57

CHAPTER III

GROWTH AND DEVELOPMENT OF WOMEN ENTREPRENEURS IN THE

STUDY AREA

3.1 Introduction

3.2 Growth of Women Entrepreneurs at the Global Level

3.3 Growth of Women Entrepreneurs in India

3.4 Women Entrepreneurship in Tamil Nadu

3.5 Entrepreneurship Development in Sivagangai District

3.6 The Growth and Development of Women Entrepreneurs in the Study Area

3.7 Summary
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3.1 INTRODUCTION

Women form a nation’s significant human resource. They should be sued as

instruments for the growth and development of economy of each and every state.

Women, on the other hand, are willing to take up business and lend their contributions to

the growth of the nation. Women are now ready to do all business and enter all

professions like trade, industry, engineering etc. The role and participation of women are

recognized and steps are being taken for the promotion of women entrepreneurship,

women must be shaped up properly with other entrepreneurial traits and skills to face the

challenges of world markets, meet the changes in the trends, be competent enough to

sustain and strive for excellence in the entrepreneurial field. A complete entrepreneurial

development in a nation can be achieved by the participation of women and therefore the

growth and development of women entrepreneurs must be accelerated.

3.2 GROWTH OF WOMEN ENTREPRENEURS AT THE GLOBAL LEVEL

The field of entrepreneurship has recently gained a vast popularity over the whole

world. The rate of women becoming entrepreneurs is high when compared to men.

The faster growing groups of women in United States are women entrepreneurs.

In accordance with US International Revenue Service (IRS), Beauty parlors, dry cleaning

shops, photographic studios, textile mills, trucking firms, highway and construction firms

and such other dozens of business are owned by women. Women own 38 per cent of

small business in North America. It is calculated that the women owned enterprises

growth rate in some of the developing countries is higher when compared to the

developed countries. According to ILO Statistics, the growth rate is 24 per cent in
 59

Malaysia, 30 per cent in Thailand, 36 per cent in Philippines and 42 per cent in

Indonesia.1

Attention of international bodies has been attracted in recent years by the

problems of women in economic field. The period 1978-1985 has been declared as

“Decade for Women” the UNO. In November 1978 the UNIDO Preparatory Meeting on

the role of women in industrialization in developing countries was held at Vienna.

Various constraints which stand in path of effective participation of women in the

industrialization of developing countries have been identified by it.

United Nations’ The Secretary General has pointed out the inadequate

fundamental education and lace of sufficient suitable professional, technical and

vocational training as the main hindrances to equal access to employment in his report on

“Status and Role of Women in Education and in the Economic and Social Field” report

presented at the Thirty-Fourth Session of United Nations General Assembly.

At its 20th Plenary Meeting held on July 30 in 1980 at Copenhagen, Denmark, the

World Conference of the United Nations Decade for Women decided on a programme of

action aiming at promoting equal and complete opportunities and treatment of women in

employment, equality in remuneration for work of equal value and equal education and

training opportunities for women in both rural and urban areas.

Women workers, who have participated in the total work of their respective

countries at the global level, are presented in Table 3.1.

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TABLE 3.1
Women Work Participation in Global Level
Country Percentage

India 31.6

USA 45

U.K 43

Indonesia 40

Sri Lanka 45

Brazil 35
Source: Women Entrepreneurs in India, Arakeri, V. Shanta National Monthly Referred
Journal of Research in Arts and Education,Vol.No.1,Issue No.3,
ISSN 2277-1182, p.5.

Table 3.1 shows that among the countries, USA, Sri Lanka stand in the first

position in 45 per cent, U.K in the second place and Indonesia in the third place and

Brazil in the fourth place. India is in the last place among the countries shown in the

table. It can be seen that the growth of women entrepreneurs in India is not better than

other countries.

3.3 GROWTH OF WOMEN ENTREPRENEURS IN INDIA

If the society is a vehicle, both men and women are its two wheels. Contributions

of both women and men are required to the activities of building a nation. India has

about seven lakh villages, in which more than 70 per cent of its population lives. The

labour force in the rural sector is formed by 56 per cent of the male and 33 per cent of the

female. Women struggle in India for entrepreneurial freedom though more than 60 years
 61

have completed after the independence. They still face various socio-economic

problems.2

Women entrepreneurs in India comprise a small proportion of the total

entrepreneurs. The emergence of women entrepreneurs has been hampered by attitudinal

constraints, social traditions and kinship system. Due to the lack of technical knowledge

and little competition from men, Indian women have contributed for the most part to

household industries. The spread of education and growing awareness among women

have motivated women to enter the fields of engineering, electronics, energy and such

other industries.

In spite of the small number of such units, women start units for manufacturing

solar cookers, TV, capacitors, electronic ancillaries, and small foundries. The growth of

women entrepreneurs in the country has been accelerated by several government agencies

and voluntary organization like Mahilamandals and so on. Indian women have become

more career-minded, economically independent and more achievement-oriented. They

would like to widen their scope of work and taste the fruit of achievement.

But, now, the scenario is changing fast with modernisation, urbanisation and

development of education and business. Thus, the opportunities of employment for

women have increased drastically.

Numbers of Women Entrepreneurs Registered in India

Registered women entrepreneurs in India are shown in Table 3.2.

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TABLE 3.2
Numbers of Women Entrepreneurs Registered in India

Women No of Units No of Women

Rank Rank Percentage
Entrepreneurship States Registered Entrepreneurs

Tamil Nadu 9,618 1 2,930 2 30.36

Uttar Pradesh 7,980 2 3,180 1 39.84

Kerala 5,487 3 2,135 3 38.91

Punjab 4,791 4 1,618 4 33.77

Maharashtra 4,339 5 1,394 6 32.12

Gujarat 3,872 6 1,538 5 39.72

Karnataka 3,822 7 1,026 7 26.84

Madhya Pradesh 2,967 8 842 8 28.38

Other States and UTs 14,576 9 4,185 9 28.71

Total 57,452 18,848 32.82

Source: Report of MSMEs, 12th Five year plan2012-2017.

From above Table 3.2 discloses that Tamil Nadu stands first out of the total

number of units registered in India. Regarding the number of women entrepreneurs in

India, the first place goes to Uttar Pradesh followed by Tamil Nadu which holds the

second place. It is understood from the table that Tamil Nadu has taken more steps to

improve the growth and development of women entrepreneurs in Tamil Nadu with the

help of financial institutions and government agencies.

3.3.1 Various State Government’s Contribution

Several state governments in India like, Andra Pradesh, Kerala, Rajasthan,

Gujarat, Chandigarh, and Tamil Nadu have taken steps to promote women entrepreneurs.
 63

Women co-operative finance corporation for the development of women entrepreneurs

was set up by Andrapradesh government in1975. A package of incentives to be availed

by women entrepreneurs is offered by the Government of Haryana. Exemptions from

payment of stamp duty and of registration of electricity duty up to a certain period have

also been offered along with them.

It is formed in Gujarat under the leadership of the noted social workers and in

Ahmedabad, with the membership of milk mards, vegetable vendors, casual workers and

the like. Loan for setting up the units at the rate of 12.5 per cent p.a is provided by

women entrepreneurs’ scheme being operated by the Gujarat financial corporation. .

Kerala State becomes a model for the development of women entrepreneurs in

India. The number of Industrial units runs by women entrepreneurs in Kerala in1975-76

was 73. It increased to 4, 190 industrial Units in 1993-94. The women entrepreneurs in

Kerala occupy a top position in all industries from readymade garments to high tech

computers. The women entrepreneurs in Kerala are at the age group between 36 and 46

years. Special assistance programme for women entrepreneurs to provide managerial

grant and various subsidiaries has been formulated by the government of Karnataka.

Assistance to skilled and trained women entrepreneurs under various schemes to

women entrepreneurs has been extended by financial corporation in Rajasthan and the

Government effort like Mahila Mandal, STEP (Support of Training and Employment

Programmes, Training cum production centre, RMK (Rashtriya Mahila Kosh), TRYSEM

(Training of Rural Youth for Self Employment), DWCRA (Development of Women and

Children in Rural Areas) etc lend support to women entrepreneurs.

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In the State of Madhya Pradesh (M.P) major entrepreneurship activities are

Co-ordinate through Centre for Development of Entrepreneurship in Madhya Pradesh

(CRDMAP). The centre organizes special training programmes women for short and

long durations.3

3.3.2 . Problems for the Growth of Women Entrepreneurship in India

There are a number of problems regarding the growth of women entrepreneurship

in India, which are given below

1. Absence of Definite Agenda of Life

The educated women do not like the limitation of their life with in the narrow

boundary of the house. They want equal opportunity and respect from their partners as

well as from the society. However, in India some women have reached good positions in

the business world. Yet, most of the women are either illiterate or semi-literate in rural

India. They haven’t got a proper idea of self-esteem and self-respect. The question that

arises immediately is how they can attain self-respect and have a definite agenda to reach

a good position in the society.

2. Absence of Balance between Family and Career Obligations

Women in general are concerned about family duties. They show no equal

concern for the duties in career. Women in India dedicate much their lives for the

welfare and care of their family members. But they fail to use their talent to create extra

income source for their families. It will also make them self-reliant. Some women have
 65

no least idea of self-reliance and can never think of it. But women need the support of

the family members to succeeded in business and extend their business and management.

3. Poor Degree of Financial Freedom

There is very poor financial freedom for women in Indian families, especially in

uneducated and rural families. Women in these families can’t take any decision on their

own to take up entrepreneurship without the family members’ consideration. They have

to consider also social ethics and traditions for women. A woman can’t commence any

business or any economic activity to become independent even if she is financially

dependent. Thus the dependency has become a vicious one for women in India.

4. No Direct Ownership of the Property

There is no doubt that the right of property is given as a legal provision in India.

But the right to property for women is still a question mark. A very few women have on

paper the right of property, but they are actually not aware of this right. They become

aware of it when there are problems in the family due to family disputes. Most of the

women do not enjoy their right of property and they have been treated just as mere

relatives to the family. It is a cause which keeps them in a ‘pervasive cycle of poverty’.

5. Paradox of Entrepreneurial Skill and Finance

Women from both the economically poor and rich families suffer from the

paradox of “have and haven’t” skills of entrepreneurship. Women from economically

rich families have the capital to invest, but they may lack good entrepreneurial skills. On

the other side, women from economically poor family have good entrepreneurial skills,
 66

but they haven’t got any financial support from their family member or relatives. Thus

the problems of women entrepreneurship are in a state of paradox.

6. No Awareness about Capacities

Awareness about individuals’ capacity should be created through increasing the

level of education. It is very unfortunate that the educational system in India is facing a

failure in creating awareness of ability and capacity of women and their hidden talent and

power for handling economic activities. There is an increase in the level of education for

women and social awareness to the role that women play in society, but it applies only to

women in urban India and not in rural India. Environment in the urban area is favourable

for identifying and creating awareness about women capacity and capability for doing

many things. On the contrary, the atmospheres in the rurual areas are unfavourable for

identifying and developing the capacity and ability of women.

7. Low Ability to Bear Risk

Women lead a protected life in India. The women in India are taught naturally by

several things to depend on the male members of her family from their girlhood period.

They are prevented from taking any risk even if they are ready to take any risk and have

the ability to bear it. But despite the restriction put on women, some women have proved

that they have the capacity to face and bear risks in entrepreneurial activities. They have

identified their rights, capacities potentials as well as they become aware of the potential

situations. As a result, they have entered various business and professions.

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However, entrepreneurial activities are not performed by the women in large scale

because of their lack of capacity. Therefore, the government should try through

conducting many awareness programmes for women to make them identify and develop

their risk bearing capacities.

8. Problems of Work with Male Workers

It is true that many women have skills for doing business, but they hesitate to

work with male workers and sometimes male workers are not ready to work with women

entrepreneurs. Most of women entrepreneurs are of the opinion that semi-educated or

uneducated class of workers cannot visualize and accept a "female boss" in their work

field.

9. Negligence by Financial Institutions

Banks and financial institutions play an important role of financers to

entrepreneurs in the developing countries for small and medium size firm operators do

not borrow from the capital market. But, these banks and financial institutions under

estimate the women entrepreneurs, are reluctant to provide credit to them because of their

traditional mind set about women.

10. Lack of Self-confidence

Women have a strong mental outlook and an optimistic attitude which create fear

in them of committing mistakes while working. Women’s potential for entrepreneurial

development cannot be accepted by the family members and the society, which always

look down them. Women must face boldly such situation and develop their
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self-confidence to break such barriers, but women in India feel that they need a well

secured life for developing their self-confidence. Thus they are not both mentally and

economically self-reliant.

11. Lack of Professional Education

The main causes for the low rate of women entrepreneurship in our country are

poverty and illiteracy. Parents are unwilling to send their daughters for studying

professional education. Sometimes, many women lack their entrepreneurial bent of mind

even though they take training through attending the entrepreneurial development

programme.

12. Mobility Constraints

One of the major problems for women for entrepreneurial development is

mobility. They never like to leave their place for business activities and prefer to stay

and do business in their residential areas. Mobility is an important quality for an

entrepreneur. As women entrepreneurs tend to do business in their local area of living

and are seen disproportionately in their areas of birth or living.

13. Lack of Interaction with Successful Entrepreneurs

Lack of interaction with successful entrepreneurs is also one of the problems in

women entrepreneurship in India. Successful entrepreneur become the role model in the

society for women with the ability of entrepreneurial activities and who undertake

economic activities to prove their ability. But, there is no enough provision for such
 69

interaction to inculcate knowledge and make them aware of the experiences of successful

women entrepreneurs.

3.3.3 .Development Activities of Women Entrepreneurs in India

In India, entrepreneurship for the development of women is an essential part of

human resource when compared with other countries. But, the growth of women

entrepreneurship is very low in India, especially in the rural areas. Moreover, women

from middle class are less enthusiastic to change their role because of their fear to face

the social backlash. The development is more found in the families at upper class society

in urban areas.

Several institutional arrangements have been made to protect and develop women

entrepreneurship in India. The Nationalized Banks and State Financial Corporations

advance loans to women entrepreneurs on a preferential basis. State Industrial

Development Corporations and District Industries Centers give loans, subsidies and

grants to small-scale women entrepreneurs. State level agencies help women

entrepreneurs in preparing project reports, purchasing machinery and building and

training and hiring staff. The Federation of Indian Chambers of Commerce and Industry

(FICCI), FICCI Ladies Organisation (FLO), National Alliance of Young Entrepreneurs

(NAYE) and other voluntary agencies lend assistance to women entrepreneurs. Under

the Social Education Scheme of Community Development Programme, Mahilasangams

(Women’s groups) were organized and women’s Industrial co-operatives were set up in

19582. Within the overall aim of promoting regional co-operation by strengthening

technology transfer mechanism in the Asia-Pacific Region, the Asian and Pacific Centre
 70

for Transfer of Technology have actively been promoting development of women

entrepreneurship and participation of women in the field of technology. The APCTT

implements projects which have been funded by multi-and bilateral donor organisations

for technical training for women and programmes for technology exposure training for

trainers in spreading technology to rural women. Under the banner of “Technology

sharing among grass-root women’s groups in the food processing sector” the Centre

organised a series of workshops and technical training programmes were organized by

the centre during 1997-1998.

In addition, various government agencies are involved in the development,

promotion, monitoring, evaluation and expansion of women entrepreneurship

programmes. Some of them are listed here, namely Entrepreneurial Development

Institute (EDI), National Small Industries Corporation Limited (NSIC), Small Industries

Development Organisation (SIDO), District Industries Centre (DIC), National Level

Standing Committee on Women Entrepreneurs (NLSCWE), National Research

Corporation of India (NRDCI), The National Alliance of Young Entrepreneurs (NAYE),

Indian Council of Women Entrepreneurs (ICWE), Federation of Indian Chambers of

Commerce and Industry (FICCI), National Commission of Self Employed Women in the

Informal Sector (NCSEWIS), World Association of Women Entrepreneurs (WAWE),

Associated Country Women of the World (ACWW), National Association of Women

Entrepreneurs and Executives (NAWEE), The Industrial Development Bank of

India(IDBI), Industrial Finance Corporation of India (IFCI), Self-Employed to Educated

Unemployed Youth (SEEUY), Women Development Project (WDP), Development of

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Women and Children in Rural Area (DWCRA), Science and Technology for Women

(STW), Training of Rural Youth for Self Employment (TRYSEM), National Institute for

Entrepreneurship and Small Business Development (NIESBUD). The women

entrepreneurs have to approach the nearest commercial banks, institutions and

co-operatives to know the different schemes and to take advantage of this programme of

assistance.4

Thus, a positive growth in women entrepreneurship has been noticed. As more

and more motivation and support are provided to them, it will definitely enhance their

socio-economic status, which is a pre-requisite for the growth and development of

women entrepreneurs.

3.3.4 Development of Women Entrepreneurs in Different Decades

1. Women Entrepreneurs of the Fifties

These women can be divided into two categories. The first category of women

created and managed entrepreneurial activity, where there was no male to generate

income. The woman abandoned her education and put aside her other aspirations and

became the generator of income for the family. The women of second category took

charge of the enterprise the husband had to avoid her own family and to be the losers.

There was a need of enormous courage to break through the social maps and

coding for both the category of women. However, such types of women required in the

fifties were only few. In many cases, the businesses were taken away by relatives and

the women and their families lived depending on them whether they had or did not have

the resources.
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2. Women Entrepreneurs of the Sixties

Sixties was the decade when many women educated in schools and colleges

began to have aspirations. Women married accepting the social coding of the

socio-cultural traditions. But soon they took small steps to start small one-woman

enterprises at home. These were still activities for self-occupation and engagement but

behind these were the seeds of aspirations to discover a meaning for the self and

economic choices. This was still not for economic autonomy or economic

self-sufficiency.

3. Women Entrepreneurs of the Seventies

A critical mass of women had their education and entered the work force as

professionals in this decade. New frontiers were opened by the women in this decade.

These women unlike their mothers had aspirations and ambitions. They opted for

self-employment or chose a one-woman enterprise or employed several others. It was an

active step swimming upstream and walking uphill. It was not the choice made out of

compulsions or helplessness, but it was the choice made actively to take charge of one’s

own life. It was choice which began for many in their parental family and continued in

their own personal homes.

i. Women thought work as an integral aspect of their life space.

ii. The social system and occupation were equally significant in the generation of

income and choice of career.

iii. A different role and life were aspired by educated and qualified women and their

mothers and grandmothers.

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iv. Homes, marriage, children and occupation were wanted by women.

v. The social traditional role behaviour from the older generation was accepted by

the women, but understanding and support from their husbands, colleagues and

children expected by them in their choice of occupation. They looked for

redefinition of systems and redesigned interfaces across the systems and

institutions they worked with.

vi. In their entrepreneurial roles, the women were willing to share their

responsibilities of the work and also wanted their enterprise to grow and succeed.

They wanted their voices to be heard as leaders to employees and as managers of

the enterprise to the outside business environment.5

4. Women Entrepreneurs of the Eighties

Both the social and occupational roles were accepted by the women entrepreneurs

of 50's, 60's and 70's. They tried to balance these two roles played by them. In eighties

the women were educated in highly sophisticated technological and professional

education. Several women had medical, engineering and similar other degrees and

diplomas. Many women entered the industry of their fathers and husbands as partners

with equal contribution. Women in other areas opened their own clinics and nursing

homes and many more women small boutiques, small enterprises of manufacturing and

entered garment exports. It was the decade of the breakthrough for women in several

fields and frontiers.

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5. Women Entrepreneurs of the Nineties

The women entrepreneurs, who belonged the nineties, were a different kind of

women qualitatively. They had a role model for them in the women of earlier

generations. Capability, competency, confidence and assertiveness were attributes of the

women of the nineties. These women nineties knew, what choice they had to make, had

a clear idea about what they wanted to do and went ahead of doing them and finally did

it. Nineties had given many women, who started an enterprise and fostered and nurtured

it to grow. There were a number of other women who entered their fathers’ or husbands’

enterprises and made a good contribution to them with their competencies and

capabilities. It happened sometimes that these women outshone “their fathers’ or

husbands’ names”. The traditional coding of their roles was questioned by the women of

nineties and they became very conscious of their own identify and voice. The economic

independence helped women acquire self-reverence and was able to discover that they

could deal with a situation themselves single-handedly. Women of present time have

become fearless, learn to live independently, travel alone, and rear children without the

help of anyone if there occurs any failure in married life or life partnership or life in

general. Some Women prefer to be single and lead a quiet satisfied life and are very

successful in their work and business. Many women and couples today chose to lead a

life without bearing children since they want to focus their attention fully on work,

relationships and enjoying freedom. Lots of women in nineties decided to have one child

in order to meet well the demands of home as well as work. They have been able to

integrate the multiple roles played by them in various different systems.

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6. The Women Entrepreneurs of the 21st Century

The 21st Century is the century of IT, telecom and financial institutions. The

expertise of women in all the industries have begun to emerge and women can be seen

emerging as a force. The new opportunities are boon for professionally trained and

enterprising women. However, the women still have to overcome a few barriers, pre-

conceived notions, strongly established assumptions and rules and gender problems in the

secondary environment.

The transition to the millennium is marked by the women creating new model of

being a daughter who takes her parents’ responsibility, a wife who wishes to make a new

home and a family and a mother who takes the charge of the children and develop them

suitable for the new millennium. She also plays the role of the entrepreneurs who

establishes an enterprise and discovers the relevance and the meaning of her life in

herself. She becomes aware of the uniqueness of her identity and accepts it and is ready

with her willingness to share the space. She searches simultaneously for respect, dignity

and mutuality. She is open to life without marriage and parenting without a father.

The combination of mother-son has shown that women have succeeded in

motivating their son to follow their path, whereas the son followed a way of the father

earlier. The next millennium offers a space beyond the present horizon, where there is

active engagement instead of mere hope, there are commitments instead of dreams, there

are choices instead of aspirations and there are convictions instead of ideals and there is

acknowledgement of one’s own uniqueness of identity.

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This discovery helps women create and build industrial empire from the initial

steps which they have taken. Women in India in the next millennium will have to cross a

major threshold and enter land which is unknown. They will have to travel on a path

where no one existed with a sense to discover.

They will have to encounter many things and lead life with excitement and

enthusiasm on other one side and threat, fears, anxieties and terror on the other side. The

women today will give their identity a new shape by having trust in their self, the

resource, to be generated, the courage to journey forth in a new land and to live through

the territories of uncharted land. The women will discover their different voice, which

has been suppressed through centuries, echoing the freedom for living and working and

joys derived from the enjoyment of beauty around.6

3.4 WOMEN ENTREPRENEURSHIP IN TAMIL NADU

Tamil Nadu has got an important place in the industrial map of India. Despite the

fact, it is very poor in the important industrialized inputs such as coal, coke iron, ore and

such other things. Tamil Nadu is an advanced industrial state among the other four states

in the southern region namely Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.

The industries such as cotton, textile, cement, engineering and chemicals rely

upon the countries in the northern region for requirements of raw material. It is not

profitable to establish such industrial units in Tamil Nadu from the economic point of

view. Yet, the entrepreneurs in Tamil Nadu have got an entrepreneurial zeal, overcome

the economic handicaps inspired with it and made Tamil Nadu an industrially developed

state. In order to fulfill some of the national objectives like balanced regional
 77

development, industrialization, import substitution, promotion of employment and so on,

the Government of Tamil Nadu has entered business. The unemployed women who have

traits of enterprising and hard working have been encouraged to set up agro-based

industries in their villages in Tamil Nadu. The development of women entrepreneurship

is given more importance by the state government. In Tamil Nadu special

entrepreneurship development programs are being conducted exclusively for the

promotion of women entrepreneurs by the agencies such as Small Industries Service

Institute at Chennai, the Industrial and Technology Consultancy Organization of Tamil

Nadu and the Tamil Nadu Industrial Investment Corporation.

3.4.1 Registered Entrepreneurs by the MSMEs

Registered entrepreneurs under the micro, small and medium enterprises in Tamil

Nadu are shown in the following Table 3.3.

TABLE 3.3
Entrepreneurs by the MSMEs at District Industrial Centres under the
Tamil Nadu during 2007-08 to 2013-14
Registered entrepreneurs for
Year Percentage
MSMEs at DICs (in Nos)
2007-2008 27309 6.25
2008-2009 32049 7.33
2009-2010 41799 9.56
2010-2011 57902 13.25
2011-2012 70639 16.16
2012-2013 90974 20.81
2013-2014 116393 26.63
Total 387065 100.00
Source: Entrepreneurs Memorandum, Ministry of Micro, Small & Medium Enterprises,
Nirman Bhawan, New Delhi, (Part-II), p.3.
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Table 3.3 shows the registered entrepreneurs under the micro, small and medium

enterprises in Tamil Nadu during the years from 2007-2008 to 2012-2013. The total

numbers of registered entrepreneurs are 6.25 per cent (27309 in numbers) in the

beginning of year 2007-2008 and the same rose to 26.63 per cent (90974 in numbers) by

the end of 2012-2013. The registered entrepreneur with continuous increase was

witnessed during this period.

3.5. ENTREPRENEURSHIP DEVELOPMENT IN SIVAGANGAI DISTRICT

Sivagangai, is one of the few spices trading centers of south India. It became a

district on the 15th March 1985. Traders and merchants make a ‘beeline’ to Sivagangai to

buy and sell their goods and services. The humid climate is one of the factors responsible

for the growth of textile industries. The growth of textile industries led to the growth of

numerous small scale and ancillary units. Sivagangai district has specialized institutions

in engineering and medicine. These teacher training organizations play an active role in

the formation of technical and managerial facilities for the people of Sivagangai district.

The growth of entrepreneurship has been phenomenal and its contribution to the

nation is impressive. Entrepreneurs emerging from Sivagangai have branched off and

extended their activities elsewhere. They have also provided a multiplied effect in

industrialization. There have been many cases where small-scale industrial firms have

attained the status of large-business houses in Sivagangai.

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Sustainable entrepreneurial development can be said to occur when industry

progresses from an embryo stage to the stage of growth and maturity. The same should

be related to the generations of entrepreneurs. Excellent cases can be found in

Sivagangai where entrepreneurship has been sustained for two or three generations. But

as far as women entrepreneurship is concerned, all belong to the first generation of

entrepreneurs.

Sivagangai District contains different social categories from workers to

entrepreneurs. Technical education and industrial development are highly responsible for

this. The family atmosphere has also helped to create many women entrepreneurs.

Family entrepreneurship has played an important role in the development of enterprises

in the district as in countries like Germany, United Kingdom and U.S.A. Some of the

local entrepreneurs are highly responsible for the development of enterprises in general.

There are many avenues available for promoting women entrepreneurship in this district.

Several welfare schemes and voluntary organizations have also been established for the

development of women entrepreneurship in Sivagangai district.

Sivagangai District Small Scale Industries Association and Mahalir Thittam

Projects and other voluntary organizations are some of the associations, which promote

women entrepreneurship in this district. The Scheme for the establishment of District

Industries Centre (DIC) was introduced on 1st May 1985 with the intention that under a

single roof, a rural entrepreneur should be able to get necessary benefits of guidance

about all matters related to industries. The Sivagangai District Industries Centre was
 80

commenced in the year 1985 to promote entrepreneurship development. It has been

conducting a training programme exclusively for women entrepreneurs.

3.5.1 REGISTERED WOMEN ENTREPRENEURS IN SIVAGANGAI DISTRICT

Total number of registered women entrepreneurs in District Industries Centre in

Sivagangai District as shown in Table.3.4

TABLE 3.4
Registered Women Entrepreneurs Six Taluks of Sivagangai District
Name of the Taluk Registered Women Entrepreneurs

Karaikudi 661

Tiruppattur 982

Devakottai 518

Manamadurai 612

Sivagangai 1148

Ilayankudi 206

Total 4127
Source: District Industries Centre Sivagangai.

It is understood from Table 3.4 that there are 4127 register under Sivagangai

District of Tamil Nadu. Out of which Sivagangai holds 1148 unit. Thiruppattur taluk

comes to the second position in term of 982 units and next comes Manamadurai with 612

units. Based on the available data in table Karaikudi, Manamadurai and Devakottai have

more than 500 registered units where as the growth of women entrepreneurs in

Illayankudi is least satisfactory.

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3.5.2 Role of DIC in Sivagangai District

Till 1978, the Directorate of Industries was the principal agency in a state for

looking after the development of small, tiny, village and cottage industries’. However,

with the coming into being of various development and financial corporation’s its role

has become regularity. As result, the promotional aspect of small-scale industries has

been relegated to the background. A District Industries Centre is an institution at the

district level which provides service and facilities to entrepreneurs at one and the same

place so that they may set up small and village industries. The DIC also arranges for the

supply of scarce raw materials and in marketing the produced goods. Under the DIC,

import assistance is extended to industrialists.

3.6 THE GROWTH AND DEVELOPMENT OF WOMEN ENTREPRENEURS

IN THE STUDY AREA
The growth and development of women entrepreneurs in the study area is

explained below through their activities such as location of the industry, ownership of

building, type of industry, nature of enterprises, type of labour employed, method of

production and sources of capital.

3.6.1 Location of the Industry

The enterprise may be located in rural, urban and semi-urban areas. When a unit

has all the basic facilities needed without any investment, normally it can utilize the

available resources effectively, efficiently and can grow well. A unit can be located in

other area for the availability of his land or for personal reasons. These may influence its

growth. Thus the location of the unit was considered to have influenced by the growth of
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industrial units. The enterprises run by women entrepreneur in Sivagangai District are

both in rural and urban areas. Table 3.5 reveals the classification of enterprises on the

basis of location.

TABLE 3.5
Location of the Industry
Sl. No. Location No. of Respondents Percentage to Total

1. Urban 291 63.26

2. Rural 144 31.30

3. Semi-urban 25 5.44

Total 460 100.00

Source: Primary Data.

It is observed from Table 3.5 that out of 460 women entrepreneurs, 291 (63.26%)

of the enterprises are located in urban areas, 144(31.30%) of the enterprises are located in

rural areas and the remaining 25(5.44%) of the enterprises are located in semi-urban

areas.

Table 3.5 shows that, the nearly two-thirds of the enterprises (63.26%) are located

in urban areas.

3.6.2 Status of the Industry

Most of the women entrepreneurs have started industrial units such as registered

unit and unregistered unit. The details are presented in Table 3.6.
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TABLE 3.6
Status of the Industry
Sl. No. Status of Unit No. of Respondents Percentage to Total

1. Registered 404 87.83

2. Unregistered 56 12.17

Total 460 100.00

Source: Primary Data.

It could be seen from Table 3.6 that out 460 entrepreneurs, 404 (87.83%) of the

women entrepreneurs have started the registered industrial units and the remaining

56(12.17%) of the entrepreneurs have started the unregistered industrial units. Most of

the women entrepreneurs (87.83%) have started the registered industrial units.

3.6.3 Place of Business

Women have to play dual role both in the family and business. It will be easy for

them to look after their business and their family, if the working place is nearer to their

home. Table 3.7 reveals the place of business.

TABLE 3.7
Place of Business
Sl. No. Place of Business No. of Respondents Percentage to Total

1. Attached to the residence 193 41.96

2. Not 267 58.04

Total 460 100.00

Source: Primary Data.
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Table 3.7 reveals that out of 460 women entrepreneurs, 193 (41.96%) of the

enterprises are attached to the residence and the remaining 267 (58.04%) of the

enterprises are not attached to the residence. Most of the enterprises (58.04%) are not

attached to the residence.

3.6.4 Ownership of Building

Women entrepreneurs are run by the industrial units either in their own buildings

or in rented premises. Table 3.8 shows the classification of enterprises on the basis of

ownership of the building.

TABLE 3.8
Ownership of Building
Sl. No. Ownership No. of Respondents Percentage to Total

1. Owned Building 42 15.73

2. Rented 90 33.71

3. Leased 124 46.44

4. Industrial Estate 11 4.12

Total 267 100.00

Source: Primary Data.

It could be seen from Table 3.8 that 15.73 per cent of the enterprises function in

their own buildings and 33.71 per cent in rented buildings. Enterprises which are

functioning in leased buildings amounted to 46.44 per cent and the remaining 4.12 per

cent of the enterprises are functioning in the Industrial Estate. More than three-fourths of

the enterprises (46.44%) are run by women entrepreneurs function in their leased

buildings.
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3.6.5 Type of the Industry

Based on the capital requirements and functional convenience, respondents have

chosen different types of industry. The important types of industrial units are presented

in Table 3.9

TABLE 3.9
Category/Type of the Industry
Number of No. of Percentage to
Sl. No. Particulars
Responses Respondents Total

1. Chemical 34 460 7.39

2. Engineering 91 460 19.78

3. Electrical and Electronics 80 460 17.39

4. Food and Food based 40 460 8.70

5. Garments 18 460 3.91

6. Handicrafts 35 460 7.61

7. Poultry and Animal Feeds 55 460 11.96

8. Tiles, Marbles and Granites 38 460 8.26

9. Printing, Publishing and 33 460 7.17

Allied

10. Leather and Leather based 21 460 4.57

11. Plastic based 22 460 4.78

12. Tyre and Retreading 25 460 5.43

13. Miscellaneous 26 460 5.65

Source: Primary Data.

It is seen from Table 3.9 that 518 responses have collected from 460

entrepreneurs. Out of 460 respondents, 34 (7.39%) entrepreneurs have preferred to start

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chemical units, 91 (19.78%) of them have preferred to start engineering units,

80(17.39%) of them have preferred to start the electrical and electronic units, 40(8.70%)

of them have preferred to start the food and food-based units, 18(3.91%) of them have

preferred to start the garment units, 35(7.61%) of them have preferred to start handicrafts

units, 55(11.96%) of them have preferred to start poultry and animal feeds industry,

38(8.26%) of them have preferred to start tiles, marbles and granites industrial units,

33(7.17%) of them have preferred to start the printing, publishing and allied industrial

units, 21(4.57%) of them have preferred to start leather and leather based industries,

22(4.78%) of them have preferred to start plastic-based industrial units, 25(5.43%) of

them have preferred to start tyre and retreading business units and the remaining

26(5.65%) of the entrepreneurs have preferred to start miscellaneous units. Most of the

respondents (19.78%) have preferred to start the engineering units.

3.6.6 Nature of Enterprises

In general, nature of enterprises is classified into two categories such as labour

intensive and capital intensive. The main advantage of industrial units is that they can

provide more employment opportunities with less investment. Most of the industrial units

are labour intensive and have a high potential in employment generation. Some industrial

units make use of certain machines and equipments for doing certain functions. If the

units are more labour intensive, such units will face additional problems and are forced to

meet additional expenses for their growth. This makes the benefits received by the units

of labour intensive be less and so their growth may be less. Hence, the nature of unit

influences the growth. The details are presented in Table 3.10.

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TABLE 3.10
Nature of Enterprises
Sl. No. Nature of Enterprise No. of Respondents Percentage to Total

1. Labour Intensive 332 72.17

2. Capital Intensive 128 27.83

Total 460 100.00

Source: Primary Data.

It is inferred from Table 3.10 that 72.17 per cent of the units are labour intensive

units and the remaining 27.83 per cent of the units are capital intensive units. More than

three-fourths of the small scale units (72.17%) run by women entrepreneurs are labour

intensive units.

3.6.7 Type of Labour Employed

The type of labour employee can be classified into three category such as

permanent employee, temporary employee and employee on the basis of consolidated

salary. The details are given in Table 3.11

TABLE 3.11
Type of Labour Employed
Type of Labour
Sl. No. No. of Respondents Percentage to Total
Employed

1. Permanent 231 50.22

2. Temporary 212 46.08

3. Consolidated 17 3.70

Total 460 100.00

Source: Primary Data.
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It could be seen from Table 3.11 that out of 460 entrepreneurs, 50.22 per cent of

the employees have worked permanently in the enterprises, 46.08 per cent of them have

worked temporarily in the industrial units and the remaining 3.70 per cent of the

employees have worked on the basis of consolidated salary. Hence, it is concluded that

most of (50.22%) the employees have worked permanently.

3.6.8 Method of Production

There are different methods of production produced by the members of

Entrepreneurs. The method of production is categorized such as mechanical, manual and

both. These details are presented in Table 3.12.

TABLE 3.12
Method of Production
Sl. No. Method of Production No. of Respondents Percentage to Total

1. Mechanical 32 6.96

2. Manual 98 21.30

3. Both 330 71.74

Total 460 100.00

Source: Primary Data.

It is clear from Table 3.12 that out of 460 respondents, 32(6.96%) of the

respondents have produced mechanical products, 98(21.30%) of them have produced

manual products and the remaining 330(71.74%) of them have produced both mechanical

and manual products.

It is evident from the above analysis that 330(71.74%) majority of the

entrepreneurs have produced both mechanical and manual products.

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3.6.9 Sources of Capital

The sources of capital indicate from where the enterprises mobilized their capital.

Since the sources of capital determine the cost of capital and also the profitability of the

enterprises, it is included in the present study. In general, the enterprises may mobilize

their capital from one or more sources. So, in the present study, the respondents are

allowed to represent multi-response on the sources of capital. The sources of capital in

the study are classified into own, friends and relatives, private money-lenders, chit funds,

commercial banks and self-help groups. The percentage to the total for each source is

found out to validities the importance of the source of capital among the rural

entrepreneurs.

TABLE 3.13
Sources of Capital among the Entrepreneurs
Sl. No. Sources of Capital No. of Respondents Percentage to Total
1. Own Fund 78 16.96
2. Friends and Relatives 53 11.52
3. Private Moneylenders 44 9.56
4. Chit Funds 64 13.91
5. Commercial Banks 182 39.59
6. Self-help Groups 39 8.46
Total 460 100.00
Source: Primary Data.
It could be known from Table 3.13 that the important sources of capital among

the rural entrepreneurs are own, friends and relatives, private moneylenders, chit funds,

commercial banks and self-groups since the respective percentage to the total are 16.96

per cent, 11.52 per cent 9.56 per cent 13.91 per cent, 39.59 per cent respectively. The
 90

least source of capital among the rural entrepreneurs is Self Help Groups which records

just 8.46 percent.

Hence, it is concluded that most of (39.59%) the entrepreneurs’ sources of capital

are borrowed from commercial banks.

3.7 SUMMARY

This chapter has dealt with the significance of the women entrepreneurs as a

human resource for the development of economy of a state and nation and the creation of

employments for themselves and others. It has shown the entry of women in all sorts of

business. Now, they are not only the businesses prescribed for women but also the ones

men do. It has also displayed that women entrepreneur as women are still facing many

problems, which are obstacles in their path to do business well and come out ultimately

successful and which have recently attracted the attention of the universal bodies. The

study of this chapter has examined the role of tradition and such other things in the

prevention of the emergence women entrepreneurs in large number in India.

Various problems like the absence of definite agenda of life and balance between

family and career obligation, poor degree of financial freedom no awareness of capacity,

low ability to bear risk and so on have been analyzed. A detailed study has been done

on the growth and development of women entrepreneurs form fifties up to 21st century.

The place of women entrepreneurs in Tamil Nadu and the study area of Sivagangai have

been assessed. The steps taken by various state government of India for the promotion of

women entrepreneurs has also been discussed.

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REFERENCES

1. Anita Mehta and Mukund Chandra Mehta, Rural Women Entrepreneurship in

India, Opportunities and challenges, International Conference on Humanities,
Geography and Economics (ICHGE'2011) Pattaya Dec. 2011, p.313.
2. V. Arakeri Shanta, Women Entrepreneurship in India, National Monthly
Refereed Journal of Reasearch in Arts and Education, ISSN 2277-1182, volume
No.1,Issue No.3, pp.3-5.
3. Rashmi Gopinathan, Impact of Women Entrepreneurship Development on
Families: A Study of Women run micro-enterprises in Selected districts of
Maharashtra. Thesis Submitted to the Padmashree Dr. D. Y. Patil University, June
2010
4. Indira J. parikh, A Reflection of the Indian Women in Entrepreneurial World,
Indian Institute of Management, Ahmedabad, India, August 2005, pp.4-12.
5. World Conference of the United Nations Decade for Women: Equality,
Development and Peace: Copenhagen, Denmark, July 1980.p.14
6. World Conference of the United Nations Decade for Women: Equality,
Development and Peace : Copenhagen, Denmark, July 1980.pp.17-30.