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Women Enterpreneurship

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Women-Empowerment through Women Entrepreneurship
(A study of Faizabad Zone of Uttar-Pradesh)

Nivedita Dwivedi Lecturer College of Home Science Narendra Dev University of Agriculture & Technology, Kumargunj, Faizabad, Uttar-Pradesh (India) E-mail: nivedita.tewari@gmail.com & Dr. Amit Kumar Dwivedi Assistant Faculty Entrepreneurship Development Institute of India (EDII) P.O: Bhat, Gandhinagar, Gujarat (India) PIN: 382 428, Phone: +91-079-23969153 E-mail: akdwivedi@ediindia.org, dwivedipgdm@gmail.com Mobile: +91-9725525219

Keywords: Women-empowerment, Entrepreneurship, Beauty-parlor business, Socio-economic development.

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Electronic copy available at: http://ssrn.com/abstract=1886250

Women-Empowerment through Women Entrepreneurship
(A study of Faizabad Zone of Uttar-Pradesh) Nivedita Dwivedi & Amit Kumar Dwivedi “An enterprise owned and controlled by a women having a minimum financial interest of 51 percent of the capital and giving atleast 51 percent of the employment generated in the enterprise to women".(Govt. of India) Women are regarded as better half of the society. In traditional Indian societies, they were confined to four walls. In modern society, they come out of four walls to participate in all types of activities including entrepreneurship. In India empowering women through entrepreneurship has become an integral part of our development efforts because of 3 important reasons; i). Women development, ii). Economic growth and iii). Social stability. Present study is conducted to analyse the contribution by womenentrepreneurs in economic development of nation and also to find out the current problems, which they are facing in their businesses. The study is conducted in Faizabad zone of Uttar-Pradesh. In present study it is found that this enterprise is appropriate for those women entrepreneurs who are having problem to outside home due to family responsibility or their culture. They can start this venture inside their home.

Keywords: Women-empowerment, Entrepreneurship, Beauty-parlor business, Socio-economic development, Correlation.

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Electronic copy available at: http://ssrn.com/abstract=1886250

Women-Empowerment through Women Entrepreneurship
(A study of Faizabad Zone of Uttar-Pradesh) Nivedita Dwivedi & Amit Kumar Dwivedi (I) Introduction Women have been regarded as the nuclei of nation and builder and molder of its destiny. It is fact that,’ when there is development of women, family develops, the society develops and the country develops’. They are the catalyst of development and with them we prosper, but without them we are poor. Time went out when Indian women are confined to four walls of their homes with their immense strength and potential. Now they are the important part of economic development. In India, early phases of women

entrepreneurship was regarded as extension of their kitchen activities mainly to 3 Ps, viz. Pickles, Powder and Pappad. But with growing awareness women have started shifting from 3 Ps to 3 modern Es, viz. Engineering, Electronics and Energy. Some of the successful women entrepreneurs of our country are Mrs. Shanaz Hussain, Mrs. Neena Malhotra, and Tarala Dalal etc. The government of India has defined women entrepreneurs as, It will take time in changing attitude, technological innovation and modern ways of thinking to reduce disparity between man and women to bring equality. According to previous studies women entrepreneurship is an important tool for empowering women. The word empowers means to bestow power. Empowerment of Women through entrepreneurship involves access to resources and markets, actual ownership and active control, these may be the three important factors for the empowering women. In the process of empowerment, women should consider their strength, weakness, opportunities and threats and move forward to unfold their own potential to achieve their goals through self development. In our country with such a huge population and problems of unemployment, women entrepreneurship happens to be one of
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the best tool for women empowerment. The women entrepreneurs need not to be highly educated. It is sufficient that they possess basic knowledge of language and entrepreneurial skills. As women have to fulfill dual roles, entrepreneurship is a more suitable profession than regular employment either in public or private sector. Women entrepreneurship is the process where women take, lead and organize a business or industry and provide employment opportunities to other. Women are venturing in all kind of enterprises. Women entrepreneurs are considered to be most important economic agents for economic augmentation of the country. They are the owners, producers, cocoordinators, sellers, decision makers, risk takers, innovators etc.They also generate employment opportunities and contribute in improving family’s living standard. Today’s women must supplement the family income using their potential and skills that they possess. Her skills and competencies may be sharpened and turned by way of training. Thus, women in India, no longer need to wait for employment outside home. They can successfully start their enterprise and earn their livelihood.

(II) Literature Review Women need for effective enterprise management, a large quantity of co-operation and encouragement in the sphere of activity, at all levels home and in society and from governmental organisations. (Rajani & Sarada, 2008). Training approach is important for helping women in non-traditional, high skill, male dominated activities and also to build-up the confidence among women to meet their requirements (Kirve and Kanitkar, 1993). Training to develop good entrepreneurial skills is useful and essential to women (Padmavati, 2002; Sathyasundaram, 2004) Entrepreneurial innovation is considered a key factor in business survival and success (Schumpeter, 1934). According to Drucker (1994, p 17), ‘innovation is a specific instrument of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service’.
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Successful innovation procedures can be learned and practiced. Thus entrepreneurs need to understand and apply the principles of successful innovation because there are plenty of entrepreneurial opportunities within the areas of change (Drucker, 1994). Innovations are ‘the outcome of the innovation process, which can be defined as the combined activities leading to new, marketable products and services and/or new production and delivery system’ (Burgelmann and Maidique, 1996). Women Entrepreneurs need encouragement and support from their families, social circles and most importantly the government. Government should make initiations to provide financial supports to women

entrepreneurs. (Shashtri and Sinha, 2010). Entrepreneurs develop new products and services for a market niche, or confront established firms with better quality, additional features or lower prices. These activities are identified with the process of creative destruction and defined as entrepreneurship (Schumpeter, 1947). The innovation advantage of large firms tends to be in industries that are capital-intensive, advertising-intensive and highly unionized. On the other hand, industries that are highly innovative, small firms have the advantage (Audretch, 2004). Therefore, innovation in small firms can be more efficient and effective (Vossen, 1998). The literature stresses several barriers for small firms to innovate successfully. The lack of financial resources, shortfall in marketing and management expertise, and weaknesses in external information and linkages are factors that limit their competitiveness (Freel, 2000; Rothwell, 1994). By contrast, smaller firms have several advantages. Because of their smaller size, they are more flexible and have closer contact and relationships with their customers. This enables them to respond faster to developments in the market, especially to technical changes (Scozzi and Garavelli, 2005). A crucial factor contributing to the occurrence of networking

opportunities was based on attendance at social functions such as conferences. Conferences are identified as an effective mechanism in terms of getting to
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meet potential customers, keeping up to date with the latest developments and analyzing competitors’ activities (McAdam and McAdam, 2006). In the early stages of new firm creation, information networks represent an important resource for the entrepreneurial firm. Effective information networks enrich the entrepreneur’s environment, thereby enhancing the other networks and processes in which the entrepreneur engages. The information-seeking behavior undertaken by the entrepreneur is very personal and is primarily a social encounter. The entrepreneur will rely on any informal contacts made throughout his/her personal life as well as business career (Johannisson, 1986). Access to capital is crucial to the development of small businesses. The uses of capital are multitudinous and range from investments in fixed assets to the adoption and installation of new and better technology for business enhancement. Access to working capital financing is also necessary to smooth out fluctuations in income due to differences in the timing of production and sales. Lack of sufficient capital tends to affect SMEs’ ability to develop new products and services or to grow so as to meet demand (Abor and Biekpe, 2006). Heilbrunn (2004) posited that 90% of business start-ups that failed did so because of the lack of management skills of the owners. Similarly, the lack of financial resources, shortfall in marketing and management expertise, weaknesses in external information and linkages are factors that limit their competitiveness (Freel, 2000). Another barrier is related to financing the further development of the idea, the manufacturing, and the marketing. With sufficient capital, they would be able to develop the idea and the marketing plan in parallel. Failure to do so would lengthen the time to market and adversely affect income. Also, with sufficient capital they could advertise heavily and build up stock to offer faster delivery and meet larger orders (Larsen and Lewis, 2006). Similarly, there

might be a role for government support agencies to develop mechanisms for

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introducing innovative small and medium-sized enterprises to venture capital (Freel, 2000). Although the traditional image of the entrepreneur as intrinsically made has been broken to a certain extent, it is still strong enough for some women to find it hard to be taken seriously, which has an adverse impact on applications for funding and finding clients (Brush, 1997). This discrimination against women seems to be even worse in SubSaharan African countries such as Ghana, where the financial sector is maledominated (90% of staff in most institutions in Ghana are men). Illiteracy or semi-literacy among the majority of women in Ghana creates a further barrier to processing paperwork. Women’s lack of control over resources, such as land and labor, also limits their eligibility for loans. Banks’ ability to lend is often constrained by inflation-induced de-capitalization, resulting mainly in

insufficient funds available to finance loan request. In such cases, it is the women who receive lowest priority (IFAD, 2000) (III) Research Methodology Beauty parlors are playing important role in today’s fashion. They also help women in income generation and make them economically independent. Women also add to family’s income and improve living standard of their family. The number of women entrepreneurs in this sector is increasing day by day. Present study is based on primary data. Personal interviews of 17 women entrepreneurs who are running beauty parlors was conducted to know about their socio-economic profile as well as relation between the factors that effect this enterprise. Respondents were randomly selected. The data was collected, statistically analysed and presented here. A. Objective of the Study: Present study was conducted about women entrepreneurs who are running beauty parlors with following objectives: 1. To study socio-economic profile of selected women entrepreneurs.
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2. To examine the relationship between demographic factor and financial return in the selected sample. 3. To develop a suitable path for beauty parlor business on the basis of current study. B. Importance of The study: Now a days’ women entrepreneurship become an important tool for women empowerment. Women entrepreneurs also enhance living standard of their family which in turn help in development of the country. Entrepreneurs are regarded as backbone of any economy. Today with growing fashion people want to look more beautiful and fit. Thus, parlors play important role in today’s fashion. Women who don’t come out of their homes due to some reason can start this enterprise in their home after doing some training or diploma or certificate courses. Thus parlors are proved to be an important tool for women empowerment. (IV) Data Analysis & Discussion Data collected about age, caste, marital status, education & training, family type, financial support, initial investment and return on investment. i). Age: Age refers to the chronological age of the respondents in the years at time of interview. Table 1: Age (N=17) Age Group 21-26 27-31 32-37 38-45 Entrepreneurs 4 6 4 3

It is evident from the fig.1,that the majority of respondents(6) were in age group of 27-31 while equal no. of respondents i.e. 4 belong to age group 21-26
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and 32-37 while only 3 respondents fall in category of 38-45.We can see that maximum no. of respondents belong to middle age group. Fig. 1: Age

38-45 32-37 27-31 21-26 0 1

3 4 6 4 2 3 4 Entrepreneurs 5 6 7

ii). Caste: Caste is permanent stratification of the society. It is a social category whose members are assigned a permanent status within a given social hierarchy. Table 2: Caste (N=17) Caste Entrepreneurs Baniya 3 Thakur 2 Kurmi 2 Lala 2 Yadav 1 Brahman 1 Kaushal 1 Maximum no. of respondents belong to baniya.This may be because they are traders in social sratification.Then followed by thakur, kurmi and lala each having 2 respondents while yadav, Brahman and kaushal each having 1-1 respondents. Fig. 2: Caste
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Entrepreneurs
Kaushal Brahman Yadav Lala Kurmi Thakur Baniya 0 1 1 1 2 2 2 3 0.5 1 1.5 Entrepreneurs 2 2.5 3 3.5

iii). Marital Status: Marriage is important for society as well as human being for leading a family life,as man is a social animal. Table 3: Marital Status (N=17) Age Group Married Un-married 21-26 3 1 27-31 5 1 32-37 4 38-45 3 More no. of respondents(15) were found to be married out of total no. of respondents(17).Maximum no.(5) married respondents were from age group

27-31 followed by 32-37,21-26 and 38-45,each having 4 while 21-26 and 2731 each having 1 respondent. Fig. 3: Marital Status

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38-45 32-37 27-31 21-26 0 1

iv). Education and Training: Education refers to the level of formal education obtained by the respondent while training is for skill development for the enterprise. Table 4: Education & Training (N=17) Beautician Graduation Diploma Course 4 2 1 6 3 3 4 2 2 3 2 2

3 4 5 3
2 3 Married

1

1
4 5 Un-married 6 7
Fashion Designing

Age Group 21-26 27-31 32-37 38-45

1

It is evident from fig. 4 that all respondents are graduate.9 respondents possess diploma and some of them having beautician course either certificate or hobby course. One of the respondent also possess diploma in fashion designing.

Fig. 4: Education & Training

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Fashion Desigining Beautician Course Diploma Gradutaion

0

1
1 2 4 5 3 3

2

2 2
6 10

2

4

15

3
20

21-26

27-31

32-37

38-45

v). Family Type: The members of household who live together under one roof and one man guidance constitute the primary group known as family. They have hereditary kinship relations and meet out their basic socio-economic needs through family itself. There are two major family types: a) Nuclear family, and b) Joint family. In a nuclear family system the father, mother and their children are considered where as in joint family, the members of two or three generations live together under one roof. Table 5: Family Type (N=17) Age Group 21-26 27-31 32-37 38-45 Joint 2 2 1 2 Nuclear 2 4 3 2

Fig 5 reveals that equal no of respondents (2) in age group of 21-26, 2731 and 38-45 have joint family while only 1 respondent in age group of 32-37 having joint family. Maximum no. of respondents (4) having nuclear family fall in age group of 27-31 followed by 32-37(3),then 21-26 and 38-45 having equal no. of respondents who possess nuclear family.
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Fig. 5: Family Type

4 3.5 3 2.5 2 1.5 1 0.5 0 21-26 27-31 32-37 38-45

Joint Nuclear

Age Group

We can see in the above figure that the no. of nuclear families are more which is noticed as changing feature of Indian society.

vi). Financial Support: Financial support is defined as financial assistance which entrepreneurs take while starting their venture. This may be: (a) Own funds, and (b) Loan funds. Own Funds i.e. their own saving or family’s saving while loan funds they take from banks or some funding agencies. Entrepreneur has to pay some interest when she returns loan. Table 6: Financial Support (N=17) Age Group Own Loan Own/Loan 21-26 2 1 1 27-31 4 1 1 32-37 2 2 38-45 2 1 Fig.6 depicts that 1 respondents from age group 21-26,27-31 and 38-45 take financial support from banks.2respondents of age group 32-37 take support from both loan as well as own.1 respondent each from age group 21-26
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and 27-31 take financial support from both own as well as loan. Maximum no of respondents have their own finance. Fig. 6: Financial Support
4 3.5 3 2.5 2 1.5 1 0.5 0 21-26 27-31 32-37 38-45
Ow n Loan Ow n/Loan

vii) Initial Investment & Return on Investment (ROI): Initial investment refers to money invested when enterprise was started while return on investment (ROI) is profit/income from investment i.e. entrepreneur’s profit or return (per month/annual).

Table 7: Initial Investment & Return on Investment Age Group 21-26 27-31 32-37 38-45 Average Initial Investment 16750.00 25666.67 31875.00 52500.00 ROI (Average Per Month) 11000.00 12166.67 14000.00 25833.33

From fig. 7 it is clear that as the age increases, initial investment increases which in turn increase the return on investment. Fig. 7: Initial Investment & Return on Investment

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60000 50000 40000 30000 20000 Average Initial Investment ROI (Average Per Month) 10000 0 21-26 27-31 32-37 38-45

Age Group

viii). Correlation analysis between Age, Initial Investment and ROI: Correlation is a technique for determine whether the two variables are correlated or not and upto which degree. If the value lies between 0 to 0.2 there is weak correlation, between 0.2 to 0.4 shows low correlation, between 0.4 to 0.6 is moderate relation, between 0.6 to 0.8 strong and between 0.8 to 1 is

very strong correlation. If the value is positive the change in one variable causes change in same direction and if direction. value is negative change is in opposite

Table 8: Correlation Analysis Age, Initial Investment and Return on Investment (ROI) Age (Average) Age (Average) Average Initial Investment ROI (Average Per Month) 1 0.986287196 0.932044912 Average Initial Investment 1 0.969570347 1 ROI (Average Per Month)

From table 8, we can reveal that there is very strong correlation between age & average initial investment; age & return on investment as well as average initial investment & rate of return.
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(V) Findings& Suggestions In present study it is found that this enterprise is appropriate for those women entrepreneurs who are having problem to outside home due to family responsibility or their culture. They can start this venture inside their home. There is no boundation of caste or marital or age on these entrepreneurs. The reason may be that they have to deal female customers. No basic professional education is needed for this enterprise. Anyone who is able to read and write can do diploma or degree courses for starting this venture. This enterprise can be started with minimum expenditure and which can be expended later on. It is find that as age increases exposure and expertise in the field increases which in turn increases further investment and profit. Thus we can

see how this venture can be used as important tool for empowering women. The suggestions after doing this analysis were, as follows: i. Women can be motivated towards this enterprise by providing financial support lie loan on low interest. ii. Training programme at minimum or no fees charged, organized by government. iii. Seminars and conferences for these entrepreneurs can be organized for literate group. iv. Interaction with successful entrepreneurs of this field. v. Policies should be made for empowering women in this field. vi. There should be a common forum between entrepreneurs running this venture in different reasons where their experiences .This will help in updating their knowledge. (VI) Conclusion There is no boundation of caste or marital or age on these entrepreneurs. The reason may be that they have to deal female customers. No basic professional education is needed for this enterprise. Anyone who is able to read
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and write can do diploma or degree courses for starting this venture. This enterprise can be started with minimum expenditure and which can be expended later on. It is find that as age increases exposure and expertise in the field increases which in turn increases further investment and profit From above discussion it is clear that women entrepreneurs in this enterprise are having good scope to develop. They can earn good amount after doing diploma or certificate courses. In starting they can invest small amount and letter they can invest more from their profit. As their experience increases with age their investment increases which in turn increases rate of return on investment.

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References: 1. Abor, J. & Biekpe, N. (2006). A comparison of male-owned and femaleowned businesses in Ghana. International Journal of Entrepreneurship and Innovation, 7, 105-112. 2. Abzug, C. (2002). Impact of SAPs on the female gender in North Ghana. Accra, Ghana: Worldwide Press Ltd. 3. Ardayfio-Sanchandrof, E. & Wrigley, C. (2001). Gender-sensitive policies for sustainable livelihood security. Accra,Ghana. University of Ghana Publications. 4. Ardayfio-Sanchandrof, E. (1999). Poverty assessment profile in rural Ghana. Accra, Ghana: University of Ghana Publications. 5. Arhin, W. (2000). Profile of women in the informal sector: The case of women in Accra.Accra, Ghana: Grassroots Media. 6. Audretsch, D. (2004). Sustaining innovation and growth: public policy support for entrepreneurship. Industry and Innovation, 11, 167-191. 7. Berg, B. (1979). The remembered gate: Origin of African feminism. New York & London: Oxford University Press. 8. Brush, C. G. (1997). Women-owned businesses: obstacles and opportunities. Journal of Developmental Entrepreneurship, 2, 1-24. 9. Bryan, A. & Burgress, R. (1999). Qualitative research. London, Thousand Oaks, and New Delhi: SAGE Publications. 10. Kirve, H. and A. Kanitkar, 1993. Entrepreneurship at the Grassroots: Developing the Income- generating Capabilities of Rural Women. J. Entrepreneurship, 2(2): 177-197. 11. Padmavati, D., 2002. Training women for Entrepreneurship. Social Welfare, 49(2): 15-18. 12. Rajani N. and Sarada D. 2008; Women Entrepreneurship and Support Systems Study Home Comm Science 2(2): 107-112 13. Shastri R. K. and Sinha A. 2010, The Socio - Cultural and Economic Effect on the Development of Women (With Special Reference to India); Asian Journal of Business Management 2(2): 30-34.

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14. Sathyasundaram, I., 2004. Encouraging entrepreneurship. Soc. Welfare, 50(12): 13-15.

women’s

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