PROBLEMS OF WOMEN ENTREPRENEURSHIP IN MICRO, SMALL & MEDIUM ENTERPRISES IN INDIA: AN ANALYSIS Kousik Dari Assistant professor, Department of Commerce, Nabagram Hiralal Paul College, University of Calcutta, West Bengal, India Abstract Micro, Small and Medium Enterprises (MSMEs) play a vital role for the growth of Indian economy by contributing 50% of industrial output, 40% of exports, employing 120 million people in India, create 11.10 crores jobs every year and produce more than 8000 quality products for the Indian and international markets. But in the globalised world, Women owners are playing a vital role and they have become an integral part of the global quest for the sustained economic development and social progress. Entrepreneurship among Women is relatively recent phenomenon. Women Entrepreneurship is gaining importance in India. In the India, more and more Women are taking up entrepreneurial activity especially in (MSMEs).Women owners captured 13.72% of MSME sector as a whole and the percentage distribution of enterprises in Micro (14.19), in small (5.06) and Medium (4.21) both are in rural and urban areas. At the same time Women entrepreneurs are facing problems like shortage of finance, marketing, stiff competition etc. For the said problems government of India takes necessary steps to remove it by way of giving training programmes, make aware of the schemes and plans of government, making provision of micro credit and providing special relief announced by the Govt. of India in first tranche of economic package on May 13, 2020 during COVID 19 etc. This paper primarily focuses on the problems faced by Women entrepreneurs in the business environment. Keywords: Entrepreneurship, MSMEs, Women Ownership; JEL Classification: L26, G21, P31; Wutan Huatan Jisuan Jishu Volume XVI, Issue XII, December/2020 ISSN:1001-1749 Page No:1406
12
Embed
PROBLEMS OF WOMEN ENTREPRENEURSHIP IN MICRO, SMALL ...
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
PROBLEMS OF WOMEN ENTREPRENEURSHIP IN MICRO, SMALL
& MEDIUM ENTERPRISES IN INDIA: AN ANALYSIS
Kousik Dari Assistant professor, Department of Commerce, Nabagram Hiralal Paul College, University of Calcutta, West
Bengal, India
Abstract
Micro, Small and Medium Enterprises (MSMEs) play a vital role for the growth of Indian economy
by contributing 50% of industrial output, 40% of exports, employing 120 million people in India,
create 11.10 crores jobs every year and produce more than 8000 quality products for the Indian and
international markets. But in the globalised world, Women owners are playing a vital role and they
have become an integral part of the global quest for the sustained economic development and social
progress. Entrepreneurship among Women is relatively recent phenomenon. Women
Entrepreneurship is gaining importance in India. In the India, more and more Women are taking up
entrepreneurial activity especially in (MSMEs).Women owners captured 13.72% of MSME sector as
a whole and the percentage distribution of enterprises in Micro (14.19), in small (5.06) and Medium
(4.21) both are in rural and urban areas. At the same time Women entrepreneurs are facing problems
like shortage of finance, marketing, stiff competition etc. For the said problems government of India
takes necessary steps to remove it by way of giving training programmes, make aware of the
schemes and plans of government, making provision of micro credit and providing special relief
announced by the Govt. of India in first tranche of economic package on May 13, 2020 during
COVID 19 etc. This paper primarily focuses on the problems faced by Women entrepreneurs in the
business environment.
Keywords: Entrepreneurship, MSMEs, Women Ownership;
JEL Classification: L26, G21, P31;
Wutan Huatan Jisuan Jishu
Volume XVI, Issue XII, December/2020
ISSN:1001-1749
Page No:1406
1. Introduction:
MSMEs are complementary to large industries as ancillary units and this sector contributes
enormously to the socio-economic development of the country. There is a consistent and continuous
growth of MSMEs in our country. MSMEs have increased from about 80,000 units in the 1940s to
more than 633.88 lakhs units till 2019-20.The MSMEs produce more than 7,500 products and the
MSME sector contributes to 45% of India‟s total Industrial Employment, 50% of India‟s total
Exports and 95% of all industrial units of the country.
MSME in India has the potential to increase the share of contribution to GDP from the current 8% to
about 15% by the year 2020. The MSME sector in India is highly heterogeneous in terms of the size
of the enterprises, variety of products and services produced and the levels of technology employed.
As per the estimates of 4th
All-India Census of MSMEs (2006-07), the number of enterprises is
estimated to be about 26 million and provide employment to an estimated 60 million persons. Of the
26 million MSMEs, only 1.5 million are in the registered segment while the remaining 24.5 million
(94%) are in the unregistered segment. The sector is dominated by micro units, of the total working
enterprises, the proportion of micro, small and medium enterprises were 95.05%, 4.74% and 0.21%
respectively.
According to final report of MSME fourth All India Census, MSME is an important sector and plays
a critical role and has an important place in the Indian economy, in terms of employment Generation,
exports and economic empowerment. For the year 2011-12, total number of enterprises in the MSME
sector is 261.12 lakh of which 15.64 lakh are registered. 14.85 lakh enterprises are registered in the
micro sector, 0.76 lakh in the small scale sector and 0.03 lakh in the medium sector. Out of total,
28.60% enterprises belong to the manufacturing sector and 71.40% belong to the services and repairs
and maintenance. It provides employment to 1109.09 lakh persons in the country. The sector has
registered gross output of Rs.7,07,57 crore. Total number of exporting units from the country was
49.81% in the year 2019-20 (till December 2019) as per the data from Directorate General of
Commercial Intelligence & Statistics (DGCI&S) .
Entrepreneurship among Women is relatively recent phenomenon. In modern India, more and more
Women are taking up entrepreneurial activity especially in Micro, Small and Medium enterprises
(MSMEs). The Women MSMEs sector in India has a pivotal role to play in the socio-economic
development of the country. Women in India constitute about 50 percent of the country‟s population.
Hence, Women are regarded as the „better half of the society‟. In earlier days, While Women
entrepreneurs create new jobs for themselves and also for others they faced several types of problems
Wutan Huatan Jisuan Jishu
Volume XVI, Issue XII, December/2020
ISSN:1001-1749
Page No:1407
like shortage of finance, marketing problem, scarcity of raw materials, high competition in market,
family conflicts, lack of education, low risk bearing ability, male dominated society, little bit
knowledge of business administration, socio cultural barriers, exposed to the training programs and
lack of confidence in their strength and competence etc.
2. Review of Literature:
Alit Sen Guptha (2012) says that the paper tries to focus on the Women entrepreneur development
prospects. The survey and the study brought to light the capacity of the Women who came forward
with the ability to use the unutilized resource. The sample survey of the various districts clarifies that
though immense prospect prevail and the zeal of the Women to start something new has been
crushed down with the ongoing problem prevailing in the area. The objective of the study was to
explore the hidden prospect of Women Entrepreneurship and to find technique to up lift anxiety for
leadership in Women while tracking to reach the expected objective the methodology so adopted was
a sample convenient method for various districts.
Bharathi & Reddy (2013) examined that in order to improve the status of Women Entrepreneurship
in rural area, the Govt. need to take an initiative in providing a facilitative environment for rural
Women entrepreneurs. It also aims to explore the present status of Women entrepreneurs regarding
their socio economic background, problems faced by them in seeking to create new ventures,
motivational factors and available finance for them in Kadapa district, A.P.
Deepti Pachauri (2012) attempt study that based on the emergence of Women Entrepreneurship
making significant impact in all segments of economy and the problems faced by them in setting up
and running their enterprise. The study was conducted in various training centers of KVIC, MSME
to collect the data and no. of Women entrepreneur trainees‟. The study was based on secondary data
collected from various training institutes, SSI office and financial banks which provide financial
assistance. Women entrepreneurs are having innovative thinking and foresightedness yet proper
planning and execution is required at all levels. A majority of Women entrepreneurs are from middle
class families have low technical education but desire to become entrepreneurs. The literacy and
educational status of Women improved considerably during the past few decades. At this juncture
effective steps are needed to provide entrepreneurial orientation and skill awareness to Women.
Goyal and Parkash (2011) opined that the educated Indian Women have to go a long way to
achieve equal rights and position because traditions are deep rooted in Indian society where the
sociological set up has been a male dominated one.
Jyothi Bahl (2012) expressed that the Entrepreneurship has gained greater significance at global
level under changing economic scenario. After independence, several Entrepreneurship development
Wutan Huatan Jisuan Jishu
Volume XVI, Issue XII, December/2020
ISSN:1001-1749
Page No:1408
programs have been started to develop the skill, knowledge, and competence among the
entrepreneur. In spite of various Entrepreneurship development programmes launched by the Govt.
and non-government agencies, the entrepreneurs are encountering a number of problems for
establishing economically viable small- scale units. Women contribute significantly to the running of
family businesses mostly in the form of unpaid effort and skills. Rural Entrepreneurship is the
answer to removal of rural poverty in India. The problem is that most of the rural youth do not think
of Entrepreneurship as the career option. Therefore, the rural youth need to be motivated to take up
Entrepreneurship as a career, with training and sustaining support systems providing all necessary
assistance.
3. Objective of the Study:
The present paper primarily aims at focusing on the different problems faced by Women in micro
small and medium enterprises (MSMEs) in India. More specifically it highlights on the
1. Present position of MSMEs in India.
2. Factors influencing in Women enterprises.
3. Recommending some suggestion for further development.
4. Database and Methodology:
Methodology followed in present study is predominantly an analytical one. Data of the present study
have been collected from secondary source like published reports of Reserve Bank of India, annuals
reports of MSMEs, census survey, newspapers, journals, and books etc.
5. Women MSMEs in India:
First of all we have to understand the definition of MSMEs which was given by MSMED act 2006 is
given below:
Classification Manufacturing Enterprises Service Enterprises