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WOMEN ENTREPRENEURS:

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Concept and definition Women constitute half of the total world population. Similarly, in India also, women constitute fifty per cent of the total population. Till the turn of the century, man has enjoyed a dominant position and a woman has been confined to the four walls of houses performing household activities. Despite all protection granted to women in the constitution of India, they have been often quoted as the second sex. But today, change in attitude, technological innovation and modern ways of thinking can reduce the disparity between man and women and bring about equality between them. So the need for the hour is women empowerment both through provision of employment and enterprise creation. Typologically, the former leads to endogenous empowerment (enterprising absorbing women) and the later gives rise to exogenous empowerment (women creating enterprise). Today, in the changed scenario women have been performing exceedingly well in different spares of activities like academics, politics, administration, social work and so on. Now, there is growing awareness among women that entrepreneurship opens up a new field for them and they can achieve their cherished profession which has independence and self support. (1) Based on the general concept of entrepreneur, women entrepreneur may be defined as 'a woman or group of women who initiate, organize and run a business enterprise'. (2) According to Schumpeter; women who innovate, imitate or adopt a business activity are called "Women entrepreneurs". (3) According to Government of India "an enterprise owned and controlled by a women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women". Thus, on the basis of the above definitions, women entrepreneurs are those women who think business enterprise, initiate it, organize and combine the factors of production, operate the enterprise, undertake risks and handling economic uncertainty by having a controlling interest in that particular enterprise. FUNCTIONS OF WOMEN ENTREPRENEURS: As an entrepreneur, a women entrepreneur has also to perform all the functions involved in establishing an enterprise. These include idea generation and screening, determination of objectives, project preparation, product analysis, determination of forms of a business organization, completion of promotional formalities, raising funds, procuring men, machine and materials and operation of business. Frederick Harbison - has enumerated the following five functions of women entrepreneur. (1) Exploration of the prospects of a satisfying a new business enterprise. (2) Undertaking of risks and the handling of economic uncertainties involved in business. (3) Entrepreneurship Development (4) Introduction of innovations or imitation of innovations. (5) Co-ordination, administration and control, and (6) Supervision and leadership. The fact remains that, like the definition of the term 'entrepreneur', different scholars have identified different sets of functions performed by an entrepreneur whether man or women. All these entrepreneurial functions are broadly classified into three categories. (1) Innovation. (2) Risk-bearing. (3) Organization. IMPORTANCE OF WOMEN ENTREPRENEURS: It is imperative to note the participation of women in economic activities as self-employed individuals. Many of the traditional occupations open to women were mainly based on caste and creed and the nature of self-employment was based on the standard of living. Presently not only are women

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generating employment for themselves in the unorganized sectors, they are also providing employment to others. The country needs to mobilize and utilize fully all its resources including human resources. The participation of women in economic activities is necessary not only from a human resource point of view but is essential even for the objective or raising the status of women in society. The economic status of women is now accepted as an indicator of a society's stage of development. Therefore, it becomes imperative for the government to frame policies for the development of entrepreneurship among women. The long-term objectives of the development programmes for women should aim to raise their economic and social status in order to bring them into the mainstream of national life and development. For this, due recognition has to be accorded to the role and contribution of women in the various social, economic political and cultural activities.

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FACTORS INFLUENCING WOMEN ENTREPRENEURS: Women set up an enterprise due to economic and non-economic reasons as well. Various important reasons can be due to (1) Motivational factors and (2) Facilitating factors. Motivational Factors: (a) Economic necessity. (b) Economic independence. (c) Self-actualisation. (d) Establishing their own creativity. (e) Establishing their own identity. (f) Equal status in society. (g) Achievement excellence. (h) Education and qualification. (i) Building self confidence. (j) Developing risk-taking ability. (k) Employment generation. (l) Family occupation. (m) Greater freedom and mobility. (n) Government policies and programmes. (o) Success stories of friends. (p) Role model to others. Facilitating Factors:

(a) (b) (c) (d) (e) (f) (g)

Adequate financial facilities. Innovative thinking. Self-satisfaction. Co-operation of family. Network of contracts. Experienced and skilled people at work. Support of family members.

PROBLEMS OF WOMEN ENTREPRENEURS: Women entrepreneurs encounter two sets of problems, viz., general problems of entrepreneurs and problems specific to women entrepreneurs. The problems and constraints experienced by women entrepreneurs have resulted in restricting the expansion of women entrepreneurship. The major barriers encountered by women entrepreneurs are as follows: (1) Problem of access to Finance: Women entrepreneurs are lacking access to institutional finance because of three reasons: (i) women do not generally have property on their names to use them as collateral security for obtaining funds from external sources. Thus, their access to the external source of funds is limited. (ii) the banks also consider women less credit-worthy and discourage women entrepreneurs on the belief that they can at any time leave their business, and

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the family members of her family have little confidence in the capability of the women to run a business. Given such situation, women entrepreneurs are bound to rely on their own savings, if any and loans from friends and relatives which are expectedly meagre and negligible. Thus, most of the women enterprises suffer from sickness due to lack of financing. (2) Limited Mobility: Unlike men, women mobility or travelling from place to place in India s limited due to various reasons. Women on their own find it difficult to get accommodation in smaller towns. A single women asking for a room is still looked upon with suspicion. (3) Family Ties: In India, it is mainly a women's duty to look after the children and other members of the family. Her involvement in family leaves little energy and time to devote for business. Married women entrepreneurs have to make a fine balance between business and home. Their success in this regard also depends upon supporting husband and family. Without the support and approval of husband, the female entrepreneurs cannot succeed. There arises a role conflict in many women entrepreneurs. (4) Male-Dominated Society: Important barrier to the empowerment of women through enterprise is the male chauvinism. Prevalent socio-cultural attitudes and beliefs are not conducive to the blossoming of women as entrepreneurs. Male child is still preferred than female child right from the birth. Constitution of India speaks about equality of sexes, but till today women are considered as weak in all respects. This consideration acts as a stumbling block in their strife for equal status with men in the pursuit of economic activity. (5) Family conflicts: Women entrepreneurs also face the conflict of performing of home role as they are not available to spend enough time with their families. They spend long hours in business and as a result, they find it difficult to meet the demands of their family members and society as well. Their inability to attend to domestic work, time, childrens education, personal hobbies, entertainment adds to their conflicts. (6) Role conflict: Entrepreneurship needs a high level commitment, devotion and dedication. Women taking on the mantle of entrepreneurship suffer from stress and strain caused by role over load and role conflict as they strive simultaneously to cope with their multiple role as being a mother, wife, homemaker etc., (7) Lack of education: The greatest barrier of entrepreneurial career among women is the lack of education. In India 60 per cent of women are still illiterate and illiteracy is the major problem of socio-economic backwardness. Due to lack of education, majority of women are unaware of business, technological developments, marketing knowledge, etc. Lack of information and experience creates further problems in the setting up of running of business enterprises. (8) Discrimination in upbringing: Right from early childhood, girl child is taught not to be aggressive or independent. They are discouraged to move out of the family and take up their business. Conservative attitude of the family members makes the women weak and passive in their approach. Decisions are taken for them by others. (9) Low need for Achievement: Need for achievement, independence and autonomy are the prerequisities for success in entrepreneurship. But women are proud to bask in the glory of their parents, husbands, childrens, etc. Their preconceived notions about their role in life inhibit achievement and independence. In the absence of the required urge to achieve, few women succeed as entrepreneurs. (10) low risk-bearing Ability: Women in India lead a protected life and they are confined to the four walls of the house. They are less educated and economically not self-dependent. Sometimes, they face discrimination in the selection for entrepreneurial development training. Some of them lack entrepreneurial initiative or specialised training. Inferiority complex, unplanned growth, lack of infrastructure, late start etc. All these reduce their ability to bear risk involved in running an enterprise. (11) Lack of self-Confidence: Women lack of self-confidence in their own abilities, which is partly due to socio-cultural environment. Having accepted a subordinate status for long, even at home, members of their family do not appear to have total confidence in their abilities and on their decision-making. Society in general also lacks confidence in a woman's strength, traits and competence. This is

(iii)

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quite apparent in the family's reluctance to finance a women's venture, bankers are reluctant to take risks on projects set up by women, and individuals are unwilling to stand guarantee for loans to a women. (12) Lack of Encouragement from Family: Very few women get encouragement from their family to start a business. In India, because socio-cultural environment (customs, traditions and practice) it is mainly a women duty to look after the children and other members of the family. Consequently, family bonding spares a little time for the women to take up entrepreneurial activity. Studies have found out that women brought up in homes are not restrictive in their outlook tend to be innovative, independent and dynamic and are likely to become successful entrepreneurs. (13) Other problems and constraints faced by women entrepreneurs are: (a) Negative attitude of banks and financial institutions. (b) Lack of working capital. (c) Lack of managerial efficiency. (d) Lack of Access to Advanced Technology. (e) Red tapism. (f) Lack of business experience. (g) Scarcity of raw materials. (h) Inefficient arrangement for marketing and sale. (i) Lack of information. (j) Inadequate infrastructural facilities. (k) High cost of production. (l) Stiff competition. (m) Lack of training. (n) Other social and economic constraints.

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STRATEGIES FOR THE DEVELOPMENT OF WOMEN ENTREPRENEURS: In small and medium enterprises due to limit sources, majority of the functions have to be performed by the owners themselves. In case of Women entrepreneurs, the problems get compounded because certain functions have gender dimensions attached to them. Domestic commitments and child-care support are the two main responsibilities of women. This, along with the still narrow outlook of society in accepting a woman as an entrepreneur makes her life more difficult. Some suggestions to meet these challenges and to encourage women entrepreneurship are given below: (1) To overcome the resistance from husband and members of the family at the time of setting up of their venture, prospective women entrepreneurs are advised to maintain their cool and persistently convince them, without confronting them, regarding the benefits of setting up of an enterprise. The woman requires having a strong will power under the circumstances. The inflow of money will eventually solve this problem. (2) Shouldering the dual responsibilities of an entrepreneur and a homemaker can be effectively under taken by a women entrepreneur through better .time management. The members of the family can also be involved in the business, which will help in sharing the burden of entrepreneurial work. Moreover, the women entrepreneur must try to make her husband and children self-sufficient at home. With tact and diplomacy, she should solicit cooperation in running the enterprise from the family. (3) Women can set up a home-based business. By operating her business from home, a women can better co-ordinate her household and business responsibilities. (4) A woman can start her business when her children are grown up enough to take care of their own small needs. This gives the women enough time to manage her enterprise. (5) Women must acquire education and go through confidence building training to get rid of the traditional feeling that they are inferior to men and are dependent on men. (6) For marketing her products, a woman entrepreneur must establish her credibility in terms quality and competitiveness of product or service. She should acquire relevant techniques and skills to win customer's loyalty. E-commerce businesses will also help greatly in this regard. For publicity and

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advertisement, the women entrepreneur can work on alternatives like cable TV, pamphlets, leaflets, slides in cinema halls, banners at strategic locations and so on. (7) Effective and efficient use of information technology like the Interest can help in assimilating information about the variety, range, and quality of say competing products, and publicity and marketing of products and services. (8) Workshop and seminars should be organized frequently for the officials of financial and support agencies and for women entrepreneurs to make their relations more cordial. (9) Procedures for financial assistance by banks and government organizations must be simplified. Women inspectors, if available, should be asked to inspect women enterprises. (10) It has been observed that there is a tendency to project a higher value of sales, production, and profits in project reports to impress the bankers. Such a project profile is not appropriate from a financial management point of view. So, women entrepreneurs need to undertake training in various aspects of financial management to understand its finer implication. (11) Since complicated and lengthy procedures make it difficult to acquire loans from government, financial agencies, and banks, it is suggested that women entrepreneurs search for non-formal sources of finance like private financiers, relatives, friends and others. (12) Banks and financial institutions must maintain a minimum target of loan to be disbursed to women entrepreneurs. Collateral security should be dispensed with in the case of women entrepreneurs because many women hardly have any property or other assets in their name to keep as guarantee. Margin money for projects to be undertaken by women entrepreneurs should not exceed 10 per cent. Subsidies should also be given to women entrepreneurs at the initial stage itself. (13) Women entrepreneurs should acquire relevant training in technology and in details of their plant and machinery. They should be knowledgeable about the functioning of machines and processes. They should be more assertive with their employees. They should employ more women workers in their enterprises. They must undergo training in management skills to handle human resources as well as training in effective communication skills and practices and the legal aspects of running a business.

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women to overcome their poverty. It empowers women and provides the necessary confidence for entrepreneurship. Women's organizations, women's co-operatives, and NGOs should be promoted to assist self-employment for poor women. In the present scenario, due to modernization, urbanization, globalization and development of education, with increasing awareness, women are now seeking gainful employment in several fields. Women are entering into entrepreneurship even in the face of socio-cultural, economic, technical, financial and managerial difficulties. Women entrepreneurship movement can gain momentum by providing encouragement, appropriate awareness, training, environment and support. This would definitely enhance their socio-economic status, a pre-requisite for women's empowerment. PROMOTION OF WOMEN ENTREPRENEURS: In India, women constitute about 50 per cent of the population but their participation in economic activities is only 34 per cent. There is a continuing concentration of women in low paid and low-status occupations, indicating that women are marginalised in the labour force. There is a common assumption that men are the bread winners and that most of the female work is either done in leisure time or serves to procure supporting income for the family. Major reason for this is the social prejudices that a women's world is required to be focused around the family and household. In addition to this, in the rural areas of India, there is a lack education, health care facilities and effective opportunities of employment for women. India's first Prime Minister, Pandit Jawaharlal Nehru, said "when women move forward, the family moves, the villages moves and the nation moves". Employment gives economic status to women. Economic status gives way to social status and thereby empowerment. The "Gender and Development (GAD)" approach in 1980s clearly identified the role of women as entrepreneurs. The GAD approach works to move women from the margin to the centre by allowing

(14) Group entrepreneurship is a viable option for the weaker sections of the society and it helps

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them to gain a sense of control over their lives (empowerment). Since 1975 there is awakening world over about women entrepreneurs and in moderate way steps are being taken to gradually improve the conditions from them. Some of the prominent events and developments towards this are as follows: (1) United Nations declared the decade 1975-85 as the Decade for women. (2) UNIDO (United National Industrial Organization) arranged a meeting in Vienna during 6th to 10th February 1978 on the topic 'Role of women in Industrialization in Developing Countries'. In this conference it raised the issues of constraints such social, attitudinal and institutional barriers, inadequate employment opportunities, inappropriate and inadequate training, insufficient flow information, and so on which caused women back from participating in industrial activities. (3) The World Conference of the United Nations Decade for Women held at Copenhagen in Denmark on 30th June 1980 also adopted a programme aimed at promoting full and equal opportunities and treatment of women in employment and their access to non traditional skilled trades. In this back drop Government of India has taken certain steps to promote women entrepreneurship. (4) Steps taken by Government:

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(1) In November 1981 India arranged its first "National Conference for Women Entrepreneurs" at (2) The second conference on "Women Entrepreneurs" was organized by NAYE (National
Delhi. Alliance of Young Entrepreneurs) in 1989 at New Delhi. It adopted the following declarations: (a) National and State governments should promote women's participation in social and economic developmental programmes. Organize requisite facilities, train ing and enact legislations to remove constraints in their way, arrange for transfer of relevant technology and financial assistance. (b) Financial and expertise assistance should be given to women entrepreneurs doing exports. For this UNO, ILO and National Governments must enact suitable measures. (c) Fairs and exhibitions of products manufactured by women entrepreneurs should be widely displayed and advertised. (d) UNESCO and the education ministries in different countries should provide necessary literature, course books and publications for the benefits of students. (3) In the Seventh Five year plan Government of India included a separate chapter on 'Integration of women in Development' for the development of women entrepreneurs. The chapter suggested: (a) To treat women as specific target groups in all development programmes. (b) To devise and diversify vocational training facilities for women to suit their varied needs and skills. (c) To promote appropriate technologies to improve their efficiency and productivity. (d) To provide assistance for marketing their products. (e) To involve women in decision-making process.

(4) In the Industrial Policy 1991, the Government of India further stressed the need for conducting
special entrepreneurship development programmes for women with view to encourage women to enter industry. Product and Process oriented courses enabling women to start small scale industries are also recommended in the policy statement. INSTITUTIONS AND ORGANIZATIONS SUPPORTING WOMEN ENTREPRENEURS: A brief analysis of various Institutions and Organizations that are functioning at state and national levels to promote women entrepreneurs. 1. Promotional Organizations: (A) Federation of ladies Organization (FLO): The Federation of Ladies Organization (FLO) is the women's wing of the Federation of Indian Chambers of Commerce and Industry (FICCI). FLO was

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formed in 1983 as a national level forum for women with the basic objective of women empowerment". FLO has the following spectrum of activities (a) Promotes women entrepreneurship and professional excellence. (b) Organises regular seminars and conferences in which various eminent professionals from industry are initiated to offer guidance on various issues such as IT, Taxation, Insurance, Ventures Capital, Travel and Tourism, Exports, Gems and Jewellery, Stock Market Operations, Accountancy, Marketing, Mutual Funds, etc. FLO encourages women to be self reliant, taking charge of their own life, exploit their talent to the fullest and final recognition in the professional world. (B) Federation of Indian Women Entrepreneurs (FIWE) : The Federation of Indian Women Entrepreneurs (FIWE) was started in 1993 following decisions taken at the 4th International Conference of Women Entrepreneurs, held in December at Hyderabad. Its main function was to establish net working and to provide a package of services to the women entrepreneurs associations in India. Associations of women entrepreneurs in different states and districts are affiliated to FIWE so that they can have networking. Individual women entrepreneurs are also eligible for general membership. The main objectives of FIWE are as follows: (a) To provide training facilities in export marketing and management, domestic marketing, quality control and standardisation. (b) To facilitate an enterprise to network within the country and abroad. (c) To provide greater access to latest technologies, know-how and help in the expansion of small and medium sized enterprises run by women. (d) To facilitate participation in International and regional fairs, exhibitions, seminars, and symposia for women so that they get greater exposure to regional and global business environment and opportunities. (e) To effectively articulate the problems and constraints faced by women entrepreneurs in identifying business opportunities, management of enterprise at various stages. (f) To enhance access to term loans and working capital. (g) Assist in the identification and investment opportunities. (C) National Women's Development Corporation (NWDC): National Women's Development Corporation (NWDC) serves all women especially rural and urban poor in following areas through promotion of women Development Corporation in all states. (a) Preparation of shelf of viable projects. (b) Provision of training. (c) Provision of technical consultancy services. (d) Provision for facilities for women entrepreneurship training. (e) Provision of necessary linkages. (D) Consortium of Women Entrepreneurs of India (CWEI): In the context of the opening up of the economy and the need for up-gradation of technology, the Consortium of Women Entrepreneurs of India started in the year 2001, provides a common platform to help women entrepreneurs in finding innovative techniques of production, marketing and finance. CWEI consists of (a) NGOs, (b) Voluntary organizations, (c) Self-help groups, (d) Institutions and individuals enterprises, both from rural and urban areas, which collectively support and benefit from the activities taken up by the Consortium. CWEI takes up integrated activity linked with product development and manpower training. It is also acts as an intermediary between Indian entrepreneurs and overseas "' agencies for marketing and exports. Some of the activities of CWEI are:

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(a) Assists women entrepreneurs in global marketing skills level. (b) Organises exhibitions. (c) Arranges buyer-seller meets. Entrepreneurship Development 7

Chapter I Entrepreneurship (d) Market promotions and selling activities. (e) Provides essential marketing linkages within the country and overseas. (f) Recognised as the Nodal Agency by Ministry of HRD., Government of India to organise

various economic activities in the country. It declared 2001 as year of women empowerment. CWEI is a registered civil society, a voluntary organization that works for the economic empowerment of women in the country and world over. (E) World Association of Women Entrepreneurs (WAWE): The World Association of Women Entrepreneurs is an international women's business organization. Its aim is to bring together all women who are qualified to take up an active and leading part in employer organizations along with their male colleagues. It seeks to explore and advise on the means of which the rights and duties of women in business and industry could be asserted and improved. The association has a membership of more than 29,000 women entrepreneurs from all over the world. Some of the activities of WAWE are:

(a) Promotion of women entrepreneurship. (b) Participation in international conferences. (c) Facilitating international collaboration with their counter parts for setting up new units or for (d) Advice women about the rights and duties of women in business.
(F) Women's India Trust (WIT): The trust was established in 1968 by Kamila Tyabji. She made a small beginning with two shops in Mumbai and a training and production centre known as the Kamila Tyabji. WIT centre at Parnvel, 40 Kms. from Mumbai. The trust was started with the main objective of helping women entrepreneurs. Encouraged by the success of WIT in Mumbai, it further extended its activities which are as follows: (a) The Kamila Trust U.K. was set up in the early 1990s with a aim of selling in England items produced by the WIT family of women in India. At least, friends held 'home sales' in London and Yorkshire, and then in 1994 the Kamila Trust opened its own shop called KASHI in London. (b) Encourage by its success in London, WIT expanded the export activities to Australia, Europe and Germany from 1995 onwards. (c) WIT was provided training and employment opportunities to needy and unskilled women of all commodities through educational programme in 'Nursing' and 'kindergarten training. (d) WIT has plans to launch computer training for women. The trust is working with vigour to install self-assurance, self-confidence and self-reliance concepts in the minds of women. It is also provides assistance to its members to secure finance from financial institutions. Training in business skills is imported to needy women entrepreneurs. The Trust acts as an Information System to provide information to aspiring women on business opportunities available to them. (G) Self - Employed Women Association (SEWA): SEWA is a Trade Union registered in 1972 under Trade Union Act. It is an organization of poor, self employed women workers. These are women who earn a living through their own labour or small business. The SEWA members are not coming from the organized sector." They are the women of un-organised sector and are unprotected. They constitute nearly 93 per cent of the women labour force of the country. However, their work is not counted and hence remains invisible. In fact, women workers themselves remain uncounted, undercounted and invisible. SEWA's main goals to organize women workers for full employment. Full employment where by women workers obtain work security, income security, food security and social security. SEWA organizes women to ensure that every family obtains full employment. Though SEWA, these helpless labour force could have an easy access to credit, child care, health care facilities, etc. export and import business.

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SEWA organises workers to achieve their goals of full employment and self-reliance through the strategy of struggle and development. Self reliance means that women should be autonomous and selfreliant, individually and collectively, both economically and in terms of their decision making ability. SEWA has been supporting its members in capacity building and in developing their own economic organizations. There are three types of self-employed women workers:

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(a) Hawkers, vendors and small business women like vendors of vegetables, fruit, fish, eggs and (b) Home-based workers like weavers, potters, bidi and agarbatti workers, papad rollers, readycontract labourers, handicart pullers, head loaders, domestic workers and laundry workers. SEWA has international affiliations. One with "Hone Net" the international network for home based workers and the other with "Stree Net International" - an association of hawkers and vendors. With these affiliations, SEWA has extended its operations to the global level and has the opportunity of receiving grants from international organizations, such as Food Foundation, UNICEF., (the United Nations International' Children's Education Fund) ILO., (International Labour Organization) etc. Government of India is also providing funds to this organization. other food items, household goods and clothes. made garment workers, women who process agricultural products and artisans.

(c) Manual labourers and service providers like agricultural labourers, construction workers,

(H) Association of Women Entrepreneurs of Karnataka (AWAKE) : AWAKE was established in 1983 and has been recognised worldwide. It is an affiliate of Women's World Banking, New York. It is one of India's premier institutions for women totally devoted to entrepreneurship development. The mission of AWAKE can be broadly described as "empowering" women through entrepreneurship development to improve their economic condition. AWAKE's mission includes the following:

(a) To promote entrepreneurship among women and thereby empower them to Join the

economic mainstream. (b) To enhance the status of women in society by creating a culture of entrepreneurship amongst women in both rural and urban areas. (c) To develop successful models of entrepreneurship for emulation worldwide. Through an exclusive arrangement with a consultancy service AWAKE provides: (a) Imparts technical knowledge. (b) Training women entrepreneurs in preparation of project reports. (c) Helps in establishment of contracts for finance. (d) Helps in identification and selection of a product line and a product. (e) Drafts methodology to deal with bureaucratic hassles. (f) Drafts methodology to tackle labour problems. (I) Self-Help Groups (SHGs) : A self-help group is a small, economically homogeneous and significant group of rural/urban poor, voluntarily formed to save and mutually agreed to contribute to common fund to be lent to is members a per group decisions. Each member contributes little amount to cover seed money and rest of will be taken care of either by NGOs or Financial Institutions or the Government. Owing to the credit programme, the women have access to money. They decide on their own which issues are of concern. Some women may start a home-based business from the loan availed. In Karnataka "Stree Shakthi" scheme of Government of Karnataka is providing funds for women entrepreneurs through financial institutions for the last five years. All the members of SHG have to be active, attend all meetings and discuss the programmes and problems. In the initial stages every members has to get training from the identified trainers in their areas of activity. The funds will be provided by members as well as supporting institutions such as NGOs funding agencies or Governments. A typical rural women's SHG is a good example of capacity for prospective entrepreneurs. It aims include enabling member with no educational or industrial or entrepreneurial background to become self

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dependent and self-reliant, developing and enhancing the decision-making capacity of members, installing in members the strength and confidence to solve their problems, and providing poor people to forum where they can learn about collectively mobilizing and managing money and matters. 2. CREDIT INSTITUTIONS: (A) Small Industries Development Bank of India (SIDBI): SIDBI is assisting the entire spectrum of SSI sector including the tiny, village and cottage industries through suitable schemes tailored to meet the requirements of setting up of new projects, expansion, diversification, modernisation and rehabilitation of existing units. SIDBI has three women specific schemes. These schemes give financial assistance to women entrepreneurs to enable them to set up industrial units in small-scale sector. The schemes are operated through State Financial Corporations (SFC), State Industrial Development Corporation, (SIDC), Commercial Banks, State co-operative Banks and Regional Rural Banks. These Schemes of SIDBI are: (a) Mahila Vikas Nidhi (MVN): It is a specially designed fund for economic development of women. The fund is used for providing assistance to accredited NGO's for providing-training and employment opportunities to women especially rural poor. A judicious mix of loan and grant, the basic activity involves setting up of training-cum-production centres. The assistance is basically catalytic and is only the really well-run NGO's that can secure financial assistance. (b) Mahila Udam Nidhi (MUN): This scheme is for enterprising women entrepreneurs to set up new projects in the tiny and small-scale sector and for the rehabilitation of viable sick SSI units. This scheme is for providing equity to women entrepreneurs. The scheme operated through SFCs. SIDCs, scheduled Commercial Banks, Schedule Urban Co-opertive Banks. The cost of the project should not exceed Rs.10 Lakhs. (c) Marketing Fund for Women (MFW): This fund is available to women entrepreneurs and organizations involved in marketing of products manufactured by women entrepreneurs increase their share in level in domestic as well as international markets. Under this scheme eligible borrowers are: (i) SSI units owned and managed by women entrepreneurs. (ii) Marketing related services providers, organizations, units in the corporate, cooperative and NGO sections which are providing support services like internet, trade related informations, advertising, marketing research, warehousing, common testing centres etc., to enterprises owned and managed by women entrepreneurs. Over and above this, SIDBI also provides developmental assistance by way of soft loans, grants for organizing group activities like trade, fairs, exhibitions, buy-sellers meets, seminars, workshops, training programmes etc., to promote marketing of products manufactured by women entrepreneurs. (B) National Bank for Agriculture and Rural Development (NABARD): The National Bank for Agriculture and Rural Development "seeks to remove the barriers of credit to Women". It aims to treat women as risk-free, bankable clients, provide linkages along with the credit, identify appropriate economic activities for women and promote women Self-Help Groups and link them with the formal banking system. NABARD has evolved exclusive schemes for women such as Assistance to Rural Women in non-farm Development (ARWIND), Assistance for Marketing of Non-farm Products of Rural Women (MAHIMA) and support in the form of grant assistance for setting up "Women Development Cells" by RDBs/Co-operative Banks. ARWIND has both credit and grant components. It is envisaged that women groups organized or sponsored by a suitable agency could avail of bank credit normally not exceeding Rs.50,000 per women) member for an own account activity or group activity, with 100 per cent refinance support from NABARD. MAHIMA seeks to create a niche or pro-women market and assists in credit by way of 100 per cent refinance up to Rs.10 Lakhs. 3. FINANCIAL ASSISTANCE SCHEMES OF COMMERCIAL BANKS (A) SBI Stree Shakti Package: The SBI introduced Stree Shakti Package in the year 1989 to develop women entrepreneurs. Highlights of this package are as follows:

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(a) Under this scheme, Entrepreneurship Development Programmes (EDPs), exclusively

designed for women entrepreneurs, are conducted. The programmes are organized with the

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Chapter I (b) (c) (d) (e)

Entrepreneurship
help of SBI staff training college and the local branches. The branch managers and the field officers of the banks would provide necessary support and assistance to women who want to set up enterprise. In this scheme, financial assistance to the extent of Rs.25,000 can be provided to the women entrepreneurs without keeping collateral security or guarantee. Further, a discount of half per cent is allowed on the interest charged. Loan proposals can be sanctioned within a period of 30 days from the date of receipt of the application form from the women entrepreneur. But in case of high value proposal and when there is the involvement of more than one financial institution, this stipulation is ignored.

(B) Bank of India Priyadarshini Yojana : The scheme aims at providing financial assistance to the women entrepreneurs who come under the following categories. (h) Small business, e.g., beauty parlour, laundry, lending library, etc. (iii) Retail traders, e.g., fair price shops, general stores, etc. (iv) Road transport operators, e.g., autorickshaws. (v) Professional and self-employed, e.g., chartered accountants, lawyers & doctors. (v) Allied agricultural activities. In this case, the maximum unit of loan amount is up to Rs.2 lakhs for term loans and upto Rs.1 Lakh for working capital. The assets acquired with bank finance will need to be hypothecated to the banks as security. Repayment period is normally for a span of three to five years. The margin money to be departed by the promoter is usually 20 per cent depending upon the type of activity. Apart from this the following schemes are in operation to help the women entrepreneur in obtaining financial assistance. (i) Prime Minister's Rojgar Yojana (PMRY). (ii) Self-Employment Programme for Urban Poor (SEPUP). (iii) Swarnajayanti Gram Swarojgar Yojana (SGSY). (iv) Integrated Rural Development Programme (IRDP). (v) Micro-finance through Rastriya Mahila Kosh (RMK).

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