A Project on Financing Women Entrepreneur in India with specific reference to NCR

(Submitted in partial fulfillment of the requirement of Master of Business Administration, Distance Education Guru Jambheshwar University of Science & Technology , Hisar)

Research Supervisor:
Ajit Kumar Assistance Professor NSB School of Business

Submitted by :
Anamika Goyal Enrolment No. 09061148181 Specialization: Finance

Session 2009-11

Directorate of Distance Education Guru Jambheshwar University of Science & Technology Hisar (India)

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CERTIFICATE
This is to certify that Ms.Anamika Goyal, Enrolment No. 09061148181 has completed under my supervision her Research Project Report on Financing Women Entrepreneur in India with specific reference to NCR in the specialization area Finance.

The work embodied in this report is original and is of the standard expected of an MBA student and has not been submitted in part or full to this or any other university for the award of any degree or diploma. She has completed all requirements of guidelines for the Research Project Report and the work is fit for evaluation.

Signature of Supervisor/Guide (with SEAL)

NAME :

DESIGNATION :

ORGANIATION :

Forwarded by Head/Director of Study Centre (with signature, Name & SEAL)

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DECLARATION

This is to certify that the project Report entitled Financing Women Entrepreneur in India with specific reference to NCR is my original work and this has not been submitted in part or full to this or any other university/institution for the award of any degree or diploma.

Signature of candidate NAME : ENROLMENT NO.: SPECILIZATION : SESSION :

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ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at the right time. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provided her with the necessary recourses and atmosphere conductive for healthy learning and training. The researcher expresses her sincere gratitude to Mrs Rita Sachdeva (Director) and Mr Nikhil Kulsheshtra (HOD-Academics, NSB) for their inspiration and helpful attitude. At the outset the researcher would like to take this opportunity to gratefully acknowledge the very kind and patient guidance that the researcher has received from her project guide Mr Ajit Kumar (Assistant Professor), NSB. Without hid critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. The researcher would like to extend her gratitude, to all the faculty members, NSB for their moral support & guidance required for the realization of this project report. Lastly, the researcher would like to thank her colleagues who gave her fruitful information to finish her project.

Anamika Goyal

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EXECUTIVE SUMMARY:

Why Entrepreneurship? Given the increasing significance and visible impact of entrepreneurship on Indias growth and development, it is considered quaint essential for fast and smooth economic growth of the nation.

Why Women Entrepreneurship? Women constitute approximately 50 percent of the population. This population has enormous unused potential that can be utilized to give better prospects of economic growth and sense of equality in the nation. Also, womens thought process is quite different from mens which can lead to creative and innovative business ideas that can turn up to even bigger success in the endeavors of our nation. It can help us distinguishing our nation in positive manner.

Why Financing Women Entrepreneurs is critical in India? Financing an organization is difficult for any person. When it comes to women, it becomes even more complicated as she cannot ask for money to her parents or/and in-laws. If her husband does not support her, she is left with no other option then to leave the idea of being an Entrepreneur. This situation is arising with every 3rd women in the nation. Providing financial and other support to the group has become necessary to uplift them in the society and to provide them with equal rights.
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MethodologyThe methodology used in preparing this project report is based on the questionnaire filled by 100 women who are either indulged in entrepreneurship or willing to indulge her in the same in the near future (Mostly in NCR Region). Data is also studied and collected from the secondary sources like newspaper, magazine, internet etc.

Key Findings: Nation gets successfully developed when the whole population gets equal rights irrespective of the gender difference. It is necessary to utilize the 39% of unused potential that lies in the Indian Women. To ensure the maximum growth, it is required to aid women with financial help and other requirements as per the industry. It is viewed that this group is continuously undervalued and they are nor given with proper opportunities. Providing them opportunity to prove themselves against men is the need of the time. There are various government and non-government organizations that are lending them their helping hands and are very easy to assess. Help include coaching, education, training, financing, infrastructural, providing material help etc.

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TABLE OF CONTENTS
1.Introduction Entrepreneurship Women Entrepreneurship Women Entrepreneurship in India

2. Rationale behind the study

3.Literature reviews Conceptual Rewiew Impirical Review

4. Problem Formulation Problem of getting Finance Scarcity of Raw Materials Male dominated Society Lack of Education Market Oriented Risk Motivational Factors. Lack of Confidence Training Programs

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5. Objectives of the study 6. Research Methodology Sources of Data Primary Source Secondary Source

7. Research Design Descriptive Research Design

8. Analysis and Interpretation of data Loans and other finance options for women entrepreneurs: NGOs and Self Help Groups providing Help to Women Entrepreneurs: Some Microfinance options available to under-privileged women: Details of some of the MFIs which help upgrade Women Entrepreneurs by providing Financial help Loans offered by Public Sector Banks to Women: Government Financing Schemes: Schemes for the development and promotion of women entrepreneurs

9. Findings from the study

10. Recommendations

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11. Bibliography

12. Appendix Successful Leading Business Women in India : The 21 Leading Businesswomen in India Women Entrepreneurship in India-2008-09 Proposed Questionnaire

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INTRODUCTION:

Entrepreneurship:
The one who innovates and implement creative ideas in business is known as an Entrepreneur. In other words we can say- an Entrepreneur implements new process or combination of processes to produce same/distinguished products and therefore open the doors of opportunities to others. Entrepreneur not only innovates and creates but also gives employment opportunities to the unemployed and therefore contributes to the nations growth directly. Entrepreneur is a catalyst who fastens the growth process of the country.

Women Entrepreneurship:

Women when take the responsibility to work independently, undertake the responsibility of nation, being a citizen, to upgrade it with the men companions. There are various women who have written their names in golden letters by being a successful Entrepreneur. They are the benchmarks for the struggling and willing women entrepreneurs. In India, Indra Nooyi is well famed name. She is American Executive of Indian origin who has successfully running PepsiCo holding position of CEO. Shehnaz Hussain is adorned for her beauty products and she earned fame for the same. Ekta
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kapoor is a sizzling star in cine industry who has introduced the concept of daily soaps.

Women Entrepreneurship in India:

India has traditionally been a patriarchal society with low participation of women in the economy. But the fact remains that women represent nearly 50 percent of the total population, and it is crucial to encourage womens role in the economy at every level. At present womens entrepreneurial role is limited in the large scale industries and technology based businesses. But even in small scale industries, the womens participation is very low. As per the third all-India census of Small Scale Industries, only 10.11% of the micro and small enterprises were owned by women, and only 9.46% of them were managed by women. Women have a very prominent role to play in the society. Women have proved themselves to go hand in hand with men when we talk of businesses. Women Entrepreneurs have been recognized as an important untapped source of Economic growth who can add to the development of the nation if given equal opportunities as given to men. Women are visage with specific obstacles and 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 and entering contracts. To improve position of women in the current society, there is a need of increased participation from their side. There is a variety of role played by Women Entrepreneurs that has to be considered in economic development of the nation. Women Entrepreneurs create new jobs for themselves as well as for the other wage earners. They not only
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handle their home and social issues but also tackle the organizational issues smartly. They also cope with the unfortunate discriminating against Women possibility to become Women Entrepreneurs. Therefore, ratio of Women Entrepreneurs in the market is very less. This unfortunate market need to be addressed by policy makers so that the economic potential of this underestimated group can be utilized efficiently. Women Entrepreneurship has been largely neglected both in society in general and in the society sciences. They have lower participation ratios in men driven industries because of inequality that exists in the market. Also, their field of work is segregated due to the underestimation of their potential. Market has made a psychological boundary for Women Entrepreneurs by considering them as a weak and less able workforce. The industries (primarily retail, education and other service industries) dominated by Women are often perceived as being less important to economic development and growth than men dominated high technology and manufacturing. This research project deals with how Women can get the financing for their own entrepreneurship and with other aids available to this underestimated group of workforce who has the potential to lead and direct the commercial market effectively.

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RATIONALE OF THE TOPIC:

Women in the society have always got neglected and got disparaged by the family and society in regard to work. Women did not get chance to live their dream, to take their own stand, to earn respect and name, to stand juxtapose to the men. Women, in most of the cases, do not get any emotional, mental and financial support from their parents, husband, in-laws etc to start their own enterprise. Women willing to work, then leave the hopes to live the dream. They are not aware of the financial and other support provided by government and other organizations which can make it happen for them to live their life at their own will and to stand and make their name in the market just as men do. To make them aware of all the facilities available to Women to uplift them in the society, I have chosen this topic. By reading this report thoroughly, Women will have a great knowledge for establishing their own enterprise or organization. They can assess financial and other available support easily with the help of this study. In this attempt to uplift Women group and to develop economy with the title of equality of gender, my findings are given in this report.

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LITERATURE REWIEWS:

Once the area of interest is selected then the researcher should undertake extensive literature survey connected with the problem or the topic of interest. For this problem, the abstracting and indexing journals and published or unpublished bibliographic are the first place to go to. Academic journals, conference proceedings, government reports, books etc must be tapped depending upon nature of problem.

Conceptual literature:-

Conceptual literature is that which relates with concepts and theories. Help from different books should be taken for different concepts and theories.

Empirical literature:-

Empirical literature consists of study made by other in the same field. The published data in newspapers, books & magazines is available for discussion. Such as:

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 Newspapers Journals Case Studies Websites

1. Coaching Women Entrepreneurs in India, Rajni Agarwal (President, Federation of Indian Women Entrepreneurs):

Women who wish to be an Entrepreneur have some issues other than financial help. It includes lack of knowledge, planning, confidence, information and decision making ability. Other includes legal/non-legal formalities to be done, getting registration done, terms and conditions for opening private/partnership firm etc. Women before starting their own organization need to be counseled with every relevant information and knowledge that can help her take flights off. 2. Women Entrepreneurship and Economic Development By Sanjay Tiwari, Anshuja Tiwari:

The way he defined the role of Women Entrepreneurs in developing and shaping an economy is speechless. Women Empowerment is full of challenges and constraints but essential to become stronger economy as women is the nuclei of the nation carrying positive ions and thus need to be strong to make a strong atom.

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3. Problem and prospects of women entrepreneur in India-SEDME

4. Is the Women Entrepreneur empowered in India?-by Saleem S:

Women is not empowered to select school, college, course of education, spouse, field of interest; she is not empowered to share her view, to take her decisions, to go out freely. Then how women could be able to know as many things as a man knows. You learn when you go out and communicate with colleagues/companions. Women have little chances to do so.

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PROBLEM FORMULATION:

Problems of Women Entrepreneurs Women Entrepreneurs encounter different types of problems Major problems are:

1. Problem of getting Finance

Finance is prerequisite for any enterprise (be it a small, medium or big enterprise). However women entrepreneurs suffer from shortage of finance on two counts. Firstly women generally do not have property on their names which can be utilized to get funds. Secondly the banks consider women less credit-worthy and discourage women barrowers on belief that they can at any time leave their business. It creates a problem in front of women entrepreneurs which hold them back in entering or continuing her task.

2. Scarcity of Raw Materials

Most of the women enterprises are plagued by the scarcity of raw materials and necessary inputs. Added to this are high prices of raw materials, on the one hand and getting raw material at the minimum of discount on the other. The failure of many co-operatives in 1971 engaged in based making is example how the scarcity of raw material sounds the death knell of enterprises run by women.

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3. Male dominated Society.

Human rights are not equal anywhere in India. The constitution of India speaks of equality between sexes. But in practice women are looked upon as abla i.e. Weak in all respects. In male dominated Indian society, women are not treated equal to men. This turn serves as a barrier to women entry into business. Every time a woman tries to enter into a business, she get disparaged by male counterparts on various grounds and is given with different kinds of sympathy and/or mental pressure to leave the thoughts of doing so.

4. Lack of Education
In India around 60% of women are still illiterate. Illiteracy is the root cause of socio- economic problem. Due to the lack of education women are not aware of business, technology and market knowledge. This is also a reason why Indian women are unaware of various opportunities provided by varied organizations. Even this is the root cause which makes women feel low and weak as compared to men. An educated Woman see herself differently as she has got some vision, mission, aim in life which pushes her to attain her goals of life. Educated women know how to fight for the rights. But alas! Uneducated (majority) of women even dont know about the human rights and therefore live a life of slave to her husband. Also lack of education causes low achievement motivation among women.

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5. Market Oriented Risk

Women in general are restricted to visit markets frequently. They normally have lesser assess to market and/or market conditions and therefore have little or no knowledge about the frequently changing market. A number of women have to face the challenges of market because of stiff competition. Many business women find it difficult to capture the market and compete with their product. They are not fully aware of the changing market conditions.

6. Motivational Factors.
Successful business women can be self motivated through setting up a mind and taking up risk and accepting social responsibilities on shoulder. The other factors such as family support, social aids, government policies, legal support, financial assistance etc. are also important to set up business. These factors are available in short to women in India.

7. Lack of Confidence
Women are generally low on confidence in their strength and competence. Women are emotional creature of the nature that strongly needs emotional and mental support from family/spouse and society. When the family members and the society are reluctant to stand beside their entrepreneurial growth, it becomes tough for them to stand alone confidently and in most of the cases, they quit.

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8. Training Programs
Training programs are essential to new rural and young entrepreneurs who wish to set up a small and medium scale unit, especially in case of women entrepreneurs as they have had little assess to market and little knowledge about the products. Training programs are required to enrich the skill and potential of women entrepreneur.

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OBJECTIVES OF THE STUDY:

Various Objectives for conducting the Research and Analysis are listed as under: 1. Access the Potential Women Entrepreneurs who could like to go for it by

analyzing 100 questionnaires.

2. phase.

Access what are the major problems they are finding in starting funding

3.

Study what the major steps are taken by Indian FIs to resolve problems.

4.

Satisfaction level of current Women Entrepreneurs who have taken funding

from FIs in India.

5.

Finally to draw the various conclusion and recommendations on the basis of

the study conducted.

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SCOPE OF THE STUDY:

This Project would help a major untapped sector of Women to get funding and aiding facilities to open up their own enterprise. Entrepreneurship development is already a need of time as unemployment is high and unemployed are increasing rapidly with ever increasing population of India. This Study would help unemployed to get employment. The study would help to make Women Self-dependent as in case of developed Nations. It would help them to live high Status life and enjoy equality with Males.

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RESEARCH METHODOLOGY:

Research comprise defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research.

SOURCES OF DATA
Data is collected from primary as well as secondary source. For primary data customer were personally intervened through Questionnaires and Interviews and for secondary data- Online Research was the major source.

METHODOLOGY
The methodology adopted in conducting this survey was quite simple. First there was collection of data from various sources including personal interview. Then after scanning and properly analyzing and interpreting the information available on hand, a final report was prepared.

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1. Primary Data: Primary data was collected from the sample by a selfadministered questionnaire in presence of the interviewer. 2. Secondary Data: The chief sources of secondary data were online material and magazines.

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RESEARCH DESIGN:

Type of Research: - Descriptive research

Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. The regular interaction with the Customers and the Line Managers revealed about the various strategies involved in performing business activities and gathering data using various techniques and software applications Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.

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RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.

SAMPLE SIZE:
The survey is conducted among 100 respondents (Females). Simple statistical tools have been used in the present study to analyze and interpret the data collected from the field. The study has used percentile method and the data are presented in the form of diagrams.

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ANALYSIS AND INTERPRETATION OF DATA:

Loans and other finance options for women entrepreneurs:

Many women entrepreneurs begin their businesses using their own seed money and after a successful run they need to get financial help, in order to make their ventures grow and prosper.

There are many helping hands available in the form of NGOs and Self-Help Groups, Microfinance Institutions, Public Sector Banks, Government Finance Schemes, and Venture Capitalists, depending on the type of financial help required by the Entrepreneur. Many a time, women entrepreneurs are not aware of many of the avenues of finance available to them.

I have endeavored here to compile some information to assist women entrepreneurs.

A. NGOs and Self Help Groups providing Help to Women Entrepreneurs: 1. Seruds:
Seruds is helping dalit women by providing material aids to start earning their livelihood.
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2.

The hunger project:

The Hunger Project firmly believes that empowering women to be key change agents is an essential element to achieving the end of hunger and poverty. By providing women food farmers easy access to credit, adequate training and instilling in them the importance of saving, THP's Microfinance Program enables women to engage in incomegenerating activities to increase their incomes and invest in their families and communities. In India, Women's Leadership Workshop has empowered 78,000 women elected to local councils to be effective change agents in their villages. They are forming district- and state-wide federations to ensure that their voices are heard at top levels of government.

3.

UMEED:
'Umeed' has successfully formed over 350 Self Help Groups - 'Umeed Mahila Manch' that consist of 15 - 20 women from similar economic strata from the same village. Each woman contributes a 'like' amount every month into the group's bank account, from which members can take loans repayable at minimal interest rates. All this is supervised by Umeed's Social Organisers, who are educated and motivated women belonging to the area. Self Help Groups have evolved both as a viable alternative and a supplement to existing credit facilities. These are small, voluntary, economically homogeneous groups of women who share a single aim: they put savings into a common fund, which operate like mini banks, loaning money to group members at low interest rates following unanimous group decisions. Each group has a formal account with the bank and they appoint their representatives to manage the accounts under the guidance of the Umeed

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team. Umeed seeks to foster an ethos of saving and also encourage the underprivileged to engage in viable income generating activities that will empower rural women. The Women of the Self Help Groups can also avail bank loans from their link banks for any business venture.

To empower rural women by making them financially independent, Umeed undertakes programmes that train women to become individual entrepreneurs by providing skills development training:

Umeed has trained 1,000 women in bag making, soap and candle making, pickles and preserves, chalk making and bookbinding. Already 30% of the women have started their individual enterprises and have become self-employed.

Over 6,000 girls from almost 350 villages have been trained in cutting, stitching, and embroidery and crochet work at Umeed stitching centers. 55 % of the beneficiaries are already earning a steady livelihood by stitching clothes in their villages.

'Umeed' has taken upon itself to encourage rural women to become entrepreneurs by taking up commercial activities by leveraging their inherent and acquired skills and helping them to market their products.

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B. Some Microfinance options available to under-privileged women:

India being one of the countries with the largest number of microfinance institutions, every state has at least one or two institutions for empowering women with microfinance. List of some of the MFIs:

1. SKS Microfinance Ltd (SKSMPL)

2 Spandana Sphoorty Financial Ltd (SSFL) 3 Share Microfin Limited (SML) 4 Asmitha Microfin Ltd (AML) 5 Shri Kshetra Dharmasthala Rural Development Project(SKDRDP) 6 Bhartiya Samruddhi Finance Limited (BSFL) 7 Bandhan Society 8 Cashpor Micro Credit (CMC) 9 Grama Vidiyal Micro Finance Pvt Ltd (GVMFL) 10 Grameen FinancialServices Pvt Ltd (GFSPL) 11 Madura Micro Finance Ltd (MMFL) 12 BSS Microfinance Bangalore Pvt Ltd (BMPL) 13 Equitas Micro Finance India P Ltd (Equitas) 14 Bandhan Financial Services Pvt Ltd (BFSPL) 15 Sarvodaya Nano Finance Ltd (SNFL)
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16 BWDA Finance Limited (BFL) 17 Ujjivan FinancialServices Pvt Ltd (UFSPL) 18 Future Financial Services ChittoorLtd (FFSL) 19 ESAF Microfinance & Investments Pvt. Ltd (EMFIL) 20 S.M.I.L.E Microfinance Limited 21 SWAWS Credit Corporation India Pvt Ltd (SCCI) 22 Sanghamithra Rural Financial Services (SRFS) 23 Saadhana Microfin 24 Gram Utthan Kendrapara, 25 Rashtriya Seva Samithi (RASS) 26 Sahara Utsarga Welfare Society (SUWS) 27 Sonata Finance Pvt Ltd (Sonata) 28 Rashtriya Gramin Vikas Nidhi 29 Arohan Financial Services Ltd (AFSL) 30 Janalakshmi Financial Services Pvt Ltd (JFSPL) 31 Annapurna Financial Services Pvt Ltd 32 Hand in Hand (HiH) 33 Payakaraopeta Womens Mutually Aided Co-operative Thrift and Credit Society (PWMACTS) 34 Aadarsha Welfare Society(AWS) 35 Adhikar 36 Village Financial Services Pvt Ltd (VFSPL) 37 Sahara Uttarayan
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38 RORES Micro Entrepreneur Development Trust(RMEDT) 39 Centre for Rural Social Action (CReSA) 40 Indur Intideepam Federation Ltd (IIMF) 41 Welfare Organisation for Multipurpose Mass Awareness Network (WOMAN) 42 Pragathi Mutually Aided Cooperative Credit and Marketing Federation Ltd(PMACS) 43 Indian Association for Savings and Credit(IASC) 44 Sewa Mutually Aided Cooperative Thrift Societies Federation Ltd (Sewa) 45 Initiatives for Development Bangalore, Foundation (IDF) 46 Gandhi Smaraka Grama Seva Kendram (GSGSK) 47 Swayamshree Micro Credit Services (SMCS) 48 ASOMI 49 Janodaya Trust 50 Community Development Centre (CDC)

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Details of some of the MFIs which help upgrade Women Entrepreneurs by providing Financial help 1. Asmitha
It povides rural poor women access to financial resources in the form of collateral free small loans for income generation and livelihood promotion. This enables them to set-off small start up business, which soon translates into adequate nutrition, medical aid and education. With increased businesses, these low-income women become economic agents intrinsic to development rather than simply homemakers.

2. Bandhan MF
Bandhan was set up to address the dual objective of poverty alleviation and women empowerment.The microfinance activities are carried on by Bandhan Financial Services Pvt. Ltd. (BFSPL), incorporated under the Companies Act, 1956 and also registered as a Non Banking Financial Company (NBFC) with the Reserve Bank of India (RBI).That apart, Bandhan is also engaged in development work through its not for profit entity.

3.

Cashpor India
Mission is to identify and motivate poor women in the rural areas and to deliver financial services to them in an honest, timely and efficient manner so that our Vision is realized and CASHPOR itself becomes a financially sustainable micro finance institution for the poor.

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4.

Micro Credit India

Microcredit Foundation of India (MFI) is a not-for-profit Section 25 Company in Tamil Nadu dedicated to promoting entrepreneurship and community level action in rural areas as a means to sustainable economic prosperity. Today MFI works primarily with women. Through its field staff, MFI helps them form Self Help Groups (SHGs), trains them in good financial practice, facilitates access to microcredit loans, equips them with business skills and facilitates access to new markets for their products.

5.

New Life
New Life designs projects based on survey of the socio,economic problems of the project area and support the poor, abused and abandoned children and women by executing the projects with a defined goals/objectives. The current projects of New Life includes orphanages for children of incarcerated parents,Save children from Child Labour,Ensuring primary education for the rural children in India,Early learning centres for children of vulnerable community groups,Read to Lead Project, Taking care of the medical needs of Physically handicapped and Mentally retarded children.

6.

RangDe
Rang Des mission is to make microcredit accessible to every low income household by lowering loan interest rates through innovative means.Rang De is committed to enabling individuals to become social investors through a transparent platform. While strive to improve Rangde.org as an interface,

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we work extensively with our field partners to ensure that we do not compromise on our vision making credit available at affordable rates.

7.

Saadhana
SAADHANA is a non- profit organization established in the year 2001 to reach out to the urban and rural poor women with the specific mandate to catalyze the Endeavor of the Poor for Self-Sufficiency.

8.

SKS IndiaLaunched in 1998, SKS Microfinance is one of the fastest growing microfinance organizations in the world, having provided over US $ 1.8 Billion (9,129 Crore) and has maintained loans outstanding of US $ 605 Million(Rs.2,937 Crore) in loans to 5,013,219 women members in poor regions of India. Borrowers take loans for a range of income-generating activities, including livestock, agriculture, trade (such as vegetable vending), production (from basket weaving to pottery) and new age businesses (Beauty Parlor to photography). SKS also offers interest-free loans for emergencies as well as life insurance to its members. Its NGO wing SKS foundation runs the Ultra Poor Program. SKS currently has microfinance branches in 19 states across India. SKS aims to reach members 15 million by 2012. In the last year alone, SKS Microfinance has achieved nearly 170 % growth, with 99% on-time repayment rate

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9.

Whole Planet Foundation

Whole Planet Foundation, a private, nonprofit organization established by Whole Foods Market, provides grants to microfinance institutions in Latin America, Africa and Asia who in turn develop and offer microenterprise loan programs, training and other financial services to the self-employed poor

C. Loans offered by Public Sector Banks to Women:

Vijaya Bank : Name of the loan : V Mangala

This is a term loan for working women. It helps to purchase consumer items jewellery two wheelers and cars. The amount of the loan is 3 lakhs (maximum) or amount equal to 15 months of the gross salary. The attraction is that the interest rate is one percent less than the usual lending rate. The incentives offered are free credit card facility (no charge for subscription) & an accident death insurance which covers the loan amount. Details are available on (http:// www.vijayabank.com )

Dena Bank:

This bank has special schemes to finance women entrepreneurs. Some incentives offered are 5% concession in the interest rate, no processing fee, easy payment
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options and no penalty for repayment. The loan amount is up to 5 lakhs for women entrepreneurs who are professionals. The loan is also extended to artists, small and medium cottage industries run by women Details are available on (http://www.denabank.com/)

State Bank of India: Name of the loan: Stree Shakti Package

This is a special offer of loans to women entrepreneurs. It gives concessions in promoters margin and rate of interest .The aim of the scheme is to inspire women to start new ventures. No security is needed for loans up to 5 lakhs for industrial units. Details are available on (http:// www.statebankofindia.com/)

Bank of India: Name of the loan: Priyadarshini

This is a facility offered to women to set up small, village and cottage industries. The loan covers the payment for machinery. There is a one percent cut in the interest rate for loans above 2 lakhs. Details are available on (http:// www.bankofindia.com/)

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Canara Bank: Name of the loan: Can Mahila

This is a loan to meet the financial needs of women, who may be house wives, working women or self-employed women. It can be used to buy house hold articles, gold, jewellery computers etc. Women between the ages of 18 to 55 can avail this loan. For the salaried and self employed as well as for women with a family income of 1.5 lakhs, the loan limit is 50, 000 INR. Details are available on (http:// www.canarabank.in)

Union Bank of India: Name of the loan: VIKLANG MAHILA VIKAS YOJANA

This is a special scheme for handicapped women for starting their own ventures. Physically handicapped women are identified and after providing vocational training according to their aptitude, financial assistance of 25,000 is offered to start the new venture. Details are available on (http:// www.unionbankofindia.co.in )

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UCO Bank: Name of the loan: Nari Shakti

This scheme is to provide financial assistance to salaried women .Concession is offered on interest and the repayment is in 5years in equated installments. Details are available on (http:// www.ucobank.com)

Central Bank of India: Name of the loan: Cent Kalyani

This scheme is specially introduced to offer financial assistance to Women Entrepreneurs for economic pursuits in Industry, Agricultural and Allied Activities, Business or Profession. The Bank with a network of branches spread throughout the country welcomes women entrepreneurs to avail financial assistance for pursuing vocations of their choice.

Small Business : For entrepreneurs who intend to provide services such as a small lunch-home/ canteen, mobile restaurant, circulating library etc.

Professional and Self- Employed : Entrepreneurs who are specially qualified/skilled and experienced like Doctors, Chartered Accountants, Engineers or trained in Art or Craft etc.

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Retail Trade : For entrepreneurs who intend to engage in retail trading of various commodities.

Village and Cottage/Tiny Industries : For entrepreneurs who are engaged in manufacturing, processing, preservation and services such as Handloom, Weaving Handicraft, Food-Processing, Garment making etc. in villages and small towns with a population not exceeding 50,000/utilizing locally available resources/skills.

Small Scale Industries : To start a unit engaged in manufacture, processing or preservation of goods.

Agriculture & Allied Activities : For women entrepreneurs who are engaged in agricultural and allied activities, such as raising of crops, floriculture, fisheries, bee-keeping, nursery, sericulture etc. and also trading in agricultural products.

Government Sponsored Programmes : Apart from the above schemes, women entrepreneurs are also financed under the various Government Sponsored Programmes where Capital subsidies are available. Other terms and conditions for the above facilities under Cent Kalyani i.e. quantum
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of loan, margin, interest, security, repayment, documentation etc. are as applicable under their respective schemes. Details are available on (http://www.centralbankofindia.co.in/)

Oriental Bank of Commerce: Name of the loan: Orient Mahila Vikas Yojana

In this special scheme for the benefit of woman entrepreneurs, the loan amount offered is between 2 and 10 lakhs, with a 2 percent concession in interest. Loans above 10 lakhs are also offered at 1 percent concession. Enterprises consisting of all units managed by women and where they have a share of 51 percent are eligible for this loan. In case of term loans, the repayment period is up to seven years with a maximum grace period of 12 months depending on the nature of the activity. Details are available on (http:// obcindia.co.in/)

ICICI Bank: Name of the loan: Women's account

This is a scheme formulated by the new generation bank for women. Under the scheme any woman, with any relative having an account in the bank can open an account without any documentation. Details are available on (http://www.icicibank.com)

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The best thing to do would be to walk into your own bank where you feel comfortable and people recognize you, and find out what loans they can offer you for entrepreneurship. Then do a thorough comparative study of the schemes offered by other banks and institutions before you make a decision on which loan to avail of.

D. Government Financing Schemes: Schemes for the development and promotion of women entrepreneurs

1. TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT SCHEME FOR WOMEN (TREAD) With a view to encourage women in setting up their own ventures, government launched a Scheme, namely, Trade Related Entrepreneurship Assistance and Development (TREAD) during the 11th Plan. The scheme envisaged economic empowerment of women through the development of their entrepreneurial skills in non-farm activities. There are three major components of the scheme;

(i)

GoI grant upto 30% of the total project cost to the NonGovernment Organisations (NGOs) for promoting entrepreneurship among women. The remaining 70% of the project cost is financed by the lending agency as loan for undertaking activities as envisaged in the project.

(ii)

GoI grant upto Rs.1 lakh per programme to training institutions / NGOs for imparting training to the women entrepreneurs.
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(iii)

Need-based GoI grants upto Rs.5 lakh to National Entrepreneurship Development Institutions and any other institutions of repute for undertaking field surveys, research studies, evaluation studies, designing of training modules etc.

Operationalisation of the Scheme

The scheme envisages that Women Associations/NGOs/SHGs should prepare composite bankable proposals for a group of women entrepreneurs, and submitted to the bank, which are signatories to participate in the scheme, namely, Syndicate Bank, State Bank of India, Canara Bank and Allahabad Bank. A copy of the proposal submitted to the bank should be endorsed to DC (MSME). Bank examines the proposal and issues approval. On the basis of the approval proposal considered by M/o MSME and 30% of the loan amount is sanctioned as grant and made available to the bank.

2. MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP)

a) Existing Clusters: A cluster is defined as a group of enterprises, normally 20 or more producing same/similar products/services. The Cluster Development Programme (CDP) being implemented envisages diagnostic study of
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identified clusters of traditional skill-based MSEs to identify appropriate technologies and their providers and to facilitate adoption of available technology meeting the specific needs of the end users. The Cluster Development aims at enhanced competitiveness, technology improvement, adoption of best manufacturing practices, marketing of products, employment generation etc. The scheme provides assistance for capacity building, common facilities, marketing etc. the delivery, assimilation and diffusion of the identified technology from its producers to the recipient user/cluster of small enterprises.

Type of interventions I) Soft Interventions capacity building activities in the cluster where no fixed assets is acquired or formed. Soft interventions, inter alia, include

i. Diagnostic study ii. Forming association-Trust building & Developing Identity

Operationalisation of the Scheme The scheme envisages that Women Associations/NGOs/SHGs should prepare composite bankable proposals for a group of women entrepreneurs, and submitted to the bank, which are signatories to participate in the scheme, namely, Syndicate Bank, State Bank of India, Canara Bank and Allahabad Bank. A copy of the proposal submitted to the bank should be endorsed to DC (MSME). Bank examines the proposal and issues approval. On the basis of the approval proposal considered by M/o MSME and 30% of the loan amount is sanctioned as grant and made available to the bank.
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II) Hard invention:

Hard intervention is entitled to the highest level of assistance from the MSME Ministry i.e. upto 90% of the Project Cost. This covers the cost of machinery, plant, equipment, laboratory and other tangible assets. The balance 10% of the project cost would have to be contributed by the SPV or by the State government or the Local government. But land and building are not covered under this Project Cost and will have to be provided by the SPVs of the Womens Enterprises Clusters or by the State government or by some other agency.

III) Infrastructure Assistance

Infrastructure assistance includes the construction of basic amenities like power, approach roads, drainage, water supply and storage and the like. MSME Ministrys assistance for this component is presently limited to 40% of the total cost though we are trying to increase this level. Only one element of Infrastructure Assistance i.e. Display or Exhibition Centres (which could consist of show-rooms with attached stores) are entitled to a higher level of assistance in so far as Womens Clusters are concerned, i.e. 90%. This Display/Exhibition Centre could be built by the Womens Clusters, SPV within the Cluster, or near the Cluster or even in adjoining Markets of Towns as long as they exhibit and market the products manufactured by the Womens Clusters.

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b) Creation of physical infrastructure:

This Ministry implemented the IID Scheme to provide developed sites with infrastructural facilities like power distribution network, water, telecommunications, drainage and pollution control facilities, roads, exhibition/display centres, raw materials, storage and marketing outlets, common service facilities and technological back-up services, etc. This scheme has been subsumed in the MSME-Cluster Development Programme. All the features of IID Scheme have been retained. To create physical infrastructure exclusively for women enterprises central grant of 40% of the project cost subject to a maximum of Rs.2 crore is available. The Ministry of MSME is making efforts to enhance the quantum of grant to 80% in a project of Rs.10 crore. Operationalisation of the Scheme

i) A Cluster Development Executive (CDL) is required for executing and monitoring all soft interventions in a cluster. Normally, a CDE can be a DIC Officer/MSME-DI officer/retired expert or even hired person from NonGovernment Sector.

ii) The hard interventions in a cluster and creation of physical infrastructure require to set up a users body/special purpose vehicle which could be society/trust/company to be formed by the cluster beneficiaries.

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3. CREDIT GUARANTEE FUND SCHEME

The Government introduced the Credit Guarantee Fund Scheme for Small Industries in May, 2000 with the objective of making available credit to SSI units, particularly tiny units, for loans up to Rs. 25 lakh without collateral/ third party guarantees. The Scheme is being operated by the Credit Guarantee Fund Trust for Small Industries (CGTSI) set up jointly by the Government of India and SIDBI. The Scheme provides for collateral free credit facility (term loan and / or working capital) extended by eligible lending institutions to new and existing SSI units/ Small Scale Service and Business (industry related) Enterprises (SSSBEs) including Information Technology and Software Industry up to Rs. 25 lakh per borrowing unit. In the case of women enterprises, the guarantee cover is up to 80% of the credit subject to maximum guarantee limit of Rs. 20 lakh. The member lending institutions (MLI) availing of guarantee from the Trust have to pay a one-time guarantee fee of 1.5% of the credit facility (comprising term loan and / or working capital) sanctioned by the lending institution to the borrower and annual service fee of 0.75% per annum on the amount of credit facility extended by the MLI, which is covered under the scheme.

Operationalisation of the Scheme

The entrepreneurs whose bank finance is approved by the lending bank may ask the bank to obtain guarantee from the Credit Guarantee Trust Fund. This facility is available online to the lending banks and clearance from the Trust is conveyed in a day or two.
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4. SUPPORT FOR ENTREPRENEURIAL AND MANAGERIAL DEVELOPMENT

MSME DIs regularly conduct EDPs/MDPs for existing and prospective entrepreneurs and charge fee for such courses. To encourage more entrepreneurs from among the SC/ST, women and physically challenged groups, it is proposed that such beneficiaries will not be charged any fees but, instead paid a stipend of Rs.500/- per capita per month. 50,000 entrepreneurs will be trained in IT, Fashion Technology, Catering, Agro & Food Processing, Pharmaceutical, biotechnology etc. through specialized courses run by MSME DIs. 20% of courses conducted by these Institutions shall be exclusively for women.

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5. EXHIBITIONS FOR WOMEN UNDER PROMOTIONAL PACKAGE FOR MICRO & SMALL ENTERPRISES

APPROVED BY CCEA UNDER MARKETING SUPPORT

DC (MSME) has formulated a scheme for women entrepreneurs to encourage Small & Micro manufacturing units owned by women in their efforts at tapping and developing overseas markets, to increase participation of representatives of small/micro manufacturing enterprises under SIDO stall at International Trade Fairs/Exhibitions, to enhance export from such units. Under this scheme participation of women entrepreneurs in 25 international exhibitions is envisaged during the 11th Plan.

For the year 2007-08 a good number of prominent women entrepreneur associations have been requested to sponsor their members for participation in 5 international exhibitions scheduled during the months of Jan.-March, 2008. An advertisement has also been released in this regard in daily newspaper. You will be happy to know that with a view to encourage women entrepreneurs to participate in the International Exhibitions it has been decided to:

i)provide rent free space in the exhibitions

ii) reimburse 100% economy class air fare for one representative

iii) reimburse shipping cost upto Rs.15,000/-

The overall ceiling shall however be Rs. 1.25 lac.

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FINDINGS FROM THE STUDY:

The following are the key strategies that can help to foster women entrepreneurship in India:

Promoting women entrepreneurs in micro enterprises

An increasingly large number of women in India are engaged in the informal economy and operating in the small scale sector, cottage industries, and micro enterprises. With proper governmental and societal support, these women can create sustainable, organized and growth-oriented enterprises with a vision.

Institutional and policy based support

Government policies and regulations regarding business and industry can be formulated with the intent to encourage women entrepreneurs. The first part of the approach must be to review the existing regulatory framework, and make necessary modifications. The second part should be to take vital steps to reduce the administrative hurdles especially for women entrepreneurs. The third part must be to include easy and subsidized financing for womens entrepreneurial projects.

Directing women entrepreneurs into high growth areas

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Another key part of the strategy must be to facilitate the entry of women entrepreneurs into areas where high growth is expected. Special incentives, tax rebates, duty cuts and subsidized land and machinery can be provided to encourage women in emerging sectors. Special recognitions and award can be instituted for women participating in such targeted industries. The government of India launched a scheme called Trade Related Entrepreneurship Assistance and Development Scheme for Women (TREAD) during the 11th five-year plan. This schemed envisioned economic empowerment of women through the development of their entrepreneurial skills in nonagricultural activities.

Higher education incentives for women from rural regions, advanced training programs for development of management skills among women, and setting up of polytechnics and industrial institutes for women are the key thrust areas to strengthen the womens entrepreneurial talent through education and training. Counselling in entrepreneurship through women oriented NGOs, cheap micro financing and bank support for new business projects launched by women entrepreneurs, and privileged infrastructural support such as priority land allotment and administrative approvals can also promote the cause of women entrepreneurs substantially. Private sector can also contribute in its own way to womens entrepreneurial participation in the economy. A leading example is the setting up of TiE Stree Shakti (TSS) with support from a premier group of NRI investors and Indian entrepreneurs in 2009. This organization is reaching out to women who run micro,
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medium, and large-scale enterprises across manufacturing, services and social sectors. It is a pan-India endeavour to recognize, award, and empower women entrepreneurs from different backgrounds.

A lot still remains to be done to improve the participation of Indian women entrepreneurs in the economy, with an aim to come at par with the womens participative role in the developed economies of the west. In the 21st century India where nuclear families are becoming popular, the dividing line between the roles of men and women is blurring. Women are equally keen to become active participants in the economy. Therefore, the role of women cannot remain confined to jobs, but they must also engage in employment generation and bring out their entrepreneurial talent. The womens family and the society have a key responsibility to support this shift in the womens economic profile.

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RECOMMENDATIONS:
Right efforts from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Following efforts can be taken into account for effective development of women entrepreneurs. 1. Removing human inequality from the nation must be the first step towards success.

2. Consider women as specific target group for all developmental programs. 3. Better educational facilities and schemes should be extended to women group as well. All the females should compulsorily join schools/ colleges for education. 4. Adequate training/ coaching programs on management/ entrepreneurial skills should be provided to women folk. 5. Organizations and society/ family should encourage women's participation in their own decision-making as per her will instead of taking forced decisions or following others decisions.

6. Vocational training should be extended to women community that enables them to understand the production process and production management.

7. Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops.

8. Training on professional competence and leadership skill to be extended to

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women entrepreneurs.

9. Training and counseling on a large scale of existing women entrepreneurs to remove psychological causes like lack of self-confidence and fear of success.

10. Counseling through the aid of committed NGOs, psychologists, managerial experts and technical personnel should be provided to existing and emerging women entrepreneurs.

11. Continuous monitoring and improvement of training programmers.

12. Activities in which women are trained should focus on their marketability and profitability. 13. Making provision of marketing and sales assistance from government part.

14. To encourage more passive women entrepreneurs the Women training programmed should be organized that taught to recognize her own psychological needs and express them.

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BIBLIOGRAPHY:
www.unwomen.org www.swwb.org www.womenentrepreneursgrowglobal.org www.wikipedia.org www.researchersworld.com www.paycheck.in www.youstory.in

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APPENDIX
Successful Leading Business Women in India The 21 Leading Businesswomen in India

1. Akhila Srinivasan, Managing Director, Shriram Investments Ltd 2. Chanda Kocchar, Executive Director, ICICI Bank

3. Ekta Kapoor ,Creative Director, Balaji Telefilms 4. Jyoit Naik, President, Lijjat Papad 5. Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon 6. Lalita D Gupte, Joint Managing Director, ICICI Bank 7. Naina Lal Kidwai ,Deputy CEO, HSBC 8. Preetha Reddy, Managing Director, Apollo Hospitals 9. Priya Paul, Chairman, Apeejay Park Hotels 10. Rajshree Pathy, Chairman, Rajshree Sugars and Chemicals Ltd 11. Ranjana Kumar ,Chairman, NABARD 12. Ravina Raj Kohli, Media personality and ex-President, STAR News 13. Renuka Ramnath, CEO, ICICI Ventures 14. Ritu Kumar ,Fashion Designer 15. Ritu Nanda, CEO, Escolife 16. Shahnaz Hussain, CEO, Shahnaz Herbals
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17. Sharan Apparao, Proprietor, Apparao Galleries 18. Simone Tata, Chairman, Trent Ltd 19. Sulajja Firodia Motwani, Joint MD, Kinetic Engineering 20. Tarjani Vakil, former Chairman and Managing Director, EXIM Bank 21. Zia Mody, Senior Partner, AZB & Partners

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Women Entrepreneurship in India-2008-09

States

No of Units Registered

No. of Women Entrepreneurs

Percentage %

Tamil Nadu

9618

2930

30.36

Uttar Pradesh

7980

3180

39.84

Kerala

5487

2135

38.91

Punjab

4791

1618

33.77

Maharastra

4339

1394

32.12

Gujrat

3872

1538

39.72

Karnatka

3822

1026

26.84

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Madhya Pradesh Other States & UTS

2967 14576

842 4185

28.38 28.71

Proposed Questionnaire
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NAME ___________________________________________ ADDRESS ________________________________________ AGE Below 25 years 25 to 40 40 to 55 Above 55 years

YOUR CURRENT PROFESSIONAL STATUS Entrepreneur Employee Home-maker Student

1. Have you ever thought of being your own Boss? Yes 2. If yes, at what age? _________ 3. Did you get the proper support from your Family and Society? Yes No No

4. If yes, did you get proper financial help? Yes No

a.) If yes, what was the Financing Source? Own Loan

b.) If no, what was the reason behind? _______________________________________________________ _______________________________________________________ 5. Are you aware of the various schemes of financing source available for Women Entrepreneurs in India? If yes, name any one of them. _______________________________________________________

6. Did you get success as you dreamt of? Yes

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7. If no, rate the factors out of 10. Lack of Motivation Lack of Knowledge Lack of Family support Inability to take responsibility Inadequate Funds Handling problem Lack of Planning ___ ___ ___ ___ ___ ___ ___

8. To avoid negative impact, what steps should be undertaken? __________________________________________________ __________________________________________________ __________________________________________________ 9. How important it is to be self dependent for Women in todays scenario? Mandatory Fairly Depends Not Important

10. How essential it is for Economic Growth of a Nation? Mandatory Fairly Depends Not Important

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