Woman Enteprship Promotion in India

8/2/2019 Woman Enteprship Promotion in India

1/38

CHAPTER IV

GOVERNMENT MEASURESAND INSTITUTIONS

IN SUPPORT OFWOMEN

ENTREPRENEURSHIP


2/38

CHAPTER IV

GOVERHMENT MEASURES ANDINSTITUTIONSIN SUPPORTOF

WOMEN ENTREPRENEURSHIP

Contents1 Support by Govt. of India2 Assistance and Incentives of State Govt.

3 Institutional Support Programmes4 Efficacy of Institutional Assistance

Page 94-127

5 Awareness of Entrepreneurs on Assistance and Schemes6 Opinion of entrepreneurs on economic policy


3/38

CHAPTER IV

As far as the development of women there have beenvarious shifts in the policies of the Government for the last fiftyyears -from the concept of 'weltare' till the 70's to 'development' inthe '80's and now to 'empowerment' m the 90's. A number of Non-Governmental Oqamsations (NGOs) are also working to improvethe Lot of women in the country. Employment, credit facilities,training, awareness generation, income-generating activities etc.have been the major interventions for i m p d g the position ofwomen. The need of the hour is economic independence forwomen. To translate this hope into reality, the Department ofWomen and Child Welfare has taken up various projects directedtowards advancement of women.SUPPORTIVEMMSURE6 OFTHEGO OF NDIA

Governments at the Centre a s well at the State designed anumber of schemes and programmes for the support ofentrepreneurs in general and for women entrepreneurs inparticular. The schemes of the Govt. of India include the Support forTraining and Employment Programme (STEP) aims to raise theincomes ofd omen by updating their ski& in the tradiibnalsectors, such as dairy development, animal husbandry ericultm,handloom and social forestry. Since the inception of the programme


4/38

in 1987 abo ut 3.32 lakh women have been benefited through 6 1projects a s a t the end of March 2000

Assistance extended by Norwegian Agency for Development(NORAD) for training and skill development, a nd also for promotionof self-reliance through the generation of income for women in non-traditional trades. Since 1982-83 when the programme waslaunched, till 31 December 1997, 1.40 lakh women have beenbenefited through 887 projects.

The Department of Rural Employment and Poverty Alleviationunder the Ministry of Rural Development have initiated severalschemes in which 30 to 40 per cent of the benefits are reserved forwomen below the poverty line. The underlying philosophy of theseschemes is to encourage entrepreneurship and self-help amongwomen. The concept of Women's Component Plan' mooted in theNinth Plan document was an important strategy to ensure that notless. than .30 per cent of fundsfbenefits from all developmentsectors should flow to women.

Swarna Jayanthi Gram Swarozgar Yojana Scheme (SGSY),the amended and merged version of the erstwhile Development ofWomen and Children in Rural Areas (DWCRA), Integrated RuralDevelopment program (IRDP) and Training of Rural Youth for SelfEmployment (TRYSEM), was launched in April 1999. It is a holisticcredit-cum-subsidy program, covering all aspects of self-employment. The stipulated 40 per cent reservation for women willbe implemented through the Panchayat Samitis (local self-government).

The Jawahar Rozgar Yojana (JRY) provides facilities forwomen through training and employment. The Indira Awas Yojana,a part of the JRY, aims at providing ho uses free of cost to poor


5/38

people. The houses are allotted to female members, or in the jointnames of the h us ba nd an d wife to enable women to own asset s.

The Government in 1998 launched a new scheme, called theTrade-Related Entrepreneurship ~ s s i s t a n c e nd Development(TREAD). t was designed to generate self-employment for 45,000women in rural an d urban areas. The package involves financialassistance and services through NGOs in the non-farm sector

The National Bank For Agriculture and Rural Development(NABARD),with the objective of meeting the credit needs of the poorlinks banks with self-help groups. About 85 per cent of the self-help groups that linked with the banks are women's groups.

The Scheme for setting up Women's DevelopmentCorporations in States was formulated ,in 1986-87 with a view toidentifying women entrepreneurs, providing them with technicalconsultancy, facilitating availability of credits, promoting marketingof products , strengthening women's cooperatives, arrangingtraining facilities, etc. The scheme was transferred to the Statesector during 1992-93, as per the decision of the NationalDevelopment Council.

Indira Mahila Yojana (IMY) was launched in 199 5 in over 200blocks of India, for the holistic empowerment of women. IMY isbeing implemented in 238 blocks and till now, 40,000 women'sgroups have been formed under the scheme. Of these, 3 ,000 groupswere formed in 1999-2000

Swa-Shakti Project (earlier known as Rural Women'sDevelopment and Empowerment Project) was sanctioned on 16October 1998 a s a centrally sponsored project for a period of fiveyears. The objectives of the project are:


6/38

1. Establishment of self-reliant women's Self-Help Groups(SHGs);

2 . Sensitising and strengthening the institutional capacityof support agencies to proactively address women's needs;

3. Developing linkages between SHGs and credit-lendinginstitutions;

4. Enhancing Women's access to resources for betterquality of life; an d Increased control of women, particularly poorwomen, over income and spending, through their involvement inincome-generation activities.

The Project was launched in 1998, initially introduced in sixStates (Bihar, Gujarat, Haryana, Karnataka, M.P, and U.P) throughthe establishment of self-help groups The project is jointlysupported by International Funds for Agricultural Development' (IFAD) and the International ~ e v e l o ~ m e n tgency (IDA)

Rashtriya Mahila Kosh (RMK),a national credit fund extendscredit facilities to poor and needy women. The RMK has extendedloans to 20,000 self-help groups of women and has a membershipof over 3,00,000. It is instrumenta l in encouraging women to takecontrol of their own development, and has helped build confidencean d political awareness. Till December 2000 the RMK h as been ableto sanction credit limits of more than Rs. 773.6 million, with thehelp of abo ut 68 8 NGOs, which it works through, an d has reachedout to more than 3,49,752 women.

At the initiative of the DWCD, the process of monitoring theimplementation of 27 beneficiary-oriented schem es for women wasreviewed by the Prime Minister's Office. The existing Review


7/38

Committee has been renamed the Committee for Monitoring ofGender Mainstreaming in the Government to reflect the changedfocus.

A task force has been constituted in 1999 to review allexisting legislation and government schemes with a view toenhancing the access of women to national resources and ensuringthat they take their rightful place in the mainstream economicdevelopment. The task force will also chalk out specific programsfor observing the year 2001 a s "Women's Empowerment Year". Thisis one of the most crucial areas of work,tha t has been taken u p bythe Government. The primary aim is to make women economicallyindependent and help them gain full confidence in themselves

The 7 3 I d and 74" Amendments (1993) to the IndianConstitution have served as a breakthrough towards ensuring equalaccess and increased participation in political power structure forwomen. The Panchayatiraj institutions will play a central role in theprocess of enhancing women's participation in public life. The localself Governments will be actively involved in the implementation andexecution of the National Policy for Women a t the grassroots level

The objective, therefore, of the Government is to initiate andaccelerate action to improve access to and control of resources bywomen so that they can take their rightful place in the mainstreamof the nation's social, political and economic life.

Reserve Bank of IndiaWomen units are very often too tiny in size. Institutions are

reluctant to attend loans for very small amounts and demandcollateral securities three or four times of the loan amount. Womenhaving no sufficient securities to offer or no t to take large amounts of


8/38

loans do not get the attention of these institutions. To tackle thissituation and to ensure adequate financial support to womenenterprises the RBI took several initiatives.

The RBI in its action plan for 2001 provided specialprogrammes and strategies for facilitating assistance to women inthe entrepreneurial sector and to att ract more to this sector. Forstrengthening credit delivery to women particularly in the Tiny andSS1 sector, RBI issued directions and an action plan to all thepublic sector banks. (RPCD. PLNFS. BC. No 40/06.02.79/2000-01.Dated December 12, 2000)Action Plan for Strengthening Delivery of Credit to Women

For strengthening credit delivery to women particularly in theTiny and SS1 sector, RBI issued directions an d a n action plan to allthe public sector banks. the action plan consists the followingpoints:- -

(1)Redefining of Banks' policies / Long term plans(i) Banks should redefine it s policies by taking into account

women's requirements in a focused and integrated manner.(ii) Banks should have a Charter for women, which must be

published.(iii) Banks must ensure tha t the benefits un der various

poverty alleviation and employment promotion schemes go to thewomen in the prescribed ratio.(2)Setting up women cells(i) Women's cells should be set u p a t the banks' head office a s

well as in their regional offices where information,


9/38

counselling/ guidance and other credit related semices for womenentrepreneurs a re readily available.

(ii) At the b ranch level, or clusters of b ranches in rural a reas,the bank should have a desk visibly placed in order to providewomen with relevant information and guidefassist them in makingloan applications etc. A s far as possible a well-trained lady staffmember particularly in rural areas should handle the desk.

(iii) Special attention should be given to women in everybranch. One officer in each branch should be designatedexclusively for dealing with cases of flow of credit to women. Banksshould have a target for covering at least 20 women per branch forlending and 20 for training.

(3)Simplification of procedural formalitiesThe application forms, appraisal standards and other

procedural requirements for extending finance to womenentrepreneurs should be simplifie&as far as possible. Banks shouldensure that the managerial staffs assist women entrepreneurs inunderstanding the banks' procedural formalities in a simplemanner. They should also give assistance in the preparation ofproject reports and completion of other paper work.

(4)Orientation of Bank officersfstaff on genderconcernsfcredit requirements of women

(i) Banks should take appropriate measures to ensure tha tthe branch level functionaries do not have traditional bias ofpreferring men to women in financing. For this purpose the bankstaff should be oriented through short term training programmes inwhich a special component on gender concerns can beincorporated.


10/38

duration for its branch managers/staff on different aspects ofhandling credit requirements of women. Banks should also invitemembers of Non- Government Organisations (NGOs) or womensocial workers to these workshops for active interaction so that theproblems being faced by the women entrepreneurs could be betterunderstood by bank staff in a n informal manner.

(5)Publicity campaign for creating awareness aboutcredit facilities

(i) Banks should launch Awareness Programmes/PublicityCampaigns about schemes available for women. Attractive publicitymaterial such as posters, charts, can be specially designed in asimple manne r so tha t women are able to under sta nd it easily. Thepublicity material should be available in different languages andshould be widely distributed particularly in rural and semi-urbanareas. Gender concerns should also be addressed through publicitymaterial viz. slogans on hoardingsfbus shel ters etc.

(ii) For the large numbers of illiterate a nd semi-literatewomen, particularly in the rural and semi-urban areas, the banksshould make efforts to inform them through audio-visualmethods/slides and charts about the different schemes underwhich finance is available. Banks should e stab lish contact with the.Village Panchayats to seek their assistance indissemination/distribution of information material to women in thevillage and for delivery of credit to identified women.

(iii) Banks can also explore the possibility of using the localradio and the television network for disseminating information towomen in the farthest corners of the country.


11/38

(iv) Banks should interact with schools/colleges/universitiesfor publicising schemes and programmes for women.

(v] In the present computer age, bank s should make use ofcreating web- sites through which wider publicity could be givenabout various schemeslcredit facilities available with the bank forwomen entrepreneurs. This would help all sections of the society tohave easy access to such information particularly the young,educated urb an women who are using computers.

(6)Entrepreneurship Development Programrnes/Trainingfacilities for Women

(i) Banks should organise entrepreneurship developmentprogrammes exclusively for women entrepreneurs. For this purposethe banks can contact various Entrepreneurship DevelopmentInstitutes in the country and develop appropriate programmes forwomen in the urban and rural areas.

(ii) Banks should finance training courses for women,particularly in the area of information technology.

(7)Specialised branches for womenBanks should make concerted efforts to open specialised

branches in identified areas for financing women entrepreneurs onthe lines of 881 branches or Agricultural Finance branches. Thespecialised branches should cater exclusively and a t leastpredominantly to the requirements of women entrepreneurs in anintegrated manner.

(8)Motivational strategies to enthuse bank offtcials/staffBanks should use motivational strategies to enthuse their

rnanagersjstaif to achieve targets for women. Their work in this


12/38

area should be given appropriate recognition. Banks can giveannual awards to the 3 best performing branches in achievingtargets p lus providing credit related services to women.

(9)Monitoring systemA monitoring system should be in place for submitting

regular reports on the credit flow to women. It should be an item onthe calendar for Review being submitted to the Board of Directors ofthe bank. RBI should also monitor and give suitable directions tobanks from time to time.

(10)Data collectionSeparate data about credit flow to women is not presently

available. Data should be generated by banks and quarterly reportssubmitted to RBI who should process the information and create aseparate database for women. Data for women should be collectedseparately for amounts advanced through micro-credit, credit tosmall scale

(1 ) Strengthening of existing schemes(i) There should be greater interaction between

NABARDISIDBI and banks. Existing schemes and programmesbeing implemented by them should be further strengthened both interms of coverage as well as volume of credit. Other facilities offeredunder these schemes

(ii) There is no direct alliance between SIDBI an d banks.SIDBI should explore the possibility of having a t ie-up with banksfor women's schemes..


13/38

(12) ncreasing the limit for non-obtention of collateral security(i) Banks insistence on collateral/securities is a major

impediment in borrowing by women. Banks should thereforeimplement the recent measures taken by Government /RBI forincreasing the limit for non- obtention of collateral security fromRs.1 lakh to Rs.5 lakh. Banks may also consider whether loansbeyond Rs.5 lakhs i.e. at least u p to Rs.10 lak hs could be offeredwithout collateral.

(ii) Banks should encourage women entrepreneurs to avail'loans on liberal terms like minimum margin money. The promoters'contribution could be lowered from 25 per cent to 1 0-15 per cent.

13) Involving NGOs/SHGs/Women's Cooperatives(i) Non-government organisations (NGOs) are playing a crucial

role in reaching out to women even in the remotest regions. A largenumber of well known NGOs are operating throughout the country.In many area s smaller NGOs are also working a t the grass rootslevel. Banks can establish contacts with the local NGOs and liaisewith them to identify the needs of women and give credit relatedinformation and guidance services.

(ii) Financial institutions viz. NABARD and SIDBI are alreadyinvolving the Women's self help groups for reaching out to womenentrepreneurs. Banks can also take initiative in working out viablestrategies to work with more Self Help Groups (SHGs) an d women'scooperatives and fuc a yearly target for lending to SHGs.

14) Mahila Rural Co-operative BanksMahila Rural Cooperative Banks on the lines of Mahila Urban

Cooperative banks should be set u p for assisting women in the semi-


14/38

urban and rural areas. RBI may issue licenses for such banksliberally.SUPPORTIVE MEASURES OF THE STATE GOVERNMENT

To overcome the obstacles in the process of womenempowerment, the governments a t the centre an d sta tes providepreferential treatment to women in finding them employment in theorganised sector and also in encouraging, equipping and facilitatingthem to start own units. Various schemes, incentives and facilitiesmade available to registered women entrepreneurs by State andCentral governments are listed in the following paragraphs.

The government provides following.subsidies and incentives:-1. Subsidy for Technical know how & Feasibility Reports2 . Development Plots / Development Areas/ Mini

Industrial Estates3. Incentives for quality Certification4. Margin Money Loan5. Margin Money loan for Non resident Keralites6 . National Equity Fund Scheme (NEF)7 . Sta te Investment Subsidy offered to

a. All new units, tiny, small, medium or large units,included under thrust sectors are eligible for investmentsubsidy @ 15 per cent of fmed capital investment subjectto a ceiling of Rs. 15 lakhs


15/38

b. All new units in the non- thrust sectors shall beeligible for investment subsidy @ 10 per cent of fuedcapital investment subject to a ceiling of Rs.5 lakhs.

c. In the case of industrial uni ts set u p in iduki,Wynad and notified industrial areas like industrial growthcentres and industrial park the eligible subsidy shall be 10per cent of fued capital investment subject to a ceiling ofRs.10 lakhs and all thrust sector units shall be giveninvestment subsidy of 25 per cent of futed capitalinvestment subject to ceiling of Rs.25 lakhs.

d. The investment subsidy for IT industries will be20 per cent of futed capital investment subject to ceiling ofRs.25 lakhs.

e. An additional investment subsidy of 5 per cent ofthe value of fu ed capital investment will be provided fortiny an d SS1 units promoted by entrepreneurs belonging to(a) Women, (b) Scheduled caste and Scheduled tribe, (c)Physically handicapped persons, and (d) Ex-servicemen.The subsidy is limited to 5 per cent of fuced capitalinvestment subject to a ceiling of Rs. l lakh.

f . For new generators and equipment for renewablesource of energy for captive power an additional investmentsubsidy will be provided @ l 5 per cent of the cost ofinvestment subject to a limit of Rs.5 lakh s.

g. Additional subsidy of 10 per cen t subject to amaximum of Rs.25000 will be given for installation ofpollution control devices in diesel generators.


16/38

h. For mini an d micro hydro electric projects set upfor generating power for industrial units

i. Investment subsidy will be 15 per cen t of the totalcost subject to a limit of Rs. 15 lakhs.

8 . State Investment subsidy for Information Technology9. Loan to SC/ST Entrepreneurs10. Credit Linked Capital subs idy scheme for Upgradation of

TechnologyI 1. Rural Artisans Programme ( RAP)

12.Prime Minister's Rozgar Yojana ( PMRY)13. Sworn Jayanti Shahari Rozgar Yojana ( SJSRY)14. Swarna Jayanthi Gram Swarozgar Yojana Scheme (SGSY)

The Scheme was launched in 1st April 1999 by mergingthree existing self-employment schemes viz. (i) Developmentof Women and Children in Rural Areas (DWCRA), (ii)Integrated Rural Development program (IRDP) an d (iii)Training of Rural Youth for Self Employment (TRYSEM. It is aholistic credit-cum-subsidy program, covering all aspects ofself-employment. The stipulated 40 per cent reservation forwomen will be implemented through the Panchayat samitis(local self-government).

15. Income Tax Exemption16. SalesTax exemption

Fully exempted from sales tax for 7 years for unitsstarted after 23-9- 1991. Maximum amount of cxcmption


17/38

limited to 100 per cent of fvced capital investment. Existingunits are also eligible for exemption u p to 100 per cent ofadditional investment on plant and machinery for expansion.

SS1 un its are taxed a t 4 per cent for their sales toGovernment departments, departmental undertakings, andpublic sector units .

SS1 units are taxed at 4 per cent for sale of theirproducts upto Rs.50 lakhs per annum .. Small Scale units are eligible for concessional rateof tax for purchase of Raw materials, components, subassemblies, packing materials etc.

Small Scale Industrial units producing rubberproducts are allowed the concessional rate four percent for twoyears

SS1 units need not pay sales tax on sale ofeducation sector products.

17. Incentive for Growth scheme18. General Excise Exemption19. Credit Guarantee Fund Scheme ( CGFSI)20. Priority in getting power Connection2 1 .Marketing Support and Price preference22. Sick Units Revival Programme (SURP)


18/38

SPECIAL ASSISTANCE FOR WOMEN ENTERPRISESThe incentives said above are offered to all entrepreneurs

including women. The Government of Kerala has focus on promotingentrepreneurship among women through its successive policies andschemes. A s a part of vigorous attem pts for the development ofentrepreneursh ip among women the s tate

Government declared a special package programme calledWomen Industries programme. (WIP) in 1978-79. Considering themost prominent disadvantage of women, lack of access to andcontrol over resources, this is a scheme for providing grant-in-aid towomen to sta rt their own industrial unit.

Kerala is the forerunner in providing special consideration andassistance for attracting women into the entrepreneurial arena. Thehigher rate of literacy and high level of education among women arecongenial for the growth of en trepreneu rsh ip among women.Specialised institutions and special programmes provide strongsupport for the development of women entrepreneursh ip in the state.

For the purpose of this scheme a women industrial unit isdefined as "a small Scale Industrial unit / industry related service ofbusiness enterprise, managed by one or more women entrepreneursin proprietary concerns, or in which she/they individually have ashare capital of not less than 51 per cent as partnerslshareholders/directors of private limited company/ members of co-operating society and with not less than 80 per cent womenemployees. The units, which commenced operation on or after 9-11-1978 and got permanent registration, are eligible to submit theirapplication for inclusion under WIP .


19/38

The schedule below shows the special assistance offered bythe government under W IP scheme.Special Assistances under Women Industries Programme

50 per cent of the cost ofMachinery 1 machinery ,or R s 750 00/-and equipment I which ever 1s less~- - - ~- -~ -~ -Item 1 Rate

-- - - - - l- -I 50 per cent of the cost ofB. Workshop/ I construction or Rs.Grant 1 50000 / - which ever is less . I

Period

For four yearsFirst year 100l per cent of theagreed rent

~~~ ~- - - r - - l

C. Rent of Ibuilding Second year 75per centThird year 50per centFourth year 25per cent

l1 A taperin grant to theI5 For four yearsextent of S. 7501- per! month or salarv actuallv First year 100

t-- ----I

D. Building1 under hire1 purchase- - - -

I Fourth year 25

lF. Stipend to 1 Rs. 500/- per month pertrainees 1 trainee

~ .~ I - - _ --

50 per cent of the hirepurchase charge in . minlindustrial estate will begiven onmaximumof s. 25000/-irant to a

l -I paid -I E Salaries of 1I thefunctionaries l

Second year 75 percentThird year 50 per

l l cent


20/38

Special assistance under Women Industries Programmeinclude :-(a)Investment subsidy a t the ra te of 5 0 per cent (up to Rs.75,000) of the investment on machinery and Equipments, (b)Building subsidy a t the ra te of 5 0 per cen t ( up to Rs. 50,000b)Building subsidy a t the rate of 5 0 per cent ( up to Rs. 50,000) on costof workshop building, (c) Rent of building u p to Rs. 750 per month,(d) Subsidy a t the ra te of 50 per cent of the cost of Buildingpurchased under hire purchase scheme to a maximum ofRs.25,000/ (e)Tapering grant for salaries of the functionaries at Rs.750 per month and (f ) Stipend to trainees a t Rs. 500 per month .

INSTITUTIONAL SU PP O RTA network of organisations is there in the s ta te, which

provides loan facilities a s well as training, consultancy, andmarketing services to the women entrepreneurs. Appendix-I1provides a list of institu tions an d organisations functioning a tdifferent levels for the development of Women Entrepreneurship.Following are the most prominent institutions and the importantservices rendered by them.

A. FINANCIAL ASSIS TAN CES

The following institutions are functioning in the sta te forproviding financial assis tance to women en trepreneurs .

1 . Kerala State Women's Development Corporation(KSWDC)

2. Small Industries Development bank of India ( SIDBI)3 . The National Small Industries Corporation Ltd. ( NSIC)4. Khadi & Village Industries Commission ( KVIC)


21/38

5. Kerala Khadi an d Village Industries board ( KKVIB)6 . National Bank For Agricultural And Rural Development

(NABARD)7 . Kerala Financial Corporation ( KFC)8 . Kerala State Development Corporation For SC/ST Ltd.9. Kerala Small Industries Development Corporation Ltd.

(SIDCO)10. Coconut Development Board11. Bank Of India12. State Bank Of India

B.CONSULTANCY SERVICES

Lack of access to information is a major barrier of theSmall scale sector especially of the women entrepreneurs. In theinitial stage of formation of a uni t the most important problems areidentification of a feasible and viable project, selection of the suitabletechnology etc. The following institutions are engaged with guidanceand consultancy services to the Small sector in the State.

1. Kerala Industrial and Technical ConsultancyOrganisation (KITCO

2 . Kerala State Electronics ' Development Corporation(KELTRON)

3. Coconut Development Board4 . The Rubber Board


22/38

C. ENTREPRENEURSHIP DEVELOPMENT AND TRAINING

The State enjoys the credit for high rate of female literacy andfemale development index in the country. Even though thedevelopment index of women in the state is comparable to that ofdeveloped countries their participation in the entrepreneurialscenario is very low (about 17 per cent).

With the objective of promoting women entrepreneurship anumber of institutions are functioning in the State to impartawareness on opportunities and to provide skill based training towomen.1. District Industries Centres (DICs)2. Centre For Management Development (CMD)3. Kerala Sta te Women Development Corporation ( KSWDC)4. Khadi And Village industries commission ( KVIC)5. Kerala State Electronics Develdpment Corporation Ltd.(

Keltron)6. Rubber Board7. The Kerala State Development Corporation for Scheduled Caste

an d Scheduled Tribes.8. Science And Technical Entrepreneurship Development

Programme ( STED)9. Small Entrepreneurs Promotion and Training Ins titute.10.Small Industries Development Organisation ( SIDO)11.Small Industries Service Institute (SISI)


23/38

D.ASSISTANCE FORMARKETING

Success of any manufacturing enterprise will depend onits ability to market its products. One of the major barriers in theoperation of women enterprises is marketing outlet. Marketing isconsidered a s the most important entrepreneurial function based onwhich the entire success of the en terprise will be determined. A briefsketch of the organisational support for marketing the products ofwomen enterprises is given in the following parag raphs.

1 . National Bank For Agriculture And Rural Development(NABARD)

2 . Kerala Small Industries Development Corporation Ltd.(Kerala SIDCO)

3. Marketing CDS products.Kerala SIDCO has several schemes for the marketing of

products produced in the SS1 sector. It has launched a specialscheme for the marketing of products produced in the CommunityDevelopment Societies with special preference for products producedby women enterprises. SIDCO collect quality products from CDSunits and marketing them to the end consum ers.

SIDCO on behalf of the Small Scale Industrial units inthe state will participate in tenders floated by Central and Stategovernment departments and organisations.E. INFRASTRUCTURE

State provides special care for the development ofinfras tructure for the development of women enterprises. The effortsof the state in this direction are supplemented by the Centralscheme called "Integrated infraslruclure development" (IID). .


24/38

National Programme for Rural industrialisation (NPRID) is anotherCentral Govt. Scheme to set up Industrial clusters in Rural andbackward areas.

1. Kerala Infrastructure Development Corporation(K1NFRA)-It was set up in 19993 with the prime responsibility for the

development of industrial Infrastructure in the State. KINFRAdevelop Industrial Zones, Townships, an d Parks so a s to provide allingredients and facilities for the setting up of industrial unit inspecific sectors.

2. Industrial parksKINFRA is developing sector and industry specific

'parks' based on the availability of raw material and other resourcesin the region. World class infrastructure facilities and ready mademanufacturing environment are provided in these industrial parks.Industrial parks enable easy set u p of uni ts with minimum time andcost.

3.lndustrial parks for Small scale Sectors.Under the IID scheme, KINFRA provide Small Industries

Parks exclusively for Small scale Industries.

2. Small Scale industries Development Corporation (Kerala SIDCO)It is the nodal agency for the development of small scale

industries in the state. It is in charge implementing the scheme ofone industrial park in each. It is entrusted with the responsibly


25/38

for the allotment of industrial sheds an d spaces for setting u p ofunits in mini lndustrial Estates, Industrial Esta tes.3. Women Entrepreneurs Development Cells ( WEDC)

District Industries Centres, Department of industries andCommerce, Rural Banks, and Small Industries Service Institute haveseparate Women Entrepreneurship Deyelopment Cell. The chiefobjectives of the cell is the motivation of women entrepreneurs byextending all kinds of support and ass istance, information andadvice, technology an d finance, supply of raw materials andmarketing of finished goods etc.NATUR E AND EFFICACY O F INSTITUTIONAL ASSISTAN CE

The network of institutions established u nder the auspiciousof government to support women entrepreneurs in the state showsth at a number of institutions are functioning with the sameobjective and to be served the same target group. This multiplicityof institutions does not help women to better their performance.Even though institutions have been developed for assistance intechnological upgradation, consultancy, training, marketing etc.survey revealed that assistance provided by the institutions hasbeen limited to financial assis tance and training a t the time ofpromotion of the unit. Table 4.1 shows the institutional supportavailed by entrepreneurs in the sample.

Table 4.1 shows the natu re of governmental and institutionalsupport availed by women entrepreneurs in the state. Out of 330units in the sample, 82 units (25 per cent) did not received anyassistance but waiting for monetary incentives offered by thegovernment. All the remaining 248 un it s (75 per cent) had receivedfinancial assistance from the government. Subsidy, tax relieves and


26/38

incentives are the main financial benefits availed by theentrepreneurs.

Table 4.1Institutional Assistance Received By Women Entrepreneurs

/ FinancialType of assistance

received

1 TrainingNo of units

I Infrastructure I 20I

1 ConsultancyMarketing

l Technology

25

No Assistance availed I

per cent

Source: Survey data

Entrepreneurial Training and ~ev eloprn ent rogrammesThere is a net work consist of about eighty different

institutions functioning in the state for providing entrepreneurialtraining to entrepreneurs. Special training programmes areconducted by these agencies and trainees are given special stipendto attract them to the programme. Table 4.2 shows the distributionof entrepreneurs attended Entrepreneurial Development an dTraining programmes and their opinion on such training.


27/38

A s revealed by the table 4.2 out of 330 sampled units, 202(61.2 1 per cent) entrep reneurs have attended Training programmesconducted by State sponsored institutions. Out of the 202entrepreneurs attended training, 24.26 per cent found that theprogramme was highly beneficial. When 57 out of 202 (28.22 percent) ent repreneurs experienced the training as not beneficial, 96entrepreneurs (47.52 per cent) experienced the programmes wereuseful and beneficial.

Table 4.2Opinion of the Entrepreneurs about the training programmes

Note : Figures in brackets show percentage to grand total)

i Sta tus of1 EDP, Opinion onTrainingHighly beneficial

-BeneficialNot beneficialTotal (Trained)

t

Untrained

Total

Training

Trained

128(38.79)

'330(100.00)

No ofentrepreneurs

499 657

202(61.21)

Source: Survey da ta

PercentageTo s ub total

24.2647.5228.22100.00


28/38

Among the sampled entrepreneurs, 202 en trepreneurs 61 percent have attended training programmes. Even though Marketing isone of the major problems, of women enterprises only 25 unit s (8per cent) received some kind of as sista nce for marketing theirproduct, 12 units obtained technical advice and assistance, 20units (6 per cen t) took advantage of infras tructure facilities and 13units (4 per cent) received consultancy services provided byinstitu tions in the government sector. Majority of th e un its (75.1 5per cent) have enjoyed assistance provided by the stat e bu t theass istances were mainly confined to financial assistance.

Table 4.3Distribution of entrepreneurs did not participate in EDPs

And Reasons for Non-participation

I Not aware about the programme I 28 1 21.71 1I It was not compulsory I 47.29 I

PercentageReason for not attending

Believed that they are notbeneficial

No ofunits

r d n o t get a chance- p pT o t a l

I

128 100.00Source: Survey data .

Majority of the sampled en trepreneurs attended EDPs beforethey start the unit. The entrepreneurs who did not participate in


29/38

the training programme had different reasons for their non-participation. Table 4.3 shows the reasons for non-participation ofentrepreneurs in EDPs. A s shown in the table above out of the 128entrepreneurs who did not participate in any training, 2 1.71 percent did not aware about the program. Majority of them i.e. 61entrepreneurs (47.29 per cent) did not participate in the trainingprogramme because it was not compulsory.

A s revealed in the table, when 16 ent repreneurs did not get achance, another 24 (18.60 per cent) were unwilling to participate onthe understanding tha t such programmes are not beneficial a t all.It is seen th at the majority of the women entrepreneurs attendedbecause attending such programme was compulsory for getting thebenefits under any scheme offered by the Government.

It is found that lack of awareness about the programme orabout the benefit of the programme is a prominent reason for notattending any training programme by the entrepreneurs. This shedlight on the limitations of existing policies and shows the need forproper propagation of the EDPs.Difficulties experienced in getting government assistance

During the study it was observed that the entrepreneurs hadto met with various difficulties in obtaining assis tance offered by thegovernment. Most of them had the complaint on delay an d apathy ofthe officials. Lack of transparency in formalities an d unawareness ofthe details of schemes and programmes were the major causes forsuch difficulties.

Table 4.4 presents the difficulties experienced byenlrepreneurs in obtaining governmenta1,assistance.


30/38

Distribution of units experienced difficulties in gettingAssistance and n ature of difficulties

Description TotalunitsPercentage to

subtotals

Units availed benefits 1 248 I 75.15I I

No benefits availed

No difficulties experienced

2. Corruption of officials 1 89 I 58.55

8 2

Experienced difficultiesNature of difficulties1. Formalities

24.85

97

P4. Apathy of departmentstaffTotal unit s experienceddifficulties

38.96152

126

3. Delay in gettingassistance

Source: Survey data .

61.04

82.89

112

A s seen in the table Out of 33 0 sampled 248 units (75.15 percent) obtained benefits of governmental schemes an d programmes.While 97 units (38.96 per cent) out 248 u ni ts did not experience anydifficulty to get these benefits, 152 unit s ie. 61 .04 percent of thosewho received the benefits had to face different problems.


31/38

Complicated formalities (82.89 per cent ) and Delay in getting thebenefits (73.68 per cent ) were the main complaints. Even formalitiesare to be strictly followed to avoid corruption and misuse,respondents remarked, lack of transparency and unawareness offormalities lead to delay and corruption.

A s per the Table 4.4 above out of the 152 entrepreneurs, whoexperienced difficulties, 58.55 per cent (89 entrepreneurs) had thecomplaint on corruption of officials at different levels. Another 103entrepreneurs (67.76 per cent) had to face difficulties to obtainbenefits because of the apathetic attitude of department officialsfrom whom they expected supportive guidelines. Majority of theentrepreneurs had experienced difficulties in obtaining theassistance offered by the government. It is found that most of thedifficulties were due to their unawareness on programmes and lackof transparency in formalities.Awareness of entrepreneurs on Governmental Measures andInstitutional Support

Success of any programme will depend upon the level it hasreached the target group. Awareness is a precondition for availing.Many of the schemes do not reach the target groups because of theunawareness of details. Table 4.5 shows the level of awareness ofrespondents.

Lack of transparency in procedures causes unnecessaryconfusions and Knowledge (Information) of environment andopportunities improve competitiveness. IQ Kerala unfortunately mostof the women entrepreneurs are found not aware on these aspects.Exhibit-7 shows the level of awareness of women entrepreneursabout supportive measures provided by the Government.


32/38

Entrepreneurs awareness on governmen tal sc

Not

- P-O Fully aware D Not fully aware O Not awarep---


33/38

Table 4.5Awareness of ent repreneurs about governmental support /

programmesper centLevel ofawareness

Aware 7 1 l 2 1.52 lNo of Units

Not awarel Not Fully aware l 176 l 53.33 I

Total l 330 l 100.00 lSource: Primary dataOut of the 330 respondents only 71 (21.52 per cent ) units

were aware about different schemes of the government designed toassist women entrepreneurs. In the sample 83 (25.18 per cent )persons were absolutely unaware about various schemes of thegovernment. Majority of the entrepreneurs 176 out of 330 (53.33percent ) had came to know that the government have several schemesand ha s sponsored various institutions to ass ist the women bu t theyare not fully aware about the details of such programmes.

It is found that though government has sponsored severalprogrammes for the development of entrepreneurship among women,for majority of the entrepreneurs the s tate ass istance is limited to amarginal amount of financial ass istance. A Major reason for poorresponse to State sponsored programmes seem to be the lack ofawareness,


34/38

Sustainability of women enterprises and Governmentalsupport

It is true that the Government has several programmes for thesupport of mall entrepreneurs in general and women entrepreneursin particular. A s seen above most of the government measures areaimed a t providing financial assistance to promote new enterprises.

Majority of the Women entrepreneurs has availed thefinancial assistance offered to them. If these units could not su stainthat will lead to block of resources as well as futile deployment of theexchequer.

Table 4.6Distribution of units received s tate assistance and

sustainabilityI Sustainable

Description Units centAssistances 104 4 1.94receivedNoassistance / 31 1 37.80receivedTotal 135 40.9 1

Source : Survey dataThe result of Chi square test:

UnsustainableUnits Units

cent

Calculated value of Chi-square= 0.50957, Table value = 3.841455For d. = 1 at 0.05 level of significance, shows that the difjference isnot significant


35/38

Exhibit 8

Governmental Support and Sustain

/DUnsustainabie 1

GovernmentalSupport


36/38

In this context it will be imperative to examine the efficacy ofgovernmental ass istance to support the sustainability of womensector. As clear from the table out of 330 unit s, 248 un its havereceived Sta te assistances. Among them 104 uni ts (41.94 percent)were found sustainable while 144 un its (58 .06 per cent) were foundnot sustainab le. When ou t of 8 2 uni ts who did not receive anyassistance 31 uni ts (37.8 per cent) were found sustainable, theremaining 5 1 uni ts (62.2 per cent ) found unsustainable.

Hence in terms of absolute figures those who receivedassistance found more sustainable. However, on statistical analysisit was proved this difference was not significant. The nullhypothesis "There is no significant difference in the rate ofsustainability between entrepreneurs received and not receivedgovernmental assistance." has been tested an d statistically proved.

Awareness and opinion of women entrepreneurs on new economicpolicy

A s a part of economic reforms Government of India had initiatedmany programmes to assist the small-scale sector. At the same timeopening of the door for global market and withdrawal of protections tothe small scale sector has paused so many threats and challenges tothe Small business Units. The governmental measures were claimed atimproving the competency of the small scale sector and equip them tocompete in the global market. However the study shows that theeconomic reforms and globalisation di d 'n o t make any impact in thewomen sector. Table 4.7 shows the opinion of entrepreneurs.


37/38

Table 4.7Opinion of Entrepreneurs about the impact of liberalisation and

globalisation

A s revealed by the table, out of the 330 respondents , only 26 (7.87Per cent) believed that Globalisation is helpful and opened new

Percentage7.87

--Opinion of EntrepreneursI -[ Offer more opportunities (Conducive)

1lI Has more negatlve impacts (detrimental)-- -

No significant impact (Neutral)Don't knowTotal

opportunities for survival and growth of their uni ts . But 74respondents had the opinion tha t the reformations an d Globalisation isdetrimental to the survival of small scale sector. But 15.76 Per cent (52units) of the sampled entrepreneurs did not experience any significantimpact on their field of activity.

Units26

It is found th at Majority of the sampled entrepreneurs (178 ie.53.94 Per cent) frankly told that they do not know the details ofreforms and the impacts of globalisation. It is found that majority

Source survey da ta /

7452178330

of the ent repreneurs are not fully aware abou t the details of neweconomic policies an d the impacts of globalisation on theirbusiness.

22.43 -15.7653.94100.00

On analysis of the efficacy of supportive measures andpolicies it is found that:


38/38

State support measures ar e mainly of financialassistance designed to promote new un it s an d Majority of the womenunits have availed these facilities

. The state assistance was found beneficial toentrepreneurs. But it was found not sufficient a s it is statisticallyproved that there is no significant difference in the sustainability ofentrepreneurs who have availed assistance .. It is found that the existing system of state assistance isnot sufficient to support sustainability of women enterprises.

The above paragraphs sufficiently persuade the vigorousattempts of Governments (both a t Centr,e and Sta te) to protect andpromote women entrepreneurship. However the multiplicity ofinstitu tions and lack of transparency / complicate procedures indepartm ental dealings are barriers in the implementation of variousschemes of the government.

Governmental efforts are mainly directed towards thepromotion of new units. It found th at there i s the need for properconsideration for improving sustainability as well. The bureaucratsalways hold the cards close to their chest. Lack of information,procedural complications and inherent nature of laziness set theschemes back in implementation. There is no proper agency for theco-ordination of governmental activities and to integrate with NGOactivities.

Planned and systematic efforts and policies are yet to bestarted in the State not only to face the negative implications ofliberalisation and globalisation but also to tap all the possible

Woman Enteprship Promotion in India

Documents

Transcript of Woman Enteprship Promotion in India