International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November December 2012 ISSN 2278-6856

The Women Adoption in Owned Businesses and Entrepreneurship in India

Asif Perwej
Research Scholar Ph. D (Management Studies) Department of Management & Commerce, CMJ University, Shilong, Meghalaya, India

Abstract: The Entrepreneurship is very important criteria

for economic development. The role of women entrepreneurs cannot be ignored in this process. There is a significant contribution of women entrepreneurs in the growth of developing nations in the real world. Even though women's contributions to the business are one of the major engines of global economic growth, too often women do not have access to basic business education, commercial credit, and marketing opportunities .It is in everyone's interest to improve the status of women. Studies show that societies that promote women's rights are healthier and more prosperous. Societies that restrict women's rights are just the opposite.

Keywords: Women, Socio-Economic Constraints, Entrepreneurship, Motivational Factors, Business, Economy.

Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and 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 at least 51% of employment generated in the enterprise to women. Like a male entrepreneur a women entrepreneur has many functions [4]. They should explore the prospects of starting a new enterprise; undertake risks, introduction of new innovations, coordination administration and control of business and providing effective leadership in all aspects of business.

2. THE CONCEPT OF WOMEN ENTREPREENEURSHIP IN INDIA 1. INTRODUCTION

The women owned businesses are highly increasing in the economies of almost all countries. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in the society. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures [1]. Women Entrepreneur is a person who accepts challenging role to meet her personal needs and become economically independent. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing values in both family and social life. With the advent of media, women are aware of their own traits, rights and also the work situations [2]. The glass ceilings are shattered and women are found indulged in every line of business from puppet to power cables. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators [3]. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation . In India , although women constitute the majority of the total population, the entrepreneurial world is still a male dominated one. Volume 1, Issue 4 November - December 2012 Entrepreneurship has long been recognized as the key to economic growth. The role of entrepreneurs, especially the small scale entrepreneurs who successfully exploit the industrial and commercial opportunities on a small scale can not be underestimated. Small scale enterprises help in enhancing economic growth because they have a better chance to carry out innovations, new means of production, new markets, new materials, new forms of organizations that lead to increased productivity. In his studies relating to entrepreneurship Matlay (2006) [5] posited that conceptual and contextual convergence is of paramount importance to the ongoing debate of whether entrepreneurs are born or made and to issues surrounding entrepreneurship education and its impact on entrepreneurial activities. Schutte (1995) suggested that the male entrepreneurs have been extensively studied and the focus has now shifted to the study of female entrepreneurs. Hisrich and Brush (1984) [1] mentioned that most of what is known about entrepreneurs, their background, motivation for starting a business and business problems faced by them are based on studies of male entrepreneurs. It is important to differentiate entrepreneurs on the basis of gender if women entrepreneurship is to be promoted (John, 2004) [3]. The following flow chart shows the reasons for women becoming entrepreneurs below figure 1. Page 56

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November December 2012 ISSN 2278-6856
owners that might explain why female-owned businesses appear to under perform than male-owned businesses. The prominent factors are age of female owned business, family commitments, lesser access to capital, different education levels, prior experience of business and attitude towards risk. According to Jesselyn (2004) [9] developing countries should also tap the potential of women entrepreneurs. Women are generally more serious entrepreneurs in developing countries, even though their businesses are small. They repay loans more reliably than men, and use their earnings for the benefit of families and for reinvestment. Barshefsky, the U.S. Government's chief trade negotiator, noted that the U.S. Trade Representative's work "rests on a simple foundation: the commitment to open markets, freer trade, and the rule of law in world commerce." She pointed out that the day of her speech, June 16, commemorated the 70th anniversary of the SmootHawley Act, which she described as the "largest single restriction on trade in American history" and a major contributor to the Great Depression of the 1930s. She went on to say that the free trade policies of President Franklin D. Roosevelt and successive administrations have led to: Growth and Rising Living Standards - Since the 1950s, trade has expanded fifteen-fold, world economic production has grown six-fold, and per capita income has nearly tripled. The result, Barshefsky said, has been "historically unprecedented social progress: since the 1950s, world life expectancy has grown by 20 years, infant mortality dropped by two-thirds, and famine receded from all but the most remote or misgoverned corners of the world." Economic Security - In 1997-99, with 40 percent of the world in an economic recession, the "system of mutual benefit and the rule of law represented by the WTO helped prevent a cycle of protection and retaliation like that of the 1930s and ultimately averted the political strife that can erupt in economic crisis." Peace and Stability - Barshefsky praised the international economic system for its role in reintegrating Germany and Japan in the 1950s, nations emerging from colonial rule in the 1960s and 1970s, and the nearly 30 nations that have broken with communist planning systems and sought economic integration since the end of the Cold War.

Figure 1: The Reason of women becoming entrepreneurs Women entrepreneurship has come a long way in India. In urban areas, more and more women are successfully running day care centers, placement services, floriculture, beauty parlors and fashion boutiques. Even in rural areas, self-help groups are empowering women to start their own micro business. In her study Anju (1994) emphasized on value orientation among women entrepreneurs [6]. She argued that women entrepreneurs had a preference for values like achievement, independence, leadership effectiveness and conformity to social obligations, which change the scale of success in favor of entrepreneurs. Problems, however, are plenty for a female business enthusiast who wishes to start her own unit. In general, whatever problems men might face in setting up a small-scale unit are accentuated in the case of women. In certain businesses that are traditionally male dominated, women are looked at with suspicion on their seriousness of managing the business with a long-term perspective. Rinkal (2004) [7] suggested that women of today are in several ways different from the women of past years. During the present times, they seek social and economic independence and are prepared to take risks for the same. Mitchell (2004) [8] found that women entrepreneurs tend to be motivated by the need to provide security for their families and by their family circumstances. Women entrepreneurs are motivated by the need to be independent, economically and otherwise. Entrepreneurship allows women to combine caring for their family with bringing in the money needed for dayto-day survival. This trend has also been visible in several Asian countries including Indonesia and Singapore. In the opinion of Watson (2003) there are quite a number of potential systematic differences between male and female Volume 1, Issue 4 November - December 2012

According to the United Nations, nearly half of the world's business owners are women, and they are responsible for more than half of the economic activity in developing nations. Despite this, according to the U.N., only one-third of the work that women do in the Page 57

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November December 2012 ISSN 2278-6856
developing world is measured and counted in national economic reports. Mr. Heinrich Kolb, Secretary of State, Ministry of Economy, Germany "We need to improve the environment for SMEs, because they are creating scope for more growth employment, broad space innovation, better skills in the local and global markets. SMEs have to be more forward-looking. In Germany, those women who use government incentives are doing as well as men in creating enterprises. Women bring fresh motivation. Women will fit better into the new service society than in the old industrial society. Our countries can no longer do without the expertise, skills and experience of women entrepreneurs." Ms. Ann Diamantopoulou, Secretary of State, Ministry of Development, Greece "Women and SMEs constitute the main weapons for helping us to build a future without discrimination. We fight for our rights, and not for privileges, because the business has no gender. What is a natural success for men is a conquest of women. Womens participation in any kind of economic activity is of a complementary nature to their family incomes; their participation in no ways reduces their family duties." Ms. Barbara Prammer, Federal Minister for the Condition of Women, Austria "Women provide an essential opportunity for economic and social development and progress. They have a different vision thanks to the delays they are currently remediation, a vision which is new and different, realistic, modern, and enthusiastic. When social structures leave them no possibility of evolving in their careers, and when civil society closes its doors to them, women take their own initiatives. They are quite naturally drawn to initiative, to creation and to the management of businesses. enough time to perform all their responsibilities in priority. c) Market-oriented risks Stiff competition in the market and lack of mobility of women make the dependence of women entrepreneurs on middleman indispensable. Many business women find it difficult to capture the market and make their products popular. They are not fully aware of the changing market conditions and hence can effectively utilize the services of media and internet. d) Motivational factors Self motivation can be realized through a mind set for a successful business, attitude to take up the risk and behavior towards the business society by shouldering the social responsibilities. Other factors are family support, Government policies, financial assistance from public and private institutions and also the environment suitable for women to establish business units. e) Knowledge in Business Administration Women must be educated and trained constantly to acquire the skills and knowledge in all the functional areas of business management. This can facilitate women to excel in the decision making process and develop a good business network. f) Awareness about the financial assistance Various institutions in the financial sector extend their maximum support in the form of incentives, loans, schemes etc. Even then every woman entrepreneur may not be aware of all the assistance provided by the institutions. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas. g) Exposed to the training programs Trainingprograms and workshops for every type of entrepreneur is available through the social and welfare associations, based on duration, skill and the purpose of the training program. Such programs are really useful to new, rural and young entrepreneurs who want to set up a small and medium scale unit on their own. h) Identifying the available resources Women are hesitant to find out the access to cater their needs in the financial and marketing areas. In spite of the mushrooming growth of associations, institutions, and the schemes from the government side, women are not enterprising and dynamic to optimize the resources in the form of reserves, assets mankind or business volunteers. Highly educated, technically sound and professionally qualified women should be encouraged for managing their own business, rather than dependent on wage employment outlets. The unexplored talents of young women can be identified, trained and used for various types of industries to increase the productivity in the industrial sector [12]. A desirable environment is Page 58

3. THE WOMEN CONSTRAINTS

ENTREPRENEURS

The women in advanced nations are recognized and are more prominent in the business world. But the Indian women entrepreneurs [10] are facing some major constraints likea) Lack of confidence In general, women lack confidence in their strength and competence. The family members and the society are reluctant to stand beside their entrepreneurial growth. To a certain extent, this situation is changing among Indian women and yet to face a tremendous change to increase the rate [11] of growth in entrepreneurship. b) Socio-cultural barriers Womens family and personal obligations are sometimes a great barrier for succeeding in business careers. Only few women are able to manage both home and business efficiently, devoting

Volume 1, Issue 4 November - December 2012

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November December 2012 ISSN 2278-6856
necessary for every woman to inculcate entrepreneurial values and involve greatly in business dealings [13]. The additional business opportunities that have recently been approaching for women entrepreneurs are empowering women entrepreneurs is essential for achieving the goals of sustainable development and the bottlenecks hindering their growth must be eradicated to entitle full participation in the business [14]. Apart from training programs, Newsletters, mentoring, trade fairs and exhibitions also can be a source for entrepreneurial development. As a result, the desired outcomes of the business are quickly achieved and more of remunerative business opportunities are found. Henceforth, promoting entrepreneurship among women is certainly a shortcut to rapid economic growth and development. Let us try to eliminate all forms of gender discrimination and thus allow [15] women to be an entrepreneur at par with men. century Women are an emerging economic force that policymakers cannot afford to ignore However governments and institutions promoting democratic values make a real difference in women s business organizations in newly emerging market democracies [20] In the global economy of the 21st century international trade will be a key source of economic growth and development. A recent survey conducted in several countries by the National Foundation of Women Business Owners NFWBO indicates that women owned firms involved in the global marketplace. Women Entrepreneurs in the Global Economy have greater revenues are more optimistic about their business prospects and are more focused on business expansion obviously expanding into international trade can pay off for women owned firms. However it is not clear that smaller enterprises are benefiting from these potential as much as larger firms [21] Women s business associations can and should ensure that their members are equipped to reap the rewards of expanding into the international arena. Women must learn how to play the international trade game and a global network of women s business associations can help them do that Information technology can help identify markets provide industry [22] information and spotlight trends about. What's the role of women in national economies can be Today women in advanced market economies own more than 25 of all businesses and women owned businesses in Africa Asia [23] Eastern Europe and Latin America are growing rapidly. In some regions of the world transformation to a market economy threatens to sharpen gender inequality Some of these changes are simply the legacy of a gender imbalance that existed prior [24]. An economist once said that the country's total gross domestic product would go down if he married his housekeeper, Rachel Kurian, the course convener, said. She cited a 1995 Human Development Report by the United Nations Development Program, that work outside of that valued by the market mostly women's work in the home reached a value of US$9 trillion, or three [25] fourths of the world's gross domestic product. Such estimates are based, for instance, on the cost of paying for your laundry or meals.

4. PUSH-PULL FACTORS AND WOMEN IN BUSINESS

The women in business are a recent phenomenon in India. By and large they had confided themselves to petty business and tiny cottage industries [16]. Women entrepreneurs engaged in business due to push and pull factors. Which encourage women to have an independent occupation and stands on their own legs. A sense towards independent decision-making on their life and career is the motivational factor behind this urge. Saddled with household chores and domestic responsibilities women want [17] to get independence under the influence of these factors the women entrepreneurs choose a profession as a challenge and as an urge to do something new. Such situation is described as pull factors. While in push factors women engaged in business activities due to family compulsion and the responsibility is thrust upon them [18].

5. GROWING ROLE OF ENTREPRENEURS IN INDIA

WOMEN

In the context of Indian economy, Women owned businesses are highly increasing in the economies of almost all countries The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role economic status in the society Skill Knowledge adaptability in [19] business are the main reason for women to take up entrepreneurship They span generations and are there in every field From Tractors to television from biscuits to banking from HR to hospitals Denied entry into a male bastion they create another industry like Kiran Mazumdar Shaw of Biocon According to her hard work commitment and caring in word and deed helps people overcome obstacles Women Entrepreneurs in the Global Economy As technology speeds up lives and the new millennium is now upon us it is useful to take time to reflect on what will surely be one of the driving forces of the global economy of the 21st Volume 1, Issue 4 November - December 2012

6. STRUCTURE OF THE AFTER GLOBALIZATION

ECONOMY

Due to globalization not only the GDP has increased but also the direction of growth in the sectors has also been changed. Earlier the maximum part of the GDP in the economy was generated from the primary sector but now the service industry is devoting the maximum part of the GDP. The services sector remains the growth driver of the economy with a contribution of more than 57 per cent of GDP.

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Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November December 2012 ISSN 2278-6856
India is ranked 18th among the worlds leading exporters of services with a share of 1.3 per cent in world exports [26]. The services sector is expected to benefit from the ongoing liberalization of the foreign investment regime into the sector. The software and the ITES-BPO sectors have recorded an exponential growth in recent years. [2] Jesselyn and Mary (2004), "The Formal Institutional Framework of Entrepreneurship In The Philippines: Lessons for Developing Countries", The Journal of Entrepreneurship, vol. 13 (2), pp. 185-203. [3] John J. , "Development of India: Gender Dimensions", Labour and Development, vol. 10 (1), pp. 113-125, 2004. [4] Rinkal, Divya and Sneha. , "Women Entrepreneurs-Critical Issues." , Proceedings of the 11th Summer Camp on Entrepreneurial Stimulation for Children from May 2-7, 2004. [5] Matlay, & Harry , "Researching Entrepreneurship and Education", Emerald Group Publishing Ltd., vol. 48 (8/ 9), pp. 704-718, 2006. [6] Chinonye Okafor and Roy Amalu, (2010), Entrepreneurial Motivations as Determinants of Women Entrepreneurship Challenges by, Economic science series, vol LXII, no. 2, pp. 67-77. [7] Rinkal, Divya and Sneha. , "Women Entrepreneurs-Critical Issues." Proceedings of the 11th Summer Camp on "Entrepreneurial Stimulation for Children from May 2-7, 2004. [8] Mitchell & B. C. (2004), "Motives Of Entrepreneurs: A Case Study Of South Africa", The Journal of Entrepreneurship, vol. 13 (2), pp. 167-183. [9] Jesselyn and Mary (2004), "The Formal Institutional Framework of Entrepreneurship In The Philippines: Lessons for Developing Countries", The Journal of Entrepreneurship, vol. 13 (2), pp. 185-203. [10] Vijay and B. (1997), Problems and Prospects of Women Entrepreneurs , The Indian Journal of Commerce, Golden Jubilee 193(IV), pp. 218-221. [11] Levent.T. ,Masurel. E & Nijkampo, P. (2003), Diversity in entrepreneurship: Ethnic and Female Roles in Urban Economic Life , International Journal of Social Economics 30(11), pp. 1131-1161. [12] Ahl and H. (2006), Why research on women entrepreneurs needs new directions, Entrepreneurship Theory & Practice, vol. 30 no. 5, pp. 595-621. [13] Jamali, D., Sidani, Y. and Safieddine, A. (2005), Constraints facing working women in Lebanon: an insider View, Women in Management Review, vol. 20 no. 8, pp. 581-94. [14] Winn and Joan , Women Entrepreneurs: Can we remove the Barriers? International Entrepreneurship and Management Journal, vol. 1(3), pp. 381-397, 2005. [15] Bruin, A., Brush, C. and Welter, F. (2007), Advancing a framework for coherent research on womens entrepreneurship, Entrepreneurship Theory & Practice, vol. 31 no. 3, pp. 323-39. [16] Das M, (2001), Women entrepreneurs form Indiaproblems motivators and success Factors, Journal of small business and entrepreneurship, vol. 15, no.4, pp.67-81.

7. A COMPRASION WITH DEVELOPING COUNTRIES

OTHER

The Consider global trade Indias share of world merchandise exports increased from .05% to .07% over the past 20 years. Over the same period Chinas share has tripled to almost 4%. Indias share of global trade is similar to that of the Philippines and economy 6 times smaller according to IMF estimates. Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for and 5.5% for Brazil. FDI inflows to China now exceed US $ 50 billion annually. It is only US $ 4billion in the case of India.

8. CONCLUSION
The all women are endowed with innate power that can make them successful entrepreneurs. Women empowerment becomes reality by nurturing their innate qualities of entrepreneurship. When women bring life into this world, it contributes to the society. When an entrepreneur creates an enterprise it generates employment, create wealth. Entrepreneurship is a prerequisite for the development of any nation. The independence brought the promise of equality of opportunity in all spheres to the Indian women and laws guaranteeing for their equal rights of participation in the political process and equal opportunities and rights in education and employment were enacted. But unfortunately, the government sponsored development activities have benefited only a small section of women. The large majority of them are still unaffected by the change and development activities have benefited only a small section of women i.e. The urban middle class women. The large majority of them are still unaffected by change and development. The reasons are well sited in the discussion part of this article. It is hoped that the suggestions forwarded in the article will help the entrepreneurs in particular and policy-planners in general to look into this problem and develop better schemes, developing programs and opportunities to the women folk to enter into more entrepreneurial ventures.

REFERENCES
[1] Hisrich, R. D., Brush, C., (1984), "The Women Entrepreneur: Management Skills and Business Problems", Journal of Small Business Management, vol. 22 (1), pp. 30-37. Volume 1, Issue 4 November - December 2012

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Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 1, Issue 4, November December 2012 ISSN 2278-6856
[17] Saikou S.E., (2008), Small and Medium Enterprise for Women Entrepreneurs in Taiwan , World Journal of Agricultural Sciences, vol.4, pp. 884-890. [18] S. Vargheese Antony Jesurajan & Dr. M. Edwin Gnanadhas (2011), Study on the factors motivating women to become entrepreneurs in tirunelveli district , Asian Journal of Business and Economics,vol.1, no.1, pp. 2231-3699. [19] Farr-Wharton, R. and Brunetto, Y. (2007), Women Entrepreneurs, Opportunity Recognition and Government-Sponsored Business Networks: A Social Capital Perspective, Women in Management Review, vol. 22, no. 3, pp. 187-207. [20] Government of India, Planning Commission (1992), Eighth Five Year Plan, 1992-97 New Delhi. And Tenth Five Year plan 2002-07. [21] Farr-Wharton, R. and Brunetto, Y. (2009), Female Entrepreneurs as Managers - The Role of Social Capital in Facilitating a Learning Culture, Gender in Management: An International Journal, vol. 24, no. 1, pp. 14-31. [22] Hampton, A., McGowan, P. and Cooper, S. (2011), Developing Quality in Female High Technology Entrepreneurs Networks, International Journal of Entrepreneurial Behaviour & Research, vol. 17, no. 6, pp. 588-606. [23] Jamali, D. (2009), Constraints and Opportunities Facing Women Entrepreneurs in Developing Countries: A Relational Perspective, Gender in Management: An International Journal, vol. 24, no. 4, pp. 232-251. [24] Tambunan, T. (2009), Women Entrepreneurship in Asian Developing Countries: Their Development and Main Constraints, Journal of Development and Agricultural Economics, vol. 1, no. 2, pp. 27-40. [25] Langowitz, N. and Minniti, M. , The entrepreneurial propensity of women, Entrepreneurship Theory & Practice, vol. 31 no. 3, pp. 341-64, 2007. [26] Jalan B. , (1996) Indias Economic Policy: Preparing for the Twenty-First Century, Penguin Books, New Delhi.

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