family -thing new, liking for business and circumstances to have an

independent occupation. With the spread of education and new

approaches/awareness, women entrepreneurs are achieving higher level of 3Es,

namely: (i) Engineering (ii) Electronics (iii) Energy.

Though we should not forget certain Psycho-Social Barriers which hinders

the growth of women entrepreneurs.

Opportunities:

Free entry into world trade.

Improved risk taking ability. Governments of nations withdrawn some restrictions Technology and inventions spread into the world. Encouragement to innovations and inventions. Promotion of healthy completions among nations Consideration increase in government assistance for international

trade.

Establishment of other national and international institutes to supportbusiness among nations of the world.

Benefits of specialization. Social and cultural development


9/19

9

Challenges:

Problems of raising equity capitalDifficulty in borrowing fund.Throat-cut completions endangered existence of small companies.Problems of availing raw-materials.Problems of obsolescence of indigenous technologyIncreased pollutions Ecological imbalanced.Problems of TRIPS and TRIMS.Exploitation of small and poor countries, etc.


10/19

10

Women Entrepreneurship in India

Out of total 940.98 million people in India, in the 1990s, females comprise

437.10 million representing 46.5 percent of the total population. There are 126.48

million women workforce but as per the 1991 census, only 1, 85,900 womenaccounting for only 4.5 per cent of the total self-employed persons in the country

were recorded. As per a rough estimate the number of SSIs are expected to be2.5

billion having 9% women entrepreneurs in to it. Considering this trend, women

participation in another five years was 20 % more, raising the number of women

entrepreneurs to about 5, 00,000. Combined effect of motivational drive,

preparation of information material, conducting training, creation of women

industrial estates, and training of promoters and use of mass media all together is

bound to accelerate the process of women entrepreneurship development. Some

psycho-social factors impede the growth of women entrepreneurs are as follows:

Poor self-image of women Inadequate motivation Discriminating treatment Faulty socialization Role conflict Cultural values Lack of courage and self-confidence Inadequate encouragement Lack of social acceptance Unjust social, economic and cultural system Lack of freedom of expression Afraid of failures and criticism Susceptible to negative attitude Low dignity of labour


11/19

11

Problems and prospects of women entrepreneurship in BRIC

nations

Its a question that policymakers all over the world are beginning to askthemselves. Nowhere is this need for talent more clear than in high-growth

developing nations, most notably the BRIC countries (Brazil, Russia, India, and

China), where economic and business growth is dramatically outpacing the

production of talented employees, particularly at the higher ends of the food chain.

Here, the rise of female economic power will be a transformative growth engine, in

large part because education levels among women have vastly improved from

where they were even 10 years ago. Its a well-known fact that in the United

States, women outnumber men in the attainment of college degrees (by 20

percent), as well as graduate and law diplomas; 72 percent of high-school

valedictorians were women last year. But its less well known that the same is true

in many developing nations. In Brazil, the United Arab Emirates, and Russia, the

vast majority of college graduates are female. In Russia, for example, 86 percent of

women ages 18 to 23 are enrolled in tertiary education. Improving education for

women can have a dramatic impact on economies: the Womens Learning

Partnership estimates that for every year beyond fourth grade girls attend school, a

countrys wages rise by 20 percent, and the child-mortality rate dips by 10 percent.

And when the average education level of a countrys adult female populationincreases by one year, the share of women in the workforce increases by nearly 1

percent.

Educated BRIC women have already begun to gain workforce traction: they

make up between 30 percent and 50 percent of BRIC workers as a whole, and in

three of the four BRIC nations, female labor-force participation rose from 2007 to

2008. Theres every reason to believe the trend will only speed up. As the authors

of a new Center for Work-Life Policy (CWLP) study on female talent in emerging

markets note, the women in developing nations are more likely to describe

themselves as ambitious than the men are. Eighty-five percent of women in India

and 92 percent in the UAE consider themselves very ambitious; in Brazil, India,

China, and the UAE, at least 75 percent of women aspire to hold a top job

(compare these figures with the mere 36 percent of U.S. women who consider

themselves very ambitious). Certainly, the need for greater economic parity drives


12/19

12

some of this (in poor countries, the gender wage gap is still quite large). But

experts also believe the legacy of communism may have provided a surprisingly

beneficial lesson to todays capitalists: as one Chinese HR leader told researchers,

communism has always emphasized that women can and should do whatever men

can doWe often find female candidates to be as competitive, if not more so, thantheir male counterparts.


13/19

13

Findings:

1. Comparison of BRIC nation women entrepreneurship:

Brazil: 53%

Russia: 27%

India: 35%

China: 20%

Accordingly through graph we can say that with 53% women partnership in

entrepreneurship Brazil leads while India is at third position with only 35% of

women entrepreneurship. This also shows that China which has the fasted growing

economy has only 20% women entrepreneurs.

0%

10%

20%

30%

40%

50%

60%

B R I C

Percetage of Women Entrepreneurs

Series1


14/19

14

2. Comparison of women entrepreneurs growth in India and BRIC nation

We see the graph we can analyze that the BRIC nations in total are growing

at faster rate than if we consider India alone thus this implies that in India the

growth opportunities for women entrepreneurs are acute.

0%

10%

20%

30%

40%

50%

1981-19901991-2000

2001-20102011-2020

Growth of Indian & BRIC women entr.

India

BRIC


15/19

15

3. State wise distribution of women entrepreneurs in India:

This graph represents the percentage contribution of women

entrepreneurship in Indian economy. This is clear that U. P. has maximum

percentage with more than 29% followed by Kerala, Gujrat, Mahastra and Tamil

Nadu.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Percentage of women ent. In states

Series1


16/19

16

4. Growth of women entrepreneurs state wise in India:

Here we can see from the graph that U. P. is growing faster and is now has

the most percentage of women entrepreneurs and Tamil Nadu and Karnatka are

picking up pace. The growth in Maharastra and Gujrat is consistent. Over all in all

three decades there is persistent increase in total percentage of women

entrepreneurs in all the states in comparison.

0%

5%

10%

15%

20%

25%

30%

Growth state wise

1991-2000

2001-2010

2011-2020


17/19

17

Economic Impact of Women Entrepreneurship

The progress of womens role in several sectors, including business, could

be seen in some phenomenon mentioned here :

*In line with the improvement of womens education, women are no longer

the minority in fields that were dominated by men in the past.

* The field of information technology created many opportunities for the

development of womens talents in this specific field. The increase in the number

of women who lead their own business, especially the ones in small and medium

scale enterprises.

* Womens leadership is able to gain high loyalty due to the fact that they

are the ones that are able to conduct clean, ethical, transparent and honest

management.

It is obvious that the 21" century provides high hopes for the progress in

women role. They do have the opportunity to get strategic positions that dominated

by men in the past.

In Asia, women are the economy driving force. Their contribution in

providing job openings in business sectors continues to rise. They are involved in

enterprises at all levels as managers, entrepreneurs, owners and investors.

Combination of influence of more education, technology and fast economic growth

make Asian women more assertive concerning their right, more aggressive in

reaching their ambition while we already acknowledged that the number of Asian

women in the work force from country to country are almost as high as those of

men. Surprisingly in most countries in Asia, women are dominating the service

sector.


18/19

18

The service sector in Asia also experienced surprising growth, and resulting

a large working opportunity for women. In the business world, women

entrepreneurs play a big role in business development in the Pacific region. In

Japan, 5 out of 6 new businesses are created by women, and they have at least five

employees. The number of women-owned larger companies is not significant, but

they start and manage the smaller companies.


19/19

19

Conclusion:

Empowering women entrepreneurs is essential for achieving the goals of

sustainable development and the bottlenecks hindering their growth must be

eradicated to entitle full participation in the business. Apart from training

programs, Newsletters, mentoring, trade fairs and exhibitions also can be a source

for entrepreneurial development. As a result, the desired outcomes of the business

are quickly achieved and more of remunerative business opportunities are found.

Henceforth, promoting entrepreneurship among women is certainly a short-cut to

rapid economic growth and development. Let us try to eliminate all forms of

gender discrimination and thus allow women to be an entrepreneur at par with

men.

MNV Project

Documents

Transcript of MNV Project