Professional Documents
Culture Documents
ABSTRACT
Entrepreneurship as an factor of economic development can become a vital link for harnessing huge and unused
is now recognized. A number of financial institutions human skills to channelize them towards accelerating
provide support to women entrepreneurs for their the gender mainstreaming and position p women
innovative and imaginative scheme of activities aimed entrepreneur on equivalence with men entrepreneurs.
at skill development for income and employment
generation in different
ent sectors. Besides, the society Keywords: Financial Institutions; development; women
should also facilitate the growth of women by Entrepreneur; government
recognizing their talents and abilities. There has been a
INTRODUCTION
substantial growth in women’s involvement in the
economic activities all over the world over the past few Entrepreneurship as an ingredient of economic
decades. For this both the government and non non- development has been recognized long ago in 1950. It
government agencies have to play a vital role. Despite was since then substantial amount of research has gone
the efforts of governmental and non--governmental into this sphere. It is well known fact that entrepreneurs
organizations, the women entrepreneurs are facing are born but they can also be made through innovative
many problems. It has been pointed out by many and creative interventions. However men and women at
research studies that more than 70% of the problems large are not showing sufficient of entrepreneurship
faced by the women entrepreneurship are related with skills and the women’s position is more critical.
credit. Financial institutions have historically viewed Therefore, they should be helped particularly where
women entrepreneurs as more doubtful preposition than women entrepreneurs are prone to face more hurdles.
men entrepreneurs.
The focus on the contribution of women in direct
Today there is a greater development among women. If productive work was first brought out in 1970 by Ester
given the opportunity, they will deliver the outcome. It Boserup in his book “Women’s Role in Economic
is therefore essential to encourage educated young Development”. This work of Boserup is a complication
women to entrepreneurial streams with financial, of his research experience in India. It also provided a
technical and scientific assistance. Hence, an integrated conceptual framework for research on Women and
approach is necessary for makingg the movement of Development. Around the mid 1970’s,
1970 neo-Marxist
women entrepreneurship a success. Governmental and feminists and dependency theorists began looking at the
Non-governmental
governmental organizations should make more relationship between women and development
focused and directed efforts, and initiate specific ratherthan the strategies for integrating women in
programmes for women entrepreneurship development. economic development. However, lack of
Entrepreneurial development programmes es should train, understanding of women’s work in developing
motivate, enhance and shape-up up individual skills of societies,
es, and Western biases in development projects
women having market potential. The EDPs and MDPs
reinforced the division between public and private 3. Financial Schemes for Women Entrepreneurship:
spheres of women lives. With a view that women entrepreneurs should come
forward in industrial field and become self- sufficient,
Women and development like women in development
governmental and financial institutions have announced
focused on productive sector, and aimed at skill
many schemes of providing financial assistance. Seed
development for income generation.
apital Scheme- In order to start one’s own business this
scheme is undertaken by the government. Mohanty
1. Financial Institutions:
(2004) suggested that various self employment and
A number of institutions collect funds from the public
income generating schemes such as IRDP, SEEUY,
and place them in financial assets such as deposits,
PMRY, SSI, KVI and DWCRA implemented in Orissa
loans and bonds rather than tangi property. Various
have made significant contribution towards economic
financial institutions and banks are playing a significant
empowerment and self- employment of women and
role in the development of women entrepreneurship.
development of women entrepreneurship.
Some of them are described below Governmental
Institutions: Regional Rural Bank, Cooperative
4. Important government agencies are Directorate
Societies, Khadi and Village Industries, National
of Industries:
Agriculture Bank for Rural and Development operate in
Khadi and Village Industries Board, Small Industries
rural areas whereas National Small Business
Service Institutions, Mahila Vikash Sambaya Nigam
Development Corporation, Research Development
and Rashtriya Mahila Kosh were contacted for this
Corporation, National Institute for Entrepreneurship
purpose. The Rastriya Mahila Kosh mainly fulfills the
operates in urban areas. However, Small Industries
credit needs of poor women particularly, those engaged
Development Corporation, National Small Industries
in the unorganized sector not being adequately
Corporation, Small Industries development of India,
addressed by the formal financial institutions. RMK
Industrial financial Corporation of India functions in
aims at promoting small enterprises among poor
rural as well as urban areas. Tiwari et al (1981) found
women through provision of credit as an instrument to
that the government was assisting the women for
socio-economic change and development through the
entrepreneurship development by providing financial
provision package of financial and social development
assistance in the form of term loans, interest, subsidy,
service for the development of women
unsecured loans and concession in the form of subsidies
entrepreneurship. Gupta (1997) found that the
in the capital, self employment loan etc. Kumar (1998)
empowerment of women central government of India
reported from Banglore that Canara Bank’s Centre for
has started Priyadarshani Yojna in the name of late
Entrepreneurship Development gives training to
Prime Minister Smt. Indira Gandhi. Through this
women and helps them to set up small industrial units
scheme loan on minimum interest is provided to
besides providing assistance for marketing their
women for entrepreneurship development to improve
product. The assistance by the government to women
their livelihood. As a pilot project this scheme has been
entrepreneurship has been provided through various
launched in six districts: four districts (Raipur, Sitapur,
institutions like SIDO, DIC, EDI, NAYE, NISIET,
Shravasti and Behraich) are in Uttar Pradesh and two
SIDBI, SEF, WCFC and commercial banks etc.
(Sitamani and Madhubani) in Bihar.
2. Non- Governmental Institutions:
a. Obstacles in Getting Financial Assistance by
World Assembly of Small and Medium Entrepreneurs,
Institutions:
Xavier Institute for Social Societies are functioning in
Despite the efforts of governmental and non-
rural areas whereas National Association of Women
governmental organization the women entrepreneurs
Entrepreneurs and Executives, Indian Council of
are facing lots of problems. In various studies it was
Women Entrepreneurs is working in urban areas.
reported that more than 70% of the problems faced by
National Alliance of Young Entrepreneurs, Self
the women entrepreneurs are related with credit.
Employed Women’s Association etc are having their
presence in rural as well as urban areas.
objective of the study:
There are many promotional governmental and
nongovernmental institutes/agencies functioning at The main objective of this study is to investigate the
national level for the promotion of entrepreneurship. involvement of financial institutions in the
These are also playing significant role in the development of women entrepreneurship in Tamil
development of women entrepreneurship. Nadu.
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 790
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
to provide financial, technical, social and business Women entrepreneurship has been recognised as an
support to women entrepreneurs important source of economic growth. Women
Women entrepreneurship has been recognised as an entrepreneurs create new jobs for themselves and others
important source of economic growth. and also provide society with different solutions to
Women’s entrepreneurship can make a strong the management, organisation and business problems.
economic well-being of the family and However, they still represent a minority of all
communities, poverty reduction and women’s entrepreneurs. Women entrepreneurs often face gender-
empowerment in Tamilnadu. based barriers to starting and growing their businesses,
like discriminatory property, matrimonial and
b. Policies and Schemes for Women Entrepreneurs inheritance laws and/or cultural practices; lack of
in India: access to formal finance mechanisms; limited mobility
In India, the Micro, Small & Medium Enterprises and access to information and networks, etc.
development organisations, various State Small
Women’s entrepreneurship can make a particularly
Industries Development Corporations, the Nationalised
strong contribution to the economic well-being of the
banks and even NGOs are conducting various
family and communities, poverty reduction and
programmes including Entrepreneurship Development
women’s empowerment, thus contributing to the
Programmes (EDPs) to cater to the needs of potential
Millennium Development Goals (MDGs). Thus,
women entrepreneurs, who may not have adequate
governments across the world as well as various
educational background and skills. The Office of DC
developmental organizations are actively undertaking
(MSME) has also opened a Women Cell to provide
promotion of women entrepreneurs through various
coordination and assistance to women entrepreneurs
schemes, incentives and promotional measures.
facing specific problems.
Women entrepreneurs in the four southern states and
There are also several other schemes of the government
Maharashtra account for over 50% of all women-led
at central and state level, which provide assistance for
small-scale industrial units in India.
setting up training-cum-income generating activities for
needy women to make them economically independent.
d. Loans for Women:
Small Industries Development Bank of India (SIDBI)
Not only if you are a businessman can apply or get a
has also been implementing special schemes for women
loan, but in India, women are equally entitled to get
entrepreneurs.
business loan. There are not many women with the
In addition to the special schemes for women knowledge, to take advantage of loans offered by
entrepreneurs, various government schemes for public sector banks. Indian business women are still a
MSMEs also provide certain special incentives and minority. The awareness among women about loan
concessions for women entrepreneurs. For instance, products to set up small enterprise is extremely low.
under Prime Minister’s Rozgar Yojana (PMRY), However, things have definitely changed over last 25
preference is given to women beneficiaries. The years since the time the first business loan scheme was
government has also made several relaxations for introduced exclusively for women. A few Indian Public
women to facilitate the participation of women Sector Banks( PSBs) play an important role. State Bank
beneficiaries in this scheme. Similarly, under the MSE of India (SBI) Stree Shakti package scheme was
Cluster Development Programme by Ministry of introduced withthe aim to get loans for women who are
MSME, the contribution from the Ministry of MSME keen to start-up a business. Punjab National Bank
varies between 30-80% of the total project in case of (PNB) also runs a scheme Mahila Udyam Nidhi
hard intervention, but in the case of clusters owned and Scheme which is beneficial in a same concern.
managed by women entrepreneurs, contribution of the
M/o MSME could be upto 90% of the project cost. 4. The business loan through such schemes is
Similarly, under the Credit Guarantee Fund Scheme possible only as in when women fulfill the following
for Micro and Small Enterprises, the guarantee cover conditions:
is generally available upto 75% of the loans extended; A woman or the housewife must be aged 18 years or
however the extent of guarantee cover is 80% for MSEs above, must have lived in a place for more than six
operated and/ or owned by women. months, she must not have been a member of any
industrial cooperative society and not indebted to any
c. Development of Women Entrepreneurship cooperative or state agency. Saving fund account with
Through Financial Institutions in India: the bank is a must. In which she has to deposit
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 791
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
fortnightly an amount after her working and living Stree Shakti Package: The bank encourages
expenses. entrepreneurship among women by offering some
concessions and special facilities that help train women
You are ready to start your business but the knowhow
entrepreneurs.
to take loan is still a question.Indian nationalized banks
offer loan schemes through which women can start-up
c. Punjab National Bank:
new scale of manufacture, preservation, and processing
of goods.
PNB Mahila Udyam Nidhi Scheme: Targets the
Bank of India’s, Priyadarshini Yojana scheme, no micro and small scale sector as well as the
collateral security is required for loans up to Rs 5 lakh rehabilitation of sick SSI units.
and for small-scale industries (SSI) units and there is a PNB Mahila Samridhi Yojna: Financial aid for the
relief of interest rates from 0.5% to 1 %. Similarly, purchase of infrastructure for tailoring shops,
Oriental Bank of Commerce’s Orient Mahila Vikas boutiques, telecom agencies, beauty parlours, and
Yojana scheme, there is upto 2% concessions and no Internet browsing centers.
collateral security for loans upto Rs.10 lacs and in case Scheme For Financing Creches: Provides cheaper
of SSI no collateral security required up to Rs.25 lacs. and easier credit to setup a crèche. Equipment such
as stationery, refrigerators and water filters are
So, it is advisable that they should explore more before
covered by the scheme.
starting a new business assignment as there are many
PNB Kalyani Card Scheme: It targets both literate
banks those not only provide special counseling for
and illiterate women hailing from the semi-urban or
women entrepreneurs but also offer training how to
rural areas looking to agriculture / non-farm
market their products.
activities.
Women entrepreneurs face many difficulties to get PNB Mahila Sashaktikaran Abhiyan: Provides
ahead their life in business and are suffering from concessions such as a reduction in interest rates;
insufficient financial resources and working capital waiver of 50 percent of the upfront fee and margin
which leads to lack their external funds. However, fee cap at 10 percent
knowledge of technical changes, new market trends,
participation in decision making, and education can d. Punjab and Sind Bank:
always be a plus point to run a business. P&S Bank Udyogini Scheme: Targets micro and small scale
manufacturing units; the retail sector; the agriculture sector,
To conclude, government should bring in more and among others
better facilities and schemes to motivate women to
engage in small scale businesses.Right efforts from all e. Oriental Bank of Commerce:
areas can be a key factor for the development of women
entrepreneur which leads to their active participation Scheme for Professional & Self-Employed Women:
and knowledge in business activities. Provides term loans for the purchase of fixed assets;
apart from working capita.l
5. India's private and state-run banks have several Scheme for Beauty Parlors / Boutiques / Saloons
schemes targeting women entrepreneurs. This and Tailoring: Provides ‘easy, timely and
article lists 16 schemes from nine banks, sourced convenient access’ to institutional credit.
from SIDBI’s entrepreneurship: Oriented Mahila Vikas Yojana: Provides need
based credit needs for women entrepreneurs.
a. State Bank of Mysore:
Stree Shakthi Package for Women Entrepreneurs:
Financial assistance is earmarked for enterprises where f. State Bank of Travancore:
a woman owns a majority stake, which is over and Mahila Vikas Scheme: Provide term loans / working
above 51percent equity in the firm. Women capital to units promoted by women entrepreneurs. The
entrepreneurs who have participated in state-sponsored woman entrepreneur must own a majority stake and the
EDPs or programs co-sponsored / sponsored by SBM half the employees have to be women
are eligible to apply for financial assistance.
g. Dena Bank
b. State Bank of Hyderabad Dena Shakti Scheme for Women Entrepreneurs: The
scheme covers agriculture and allied activities; small
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 792
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Government can also play a key role in promoting innovative and imaginative scheme of activities aimed
flexibility regarding collateral. at skill development for income and employment
Financial institutions must recognize the potential generation in different sectors. Women entrepreneurs
of women entrepreneurs and develop special have tasted adequate amount of success in carving a
services for them. position for themselves. Nevertheless, the myth that
Proper technical education to the women. financing a woman run business is a big risk still
persists. They are still under the notion that women
b. Improvement of identification mechanism of entrepreneurs can never handle pressure as great as men
newwomen entrepreneurs. and this would eventually mean only failure. It is only
when people come out of this legend will woman
Engaged organizations and agencies in EDPs entrepreneurs thrive and they would be able to
should co-ordinate their activities effectively. contribute to the economic development of the country
Assistance to project formulations. and come with equivalence with that of their male
Availability of adequate infrastructures to the counterparts.
women.
Free training facilities in the field of enterprises. References:
Avoid delaying attitudes by different EDP
institutions. 1) Charumathi, B.(1991): Women Entrepreneur’s
Better co-ordination between financial institutions Challenges and Prospects, Head Department of
and women entrepreneurs. Management, Karpagarn Arts and Science College
For developing a proper co-ordination between Affiliated to Bharthiar University, Coimbatore,
executives of promotional agencies and viable 1991, p.57.
women entrepreneurs. 2) Pal, M.S. (1997): Women Entrepreneurship and the
Adequate data regarding market situation should be Need for Financial Sector Reform. Economic
made available to the women entrepreneurs. Reform Today, September, 1997, 8, p.26-29.
Adequate follow- up support to the women 3) Gupta, C.G. and Srinivasan, N.P. (1997): Women
entrepreneurs. Entrepreneurship and the Need for Financial Sector
Reform. Economic Reform Today, September,
The task ahead for EDP institutions is to communicate 1997, 8, p.30.
the noble message of women entrepreneurship 4) Kumar, R.V. (1998): “Entrepreneurship
development in most effective manner among the Development Programme among Women”. Centre
women aspirants of all regions and all classes. In the for Entrepreneurship Developments, 2000, 24 (5),
last, to ensure women entrepreneurship development, p.5.
integrated efforts by various organization and agencies 5) Coleman, T.P. (2000): The Federal Reserve Board
are needed so that necessary assistance should be and the United States Small Business
provided to prospective as well as existing women Administration.
entrepreneurship. 6) Bindya, B. (2001): Women Entrepreneurship:
Challenges and Achievements, NISIET, p.121.
7) Mohanty, A. (2008): Women in Management of
Micro Enterprises: Problems and Prospects, Journal
Conclusion: of Social Science, 2004, 8 (3), p. 245-251.
Entrepreneurship as an factor of economic development 8) Parihar, P. and Singh, S.P. (2006): Constraints
is now recognized. A number of financial institutions Faced by Women Entrepreneurs in Jammu. Journal
provide support to women entrepreneurs for their of Extension Education, January- May p.1-2.
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 796