57 CHAPTER III GROWTH AND DEVELOPMENT OF WOMEN ENTREPRENEURS IN THE STUDY AREA 3.1 Introduction 3.2 Growth of Women Entrepreneurs at the Global Level 3.3 Growth of Women Entrepreneurs in India 3.4 Women Entrepreneurship in Tamil Nadu 3.5 Entrepreneurship Development in Sivagangai District 3.6 The Growth and Development of Women Entrepreneurs in the Study Area 3.7 Summary
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57
CHAPTER III
GROWTH AND DEVELOPMENT OF WOMEN ENTREPRENEURS IN THE
STUDY AREA
3.1 Introduction
3.2 Growth of Women Entrepreneurs at the Global Level
3.3 Growth of Women Entrepreneurs in India
3.4 Women Entrepreneurship in Tamil Nadu
3.5 Entrepreneurship Development in Sivagangai District
3.6 The Growth and Development of Women Entrepreneurs in the Study Area
3.7 Summary
58
3.1 INTRODUCTION
Women form a nation’s significant human resource. They should be sued as
instruments for the growth and development of economy of each and every state.
Women, on the other hand, are willing to take up business and lend their contributions to
the growth of the nation. Women are now ready to do all business and enter all
professions like trade, industry, engineering etc. The role and participation of women are
recognized and steps are being taken for the promotion of women entrepreneurship,
women must be shaped up properly with other entrepreneurial traits and skills to face the
challenges of world markets, meet the changes in the trends, be competent enough to
sustain and strive for excellence in the entrepreneurial field. A complete entrepreneurial
development in a nation can be achieved by the participation of women and therefore the
growth and development of women entrepreneurs must be accelerated.
3.2 GROWTH OF WOMEN ENTREPRENEURS AT THE GLOBAL LEVEL
The field of entrepreneurship has recently gained a vast popularity over the whole
world. The rate of women becoming entrepreneurs is high when compared to men.
The faster growing groups of women in United States are women entrepreneurs.
In accordance with US International Revenue Service (IRS), Beauty parlors, dry cleaning
shops, photographic studios, textile mills, trucking firms, highway and construction firms
and such other dozens of business are owned by women. Women own 38 per cent of
small business in North America. It is calculated that the women owned enterprises
growth rate in some of the developing countries is higher when compared to the
developed countries. According to ILO Statistics, the growth rate is 24 per cent in
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Malaysia, 30 per cent in Thailand, 36 per cent in Philippines and 42 per cent in
Indonesia.1
Attention of international bodies has been attracted in recent years by the
problems of women in economic field. The period 1978-1985 has been declared as
“Decade for Women” the UNO. In November 1978 the UNIDO Preparatory Meeting on
the role of women in industrialization in developing countries was held at Vienna.
Various constraints which stand in path of effective participation of women in the
industrialization of developing countries have been identified by it.
United Nations’ The Secretary General has pointed out the inadequate
fundamental education and lace of sufficient suitable professional, technical and
vocational training as the main hindrances to equal access to employment in his report on
“Status and Role of Women in Education and in the Economic and Social Field” report
presented at the Thirty-Fourth Session of United Nations General Assembly.
At its 20th
Plenary Meeting held on July 30 in 1980 at Copenhagen, Denmark, the
World Conference of the United Nations Decade for Women decided on a programme of
action aiming at promoting equal and complete opportunities and treatment of women in
employment, equality in remuneration for work of equal value and equal education and
training opportunities for women in both rural and urban areas.
Women workers, who have participated in the total work of their respective
countries at the global level, are presented in Table 3.1.
60
TABLE 3.1
Women Work Participation in Global Level
Country Percentage
India 31.6
USA 45
U.K 43
Indonesia 40
Sri Lanka 45
Brazil 35
Source: Women Entrepreneurs in India, Arakeri, V. Shanta National Monthly Referred
Journal of Research in Arts and Education,Vol.No.1,Issue No.3,
ISSN 2277-1182, p.5.
Table 3.1 shows that among the countries, USA, Sri Lanka stand in the first
position in 45 per cent, U.K in the second place and Indonesia in the third place and
Brazil in the fourth place. India is in the last place among the countries shown in the
table. It can be seen that the growth of women entrepreneurs in India is not better than
other countries.
3.3 GROWTH OF WOMEN ENTREPRENEURS IN INDIA
If the society is a vehicle, both men and women are its two wheels. Contributions
of both women and men are required to the activities of building a nation. India has
about seven lakh villages, in which more than 70 per cent of its population lives. The
labour force in the rural sector is formed by 56 per cent of the male and 33 per cent of the
female. Women struggle in India for entrepreneurial freedom though more than 60 years
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have completed after the independence. They still face various socio-economic
problems.2
Women entrepreneurs in India comprise a small proportion of the total
entrepreneurs. The emergence of women entrepreneurs has been hampered by attitudinal
constraints, social traditions and kinship system. Due to the lack of technical knowledge
and little competition from men, Indian women have contributed for the most part to
household industries. The spread of education and growing awareness among women
have motivated women to enter the fields of engineering, electronics, energy and such
other industries.
In spite of the small number of such units, women start units for manufacturing
solar cookers, TV, capacitors, electronic ancillaries, and small foundries. The growth of
women entrepreneurs in the country has been accelerated by several government agencies
and voluntary organization like Mahilamandals and so on. Indian women have become
more career-minded, economically independent and more achievement-oriented. They
would like to widen their scope of work and taste the fruit of achievement.
But, now, the scenario is changing fast with modernisation, urbanisation and
development of education and business. Thus, the opportunities of employment for
women have increased drastically.
Numbers of Women Entrepreneurs Registered in India
Registered women entrepreneurs in India are shown in Table 3.2.
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TABLE 3.2
Numbers of Women Entrepreneurs Registered in India
Source: Report of MSMEs, 12th
Five year plan2012-2017.
From above Table 3.2 discloses that Tamil Nadu stands first out of the total
number of units registered in India. Regarding the number of women entrepreneurs in
India, the first place goes to Uttar Pradesh followed by Tamil Nadu which holds the
second place. It is understood from the table that Tamil Nadu has taken more steps to
improve the growth and development of women entrepreneurs in Tamil Nadu with the
help of financial institutions and government agencies.
3.3.1 Various State Government’s Contribution
Several state governments in India like, Andra Pradesh, Kerala, Rajasthan,
Gujarat, Chandigarh, and Tamil Nadu have taken steps to promote women entrepreneurs.
Women
Entrepreneurship States
No of Units
Registered Rank
No of Women
Entrepreneurs Rank Percentage
Tamil Nadu 9,618 1 2,930 2 30.36
Uttar Pradesh 7,980 2 3,180 1 39.84
Kerala 5,487 3 2,135 3 38.91
Punjab 4,791 4 1,618 4 33.77
Maharashtra 4,339 5 1,394 6 32.12
Gujarat 3,872 6 1,538 5 39.72
Karnataka 3,822 7 1,026 7 26.84
Madhya Pradesh 2,967 8 842 8 28.38
Other States and UTs 14,576 9 4,185 9 28.71
Total 57,452 18,848 32.82
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Women co-operative finance corporation for the development of women entrepreneurs
was set up by Andrapradesh government in1975. A package of incentives to be availed
by women entrepreneurs is offered by the Government of Haryana. Exemptions from
payment of stamp duty and of registration of electricity duty up to a certain period have
also been offered along with them.
It is formed in Gujarat under the leadership of the noted social workers and in
Ahmedabad, with the membership of milk mards, vegetable vendors, casual workers and
the like. Loan for setting up the units at the rate of 12.5 per cent p.a is provided by
women entrepreneurs’ scheme being operated by the Gujarat financial corporation. .
Kerala State becomes a model for the development of women entrepreneurs in
India. The number of Industrial units runs by women entrepreneurs in Kerala in1975-76
was 73. It increased to 4, 190 industrial Units in 1993-94. The women entrepreneurs in
Kerala occupy a top position in all industries from readymade garments to high tech
computers. The women entrepreneurs in Kerala are at the age group between 36 and 46
years. Special assistance programme for women entrepreneurs to provide managerial
grant and various subsidiaries has been formulated by the government of Karnataka.
Assistance to skilled and trained women entrepreneurs under various schemes to
women entrepreneurs has been extended by financial corporation in Rajasthan and the
Government effort like Mahila Mandal, STEP (Support of Training and Employment
Programmes, Training cum production centre, RMK (Rashtriya Mahila Kosh), TRYSEM
(Training of Rural Youth for Self Employment), DWCRA (Development of Women and
Children in Rural Areas) etc lend support to women entrepreneurs.
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In the State of Madhya Pradesh (M.P) major entrepreneurship activities are
Co-ordinate through Centre for Development of Entrepreneurship in Madhya Pradesh
(CRDMAP). The centre organizes special training programmes women for short and
long durations.3
3.3.2 . Problems for the Growth of Women Entrepreneurship in India
There are a number of problems regarding the growth of women entrepreneurship
in India, which are given below
1. Absence of Definite Agenda of Life
The educated women do not like the limitation of their life with in the narrow
boundary of the house. They want equal opportunity and respect from their partners as
well as from the society. However, in India some women have reached good positions in
the business world. Yet, most of the women are either illiterate or semi-literate in rural
India. They haven’t got a proper idea of self-esteem and self-respect. The question that
arises immediately is how they can attain self-respect and have a definite agenda to reach
a good position in the society.
2. Absence of Balance between Family and Career Obligations
Women in general are concerned about family duties. They show no equal
concern for the duties in career. Women in India dedicate much their lives for the
welfare and care of their family members. But they fail to use their talent to create extra
income source for their families. It will also make them self-reliant. Some women have
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no least idea of self-reliance and can never think of it. But women need the support of
the family members to succeeded in business and extend their business and management.
3. Poor Degree of Financial Freedom
There is very poor financial freedom for women in Indian families, especially in
uneducated and rural families. Women in these families can’t take any decision on their
own to take up entrepreneurship without the family members’ consideration. They have
to consider also social ethics and traditions for women. A woman can’t commence any
business or any economic activity to become independent even if she is financially
dependent. Thus the dependency has become a vicious one for women in India.
4. No Direct Ownership of the Property
There is no doubt that the right of property is given as a legal provision in India.
But the right to property for women is still a question mark. A very few women have on
paper the right of property, but they are actually not aware of this right. They become
aware of it when there are problems in the family due to family disputes. Most of the
women do not enjoy their right of property and they have been treated just as mere
relatives to the family. It is a cause which keeps them in a ‘pervasive cycle of poverty’.
5. Paradox of Entrepreneurial Skill and Finance
Women from both the economically poor and rich families suffer from the
paradox of “have and haven’t” skills of entrepreneurship. Women from economically
rich families have the capital to invest, but they may lack good entrepreneurial skills. On
the other side, women from economically poor family have good entrepreneurial skills,
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but they haven’t got any financial support from their family member or relatives. Thus
the problems of women entrepreneurship are in a state of paradox.
6. No Awareness about Capacities
Awareness about individuals’ capacity should be created through increasing the
level of education. It is very unfortunate that the educational system in India is facing a
failure in creating awareness of ability and capacity of women and their hidden talent and
power for handling economic activities. There is an increase in the level of education for
women and social awareness to the role that women play in society, but it applies only to
women in urban India and not in rural India. Environment in the urban area is favourable
for identifying and creating awareness about women capacity and capability for doing
many things. On the contrary, the atmospheres in the rurual areas are unfavourable for
identifying and developing the capacity and ability of women.
7. Low Ability to Bear Risk
Women lead a protected life in India. The women in India are taught naturally by
several things to depend on the male members of her family from their girlhood period.
They are prevented from taking any risk even if they are ready to take any risk and have
the ability to bear it. But despite the restriction put on women, some women have proved
that they have the capacity to face and bear risks in entrepreneurial activities. They have
identified their rights, capacities potentials as well as they become aware of the potential
situations. As a result, they have entered various business and professions.
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However, entrepreneurial activities are not performed by the women in large scale
because of their lack of capacity. Therefore, the government should try through
conducting many awareness programmes for women to make them identify and develop
their risk bearing capacities.
8. Problems of Work with Male Workers
It is true that many women have skills for doing business, but they hesitate to
work with male workers and sometimes male workers are not ready to work with women
entrepreneurs. Most of women entrepreneurs are of the opinion that semi-educated or
uneducated class of workers cannot visualize and accept a "female boss" in their work
field.
9. Negligence by Financial Institutions
Banks and financial institutions play an important role of financers to
entrepreneurs in the developing countries for small and medium size firm operators do
not borrow from the capital market. But, these banks and financial institutions under
estimate the women entrepreneurs, are reluctant to provide credit to them because of their
traditional mind set about women.
10. Lack of Self-confidence
Women have a strong mental outlook and an optimistic attitude which create fear
in them of committing mistakes while working. Women’s potential for entrepreneurial
development cannot be accepted by the family members and the society, which always
look down them. Women must face boldly such situation and develop their
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self-confidence to break such barriers, but women in India feel that they need a well
secured life for developing their self-confidence. Thus they are not both mentally and
economically self-reliant.
11. Lack of Professional Education
The main causes for the low rate of women entrepreneurship in our country are
poverty and illiteracy. Parents are unwilling to send their daughters for studying
professional education. Sometimes, many women lack their entrepreneurial bent of mind
even though they take training through attending the entrepreneurial development
programme.
12. Mobility Constraints
One of the major problems for women for entrepreneurial development is
mobility. They never like to leave their place for business activities and prefer to stay
and do business in their residential areas. Mobility is an important quality for an
entrepreneur. As women entrepreneurs tend to do business in their local area of living
and are seen disproportionately in their areas of birth or living.
13. Lack of Interaction with Successful Entrepreneurs
Lack of interaction with successful entrepreneurs is also one of the problems in
women entrepreneurship in India. Successful entrepreneur become the role model in the
society for women with the ability of entrepreneurial activities and who undertake
economic activities to prove their ability. But, there is no enough provision for such
69
interaction to inculcate knowledge and make them aware of the experiences of successful
women entrepreneurs.
3.3.3 .Development Activities of Women Entrepreneurs in India
In India, entrepreneurship for the development of women is an essential part of
human resource when compared with other countries. But, the growth of women
entrepreneurship is very low in India, especially in the rural areas. Moreover, women
from middle class are less enthusiastic to change their role because of their fear to face
the social backlash. The development is more found in the families at upper class society
in urban areas.
Several institutional arrangements have been made to protect and develop women
entrepreneurship in India. The Nationalized Banks and State Financial Corporations
advance loans to women entrepreneurs on a preferential basis. State Industrial
Development Corporations and District Industries Centers give loans, subsidies and
grants to small-scale women entrepreneurs. State level agencies help women
entrepreneurs in preparing project reports, purchasing machinery and building and
training and hiring staff. The Federation of Indian Chambers of Commerce and Industry
(FICCI), FICCI Ladies Organisation (FLO), National Alliance of Young Entrepreneurs
(NAYE) and other voluntary agencies lend assistance to women entrepreneurs. Under
the Social Education Scheme of Community Development Programme, Mahilasangams
(Women’s groups) were organized and women’s Industrial co-operatives were set up in
19582. Within the overall aim of promoting regional co-operation by strengthening
technology transfer mechanism in the Asia-Pacific Region, the Asian and Pacific Centre
70
for Transfer of Technology have actively been promoting development of women
entrepreneurship and participation of women in the field of technology. The APCTT
implements projects which have been funded by multi-and bilateral donor organisations
for technical training for women and programmes for technology exposure training for
trainers in spreading technology to rural women. Under the banner of “Technology
sharing among grass-root women’s groups in the food processing sector” the Centre
organised a series of workshops and technical training programmes were organized by
the centre during 1997-1998.
In addition, various government agencies are involved in the development,
promotion, monitoring, evaluation and expansion of women entrepreneurship
programmes. Some of them are listed here, namely Entrepreneurial Development
Institute (EDI), National Small Industries Corporation Limited (NSIC), Small Industries
Development Organisation (SIDO), District Industries Centre (DIC), National Level
Standing Committee on Women Entrepreneurs (NLSCWE), National Research
Corporation of India (NRDCI), The National Alliance of Young Entrepreneurs (NAYE),
Indian Council of Women Entrepreneurs (ICWE), Federation of Indian Chambers of
Commerce and Industry (FICCI), National Commission of Self Employed Women in the
Informal Sector (NCSEWIS), World Association of Women Entrepreneurs (WAWE),
Associated Country Women of the World (ACWW), National Association of Women
Entrepreneurs and Executives (NAWEE), The Industrial Development Bank of
India(IDBI), Industrial Finance Corporation of India (IFCI), Self-Employed to Educated
Unemployed Youth (SEEUY), Women Development Project (WDP), Development of
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Women and Children in Rural Area (DWCRA), Science and Technology for Women
(STW), Training of Rural Youth for Self Employment (TRYSEM), National Institute for
Entrepreneurship and Small Business Development (NIESBUD). The women
entrepreneurs have to approach the nearest commercial banks, institutions and
co-operatives to know the different schemes and to take advantage of this programme of
assistance.4
Thus, a positive growth in women entrepreneurship has been noticed. As more
and more motivation and support are provided to them, it will definitely enhance their
socio-economic status, which is a pre-requisite for the growth and development of
women entrepreneurs.
3.3.4 Development of Women Entrepreneurs in Different Decades
1. Women Entrepreneurs of the Fifties
These women can be divided into two categories. The first category of women
created and managed entrepreneurial activity, where there was no male to generate
income. The woman abandoned her education and put aside her other aspirations and
became the generator of income for the family. The women of second category took
charge of the enterprise the husband had to avoid her own family and to be the losers.
There was a need of enormous courage to break through the social maps and
coding for both the category of women. However, such types of women required in the
fifties were only few. In many cases, the businesses were taken away by relatives and
the women and their families lived depending on them whether they had or did not have
the resources.
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2. Women Entrepreneurs of the Sixties
Sixties was the decade when many women educated in schools and colleges
began to have aspirations. Women married accepting the social coding of the
socio-cultural traditions. But soon they took small steps to start small one-woman
enterprises at home. These were still activities for self-occupation and engagement but
behind these were the seeds of aspirations to discover a meaning for the self and
economic choices. This was still not for economic autonomy or economic
self-sufficiency.
3. Women Entrepreneurs of the Seventies
A critical mass of women had their education and entered the work force as
professionals in this decade. New frontiers were opened by the women in this decade.
These women unlike their mothers had aspirations and ambitions. They opted for
self-employment or chose a one-woman enterprise or employed several others. It was an
active step swimming upstream and walking uphill. It was not the choice made out of
compulsions or helplessness, but it was the choice made actively to take charge of one’s
own life. It was choice which began for many in their parental family and continued in
their own personal homes.
i. Women thought work as an integral aspect of their life space.
ii. The social system and occupation were equally significant in the generation of
income and choice of career.
iii. A different role and life were aspired by educated and qualified women and their
mothers and grandmothers.
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iv. Homes, marriage, children and occupation were wanted by women.
v. The social traditional role behaviour from the older generation was accepted by
the women, but understanding and support from their husbands, colleagues and
children expected by them in their choice of occupation. They looked for
redefinition of systems and redesigned interfaces across the systems and
institutions they worked with.
vi. In their entrepreneurial roles, the women were willing to share their
responsibilities of the work and also wanted their enterprise to grow and succeed.
They wanted their voices to be heard as leaders to employees and as managers of
the enterprise to the outside business environment.5
4. Women Entrepreneurs of the Eighties
Both the social and occupational roles were accepted by the women entrepreneurs
of 50's, 60's and 70's. They tried to balance these two roles played by them. In eighties
the women were educated in highly sophisticated technological and professional
education. Several women had medical, engineering and similar other degrees and
diplomas. Many women entered the industry of their fathers and husbands as partners
with equal contribution. Women in other areas opened their own clinics and nursing
homes and many more women small boutiques, small enterprises of manufacturing and
entered garment exports. It was the decade of the breakthrough for women in several
fields and frontiers.
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5. Women Entrepreneurs of the Nineties
The women entrepreneurs, who belonged the nineties, were a different kind of
women qualitatively. They had a role model for them in the women of earlier
generations. Capability, competency, confidence and assertiveness were attributes of the
women of the nineties. These women nineties knew, what choice they had to make, had
a clear idea about what they wanted to do and went ahead of doing them and finally did
it. Nineties had given many women, who started an enterprise and fostered and nurtured
it to grow. There were a number of other women who entered their fathers’ or husbands’
enterprises and made a good contribution to them with their competencies and
capabilities. It happened sometimes that these women outshone “their fathers’ or
husbands’ names”. The traditional coding of their roles was questioned by the women of
nineties and they became very conscious of their own identify and voice. The economic
independence helped women acquire self-reverence and was able to discover that they
could deal with a situation themselves single-handedly. Women of present time have
become fearless, learn to live independently, travel alone, and rear children without the
help of anyone if there occurs any failure in married life or life partnership or life in
general. Some Women prefer to be single and lead a quiet satisfied life and are very
successful in their work and business. Many women and couples today chose to lead a
life without bearing children since they want to focus their attention fully on work,
relationships and enjoying freedom. Lots of women in nineties decided to have one child
in order to meet well the demands of home as well as work. They have been able to
integrate the multiple roles played by them in various different systems.
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6. The Women Entrepreneurs of the 21st Century
The 21st Century is the century of IT, telecom and financial institutions. The
expertise of women in all the industries have begun to emerge and women can be seen
emerging as a force. The new opportunities are boon for professionally trained and
enterprising women. However, the women still have to overcome a few barriers, pre-
conceived notions, strongly established assumptions and rules and gender problems in the
secondary environment.
The transition to the millennium is marked by the women creating new model of
being a daughter who takes her parents’ responsibility, a wife who wishes to make a new
home and a family and a mother who takes the charge of the children and develop them
suitable for the new millennium. She also plays the role of the entrepreneurs who
establishes an enterprise and discovers the relevance and the meaning of her life in
herself. She becomes aware of the uniqueness of her identity and accepts it and is ready
with her willingness to share the space. She searches simultaneously for respect, dignity
and mutuality. She is open to life without marriage and parenting without a father.
The combination of mother-son has shown that women have succeeded in
motivating their son to follow their path, whereas the son followed a way of the father
earlier. The next millennium offers a space beyond the present horizon, where there is
active engagement instead of mere hope, there are commitments instead of dreams, there
are choices instead of aspirations and there are convictions instead of ideals and there is
acknowledgement of one’s own uniqueness of identity.
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This discovery helps women create and build industrial empire from the initial
steps which they have taken. Women in India in the next millennium will have to cross a
major threshold and enter land which is unknown. They will have to travel on a path
where no one existed with a sense to discover.
They will have to encounter many things and lead life with excitement and
enthusiasm on other one side and threat, fears, anxieties and terror on the other side. The
women today will give their identity a new shape by having trust in their self, the
resource, to be generated, the courage to journey forth in a new land and to live through
the territories of uncharted land. The women will discover their different voice, which
has been suppressed through centuries, echoing the freedom for living and working and
joys derived from the enjoyment of beauty around.6
3.4 WOMEN ENTREPRENEURSHIP IN TAMIL NADU
Tamil Nadu has got an important place in the industrial map of India. Despite the
fact, it is very poor in the important industrialized inputs such as coal, coke iron, ore and
such other things. Tamil Nadu is an advanced industrial state among the other four states
in the southern region namely Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.
The industries such as cotton, textile, cement, engineering and chemicals rely
upon the countries in the northern region for requirements of raw material. It is not
profitable to establish such industrial units in Tamil Nadu from the economic point of
view. Yet, the entrepreneurs in Tamil Nadu have got an entrepreneurial zeal, overcome
the economic handicaps inspired with it and made Tamil Nadu an industrially developed
state. In order to fulfill some of the national objectives like balanced regional
77
development, industrialization, import substitution, promotion of employment and so on,
the Government of Tamil Nadu has entered business. The unemployed women who have
traits of enterprising and hard working have been encouraged to set up agro-based
industries in their villages in Tamil Nadu. The development of women entrepreneurship
is given more importance by the state government. In Tamil Nadu special
entrepreneurship development programs are being conducted exclusively for the
promotion of women entrepreneurs by the agencies such as Small Industries Service
Institute at Chennai, the Industrial and Technology Consultancy Organization of Tamil
Nadu and the Tamil Nadu Industrial Investment Corporation.
3.4.1 Registered Entrepreneurs by the MSMEs
Registered entrepreneurs under the micro, small and medium enterprises in Tamil
Nadu are shown in the following Table 3.3.
TABLE 3.3
Entrepreneurs by the MSMEs at District Industrial Centres under the
Tamil Nadu during 2007-08 to 2013-14
Year Registered entrepreneurs for
MSMEs at DICs (in Nos) Percentage
2007-2008 27309 6.25
2008-2009 32049 7.33
2009-2010 41799 9.56
2010-2011 57902 13.25
2011-2012 70639 16.16
2012-2013 90974 20.81
2013-2014 116393 26.63
Total 387065 100.00
Source: Entrepreneurs Memorandum, Ministry of Micro, Small & Medium Enterprises,
Nirman Bhawan, New Delhi, (Part-II), p.3.
78
Table 3.3 shows the registered entrepreneurs under the micro, small and medium
enterprises in Tamil Nadu during the years from 2007-2008 to 2012-2013. The total
numbers of registered entrepreneurs are 6.25 per cent (27309 in numbers) in the
beginning of year 2007-2008 and the same rose to 26.63 per cent (90974 in numbers) by
the end of 2012-2013. The registered entrepreneur with continuous increase was
witnessed during this period.
3.5. ENTREPRENEURSHIP DEVELOPMENT IN SIVAGANGAI DISTRICT
Sivagangai, is one of the few spices trading centers of south India. It became a
district on the 15th
March 1985. Traders and merchants make a ‘beeline’ to Sivagangai to
buy and sell their goods and services. The humid climate is one of the factors responsible
for the growth of textile industries. The growth of textile industries led to the growth of
numerous small scale and ancillary units. Sivagangai district has specialized institutions
in engineering and medicine. These teacher training organizations play an active role in
the formation of technical and managerial facilities for the people of Sivagangai district.
The growth of entrepreneurship has been phenomenal and its contribution to the
nation is impressive. Entrepreneurs emerging from Sivagangai have branched off and
extended their activities elsewhere. They have also provided a multiplied effect in
industrialization. There have been many cases where small-scale industrial firms have
attained the status of large-business houses in Sivagangai.
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Sustainable entrepreneurial development can be said to occur when industry
progresses from an embryo stage to the stage of growth and maturity. The same should
be related to the generations of entrepreneurs. Excellent cases can be found in
Sivagangai where entrepreneurship has been sustained for two or three generations. But
as far as women entrepreneurship is concerned, all belong to the first generation of
entrepreneurs.
Sivagangai District contains different social categories from workers to
entrepreneurs. Technical education and industrial development are highly responsible for
this. The family atmosphere has also helped to create many women entrepreneurs.
Family entrepreneurship has played an important role in the development of enterprises
in the district as in countries like Germany, United Kingdom and U.S.A. Some of the
local entrepreneurs are highly responsible for the development of enterprises in general.
There are many avenues available for promoting women entrepreneurship in this district.
Several welfare schemes and voluntary organizations have also been established for the
development of women entrepreneurship in Sivagangai district.
Sivagangai District Small Scale Industries Association and Mahalir Thittam
Projects and other voluntary organizations are some of the associations, which promote
women entrepreneurship in this district. The Scheme for the establishment of District
Industries Centre (DIC) was introduced on 1st May 1985 with the intention that under a
single roof, a rural entrepreneur should be able to get necessary benefits of guidance
about all matters related to industries. The Sivagangai District Industries Centre was
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commenced in the year 1985 to promote entrepreneurship development. It has been
conducting a training programme exclusively for women entrepreneurs.
3.5.1 REGISTERED WOMEN ENTREPRENEURS IN SIVAGANGAI DISTRICT
Total number of registered women entrepreneurs in District Industries Centre in
Sivagangai District as shown in Table.3.4
TABLE 3.4
Registered Women Entrepreneurs Six Taluks of Sivagangai District
Name of the Taluk Registered Women Entrepreneurs
Karaikudi 661
Tiruppattur 982
Devakottai 518
Manamadurai 612
Sivagangai 1148
Ilayankudi 206
Total 4127
Source: District Industries Centre Sivagangai.
It is understood from Table 3.4 that there are 4127 register under Sivagangai
District of Tamil Nadu. Out of which Sivagangai holds 1148 unit. Thiruppattur taluk
comes to the second position in term of 982 units and next comes Manamadurai with 612
units. Based on the available data in table Karaikudi, Manamadurai and Devakottai have
more than 500 registered units where as the growth of women entrepreneurs in
Illayankudi is least satisfactory.
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3.5.2 Role of DIC in Sivagangai District
Till 1978, the Directorate of Industries was the principal agency in a state for
looking after the development of small, tiny, village and cottage industries’. However,
with the coming into being of various development and financial corporation’s its role
has become regularity. As result, the promotional aspect of small-scale industries has
been relegated to the background. A District Industries Centre is an institution at the
district level which provides service and facilities to entrepreneurs at one and the same
place so that they may set up small and village industries. The DIC also arranges for the
supply of scarce raw materials and in marketing the produced goods. Under the DIC,
import assistance is extended to industrialists.
3.6 THE GROWTH AND DEVELOPMENT OF WOMEN ENTREPRENEURS
IN THE STUDY AREA
The growth and development of women entrepreneurs in the study area is
explained below through their activities such as location of the industry, ownership of
building, type of industry, nature of enterprises, type of labour employed, method of
production and sources of capital.
3.6.1 Location of the Industry
The enterprise may be located in rural, urban and semi-urban areas. When a unit
has all the basic facilities needed without any investment, normally it can utilize the
available resources effectively, efficiently and can grow well. A unit can be located in
other area for the availability of his land or for personal reasons. These may influence its
growth. Thus the location of the unit was considered to have influenced by the growth of
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industrial units. The enterprises run by women entrepreneur in Sivagangai District are
both in rural and urban areas. Table 3.5 reveals the classification of enterprises on the
basis of location.
TABLE 3.5
Location of the Industry
Sl. No. Location No. of Respondents Percentage to Total
1. Urban 291 63.26
2. Rural 144 31.30
3. Semi-urban 25 5.44
Total 460 100.00
Source: Primary Data.
It is observed from Table 3.5 that out of 460 women entrepreneurs, 291 (63.26%)
of the enterprises are located in urban areas, 144(31.30%) of the enterprises are located in
rural areas and the remaining 25(5.44%) of the enterprises are located in semi-urban
areas.
Table 3.5 shows that, the nearly two-thirds of the enterprises (63.26%) are located
in urban areas.
3.6.2 Status of the Industry
Most of the women entrepreneurs have started industrial units such as registered
unit and unregistered unit. The details are presented in Table 3.6.
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TABLE 3.6
Status of the Industry
Sl. No. Status of Unit No. of Respondents Percentage to Total
1. Registered 404 87.83
2. Unregistered 56 12.17
Total 460 100.00
Source: Primary Data.
It could be seen from Table 3.6 that out 460 entrepreneurs, 404 (87.83%) of the
women entrepreneurs have started the registered industrial units and the remaining
56(12.17%) of the entrepreneurs have started the unregistered industrial units. Most of
the women entrepreneurs (87.83%) have started the registered industrial units.
3.6.3 Place of Business
Women have to play dual role both in the family and business. It will be easy for
them to look after their business and their family, if the working place is nearer to their
home. Table 3.7 reveals the place of business.
TABLE 3.7
Place of Business
Sl. No. Place of Business No. of Respondents Percentage to Total
1. Attached to the residence 193 41.96
2. Not 267 58.04
Total 460 100.00
Source: Primary Data.
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Table 3.7 reveals that out of 460 women entrepreneurs, 193 (41.96%) of the
enterprises are attached to the residence and the remaining 267 (58.04%) of the
enterprises are not attached to the residence. Most of the enterprises (58.04%) are not
attached to the residence.
3.6.4 Ownership of Building
Women entrepreneurs are run by the industrial units either in their own buildings
or in rented premises. Table 3.8 shows the classification of enterprises on the basis of
ownership of the building.
TABLE 3.8
Ownership of Building
Sl. No. Ownership No. of Respondents Percentage to Total
1. Owned Building 42 15.73
2. Rented 90 33.71
3. Leased 124 46.44
4. Industrial Estate 11 4.12
Total 267 100.00
Source: Primary Data.
It could be seen from Table 3.8 that 15.73 per cent of the enterprises function in
their own buildings and 33.71 per cent in rented buildings. Enterprises which are
functioning in leased buildings amounted to 46.44 per cent and the remaining 4.12 per
cent of the enterprises are functioning in the Industrial Estate. More than three-fourths of
the enterprises (46.44%) are run by women entrepreneurs function in their leased
buildings.
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3.6.5 Type of the Industry
Based on the capital requirements and functional convenience, respondents have
chosen different types of industry. The important types of industrial units are presented
in Table 3.9
TABLE 3.9
Category/Type of the Industry
Sl. No. Particulars Number of
Responses
No. of
Respondents
Percentage to
Total
1. Chemical 34 460 7.39
2. Engineering 91 460 19.78
3. Electrical and Electronics 80 460 17.39
4. Food and Food based 40 460 8.70
5. Garments 18 460 3.91
6. Handicrafts 35 460 7.61
7. Poultry and Animal Feeds 55 460 11.96
8. Tiles, Marbles and Granites 38 460 8.26
9. Printing, Publishing and
Allied
33 460 7.17
10. Leather and Leather based 21 460 4.57
11. Plastic based 22 460 4.78
12. Tyre and Retreading 25 460 5.43
13. Miscellaneous 26 460 5.65
Source: Primary Data.
It is seen from Table 3.9 that 518 responses have collected from 460
entrepreneurs. Out of 460 respondents, 34 (7.39%) entrepreneurs have preferred to start
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chemical units, 91 (19.78%) of them have preferred to start engineering units,
80(17.39%) of them have preferred to start the electrical and electronic units, 40(8.70%)
of them have preferred to start the food and food-based units, 18(3.91%) of them have
preferred to start the garment units, 35(7.61%) of them have preferred to start handicrafts
units, 55(11.96%) of them have preferred to start poultry and animal feeds industry,
38(8.26%) of them have preferred to start tiles, marbles and granites industrial units,
33(7.17%) of them have preferred to start the printing, publishing and allied industrial
units, 21(4.57%) of them have preferred to start leather and leather based industries,
22(4.78%) of them have preferred to start plastic-based industrial units, 25(5.43%) of
them have preferred to start tyre and retreading business units and the remaining
26(5.65%) of the entrepreneurs have preferred to start miscellaneous units. Most of the
respondents (19.78%) have preferred to start the engineering units.
3.6.6 Nature of Enterprises
In general, nature of enterprises is classified into two categories such as labour
intensive and capital intensive. The main advantage of industrial units is that they can
provide more employment opportunities with less investment. Most of the industrial units
are labour intensive and have a high potential in employment generation. Some industrial
units make use of certain machines and equipments for doing certain functions. If the
units are more labour intensive, such units will face additional problems and are forced to
meet additional expenses for their growth. This makes the benefits received by the units
of labour intensive be less and so their growth may be less. Hence, the nature of unit
influences the growth. The details are presented in Table 3.10.
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TABLE 3.10
Nature of Enterprises
Sl. No. Nature of Enterprise No. of Respondents Percentage to Total
1. Labour Intensive 332 72.17
2. Capital Intensive 128 27.83
Total 460 100.00
Source: Primary Data.
It is inferred from Table 3.10 that 72.17 per cent of the units are labour intensive
units and the remaining 27.83 per cent of the units are capital intensive units. More than
three-fourths of the small scale units (72.17%) run by women entrepreneurs are labour
intensive units.
3.6.7 Type of Labour Employed
The type of labour employee can be classified into three category such as
permanent employee, temporary employee and employee on the basis of consolidated
salary. The details are given in Table 3.11
TABLE 3.11
Type of Labour Employed
Sl. No. Type of Labour
Employed No. of Respondents Percentage to Total
1. Permanent 231 50.22
2. Temporary 212 46.08
3. Consolidated 17 3.70
Total 460 100.00
Source: Primary Data.
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It could be seen from Table 3.11 that out of 460 entrepreneurs, 50.22 per cent of
the employees have worked permanently in the enterprises, 46.08 per cent of them have
worked temporarily in the industrial units and the remaining 3.70 per cent of the
employees have worked on the basis of consolidated salary. Hence, it is concluded that
most of (50.22%) the employees have worked permanently.
3.6.8 Method of Production
There are different methods of production produced by the members of
Entrepreneurs. The method of production is categorized such as mechanical, manual and
both. These details are presented in Table 3.12.
TABLE 3.12
Method of Production
Sl. No. Method of Production No. of Respondents Percentage to Total
1. Mechanical 32 6.96
2. Manual 98 21.30
3. Both 330 71.74
Total 460 100.00
Source: Primary Data.
It is clear from Table 3.12 that out of 460 respondents, 32(6.96%) of the
respondents have produced mechanical products, 98(21.30%) of them have produced
manual products and the remaining 330(71.74%) of them have produced both mechanical
and manual products.
It is evident from the above analysis that 330(71.74%) majority of the
entrepreneurs have produced both mechanical and manual products.
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3.6.9 Sources of Capital
The sources of capital indicate from where the enterprises mobilized their capital.
Since the sources of capital determine the cost of capital and also the profitability of the
enterprises, it is included in the present study. In general, the enterprises may mobilize
their capital from one or more sources. So, in the present study, the respondents are
allowed to represent multi-response on the sources of capital. The sources of capital in
the study are classified into own, friends and relatives, private money-lenders, chit funds,
commercial banks and self-help groups. The percentage to the total for each source is
found out to validities the importance of the source of capital among the rural
entrepreneurs.
TABLE 3.13
Sources of Capital among the Entrepreneurs
Sl. No. Sources of Capital No. of Respondents Percentage to Total
1. Own Fund 78 16.96
2. Friends and Relatives 53 11.52
3. Private Moneylenders 44 9.56
4. Chit Funds 64 13.91
5. Commercial Banks 182 39.59
6. Self-help Groups 39 8.46
Total 460 100.00
Source: Primary Data.
It could be known from Table 3.13 that the important sources of capital among
the rural entrepreneurs are own, friends and relatives, private moneylenders, chit funds,
commercial banks and self-groups since the respective percentage to the total are 16.96
per cent, 11.52 per cent 9.56 per cent 13.91 per cent, 39.59 per cent respectively. The
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least source of capital among the rural entrepreneurs is Self Help Groups which records
just 8.46 percent.
Hence, it is concluded that most of (39.59%) the entrepreneurs’ sources of capital
are borrowed from commercial banks.
3.7 SUMMARY
This chapter has dealt with the significance of the women entrepreneurs as a
human resource for the development of economy of a state and nation and the creation of
employments for themselves and others. It has shown the entry of women in all sorts of
business. Now, they are not only the businesses prescribed for women but also the ones
men do. It has also displayed that women entrepreneur as women are still facing many
problems, which are obstacles in their path to do business well and come out ultimately
successful and which have recently attracted the attention of the universal bodies. The
study of this chapter has examined the role of tradition and such other things in the
prevention of the emergence women entrepreneurs in large number in India.
Various problems like the absence of definite agenda of life and balance between
family and career obligation, poor degree of financial freedom no awareness of capacity,
low ability to bear risk and so on have been analyzed. A detailed study has been done
on the growth and development of women entrepreneurs form fifties up to 21st century.
The place of women entrepreneurs in Tamil Nadu and the study area of Sivagangai have
been assessed. The steps taken by various state government of India for the promotion of
women entrepreneurs has also been discussed.
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REFERENCES
1. Anita Mehta and Mukund Chandra Mehta, Rural Women Entrepreneurship in
India, Opportunities and challenges, International Conference on Humanities,
Geography and Economics (ICHGE'2011) Pattaya Dec. 2011, p.313.
2. V. Arakeri Shanta, Women Entrepreneurship in India, National Monthly
Refereed Journal of Reasearch in Arts and Education, ISSN 2277-1182, volume
No.1,Issue No.3, pp.3-5.
3. Rashmi Gopinathan, Impact of Women Entrepreneurship Development on
Families: A Study of Women run micro-enterprises in Selected districts of
Maharashtra. Thesis Submitted to the Padmashree Dr. D. Y. Patil University, June
2010
4. Indira J. parikh, A Reflection of the Indian Women in Entrepreneurial World,
Indian Institute of Management, Ahmedabad, India, August 2005, pp.4-12.
5. World Conference of the United Nations Decade for Women: Equality,
Development and Peace: Copenhagen, Denmark, July 1980.p.14
6. World Conference of the United Nations Decade for Women: Equality,
Development and Peace : Copenhagen, Denmark, July 1980.pp.17-30.