An Indian woman has to go a long way to achieve her proper place in the world of business. Deep-rooted traditional sociological setup like putting herself second to meeting family responsibilities have been the main reason behind the lack of women entrepreneurs in India. However, since the opening up of the economy in 1991, dramatic change in socio fabric, continuous increase in education level, and zeal to aspire more for themselves has made more and more women try their hand in the line of business. A modern Indian woman with her determination, persistence, and perseverance is not only ready to take risks but also to succeed in a highly competitive world. In developing economies like India who has to feed her 1.35b people, women entrepreneurship is the new engine of growth that can bring economic prosperity and well-being.
Definition
Women Entrepreneurs can be defined as a business that is started and managed by a woman or a group of women. As per the Government of India, any business in which a controlling stake of a minimum of 51 percent is held by women and at least 51 percent of the employees are women is classified as women entrepreneurship.
Types of women entrepreneurs
Women entrepreneurs can be broadly classified into four categories:
Affluent Entrepreneurs
These entrepreneurs are the family members of wealthy businessmen. They get financial support, mentorship, and all the necessary resources to start a new business.
Isha Ambani, daughter of Reliance Industries chairman Mukesh Ambani is a director in JIO Infocom and Reliance Retail. She started a new venture Reliance Arts Foundation to promote Indian Art globally.
Pull Factor
They are first-generation women entrepreneurs. These women are educated and belong to urban society. They may or may not have prior work experience but they take the risk of starting a new enterprise to be financially independent and leave their mark in the world.
Sharadha Sharma, CEO of YourStory quit her job at CNBC and created a platform to promote stories of upcoming Startups and entrepreneurs.
Push Factor
These women get into the world of business to overcome financial challenges. They usually do not have any financial and family support. Difficult circumstances in the family push them to try their hand in entrepreneurship.
Patricia Narayan battelled a failed marriage but to look after herself and her two kids she started a food business 30 years ago and now owns Sandheepha chain of restaurants. During the current Covid19 situation we hear so many stories where many women have come out and started businesses to support their families.
Rural Entrepreneurs
These women entrepreneurs belong to rural areas. They business as per their knowledge and availability of resources at the local level. These businesses are started with low capital, have minimum risk, and are usually low tech and skill.
Ganapathy Chandrasekaran from Sivakasi Tamil Nadu, started making artwork from scrap paper and turned into a successful businesswoman the British Council invited her to share her story.
Anita Devi also known as the ‘Mushroom lady of Bihar,’ started growing mushrooms and now runs ‘Madhopur Farmer’s Producers Company.’
Current Scenario
As per Sixth Economic Census, 2016 of India following points describe the current scenario of women entrepreneurship in India.
- 13.76% of all the establishments are owned by women.
- 83.19% of these women-owned establishments do not hire any workforce.
- 34.3% of these women-owned establishments are agricultural establishments.
- The top five states in women entrepreneurship are
- Tamil Nadu – 13.51%
- Kerala – 11.35%
- Andhra Pradesh – 10.56%
- West Bengal – 10.33%
- Maharashtra – 8.25%
- The top five business activities women entrepreneurs undertake are:
- Agriculture – 34.3%
- Manufacturing – 29.8%
- Trade – 18.23%
- Other Services – 5.38%
- Accommodation & food services – 2.77%
- In the agricultural sector, 92.20% of undertakings pertain to livestock activities.
- In the non-agricultural sector, 45.36% of the businesses are involved in manufacturing activities.
- 1.34 Cr people are employed by the establishments owned by women.
- 89% of businesses are run regularly, 9% are seasonal and 2% are casual.
- Capital financing pattern of women-owned enterprises is:
- Self-Financing – 79%
- Donations – 14.65%
- Government Funding – 3.37%
- Funding through Financial Institutions – 1.08%
- SHG – 1%
- Non-institutional funding or financing from private money lenders – 0.84%
An educated smart woman can take up a job any time, but if she became an entrepreneur she not only earns for herself and her family but also provides jobs to many more women. A robust environment conducive for women’s entrepreneurship encourages women to start ventures that make them capable to manage businesses instead of being dependent on seeking employment.
