business women in micro enterprises - zenith international journal of ...

174www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780TABLE-1 PROFILE OF BUSINESS WOMENCharacteristic Number PercentageNature of the BusinessServiceRetailFashion Designing and Toy makingEducation LevelsBelow IntermediateUpto PGExperience as Entrepreneurs (Years)Less than 22-66-10More than 10Hours Dedicated to the Business per day : 9 hoursAverage Age : 39 YearsAverage Turnover : Rs. 3.75 Lakhs183012352517230911305020584228381519Capital Investment : < Rs.5 Lakhs (90%), Rs5lakhs to 20 lakhs (10%)Source : Primary dataThe skills required differ from one business to another. Entrepreneurs start a business dependingon their skills, abilities and qualifications. Many studies concluded that women mostly operatein women oriented businesses such as beauty care, tailoring, fashion designing, pickle making,textile selling and so on. Majority of the entrepreneurs under study opted to operate in servicesector which included beauty care, finance, travels, schools, marriage bureau and gas agency.The retailing sector is also equally appealing to business women where businesses likepharmacy, jaggery trading, textiles, retail stores and sale of Tupperware are being adopted bythem.

175www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780Toy Making, fashion designing are generally women oriented businesses which require aptitude,creativity and interest towards them rather than educational background. Education givestechnical skills and problem solving skills. However, certain businesses do not require theeducational support. It is observed that women with lower education i.e., below intermediate areequally competing with those with higher qualifications. It is observed that 58% of businesswomen has studied upto Intermediate and 42% upto P.G. Women are very critical when it comesto themselves - can I really do this, am I good enough, maybe I have to learn more, others can doit better. It is quite interesting that many successful women have been educated in only girlscolleges and schools, which often deliver a safe environment to try out ones personal strengths,learn to overcome weaknesses and be proud of oneself.The enterprises under study are basically micro in nature with capital investment ranging fromRs.2 lakhs to Rs.20 lakhs. A majority of the entrepreneurs (90%) are maintaining an averageturnover of below 5 lakhs with others in the range of Rs. 5 lakhs to Rs.30 lakhs. Theseenterprises are generating employment to a minimum of three and maximum of five. They aremanaged by married women. The average age of the respondents is calculated at 39 years.Their experience as business women varies from less than 2 years to more than 10 years. 72% ofthe entrepreneurs are found to have more than 2 years of experience. They add value to familyas well as business by being devoted to business for an average time of 9 hours daily.SOURCE OF MOTIVATIONThere are certain driving forces which decide the decision making patterns of people. Enteringinto business is a risky decision which needs an aptitude, courage and determination. Theseattributes are either internally cultivated or groomed by other motivating personalities.TABLE-2 SOURCE OF MOTIVATIONSource Number PercentageFamily 11 27Friends 09 21Self 21 50Training 01 02Total 42 100Source : Primary dataIt can be noted that only 42 women revealed their source of inspiration. It is really a noteworthyfinding that 50% of them are self motivated followed by getting motivated by family (26%) andfriends (21%). Some times the training also helps the people to establish businesses.

176www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780PROBLEMS OF WOMEN ENTREPRENEURSThe greatest deterrent to women entrepreneurs is that they are women. Entrepreneursgenerally face different kinds of problems such as finance, management, technical,entrepreneurial, marketing and accounting. These problems assume more seriousness in case ofwomen entrepreneurs as they face gender discrimination while solving them. In addition,women have to face social barriers and family problems. A kind of patriarchal – male dominantsocial order is the building block to them in their way towards business success. The malemembers think that financing the ventures run by women is a big risk.I. FINANCIAL PROBLEMSThe financial institutions are skeptical about the entrepreneurial abilities of women. The bankersconsider women loonies as higher risk than men loonies. The bankers put unrealistic andunreasonable securities to get loan to women entrepreneurs. According to a report by the UnitedNations Industrial Development Organization (UNIDO), despite evidence that women's loanrepayment rates are higher than men's, women still face more difficulties in obtaining credit,often due to discriminatory attitudes of banks and informal lending groups (UNIDO, 1995b).Entrepreneurs usually require financial assistance of some kind to launch their ventures - be it aformal bank loan or money from a savings account. Women in developing nations have littleaccess to funds, due to the fact that they are concentrated in poor rural communities with fewopportunities to borrow money (Starcher, 1996; UNIDO, 1995a). The women entrepreneurs aresuffering from inadequate financial resources and working capital. The women entrepreneurslack access to external funds due to their inability to provide tangible security. Very few womenhave the tangible property in hand.The financial institutions discourage women entrepreneurs on the belief that they can at any timeleave their business and become housewives again. The result is that they are forced to rely ontheir own savings, and loan from relatives and family friendsIt is observed that 86% have reported facing financial problems. The problems identified underthis category are working capital, sanctioning of loan, disbursement of loan, management offinance, complicated procedure of bank loan, delay in getting loan, reimbursement of loan andlack of guarantee. Inadequate working capital is reported by majority (50%) of them followed bycomplicated procedure of bank loan.II. MANAGEMENT PROBLEMSThe management problems generally faced by entrepreneurs are planning, organizing,coordinating, and controlling. Ninety percent of the entrepreneurs reported to have faced all mostall these problems. The major problems identified are planning the business (62%), organizingthe business (22%) and coordinating and controlling (16%).

177www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780III. TECHNICAL PROBLEMSThe technical problems of the entrepreneurs include old and obsolete method of production, lackof adequate training, upgrading of the skills, little designing skills, lack of skilled workers,modern machineries, ideas and time to develop the product, research facilities and low budgetson research development. Knowledge of latest technological changes, know how, and educationlevel of the person are significant factor that affect business. The literacy rate of women in Indiais found at low level compared to male population. Many women in developing nations lack theeducation needed to spur successful entrepreneurship. They are ignorant of new technologies orunskilled in their use, and often unable to do research and gain the necessary training (UNIDO,1995b, p.1). Although great advances are being made in technology, many women's illiteracy,strucutural difficulties, and lack of access to technical training prevent the technology from beingbeneficial or even available to females ("Women Entrepreneurs in Poorest Countries," 2001).According to The Economist, this lack of knowledge and the continuing treatment of women assecond-class citizens keeps them in a pervasive cycle of poverty ("The Female Poverty Trap,"2001). The studies indicates that uneducated women donot have the knowledge of measurementand basic accounting. The respondents reported that getting skilled workers and upgrading theirown skills are major problems.IV. ENTREPRENEURIAL PROBLEMSEntrepreneurial problems include lack of experience, lack of training, inconvenience inprocuring raw material, low profits, financial problem, low risk taking attitude, complicated tradelicense procedures, lower participation in trade fair, no access to bank loans and financialinstitutions, no membership with the chamber of commerce, missed profitable orders and buyers,inaccessibility to export and import related sectors. Knowledge of alternative source of rawmaterials availability and high negotiation skills are the basic requirement to run a business.Getting the raw materials from different source with discount prices is the factor that determinesthe profit margin. Lack of knowledge of availability of the raw materials and low-levelnegotiation and bargaining skills are the factors, which affect women entrepreneur's businessadventures. Twenty four percent of women expressed that they face the export and import relatedproblems. . Low-level risk taking attitude is another factor affecting women folk decision to getinto business. Low-level education provides low-level self-confidence and self-reliance to thewomen folk to engage in business, which is continuous risk taking and strategic cession makingprofession. Investing money, maintaining the operations and ploughing back money for surplusgeneration requires high risk taking attitude, courage and confidence. Though the risk toleranceability of the women folk in day-to-day life is high compared to male members, while inbusiness it is found opposite to that. Low risk taking attitude (46%) and financial problems(52%) are identified as entrepreneurial risks.V. GOVERNMENT SUPPORTBoth Central and State governments are implementing various assistance, schemes for thepromotion of women entrepreneurship. But in practice the respondents face many difficulties inobtaining government assistance due redtapism at various levels, exploitative advisors, problems

178www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780due to dishonest officials, complicated and time consuming long procedures in getting theassistance, etc.Government extends support to women entrepreneurs in the form of priority loan lending,concessional interest, specially designed schemes, training facilities, tax concessions and so on.Majority of the entrepreneurs (82%) reported lack of government support as a problem while44% of the entrepreneurs expressed that they lack knowledge about concessions offered by thegovernment where as 23% reported that they do not know any information about taxconcessions.VI. MARKETING PROBLEMSAnother argument is that women entrepreneurs have low-level management skills. They have todepend on office staffs and intermediaries, to get things done, especially, the marketing and salesside of business. Here there is more probability for business fallacies like the intermediaries takemajor part of the surplus or profit. Marketing means mobility and confidence in dealing with theexternal world, both of which women have been discouraged from developing by socialconditioning. Even when they are otherwise in control of an enterprise, they often depend onmales of the family in this area.Acceptance of product, lack of bargaining skills, publicity, market information, supportivenetwork and proper training, no accessibility to foreign market are major marketing problems.All the entrepreneurs felt that marketing is the major problem. Missing networks - throughcenturies business men have build up their networks but women still have to learn to catch up31% reported that lack of publicity is causing great problem, 18% complained that right price isnot received by them because of their lack of bargaining skills while selling and purchasing.VII. SOCIAL BARRIERSFamily restrictions and religious belief and traditional customs are the social barriers. Indianwomen give more emphasis to family ties and relationships. Married women have to make a finebalance between business and home. More over the business success is depends on the supportthe family members extended to women in the business process and management. The interest ofthe family members is a determinant factor in the realization of women folk business aspirations.The study reveals that 50% of women entrepreneurs do not face any social barriers. However, itis found that 30% of them suffer from family restrictions and 20% reported problems on accountof religious beliefs and traditional customs.VIII. ACCOUNTING PROBLEMSMaintaining books of accounts, computerization of accounting, lack of knowledge and approachto a professional accountant are the accounting problems. 87% of the women entrepreneurs feltthat maintaining books of accounts is the biggest problem while 36% reported that they do nothave knowledge of accounting and 11% felt that non computerization of accounts has become aproblem.

179www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780IX. FAMILY PROBLEMSLess time for the family, children education and personal hobbies, lack of support from familymembers are the major family problems faced by women entrepreneurs.It is clear, that women have the responsibility of getting children and taking care of them. Veryfew societies accept fathers taking over the role of staying home and taking care of the children.Once these children are old enough to take care for themselves, they have to bear an additionalresponsibility of taking care of elder parents. If they want to become entrepreneurs, the societyexpects them to be able to do both: take care of family and home and do business. 93% womenentrepreneurs reported that family life and work life blend becomes a problem. They felt thatthey are not able to spend enough time with family (39%), concentrate on children’s education(30%)and have lack of support from family (11%) and less time for personal hobbies andrelations (7%).X. DISCRIMINATIONDiscrimination - The male - female competition is another factor, which develop hurdles towomen entrepreneurs in the business management process. Despite the fact that womenentrepreneurs are good in keeping their service prompt and delivery in time, due to lack oforganisational skills compared to male entrepreneurs women have to face constraints fromcompetition. The confidence to travel across day and night and even different regions and statesare less found in women compared to male entrepreneurs. This shows the low level freedom ofexpression and freedom of mobility of the women entrepreneurs. It is hard to believe but womenare still treated differently in our society. Women do get lower salaries compared to men doingthe same job, women do not have access to men dominated networks who take their decisionsabout successors.Discrimination in business may arise due to gender, caste and education, etc. It is observed thatonly 42% of women entrepreneurs reported discrimination. Further, it is observed thatdiscrimination on account of education is faced by 19% followed by gender (16%) and caste(6%). It can be concluded that gender discrimination is not a major problem and women canovercome it very easily.ADVICE OR CONSULTANCY AND SUPPORTA question was posed to women entrepreneurs whether they require any consultancy in the areaof finance, taxation, technical, legal or accounting. It was found that 10% do not require anyconsultancy whereas 50% of them wanted financial advice. Technical advice is sought by 25%,whereas 10% require legal advice. Therefore government should create a single window throughwhich the entrepreneurs are given consultancy in various areas while entering into business andeven during the running of business. All women entrepreneurs unanimously agreed that theirorganizations will be successful only then they get support from government, financialinstitutions, training institutions, trade associations and family.

180www.zenithresearch.org.inZENITHInternational Journal of Multidisciplinary ResearchVol.2 Issue 2, February 2012, ISSN 2231 5780EMERGING CHALLENGES IN WOMEN ENTREPRENEURSHIPVarious challenges emerge in entrepreneurship and the art of entrepreneurship lies in managingthem. The respondents identified competition (39%), lack of capital (34%), accessibility tomarket (20%), lack of specific information and high cost of production (7%) as major challenges.CONCLUSIONIrrespective of the problems and challenges that emerge in the process of entrepreneur ship,women are going ahead in the business domain. Their entry into this male dominated world isdefinitely bringing a fresh air as they can add valuable innovation to entrepreneurship. Theirinnate mental flexibility, vision for long-term planning, patient attitude, sincerity and the abilityto tolerate ambiguity and changes are a valuable asset for business ventures. The Governmentand other financial institutions should enhance support lending activities to these womenthorough single window schemes. More awareness camps have to be conducted. Educationalinstitutes too need to inculcate the entrepreneurial skills in the women. All the players in the fieldshould understand that motivation and environmental demography plays a crucial role in theincreased women entrepreneurship activity.REFERENCES1. Aida Idris, A profile of the innovative women entrepreneurs, April 2008, Vol I No-2International Business Research2. Bharathi Kollan and Indira J Parekh, A refection on the Indian Women on theentrepreneurial world, WPno2005- 08-07August 2005.IIMA Working Series3. Bharathi N., Women entrepreneurs: Motivational factors and Problems, Asia PacificBusiness Review, Jan – March 20094. Dileep Kumar M., Problems of Women Entrepreneurs in India, www. Indianmba.com.5. Kavitha Raman, Anantharaman, R.N. and Sharmila Jayasingam, AffectingEntrepreneurial Decision: A Comparison between Malaysian Women Entrepreneurs andWomen Non Entrepreneurs, www. Ibima publishing.com6. Suganthi .J, Influence of motivational factors on women entrepreneurs in SMEs, AsiaPacific Business Review, Jan – March 2009.7. SurinderSingh, An insight into the emergence of women owned businesses as economicforce in India, ezinarticles.com