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Tuesday, June 19, 2018

WOMEN ENTREPRENEURS- CHALLENGES AND SOLUTIONS WITH FOCUS ON SMEs [PART 2]

ABHIJEET KUMAR PANDEY
DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY,
VISAKHAPATNAM

(First Published on Volume 01 Issue 02, July 2016)
Read similar articles here


[Image Courtesy: Pexels.com]

Obstacles for Women Entrepreneurship in India:

·         Lacking certitude: Though woman may be having the required capability and skill to venture into the global market, they are still not progressing to a great extent due to social stigma and the lack of support from their families. This results in them losing their confidence while managing the business.

·         Cultural restraints: Women are supposed to be cultured and for this they are supposed to stay indoors and take care of the household chores. The main barrier for the women to pursue careers in business is the problem of simultaneously managing the household chores, looking after the family and managing the business of efficiently.

·         Market-related risks: Lack of proper contacts and the proper knowledge of the market hinder the growth of women entrepreneurs. Also, women being socially deprived of some benefits, they are unable to properly advertise their products. Also, they lack the knowledge of changing market and the innovations and developments.

·         Administrative restraints: women must have proper skills of managing a business and the skills of cooperating with employees in the proper and beneficial way. Sometimes, the employees take their employers lightly considering them to be less strict as their women. Also, women pursuing a career in business must excel in decision-making and develop good business skills.
·         Financial hindrances: Mostly women are unaware of the various financial benefits provided by various institutions in the country. This hinders the growth of their entrepreneurship ventures. Also, lack of inherent property and assets and low economic savings hinders the growth.
·         Lack of proper training: Various workshops and training sessions are being made available by many institutions. These programs need to be more gender specific. Various programs need to be charted out depending upon the skills and knowledge of the women.

WAYS TO OVERCOME THE OBSTACLES AND CHALLENGES
Some of the suggestive measures overcome the hindrances for the development of women entrepreneurship are:
·         Proper technical education to the women and the opening of women development cells.
·         Improvement of identification mechanism of new enterprise and Administrative training.
·         Assistance in project formulation and follow-up of training programs.
·         Credit facilities, financial incentives and subsidies.
·         Adequate support to the women enterprises by various institutions.
·         Personality Development Programmes for rural as well as urban women entrepreneurs.

GOVERNMENT INCENTIVES AND POLICIES
According to the Ministry of MSME, various programs are being conducted by several government and non-government organisations. According to the Ministry, various programmes including Entrepreneurs Development Programs (EDPs), are being conducted by the Micro, Small and Medium Enterprises Development Organisation (MSME-DO), the various State Small Industries Development Corporations (SSIDCs) and by several nationalised banks.[1]
Also, one of the most important incentives granted by the Ministry is the ‘Outstanding Women Entrepreneur of the Year’ award for the recognised achievements. A Woman Cell has also been opened by the office of Development Commissioner (MSME) to provide coordination and assistance to the women entrepreneurs facing specific problems.[2]
Another one of the most important schemes of the Government is the Income Generating Scheme, implemented by the Department of Women and Child Development, which provides assistance for training as well as income generating activities to make women economically dependent.
Various other schemes like the Market Development Assistance Scheme have been introduced to encourage the participation of the women entrepreneurs in the global market.[3]
Many Mini Tool Rooms and Training Centres and Testing Centres have been established to provide quality equipment, machines and tools and also to provide quality testing equipment for testing various raw and finished products.[4]
Various Schemes introduced by the Government of India for the development of Women Entrepreneurs are:
§  Trade Related Entrepreneurship Assistance and Development Scheme (TREAD):
The objective of this scheme is to encourage women to start their ventures. The Government launched this scheme during the 11th Plan. The scheme envisaged economic empowerment of women through the development of their entrepreneurial skills in non-farm activities. There major three parts of the scheme are: Government of India provides grant up to 30% of the total cost of the Project to the Non-Government Organizations (NGOs) for promoting entrepreneurship among women. The remaining 70% of the total project cost is financed by the lending agency as a loan for undertaking activities as envisaged in the project. Up to Rs.1 Lakh per program will be granted by the Government of India to training institutions/NGOs for providing training to the women entrepreneurs.[5]
§  Micro & Small Enterprises Cluster Development Program (MSE-CDP):
a) Existing Clusters:
A group of enterprises (normally 20 or more) producing same or similar products/services are described as Clusters. The Cluster Development Program focuses on a diagnostic study of identified clusters of traditional skill-based MSEs; it identifies suitable technologies for the development of entrepreneurship and facilitates adoption of available technology depending upon the specific needs of the end users. The Cluster Development Program goals at improving competitiveness, technology, adoption of best manufacturing techniques, marketing of products/services, employment generation, etc.[6]
b) Physical Infrastructure:
The Ministry of MSME announced Integrated Infrastructural Development (IID) Scheme to provide infrastructural facilities like exhibition/display centers, telecommunications, power distribution network, roads, water facility, raw materials, technological backup services, etc. to the developed sites. This scheme has been included in the MSME Cluster Development Program.[7]
As of today, the Government of India grants 40% of the total cost of the project (maximum Rs.2 Crore) to create the physical infrastructure for women enterprises. The Ministry of MSME is trying to enhance the value of grant up to 80% of the total project (maximum Rs.10 Crore).
§  Credit Guarantee Fund Scheme:
The Government of India had introduced the Credit Guarantee Fund Scheme in May, 2000. This scheme provides credit to Small Scale Industries, particularly for loans up to Rs. 25 lakh with no collateral/ third party guarantees. This Scheme is being operated by the Credit Guarantee Fund Trust for Small Industries (CGTSI) set up jointly by the Government of India and Small Industries Development Bank of India (SIDBI). In the case of women enterprises, the guarantee cover is up to 80% of the credit subject to maximum guarantee limit of Rs. 20 Lakhs.[8]
§  Help for Entrepreneurial and Managerial Development:
Micro, Small and Medium Enterprises Development Institutes (MSME-DIs) regularly conduct Entrepreneurship Development Programs for existing and potential entrepreneurs. It has been proposed that such beneficiaries are to be paid a stipend of Rs.500 per month to encourage more entrepreneurs from among the SC/ST, women and physically challenged groups.[9]

§  Scheme for Women Entrepreneurs to Encourage Small & Micro Manufacturing Units:
The office of Development Commissioner (MSME) has formulated a scheme for women entrepreneurs to support Small & Micro manufacturing units owned by women. This Scheme aims at developing overseas markets and to enhance participation of representatives of Small and Micro Enterprises under Small Industries Development Organisation (SIDO) stall at International Trade Fairs and Exhibitions, to enhance export from such units.
The goal of enhancing participation of women entrepreneurs in 25 different International Exhibitions has been included in this Scheme during the 11th Plan.
§  Mahila Coir Yojana:
This Scheme provides self-employment opportunities to the rural women artisans in regions producing coir fibre. Mahila Coir Yojana is a woman-oriented self-employment scheme in the coir industry. The scheme includes distribution of motorized ratts for spinning coir yarns to women artisans after giving training. Under this Scheme, Women spinners are trained for two months in spinning coir yarn on motorized ratt at the Coir Board training centers. A stipend of Rs.500 per month is also paid to the trainees.[10]
At present, the Government of India has around 27 schemes for women entrepreneurs. They are:[11]
Ø  Integrated Rural Development Programme (IRDP)
Ø  Khadi And Village Industries Commission (KVIC)
Ø  Training of Rural Youth for Self-Employment (TRYSEM)
Ø  Prime Minister’s Rojgar Yojana (PMRY)
Ø  Entrepreneurial Development Programme (EDPs)
Ø  Management Development Programmes
Ø  Women’s Development Corporations (WDCs)
Ø  Marketing of Non-Farm Products of Rural Women (MAHIMA)
Ø  Assistance to Rural Women in Non-Farm Development (ARWIND) Schemes
Ø  Trade Related Entrepreneurship Assistance and Development (TREAD)
Ø  Working Women’s Forum
Ø  Indira Mahila Yojana
Ø  Indira Mahila Kendra
Ø  Mahila Samiti Yojana
Ø  Mahila Vikas Nidhi
Ø  Micro Credit Scheme
Ø  Rashtriya Mahila Kosh
Ø  SIDBI’s Mahila Udyam Nidhi
Ø  Mahila Vikas Nidhi
Ø  SBI’s Stree Shakti Scheme
Ø  NGO’s Credit Schemes
Ø  Micro & Small Enterprises Cluster Development Programmes (MSE-CDP).
Ø  National Banks for Agriculture and Rural Development’s Schemes
Ø  Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP)
Ø  Priyadarshini Project- A program for Rural Women Empowerment and Livelihood in Mid-Gangetic Plains
Ø  NABARD- KFW SEWA Bank Project

CONCLUSION
Today, the society is changing and thus the economy of the nation. India has become one of the most established economies in the world. Studies have shown that gender equality helps in the development of economies. In this changing world, women are venturing out in the global market and opting for entrepreneurship, and they have been quite successful in this venture. This venture of women helps in improving the economic conditions of the family as well as developing the economy of the Nation. But some of the obstacles and hindrances need to be curtailed out. The Government needs to particularly attend to the problems faced by the women entrepreneurs, and more and more incentives must be launched by the Government to encourage women to opt for entrepreneurship.



[1] www.dcmsme.gov.in/schemes
[2] http://www.dcmsme.gov.in/MSME-DO/sido.htm
[3] http://dcmsme.gov.in/MSME-DO/SSIMDA.htm
[4] Main Incentive Schemes of Ministry of MSME, Government Of India, www.dcmsme.gov.in
[5] http://www.dcmsme.gov.in/schemes/treadwomen.htm
[6] http://smallb.sidbi.in/policies-schemes/micro-small-enterprises-cluster-development-programme-mse-cdp
[7] http://www.dcmsme.gov.in/schemes/iidscheme.htm
[8] http://smallb.sidbi.in/credit-guarantee-fund-trust-micro-small-enterprises
[9] http://msmehyd.ap.nic.in/Skill%20Development.htm
[10] http://economictimes.indiatimes.com/topic/Mahila-Coir-Yojna-Scheme
[11] Amit Kumar, “Women as Entrepreneurs in India,” Noida International University
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