Dr. S.P. Mishra
NOVEMBER 1996
International labour Organization
South Asia multidisciplinary Advisory Team
Sida
Swedish International
Development Cooperation Agency
Table of Contents
list of Abbreviations
list of Tables& Figures
1.1 Problem Formulation
1.2 Objectives of the Study
1,3 Methodology
Chapter ]I: Status of Women in India
2.1 Introduction
2.2 Women in India: A Historical Perspective
2.3 Demographic Status
2.4 Health & Medical Status
2.5 Educational Status
2.6 Domestic Status
2.7 Occupational Status
2.8 Legal Status
2.9 Measures for Improvement of Status
Chapter Ill: The Small Scale Sector in India
3.1 Introduction
3.2 Small Scale Industries in India
3.3 Policy Overview
3.4 New Industrial Policy
3.5 Highlights
3.6 Performance
3.7 Projection
Chapter IV: Status of Women Entrepreneurs in the Small Scale Sector in India
4.1 Introduction
4,2 Number of Women Entrepreneurs
4.3 Impetus for Growth in Number of Women Entrepreneurs
4.4 Tangible Program Impact
4.5 Sector-wise Distribution
4.6
4.6 Investment-wise Distribution
4.7 Employment Generation
4.8 Nature of Ownership
4.9
4.9 Women& New Technologies
4.10 Conclusion
Chapter V: Women Entrepreneurs: Context & Challenges
5.1 Introduction
5.2 Overview
5.3 The Socio-Cultural Context
5.4 Conceiving the Idea
5.5 Translating the Idea into a Concrete Business Plan: Project Formulation
5.6 Implementing the Project
5.7 Project Operation
5.8 Expansion
5.9 Problems faced by Women Entrepreneurs in Enterprise Establishment Survival and Expansion
5.10 Conclusion
Chapter VI: Gender Differences in Entrepreneurship
6.1 Introduction
6.2 Motivational Aspects
6.3 Demographic and Socio-Personal Differences
6.4 Psychological Differences
6.5 Enterprise Differences
6.6 Performance Differences
6.7 The Feminine Entrepreneur Versds the Successful Entrepreneur
6.8 Implications for Training
Chapter Vil: Characteristics of Women Entrepreneurs
Chapter VIII: Promotional Efforts: Policies, Programs and Institutional Support
8.1 Introduction
8.2 Policy Landmarks
8.3 National Level Poverty Alleviation Programs.
8.4 Support to Training-cum-Employment Programs for Women (STEP)
8.5 Integrated Rural Development Program (IRDP)
8.6 Development of Women and Children in Rural Areas (DWCRA)
8.7 Training of Rural Youth for Self-Employment (TRYSEM)
8.8 Socio-Economic Programme (SEP)
8.9 Rashtriya Mahila Kosh (RMK)
8.10 Mahila Samriddhi Yojna (MSY)
8.11 Indira Mahila Yojna (IMY)
8.12 Vocational Training Programmes for Women
8.13 Nehru Rozgar Yojna
8.14 Prime Minister Rozgar Yojna
8.15 Assistance to Women Cooperatives
8.16 Science and Technology Projects for Women
8.17 National Commission for Women (NCW)
8.18 Employment and Income Generating Training-cum-Production Units for Women
8.19 The Integrated Women's Empowerment and Development Project, Haryana
8.20 Trade Related Entrepreneurship Assistance and Development for Women
8.21 Women's Development Corporations (WDCS)
8.22 Central Government Institution
8.23 Schemes Available through Banks
8.24 State Level Financial Packages for Women
8.25 National Level Training Institutions
8.26 State Level Specialized Training Institutions
8.27 Others
8.28 National Level Women Entrepreneurs Associations and Organizations
8.29 State Level Women's Organizations/Associations
8.30 NGO Initiatives
Chapter IX: Summary and Recommendations
9.1 Findings
9.2 Recommendations
References
Annexures
1. Small Scale Sector: Some Common Problems
II. Problems Faced by Women Entrepreneurs: A Literature Survey
Ill. Figures
The emergence of women entrepreneurs and their contribution to the national economy is quite visible in India. The number of women entrepreneurs has grown over a period of time, especially in the 1990s. Women entrepreneurs need to be lauded for their increased utilization of modern technology, increased investments, finding a niche in the export market, creating a sizable employment for others and setting the trend for other women entrepreneurs in the organized sector.
While women entrepreneurs have demonstrated their potential, the fact remains that they are capable of contributing much more than what they already are. In order to harness their potential and for their continued growth and development, it is necessary to formulate appropriate strategies for stimulating, supporting and sustaining their efforts in this direction. Such a strategy needs to be in congruence with field realities, and should especially take cognizance of the problems women entrepreneurs face within the current system.
The present study report is an effort in this direction. An attempt has been made to document available information regarding the status of women entrepreneurs, against the backdrop of the socioeconomic context and the attendant challenges they face.
The project has been sponsored by the International Labour Organization. Mr. Gerry Finnegan, Senior Specialist on Small Enterprises and Management Development, ILO-SAAT, took a deep interest in this study and provided his guidance throughout.
The completion of this project is the result of the well-matched professional commitment of Ms. Poonam Krishnan who showed her excellent competence in putting stray thoughts together, more meaningfully and effectively. Ms. Archana Mathur, Dr. Padma Iyer and Dr. C. Rani extended their help in data collection and analysis. The hardwork of Kamlesh Padmanathan coupled with her consistent optimism despite all odds, enabled us to put together this document in a presentable format.
The team looks beyond the present study, hoping to get greater satisfaction, once this work has the tangible consequence of helping towards the larger goal of assisting women entrepreneurs in the small scale sector, in setting up and managing their ventures within a more conducive and supportive socioeconomic environment.
Dr. S.P. Mishra
Project Director
This report is part of the regional Asia project for the promotion of entrepreneurship among women in small and cottage industries (RAS/92/M12/SWC). The Project was funded by the Swedish International Development Cooperation Agency (Sida) and executed by the South Asia Multidisciplinary Advisory Team of the International Labour Organization, ILO-SAAT, in close cooperation with the ILO Area Office in New Delhi.
One of the key activities undertaken under this project has been to commission country studies to assess the status-barriers and constraints, as well as opportunities and support mechanismsof women's entrepreneurship in the five participating countries, viz. India, Nepal, Philippines, Sri Lanka and Thailand. The present study on India prepared by Dr. S.P. Mishra, is the third in the series of studies published by ILO-SAAT. Mr. Gerry Finnegan, Senior Small Enterprise and Management Development Specialist, provided the overall coordination and technical guidance to the study and Vandana Verma, Research Officer, contributed the technical inputs.
The study brings together an extensive amount of information on various entrepreneurship and women's development programmes introduced in India. There is an assessment of the current position of women entrepreneurs, as well as of the existing support programmes such as credit, training and marketing support, for women to establish their own enterprises. The study looks at the sociocultural, educational and legal barriers to women's entrepreneurship in India. It also includes profiles of most of the key agencies involved in promoting women's entrepreneurship and recommendations for policy-makers aimed at enhancing the economic empowerment of women tl-troughout the country.
A document such as this is likely to raise as many questions as it provides answers. This can be due in part to the paucity of well-researched published material, both in India and elsewhere, on this important topic. It can also be as a result of the sheer vastness and scope of the issue under consideration. It may also come from underlying biases which tend to play down the significance of women's entrepreneurship in many countries. The Government of India and key United Nation's agencies-such as the ILO-as well as major bilateral agencies such as Sida, are giving more prominence to programmes of poverty alleviation and employment creation, with a particular focus on women. Although many of them promote income-generation and small enterprise development as a means of achieving their objectives, there is a general lack of awareness of the significant factors which impact upon the enterprise development process, particularly in the case of women entrepreneurs.
The effectiveness, including the cost-effectiveness and impact of such support programmes, is an area worthy of further research. Such research should focus on a cross-section of women entrepreneurs, including members of women-specific groups, partly to provide greater visibility for
women's entrepreneurship, and partly to provide role models for potential women entrepreneursparticularly for young women entering the labour market for the first time. As the problems of
running a small enterprise can be very different from those encountered or inhibit the growth of women's enterprises in India. Once available, this information should prove to be most useful for Governmetn, donor organisations, and indeed for the women entrepreneurs themselves.As the executing agency for this Project, ILO-SAAT is eager to receive comments, suggestions, or additional information relating to theme of this paper.
New Delhi November 1996 A.S. Oberai Director South Asia Multidisiplinary Advisory Team (SAAT) International Labour Organization (ILO)
1.1 Problem Formulation
I
T IS estimated that presently women entrepreneurs comprise about 10% of the total entrepreneurs in India. It is also clear that this percentage is growing every year. If prevailing trends continue, it is not unlikely that in another five years, women will comprise 20% of the entrepreneurial force in India. In terms of numbers, one would estimate at least 5 lakh (note: In the Countries of South Asia, one lakh is the equivalent of 100,000 (one hundered thousand) one crore the equivalent of 10,000,000 (ten million)) women entrepreneurs at the turn of the century.
It is perhaps for these reasons that international agencies like ILO would like to understand the context of women entrepreneurs in India and evolve appropriate developmental strategies to suit their needs.
The study was planned with the following objectives:
1.3 Methodology
An extensive literature review of secondary data sources was undertaken as relevant to the
stated objectives of the study.
In order to fill in secondary data gaps on topics such as employment, investment and sectorwise distribution of women entrepreneurs, raw data was obtained from 14 States from the Offices of the Development Commissioner (SSI), Government of India. To supplement data obtained from secondary sources, a few case studies were obtained and incorporated in the report.
This study has been conducted within a short time frame. Thus the scope of the study is limited. Since secondary sources of data were relied upon it was difficult to maintain uniformity in sample size for comparative analyses of various aspects related to women entrepreneurs. Also, qualitative analysis has been used in the main, to arrive at conclusions rather than rigorous statistical analyses.
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