AN EMPIRICAL STUDY ABOUT THE CHALLENGES FACED

BY WOMEN ENTREPRENEURS IN RURAL AREAS OF

TRICHY DISTRICT , TAMILNADU , SOUTHINDIA
1. INTRODUCTION
Women have been successful in breaking their confinement within the
limits of their homes by entering into varied kinds of professionals and services
women entrepreneurs have proved to be on par with their men counterparts in
business acumen and are emerging as smart and dynamic entrepreneurs. There
are many reasons for women to enter into entrepreneurial ventures in a
predominantly society. Entrepreneurship among women is an important avenue
through which women can overcome their subordination within the family and
the family and the society as a whole. Therefore, development of
entrepreneurship among women has received special attention of the policy
makers. In this direction, a special character in the seventh plan has converted
into the integration of women in economic development. The new industrial
policy has stressed the need for conducting special Entrepreneurial
Development Programme (EDPs) for women. Besides this, today, a network of
institutions exists in the country to promote women entrepreneurship. The
commercial banks and the financial institution are an integral part of this
network. Many organizations / institutions and association promote and develop
women entrepreneurship by providing financial assistance at concessional rates
of interest and also organize industrial fairs and exhibitions. Entrepreneurship
Development Programme (EDPs) for women creates entrepreneurial awareness
among them.

Nowadays women empowerment has been increasing so rapidly all over

the world and women are starting their own business to seek greater control
over their personal and professional lives. In India, women dont enjoy the same
opportunities as men. The secretion of gender starts early and becomes a way of
life. However, economic necessity is forcing more women to engage in
economic activities-employment or entrepreneurship.
In most countries, regions and sectors, the majority of business owner /
managers are male (from 65% to 75%) However, there is increasing evidence
that more women are becoming interested in small business ownership and /or
actually starting up in business. In addition, rates of self employment among
women are increasing in several Asian countries. Although there are no official
statistics relating businesses to the gender of their owner/Manager, there is a
good deal of evidence to suggest a significant increase in female
entrepreneurship. One consequence of this is that women are a relatively new
group of entrepreneurs compared with men, which means that they are more
likely to run younger businesses. This in turn has implications for the problems
they face and their ability to deal with them.
The women in Trichy District are engaged in activities such as tailoring
and preparation of readymade garments, embroidery, food products like masala
powder, papad making, candles & agarbathy, brick making, coir products etc.
The research would cover the rural areas of Trichy District, Tamilnadu and this
study will identify the problems or barriers and their relevant impact on women
entrepreneurial activities. This research identify to what extent the variables i.e.,
finance, access to technology, information, managerial skills, mobility,

networking and trust building, education, experience etc are affecting the
women entrepreneurial activities in rural areas.
2. SCOPE OF THE RESEARCH

The study focuses on the women entrepreneurs in selected in Trichy

district, Tamil Nadu selected depends on entrepreneurial activities done by in
rural areas. The selected districts with its good infrastructural facility, offers
sound prospects for agriculture and industrial developments. The scope of the
study encompasses women entrepreneurs in Trichy District and the problems
faced by women entrepreneurs who are engaged in stating enterprise. The study
is limited only to the women entrepreneurs of selected groups in Trichy District.

3. RESEARCH QUESTIONS

1. What are the various problems faced by women entrepreneurs in rural areas?

2. What is the part played by finance in affecting women entrepreneurial

activities in rural areas?
3. What is the part played by access to technology in affecting women
entrepreneurial activities in rural areas?
4. What is the part played by information in affecting women entrepreneurial
activities in rural areas?
5. What is the part played by managerial skills in affecting women
entrepreneurial activities in rural areas.

6. What is the part played by mobility in affecting women entrepreneurial

activities in rural areas?
7. What is the part played by networking and trust building in affecting women
entrepreneurial activities in rural areas?
8. What is the part played by education in affecting women entrepreneurial
activities in rural areas?
9. What is the part played by experience in affecting women entrepreneurial
activities in rural areas?
4. AIM & OBJECTIVES OF THE RESEARCH
AIM
The aim of our research is to find out the What are the problems along with
socio cultural constraints that are affecting women entrepreneurial activities in
rural areas.
OBJECTIVES
1. To identify the problems or barriers which are faced by women in conducting
entrepreneurial activities in rural areas with reference to Trichy district.
2. To measure the to what extent each variable like finance, access to
technology, information, managerial skills, mobility, networking and trust
building, education and experience has an impact on women entrepreneurial
activities in rural areas with reference to Trichy district.
3. To measure how women respond and cope to the barriers faced in
entrepreneurial activities in rural areas with reference to Trichy district.

4. To find which activities women entrepreneur in rural areas are mostly

engaged with reference to Trichy district
5. To suggest and intimate the proper solutions to the problems faced by women
entrepreneurs in rural areas with reference to Trichy district.
6. To create awareness in women about their efforts and role in the society.

5. RESEARCH HYPOTHESES
From the above objectives the following hypotheses are created and have to be
tested.
1. There is a significant relationship between finance and its affecting the
women entrepreneurial activities in rural areas.
2. There is a significant relationship between access to technology and its
affecting the women entrepreneurial activities in rural areas.
3. There is a significant relationship between information and its affecting the
women entrepreneurial activities in rural areas.
4. There is a significant relationship between managerial skills and its affecting
the women entrepreneurial activities in rural areas.
5. There is a significant relationship between mobility and its affecting the
women entrepreneurial activities in rural areas.
6. There is a significant relationship between networking and trust building and
its affecting the women entrepreneurial activities in rural areas.
7. There is a significant relationship between education and its affecting the
women entrepreneurial activities in rural areas.
8. There is a significant relationship between experience and its affecting the
women entrepreneurial activities in rural areas.

6. DEFINITION OF CONCEPTS
ENTREPRENEUR
An entrepreneur is a person who has possession over a new enterprise or
venture and assumes full accountability for the inherent risks and the outcome.
The term is from French and was first defined by Irsish economist Richard
Cantillon.
WOMEN ENTREPRENEUR
The term women entrepreneur refers to a women who is running her own or
family own business. A female entrepreneur is sometimes known as
entrepreneurs.
WOMEN
Women are either single or married, Single or unmarried women have all the
civil rights of men; they may therefore enter into contracts or engagements; sue
and be sued; be trustees or guardians, they may be witnesses, and may for that
purpose attest all papers.
RURAL AREA
Rural areas are also known as 'countryside' or a 'village' in India. It has a very
low density of population. In rural areas, agriculture is the chief source of
livelihood along with fishing, cottage industries, pottery etc. The quest to
discover the real rural India still continues in great earnest. Almost every
economic agency today has a definition of rural India. Here are a few
definitions: According to the Planning Commission, a town with a maximum
population of 15,000 is considered rural in nature. In these areas the panchayat

takes all the decisions. There are five people in the panchayat. The National
Sample Survey Organisation (NSSO) defines rural as follows:

An area with a population density of up to 400 per square kilometer,

Villages with clear surveyed boundaries but no municipal board,

A minimum of 75% of male working population involved in agriculture

and allied activities.[16]

CHALLENGES FACED BY WOMEN ENTREPRENEUR

Women not only face problems as entrepreneurs but as women themselves and
therefore compared to men the problems of women entrepreneurs are numerous.
The problems range from mobilizing various resources including problem of
capital, marketing, raw material, sales, labour, technical, competition, new
technology, problem of land/ Shed/ water/ power/ taxes, lack of family support
as well as lack of government support and the like. Hence their problems arise
both from within and outside and also differ from enterprise to enterprise. Some
of these problems are many and similar to all, where as for some others it is
more specific and related to the line of activity of the enterprise. Some have the
problem of the external environment; what ever be the problem there is no
prescribed formula to deal with them. The problems have to be dealt with them
by the entrepreneurs themselves otherwise it would affect the working of the
enterprise itself. Efficient and timely handling of the problems leads to their
success.

7. LITERATURE REVIEW
The literature review explains about the various problems and challenges
faced by women entrepreneurs in rural areas
FAMILY TIES
Women in India are very emotionally attached to their families. They are
supposed to attend to all the domestic work, to look after the children and other
members of the family. They are over burden with family responsibilities like
extra attention to husband, children and in laws which take away a lots of their
time and energy. In such situation, it will be very difficult to concentrate and run
the enterprise successfully.
MALE DOMINATED SOCIETY
Even though our constitution speaks of equality between sexes, male
chauvinism is still the order of the day. Women are not treated equal to men.
Their entry to business requires the approval of the head of the family.
Entrepreneurship has traditionally been seen as a male preserve. All these put a
break in the growth of women entrepreneurs.
LACK OF EDUCATION
Women in India are lagging far behind in the field of education. Most of
the women (around sixty per cent of total women) are illiterate. Those who are
educated are provided either less or inadequate education than their male
counterpart partly due to early marriage, partly due to son's higher education
and partly due to poverty. Due to lack of proper education, women
entrepreneurs remain in dark about the development of new technology, new

methods of production, marketing and other governmental support which will

encourage them to flourish.

SOCIAL BARRIERS
The traditions and customs prevailed in Indian societies towards women
sometimes stand as an obstacle before them to grow and prosper. Castes and
religions dominate with one another and hinder women entrepreneurs too. In
rural areas, they face more social barriers. They are always seen with suspicious
eyes.
SHORTAGE OF RAW MATERIALS
The scarcity of raw materials, sometimes nor, availability of proper and
adequate raw materials sounds the death-knell of the enterprises run by women
entrepreneurs. Women entrepreneurs really face a tough task in getting the
required raw material and other necessary inputs for the enterprises when the
prices are very high.
PROBLEM OF FINANCE
Women entrepreneurs stiffer a lot in raising and meeting the financial
needs of the business. Bankers, creditors and financial institutes are not coming
forward to provide financial assistance to women borrowers on the ground of
their less credit worthiness and more chances of business failure. They also face
financial problem due to blockage of funds in raw materials, work-in-progress
finished goods and non-receipt of payment from customers in time.
TOUGH COMPETITION

Usually women entrepreneurs employ low technology in the process of

production. In a market where the competition is too high, they have to fight
hard to survive in the market against the organised sector and their male
counterpart who have vast experience and capacity to adopt advanced
technology in managing enterprises

HIGH COST OF PRODUCTION

Several factors including inefficient management contribute to the high
cost of production which stands as a stumbling block before women
entrepreneurs. Women entrepreneurs face technology obsolescence due to nonadoption or slow adoption to changing technology which is a major factor of
high cost of production.
LOW RISK-BEARING CAPACITY
Women in India are by nature weak, shy and mild. They cannot bear the
amount risk which is essential for running an enterprise. Lack of education,
training and financial support from outsides also reduce their ability to bear the
risk involved in an enterprises.
LIMITED MOBILITY
Women mobility in India is highly limited and has become a problem due
to traditional values and inability to drive vehicles. Moving alone and asking for
a room to stay out in the night for business purposes are still looked upon with
suspicious eyes. Sometimes, younger women feel uncomfortable in dealing with
men who show extra interest in them than work related aspects.

LACK OF ENTREPRENEURIAL APTITUDE

Lack of entrepreneurial aptitude is a matter of concern for women
entrepreneurs. They have no entrepreneurial bent of mind. Even after attending
various training programmes on entrepreneur ship women entrepreneurs fail to
tide over the risks and troubles that may come up in an organizational working.
LIMITED MANAGERIAL ABILITY
Management has become a specialized job which only efficient managers
perform. Women entrepreneurs are not efficient in managerial functions like
planning, organizing, controlling, coordinating, staffing, directing, motivating
etc. of an enterprise. Therefore, less and limited managerial ability of women
has become a problem for them to run the enterprise successfully.
LEGAL FORMALITIES
Fulfilling the legal formalities required for running an enterprise becomes
an upheaval task on the part of an women entrepreneur because of the
prevalence of corrupt practices in government offices and procedural delays for
various licenses, electricity, water and shed allotments. In such situations
women entrepreneurs find it hard to concentrate on the smooth working of the
enterprise.

EXPLOITATION BY MIDDLE MEN

Since women cannot run around for marketing, distribution and money
collection, they have to depend on middle men for the above activities. Middle

men tend to exploit them in the guise of helping. They add their own profit
margin which result in less sales and lesser profit.
LACK OF SELF CONFIDENCE
Women entrepreneurs because of their inherent nature, lack of selfconfidence which is essentially a motivating factor in running an enterprise
successfully. They have to strive hard to strike a balance between managing a
family and managing an enterprise. Sometimes she has to sacrifice her
entrepreneurial urge in order to strike a balance between the two.
Some of the basic problems a highlighted by various research studies
undertaken by women entrepreneurs are:
Lack of information
Lack of Micro Financing Schemes
Lack of Skill Development
Lack of Entrepreneurship / Business Skills
Lack of Marketing Facilities
Lack of Product Designs
Lack of Networking and building
Expensive Raw Materials
Low Quality Control
Non-Conducive Working Environment
Women may have particular problems with raising finance and may have had
less chance than most men to accumulate the confidence, skills and contacts
necessary to start and run a successful business.
In addition, gender discrimination by finance and support providers, customers
or employees may be an issue. Some previous research has suggested that it is
more difficult for women to raise start up and recurrent business finance than
men and those women are likely to encounter Credibility Problems when
dealing with bankers.

There are four areas of financing that can pose particular problems for
women. Firstly, women may be disadvantaged in their ability to raise start-up
finance. Second, guarantees required for external finance may be beyond the
scope of most womens personal assets and credit track record. Third, once a
business is established, finance may be more difficult for female entrepreneurs
to raise than for their male counterparts, because of the greater difficulties that
women face in penetrating informal financial networks. Finally the relationship
between female entrepreneurs and bankers may suffer from discrimination.
Certainly, recent evidence suggests that female entrepreneurs use substantially
less capital at start-up than male owners, although intra-sectoral similarities
demonstrate that gender was only one of a number of variables affecting the
business financing process.
The lack of Access to information especial information relating to
Business and Technology poses a major hindrance in the progress of women
owned enterprises in Tamilnadu. Women, in Tamilnadu, have limited access to
technology and information, which leads to many problems. Their access to
information is mainly limited because of the restraint on their mobility and
communication due to socio-cultural factors. Lack of Access to information
hinders women entrepreneurs in many ways. A new start-up is never an easy job
and it is made more difficult when access to information regarding laws and
regulations is limited. Also women entrepreneurs, due to their limited resources
and limited accessibility usually do not have information about supplies;
middles men and lack know how about working out the feasibility of their startups. The lack of access to information and technology also leads to certain
marketing problems, such as packing and designing. With better access to

business and technical information women entrepreneurs could also avail the
opportunity of marketing and selling through the World Wide Web.
Lack of management skills or training was felt to be a problem for
women entrepreneurs because of their lower propensity to have had previous
business experience. Although difficulties in accessing business advice or
support appears to be a minor rather than major problem for women
entrepreneurs, while difficulties with language caused problems for their clients
or members.
Difficulties with access to markets and/or lack of marketing skills are
rated highly as problems. So lack of sales and marketing skills was the most
commonly reported problem faced by female entrepreneurs, after finance.
Other issues include:
Lack of availability of child care;
Societys attitude towards women entrepreneurs;
Unequal opportunities between men and women;
Lack of confidence on the part of women;
This literature review section gives an overview of different researches
conducted by different authors on the problems faced by the women
entrepreneur in rural areas. The previous researches and literatures are very
useful to understand about the research topic and it is useful to frame the
questionnaire. The research would cover the rural areas of Trichy District,
Tamilnadu and this study identifies the problems or barriers and their relevant
impact on women entrepreneurial activities.
8. RESEARCH METHODOLOGY
SAMPLING PLAN
The rural Women entrepreneurs are the main source for collecting the

primary data using a well structured questionnaire. As the area of study is

limited in Trichy district of Tamil Nadu and as the total population of women
population is numerable, the researcher has proposed the sampling techniques
for the selection of respondents. To identify the right respondents which are also
very essential for the collection of primary data the following process has been
adopted scientifically. Finally 90 respondents were selected and included the
study from various Taluks of Trichy districts who have engaged to start an
enterprises and running successfully.
DEPENDENT AND INDEPENDENT VARIABLE
Dependent variables
Women entrepreneurial activities in rural areas
Independent Variables
Finance
Access to Technology
Skill Development
Networking and Trust Building
Expensive raw materials
Quality control
Working environment
Mobility
Communication Skills
Training
Mentoring
Socio cultural constraints
Moderating Variables
Education
Experience
Intervening variables
Socio cultural constraints

TOOLS
Personal interview is the major tool of data collection. Interview
technique is to be made at women entrepreneurs. The secondary data are also
proposed to collect from various departments. All these data are to be arranged
in various form of tables and proposed to critically analyse with the help of a
number of statistical tools. The statistical tools like Percentage Analysis and
Chi-Square will be applied to analyse and interpret the primary data.

9. LIMITATIONS
To purpose of this part is just to find out the specific weakness that may affect
the findings of the study. During this research we face a no of problems due to
which the internal as well as external validity of our research findings are
affected.
These are as follows
1. Most of the women are not educated so they are not able to understand
some questions.
2. Some of the women tailoring units were not cooperative
3. The target market we are focusing is from rural areas so we have to face
some difficulties in tracing their homes.
4. Some family members of illiterate women dont allow them to meet with
us.
5. Due to lack of education of these women we are also facing
communication problem.
6. Due to social pressure many women know what problems they are facing
but they are not allowed to tell that.

7. Lab was not frequently available which a main problem for us.

10. PLAN OF STUDY

The research study explains about the concept of Entrepreneur, Women
Entrepreneur, Challenges faced by the Women Entrepreneur.
Major problems faced by the women in rural areas are expalained.
REFERENCES
1. Greene, P.G.; Hart, M.M.; Gatewood, E.J; Brush, C.G; Carter, N.M.
(2003).Women Entrepreneurs: Moving Front and Center: An Overview of
Research and Theory. United

States Association for Small Business and

Entrepreneurship (USASBE). White Papers: p.1-47

2. Lerner, M; Almor, T (2002). Relationships among Strategic Capabilities and
the Performance of Women-Owned Small Ventures. Journal of Small Business
Management, 40 (2): p.109- 125.
3. Soundarapandian, M. (1999), Women entrepreneurship, Kanishka Publishers,
New Delhi
4. Yadav, J., (1999), Profile of Women Entrepreneurs in Saurashtra Region,
Ph.D. Thesis Department of Commerce, Saurashtra University, Rajkot.
5. Rao, P., (2002), Entrepreneurship and Economics Development, Kaniska
Publishers, New Delhi.
6. Mehrotra, N. (2003), Managerial Problems among Working Family Headed
Households,

Research Paper Presented at XXV BiennialConference of Home Science

Association of India on Enhancing the Qualityof Life Through Family and
Community Science Hosted by Home ScienceAssociation of India, Nagpur
Chapter.
7. Chhichhia, V., (2004), Problems faced by Women Entrepreneurs and
Importance of Training in their Entrepreneurs, Research Paper Presentedat
National seminar on Women Entrepreneurship A Need for Training
andCurriculum Development held by Development of Home Science
Extensionand Communication, Faculty of Home Science, M. S. University,
Vadodara.
8. Kapadia, S. Barodia, S.. (2004), Women Entrepreneurs : Problems and
Difficulties , Research Paper Presented at National seminar on Women
Entrepreneurship A Need for Training and Curriculum Development held by
Development of Home Science Extension and Communication, Faculty of
Home Science , M. S. University, Vadodara.
9. Rao, K., (2004), Women Entrepreneur in Lower Middle Class Families and
their Problems, Research Paper Presented at National seminar on Women
Entrepreneurship A Need for Training and Curriculum Development held by
Development of Home Science Extension and Communication, Faculty of
Home Science , M. S. University, Vadodara.
10. Jobanputra V., (2004), Women Entrepreneurs A New Face of Professional
Women, Research Paper Presented at National Seminar on Current Trendsand
Issues in Home Science, Saurashtra University, Rajkot.

11. Nayyar P., Sharma A., Kishtwaria J., Rana A., Vyas N. (2007), Causes and
Constraints Faced by Women entrepreneurs in Entrepreneurial Process, Journal
of Social Sciences, Vol.14, No.2, pp. 99-102.
12. Vatharkar (2012), A Study of Constraints and Motivating Factors for Indian
Women Entrepreneurs in Small Scale Industries, The 2012 International
Conference on Business and Management, 6 7 September 2012, Phuket Thailand
13.

United

Nations

Industrial

Development

Organization

(UNIDO).

(1995).Women, industry and entrepreneurship. Women in Industry Series.

Vienna, Austria.
14. Loscocco, K.A.; Leicht, K.T. (November, 1993) Gender, Work-Family
Linkages, and Economic Success among Small Business Owners. Journal of
Marriage and the Family. Vol. 55: p.875-887.

AN EMPIRICAL STUDY ABOUT THE CHALLENGES FACED

BY WOMEN ENTREPRENEURS IN RURAL AREAS OF
TRICHY DISTRICT , TAMILNADU , SOUTHINDIA
QUESTIONNAIRE
1. a) Age Category :
Below 18

18-25

26-35

36-45

46-55

55 and above

b) Your age when you start this business :

Below 18
18-25
26-35
36-45

46-55

55 and above

2. Marital Status?
Single
Married

Separated Divorced

3. What Educational background do you have?

Primary school
Secondary
Diploma

Widowed

U.G.

P.G.

4. Do you have any experience of working before anywhere?

Not at all
somewhat
moderate

PhD

very much

5. How you can well define the purpose of your job?

To satisfy your financial needs
Desire to enjoy the job for its own rewards
To prove yourself
To become independent
6. Do the people in the society criticize upon you for doing this work?
Not at all
Some-what
moderately
very much
7. Are you taking any of the following steps to enhance your skills?
Getting education
Getting computer training
Getting training to required field
Seeking advice from some experienced person
8. Is your family supporting you in your activities?
Not at all
somewhat
moderately

very much

9. Do you face any problem in managing your work and the personal life?
Not at all
A little bit
moderate
yes a lot
10.You compromise on the quality of raw material in case you lack finance?
strongly disagree

disagree
neither agree nor disagree
agree
strongly agree
11.What was the very first problem that you face while starting your
business?
Finance

Social support Experience

Mentor

Any other---------

12.How do you rank following in the order of importance for entrepreneurial

activities?
Finance Communication Training
Mobility
Socialsupport

13.What do you think govt should promote women entrepreneurial

activities?
Open vocational training institutes in rural areas
Relaxation in the terms of MicroFinance
Others -------------14.What does your modes of transportation?
public
private
15.What type of enterprise are you engaged in?
Trading
service
manufacturing

other

16.What are the major source of money you started this enterprise with?
Borrowed / got loan from Financial Institution
Savings over a period of time
Savings from other enterprise / business

Borrowed from a friend / relative

Help from friends/ relation /Others.

17.Is your enterprise registered?

Yes

No

18.Does your business have a bank account?

Yes
No
19.Do you contribute money from your business towards household
expenditure ?
Not at all
Some what
Moderately
Very much
20.Give most prominent problems faced by women entrepreneurs in Trichy.
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