CHANAKYA NATIONAL LAW UNIVERSITY, PATNA

Sociology-II Project on:Female entrepreneurship: achievements and obstacles

SUBMITTED TO: Dr. SANGEET SUBMITTED BY: Manini Jaiswal IstYEAR-2ndSEMESTER ROLL NO.429

ACKNOWLEDGMENT
Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.

The success of any project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would like to extend our heartfelt thanks to the Vice Chancellor, Dr. A. Laxminath , teacher, Dr. Sangeet , our Professor, for nurturing a congenial yet competitive environment in the University, which motivates all the students to pursue higher goals.

I would like to extend our thanks to all the teaching and non-teaching staff members of our University, and to all my colleagues who helped me with the ever daunting task of gathering information for the completion of the project.

Finally, how can I forget the almighty the supreme power the GOD and my loving parents without whom this work task was only a distant dream.

Manini Jaiswal Roll 429

RESEARCH METHODOLOGY

Research Methodology is a systematized investigation to gain new knowledge about the phenomena or problems. Legal phenomena require their own research methodology. The research methodology applied here is doctrine method of research. The systematic investigation of problems and of matters concerned with the topic Female Entrepreneurship: Achievements and Obstacles has been done. The books in the library and materials available on the internet have been used to study the social and behavioural phenomena of the topic and its verification. The main object of this legal research is to gain familiarity with legal phenomena and to test and verify old facts to disguise the weakness or merits of old legal aspects to analyze the facts into new theoretical frameworks.

1.Introduction
The main aim and objective of this project work is to know about the facts and information relating to the Female Entrepreneurship and study about the achievements and obstacles which come on the way of success of these entrepreneurs. In order to know about these facts, the help of books and internet have been taken. Both doctrinal and non-doctrinal mode of research was conducted for gaining the true facts from the society and in trying to know what the society thinks about it. In this project work, there are many topics which have been dealt with in relation to the achievements and obstacles of female entrepreneurship. Firstly a short introduction about the topic is given, then we move on to know what the historical perspective of female entrepreneurship in India is. Then there is a description about the present status of women entrepreneurship which is followed by the legal provisions and schemes given to women entrepreneurs followed by the conclusion. The emergence of entrepreneurs in a society depends to a great extent on the social, economic, religious, cultural, psychological and environmental factors prevailing in a society. Entrepreneurs with their inherent intelligence, drive and hard work making the best use of the opportunities that are made available in the above factors. Women entrepreneurs are no exception to this. Across centuries and across time, the role of women remains rooted into eternity. It forever remains the same and at the same time goes through many transitions. It takes centuries for womens roles to unfold in different forms, shapes and sizes and to move in new directions. There are some locales where women live in a bygone century chained and shackled to the social structures and coding and wishes of others who carve a code of conduct on stone. Whereas there are other locales where women struggle to find freedom and space to define their roles in a new context with new occupations and forge a new path for their lives.

Though women, in traditional societies are confined to the four walls of houses doing all the household works including taking care of the children and are treated as property of men, the concept and status of women in the modern society has been changed substantially. Modern age has lifted the veil of ignorance. Slowly and subtly changes are creeping in. Women have come out of the four walls to participate in all sorts of activities. They are growing and blossoming as successful persons in their own right. They have proved that they are no less than men in efficiency, hard work or intelligence. They are treated equally in teaching jobs, IT firms, hospitals and administrative jobs, military and defence fields, law, science, medicines and even aeronautics and space exploration. Now they have jumped into industrial activities and run their enterprises successfully. They are emerging as potential entrepreneurs. They have been making significant impact in all segments of the economy. Indian women also do have vast entrepreneurial talent which could be harnessed to join in the race for development. Therefore, it is now quite significant to discuss about the concept, meaning,, growth, problems and its solutions of women entrepreneurs in India.

2. Historical Perspective
Most women business owners in Indian organization were either housewives or fresh graduates with no previous experience of running a business. These women business owners were in traditionally women oriented business like garments, beauty care, and fashion designing, which either do not require any formalized training or are developed from a hobby or an interest into a business. The classic example will be of herbal queen Lady Shehnaz Hussain who started her herbal-based treatment from a relatively small scale. In fact, she started literally from her kitchen domain to a chain of beauty parlours spread out across the nation and world. Shehnaz started her business as a hobby on a relatively small budget and made an herbal empire to be inherited by her family.

Women, who had started out their own business without any mentor or legacy, had created their own plateau and also earned many feats. For example, Shehnaz Hussain, who had neither a legacy nor a mentor to follow, created her own legacy for her family. Women, on other hand, who inherited a small business from the family, had taken their small business to a greater extent and turned it out into a large organization. While there are also some women who had inherited a large organization, had taken the organization to a much higher plateau.

WOMEN ENTREPRENEURS OF THE FIFTIES

In these years women resorted to entrepreneurship for two reasons, which were that either the husbands were out of job or not interested to work, or the husbands had left a legacy for the family where these women were the only ones to look after.

But mostly in this era, businesses were taken away by relatives and the women and their families lived their lives as dependants while they had the resources or did not have the resources.1
1

Kohlan, Bharti & Indira Parikh, A Reflection Of Indian Women in Entrepreneurial World, (IIM Ahmedabad, Aug 2005) 9

WOMEN ENTREPRENEURS OF THE SIXTIES In this decade, women who were educated at schools and colleges had just started to develop a sense of aspiration. But not following their dreams and aspirations, they resorted the society and culture and got married. Although, they started with taking small steps and began with activites of self- sufficiency and engagement from home after marriage, which was mainly due to their aspirations, these activities were still not for economic autonomy.

WOMEN ENTREPRENEURS OF THE SEVENTIES In this decade, many women were educated and many started to chase their dreams and aspirations of establishing one woman entrepreneurs which would employ others. These enterprises started from the parental homes and continued till their own houses.2

WOMEN ENTREPRENEURS OF THE EIGHTIES By the time eighties came around, the women were educated in highly sophisticated technological and professional education.3 This was the decade of the breakthrough for women in many fields and many frontiers. Women made personal choices, stood up for their

convictions and had the courage to make new beginnings. However, all these choices and beginnings was a not smooth sailing. For many, the society was hostile, the family was opposing and non-supportive and the woman carried the guilt of not playing the traditional and appropriate social roles viz. that of being a good mother.

WOMEN ENTREPRENEURS OF THE NINETIES The scenario in nineties changed, and it was all due to the efforts of the women in earlier two generations. The women of the nineties were capable, competent, confident and assertive women. They knew what choices to make, they were clear as to what they wanted to do and they went ahead and did it. The nineties have thrown up many names of women who initiated an enterprise, fostered it and nurtured it to grow. There were many others who entered the big enterprises of their fathers and husbands and contributed it with their competencies and capabilities.

2 3

Ibid, Pg 9 Ibid, pg 10

Sometimes they outshone the names of their fathers and husbands.4 This was the first time that the best took the place of the male heir.

Through these changes women on the social front have become brave, independent, and are now living a life all on their own. They have now the courage to give an answer to the social taboos, physical violence, domestic violence and the system of dowry. Marriage has not only remained their future.

Ibid , pg 10, 11

3. present status of female entrepreneurs

Women Entrepreneurs may be defined as the women or group of women who initiate,organise and co-operate a business enterprise. Government of India has defined women entrepreneurs as an enterprise owned and controlled by a woman having a minimum financial interest of 51% of the capital and giving atleast 51% of employment generated in the enterprise to women. The Indian women are no longer treated as show pieces to be kept at home.They are also enjoying the impact of globalisation and making an influence not only on domestic but also on international sphere.Women are doing a wonderful job striking a balance between their house and career. They have left their male counterparts behind in their achievements. Here are a few: 1.Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd., who became Indias richest woman in 2004, was educated at the Bishop Cotton Girls School and Mount Carmel College in Bangalore. She founded Biocon India with a capital of Rs.10,000 in her garage in 1978 the initial operation was to extract an enzyme from papaya. Her application for loans were turned down by banks then on three counts biotechnology was then a new word, the company lacked assets, women entrepreneurs were still a rarity. Today, her company is the biggest biopharmaceutical firm in the country. 2.Ekta Kapoor, creative head of Balaji Telefilms, is the daughter of Jeetendra and sister of Tushar Kapoor. She has been synonymous with the rage of soap operas in Indian TV, after her most famous venture Kyunki Saas Bhi Kabhi Bahu Thi which was aired in 2000 on Star plus. Ekta dominates Indian Television.At the 6th Indian Telly Awards 2006,she bagged the Hall Of Fame award for her contributions. 3. Neelam Dhawan, Managing Director, Microsoft India, leads Microsoft India. She is a graduate from St. Stephens College in 1980, and also passed out from Delhis Faculty Of Management studies in 1982. Then she was keen on joining FMCG majors like Hindustan Lever

and Asian Paints, both companies rejected Dhawan, as they did not wish to appoint women for marketing and sales. 4. Naina Lal Kidwai, was the first Indian woman to graduate from Harvard Business School. Fortune magazine listed Kidwai among the worlds top 50 Corporate Women from 2000 to 2003. According to the Economic times, she is the first woman to head the operations of a foreign bank in India. ( HSBC). 5. Indu Jain, the multi-faceted lady used to be the Chairman of the Times Group-The most powerful and largest Media house India has known. Indu Jain is known by many different identities such as that of spiritualist,humanist,entrepreneur,an educationalist but most prominently she played the role of the Chairman of Times Group. Indu Jain is the perfect picture of the successful Indian Woman entrepreneur. 6.Priya Paul, she has a bachelors degree specialising in Economics from Wellesley College, USA. She entered her family business and is currently the Chairperson of Park Hotels. 7. Simone Tata, has been instrumental in changing a small subsidary of Tata Oil Mills into the largest cosmetic brand in India LAKME, synonymous today with Indian Fashion. She became a part of Lakme during 1961 and has been responsible for turning the company into one of the biggest brands of fashion in India. At present she is the Chairperson of Trent Limited, a subsidary of Tata Group. 8.Mallika Srinivasan, currently the Director of TAFE- Tractors and Farm Equipment, India , was honoured with the title of Businesswoman of the Year during 2006 by the Economic Times. She joined the company in 1986 and has since been responsible for accelerating turnover from 85 crores to 2900 crores within a span of 2 decades. 9. Preetha Reddy, Managing Director of Apollo Hospitals, Chennai, one of the largest healthcare conglomerates of India, is one of the pioneer businesswoman of India in the segment of Health Care Industry. 10. Ranjana Kumar, currently Vigilance Commissioner in Central Vigilance Commission, after her retirement as the Chairperson of NABARD- National Bank For Agricultural and Rural Development, is a prominent Indian Banker. When the Government of India appointed her as the Chairperson and Managing Director of The Indian Bank, she became the first woman to become

head of a public sector bank in India. At that time of her appointment, The Indian Bank was saddled with huge losses and during her tenure she ensured the turn around of The Indian Bank. Women like these are an inspiration for all other women who strive to achieve great heights in their lives. Taking them as our role models each one of us can be there where they are right now. All we need have is faith in ourselves, confidence and above all a fixed aim that we need work towards.

4. obstacles and provisions

Women entrepreneurs face a series of problems right from the beginning till the the enterprise functions. Being a woman itself poses various problems to a woman entrepreneur, The problems of Indian women pertains to her responsibility towards family, society and lion work. The tradition, customs, socio cultural values, ethics, motherhood subordinates to ling husband and men, physically weak, hard work areas, feeling of insecurity, cannot be tough etc are some peculiar problems that the Indian women are coming across while they jump into entrepreneurship. Women in rural areas have to suffer still further. They face tough resistance from men. They are considered as helpers. The attitude of society towards her and constraints in which she has to live and work are not very conducive. Besides the above basic problems the other problems faced by women entrepreneurs are as follows: 1. Family ties: Women in India are very emotionally attached to their families. They are supposed to attend to all the domestic work, to look after the children and other members of the family. They are over burden with family responsibilities like extra attention to husband, children and in laws which take away a lots of their time and energy. In such situation, it will be very difficult to concentrate and run the enterprise successfully. 2. Male dominated society: Even though our constitution speaks of equality between sexes, male chauvinism is still the order of the day. Women are not treated equal to men. Their entry to business requires the approval of the head of the family. Entrepreneurship has traditionally been seen as a male preserve. All these puts a break in the growth of women entrepreneurs. 3. Lack of education:

Women in India are lagging far behind in the field of education. Most of the women (around sixty per cent of total women) are illiterate. Those who are educated are provided either less or inadequate education than their male counterpart partly due to early marriage, partly due to son's higher education and partly due to poverty. Due to lack of proper education, women entrepreneurs remain in dark about the development of new technology, new methods of production, marketing and other governmental support which will encourage them to flourish. 4. Social barriers: The traditions and customs prevailed in Indian societies towards women sometimes stand as an obstacle before them to grow and prosper. Castes and religions dominate with one another and hinders women entrepreneurs too. In rural areas, they face more social barriers. They are always seen with suspicious eyes. 5. Shortage of raw materials: The scarcity of raw materials, sometimes nor, availability of proper and adequate raw materials sounds the death-knell of the enterprises run by women entrepreneurs. Women entrepreneurs really face a tough task in getting the required raw material and other necessary inputs for the enterprises when the prices are very high. 6. Problem of finance: Women entrepreneurs stiffer a lot in raising and meeting the financial needs of the business. Bankers, creditors and financial institutes are not coming forward to provide financial assistance to women borrowers on the ground of their less credit worthiness and more chances of business failure. They also face financial problem due to blockage of funds in raw materials, work-inprogress finished goods and non-receipt of payment from customers in time. 7. Tough competition: Usually women entrepreneurs employ low technology in the process of production. In a market where the competition is too high, they have to fight hard to survive in the market against the organised sector and their male counterpart who have vast experience and capacity to adopt advanced technology in managing enterprises

8. High cost of production: Several factors including inefficient management contribute to the high cost of production which stands as a stumbling block before women entrepreneurs. Women entrepreneurs face technology obsolescence due to non-adoption or slow adoption to changing technology which is a major factor of high cost of production. 9.Low risk-bearing capacity: Women in India are by nature weak, shy and mild. They cannot bear the amount risk which is essential for running an enterprise. Lack of education, training and financial support from outsides also reduce their ability to bear the risk involved in an enterprises. 10 Limited mobility: Women mobility in India is highly limited and has become a problem due to traditional values and inability to drive vehicles. Moving alone and asking for a room to stay out in the night for business purposes are still looked upon with suspicious eyes. Sometimes, younger women feel uncomfortable in dealing with men who show extra interest in them than work related aspects. 11. Lack of entrepreneurial aptitude: Lack of entrepreneurial aptitude is a matter of concern for women entrepreneurs. They have no entrepreneurial bent of mind. Even after attending various training programmes on entrepreneur ship women entrepreneurs fail to tide over the risks and troubles that may come up in an organisational working. 12. Limited managerial ability: Management has become a specialised job which only efficient managers perform. Women entrepreneurs are not efficient in managerial functions like planning, organising, controlling, coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited managerial ability of women has become a problem for them to run the enterprise successfully. 13. Legal formalities:

Fulfilling the legal formalities required for running an enterprise becomes an upheaval task on the part of an women entrepreneur because of the prevalence of corrupt practices in government offices and procedural delays for various licenses, electricity, water and shed allotments. In such situations women entrepreneurs find it hard to concentrate on the smooth working of the enterprise. 14. Exploitation by middle men: Since women cannot run around for marketing, distribution and money collection, they have to depend on middle men for the above activities. Middle men tend to exploit them in the guise of helping. They add their own profit margin which result in less sales and lesser profit. 15. Lack of self confidence: Women entrepreneurs because of their inherent nature, lack of self-confidence which is essentially a motivating factor in running an enterprise successfully. They have to strive hard to strike a balance between managing a family and managing an enterprise. Sometimes she has to sacrifice her entrepreneurial urge in order to strike a balance between the two. Indian women started their entrepreneurial work in 1970s. Their entrepreneurship is traced out as an extension of kitchen activities mainly pickles, powder and pappad. Women are encouraged to start an occupation or venture with an urge to do something independently started to tide over their economic difficulties and responsibilities. In the seventies, Government of India has also brought a change in its policy objective of welfare approach of women to development approach of women. Women were given priorities in all the sectors including small scale industries sector. As a result, the number of women entrepreneurs has increased over the years. During 1980s, government and non-government bodies have paid increasing attention to women entrepreneurs through formulation of various policies and programmes and introduction of new schemes and incentives. It adopted a multi-disciplinary approach for development of women entrepreneurs. Women entrepreneurs were given top priority for implementation of programmes under agricultural and its allied activities of diary farming, poultry, animal husbandary, handlooms, handicrafts and small scale industries, etc.

In the nineties, out of the total women population of 437.10 millions, there are 126.48 million women workforce of which only 1,85,900 women accounting for self employed in the country. This indicates a dismally low level of women participation in the entrepreneurial activities. Further women entrepreneurs in India accounted for 9.01% of the total 1.70 million entrepreneurs during 1988-89. There were more than 2,95,680 women entrepreneurs claiming 11.2% of the total 2.64 million entrepreneurs in India during 1995-96. The number of women entrepreneurs have increased to 3,28,000 in 1996-97. During the ninth five year plan, the government has introduced in 1998 an important scheme on Trade Related Entrepreneurship of Assistance and Development (TREAD) aiming at economic empowerment of women in rural, urban and semi-urban areas. It develops their entrepreneurial skill and eliminates the constraints faced by women entrepreneurs. The TREAD programme was operated through Small Industries Development Bank of India (SIDBI). SIDBI has initiated various schemes for the growth of women entrepreneurs through Mahila Udyam Nidhi (MUN), Mahila Vikash for Nidhi (MVN), Micro Credit Scheme (MSC), Women Entrepreneurial Development Programme (EDP), and Marketing Development Fund (MDF) for women entrepreneurs. In the context of the opening up of the economy and the need for upgradation of technology, the Consortium of Women Entrepreneurs of India (CWEI) is a common platform to help the very women entrepreneurs in finding innovative techniques of production and marketing and finance. Prime-Minister Rozgar Yojna (PMRY), National Rural Employment Programme and (NREP), Rural Landless Employment Guarantee Programme (RLEGP) are some of the important schemes floated by the Government which encourage women to enter into work entrepreneurial activities. With growing awareness about business and due to growth of educational level, in professional education, industrialisation, urbanisation and democratic values awareness, the tradition bound Indian society has undergone a change and women entrepreneurs have shifted their entrepreneurial activities to engineering, electronics and energy. They made personal choices, stood up for their convictions and had the courage and strength to enter into new ventures. As a

result of these efforts, number of women entrepreneurs have increased over the years. Also there was a non doctrinal research conducted regarding the topic and the results are herewith attached.

5.conclusion
There are ample opportunities in small businesses in India and such opportunities will transform India in the coming future. For such transformation to happen there needs to be support both at the governmental and societal level. For the government it is important to realize that the goal of small business owners will be to remain self-employed. Such people may not need financial assistance but they will need marketing and legal assistance in order to sustain themselves. Practical and cost effective programs need to be developed to address their needs because selfemployed people will represent an important segment in economic revitalization. Entrepreneurship development is the key factor to fight against unemployment, poverty and to prepare ourselves for globalization in order to achieve overall Indian economic-progress.

6. bibliography
1. Entrepreneurial Development by S.S. Khanka 2. Kohlan, Bharti & Indira Parikh, A Reflection Of Indian Women in Entrepreneurial World, (IIM
Ahmedabad, Aug 2005)

3. Dynamics of Entrepreneurial Development and Management Millennium Edition by Vasant Desai 4. http://www.articlesbase.com/entrepreneurship-articles/ 5. http://knowledgeportal.in/ 6. http://dobato.blogspot.com/2006/02/scope-of-entrepreneurship-development.html 7. http://www.thehindubusinessline.com/ 8. http://papers.ssrn.com/sol3/