Challenges and Opportunities for Women Entrepreneurs

Posted on Jun 2, 2024 in Economy

Problems of Women Entrepreneurs

1. Financial Constraints: Obtaining loans and advances from financial institutions is challenging for women entrepreneurs as they often lack collateral securities. The requirement of property in their names hinders their access to capital.
2. Over-Dependence on Intermediaries: Women entrepreneurs heavily rely on intermediaries for product distribution, resulting in a significant portion of their profits being absorbed by these intermediaries. This dependence makes it difficult for them to establish market presence and promote their products effectively.
3. Stiff Competition: Women entrepreneurs face intense competition from established industries and male-dominated businesses. Limited resources and organizational capacity restrict their ability to invest in extensive marketing and advertising campaigns.
4. Scarcity of Raw Materials: Access to raw materials at reasonable prices poses a significant challenge. Women entrepreneurs often struggle to secure raw materials at competitive rates, impacting their production costs.
5. High Cost of Production: The overall cost of production tends to be higher for women entrepreneurs. While government grants and subsidies provide some relief, these benefits are often limited to the initial stages of business establishment.
6. Limited Mobility: Societal norms and safety concerns can restrict the mobility of women entrepreneurs. Traveling extensively for business purposes may be challenging, and their independent ventures might be met with skepticism and suspicion.
7. Family Ties: Balancing family responsibilities with business demands is a significant hurdle for women entrepreneurs. Married women, in particular, face the challenge of managing both their professional and personal lives effectively.
8. Lack of Education: Limited access to education and training can hinder women entrepreneurs’ understanding of business technology, market dynamics, and effective management practices. This lack of knowledge can create obstacles in establishing and running successful businesses.
9. Social Attitudes: In male-dominated societies, women entrepreneurs often encounter gender bias and societal expectations that limit their opportunities. They may face prejudice and a lack of recognition for their skills and abilities.
10. Male-Dominated Society: Prevailing gender stereotypes and biases create an uneven playing field for women entrepreneurs. They may encounter resistance, skepticism, and a lack of support from networks and institutions dominated by men.

Types of Business

Based on Activity

1. Business Entrepreneur: Conceives and develops a new product or service, establishing a business to bring their ideas to fruition.
2. Trading Entrepreneur: Engages in buying and selling activities, both domestically and internationally, without involvement in manufacturing.
3. Industrial Entrepreneur: Focuses on manufacturing, identifying customer needs and establishing industrial units to produce and supply those products.
4. Corporate Entrepreneur: Plans, develops, and manages corporate entities such as companies or trusts.
5. Agricultural Entrepreneur: Undertakes agricultural activities, including crop cultivation, livestock farming, and related businesses.
6. Retail Entrepreneur: Operates retail businesses, purchasing goods from wholesalers or manufacturers and selling them directly to consumers.
7. Service Entrepreneur: Provides services to customers, generating income through fees, commissions, or other forms of remuneration.

Based on Technology Use

1. Technical Entrepreneur:
2. Non-Technical Entrepreneur:
3. Professional Entrepreneur:
4. High-Tech Entrepreneur:
5. Low-Tech Entrepreneur:

Based on Motivation

1. Pure Entrepreneur:
2. Induced Entrepreneur:
3. Motivated Entrepreneur:
4. Spontaneous Entrepreneur:

Based on Growth

1. Growth Entrepreneur:
2. Super Growth Entrepreneur:

Objectives of DIC (District Industries Centre)

1. Promote employment opportunities in rural and village areas.
2. Assist entrepreneurs in evaluating the viability of projects.
3. Guide entrepreneurs in selecting appropriate machinery, raw materials, and supply sources.
4. Facilitate access to government schemes and benefits for new entrepreneurs.
5. Accelerate industrial growth within the district.
6. Simplify procedures for establishing new industrial units.
7. Promote rural industrialization.
8. Develop and implement action plans for identified schemes.
9. Help entrepreneurs minimize time and effort in obtaining necessary permissions.

Functions of DIC

1. Conduct entrepreneurial motivation programs to foster a culture of entrepreneurship.
2. Provide technical guidance to new entrepreneurs for project selection.
3. Issue provisional registrations to small-scale industries (SSIs) for financial assistance.
4. Facilitate clearances from various departments and expedite power connections.
5. Assist with the import of raw materials.
6. Coordinate financial assistance through nationalized banks.
7. Provide training and support to rural entrepreneurs.
8. Recommend loan applications for fixed asset purchases.

Aims & Objectives (Entrepreneurship Development Programs)

1. Create self-employment opportunities.
2. Develop competent entrepreneurs through training.
3. Instill an entrepreneurial spirit among young people.
4. Promote micro-enterprises at the rural level.
5. Provide trained entrepreneur trainers and motivators.
6. Advance entrepreneurial knowledge through research.
7. Promote corporate excellence by fostering intrapreneurship.
8. Enhance the managerial capabilities of small-scale industries.
9. Support aspiring entrepreneurs in establishing their ventures.

Guidelines for Formulating a Project Report (Planning Commission of India)

1. General Information

The feasibility report should include an industry analysis, covering its past performance and future prospects.

2. Preliminary Analysis of Alternatives

• Data on the gap between demand and supply.
• Data on available project capacity.
• List of existing plants and their capacities.
• List of projects with letters of intent.

3. Project Description

Provide a concise overview of the chosen technology or process.

4. Marketing Plan

• Data on the marketing strategy.
• Demand and supply projections for target markets.
• Methods and data used for market analysis.
• Analysis of historical price trends.

5. Capital Requirements and Costs

Provide a comprehensive estimate of capital costs, including detailed information on all cost elements.

6. Operating Requirements and Costs

Outline operating costs incurred after production commences.

7. Financial Analysis

Assess the project’s financial viability using relevant metrics.

8. Economic Analysis

Conduct a social profitability analysis, adjusting costs and returns to reflect social values.

Distinction Between Entrepreneur and Entrepreneurship

Distinction Between Entrepreneur and Manager

Factors Affecting the Growth of Entrepreneurship

• Lack of Adequate Infrastructure: Insufficient transportation, communication, power supply, and other essential infrastructure hinders business growth.
• Non-Availability of Capital: Limited access to funding sources restricts research, development, and business expansion.
• Presence of High Risk: Developing countries often present higher business risks compared to developed nations.
• Non-Availability of Technical Know-How and Skills: Shortage of skilled labor and technical expertise limits innovation and growth potential.

Distinction Between Entrepreneur and Intrapreneur

Advantages/Benefits/Importance of EDP (Entrepreneurship Development Programs)

1. Identify entrepreneurial traits.
2. Select potential entrepreneurs.
3. Motivate educated youth towards achievement.
4. Disseminate government policies and support directly.
5. Equip entrepreneurs with essential business skills.
6. Facilitate access to infrastructure and resources.
7. Improve workplace efficiency.
8. Minimize waste and defects in production.
9. Reduce workplace accidents.
10. Enhance employee-management relations.

National Institute for Entrepreneurship and Small Business Development (NIESBUD)

Established in 1983 by the Ministry of Industry, NIESBUD coordinates entrepreneurship development activities for small-scale industries. It implements recommendations from the National Entrepreneurship Development Board (NEDB) and focuses on new program development.

Entrepreneurship Development Institute of India (EDII)

Founded in 1983, EDII is a national resource institution for entrepreneurship development. Supported by the Gujarat Government and financial institutions, EDII offers training, research, and institution building services to promote entrepreneurship.

Characteristics/Features of a Project

1. Capital Investment: Projects require capital for land, building, equipment, and operational expenses.
2. Appraisal of Economic Viability: Projects should be economically feasible, providing a reasonable return on investment.
3. Generation of Goods and Services: Projects aim to produce goods or services that benefit society.
4. Profitable Utilization of Resources: Efficient resource utilization is crucial for project success.
5. Time Schedule: Projects operate within defined timelines for completion.
6. Profitability: Projects aim to generate profits by meeting customer needs.

Stages/Elements in Project Formulation

1. Feasibility Analysis

Evaluate the project idea’s viability within given constraints. The feasibility report is essential for securing financial assistance.

2. Techno-Economic Analysis

Identify demand potential and select the optimal technology for project objectives.

3. Project Design and Network Analysis

Develop a work plan and timeline, considering time and resource constraints.

4. Input Analysis

Determine resource requirements, including identification, quantification, and evaluation of project inputs.

5. Financial Analysis

Assess the project’s financial viability and potential returns.