16 Women in Business and Entrepreneurship

J. Arthi

Introduction

Women, globally earn 24% lesser than men, taking great efforts in settling with a quality job and accrue the significant benefits attached with those jobs. In April 2015, UN Women launched its flagship report “Progress of the World’s Women 2015-2916 : Transforming Economies, Realizing Rights” which specifies that there is right of all women to a good job, with equal pay and safe working conditions; the right to an adequate pension; the right to healthcare, and water and sanitation—into economic policymaking as its major agenda.

The male dominated world was always disinclined to admit the reality that women were as good as men in putting hard work, raising intelligence quotient (IQ) and portraying better leadership traits.

1.Learning Objectives

This module helps the learners to

To understand the gaps that exists in education policy which does not support employment and entrepreneurship and find out how to bridge skills gap.
To analyse the challenges and opportunities of Women in entrepreneurship.
To know the role of Women in entrepreneurship especially in family business, cottage and micro industries.
To study the entrepreneurial ideas of women.
To identify the format of Business Plan.
To comprehend the different sources of resources mobilization.
To familiarize the support available for developing the entrepreneurial spirit in India.
To get inspired through the incredible entrepreneurial journey of successful entrepreneurs.

Bridging Skills Gap

A study of 95 countries conducted by the McKinsey Global Institute has found that the opportunity cost of gender inequality is $28 trillion in terms of lost global GDP, or 26% growth, by 2025.

The global skills gap is the difference between the skills that employers around the world expect from their employees and the actual skills that the employees have.

Estimates suggest that, by 2020, over 60% of the new jobs created will necessitate skills that less than 20% of the workforce possesses. Since women make up half of the world’s population, they can make an essential contribution to bridging the skills gap — but only if the ecosystem exists.

The womengain knowledge when they take up employment first and move into entrepreneurship later. Women who enter the work place may be categorized as beginners, matured and experienced.

(a) The beginners would be of age 20 when they place their foot in career path. Research shows that while 43% of women desire to hold top management positions during their first two years in their career, this figure drops to 16% by the time they complete five to seven years.

(b) The women in their mid career are matured and will be succumbed to various challenges of work life balance. She is forced to take up several roles and finds difficult to cope with the expectations. This stage of career requires advanced and critical skills for accomplishments of the targets set.

(c) Women themselves find difficult to address the issues in this stage as they re well experienced. Women might be in a Board or become senior manager or starting a venture. This envisages the core career stage and demands superior skill set as they move higher in their aspirations and positions. This stage brings out the hidden potentials and innate talents they own.

3.1 Looking Beyond

The dynamic economies require high level talents that are also innovative, risk taking, flexible and responding to changing conditions. The education from primary till higher level to be more relevant to labor market needs, there is a need to develop not only the right job skills but train students to become lifelong learners. It is estimated that the world will have a shortage of 47Million working people by 2020 while India alone will have a surplus of 59Million people. The largest job growth will come from sectors such as construction, automotive, retail and healthcare according to the NSDC (National Skill Development Council). By 2022, in the construction and automotive Industries alone, there will be close to 10 crore new jobs created.

3.2 Institutions work for bridging the skills gap

National Skills Development Agency
National Skill Development Corporation
University Grants Commission
Directorate General of Training
National Institute of Open Schooling
Jan Shikshan Sansthan
Industrial Training Institutes And Industrial Training Centres
PolyTechnic Education Institutions
Krishi Vigyan Kendra
Training Institutes like EDII(Entrepreneurship Development Institute of India), IIED(Indian Institute of Entrepreneurship Development), NISIET (National Institute of Small Industries Entrepreneur Training),NIESBUD(National Institute of Entrepreneurship Development and. Small Business Development)

Skills development is a core element of the ILO’s Global Employment Agenda (GEA), which constitutes the policy framework for employment promotion within the Decent Work Agenda. One practical example of the training response is the Training for Rural Economic Empowerment Project (TREE). The project also developed new ways of encouraging women to take part in skills training programmes.

Government of India has implemented a Technical Quality Improvement Programme (TEQIP) with the assistance from the World Bank to improve the quality of education and enhance the capabilities of the technical institutions.

4. Challenges and Opportunities of Women in Entrepreneurship.

With appropriate education, work experience, improving economic conditions and financial opportunities, many will be in a better position to become successful entrepreneur. There are a lot of issues that need to be address i.e. like lack of micro finance, skills set, marginalization, poor access to micro credit revolving schemes, poor accesses to financial resources, political and educational, investment opportunities, rigid and male dominated market conditions, cultural and social impediments etc.

The Government of India has defined women entrepreneurs as ―an enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women.

Credit Accessibility – Women entrepreneurs, mostly in developing countries, lack credit for their business activity which leads to poor living standard and low income. Lack of financial support as an initial start up for entrepreneurs has been a major concern for young and emerging entrepreneurs.

Savings – It is considered as an element of micro finance. If they have more savings, there is an increase in the amount of fixed capital available which can be used for widening the business and further growth.

Lack of business networks – It refers to the ability of women entrepreneurs to have a strong relationship between one or two affiliate business groups in order to achieve the organizational goal (Adler & kwon, 2002).

Lack of Business and technical knowledge– Women often lack access to training and experience in marketing and business management. Women entrepreneur’s ability to enter into new markets requires technical expertise, business knowledge and strong social connections

Training and education – It has been reported that most women entrepreneurs in developing economies lack training and skill, which consistently affect their growth and organizational advancement.

Traditional Barriers – The traditions and customs play a major role in avoiding Indian women to be an entrepreneur. Since women are expected to satisfy domestic needs of family as per the family tradition, they get no motivation or support to build a business of their own.

Personal barriers- It may comprehended that lack of confidence, dependability on others, lack of motivation, aversion of taking risk, lack of specific skills and knowledge, poor self-esteem, lack of creativity etc hampers the growth of women entrepreneurship.

It is to be noted that many studies and surveys found the following to be the hindering factors like
Failure of business/bankruptcy
Failure to convert profit back into investment Shortage of technical skills
Poor managerial skills
Low level of education and training Limited access to credit
Difficulty in obtaining loan from commercial banks Limited Micro-Credit Financial Supports
Weak public sector support system

4.1 A SWOT matrix representing the strengths, weaknesses, opportunities and challenges is presented below-

4.2 How to overcome obstacles?

Start a business that works
Research the product/ service Assess the market
Start business with adequate funds Develop effective networking
Consult with professionals
Opening of women development cells.
Assistance in project formulation and follow up of training programmes Credit facilities, financial incentive and subsidies
Development of Women Entrepreneurship Parks
Provide training to equip with technical and business acumen. Proper follow up mechanism and documentation
Supporting women entrepreneurs to introduce new technologies in their enterprises enhances the potential to increase productivity, create employment, reduce poverty, and promote local development.

4.3 Field Exercise

Try to prepare a SWOT analysis of an entrepreneur of your choice.

5. Role of Women in Business and Entrepreneurship

The role of Women entrepreneur in economic development is inevitable. Women entrepreneurship must be molded properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena.

Undoubtedly, Women’s economic activities contribute directly to growth and development of an economy in the following ways:

i) Capital formation: Entrepreneurs mobilize the idle savings of the public through the issue of industrial securitie

ii)Improvement in Per capita Income: women entrepreneurs have also been tapping the opportunities. They convert the latent and idle resources like land, labour and capital in to national income and wealth in the form of goods and services.

iii)Employment Generation – Women entrepreneurs play an important role in generating employment both directly and indirectly. By setting up small scale industries, they offer jobs to people.

iv)Balanced Regional Development-Women entrepreneurs in India remove regional disparities in economic development. They set up industries in backward areas to avail of the resources concessions and subsidies offered by government.

Thus women entrepreneurs are directly or indirectly playing an important role in environmental protection, back ward and forward integration and are acting as change agents, thus contributing to the economic growth of the country.

5.1 Advantages of Women Entrepreneurship

1. Boost the personal and social capabilities

a. Develop strong network ties

b.Professional independence

c. Enhance the self confidenc

d.Improve living standard

e. Greater recognition and social prestige

f. Dare to participate in political affairs

g.Economic empowerment

h.Solve family and village issues when they arise.

5.2 Women in Small Medium Enterprises

According to World Bank ,Women entrepreneurs in MSEs are the engine of growth, essential for a Competitive and efficient Market, Critical for Poverty reduction, and play an important role in developing Countries. Their entry into the marketplace has raised income levels, improved the lives of their families, and helped stabilize their communities.

5.3 Women in Business

Family businesses tend to think in very long time horizons. The ultimate goal, typically, is a sustainable enterprise that serves the family and the business well, using growth as the means to that end.

5.4 Women in Family Business – Few Role Models

The majority of Indian family businesses are quite young. India faced wars in 1962, 1965 and 1971; it was only after 1980 that the economic environment became more conducive for doing business. As a result the period from 1980 to 1995 was one in which a large number of family businesses emerged, established and prospered. Many of those family businesses split up over the last few years due to family differences.

Indian family firms are also highly competent to work with limited resources and make the best from the available scarce resources out of it. The family owners’ commitment and visibility leads to higher yield in the business.

In Mumbai, the Godrej girls, Tanya and Nisa, have been strongly involved in the family business for years now. The Reddy sisters in Hyderabad — Sangita, Preetha, Suneeta and Shobhana — are taking their father’s Dr Pratap Reddy’s legacy forward at Apollo Hospital. The Paul sisters, Priya and Priti of Apeejay Surrendra Group in Kolkata have carved out a significant presence for themselves in the challenging world of business. In Chennai, Lakshmi Venu, daughter of TAFE Chief Mallika Srinivasan and Venu Srinivasan of TVS Motors, plays a vital role in her parents’ businesses.

Few more examples are detailed below –

Sulajja Firodia Motwani- Joint Managing Director of Kinetic Engineering

Sulajja Firodia Motwani is the young and dynamic face of corporate India and despite all the problems and challenges faced by Kinetic Motors; she has managed to keep it buoyant. Though Kinetic Motors Ltd. and Kinetic Engineering Ltd., have few brands but surviving in this tough marketplace especially in Indian conditions is no less than a miracle.

Sulajja is a multifaceted lady, Kinetic Motors has gone far from a moped manufacturer to make bikes and scooters under her leadership.

Shobhana Bhartia, Chairperson and Editorial Director, HT Media

When Shobhana Bhartia took over the reins of her father K.K. Birla’s pre-independence newspaper business, Hindustan Times, profit was the last thing he was bothered about. The newspaper was his passion, which he had passed on to this daughter, in whom he saw all the qualities of a good newsperson. Bhartia, has turned this passion into a successful and lucrative business.

Preetha Reddy, Executive Vice Chairperson, Apollo Hospitals Enterprise

She might have passed on the title of Managing Director to her sister Suneeta, but Preetha Reddy, the eldest daughter of Apollo Hospitals founder Prathap Reddy, still plays a key role in the hospital chain. Preetha,, is the go-to face of the family which interfaces with clinicians and doctors. She has proved her best in attracting and retaining talent. Her greatest success lies in 99.7 per cent satisfaction rate among patients.

The Challenges

Indian family businesses enjoy various advantages due to their innate characteristics and a social culture that supports their structures. However, these advantages can be destroyed if the family is not united; as the family grows, the challenge is to keep a sense of unity.

1.The Next Generation

The unique culture of the present Indian family business: Inward-looking, owner centric, smaller scale, with a restricted perspective, and conservative mindset poses a serious challenge in absorbing the next generation family members

2.Attracting and retaining non-family employees

There are few family business groups who rope in new professionals as they could not get the expected skill set from their own family members. Many Indian family business owners end up selecting non-family employees based on their performance in the corporate world without paying much attention to their ‘fit’ with their own firm’s culture.

3.Women in family business

Indian family businesses are still largely male dominated. The role of women in business and employing women is largely accepted and encouraged in India. However, when it comes to hiring women in the family business, there are reservations. However, since women are technically equipped and gain business degrees, the acceptability of a woman to be the successor is largely increasing.

The solution to these challenges requires an understanding of the family business dynamics and a separation of people from problems. Family business members should learn that each generation has a different culture. Thus, if family businesses can manage these dynamics, they will be better placed to reap the benefits of the great range of opportunities in the Indian economy and beyond.

5.5 Field Exercise Identify a Women Entrepreneur in your place and profile the challenges in her entrepreneurial journey.

Dream your ideas and Do it!

6.1 Practical Exercise List down many business ideas so far not thought of by the established entrepreneurs that can be commercialized.

7. Business Plan

A Business Plan is the underpinning, or rather a springboard, towards the establishment and growth of a new business, particularly in the later stages of growth. A business plan is an essential tool for companies raising capital – and the business plan needs to be “investor ready”. It should focus on Operations and Management plans, Product- Market description; Brand positioning, Marketing plan, Customer, Competitive Analysis, Revenue model, Risk management and financials.

Here are some strategies which would help in designing better business plans.

Get Inputs from all:

A company generally keeps their business plan as a confidential document. It is good that more people contribute their views and place the plan for insights from others. If the dynamics of business plan is understood , it becomes successful.

Create an outline:

Within the overall outline of the business plan, emphasis the goals and desires followed by a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis

It is essential an executive summary is created to describe in what field the entrepreneur wish to succeed.

Add value through research:

As with any business project, research is absolutely critical to a solid business plan. If the research indicates that the idea is viable, then proceed to design goods or services for the market, marketing plan, funding required and desired goals.

Plan based on Funding Agency:

The funding agency includes investors and lenders. The business plan need to consider the key audience in mind. For example, Venture Capitalists (VCs) are very time constrained. The first paragraph of the plan should clearly states the goals and gets them interested

Business Plan needs to be Brief:

One of the key goals of business plan is to create enough interest for the investor to schedule a meeting.

Understand the competition:

The plan should pinpoint the competitors and specify how the present plan differentiates from them. But do not disparage the competition.It is better certain evidences may be produced for the justification that the plan would offset competition.

Be conservative in all financial estimates and projections:

The financial projections may be conservative—for example, a 10 percent market share is much more realistic.

Clear projection of time and resources available

The plans need to clearly present the resources available in terms of time, human capital, physical resources optimistically to suit the goal set.

Have a strong management team.

The team members need not have worked in the specified field, but need to draw parallels between what they’ve done and the skills needed to make the venture succeed.

Jusitfy why the given idea will work.

The plan can demonstrate why some of the variables don’t apply to the present situation or explain how such constraints may be overcome or make better.

Portray the available facilities and location for performing the work.

If there are plans to expand, discuss when, where and why.

Discuss payout options for the investors. It is the expectation of the investors to know when they can get their money back and at what other options available.

Comprehensively, a business plan is a written description of depicting the business’s future, a document that tells what to plan and how to plan.

7.1 Exercise Design a Business Plan with your desired goal and document using a selected template.

8. Resources mobilization.

India’s startup ecosystem is one of the fastest growing ones in the world with the third largest base, having more than 4200 startups (next only to UK and US). The Government of India’s Startup India initiative has the potential to help attain the global growth aspiration in India. Major challenge in entrepreneurship is rising funding. Certain ideas are given below-

Connect with the right people Seek corporate and government support Assess different funding options Crowd funding Look for women angel investors

There are several opportunities for women entrepreneurs to establish and boost their business. Concerted action by and through the Financial institutions, Government, Trade Associations and Partnerships can help in mobilizing adequate resources.

9. Support system –Creating an Enabling Environment for Women’s Entrepreneurship

It is high time that countries should rise to the challenge and create more support systems for encouraging more entrepreneurship among women.

There is an eco system built by the Credit Institutions, Promotional Institutions and Regulatory Institutions

Credit Institutions: Credit institutions in the women enterprise development can be categorized as: Mainstream financial institutions (commercial banks, regional rural banks, cooperative banks and state financial corporations), various kind of promotional institutions which have provision of credit as one of their important activities are the promotional institutions such as corporations, apex cooperative societies, boards as well as specific target group institutions) and private channels of finance (traders, financiers and money-lenders).

Promotional institutions: Promotional institutions mostly exist within the government sector. They include institutes mandated to promote technology and train manpower; corporations and federations mandated to promote the overall development of various sectors, especially the small-scale sector, and to organize the sector; directorates, councils and boards mandated to coordinate and promote the development, and to formulate policies and oversee their implementation

Representational institutions: Representational institutions are i) formed, owned and controlled by either the producer-entrepreneurs themselves in a specific sector or their representative or ii) indirect representation through voluntary agencies and the corporate sector. At present, a large number of NGOs are involved in supporting women entrepreneurs.

There are several Associations at State and National levels to promote women entrepreneurs which includes-

Federation of Indian Women Entrepreneurs (FIWE).
Small Industries Development Bank of India (SIDBI)
Khadi and Village Industries Commission (KVIC) –
International Centre for Entrepreneurship and Career Development (ICECD)
National Bank for Agriculture and Rural Development (NABARD)
FLO (FICCI Ladies Organization)
The Micro, Small and Medium Enterprises
(MSME) sector in particular, which plays a central role in the economic and social development of the country and is described as an “engine of growth” is attracting increasing policy attention.

9.1 Details of Women Entrepreneur Associations in India

Federation of Indian Women Entrepreneurs (FIWE)

Association of Women Entrepreneurs of Karnataka (AWAKE) Self-Employed Women’s Association (SEWA)
Women Entrepreneurs Promotion Association (WEPA)
The Marketing Organisation of Women Enterprises (MOOWES)
Mahakaushal Association of Woman Entrepreneurs (MAWE) SAARC Chamber Women Entrepreneurship Council
Women Entrepreneurship Network (WEN) National Entrepreneurship Network(NEN)
Some of the special schemes for women entrepreneurs implemented by the government bodies and allied institutions are provided below.
At present, the Government of India has over 27 schemes for women operated by different
Departments and Ministries. Some of these are:
Integrated Rural Development Programme (IRDP) Khadi And Village Industries Commission (KVIC)
Training of Rural Youth for Self-Employment (TRYSEM)
Prime Minister„s Rojgar Yojana (PMRY)
Entrepreneurial Development programme (EDPs) Women„s Development Corporations (WDCs)
Marketing of Non-Farm Products of Rural Women (MAHIMA)
Assistance to Rural Women in Non-Farm Development (ARWIND) Indira Mahila Yojana
Mahila Samiti Yojana Mahila Vikas Nidhi
Rashtriya Mahila Kosh Mahila Udyam Nidhi

Sakshi Tulsian

She is the Co – founder of Posist , a cloud based restaurant management platform which access information for table orders, deliveries, expenses and recipes etc. She completed her graduation from Bharati Vidyapeeth College of Engineering, New Delhi. She earlier worked as a software developer at Sapient for around two years, project manager at TechnoApex Software Pvt. Ltd. and business head at WebSanchaar Solutions.

Sabina Chopra

It would be incorrect if we don’t include Sabina Chopra in our successful Indian women entrepreneurs list. She is the co – founder of Yatra . com , an online travel website. She holds a Bachelor’s of Art degree from Delhi University and landed her first job with a Japan Airlines. Later, she headed India’s operation of eBookers, Europe’s leading online travel company. In 2010, she was felicitated with the Women Leaders of India. Under her guidance, the company has enhanced its customer base and earned recognition.

Kiran Mazumdar Shaw

Born in Bangalore, she did her Bachelors in Zoology from Mount Carmel and PG from Ballarat College, Melbourne in Malting and Brewing. She is the Chairman and Managing Director (CMD) of Biocon Limited . Under her leadership, the company has evolved as a leading player in biomedicine research with a focus on diabetes and oncology. She is also a member of the board of governors of the prestigious Indian School of Business and IIT, Hyderabad. She was awarded Padma Shri (1989) and Padma Bhushan (2005) by the Indian government.

From child bride to multi-millionaire in India

Kalpana Saroj

The first time when she came to Mumbai , she did not know where to go. Today her company has two roads named after it in the city.Even though her father allowed her to get an education, wider family pressures, Kalpana got married at 12.She moved to Mumbai to be with her husband who was 10 years older, but was shocked to find herself living in a slum. But that was not the only hardship she had to suffer. Every day was a dreadful with his husband’s family members abusing her verbally and physically. One day she attempted suicide but her aunt saved her. She moved back to Mumbai to stay with an uncle and work as a tailor at the age of 16.She began by earning less than a dollar a month, but tirelessly learnt how to operate industrial sewing machines, and as a result she saw her growing financially. Her reputation led to her being asked to take over the running of a metal engineering company, Kamani Tubes, which was in massive debt. By restructuring the company, she turned things around. Now, Kamani Tubes is a growing business, worth more than $100m..

Conclusion

Entrepreneurship is the key to the creation of new enterprises that energize and rejuvenate the economy. Entrepreneurship serves as the catalyst in the process of industrialization and economic growth. The role of Women entrepreneur in economic development is also being recognized and steps are being taken to promote women entrepreneurship. Lower middle countries are absolutely in dire need to encourage women entrepreneurship. As women workforce is promptly available to exploit the unexplored dimensions of business ventures for sustainable development. In the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) world, country needs the human capital to the fullest extent in finding a concrete space in the global economy. There are many challenges in successfully initiating and establishing an enterprise like finance, technology adoption, market reach, skill set, product and market issues, a right support system alone can help a woman entrepreneur to sustain and create a remarkable impact on the nation’s development.

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References

Journals

Adler, P. S., & Kwon, S. W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27(1), 17-40.
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Goel, V. P. (2009). Technical and Vocational Education and Training (TVET) System in India for Sustainable Development. Ministry of Human Resource Development Report.
Hariharan, N. P., & Nilavathy, K. Role of Women Entrepreneur In Indian Economic Development. Primax International Journal of Commerce and Management Research, 111.
Shah, Hina. (2013). Creating an Enabling Environment for Women’s Entrepreneurship in India. Escap South and South-West Asia Office, United Nations
Vijayakumar, T., & Naresh, B. (2013). Women Entrepreneurship in India-Role of Women in Small and Medium Enterprises. WOMEN, 2(7).

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