Sample Copy. Not For Distribution · 2016. 1. 24. · iii Women Entrepreneurship (Emerging...

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Women Entrepreneurship


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Printed in India


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Women

Entrepreneurship (Emerging Dimension of Entrepreneurship in India)

Priyanka Sharma Gurnani

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


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About The Author

"Priyanka Sharma Gurnani” is the General Assistant

Professor of Marketing & H.R.M at KIIT College of

Engineering, Maharishi Dayanand University. She is

doctorate (Phd) on “Impediments and Motivations to

Women Entrepreneurs in Rajasthan” and also she did

masters (MBA) in human resource and management and

marketing management. she published six articles in

refereed journals.


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About The Book

The book aims to encourage entrepreneurial thinking by

showing how to understand and spot the possible

opportunity gaps in various sections and industries. The

objective is to encourage entrepreneurial thinking and

motivate more women to take the plunge, without

necessarily judging success as the outcome. It aims at

encouraging the effort and presents guidelines for taking

the right steps towards the entrepreneurship and hence

moderating many risk factors.


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Preface & Acknowledgements

Post liberalization, the relevance of Women

Entrepreneurship has become more imperative, this

means a marked change in the way Women are

perceived in India. The period immediately following

independence signaled the pressing need for developing

vast Entrepreneurship skills. Even after that, we have

travelled a long way and Entrepreneurship among

women is not just new but has become more mature and

as of present has become an international player. This is

because of Government policies and schemes in support

of women who aspire to start their own enterprise.

In India status of women entrepreneurs are going

through a period of almost tectonic changes brought by

Government as well as family support. New realities are

unfolding and new economic issues are emerging. The

changing scenario calls for examining and redefining

Management education more suited in a new word of

change and transformation.

I am confident that this book would induce a

new and dynamic idea in the field of Women

Entrepreneurship. It has been a conscious and model

effort to present this comprehensive book quite useful

for the students, research scholars, academicians and the

Women Entrepreneurs.

I hope this book will definitely go a long way to

create sustained interest and curiosity in the minds of the

readers and students in particular as it would supplement

and enrich the corpus of existing literature on this

particular subject.


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I wish to thank God for the wisdom and perseverance

that He has been bestowed upon me during the project.

Further I greatly appreciate my parents and my

husband for their unconditional support, both financially

and emotionally throughout my life. The sacrifice of my

parents was a constant source of inspiration during the

project.

- Mrs. Priyanka Sharma Gurnani


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Contents List

S.No. Chapter Page

1. Introduction

1

2. Development of Women

Entrepreneurship in India

85

3. Challenges and Opportunities of

entrepreneurs: Indian Scenario

101

4. Feminism and gender 148

5. Women Entrepreneurship &

Micro Enterprise

188

6. The status of Women’s

Empowerment in India

234



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Chapter-1

Emerging Dimension Of Entrepreneurship In

India- Women Entrepreneurship

Introduction 1.1 Entrepreneurs:

Entrepreneur is a highly respected word in the developed

world. It conjures up visions of active, purposeful men

and women accomplishing a wide variety of significant

deeds. Entrepreneur means an individual or group of

who start an enterprise. Entrepreneurship started

catching up in 1980s just as professionalism in

management caught up during 1970s.

Entrepreneurs perform a vital function in

economic development. They have been referred to as

the human agents needed to “mobilize capital, to explore

natural resources, to create markets and to carry on

trade”.

It will be said that entrepreneurial input spells

the difference between prosperity and poverty among

nations.

According to say, the entrepreneur’s function is

to combine the productive factors, to bring them

together. Carrying out of new combination of productive

factors is called “enterprise” which in fact is

fundamental phenomenon of economic development.

The individual whose function is to carry them out is

“Entrepreneur.” Schumpeter believes the economy is

propelled by the activities of persons “Who want to

promote new goods and new methods of production or

to exploit new sources of materials or new market” not

merely for profit but also for purpose of creating.

Schumpeter played with the word innovation and



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emphasized innovation as the function of an

entrepreneur. Schumpeter’s entrepreneur is highly

specialized concern. The profitable opportunities and

exploits them. The entrepreneur’s motivation for profit is

based not merely on his desire to raise consumption

standard but also on will to conquer in the competitive

battle and the job of creating, i.e. he tries to maximize

his profits by innovations. His unique characteristic is

that he gets satisfaction from using his capabilities in

attacking problems. The sense of high need achievement

and motivation introduces by entrepreneurs bring about

the required necessities in a class of society which

transform the perception of the economic thinking,

which is necessary to bring about the economic

development.

The importance of entrepreneur’s progress

cannot be more succinctly expressed than Zinkin

statement, “No entrepreneur, and no development.” By

nature an entrepreneur is neither a technician nor a

financier but he is considered an “innovator”.

Entrepreneurship is neither a profession nor a permanent

occupation and there it cannot formulate a social class

like capitalists or wage earners.

According to Harbison, an entrepreneur is not an

“innovator” but an “organization builder” or one who

has the skill to build an organization and who must be

able to harness the new ideas of different innovators to

the best of them.

ILO describes that “entrepreneurs are people

who have the ability to see and evaluate business

opportunities, to gather the necessary resources to take

advantage of them and to initiate appropriate action to

ensure success.”

In Denhof”s analysis “An entrepreneur is

primarily concerned with changes in the formula of

production over which he has full control….He devotes



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correspondingly little time to the carrying out of a

specific formula.” Danhof divides the functions of the

entrepreneur into three major roles: obtaining relevant

information, evaluating the information with regard to

profit and setting the operation in motion. Major

emphasis in Danhof”s definition is decision making or

judgment under alternative choices.

Cunningham and Lischerson (1991) in their recent

work have described six possible schools of thought

on entrepreneurship:

The first school of thought, i.e. “Great Person School”

says that an entrepreneur is born with an intuitive

ability-a sixth sense and this sense help him in startup

stage.

The second school of thought, i.e.

“Psychological Characteristics School” explains that

entrepreneurs have unique values, attitudes and needs

which drive them and help them especially in start-up

stage.

The third school, i.e. “Classical School Of

Thought” says that central characteristic helps the

entrepreneur much in innovation. This characteristic

helps the entrepreneur much in startup and early growth.

“Management School” is the fourth school of thought

and it says entrepreneurs are organizers of economic

venture and they organize, own, manage and assume its

risk. Such functional orientation helps them in early

growth and maturity.

The fifth school of thought is the “Leadership

School. “According to this school entrepreneurs are

leaders of people and they have the ability to adopt their

style to the needs of people. Such leadership personality

suits them most during early growth and maturity

situations.



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“Entrepreneurship School” is the sixth school of

thought. Entrepreneurship is the act of developing

independent units, to create market and expand services

within the organization. An entrepreneur needs

entrepreneurship during the situation of maturity and

change.

Whatever is the definition, across the world

entrepreneurs have been considered instrumental in

initiating and sustaining socio-economic development.

There are evidences to believe that countries, which have

proportionately higher percentage of entrepreneurs in

their population, have developed much faster as

compared to countries, which have lesser percentage of

them in the society.

1.1.1 Need for Entrepreneurship:

Entrepreneurship is a vital input to industrial

development as entrepreneurial talents and efficiency

made the fortune of an enterprise. It is the spirit of the

enterprise that makes one an entrepreneur. Entrepreneurs

are those who initiate, organize, manage and control the

affairs of a business or industrial unit and who confine

the factors of production with supply of goods. They are

the nuclei of economic activity and propellers of

economic development. They are a dynamic force in the

economic life of a society and organize its productive

resources. Entrepreneurship involves taking risks and

coordinating the factors of production towards prosperity

in an uncertain environment. As a matter of fact

entrepreneurs and their entrepreneurial qualities make

the difference in the success or failure of an enterprise.

The same has been widely realized by our planners

owing to its importance in the industrial progress.

There is great need to bring out the latest

energies and talents of prospective entrepreneurs and

mould them into active entrepreneurs who are daring and

prepared to take risk and in situation of uncertainty and



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uncertain earnings. The development of right

entrepreneurship is one of the most urgent and acute

problems faced by a developing country. Lack of the

right kind and number of entrepreneurs hinders

economic development. The Government of India has

undertaken a number of programmers to impart all sorts

of technical, managerial and other related training to

prospective entrepreneurs. So that they can enter the

industrial field confidently, competently and manage the

units scientifically. In entrepreneurship development, it

is very necessary to give equal importance to prospective

women entrepreneurs.

1.1.2 Measurement of Entrepreneurship:

The entrepreneurship in the present study is estimated

with the help of five important aspects namely self-

confidence, task-orientation, risk bearing, leadership and

originality. Each aspect is estimated with the help of

index developed. The Aspects are given bellow in the

following figure no.1:

Figure no.1

Unique aspects for measurement of

Entrepreneurship



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1.2 Women Entrepreneurs:

Women Entrepreneurs are defined as these who operate

and control an enterprise and their holding of the

enterprise is at least 51 percent. They represent a group

of women who have broken away from beaten track and

are exploring new ventures of economic participation.

According to Schumpeter, “Women who innovate,

initiate or adopt a business activity are women

entrepreneurs.”

Woman entrepreneur can be defined as an

enterprise owned and controlled by a woman having a

minimum financial interest of 51 percent of the capital

and at least 51 percent of the employment generated in

the enterprise to women.

“Women Entrepreneurship” means an act of

business ownership and business creation that empowers

women economically increases their economic strength

as well as position in society. It is the process where

women take lead, organize a business and provide

employment opportunities to others. Women-

entrepreneurs have been making a considerable impact

in all most all the segments of the economy. “Women

Entrepreneur” is a person who denies the role of their

personal needs to participate and be accepted

economically independent. Strong desire to do

something positive is a high-quality women entrepreneur

who contributes to the position values of family and

social life.

The economy of India is witnessing a drastic

change since mid-1991 with a new policy of

liberalization, globalization, privatization initiated by

Indian Government. In India, Rajasthan has great

Entrepreneurial Potential. At present, women

involvement in economic activities is marked by low

work participation rate. Women Entrepreneurship has

gained momentum in last three decades with the increase



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in number of women enterprises and their contribution to

economic growth. In this dynamic world woman

entrepreneurs are an important part of economic

development and social progress. In Rajasthan though

women have played important role in the society, their

entrepreneurial ability has not been tapped due to lower

status of women in the society.

There is need for changing the mindset towards

women so as to give equal rights as explained in the

constitution.

In the words of APJ Abdul Kalama

“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

development of good family, good society and

ultimately good nation”.

When a woman is empowered it does not mean

another individual becomes powerless or is having less

power. On the contrary if a woman is empowered her

competencies towards decision – making will surely

influence her family behavior. Entrepreneurship is

crucial for overall development of any nation and in the

recent years it gained importance with the participation

of women. Women today are more progressive and play

a vital role in fulfilling their economic needs and

attaining social status. Emergence of women

Entrepreneurs in a society mainly depends on changing

social, Psychological, Economic, Cultural dimensions

which invoke a positive effect in their economic

participation of any develop and developing countries.

The educated women do not want to limit their lives in

four walls of the house. They demand equal status from

their partners. However Indian Women have to go a long

way to achieve equal rights and position because

traditions are deep rooted in the society.



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Despite all these hurdles, many women have

become successful in their works these successful

women have made name and wealth for themselves with

their hard work, competence and will power. These

Women stand tall from the rest of the crowd and are

applauded for their achievement in their field. These

women leaders are assertive, persuasive and willing to

take risks. They managed to survive and succeed in this

cut throat completion with their hard work. Open Style

of Problem Solving, Willingness to take risks and

chances, ability to motivate people, knowing how to win

and lose gracefully are features of women entrepreneurs

of Rajasthan. Women Entrepreneurs have become

important players in their entrepreneurial landscape.

Although the number is still small as compared to

businesses owned by men, this is encouraging as it

shows that women no longer adhere to the stereotype

that only men can be wage earners in the family. Besides

numerous obligations assigned to women such as

childcare and doing house work, women can find

success through their own businesses.

Though there have been limitations & obstacles

faced by these women in the past, society have begun to

accept that women entrepreneurs do contribute greatly to

the country’s economy. As such, it is no longer

unexpected to see women heading their own companies

and being successful at the same time the general

mindset has changed so much that woman who juggle

family with careers are looked upon as capable to handle

business independently. Moreover, it is no longer

strange to have business dealings with a female. Woman

constitutes the family, which leads to society and nation,

social and economic development of women is

necessary for overall economic development of any

society or a country. Entrepreneurship is the state of

mind which every woman has in her but has not been



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capitalized in states like Rajasthan in way in which it

should be because of cultural barriers and due to

customs, traditions of India.

Now when women enter the field of

entrepreneurship there are various factors which

motivate her. These factors are education; desire to be

independent, desire to earn money and desire to make

their own identity in the society. Some definitions of

writers for women entrepreneurs are as follows:

“Expect the unexpected and whenever possible, be the

unexpected.”

-Lynda Berry

“The Glass ceiling that once limited a woman’s career

path has paved a new road towards business ownership,

where women can utilize their sharp business acumen

while building strong family ties.”

Erica Nicole (Owner of YFS magazine)

Women are the inherent part of our society and play a

very vital role in the life of a person right from the birth



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