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Opinion Vol. 2, No. 1, June 2012

Problems and Challenges faced by Women Entrepreneur in India

Ashima Bhatnagar* Dr. Broto R. Bhardwaj** Shikha Gandhi***

Abstract
Till the turn of the century, man has enjoyed a dominant position. But change in position technological innovation and modern way of thinking can reduce the disparity between man and women, and bring about equality and equity between them, the need of the hour in women empowerment both through provision of employment and enterprise creation. Typologically, the former leader to endogenous empowerment and the latter give rise to exogenous empowerment. Women entreprenurers have been making a significant impact in all segments of the economy in Canada, Great Britain, Germany Australia, US and so in India. The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is defined 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 the employment generated in the enterprise to a woman. It is the group of women or single women running an enterprise or company in order to earn profit. Now days because of women empowerment women are stepping-stone into the industries and are taking the place of men. Now a days womens are running several business like beauty parlours, switching shops, boutiques, etc. Other areas choosen by women are retail trade, restaurants, hotels, education and cultural. The main aim of the research paper is to find out what problems hinder women - in these case women entrepreneurs in creation and maintenance of their own enterprise. In this paper, we did primary research through questionnaire where women entrepreneurs were questioned about the problems they faced when starting up an enterprise and problems they face in the day-to-day running of their businesses. More general questions about the size of
*Asst. Professor, Bharati Vidyapeeth University Institute of Management and Research, New Delhi. **Associate Professor, Bharati Vidyapeeth University Institute of Management and Research, New Delhi. ***Asst. Professor, Bharati Vidyapeeth University Institute of Management and Research, New Delhi.

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Opinion Vol. 2, No. 1, June 2012

their enterprises, their family background and their qualifications were raised in order to complete the picture. The managerial implications and policy making implications are discuused. Keywords: Women entrepreneur, Enterprise, Opportunities in the face of challenges

Introduction
Women entrepreneurship is both about women pose in society and the role of Women Entrepreneurship in the same society. Women are visage with specific obstacles (such as family responsibilities) that have to be overcome in order to give them access to the same opportunities as men. Also, in some countries, women might experience obstacles with respect to holding property and entering contracts. Increased participation of women in the have force is a prerequisite for improving the position of women in society and self-employed women. The role of Women entrepreneur needs to be considered in the economic development of the nation for various reasons (Nicholas and Victoria, 2010). The study investigated entrepreneurial activity and analyzed the incentives of female participation in the labor market and found that female entrepreneurial activity play an important role in social and economic issues. Women entrepreneur has been recognized during the last decade as an important untapped source of economic growth. Women Entrepreneurs create new jobs for themselves and others and by being different also wage society with different solutions to management, organization and business problems as well as to the exploitation of Women Entrepreneurial opportunities. However, they still represent a minority of all Women Entrepreneurs. Thus there exists a market unfortunate discriminating against Women possibility to become Women Entrepreneurs and their possibility to become successful Women Entrepreneurs. This market unfortunate needs to be addressed by policy makers so that the economic potential of this group can be fully utilized. While without a doubt the economic impact of women is substantial, we still demand a reliable picture describing in detail that specific impact. The study suggest that combination of pull and push motives and effective mentoring, personal characteristics such as risk of failure, educational level, creativity, innovativeness,
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ambitiousness and marital status are important for the encouragement of women entrepreneurship to start up a new business (Nicholas and Victoria, 2010; Nan and Maria, 2007). Women Entrepreneurship has been largely neglected both in society in general and in the social sciences. Not only have women lower participation rates in Women Entrepreneurship than men but they also generally select to begin and manage firms in different industries than men tend to do. The industries (primarily retail, education and other service industries) chosen by women are often perceived as being less important to economic development and growth than high-technology and manufacturing. Lee (1996) examines the motives that stimulate women into becoming business owners. The study finding concludes that women entrepreneurs are motivated by a high need for achievement, a slightly high need for dominance and moderate needs for affiliation and autonomy (Lee, 1996). Furthermore, conventional research, policies and Proposals tend to be men streamed and too often do not take into statement the specific needs of Women Entrepreneurs and would-be Women Entrepreneurs. As a consequence, equal opportunity between men and women from the appearance of Women Entrepreneurship is still not a reality. In order to realize the benefits of policy changes it is important to incorporate a Women Entrepreneurial dimension in considering all SMEs and growth policies (e.g. meeting Women financing needs at all stages of the business continuum; take-up of business development and support services; access to corporate, government and international markets; technology access and utilization; R&D and innovation; etc.). Better qualitative information and decimal data and statistics are required to profile women entrepreneurs (demographic information, barriers to start-up and growth). This would also assist in promoting awareness
Opinion: International Journal of Management

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Opinion Vol. 2, No. 1, June 2012

of the role of Women Entrepreneurs in the economy. Using a frame of reference such as that developed in the report could be valuable for the analysis of this information. Kumar (2008) found that various supporting agencies had not been percolated down to praxis level in the real sense. Need to intensify the efforts to increase the level of awareness of various sources of finance available to women entrepreneurs. It is observed that women entrepreneur networks are major sources of knowledge about women entrepreneur and they are increasingly recognized as a valuable tool for its development and promotion. Policy makers must foster the networking of associations and encourage co-operation and partnerships among national and international networks and assist Women Entrepreneurial endeavors by women in the economy. Peter and Alison (2006) emphasized on the challenged faced by women entrepreneurs related to conflict between work and home life and networks. The challenge of world class competition and the attempts at globalization and liberalization has tremendously modified the business environment of firms in India. In contributing to the working of any firm in India, be as a policy maker or as a mortal doing business with a firm in India or as a marketing practitioner or as an academician, it is important to comprehend how practically the firms have taken measures to combat the onslaught of these challenges. Nan and Maria (2007) found that women tend to perceive themselves and the entrepreneurial environment in a less favorable light than men across all countries in the sample and regardless of entrepreneurial motivation. What new turns have been prefabricated in the actual working system of Women Entrepreneur? In other words, an understanding of the exact nature of the paradigm shifts in small and medium enterprises. Meanwhile, the association of women entrepreneurs deficiencies in organizing nature, construction system and operating mechanism needs further perfection to realize its social service function. That is, from the point of view of an individual firm in India, how the challenge of the shifting economic environment been perceived and what new efforts have been adopted towards managing these challenges?
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From the above passages, it is worthwhile to mention the major suggestions contributed by the researchers from the wide-ranging study about Women Entrepreneur were summarized below: Increase the capability of women to participate in the have force by ensuring the availability of inexpensive child care and equal treatment in the work place. More generally, improving the position of women in society and promoting women entrepreneurship generally will have benefits in terms of women entrepreneur. Listen to the voice of women entrepreneurs. The creation of government offices of women business ownership is one way to assist this. Such offices could have programmed responsibilities such as providing women business centers, organizing information seminars and meetings and/or providing web-based information to those wanting to begin and grow a business. Incorporate a Women Entrepreneurial dimension in the formation of all SME-related policies. This can be done by ensuring that the impact on Women Entrepreneur is taken into statement at the design stage. Promote the development of women entrepreneur networks. These are major sources of knowledge about women entrepreneur and valuable tools for its development and promotion. Cooperation and partnerships between national and international networks can assist women entrepreneurial endeavors by women in a global economy. Periodically evaluate the impact of any SME-related policies on the success of women-owned businesses and the extent to which such businesses take advantage of them. The neutral should be to refer ways to improve the effectiveness of those that should be retained. Good practices that are identified in this way should be disseminated and shared internationally. Improve the existent and analytical underpinnings of our understanding of the role of Women Entrepreneurs in the economy. This requires strengthening the statistical basis for carrying out gender-related cross-country comparative analyses and longitudinal studies of the impact of important developments and policies, especially over time. Women Entrepreneur is dependent on both demand side (political and institutional framework, family policy and market sources) and supply side factors (the availability of suitable individuals
Opinion: International Journal of Management

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Opinion Vol. 2, No. 1, June 2012

to occupy Women Entrepreneurial roles). Women Entrepreneur depends on both the situation of women in society and the role of Women Entrepreneurship in that same society. Both the factors that affect the gender system and the factors that affect Women Entrepreneurship in society are involved. In addition, a statistically significant tendency for businesses owned by women to be characterized by lower rates of sales growth than those owned by men was also identified. These differences between patterns of small business ownership between men and women allow alternative explanations of what might at first seem to be an apparent gender bias (Riding, 1990).

To study the reasons for being in business i. e. motivational factors; To study the attitude of family and society towards women entrepreneurs; To study the problems faced by women entrepreneurs.

Research Methodology
The study was conducted in India. We adopted convenient sampling technique was adopted for the selection of study area. A sample of 60 women respondents (10 each from one zone and 20 from India) was taken on the basis of criterion that they should be running their enterprise independently or in Partnership Enterprises taken up for the study were boutiques, beauty parlours, coaching centre, P.C.Os, general stores. Random sampling technique was adopted for the selection of study area. A sample of 60 women respondents (10 each from one zone and 20 from NCR) was taken on the basis of criterion that they should be running their enterprise independently and not in partnership. Enterprises taken up for the study were boutiques, beauty parlours, handloom units, nursing homes, P.C.Os, general stores and carpet making units. Well structured and pretested interview schedule was used for collecting primary data by survey method. Tabular analysis techniques employed was chi-square test. Women entrepreneurship is a recent phenomenon and in the process have to face various problems. Therefore, this study was conducted on sixty women entrepreneurs selected through random technique from four zones in India (Ghaziabad, Noida as one zone in NCR & Gurgaon as another). Nursing homes, boutiques, handloom units, beauty parlours carpet making units and general stores were the enterprises selected for study. The objectives of the endeavor were to ascertain the financial, marketing and production constraints faced by women in their enterprises; assessment of their health status, work place facilities and to develop guidelines for becoming a successful entrepreneur. Poor location of unit, tough competition from larger and established units, lack of transport
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Unique Traits of Women to Become Entrepreneurs

Buttner and Moore (1997) found that loan account managers associated the traits usually identified with successful small business owners more closely with male business owners than with women owners. Subsequently, they attempted to discover whether or not sex stereotypes actually influence loan rejections. Their results indicated that neither gender of applicant, type of loan account manager, or presentation format of application played a role. Findings indicate that the womens most important entrepreneurial motivations were the desire for challenge and self- determination and the desire to balance family and work responsibilities. They are endured with intuition that helps them make right choices even in a situation where experience and logic fails. They are the natural net-workers and relationship builders, forging powerful bonds and nurturing relationship with clients and employees alike. In nutshell, they are as competent as their male counterparts if not better.

Objectives of the Study

The study has been conducted with the following objectives: To portray a profile of women entrepreneurs in Indian context;
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Opinion Vol. 2, No. 1, June 2012

facility, lack of rest and sleep and non-availability of raw material were the significant problems faced by entrepreneurs. The factors causable to these problems were; difficulty in affording own vehicle, not being popular, heavy schedule of work and long working hours. Common entrepreneurial problems can be dealt by formulating self help mutually aided groups. Support mechanism such as institutional credit need to be strengthened to keep entrepreneurs aware about loaning schemes/credit facilities for further expansion.

Data Analysis
This study was conducted using qualitative data (which was prioritized) using rating scales in accordance with the present context of women entrepreneur in India. According to the research we found that 55% of the women entrepreneur was in the age group of 26 years to 40 years. The women entrepreneurs are involved in Boutique, Beauty parlour, Interior decoration, Consultancy and so on. The major factors motivating women entrepreneurs to start up their own business include self achievement, profit and money making, confidence in the products and services offered. The major problems that come in the way of women entrepreneurs are: Financial problem, combining family and work life, and domestic competition and others. Also it was found that Women entrepreneurs are ready to spend around half of their personal savings and even ready to borrow money from family and friends.

governments and institutions promoting democratic values make a real difference in womens business organizations in newly emerging market democracies. In the global economy of the 21st century, international trade will be akey source of economic growth and development. Recent surveys conducted in several countries by the National Foundation of Women Business Owners (NFWBO) indicate that womenowned firms involved in the global marketplace have greater revenues, are more optimistic about their business prospects and are more focused on business expansion than women-owned firms that are domestically oriented. Obviously, expanding into international trade can pay off for women-owned firms. However, it is not clear that smaller enterprises are benefiting from this potential as much as larger firm. Womens business associations can and should ensure that their memberslarge and smallare 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 womens business associations can help them do that. Information technology can help identify markets, provide industry information and spotlight trends about what the role of women in national economies can be. More information about women-owned business enterprises is sorely needed to force policymakers to realize that women are an economic force to be reckoned with.

Women Entrepreneurs in 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 century. Women are an emerging economic force that policymakers cannot afford to ignore. The worlds modern economy, and in fact democracy, depends on the participation of both sexes. Wouldnt it be ideal to envision as normal a global international order based on democracy, free enterprise, and binternational law? Since no such system has ever existed, this system looks utopian, if not naive. However,
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Why Women Start Businesses

The present study suggests that women in India start their own businesses from a desire for self-determination and for career challenge and that they expect the corresponding respect, recognition, and self-esteem that both self-determination and challenge provide. Primarily, entrepreneurship is a survival instinct that motivates women to start a business. Around the world, dismal economic conditions, high unemployment rates, and divorce catapult women into entrepreneurial activities. Desperate to put food on the table for their children, women are defying societal norms in order to survive. Entrepreneurship is a highly personal, subjective process. Becoming an entrepreneur is an evolution of encountering, assessing, and reacting to a series of
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Opinion Vol. 2, No. 1, June 2012

experiences, situations, and events produced by political, economical, social, and cultural change. These diverse circumstances prompt individual entrepreneurs to modify their personal living conditions. Women who own and operate a business are not a homogeneous group. Cultural and social patterns prescribe whether a woman can become an entrepreneur within her society or not. Some constraints are obvious; others are disguised in patriarchal heritage within cultures that preclude female entrepreneurship. As Jehan Sadat said referring to business ownership, there are those who yet realize that they too can enter the race. But in spite of many obstacles, women somehow find a way to engage in entrepreneurial activities. When the issue of entrepreneurship is at stake, the question should not be a matter of can she or why does she but how she does and where can she go for help. For the woman entrepreneur, the process of starting and operating a new enterprise can be tremendously difficult in both the formal and informal sector because she often lacks the skills, education, and societal support system to facilitate her efforts.

to seek business guidance and education to compensate for perceived weaknesses.

Barriers Faced By Women Doing International Business

Obstacles that women face in international business include limited international business experience, inadequate business education, and lack of access to international networks. Challenges common to all enterprises include securing funding, developing marketing and management skills, and devising suitable business strategies to thrive in globalized social and economic environments. Other impediments for women are societal, cultural, and religious attitudes. In revitalizing economies they may also face intractable infrastructure problems. In reviewing the NFWBO 1998 surveys from Argentina, Mexico, Brazil, Ireland, Russia, and Latin-and Iber-American countries, the uppermost business concerns are making profits, hiring and keeping qualified employees, acquiring state-of-the art technology, complying with government laws and policies, obtaining business management training, securing adequate credit, and improving the overall state of the economy. These obstacles parallel concerns of women business owners in the US, Canada, and Britain. Other researchers in developing and transitional economies point out the problems of gender discrimination under patriarchal traditions, double-shift syndrome, and corruption.

Females Contributions To Global Market

Women business owners bring many assets to the global market. Female entrepreneurs have demonstrated the ability to build and maintain: Long-term relationships and networks. To communicate effectively. To organize efficiently. To be fiscally conservative. To be aware of the needs oftheir environment and To promote sensitivity to cultural differences.

Credit Barriers
The importance of access to credit is identified as a major barrier to entry into self-employment throughout the world. Women setting up microenterprises, SMEs, or formal large-scale businesses all encounter varying degrees of difficulty in obtaining capital, collateral, and fair lending terms. In fact, according to a study by Peggy Clark and Amy Kays, 41% of entrepreneurs report that lack of money is the greatest obstacle to starting a business, and 47% cite lack of capital as the greatest barrier to business growth. Women in particular tend to seek small personal loans because, in general, they tend to start small firms.
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Womens enterprises are qualitatively different from mens. Studies indicate that women business owners create a clear culture of their own. Female enterprises tend to center on the delivery of services responding to traditionally unsatisfied needs. Author Sally Helgesen commented that women managers liberally seek information, exchange ideas with others, and let information crystallize before making a final decision. Women entrepreneurs show a tremendous willingness
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Opinion Vol. 2, No. 1, June 2012

The banking world has thus far shown little interest in small loans or microcredits, given the relatively high handling costs, with the result that institutionalized banking practices remain, for the most part, rigidly opposed to microcredit concepts.

Double Shift, Double Burden

The combination of two jobs, one at work and one at home, is difficult for a woman in any country, but it is doubly taxing for a woman in a developing or transitional economy where poverty and lack of infrastructure can make the most basic tasks harder and more timeconsuming. Yet, what choice do women have? Goscilo said society exhorted women to be both producers and reproducers. As a consequence, they [bear] the double load of full-time work and all domestic responsibilities. 6 In many ways the double shift, double burden stems from patriarchal traditions that are still followed in the majority of the worlds countries. Yet, change is happening as countries modernize and integrate with the global economy.

Technology, Education, Training

Creating educational tactics for improving technical skills is fundamental for entrepreneurial growth. Technology, education, and training issues are tightly interwoven and can prevent women entrepreneurs reaching their profitability potential. Training is the essential component for producing an able corps of entrepreneurs who not only survive but thrive and contribute to the local, and ultimately, the global economy. Skill-based training, technical training, technology training, and delivery of management skills are necessary to strengthen not only entrepreneurs, but also associations. Technical assistance, in other words, is especially valuable in developing and transitional economies where business and managerial skills are often completely lacking. According to a survey of Russian women entrepreneurs, women business owners strongly desire training, management, and technical assistance. In fact, the survey noted that 59% specifically asked for training in finance, marketing, and related business topics. Women worldwide recognize that they cannot grow without the right tools.

Conclusions
Women entrepreneurs faced constraints in aspects of financial, marketing production, work place facility and health problems. Financial problems faced were nonavailability of long-term finance, regular and frequent need of working capital. Poor location of shop and lack of transport facility were major marketing problems .Production problems included the problem of nonavailability of raw material. Women entrepreneurs also faced problem of improper water and space facility. Guidelines framed as a solution to these problems can help women entrepreneurs to deal with these problems effectively.

References 1. Jean Lee, (1996) The motivation of women entrepreneurs in Singapore, Women In Management Review, Vol. 11 Iss: 2, pp.18 29 2. Incentives and Female Entrepreneurial Activity: Evidence from Panel Firm Level Data.Full Text Available By: Apergis, Nicholas; Pekka-Economou, Victoria. International Advances in Economic Research, Nov2010, Vol. 16 Issue 4, p371-387 3. Langowitz, Nan; Minniti, Maria (2007) The Entrepreneurial Propensity of Women. Entrepreneurship: Theory & Practice, Vol. 31 Issue 3, p341-364.
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4. Kumar A. (2008) Awareness of supporting agencies among women entrepreneurs in small businesses. The Icfai University Journal of Entrepreneurship Development, Vol. V, No. 4. 5. Rosa, Peter; Dawson, Alison (2006) Gender and the commercialization of university science: academic founders of spinout companies. Entrepreneurship & Regional Development, Vol. 18 Issue 4, p341-366. 6. Allan, L. Riding and Catherine, S. Swift (1990) Women business owners and terms of credit: Some empirical findings of the Canadian experience, Journal of Business Venturing Volume 5, Issue 5, Pages 327-340. 7. Buttner, E. Holly; Moore, Dorothy P. (1997) Womens Organizational Exodus to Entrepreneurship: SelfReported Motivations and Correlates with Success. Journal of Small Business Management, Vol. 35 Issue 1, p34-46. 8. Ahlawat, T. (1999) Impact of Financial Assistance Schemes on Economic Empowerment of Women. M.Sc. Thesis CCS Haryana Agricultural University, Hisar Kamulun, N. and A. Kumar. 1992. 9. Entrepreneurship Development in Orissa: Some Issues. Yojna, 16(2): 18-19 Kapoor, K. 1998. Entrepreneurial Behaviour: A Study of Selected Women Entrepreneurs. M.Sc. Thesis, Punjab Agricultural University, Ludhiana Reddi, P.N. 1991.

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