Sample Proposal.pdf

TITLE Scope and Challenges of Women Participation in Small Scale Industries; A study on rural and urban women Entrepreneurs of Maharashtra Abstract: Optional 1. Introduction In many developed economies, women are starting businesses at a faster rate than men and are making significant contributions to job creation and economic growth. In many developing countries, women are also making a significant economic contribution. It is estimated that there are about 8 to 10 million formal SMEs with at least one women owner in developing countries. These businesses are contributing to economic growth and poverty reduction. For example, a survey of 1,228 women business owners in the Middle East North Africa (MENA) region found that women are running well-established businesses that are generating revenues well over USD $100,000 per annum, comparing favorably to the number of women-owned firms in the United States generating similar amounts. Although the average growth rate of women businesses in emerging markets is significantly lower than that of men, their growth potential is becoming evident. In East Asia, for example, women-owned SMEs have shown a consistent growth trajectory and in some countries are growing at a faster rate than businesses owned by men.

Women entrepreneurs make a significant contribution to the Indian economy. There are nearly three million micro, small, and medium enterprises with full or partial female ownership. Collectively, these women-owned enterprises contribute 3.09 percent of industrial output and employ over 8 million people. Approximately, 78 percent of women enterprises belong to the services sector. Women entrepreneurship is largely skewed towards smaller sized firms, as almost 98 percent of women-owned businesses are micro-enterprises. As with the broader MSME sector, access to formal finance is a key barrier to the growth of women-owned businesses, leading to over 90 percent of finance requirements being met through informal sources.

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1.1 Women Entrepreneurship and Their Role in MSMEs There is growing evidence all over the world that Micro, Small and Medium Enterprises (MSMEs) play a significant role in the national economic development of any country. They provide majority of new jobs and produce much of the creativity and innovation that fuels economic progress. The extra growth over the past several years throughout the industrialized countries has been due to the growth of MSMEs. In India, the Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the promotional schemes for the development of micro, small and medium enterprises. The schemes and programmes generally focus on capacity building in states and regions; nevertheless, there are a few schemes and programmes, which are individual beneficiaryoriented. While there are no specific reservations for women, in the latter, there are some concessions/incentives available under these programmes for the benefit of women entrepreneurs. In respect of entrepreneurship/skill development training programmes. Under the National Awards for Entrepreneurial Development (Quality products) and Trade Related Entrepreneurship Assistance and Development (TREAD) programme for women, the necessary guidelines have been issued and specific reservation provided for women. Similarly, fewer than two employment generation programmes being implemented by the Ministry like Rural Employment Generation programme (REGP) and prime Minister Rozgar Yojana (PMRY), some concessions have been provided for women beneficiaries. Besides, the Coir Board is implementing the Mahila Coir Yojana, which is a women oriented self-employment programme.

1.2 Need and Importance of Self Help Group

Self-help groups are necessary to overcome exploitation, create confidence for the economic selfreliance of rural people, particularly among women who are mostly invisible in the social structure. These groups enable them to come together for common objective and gain strength from each other to deal with exploitation, which they are facing in several forms. A group become the basis for action and change. It also helps buildings of relationship for mutual trust between the promoting organization and the rural poor through constant contact and genuine efforts. Self help groups plays an important role in differentiating between consumer credit and production credit, analyzing the credit system for its implication and changes in economy, culture and social position of the target groups, providing easy access to credit and facilitating group/organization for effective 2

control, ensuring repayments and continuity through group dynamics; setting visible norms for interest rates, repayment schedules, gestation period, extension, writing of bad debts; and assisting group members in getting access to the formal credit institutions. Thus, self-help group disburses microcredit to the rural women for the purpose of making them enterprising women and encouraging them to enter into entrepreneurial activities. Credit needs of the rural and urban poor women are fulfilled totally through the SHGs. SHGs enhance equality of status of women as participation, decision-makers and beneficiaries in the democratic, economic, social and cultural spheres of life. The rural poor are in-capacitated due to various reasons such as; most of them are socially backward, illiterate, with low motivation and poor economic base. Individually, a poor is not weak in socio-economic term but also lacks access to the knowledge and information, which are the most important components of today's development process.

2. Review of Literature

Amuthalaxmi P., Kamalanabhan T. J (2006) in their study was initiated with the objectives of identify the individual characteristics, family environment and external variables that determine women entrepreneurs and working in a below poverty line community. The study had shown positive influence of the contribution of both women entrepreneur and working women to the below poverty community development. Anna, Chandler, Jansen and Mero (2000) proposed a model combining venture efficacy, career expectations, and individual context as determinants of industry selection. Women in traditional businesses had higher venture efficacy for opportunity recognition and higher career expectations of life balance and security and placed more importance on the financial support received from others. Non-traditional owners had higher venture efficacy for planning and higher career expectations for money or wealth. Antony Valsamma The study of the women entrepreneurs was undertaken with a view to understand the nature and condition under which they are functioning and the problems and challenges faced by them in course of their entrepreneurial pursuits. The study reveals that Textile and tailoring, food processing, gift shop, stationary stores, are the conventional areas that are dominated by women entrepreneurs. Secondly, they were found that banks are coming forward to finance the business ventures for educated women. 3

Beena C. and Sushama B. (2007) focused their study on self-employed women in unarranged sector. Objectives of their study were (1) To study the motivational factors responsible to start the enterprise. (2) To study the association between motivational and their perception of success. It was observed from interactions with these women that the financial return of these women was a very strong motive not only to start but also to carry on with this enterprise over period of 5 years. 73 percent of the entrepreneurs mentioned that, they are very successful & they are planning to expand their business. C. Arvind and S. Renuka (2003) conducted the study to examine the profile of women entrepreneur, motivation and facilitating work home role conflict faced by women entrepreneurs. The researcher found that the important factors which motivated the women towards entrepreneurship are self interest in that particular area of enterprise and inspiration from others success. The facilitating factor that had an impact in maintaining the enterprise successfully were self-experience, interest, family’s help and support. Gundry and Welsch (2001) compared women-owned businesses that exhibited high levels of growth with low or no growth businesses in order to understand the relationship between strategic choices paths and the firms’ growth orientation. High-growth women entrepreneurs differed from low growth women entrepreneurs along the following dimensions: selection of strategies that focused on market expansion and new technologies, greater intensity of commitment to business ownership, and willingness to incur greater opportunity costs for the success of their firms. Holliday and Lether by (1993) conducted a study of how women integrate the business and social lives. The researcher drew heavily on sociological theory to interpret women’s roles in small businesses, particularly those roles related to authority. Kole Swapna, Aryakumar (2005) develops an integrated approach towards promotion of women entrepreneurship in the rural economy. The study reveals that to make rural women as strong as economy drivers, government and non-government organizations have taken a number of initiatives. Singh Shailendra and Saxena S. C. (2000) in their work related to ‘Women entrepreneurs of Eastern up challenges and strategies of empowerment’ have tried to enlist the challenges experienced by these women entrepreneurs and have also suggested ways & means to empower them to handle these challenges They found that women entrepreneur’s of eastern U.P. struggle against many odds . 4

3. Research Gap Based on the review of literature the study will attempt to capture some research gaps: 1. Participation of women of both rural and urban areas is taken as a parameter in assessing economic development. 2. Women participation in MSMEs and SSI will be assessed. 3. Socio-economic status as well as the financial condition of rural and urban women entrepreneur will be are assessed. 4. Role of SHG is given due importance. 5. Case study of few successful women entrepreneurs will be discussed.

4. Need for the Study: The Government of Maharashtra has implemented all the welfare schemes framed by Government of India as well as the State has been giving all the priority to the women as per the Constitution of India. The Government has formulated thousands of women self-help groups and providing them loan through Bank linkage with sufficient subsidy to make them financially sound through different schemes such as Mission Shakti, WEP (women’s Economic Programme) and swayamsiddha etc (by different Departments such as Department of Panchayati Raj and Department of Women and Child Welfare); also providing seasonal training for their capacity building, marketing support etc. MUDRA bank is also one recent attempt which has gone illustrious in recent days. Still it has been observed that women are not able to reach to the mainstream of the society. If compared to other states of India the women in Maharashtra lack behind their status socially and economically. Be it a developed district or an underdeveloped one women in Maharashtra find it difficult to overcome the challenges. However, the existing lacuna in the formulation and execution of the policies has not changed the grass-root situations to a great extent of women in rural Maharashtra. There has been multiple approach to make women prominently visible in development scene of Maharashtra. Therefore, this study will attempt to analyze the structure, performance and impact of microenterprises on the rural women in Maharashtra. The problems associated with empowerment need to be outlined, and to suggest the possibilities to remove major obstacles obstructing the empowerment of rural women of Maharashtra.

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5. Research Objective The research makes an attempt to analyze women’s participation in entrepreneurial activities so as to highlight the contribution of women entrepreneurs towards economic development. In the process it further attempts to examine the facilitating factors as well as impediments that this class face in running their units. 1. To assess the socio-economic status of rural as well as urban women. 2. To examine the challenges faced by the women of rural and urban areas in participation in entrepreneurial activities. 3. To know the role played by SHGs in Women Entrepreneurship Development. 4. To publicize different government schemes related to advantages of women participation in SHG or Entrepreneurship to the women (with the help of extension unit).

6. Proposed Research Methodology

Exploratory Research Interviews are often used in exploratory research for data collection. The purpose of the research interview is to explore the views, experiences, beliefs and motivations of individuals on specific matters. Interviews help in gathering detailed insights about a specific issue from target participants. The target industry for the study is small scale sector i.e. the firms having investment in plant and machinery at an original cost not exceeding Rs.1 crore. The population of the study is confined to the women entrepreneurs in selected district. Data Collection The study will be undertaking both primary and desk research. Primary data will be enumerated from a field survey in the study region through questioner, interview and through observations on the field. Secondary data will be collected from different reports published by various Government and Non-Government sources that are authentic. Sample Size The study is expected to focus on the sample clusters. Mostly the study will follow cluster sampling and area sampling. Since the members are expected to be large in number, they may and grouped meaningfully to undertake random sampling accordingly. Sample size will be decided after having 6

concrete information on data set from primary survey. The list of SME owners is obtained through the directories of MSME-Development Institute, selected districts of Maharashtra. Data Analysis Techniques The study will identify appropriate statistical tools for the analysis of data. Mostly the study expects to undertake panel data analysis to undertake across group and over the time performance analysis. This expected to undertake appropriate models to capture cluster heterogeneity and possible issues of endogeneity in the studied sample. The study is expected to use statistical soft wares like SPSS and STATA largely for econometric modelling. 7. Tentative Chapterization Following is the scheme of tentative chapteriszation of the present study: Chapter 1: Introduction and Problem Statement Chapter 2: Review of Literature Chapter 3: Research Methodology Chapter 4: Sample Survey and Data Analysis Chapter 5: Findings of the Study Chapter 6: Conclusions, Suggestions and Recommendations

8. References Amuthalaxmi P., Kamalanabhan T. J., (2006): ‘Women Entrepreneurs in Micro Enterprises: An Empirical Study’ SEDME March 2006 Anna, Chandler, Jansen and Mero (2000): ‘Women Business Owners in Traditional and Nontraditional Industries’. Journal of Business Venturing, Volume & Issue No. 15 (3), PP. 279-303. Antony Valsamma, (2007): ‘Women Entrepreneurs on the Upbeat’ Southern Economist, March 1, 2007.

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Beena C. and Sushama B., (2003) ‘Women Entrepreneurs Managing Petty Business: A study from Motivational Perspective.’ Southern Economist, May 15, 2003 C. Arvind and S. Renuka, (2001): ‘Women Entrepreneurs: An Exploratory Study’, SEDME, Sept 2001 Gundry and Welch (2001): ‘The Ambitious Entrepreneur: High Growth Strategies of Womenowned Enterprises’, Journal of Business Venturing, Vol. & Issue No 16 (5), PP. 453-470. Holliday and Letherby (1993): ‘Happy Families or Poor Relations? Familial Analogies in the Small Firm.’ International Small Business Journal, Volume and Issue Nos. 11 (2), pp. 54-63. Kole Swapna, Aryakumar, (2005): ‘Facilitating Entrepreneurship amongst Rural Women Issues and Challenges’, Asian Economic Review, Vol.47 No.3. Dec Issue 2005 Singh Shailendra and Saxena, (2000): ‘Women Entrepreneurs of Eastern up Challenges and Strategies of Empowerment, Indian Journal of Industrial Relations Communication, Vol. 36, No. 1, July, 2000. Tripathi, S. N. and Dass, C. R. ‘Tribal Women in India’, Tribal women in Traditional Crafts and Cottage Industries. Usha Umesh, (1999): ‘Women Entrepreneurs in the Informal Sector: A Study of Kerala, Southern Economist, Dec15, 1999 pp 23. Vel Birley (1989), ‘Female Entrepreneurs: Are they really any Different? Journal of Small Business Management Volume and Issue Nos. 27 (1), PP. 32-37.

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