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Review of literature



Chapter 1

INTRODUCTION: The entrepreneur is commonly seen as an innovator a generator of new ideas, and business processes. Management skill and strong team building abilities are often perceived as essential leadership attributes for successful entrepreneurs. Reich considers leadership, management ability, and team-building to be essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en General (1755) and Jean-Baptiste Say in his Treatise on Political Economy. Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. A growing body of work shows that entrepreneurial behavior is dependent on social and economic factors. For example, countries with healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunity-driven rather than necessity-driven women entrepreneurs.

OBJECTIVE 1. To study role of entrepreneur. 2. To study contribution of Entrepreneur to National Economic Growth. 3. Challenges and opportunities for women entrepreneur.

RESEARCH METHDOLOGY This research has been based entirely on secondary data sources which were subject related the source used were books, journals, newspapers and website.

The Role of the Entrepreneur

By understanding place in the economy, one can better position for success. Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunity in any economy. The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities. Because it's entrepreneurial energy, creativity and motivation that trigger the production and sale of new products and services. It is the entrepreneur who undertakes the risk of the enterprise in search of profit and who seeks opportunities to profit by satisfying as yet unsatisfied needs. Entrepreneurs seek disequilibrium--a gap between the wants and needs of customers and the products and services that are currently available. The entrepreneur then brings together the factors of production necessary to produce, offer and sell desired products and services. They invest and risk their money--and other people's money--to produce a product or service that can be sold at a profit. More than any other member of our society, entrepreneurs are unique because they're capable of bringing together the money, raw materials, manufacturing facilities, skilled labor and land or

buildings required to produce a product or service. And they're capable of arranging the marketing, sales and distribution of that product or service. Entrepreneurs are optimistic and future oriented; they believe that success is possible and are willing to risk their resources in the pursuit of profit. They're fast moving, willing to try many different strategies to achieve their goals of profits. And they're flexible, willing to change quickly when they get new information. Entrepreneurs are skilled at selling against the competition by creating perceptions of difference and uniqueness in their products and services. They continually seek out customer needs that the competition is not satisfying and find ways to offer their products and services in such a way that what they're offering is more attractive than anything else available. Entrepreneurs are a national treasure, and should be protected, nourished, encouraged and rewarded as much as possible. They create all wealth, all jobs, all opportunities, and all prosperity in the nation. They're the most important people in a market economy--and there are never enough of them. As an entrepreneur, extremely important to world. Ones success is vital to the success of the nation. To help you develop a better business, one that contributes to the health of the economy, What opportunities exist today for you to create or bring new products or services to your market that people want, need and are willing to pay for? What are your three best opportunities? 1. Identify the steps you could take immediately to operate your business more efficiently, especially regarding internal operating systems. 2. Tell yourself continually "Failure is not an option." Be willing to move out of your comfort zone, to take risks if necessary to build your business. 3. Use your creativity rather than your money to find new, better, cheaper ways to sell your products or reduce your costs of operation. What could you do immediately in one or both of these areas? 4. Imagine starting over. Is there anything you're doing today that, knowing what you now know, you wouldn't get into or start up again? 5. Imagine reinventing your business. If your business burned to the ground today, and you had to start over, what would you not get into again? What would you do differently? Brian Tracy is the "Success Secrets" coach at command one of authorities on entrepreneurial development. He's produced more than 300 audio and video learning programs that cover the entire spectrum of human and corporate performance through his company, Brian Tracy International.


Successful businesspeople have many traits in common with one another. They are confident and optimistic. They are disciplined self starters. They are open to any new ideas which cross their path. Here are ten traits of the successful entrepreneur. 1. Disciplined These individuals are focused on making their businesses work, and eliminate any hindrances or distractions to their goals. They have overarching strategies and outline the tactics to accomplish them. Successful entrepreneurs are disciplined enough to take steps every day toward the achievement of their objectives. 2. Confidence The entrepreneur does not ask questions about whether they can succeed or whether they are worthy of success. They are confident with the knowledge that they will make their businesses succeed. They exude that confidence in everything they do. 3. Open Minded Entrepreneurs realize that every event and situation is a business opportunity. Ideas are constantly being generated about workflows and efficiency, people skills and potential new businesses. They have the ability to look at everything around them and focus it toward their goals. 4. Self Starter Entrepreneurs know that if something needs to be done, they should start it themselves. They set the parameters and make sure that projects follow that path. They are proactive, not waiting for someone to give them permission. 5. Competitive Many companies are formed because an entrepreneur knows that they can do a job better than another. They need to win at the sports they play and need to win at the businesses that they create. An entrepreneur will highlight their own companys track record of success. 6. Creativity One facet of creativity is being able to make connections between seemingly unrelated events or situations. Entrepreneurs often come up with solutions which are the synthesis of other items. They will repurpose products to market them to new industries. 7. Determination Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for success. They are determined to make all of their endeavors succeed, so will try and try again until it does. Successful entrepreneurs do not believe that something cannot be done.

8. Strong people skills The entrepreneur has strong communication skills to sell the product and motivate employees. Most successful entrepreneurs know how to motivate their employees so the business grows overall. They are very good at highlighting the benefits of any situation and coaching others to their success. 9. Strong work ethic The successful entrepreneur will often be the first person to arrive at the office and the last one to leave. They will come in on their days off to make sure that an outcome meets their expectations. Their mind is constantly on their work, whether they are in or out of the workplace. 10. Passion Passion is the most important trait of the successful entrepreneur. They genuinely love their work. They are willing to put in those extra hours to make the business succeed because there is a joy their business gives which goes beyond the money. The successful entrepreneur will always be reading and researching ways to make the business better. Successful entrepreneurs want to see what the view is like at the top of the business mountain. Once they see it, they want to go further. They know how to talk to their employees, and their businesses soar as a result.


An entrepreneur can be regarded as people who has the initiative skill and motivation to set up a business or enterprise of his own and who always look for high achievements. He is the catalyst for social change and works for the common good. They look for opportunities, identify them and seizes them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake risks in order to achieve their goals. The role of an entrepreneur in economic development is to bring about growth. An entrepreneur can introduce new ideas into a fledgling economy that can help the country grow. For example, the introduction of capital into the area that allows business to expand and grow. Entrepreneurs may also introduce tried and true ideas from other countries into developing countries in attempts to bring the country into modern times. The exact process by which this will occur varies by the needs of the country, the supplies of the country, and the cost versus financial ability of the country or the entrepreneur.

Entrepreneurship and Economic Development

Entrepreneurship helps in the process of economic development in the following ways : 1 .Employment generation

Growing unemployment particularly educated unemployment is the problem of the nation. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight the evil of unemployment.

2) National Income:

National Income consist of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurism are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income. 3) Balanced Regional Development:

The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development. When the new entrepreneurism grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the Development of backward regions.

4) Dispersal of economic power :

Industrial development normally may led to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies.

Developing a large number of entrepreneurism helps in dispersing the economic power amongst the population. Thus it helps in weakening the harmful effects of monopoly. 5) Better standards of living :

Entrepreneurers play a vital role in achieving a higher rate of economic growth. Entrepreneurism are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. When the price of the commodies decreases the consumers get the power to buy more goods for their satisfaction. In this way they can increase the standard of living of the people.

6) Creating innovation :

An entrepreneur is a person who always looks for changes. apart from combining the factors of production, he also introduces new ideas and new combination of factors. He always try to introduce newer and newer technique of production of goods and services. An entrepreneur brings economic development through innovation.

Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short, the development of the entrepreneurship is inevitable in the economic development of the country.

7.Effective utilization of resources :

Entrepreneurship is all about putting to better use the resources which are considered to be of low value with an aim of earning income. An entrepreneur comes up with ideas of how to use what others may consider waste. This improves the economy of a country through taxes and creation of jobs which improves the standard of living of the beneficiaries. The Kenyan sisal plant is, for example, being used by small scale entrepreneurs to weave quality bags such as ciondo, table mats, lamp shades etc. These items sell internationally.

8.Increase in per capita income :

Economic growth is measured in terms of a sustained increase in real income. It is the entrepreneurial communities who complement and supplement the economic growth increase per capita income by identifying and establishing profitable business ventures.

9. Growth of infrastructural facilities :

Entrepreneurs help in the growth of infrastructural facilities such as roads, bridges, buildings, factories, etc. which are the cornerstones of economic growth. Establishment of factories and industries in a particular locality presupposes the growth of infrastructural facilities. 10. Export of handicraft items :

Entrepreneurs play a significant role in producing and exporting handicraft items. They generally use the local traditional skill, traditional technology, local knowledge and experience for producing traditional art and craft and handicraft items. Nowadays, such items are on demand in foreign markets - jewelleries, carpets, stone carvings, handbags such as the world famous ciondo, table mats, etc. They are both exported to foreign markets and sold locally at markets such as the Maasai Market in Kenya, which has become immensely popular with foreigners, as well as the local people, 11. Promotion of technology:

A few years ago, the Jua Kali sector in Kenya came up with new technology for making gas burners (jikos) that use bio fuel from cow dung. These jikos are made from locally available materials that are truly affordable to the low income earners even at the village level, and the gas is produced through a real easy process. This has improved many homes since the cost of fuel has become affordable for them. A particularly recent innovation in the same line is the solarpowered LED lantern by a young 2010 CNN Kenyan nominee, Evans Wadongo who was rated among the 2010 top 10 CNN Heroes. The thinking behind this lantern is to help light Kenyan rural homes and save on fuel costs, keep eye problems caused by smoke from tin or bottle Laterns at bay and conserve the environment. 12. Export promotion :

Entrepreneurs produce high quality products that attract an unusually wide market. Some of their goods are sold in the international markets thus bringing foreign exchange to Kenya.

Entrepreneurs from other countries, through exchange programmers, bring their goods here in Kenya to sell in organized exhibitions. This gives an opportunity to the local entrepreneurs to learn and exchange new ideas with their counterparts from different countries. There are also Kenyan entrepreneurs who have identified attractive markets in foreign countries to sell Kenyan products and culture. One such Kenyan is Ibrah, who is operating a successful ugali -nyamachoma resort in USA, a favorite dish for most whites there.

13. Capital formation :

Capital formation is the most crucial element for economic growth. It is always necessary to step up the rate of capital formation so that the economy accumulates a large stock of machines, tools and equipment which can be geared into production by the entrepreneur. Besides, capital formation in the economy may be brought about by the formation and up-gradation of skills of human capital. This is in terms of knowledge and skills which can be utilized to raise the level of productivity whereby economic growth can be accelerated.

14.Empowerment of women through enterprise:

Women entrepreneurs such as Mary Okello of Makini Group of Schools, Esther Passaris of Adopt A Light are the prime movers of women empowerment. In this context, empowerment through enterprise involves access to resources and markets, actual ownership and active control. These things lead to equity and equality among men and women and act as a lever for social stability.

15. Conservation agent:

Entrepreneurship allows for maximum utilization of natural resources. Mr. Peter Ruigu Kirugi of Red Hill farm, Limuru, in conjunction with the GTZ project, has turned cow waste into a profitable venture. He put up a 32 cubic meter biogas plant in March 2010 to utilize the dung Produced by his dairy herd.

The biogas promotion, pioneered by Promotion of Private Sector Development in Agriculture (PSDA), enables dairy farmers to get better value from the dung produced by their cows, as it is First used to produce energy source before it is used as manure.

Biogas can replace all kinds of energy sources like LPG, firewood, charcoal and electricity. Entrepreneurship promotes environmental friendly technologies like biogas digesters, energy saving stoves which use less firewood and also save time and money for the user, solar-powered LED lanterns, like that being developed by the 2010 CNN Heroes nominee, Evans Wadongo, etc

16 Induces Backward and Forward Linkages: Entrepreneurs like to work in an environment of change and try to maximise profits by innovation. When an enterprise is established in accordance with the changing technology, it induces backward and forward linkages which stimulate the process of economic development in the country. 17 Facilitates Overall Development: Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialization is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area. Entrepreneurship plays a significant role in the country's development. According to Harbison, entrepreneurs are prime movers of innovation. Sayigh describes entrepreneurship as a dynamic force. Indeed, an entrepreneur is the person who perceives a business opportunity and converts it into a Viable business plan culminating into a business venture ultimately.

Need for Entrepreneurship Development

Economic development essentially means a process of upward change whereby the real pr capita income of a country increases over a period of time .Entrepreneurship has an important role to play in the development of a country. It is one of the most important inputs in economic development. The number and competence of entrepreneurs affect the economic growth of the country.

The economic history of the presently advanced countries like USA, Russia and japan supports the fact that economic development is the outcome for which entrepreneurship is an inevitable cause. The crucial and significant role played by the entrepreneurs in the economic development of advanced countries has made the people of developing and under developed countries conscious of the importance of entrepreneurship for economic development. It is now a widely accepted fact that active and enthusiastic entrepreneurs can only explore the potentials of the countries availability of recourses such as labor, capital and technology.

The role of entrepreneurs is not identical in the various economies. Depending on the material resources, industry climate and responsiveness of the political system, it varies from economy to economy. The contribution of entrepreneurs may be more in favorable opportunity conditions than in economies with relatively less favorable opportunity conditions.

Chapter 2 Review of literature


Entrepreneurship are the lifeblood of any economy, more so in the developing economy. Entrepreneurship is a core sector which can be developed in a big way. Entrepreneurship play a critical role in the growth of any society, particularly in fast developing country like India. It has been increasingly realized that enterprising women has vast entrepreneurial talent which could be harnessed so as to convert them from the position of Job seeker to Job giver.

2.2 Passion is the Secret: Indian Finance CEO Naina Lal Kidwai

In the world of finance, Naina Lal Kidwai is undoubtedly one of the most powerful and influential persons in the world. The secret, she reveals, is her passion for work. We need to be passionate and driven to achieve any goal we choose, she says. We need to push the limits of achievement and better our performance all the time. I think we should be engaged in the profession of our choice rather than just work hard in our chosen work area. We need to literally set ourselves on fire with our objectives. Kidwais own career is an excellent example of her principles. After obtaining a bachelors degree in economics from Delhi University, she went on to get her masters in business administration from Harvard Business School in 1982. She returned to India to work with Morgan Stanley and initiated the merger of JM Financial and Morgan Stanley in India in 1998. In 2002 she became vice chairman and managing director for HSBC Securities and Capital Markets India Private Limited, in 2006 she became CEO, and in 2009 she became the groups country head. Her unwillingness to stay complacent is what fuels her success. She is a shining example of what one can do with focus, passion, and determination.

2.3 Government measures populist in nature, not to help economic crisis: Naina Lal Kidwai, President, FICCI
In an interview with ET NOW, Naina Lal Kidwai, President, FICCI, gives her outlook on the GDP figure of 4.4%. Excerpts: 4.4% is the headline GDP figure for Q1, is that too bad to start with? The 4.4% figure was not a huge surprise. There was an expectation, at least on my front, that it would be somewhere between 4.3 and 4.6. The manufacturing data is of course worrying and I believe that there is room for the right policy action. The trouble is that the actions we have taken as in the announcements on the Food Security Bill and the Land Acquisition Bill can spell an economic backlash. We need to take positive steps, in terms of ensuring the rupee starts exhibiting export competitiveness. I believe there is much to be done. On the import side, other than gold imports, we still have to take material action in the area of substituting coal imports and our energy bill with domestic gas supply, looking at renewable sources of energy and providing incentives to industry to go into the so called import substitution measures. We are having knee jerk short-term reactions, some of which are required but not all of which are. Simultaneously, we have announced medium-term measures because they will change perception and will have the actual effect of bringing the current account deficit down and ensure as a result that our fiscal also stays in control. The finance minister has assured us that the fiscal deficit will be stemmed at 4.8%, but what about the next year? How do these numbers measure up and how would that impact our fiscal deficit? So, I fear that the announcements have actually demonstrated that the actions we are taking are more of a populist nature, not with an eye on fiscal or indeed on the economic crisis. We need to take up the solutions that are staring us in the face, namely the GST, for which we need a political consensus or indeed make sure that these stuck projects which CCI has cleared, actually begin to kick start and get cranked up into outcomes and performance.

You represent India Inc. The question why Indian industry is not investing? Is it because of high interest rates or is it also because there is a lot of political and policy uncertainty. But the government seems to be making the right noises around the economic decisions. Why is it that the confidence has not been won as far as peers from Indian industry are concerned? Why is Indian industry not investing? Indian industry needs an enabling environment which it sees as friendly for investment and uncertainty never helps - uncertainty in terms of tax regimes, uncertainty in terms of regulation and uncertainty now in terms of the way the rupee trades for those that have on the one hand

borrowings in foreign currency or on the other, those that are dependent on imports are clearly getting affected by rupee that is depreciating. So, the environment as a whole is an issue. Now, I should also qualify this by saying that numbers we see are made up of lot of moving parts including certain aspects at the state level and the story fortunately at the state level is not all grim. There are investments happening in some states, too few, but the fact is there are some states which are still seen as attractive destination. There are some industries that continue to do well - the IT sector is a classic case which will benefit from the depreciating rupee and also pharmaceutical where we have large exports and they are in fact a major part of their revenues, they will benefit but the issue is that for new investment to happen, for investment to happen in existing companies taking capacity enhancements forward -- on the one hand you need demand that fills existing capacity so, do not forget there was a lot of investment in capacity accretion that happened not all of which is utilized now because demand itself has slowed down and on the other high interest rates and the vitiated investment environment are not in fact leading to investment in itself. Sentiment is a very important part of the way investment behaves and sentiment right now is just not positive but I do believe it can change, I do believe that we have at the end of the day the right skills and labor available, we do have capital, we do have ways to ensure that this happens. The issue really is we need to take and ensure that the measures that are required to make this happen and I mentioned some of these earlier. But if you look at the efforts that are being made by the government, they are much more around FDI. What we need is investment in the domestic market to come back and it is not just about FDI, it is about domestic industry going back into investing and feeling good about investing in our country.

2.4 India Inc demands rate cut as IIP contracts for second month in June Aug 13, 2013 CII FICCI IIP Interest rate cut
With IIP contracting for the second month in June, India Inc today demanded a cut in interest rates to revive demand and to fast-track implementation of large projects to boost economic growth. Industry body Ficci said the Index of Industrial Production (IIP) figures for June are indeed a matter of concern and clearly indicate that supply side bottlenecks and weak consumer demand are weighing down on industrial growth. The continuous de-growth in manufacturing will impact the employment scenario and manufacturing can be revived by stimulating demand, lowering the interest rates and expediting investment projects, Ficci President Naina Lal Kidwai said. The continuous de-growth in manufacturing will impact the employment scenario and manufacturing can be revived by stimulating demand, lowering the interest rates and expediting investment projects, Ficci President Naina Lal Kidwai said. Reuters Another industry chamber CII said that IIP number in June is a matter of concern and does not bode well for early revival of the sector. The industrial production contracted 2.2 percent in June, the second straight monthly drop, due to poor show by the manufacturing, mining and power sectors and a decline in production of capital goods. What is especially discouraging is the sharp decline in output of all sub-sectors manufacturing, mining and electricity which continue to be under stress owing to a spate of inhibiting factors such as high interest rates, flagging investments, policy bottlenecks and subdued demand conditions, CII Director General Chandrajit Banerjee said. While fully appreciating the RBIs compulsions to keep the rupee under check, he said, it is also important that the RBI takes cognisance of the steep slide of industrial production and reduce interest rates to revive demand. However, easing monetary policy alone is not sufficient. This must be supplemented with government action to revive investment and stimulate demand, CII said. Assocham said the industrial demand continues to remain suppressed as the consumer and investor sentiment has not recovered yet. The most worrying aspect of the IIP number is the decline in manufacturing and mining in June, 2013. It is the manufacturing which has to look up for generation of jobs. However, Assoc ham Secretary General D S Rawat said, there was some good news with regard to exports and a considerable reduction in the trade deficit. Hopefully, improvement in the external situation and improvement in the management of current account deficit will give elbow room to the government to attend to domestic sector and the issues like interest rates could be tackled, he said. The countrys exports grew by 11.64 percent in July, the most in nearly two years, while imports dipped by 6.2 percent. The trade deficit was unchanged from $12.2 billion in June.

2.5 Corruption Causes Rs 36,400 Cr Loss to India

Naina Lal Kidwai, president of FICCI said, "Clearly, to stay ahead in this competitive world, we need to improve our governance systems. Given the state of India's economic development, good governance is absolutely critical to give us a competitive edge and sustain growth. Corruption invariably increases transaction costs and uncertainty in an economy while lowering efficiency by forcing entrepreneurs to divert their scarce time and Money to bribery rather than production.

As per 77 percent respondents the managing directors are responsible for handling the bribery and corruption-related issues in the organizations.

The unprincipled business conduct like irregular accounting, to hiding bribery and corruption, complementary gifts given to agents and third parties being engaged to pay bribes are some of the common instances which have been witnessed by most of the Respondents directly or indirectly.

89 percent of the respondents thought that insufficient enforcement of laws is adding to the increasing problems of bribery and corruption in India. New policy like the Companies Bill 2012 brings hope to two third of the respondents that it will make a difference as fraud, bribery and corruption in the country might reduce.

Chapter 3 Women as Entrepreneurs in India

INTRODUCTION Women as Entrepreneurs in India :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 and economic status in the society. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. Women Entrepreneur is a person who accepts challenging role to meet her personal needs and become economically independent. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing values in both family and social life. With the advent of media, women are aware of their own traits, rights and also the work situations. The glass ceilings are shattered and women are found indulged in every line of business from pappad to power cables. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation .In India, although women constitute the majority of the total population, the entrepreneurial world is still a male dominated one. Women in advanced nations are recognized and are more prominent in the business world. But the

Indian women entrepreneurs are facing some major constraints like

a) Lack of confidence In general, women lack confidence in their strength and
competence. The family members and the society are reluctant to stand beside their entrepreneurial growth. To a certain extent, this situation is changing among Indian women and yet to face a tremendous change to increase the rate of growth in entrepreneurship.

b) Socio-cultural barriers Womens family and personal obligations are sometimes a

great barrier for succeeding in business career. Only few women are able to manage both home and business efficiently, devoting enough time to perform all their responsibilities in priority

c) Market-oriented risks Stiff competition in the market and lack of mobility of women
make the dependence of women entrepreneurs on middleman indispensable. Many business women find it difficult to capture the market and make their products popular. They are not fully aware of the changing market conditions and hence can effectively utilize

d) Motivational factors Self motivation can be realized through a mind set for a
successful business, attitude to take up risk and behavior towards the business society by shouldering the social responsibilities. Other factors are family support, Government policies, financial assistance from public and private institutions and also the environment suitable for women to establish business units.

e) Knowledge in Business Administration Women must be educated and trained

constantly to acquire the skills and knowledge in all the functional areas of business management. This can facilitate women to excel in decision making process and develope good business network.

f) Awareness about the financial assistance Various institutions in the financial

sector extend their maximum support in the form of incentives, loans, schemes etc. Even then every woman entrepreneur may not be aware of all the assistance provided by the institutions. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas.

g) Exposed to the training programs - Training programs and workshops for every type
of entrepreneur is available through the social and welfare associations, based on duration, skill and the purpose of the training program. Such programs are really useful to new, rural and young entrepreneurs who want to set up a small and medium scale unit on their own.

h) Identifying the available resources Women are hesitant to find out the access to
cater their needs in the financial and marketing areas. In spite of the mushrooming growth of associations, institutions, and the schemes from the government side, women are not enterprising and dynamic to optimize the resources in the form of reserves, assets mankind or business volunteers. Highly educated, technically sound and professionally qualified women should be encouraged for managing their own business, rather than dependent on wage employment outlets. The unexplored talents of young women can be identified, trained and used for various types of industries to increase the productivity in the industrial sector. A desirable environment is necessary for every woman to inculcate entrepreneurial values and involve greatly in business dealings.

The additional business opportunities that are recently approaching for women entrepreneurs are:
Eco-friendly technology Bio-technology IT enabled enterprises Event Management Tourism industry Telecommunication Plastic materials Vermiculture Mineral water. Sericulture Floriculture

Herbal & health care Food, fruits & vegetable processing 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.


While gender was shown not to affect new venture performance when preferences, motivation, and expectations were controlled for, the differences observed among mens and womens new business ventures include the following: Men had more business experience prior to opening the business and higher expectations. Women entrepreneurs had a larger average household size. The educational backgrounds of male and female entrepreneurs were similar. Women were less likely than men to purchase their business. Women were more likely to have positive revenues, but men were more likely to own an employer firm. Female owners were more likely to prefer low risk/return businesses. Men spent slightly more time on their new ventures than women. Male owners were more likely to start a business to make money, had higher expectations for their business, and did more research to identify business opportunities. Male entrepreneurs were more likely to found technologically intensive businesses, businesses that lose their competitive advantage more quickly, and businesses that have a less geographically localized customer base Male owners spent more effort searching for business opportunities and this held up when other factors were controlled for. Differences between women and men concerning venture size and hours are explained by control variables such as prior start-up and industry experience


Naina Lal Kidwai A prominent personality of the corporate world, she is the first woman to guide the functioning of a foreign bank in India. At present, she is working as the Group General Manager and Country Head of HSBC India. Personal Life:

She was born in the year 1957. Raised in Mumbai and Delhi, she did her schooling from Simla. Alumna of Delhi University. She is the first Indian woman to have graduated from Harvard Business School She is the mother of two children, who is maintaining a great balance between work and home. She is very fond of Indian classical as well as western music. She loves to go on trekking tours to the Himalayas. She is a nature lover, who has a keen interest in observing the wildlife. Naina is married to Rashid Kidwai, who runs the NGO, Grass root Trading Network for Women.

Naina Lal Kidwai, a chartered accountant by profession, is an Indian banker and business executive. She is currently the Group General Manager and Country Head of HSBC India. She is the President of the Federation of Indian Chambers of Commerce and Industry (FICCI).She also holds a Bachelors degree in Economics from University of Delhi and an MBA from Harvard Business School in 1982. Kidwai was the first Indian woman to graduate from Harvard Business School and also the first woman to guide the functioning of a foreign bank in India. She has also completed her Bachelors of Arts in the year 1977. Career Early Years From 1982-1994 she worked ANZ Grindlays, where her assignments included Head of the Investment Bank, Head of Global NRI Services and Head of the Western India, Retail Bank. From 1994 to 2002, Mrs. Kidwai served as the Head of Investment Banking in Morgan India and JM Morgan Stanley.[11] She also served at Standard Chartered Bank from the year 1982 to 1994 and as Chief Manager of Retail Bank from 1984 to 1991. From 1989 to 1991, Mrs. Lal was the Chief Manager and Head of Investment Bank India and as Manager of North India of Investment Bank from 1987 to 1989. Naina Lal has also served as the Manager of West India of Investment Bank based in Bombay from 1984 to 1987. From 1977 to 1980, she worked at Price Waterhouse & Co. Current Positions Along with serving as the Chairman of HSBC Asset Management (India) Pvt Ltd and HSBC InvestDirect (India) Ltd, her other positions include being a non-executive director on the board of Nestle SA, Chairwoman, City of London's Advisory Council for India, Global Advisor, Harvard Business School. She is on the Governing Board of NCAER, Audit Advisory Board of the Comptroller and Auditor General of India, and on the National Executive Committee of CII and FICCI. Career Highlights Mrs. Kidwai serves as the Group General Manager of HSBC Holdings Plc since 1 October 2006. She also serves as the Chief Executive Officer of HSBC India of HSBC Holdings Plc since 5 May 2006. Since 15 April 2009, Mrs. Kidwai also served as the Country Head of HSBC India. She also served as the Head of Corporate & Custodial Services of HSBC Bank. Naina also served as the Group General Manager of HSBC India until 15 April 2009. Mrs. Kidwai also served as the Deputy Chief Executive Officer of HSBC Holdings Plc since 21 May 2004. Besides, she also served as Managing Director of HSBC Securities and Capital Markets India.

She has also served as Deputy Chief Executive Officer of HSBC from November 2002 to 5 May 2006.

Personal life. Naina married to Rashid Kidwai who runs an NGO named Grassroot Trading Network for Women. She is also the mother of 2 children, who is maintaining between home and work. Mrs. Naina is the daughter of an insurance company CEO. Her mother comes from an industrial family being the sister of industrialist Lalit Mohan Thapar. Her interests include microfinance and livelihood creation for rural women and environment. Naina, also supports the world's largest youth driven organization - AIESEC as a National Advisory Board Member to AIESEC India. Naina Lal is very fond of Indian classical and the western music. She also loves to go on trekking tours to the Himalayas. Mrs. Kidwai is also a nature lover and also has keen interest in observing the wildlife. Kidwai has repeatedly ranked in the Fortune global list of Top Women in Business, 12th in the Wall Street Journal 2006 Global Listing of Women to Watch ad listed by Time Magazine as one of their 15 Global Influentials 2002. Awards For her praiseworthy work, Naina has also secured many accolades. Naina Lal has secured the distinguished Padma Shri award for her contributions in the areas of trade and industry. She has also received ASSOCHAM Ladies League's Delhi Women of the Decade Achievers Award 2013 for Excellence in Banking DEVELOPMENT BY NAINA LAL KIDWAI
CIO: What are some of the most significant shifts that you've witnessed in the banking sector? Naina Lal Kidwai: There are two significant shifts that I have witnessed in the banking sector: One is rapid technological development, and the other is the volatile nature of the retail business. This is true not only at HSBC, but also for the industry because every change brings a new model for growth. On the technology front, what we have today is a banking sector, whichincluding public sector banksis driven off a strong technology platform. But ten years ago, the public sector was wary of adopting technology as unions opposed it. Today, public sector banks easily work off these platforms, and as a result, the sector is very well connected. Technology solutions are being provided by the best in the IT industry, hence there is no compromise on quality.

I think this sets the standard because the private sector has to be technologically better when competing against well-funded public sector banks. The private sector scores for the fact that it is more agile. It is able to easily adapt and bring in new technologies into play faster. Banks like HSBC brought the first ATM to the country. I must say that foreign banks do help in bringing in cutting-edge technology. And this ensures that we have a global offering in India.

CIO: Could you elaborate what technology changes are shaping the banking sector? Naina Lal Kidwai:

I think the big change, going forward, will be around Internet and mobile banking. The Internet banking platforms of banks in India are truly secure andto that extentwe do have strong security technologies available in India. Also, our customers today are adopting technology at a much faster rate than ever before, given the youthful nature of our population.
On the other hand, an element that we have not leveraged effectivelywhich if youd asked me five years ago I would have said was the technologyis mobile telephony banking that isnt just SMS-led. We are yet to reach a stage where your mobile phone is your wallet. I think the next leg of this mobile telephony banking is going to be an important one for us. Go to Questions CIO: How does IT help you stay compliant with regulatory mandates? Naina Lal Kidwai: I think, with respect to keeping pace with regulatory changes, there is very little that constrains you. Sometimes, when you are a part of a larger organization, the decision-making is such that you cannot have a technology in one location, which is different from what you have in others. This is because it is important to ensure that all the technology platforms are linked together. Also, you cant easily add on something that makes your global systems insecure. So, in some ways, being a big organization and functioning across geographies poses its own constraints. But it also helps because you can easily import innovations. However, in order to keep all your systems and processes intact, there are multiple layers of checks and balances that you need to go through. Here's where technology can help. In terms of security, technology definitely plays a big role. The ability to screen and know exactly what is happening is important. Also, the ability to put security walls and ensure that central systems do not get impacted is part of a security technology's evolution process. I think no one will get it right all the time because technology evolves continuously, and sometimes, you learn things the hard way. But the good news is as long as we can learn about something that didnt work somewhere else in the world we can avoid repeating those mistakes. Technology must continue to evolve. The worst we could do is implement a change, sit back and relax, only to find out that six months down the line, something else has come out that is far superior to what has been achieved or implemented by us. Go to Questions

CIO: How can organizations avoid falling into this trap? Naina Lal Kidwai: You need to be able to move ahead, abandon whats not working, and make sure you are always listening to your customer. If we rely only on the technology guys, we will have an excellent system, but it may not be the best for the customer. However, we cant get our relationship manager to drive a customer-friendly technology initiative which doesnt meet other IT criteria like security, controls, and integration with other IT systems. We should be able to check what our customers have to say. Having customer engagements in the front-end, and bringing out technology solutions that are customer-centric is vital. We need to ensure that all the voices on social media platforms get heard, assembled, and due consideration is given to them. You have to keep all channels open for ideas and innovative solutions. Go to Questions CIO: HSBC India is enjoying healthy profit margins. How did you manage this in a down economy? Naina Lal Kidwai: We tend to be a conservative lender. By not having an aggressive lending strategy in periods which were not that good for the economy, we were spared the large NPAs (non-performing assets) that other banks accumulated. We also took a view of certain sectors like power and airlines where we either got out in time or just werent there. So we didnt get hit by those. We got the full benefit of the growth sectors without getting hit by those that didnt do well. I think our risk strategies, analysis, and experience helped us enormously in terms of our lending book. Go to Questions CIO: How has IT helped you achieve this? Naina Lal Kidwai: The risk models are developed with two things: Degrees of refinement, and inputs that come in from Hong Kong and the U.K. But at the end of the day, we are dependent on a system that captures data. And here it is all about MI (management information). It is about data that is captured in a way that reminds you of what may have happened in the past. The analysis of the information and the financials are all, at some level, IT-enabled. So ITs role is very big. The reports that our risk head presents to us at the APAC board-level meetings are phenomenal. It includes data across all the countries in this part of the world, which represents close to 66 percent of the profits of HSBC. We are able to understand this because of systems that have been set up and are able to pull together data in meaningful ways. To have good risk processes is important and to have the MI around riskenabled by ITis also very important. Go to Questions CIO: What are your expectations from a CIO and what does the role entail?

Naina Lal Kidwai: First of all, a CIO needs to understand the business. If he doesnt understand the business, he wouldnt be able to drive change. While he has to be customer-centrictowards external customersthe CIO should also focus on his internal customers, the employees of the bank. For a large multi-national like us, the CIO needs to be constantly aware of the next wave of technology. It is important that he inputs and implements those technologies in the country or in his sector. If the technology is relevant, he should put his hand up early enough to get it here. That way, we are at an advantage, since 60 percent of all IT software development for the global HSBC group happens in Pune and Hyderabad. Our CIO is on the board of our IT company in India so that he has moral authority to understand what is happening right under his nose. There was a danger, otherwise, of a disconnect between our software team reporting to the U.S. and our India team reporting to Hong Kong. Externally, the CIO needs to keep an eye on what the competition is doing. I think knowing what the competitive landscape looks like in ones immediate vicinity is very important. He needs to know what technologies are being implemented at say ICICI or HDFC bank, so that we can pick up on that. It may not be a technology we can implement, but we should make sure we know whats happening and explore every avenue to ensure that we too can. And if we cant, we should have a good reas on. It is also about having a good team. The CIO obviously cant do everything himself. So, it becomes important for him or her to show a commitment to the team. We also have the added need to have fraud control and security, and this goes beyond what you do in-house. How do you engage with external agencies like the police and know the system and processes necessary to take action once you detect fraudulent activities? The whole chain, therein, needs to be understood as well. Go to Questions CIO: What is the role of a foreign bank in helping the cause of financial inclusion? Naina Lal Kidwai: What we are going to see in the spirit of financial inclusion is an ease of opening bank accounts for the financially excluded. This is important as 40-50 percent of Indians still dont have a bank account. HSBC has leveraged an IT-enabled financial inclusion eCard solution in rural India to help a womens cooperative bank, potato farmers, and even dairy farmers. These are groups that do not have the capability to do Internet banking. The solution enables them to access basic information. Getting past the entire KYC (know your customer) issue was tough. But the Aadhaar card will help in this regard as the RBI has said it will be accepted as proof of identification. We will be able to simplify the entire KYC process with the electronic model. The counter-point to this is that banks are also going to be far more security-conscious. The emphasis on security of information will also mean that the customer will have to put in more effort when he fulfills the KYC norms. However, hell need to do it just once. At the end of the day, there are multiple ways by which money can move through banks. And banks do not always have the ability to trace the source or check if the person depositing the money has paid his taxes. Go to Questions

CIO: Is consolidation really inevitable in the banking sector? Naina Lal Kidwai: Consolidation will happen and it is good that it is happening. India needs a bigger banking sector and that will come in two ways: More big banks and more banks in general. Consolidation is a natural process. Some banks outlive their utility and their strength comes in being absorbed by others. You can have small banks which have every reason to exist because of the niche they serve. So, it doesnt always have to be just big banks. You need a variety of banks but at least two or three banks should make it into the top 50 banks in the world. This is not asking for much. For a large economy like ours, we need bigger banks that stack up in the context of global scale. I am also pretty sure that we do not need 70 percent of the banking sector to be government-owned. Thats a big problem for the government as it has to keep pumping money into these banks. Let the government own somesay the SBIbut why 70 percent of the banking sector? There is certainly room for the government to shed some of the public sector banks, consolidate others, and allow for a mix of healthy private sector banks which provide a competitive landscape. Ultimately, competition is good for the customer and it definitely strengthens the banking sector.

Case study Learning Lessons from: Naina Lal Kidwai

Friday, February 29, 2008
Last night at The Worshipful Company of World Traders Annual Tacitus Lecture, Naina Lal Kidwai spoke on Indias emerging role in the global economy. She is the CEO of HSBC India, the first Indian woman to graduate from Harvard Business School, and Fortune magazine listed her as the 34th Top Women In Business. Im sure youve all been learning about the glass ceiling effect in your Work & Leisure modules, and she is a perfect example of an outright defiance of that. First of all, she assures us that a US consumer slowdown, should it occur, would have minimal effects on India since exports only represent 20% of Indias GDP and importers would benefit from cheaper costs. Indias domestic markets are very much alive and well. However, always striving for betterment, she says that it should be aiming even higher for a growth rate of 10%. She highlights Indias most famous exports in IT and BPOs (Business Process Outsourcing). Indias IT economy generates of 11 million jobs per year, more than any other emerging country. Even Thomas Friedman admits in his book The World Is Flat that it was Indias army of highly skilled technology workers and its abundance of fibre-optic cables which contributed to a more level global economic playing field. She also mentions other areas of Indian growth such as the M&A markets and telecommunications and doesnt neglect to point out that improving Japanese-Indian and Sino-Indian relationships will play a major factor in Indias future in the global economy. On business innovation, she chooses to tell us about dabbawallas food deliverymen who pick up homecooked meals and deliver them right into the offices. Its an intricate system, essentially FedEx for food, but manages to run astoundingly accurately without any use of computer technology. Forbes magazine awarded them a 6 Sigma rating meaning accuracy to a percentage of at least 99.999999%, or only one missing meal per six million delivered! However, she is not so hopelessly optimistic as to overlook so me of Indias areas of concern. The rupee has been rapidly appreciating and this could be lethal to certain Indian export industries, especially the BPO sector which survives on wafer-thin profit margins. Inflation is another issue for India, especially food and fuel prices which will especially impact the poor. Her prescription to Indias lack of infrastructure is further investment, another $500 billion worth (!) according to the Governments estimates. On climate change, she is a proponent of cleaner, greener energy and co-operating with other nations. In fact, India had the highest positive response rate in HSBCs Global Climate Confidence Index (the UK came last). Both India and China are facing a water crisis and this is only to be compounded by future population growth.

On social issues such as gender and class divides, she has reasons to be optimistic: more women are getting educated, getting jobs and becoming financially independent. Microfinance in India has been a remarkable success and contributes to not just an alleviation of poverty, but also positive social effects within the community. She concludes that despite the challenges that lie ahead, opportunities in India are endless. Personally she would like to see an accelerated growth rate so that the change at the bottom of the pyramid is faster, with continued focus on more inclusive growth.


1. Financial cells : In various public financial institution and banks, special cells may be opened for providing easy finance to women entrepreneurs. These cells should be manned by women officers and clerks.

2. Marketing co-operatives : Encouragement and assistance should provide to women entrepreneurs for setting up co-operative will provides inputs women enterprise and sell the product at remunerative price.

3. Supply of raw materials: scarce and improved raw material may be made available to women entrepreneurs on priority basis. A subsidy may be given to the product manufacture by women enterprise.

4. Educational awareness: It is necessary to charge the negative social attitude towards women. Elders needs to girls and their due to role in society.

5. Training facility: Training and skills are essential for the development of entrepreneurship. Training schemes should design that women can take full advantage.


Government needs to plan for future water and power consumption

Water requirements will increase significantly once the proposed thermal power plants in many parts of India become operational. Based on a report, power generation through thermal power plant route will necessitate usage of large quantities of water for India in the future. Ms. Naina Lal Kidwai, country head at HSBC in India, and also head of the water group at the Federation of India Chambers of Commerce and Industry (FICCI), had made some vital comments in the recent past on the demand for water in future - while releasing a report titled, "Water Use and Efficiency in Thermal Power Plants", it was highlighted based on this report power generation will require 33 billion cubic metres(bcm) of wter in 2025 and about 70 bcm in 2050.
Other suggestions involving experts could be also found out. Perhaps, now is the time for planning the future requirement of water and power for consumption by the society in the future.

CONCLUSION Matching the basic qualities required for entrepreneur and the basic character of Indian women reveal that much potential is available among the Indian women on their entrepreneurial ability. This potential is to be recognized and exposed for utilization in production and service sector for the development of the nation. Women have all the disposition of becoming a successful entrepreneur just identify passion and start living it.



(May 31, 2011 , the

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