chapter v role of riico and rfc in the promotion of...
TRANSCRIPT
Chapter V
ROLE OF RIICO AND RFC IN THE PROMOTION OF
WOMEN ENTREPRENEURSHIP IN RAJASTHAN
(i) INTRODUCTION
Emancipation of women has been talked of, moving out of the purdah systems and
going in for higher education were and are some indicators of them being emancipated, but
the emergence of women on the economic scene as entrepreneurs can be heralded as a
significant development in their emancipation and securing for themselves a secure place in
society which they long deserved. “In the present times, they are increasingly becoming
conscious of their existence, their rights to work and to lead a respectable life. Today women
entrepreneurs represent a group of women who have broken away from the beaten tracks and
are exploring new avenues of economic participation.”1
Earlier, marriage was the only career for most women. When they did come out, it
was in areas such as teaching, office work, nursing, and medicine, if we take the self-
employed women they consisted of only five percent. The majority of the self-employed
women were engaged in the unorganized sector, such as handicrafts, handloom and cottage
based Industries. The eighth-five year plan had given impetus to the development of the
small-scale sector. The numbers of small-scale units were expected to increase from one and
a half million to two and half million during the period 1992-1997 of which nine percent
would be women. This trend augurs well for women, because this indicates that by the turn of
the century women’s participation would increase by twenty percent in the small-scale units2.
An ideal climate has been launched for the Indian women entrepreneurs, to exhibit
their talents; it is for the government to take up the responsibility to improve a lot of women
in economic life and to prepare them to participate in industrial estates as entrepreneurs,
which the Indian women must be ready to reach out for new jobs, new responsibilities and
new experiences.
Promotion of women entrepreneurs needs a prolonged approach. They should come
out of their traditional occupation to accept more challenging activities. Simultaneously, an
environment should be created to enable their participation. This can be done by motivating
them, and get funding agencies to finance them through financial institutions and banks,
which should be on priority basis and concessional terms, the elaborate procedure of
licensing and government sanctions associated with the establishment of a new business
enterprise should be dispensed with, in the case of application received from women
entrepreneurs. In recent years, the problems of women in economic field received a lot of
attention at the national as well as international level. The United Nations declared the period
1975-85 as the ‘Decade for Women’. ‘Role of women in industrialization in Developing
Countries’ held at Vienna from the 6th to 10th November 1978, identified several constraints
that stood in the way of women and also the effective participation of women in the
industrialization of developing countries.
In India, several institutional arrangements have been made to protect and develop
women entrepreneurship. The nationalized banks and state financial corporations advance
loans to women entrepreneurs on preferential basis. State Industrial Development
Corporations and district centers provide loans, subsidies and grants to small-scale women
entrepreneurs. State level agencies assist women entrepreneurs. India has been developing
fast, but not always equitably or inclusively. Our development model is very much a work in
progress and deep-rooted challenges remain. Across the world, educating and empowering
women has proven time and again to be the catalyst for rapid socio-economic growth.
Conversely, societies where women are repressed are among the most backward. India seems
to be somewhere in-between.
Women in India make up 7.5% of the world’s total population. While certain
development indicators show their quality of life is improving – maternal mortality rates
declining; literacy rates increasing; more women gaining access to healthcare and education –
the pace of change is heartbreakingly slow. India ranks 113 out of 135 on the World
Economic Forum’s Gender Gap Index. According to India’s 2011 census, the sex ratio for
children under six was 914 females to 1,000 males, a disturbing decline from 927 in 2001.
The ranking of Indian women in economic empowerment is 0.3, where 1.0 means equality.
This is a dangerous state of affairs for any society. Denying women opportunities to
realize their potential is a waste of human capital and bar to economic progress. Women are
undoubtedly the foundation of the basic unit of society – the family. Even in traditional roles
they demonstrate great innovation, skills, intelligence, hard work and commitment. If we can
harness these attributes effectively, India’s growth can be more inclusive and equitable. The
education of women is therefore the key. But in a country where nearly 70% of the
population lives in rural areas, access to educational opportunities is limited. Moreover,
poverty puts the girl child at a greater disadvantage. Added to this, the social attitude towards
women, and it is obvious that we need a multi-pronged approach if we are to achieve
education for women worldwide.
This is where technology or E-education can help. E-infrastructure can deliver
relevant education to both sexes in an efficient and equitable manner, enabling our youth to
leapfrog into the Internet age. When we educate and empower one woman, we set off a chain
reaction that transforms the life of her family and the community she lives in. An exemplary
model is the network of trained Accredited Social Health Activists (ASHA), created under
the National Rural Health Mission, who has played a crucial role in improving the health of
women and children across India.
Vocational training is equally important to women’s economic independence. The
inspirational efforts of the Self-Employed Women’s Association, founded by Ela Bhatt, and
other successful self-help groups, have sowed the spirit of entrepreneurship in hundreds of
women. SEWA’s women members are trailblazers, redefining themselves as they add value
to their families and the nation. This kind of female empowerment can transform India.
Societal perception towards females and their role are often the biggest barriers to change,
because they shape women’s perception of themselves. Across all strata of Indian society,
people still believe that women are capable of performing only certain types of jobs and that
marriage must take precedence over career.
This mind-set, common to both men and women, must change. We must focus on the
girl child and help her escape the traditional stereotypes that stifles her potential. Take
women in science as an example. The prejudice is that women are less capable of
understanding science, despite all the evidence to the contrary. In preparing project reports,
purchasing machinery, hiring of buildings and training the staff. Several voluntary agencies
like FICCI ladies, National Alliance of Young Entrepreneurs (NAYE). In the state of
Rajasthan, it’s the RIICO and the RFC that have helped the women of this state.
The emergence of women on the economic scene as entrepreneurs is a significant
development in the emancipation of women and securing them a place in society, which they
deserved. The hidden entrepreneurial potential of women has gradually been changing with
the growing sensitivity to the role and economic status in society, the recent trend shows that
women are now becoming conscious of their existence, their rights and the work situation
which women from the middle class are not prepared for; such a change, as they feel that it
will have a backlash on them. Today women entrepreneurs represent a group of women who
have broken away from the beaten track and are exploring new avenues of economic
participation.
Recently, the trend has changed where women are contributing to the role as
entrepreneurs in the economic development of the country. Today we find women in various
fields like engineering, electronics, readymade garments, fabrics, edibles, handicrafts, soft
toys, textile and now pharmaceuticals. These are urban educated women, sometimes they
have specialized skills and are equipping themselves with some training and financial
support. Though women entrepreneurship development programmes have been recognized as
human resources development too, many a times there are many expectations from a single
programme, like removing employment, promoting small scale industries, developing
industrially undeveloped regions.
Some recent researches have indicated that several women are now becoming
entrepreneurs especially the middle class women due to pull and push of traditional and
changing values3. Under the pull factors, the women entrepreneurs choose a profession as a
new challenge, as an adventure with an urge to do something new and to have an independent
occupation. Under the push factors women take up business as entrepreneurs to get over
financial difficulties when responsibility is thrust on them due to family circumstances. As
per Indian census report, 1991, women as a separate target group, account for 48.1% of
country's total population. They are regarded as the better half of the society. But their
representation in gainful employment is comparatively low. In most of the developing
countries like India, women were mostly confined to the four walls of the houses performing
household activities. Very few were getting the opportunity to come out of the four walls and
enter economic activities.
(ii) CONCEPT OF WOMEN ENTREPRENEURS
As is already pointed out in the preceding paragraphs, women entrepreneur is
relatively a new concept. Conceptually, whether men entrepreneur or women entrepreneur,
these are not two drastically different concepts from each other. Origin of both the concepts
are from the basic concept of "Entrepreneur." When the enterprise is initiated, organized and
controlled by a man, the person referred is man entrepreneur and when the enterprise is
initiated, organized and controlled by woman, the person referred is woman entrepreneur.
Different individuals/experts defined women entrepreneurs in their own ways. Some of the
definitions of women entrepreneurs are given below. According to Harbision, F (1956) "Any
woman or group of women which innovates, initiates or adapts an economic activity may be
called women entrepreneur." 4
According to National level standing committee on women entrepreneurship.
Government of India, 1991, "an enterprise owned and controlled by a woman having a
minimum financial interest of 51% of the capital and giving at least 51% of the employment
generated in the enterprise to women"5. The above definition is subject to criticism by women
themselves on the ground that employing more than 50% women workers in the enterprises
owned and run by the women is discriminatory and not in tune with practical realities. In
nutshell, women entrepreneurs are those women who think of a business, initiate, own,
organize, operate, employ women and undertake risks (in various terms such a time, money),
involved in running a business and takes it to a height.
Women owned businesses are highly increasing in the economics of almost all
countries. The hidden entrepreneurial potentials of women have gradually been changing
with the growing sensitivity to the role and economic status in society, skills, knowledge and
adaptability in business are the main reasons for women to emerge in business ventures.
Woman entrepreneur is a person who accepts challenging roles to meet her personal needs
and become economically independent. A strong desire to do something positive is an inbuilt
quality of entrepreneurial women, who are capable of contributing values in both family and
social life. With the coming of media, women have now become aware of their traits, rights
and also the work situation. The myth of the glass ceiling is now shattered and today women
have broken barriers, and are found indulged in every field of business from papad making to
electronics. The challenges and opportunities provided to women of digital era are growing
rapidly and jobs seekers are now turning out to be job creators, they are flourishing as
designers, interior decorators, architects, exporters, publishers, garment manufacturers and
are still exploring for new avenues of economic participation. In India, although women
constitute the majority of the total population, the entrepreneurial world is still male
dominated one.
Coming to women in Rajasthan, first and foremost it must be mentioned that
Rajasthan fifty years ago was a very backward State. Till the early sixties free education was
given to women so that they could be educated and come to educational institution. The only
public school was M.G.D. where only the girls from royal families came to be educated,
which was initially a complete residential school. Even the principal was an English lady who
gave education on the western pattern; the teachers were mostly residential who were given
residence along with their meals. The staff were basically English speaking; in a word most
of them being Anglo Indians who could communicate well in English. The same pattern was
for the hostel matrons. It would not be an exaggeration to say that the entire system was on
the western pattern, which suited the girls from those families. This institution did not cater to
the general masses. Another school was run by the mission sisters of Ajmer, which catered to
the middle class section, but for the girls, here also, there was a school bus, which brought the
girls from their house and back. Two or three government schools were opened, which saw
that girls were brought by tongas and that too with a purdah system and the girls were
motivated to study.
For higher education Maharanis college was started and till the early 60’s, women
now came out for education not only to schools but also to colleges. The early seventies saw
girls in the field of medicine and engineering too. Women in Rajasthan now came to know
about education; in fact their parents too realized that they needed to educate their daughters
and give them a new plank in life be it medicine engineering or even business administration.
The early women in politics were Sumitra Singh and little later came Gauri Punia. After these
two ladies, the 80's and nineties saw a number of entrants into politics.
Chart 5.1
Conceptual Model of women Entrepreneurs
(iii) CATEGORIES OF WOMEN ENTREPRENEURS
• Women in organized & unorganized sector
• Women in traditional & modern industries
• Women in urban & rural areas
• Women in large scale and small scale industries.
• Single women and joint venture.
a) First Category
• Established in big cities
• Having higher level of technical & professional qualifications
• Non traditional items
• Sound financial positions
b) Second Category
• Established in cities and towns
• Having sufficient education
• Both traditional and non-traditional items
• Undertaking women services-kindergarten, crèches, beauty parlors, health clinic etc.
c) Third Category
• Illiterate women
• Financially weak
• Involved in family business such as Agriculture, Horticulture, Animal Husbandry,
• Dairy, Fisheries, Agro, Forestry, Handloom, Power loom etc.
(iv) MEN AND WOMEN ENTREPRENEURS: A
COMPARATIVE STUDY
If we carryout an in-depth analysis of men and women entrepreneurs, we will find
that in spite of many similarities, there are some dis-similarities also. Similarities are stated in
Exhibit 5.1and dissimilarities are stated in Exhibit 5.2
Table 5.1
Similarities in Men and Women Entrepreneurs
SI.
No.
Characteristics Women Entrepreneur Men Entrepreneur
1 Work Desire to work Desire to work
2 Role Will to play a lead role Will to play a lead role
3 Source of Motivation Achievement of goals and money
Achievement of goals and money
4. Personality Objective confidence full of energy
Objective confidence full of energy
SOURCE : Mayoux, Linde (2001) "Jobs, Gender and small enterprises"
Table numbers 5.1 in similarities shows that both men and women have a desire to work will
to play a lead role in their business. They also wants to achieve their goals and earn money.
Finally their objectives is to have confidence and work with energy
Table 5.2
Dis-similarities in Men and Women Entrepreneurs
SI.
No.
Characteristics Women Entrepreneur Men Entrepreneur
1 Employment background House wife Experience of the work
field
2 Source of finance Personal and family/
individual/ joint loan
Personal savings/ bank
loan
3 Source of motivation Will for independence and
flexibility in work schedule
Will to fast increase the
self image
4 Reason of entrepreneurship Involves herself in useful
work, not getting regular
employment, no promotion
avenues
Tension at work place.
Grabbing to opportunity
5 Innovativeness Realistic Innovativeness Ideal innovativeness
6 Associate group Intimate friends, husband
family, women and
organization, wife, family
business and organization
7 Personality Flexible, tolerance,
moderate self confidence,
moderately active
Relatively rigid, high self
confidence, active
SOURCE : Mayoux, Linde (2001) "Jobs, Gender and small enterprises"
Table number 5.2 in dissimilarities shows that women are housewives in comparison to the
men because they are first and foremost home makers. Woman are less independent in
comparison to men. Women are having much realistic approach whereas men have ideal
innovations. if we talk about the personality of man they are rigid, extreme self confidence
and active in comparison to women.
Table 5.3
Percentage Shares of Informal and Formal Sector Workers among
Men and Women, 2004-05
Sl.
No. Industry group
Men Women Persons
Informal Formal Total
sector sector
Informal Formal Total
sector sector
Informal Formal Total
sector sector
1. Agriculture 97.42 2.58 100.00 98.05 1.95 100.00 97.68 2.32 100.00
2. Manufacturing 65.93 34.07 100.00 82.56 17.44 100.00 71.01 28.99 100.00
3. Trade 95.47 4.53 100.00 96.19 3.81 100.00 95.55 4.45 100.00
4. Education 24.99 75.01 100.00 29.14 70.86 100.00 26.73 73.27 100.00
5. Private households & ETOs
99.97 0.03 100.00 100.00 0.00 100.00 99.99 0.01 100.00
6. Construction 76.99 23.01 100.00 62.81 37.19 100.00 75.52 24.48 100.00
7. Hotels & restaurants
85.22 14.78 100.00 93.22 6.78 100.00 86.75 13.25 100.00
8. Health services 53.97 46.03 100.00 33.73 66.27 100.00 47.13 52.87 100.00
9. Public administration & Defense
0.97 99.03 100.00 0.73 99.27 100.00 0.94 99.06 100.00
10. Real estate, renting & Business services
72.63 27.37 100.00 49.97 50.03 100.00 70.36 29.64 100.00
11. Banking & financial Intermediation
26.39 73.61 100.00 22.53 77.47 100.00 25.84 74.16 100.00
12. Electricity, gas & Water
6.74 93.26 100.00 2.91 97.09 100.00 6.56 93.44 100.00
Source: ILO Sub regional Office for South Asia, New Delhi G. Raveendran 2010 ILO Asia - Pacific Working paper Series Table number 5.3 indicates that in construction, health services, real estate and banking and
finance, men have an edge over Women in formal and informal sector. where as in the sector
of agriculture, manufacturing, education, private house hold and hotel and restaurant women
have an edge over the men.
(v) THE SCOPE OF ENTREPRENEURSHIP AMONG
WOMEN
Although many women have advanced in economic structures, for the majority of women,
particularly those who face additional barriers, continuing obstacles have hindered their
ability to achieve economic autonomy and to ensure sustainable livelihoods for themselves an
their dependents. Women are active in a variety of economic areas, which they often
combine, ranging from wage labor, subsistence farming and fishing to the informal sector.
However, legal and customary barriers to ownership of or access to land, natural resources,
capital, credit, technology and other means of production, as well as wage differentials,
contribute to impeding the economic progress of women. Women's contribution to
development is seriously underestimated and thus their social recognition is limited. The full
visibility of the type, extent and distribution of this unremunerated work will also contribute
to a better sharing of responsibilities between women and men. Lack of employment in the
private sector and reductions in public services and public service jobs have affected women
disproportionately. In some countries, women take on more unpaid work, such as the care of
children and those who are ill or elderly, compensating for lost household income,
particularly when public services are not available. In many cases, employment creation
strategies have not paid sufficient attention to occupations and sectors where women
predominate; nor have they adequately promoted the access of women to those occupations
and sectors that are traditionally male dominated.
(vi) HOW TO DEVELOP WOMEN ENTREPRENEURS?
Right efforts on from all areas are required in the development of women entrepreneurs and
their greater participation in the entrepreneurial activities. Following efforts can be taken into
account for effective development of women entrepreneurs.
a. Consider women as specific target group for all developmental programmes.
b. Better educational facilities and schemes should be extended to women folk on
government’s part.
c. Adequate training programmes on management skills to be provided to women
community.
d. Encourage women's participation in decision-making.
e. Vocational training to be extended to women community that enables them to
understand the production process and production management.
f. Skill development to be done in women's polytechnics and industrial training
institutes. Skills are put to work in training-cum-production workshops.
g. Training on professional competence and leadership skills to be extended to women
entrepreneurs.
h. Training and counseling on a large scale of existing women entrepreneurs to remove
psychological causes like lack of self-confidence and fear of success.
i. Counseling through the aid of committed NGOs, psychologists, managerial experts
and technical personnel should be provided to existing and emerging women
entrepreneurs.
j. Continuous monitoring and improvement of training programmes.
k. Activities in which women are trained should focus on their marketability and
profitability.
l. Making provision of marketing and sales assistance from government part.
m. To encourage more passive women entrepreneurs the Women training programme
should be organized that teaches them to recognize their own psychological needs and
express them.
n. State finance corporations and financing institutions should permit by statute to
extend purely trade related finance to women entrepreneurs.
o. Women's development corporations have to gain access to open-ended financing.
p. The financial institutions should provide more working capital assistance both for
small scale ventures as well as large scale ventures.
q. Making provisions of micro credit system and enterprise credit system to the women
entrepreneurs at local level.
r. Repeated gender sensitization programmes should be held to train financers to treat
women with dignity and respect as persons in their own right.
s. Infrastructure, in the form of industrial plots and sheds, to set up industries is to be
provided by state run agencies.
t. Industrial estates could also provide marketing outlets for the display and sale of
products made by women.
u. A Women Entrepreneur's Guidance Cell set up to handle the various problems of
women entrepreneurs all over the state.
v. District Industries Centers and Single Window Agencies should make use of assisting
women in their trade and business guidance.
w. Programmes for encouraging entrepreneurship among women are to be extended at
local level.
x. Training in entrepreneurial attitudes should start at the high school level through well-
designed courses, which build confidence through behavioral games.
y. More governmental schemes to motivate women entrepreneurs to engage in small-
scale and large-scale business ventures.
z. Involvement of Non Governmental Organizations in women entrepreneurial training
programmes and counseling.
(vii) DEVELOPMENT OF WOMEN ENTREPRENEURSHIP IN
INDIA
Women entrepreneurship development is an essential part of human resource
development. The development of women entrepreneurship is very low in India, especially in
the rural areas. Entrepreneurship amongst women has been a recent concern. Women have
become aware of their existence their rights and their work situation. However, women of
middle class are not too eager to alter their role in fear of social backlash. The progress is
more visible among upper class families in urban cities.
This chapter focuses on women entrepreneurs. Any understanding of Indian women,
of their identity, and especially of their role taking and breaking new paths, will be
incomplete without a walk down the corridors of Indian history where women have lived and
internalized various role models, the status of women entrepreneurs and the problems faced
by them when they ventured out to carve their own niche in the competitive world of business
environment. Since the times of yore, the role of woman in Indian society is known to be that
of a homemaker. Her confinement to her homestead certified her character and morality. The
status of women has undergone a windfall change from what it was in the Vedic age to till the
era of globalization. No nation, other than India has held its women in higher esteem than the
Hindus. In the Vedic era, women were not incarcerated to the precincts of the house. They
were free to attend fairs, festivals and assemblies. They also possessed outstanding academic
outfit. In the post Vedic period, the reins were pulled in, and woman started to lose her status
in society, which she had attained in the Vedic age. She was meant to be protected by the
men - her father, brother and husband. She acquired new identity after marriage. During the
Moghul rule, the socio economic status of women deteriorated a lot. Purdah system, child
marriage and other social evils, which were detrimental to the social status of women, came
into force. During the British rule in India, legislations were enforced to modify the structure
of society. Reforms were initiated for the upliftment of women. In continuation with this,
post independence, at least legally, men and women are considered to be equal. But in reality,
the situation is something different. Outside the educated elite and often within it, girls are
considered as economic liability because of the tradition that requires a girl’s parents to
provide her with a dowry at the time of her marriage. The Indian constitution aimed at
attainment of equal status for women in every sphere of life.
Women constitute nearly half of the total population in India and are regarded as
better half of the society. But for centuries, women were confounded to the four walls of the
houses doing household work at home. Marriage was considered as the only career for most
women. Their main work was to nourish family and upkeep the values of the society. Though
in Hindu scriptures woman had been regarded as "Devi" Laxmi or Grah Laxmi, an
embodiment of Shakti (Durga) but in real Life, she was treated as Abla (weak), passive,
dependent. Since old age women have been victims of social prejudices and discrimination.
Women were taught to depend upon others, to limit their ambitions and to avoid exposure
and risk. Those days society was predominantly a male dominated society. It is with these
reasons that women work force in industry was negligible and their contribution towards
economy was almost, zero.
But with the change of time, particularly after independence there was the recognition
of women power. Women started realizing their own strengths and demanded their
participation in various walks of life. They have started taking up careers in selected
professions such as education, nursing medicine and office work and thus, contributing in
economic activities. But the concept of women entrepreneur had still not emerged. Women
were mostly confined to the activities contributing in other person's (mostly male) industrial
set up. Social development has to be construed along with the economic development and
individual development. Social development is perceived as a subsystem of Human Resource
Development on a national level. Social and economic development go hand in hand, and this
in turn, leads to sustainable development.. For the development of society, it is necessary to
develop the women folk. The advancement of a fraction of Indian women has resulted in
remarkable positive changes in the economic condition of our country, and if there is an
overall development of the women lot, then the positive changes will definitely magnify.
Under the seventh five-year plan (1987-1992), a separate chapter characterizing
integration of women in development was included. It was suggested in this plan that to boost
Indian economy, women should also be promoted to take up economic activities and
contribute their might in this endeavor. Some of the salient feature of this plan was:
(a) To include women as specific target groups in the total development process.
(b) To plan diversity, and conduct vocational training programmes suitable to the needs
of the women.
(c) To provide marketing assistance for their products.
(d) To involve women folk in decision making process.6
Not only in the five-year plan. In industrial policy of Government of India also, the
emphasis was placed for preparing women for taking up initiative in starting small-scale
industries. It was also emphasized to train this group by conducting special entrepreneurship
programmes. The Government of India was so concerned with this sector that in 1981, the 1st
National conference of Women Entrepreneurs was organized in New Delhi, which besides
calling for urgent attention to allocate land, sheds, also suggested speedy sanction of power
and license to run the industry for this sector.
The second International conference of women entrepreneurs organized in 1989 in
New Delhi. It adopted a declaration. Some of the salient points of this declaration were.
a. Promotion of women's involvement in economic development programmes.
b. Provide necessary infra-structural support, training and marketing facilities.
c. Help them removing hurdles by enacting legislation.
d. Products manufactured by women entrepreneurs be widely displayed in trades and
fairs.
(viii) ROLE OF WOMEN ENTREPRENEURS IN INDIAN
ECONOMY
The Indian economy has been witnessing a drastic change since mid -1991, with new
policies of economic liberalization, globalization and privatization initiated by the Indian
government. India has great entrepreneurial potential. At present, women involvement in
economic activities is marked by a low work participation rate, excessive concentration in the
unorganized sector and employment in less skilled jobs. Any strategy aimed at economic
development will be lop-sided without involving women who constitute half of the world
population. Evidence has unequivocally established that entrepreneurial spirit is not a male
prerogative. Women entrepreneurship has gained momentum in the last three decades with
the increase in the number of women enterprises and their substantive contribution to
economic growth. The industrial performance of Asia-Pacific region propelled by Foreign
Direct Investment, technological innovations and manufactured exports has brought a wide
range of economic and social opportunities to women entrepreneurs.
In this dynamic world, women entrepreneurs are an important part of the global quest
for sustained economic development and social progress. In India, though women have
played a key role in the society, their entrepreneurial ability has not been properly tapped due
to the lower status of women in the society. It is only from the Fifth Five Year Plan (1974-78)
onwards that their role has been explicitly recognized with a marked shift in the approach
from women welfare to women development and empowerment. The development of women
entrepreneurship has become an important aspect of our plan priorities. Several policies and
programmes are being implemented for the development of women entrepreneurship in
India.
There is a need for changing the mindset towards women so as to give equal rights as
enshrined in the constitution. The progress towards gender equality is slow and is partly due
to the failure to attach money to policy commitments. In the words of president APJ Abdul
Kalam "empowering women is a prerequisite for creating a good nation, when women are
empowered, society with stability is assured. Empowerment of women is essential as their
thoughts and their value systems lead to the development of a good family, good society and
ultimately a good nation."7
When a woman is empowered it does not mean that another individual becomes
powerless or is having less power. On the contrary, if a women is empowered her
competencies towards decision- making will surely influence her family's behavior.
In advanced countries, there is a phenomenon of increase in the number of self-
employed women after the world war second. In USA, women own 25% of all business, even
though their sales on an average are less than two-fifths of those of other small business. In
Canada, women own one-third of small business and in France it is one-fifth. Women
entrepreneurship has been recognised as an important source of economic growth. Women
entrepreneurs create new jobs for themselves and others and also provide society with
different solutions to management, organisation and business problems. However, they still
represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based
barriers to starting and growing their businesses, like discriminatory property, matrimonial
and inheritance laws and/or cultural practices; lack of access to formal finance mechanisms;
limited mobility and access to information and networks, etc.
Women’s entrepreneurship can make a particularly strong contribution to the
economic well-being of the family and communities, poverty reduction and women’s
empowerment, thus contributing to the Millennium Development Goals (MDGs). Thus,
governments across the world as well as various developmental organizations are actively
undertaking promotion of women entrepreneurs through various schemes, incentives and
promotional measures.
(ix) CURRENT STATUS OF WOMEN IN THE JOB SECTOR
According to 2011 census women constitute 48.46% of the country’s population of
1210.19 million (Census of India, 2011).8 They comprise of 96% of the workforce in the
unorganized sector in the country i.e., in fields, construction and other such sectors (Padma,
2004). On the contrary, in the organized sector, the proportion of women stands at 15%. In
the civil services the number of women has raised from 311 in 1985 to 501 in 1996. Women
opt mainly for the diplomatic services or district administration. Only 3.47% of women join
the police force (Census of India, 2011, http://censusindia.gov.in/).
a). GDP RATE & WOMEN’S CONTRIBUTION
India’s Gross Domestic Product (GDP) is $3.548 trillion in 2009 (Manorama Year
Book, 2011). From 2004 till 2010 India’s average quarterly GDP growth was 8.40% (www.
tradingeconomics.com, 2011). The per capita GDP is one of the measure to ascertain the
contribution made by each individual of India towards GDP. According to sources, the per
capita GDP now stands at $3,400 (World fact book, 2010). According to a study “Foresight
2020” conducted by Economist Intelligence Unit (EIU), and sponsored by Cisco systems,
India is projected to contribute 12.2% to global economic growth by 2020. The growth in
women’s employment has been higher as compared to men in India during 2000-2005.
Studies indicate that 34.45% of rural women worked compared to only 20% of urban women.
The vast difference occurs in the category of self employed, where 32% of rural women
work, and compared to just 11% of urban women. Bridging this gap will gramatically.9
Increase India’s GDP. According to UNDP report released on the occasion of
international women’s day on March 08, 2010, if more women work, India’s GDP will raise
by 4%. It can make Indians 5% richer than otherwise projected by 2015 and 12% richer by
2025. With the changing times and globalization, employability has seen an increasing trend.
Owing to the inherent nature of woman which identifies with empathy and benevolence
combined with strong determination and sharp business acumen, many firms have had
significant success with a woman on the decision making chair. Women have proved to be
good team leaders. Indra Nooyi’s climb to the top of Fortune’s 2007 list of powerful women
exemplifies this. The success of brand name firms with women as chief executives has been
impressive. Findings indicate that the Fortune 500 companies with the highest percentages of
women corporate officers yielded on an average 35.1% higher return on equity than those
with the lower percentages(Catalyst, 2004)10. It is generally perceived that women executives
at the top inculcate a sense of balance, intelligence, higher emotional quotient and respect to
the management team. They tend to bring in team spirit and compassion in the workplace.
But in India, this trend has not caught its top gear yet. In Indian corporate sector, women
comprise of 2% of the total managerial strength (Saini, 2006). The kinds of Kiran Mazumdar
Shaw, Naina Lal Kidwai, Sullajja Firodia Motwani, Vidya Chhabria and Indra Nooyi, who
dare to change the rules of the game, are gradually paving their success path nudging aside
the obstacles. The Women’s Empowerment Principles launched in March 2010 by the UN
Global Compact and UNIFEM. Subtitled “Equality Means Business,” offer guidance to
companies on how to empower women in the work place, market place, and community and
emphasize
(x) PROMOTIONAL EFFORTS SUPPORTING WOMEN
ENTREPRENEURS IN INDIA
a) Women's entrepreneurship is a relatively new concept in India. The concern to
develop more women entrepreneurs emerges from the fact that women represent
the fact that women represent 50 per cent of world population, but receive only 10
per cent of the world income and less than 1 per cent of the world's assets. yet,
research has shown that 'women entrepreneurs are no different from men in terms
of their personality cognition, achievement motivation, dependency and other
related attitudes.
b) Efforts have been made by various governmental and non-governmental agencies
all over the world to promote women entrepreneurs. The results are somewhat
encouraging.
c) Entrepreneurship development in India has received much attention during the last
few years. Several policies, programmes, procedures and institutions have been
formulated to support development of entrepreneurship among women in India.
We discuss below these promotional procedures in brief and their implication for
women entrepreneurs:
Chart 5.2
Women's Entrepreneurship — Promotional Measures
Promotional Efforts
Policy framework Programmes supporting Institutional support to supporting women women entrepreneurship women entrepreneurs entrepreneurs
(xi) OPPORTUNITIES FOR WOMEN ENTREPRENEURS
With increased awareness and globalization, there is constant increase in women
entrepreneurs. A survey conducted for women entrepreneurs reveals that most of women
entrepreneurs are still involved with the food industries at small-scale level. Today
majority of women are having small business of Papad, Acchar, Stitching etc., which
appears to be an extension of food industry started through kitchens. Gradually with the
spread of education and training and having more awareness in variety of fields, women
are showing keen interest in the field of technology, energy related industries. But the
numbers of such women entrepreneurs are negligible. The situation in metro cities is
different. A survey conducted around Delhi clearly revealed that about 40% of women
entrepreneurs are having non-traditional enterprise fields such as electronics, engineering,
consultancy etc. In a state like Kerala where women literacy is very high, women are also
opening up enterprises is non-traditional areas.
(xii) GOVERNMENT SCHEMES FOR WOMEN
ENTREPRENEURS
According to the Third All India Census of Small Scale Industries conducted in
2001-02 and subsequent estimates made, only 10.11% of the Micro and Small Enterprises
in India are owned by women while 9.46% of the MSE enterprises are managed by
women.11 Currently (2006-07) their estimated number is 12.99 lakh women managed
enterprise and 12.15 lakh women managed enterprise. In order to encourage more and
more women enterprises in the MSE sector, several schemes have been formulated by this
Ministry and some more are in the process of being finalized, targeted only at the
development of women enterprises in India.
There are number of schemes launched by Government from time to time for the
promotion of women entrepreneurs in India. In some schemes, there are provisions for
women whereas some are exclusively for women. Few are:
a) Integrated Rural Development programme (IRDP)
b) Training of Rural Youths for Self employment Mission (TRYSEM)
c) National Bank for Agriculture and Rural Development (NABARD)
d) State Bank of India's Stree Shakti Yogana (SSY)
e) Women Development Cooperation Schemes (WDCS)
f) Indira Mahila Kendra
g) Rashtriya Mahila Kosh
h) Indira Priyadarshni Yogana
i) Mahila Udhyam Nidhi and Mahila Vikas Nidhi
j) Working women forum
k) Trade related entrepreneurship assistance and development scheme for women (tread)
With a view to encourage women in setting up their own ventures, government implements a
Scheme, namely, “Trade Related Entrepreneurship Assistance and Development (TREAD)
during the 11th Plan. The scheme envisages economic empowerment of women through the
development of their entrepreneurial skills in nonfarm activities. There are three major
components of the scheme. Government of India grants up to 30% of the total project cost to
the Non-Government Organizations (NGOs) for promoting entrepreneurship among women.
The remaining 70% of the project cost is financed by the lending agency as loan for
undertaking activities as envisaged in the project. Government of India grants up to Rs.1 lakh
per programme to training institutions /NGOs for imparting training to the women
entrepreneurs, subject to these institutions/NGOs bring their share to the extent of minimum
25% of GOI grant and 10% in case of NER. (iii) Need-based Government of India grants up
to Rs.5 lakh to National Entrepreneurship Development Institutions and any other institutions
of repute for undertaking field surveys, research studies, evaluation studies, designing of
training modules etc.
The scheme envisages that Women Associations/NGOs/SHGs should prepare composite
bankable proposals for a group of women entrepreneurs, and submit to the office of the DC
(MSME) for forwarding to the Banks for their appraisal. Bank examines the proposal and
issues approval. 30% of the loan amount is sanctioned as grant and made available to the
bank by office of DC (MSME) for further disbursement to NGOs.
(xiii) WOMEN ENTREPRENEUR ASSOCIATIONS IN INDIA
a. Consortium of Women Entrepreneurs(CWEI)
b. Association of Lady Entrepreneurs of Andhra Pradesh
c. Association of Women Entrepreneurs of Karnataka (AWAKE)
d. Self-Employed Women's Association (SEWA)
e. Women Entrepreneurs Promotion Association (WEPA)
f. The Marketing Organisation of Women Enterprises (MOOWES)
g. Bihar Mahila Udyog Sangh Bihar Mahila Udyog Sangh
h. Mahakaushal Association of Woman Entrepreneurs (MAWE)
i. SAARC Chamber Women Entrepreneurship Council
j. Women Entrepreneurs Association of Tamil Nadu (WEAT)
k. TiE Stree Shakti (TSS)
l. Women Empowerment Corporation
(xiv) ROLE OF RIICO & RFC IN PROMOTION OF WOMEN
ENTREPRENEURSHIP
For woman entrepreneurs the RIICO and RFC has proved a boon, since the last two
years RIICO has given 25% discount to women on land, earlier it was only 10%. This clearly
indicates that RIICO is interested that more women some into the field of business, in a word
giving women a boost.
The RFC has given a 2% rebate to all women entrepreneurs on an loan amount of
rupees five lakhs. This lead start gives women entrepreneurs a chance to start a business, at
least they are not entangled by money lenders, which in turn allows them to make the best of
the loan given to them. If the same amount is taken from some other source, women
entrepreneurs will find it difficult to repay their loan.
The major role of RIICO includes the following:
a) Providing with loans facility : Under the re-finance scheme provided by the Industrial
Development Bank of India, the RIICO extends term loans to every industrial unit up to a
maximum limit of R.2.5 crores.
b) Contribution in share capital of companies: The RIICO provides economic assistance
to companies by contributing to the share capital. Every year, it purchases shares worth
crores of rupees.
c) Interest free loans: The RIICO provides interest free loans to industrial units to meet
their sales-tax liability.
d) Extends loan facility in association with RFC : In association with Rajasthan Finance
Corporation (RFC), the RIICO extends loan facility to industrial units. Sometimes it
associates with commercial banks also in disbursement of loans.
e) Distribution of capital investment grants for setting up new units: On behalf of the
State Government, the corporation distributes capital investment grants to entrepreneurs
who intend to set up new industrial units.
f) Providing with seed capital: Seed capital is provided to experienced entrepreneurs to
set up industrial units in the State. There is a limit of Rs.15 Lakhs in the case of providing
seed capital.
g) Promotion of industrial enterprises: The Corporation promotes industrial enterprises in
association with private entrepreneurs. Such enterprises are known as joint sector
enterprises or enterprises promoted with State assistance. Every year the Corporation
promotes a good number of enterprises.
h) Software Zone: A software premises was developed with the Cooperation of Rajasthan
Electronics and Instrumentation Limited. It is proposed to set up a gold jewellery zone
and an export promotion zone for handicrafts and garments, near Sanganer airport in the
near future.
i) Campaigning towards industrial development: The Business Promotion Unit of
Corporation, in association with the RFC and Directorate of Industries, has initiated a
campaign for industrial development in the state. This has motivated the original residents
of Rajasthan and Non-Resident Indians to set up industries in Rajasthan.
j) Providing with technical and managerial services: The RIICO provides technical and
managerial services to entrepreneurs wherever necessary. Such services include:
providing with technical information relating to project to be set up, brief outline of the
projects, project reports about technical and economical viability, marketing research
report, financial and managerial consultancy etc. This way it extends various kind of
technical assistance to entrepreneurs in setting up new industries in the State.
k) Merchant banking services: The RIICO acts as merchant banker on the basis of
approval granted by Security and Exchange Board of India (SEBI). It acts in different
capacities as Issue Manager, Consultant, Underwriter and Advisor to companies that
subscribe capital from the public, through the issue of shares and debentures.
l) Rehabilitation of sick units: The RIICO, in association with the RFC, take steps for
rehabilitation of sick industrial units. It also operates special plants of rehabilitation in
association with the Industrial Reconstruction Bank of India.
m) Special concessions to entrepreneurs in allotment of lands: The RIICO offers
concessions to special category of entrepreneurs in the allotment of land. The concessions
are granted in the following ways:
(i) 50% concession to SC/ST category of entrepreneurs, subject to a maximum of 4000
square meters of land.
(ii) 15% concession to handicapped category, subject to a maximum of 2000 square
meters of land.
(iii) 10% concession to women entrepreneurs subject to a maximum of 2000 sq. meters of
land.
(iv) 20% concession to those who set up industries in the field of electronics, subject to a
maximum of 2000 square meters of land.
(v) 25% concession to widows of defense personal, subject to a maximum of 2000 square
meters of land.
n) Industrial Area and Other Scheme: Till March-end 2010, as many as 284 industrial
areas have been developed by RIICO. During 2010-2011, some new industrial estates
were developed and other existing industrial areas were expanded further. Special
attention has been given to strengthen the infrastructure facilities in industrial areas
like Bhiwadi; Neemrana, Lalsot, Phulera, Shahpura, Malviya Nagar, Sitapura,
Bindayaka (Jaipur) etc. in the recent past. Neemarana, which is located on National
Highway No. 8, is being developed as a show-window of Rajasthan. Social
infrastructure facilities are being developed in all the potential industrial areas.
Growth-centres are being developed at Abu Road, Bikaner, Jhalawar and Dholpur at
present. During 1997-98, development work of growth centre at Hamirgarh, Bhilwara was
also undertaken. Four districts, viz., Sirohi, Barmer, Churu and Jaisalmer have been declared
as ‘No Industry Districts’ (NIDs). Their development work is in progress. Export Promotion
Industrial Park (EPIP) has been developed at Abu Road, Bikaner, Jhalawar and Dholpur at
present. During 1997-98, development work of growth centre at Hamirgarh, Bhilwara was
also undertaken. Four districts, viz., Sirohi, Barmer, Churu and Jaisalmer have been declared
as ‘No Industry Districts’ (NIDs). Their development work is in progress. Export Promotion
Industrial Park (EPIP) has been developed at Sitapura, South of Jaipur near the Sanganer
airport. The second EPIP is being developed at Boranada (Jodhpur). As indicated earlier the
corporation is developing through REIL a Software Technology Park at Kanakpura, Jaipur.
An Electronic Hardware Pard at Kukas (Jaipur) and Gold Jewellery Complex at Sitapura
(Jaipur) are also being established.
RIICO has initiated a new scheme of ‘Udyog Shri’, the objective of which is to attract
professionals who posses knowledge and experience and entrepreneurial ability to participate
in the process of industrial development through their own ventures. RIICO would provide
equity participation in the share capital of these projects, which would be thrust areas of high
returns. The aforesaid discussion indicates that RIICO is playing the role of a catalytic for
industrial development by developing infrastructural facilities an industrial areas, by
providing financial assistance, specially in the form of term-loans; by trying to attract
investors through industrial campaigns and by preparing project-profiles and reports.
Rajasthan is on the threshold of a turn around in industrial development and all efforts are
made to expedite the process of infrastructural development as a precondition for further
growth in future. Problems of power, water and transport and communications must be
attended to in right earnest and as speedily as possible. There must be genuine efforts towards
industrial liberalization.
TABLE NO. 5.4
LONE SCHEME FOR YOUNG GENERATION MALE & FEMALE
ENTERPRENEURS
1. Name of the Scheme LOAN SCHEME FOR YOUNG/FIRST
GENERATION ENTERPRENEURS
2. Purpose of Loan For setting up a new project (excluding real estate projects) covering investing in land, buildings, plant and machinery, miscellaneous fixed assets, margin money for working capital etc.
3. Loan Limit Maximum term loan of Rs. 1000.00 lakhs.
4. Promoters’ Contribution Minimum 20% of the project cost.
5. Security Margin Minimum 20%
Collateral Security of appropriate amount to be taken to make up for the short fall in minimum-security margin 20%.
6. Interest Rate Prevailing Interest Rate
7. Repayment Period 7-8 years in quarterly installments including moratorium of 1-2 Years.
8. Rebate on Timely Payment As per prevailing Policy.
9. Processing free, Service
Charges and upfront Fee
@ 0.1%, 0.15% and 0.25% respectively on the loan amount.
10. Eligibility Criteria/Norms 1. a) The promoter should have Technical/Professional degree in any field.
OR
b) Any individual promoter whose project/product is recognized from National Innovation Foundation/ any other similar institution of repute in country or abroad.
OR
C) Promoter having experience of at least 5 years in the related field irrespective of their qualification.
2. Promoter who already has any manufacturing unit with investment (project cost) of Rs. 100.00 lakhs and above, shall not be eligible under this scheme.
SOURCE : Loans & scheme from RIICO (2007-2012)
The major role of RFC is described below:
a) To examine the Industrial Potential in the District: - It is the function of the RFC
to examine the industrial potential of every district and set up new industrial units
there. For this purpose it studies the availability of raw materials, cheap labor, basic
facilities available and the availability of entrepreneurs, etc. as the first step.
b) To Develop Infrastructural Facilities: - The RFC provides basic facilities for
industrial set-up. For this purpose, they approach Central and State Government to
construct roads, providing electricity and water supplies etc., which are essential
infrastructure to start with.
c) Encouragement for the Setting up of Industrial Units: - RFC identify
entrepreneurs and encourage them to set up units according to their individual
capacity and interest.
d) To provide common facility: - RFC provide various kinds of assistance to new
entrepreneurs by effective coordination among Department of Industries, Financial
Institutions, Small Scale Industries Service Organization etc.
e) Consultancy Services: - RFC offers consultancy services to entrepreneurs in
connection with preparation of project reports. It also gives managerial and technical
consultancy services, wherever necessary.
f) Registration of Small Units: - RFC offer two types of registrations. First of all, a
temporary registration to avail the promotional assistance from the government and
thereafter for permanent registration, if the concerned unit fulfills all the requirements
desired by RFC authorities.
g) Rapid Industrialization of the District: - RFC aims at faster development of
industrialization in the district. For this purpose, it makes available raw materials,
finance, labor etc. to the entrepreneurs as and when needed.
h) Balanced Development of the District: - The main purpose of setting up RFC is to
promote balanced development of the state. RFC fulfill this object by their various
activities.
i) To organize Training Programme: - RFC organizes training programmes for
entrepreneurs in association with Industries Service Centres. They provide training to
entrepreneurs in respect of product development, pricing, distribution, and finance
and technology matters.
j) Research and Development Activities: - The RFC take much attention in the matter
of research and development, so as to facilitate product diversification, improvement
in quality and production process; packaging etc.
k) Rehabilitation of Sick Units: - It pays much attention to the development of
handicraft industry in the State. For this purpose, it extends financial and technical
assistance to craftsmen for development of this industry.
l) Development of Handicraft Industry: - It pays much attention to the development
of handicraft industry in the State. For this purpose, it extends financial and technical
assistance to craftsmen for development of this industry.
m) To uplift the socially backward people: - Backward classes include S.C./S.T. and
economically backward people. This centre organizes training programme for these
categories on free of charges and provides margin money support to new
entrepreneurs.
n) Collection and Dissemination of Information: - RFC collects various types of
statistics and other information relating to industries and their set up, and provide the
collected information to the entrepreneurs by organizing conferences, speeches,
seminars, workshops etc. from time to time.
a. SCHEME FOR FINANCIAL ASSISTANCE TO WOMEN
ENTREPRENEURS by RFC
1. Eligibility Criteria: All project mentioned hereunder at (a) to (e) set up by Women
Entrepreneur having minimum promoter share of 51% would be eligible for assistance under
the scheme.
a) New projects in tiny and small-scale sector for manufacture preservation or
processing of goods. (Tiny Enterprises would include all industrial unit and service
industries (except Road Transport Operators) satisfying the investment ceiling
prescribed for tiny enterprise viz. Rs. 5.00 lakh)
b) Existing tiny and small scale industrial units and service enterprises as mentioned
above (including those which have availed of MUN assistance earlier), undertaking
expansion, modernization, technology upgradation and diversification.
c) Sick units in the tiny and small-scale sector including, service enterprises as
mentioned above, which are considered potentially viable. All industrial activities and
service activities (except Road Transport Operators) in the SI Sector.
d) Projects which avail of any margin money or seed / special capital assistance under
the schemes of Central / State Governments, State Financial Corporations and / other
state level institutions or banks (except state Investment Subsidy) are not eligible for
assistance under this scheme.
2. Project cost
a) New Project not to exceed Rs. 10.00 lakhs (including margin money for working
capital)
b) Existing units and service Enterprises Outlay on expansion / modernization,
technology upgradation or diversification or rehabilitation should not exceed Rs.
10.00 lakh per project.
3. Promoter’s Contribution: 10% of the project cost
4. Rate of interest: Prevailing rate of interest as applicable from time to time.
5. Debt Equity Ratio: 1.857: 1
6. Period of repayment: The loan will be repayable over a period not exceeding 10
years including moratorium of 3 years.
7. Security Collateral: Security for atleast 25% of sanctioned amount of term loan in
addition to the first charge of the fixed assets.
8. Application fee under the scheme: the application fees shall be charged 50% for
loan upto Rs. 5.00 lakhs.
b. LATEST SCHEME LAUNCHED BY RFC TO PROMOTE FIRST
GENERATION MALE AND FEMALE ENTREPRENEURS
Yuva Udyamita Protsahan Yojana :
The State Govt. has announced in State Budget that RFC will launch a Scheme in the
name and style of “Yuva Udyamita Protsahan Yojana” for providing term loans for projects
with costs ranging between Rs. 25 lakh to Rs. 100 lakh at minimum rate of interest and on
easy terms & conditions with a view to promote entrepreneurship amongst the youth.
Accordingly, the Corporation has prepared this new scheme for providing financial assistance
during 2013-14, who are at least ITI / Graduate and have innovative ideas but are not in a
position to establish their own ventures because of lack of financial resources. The proposed
Scheme has been framed with the objective to also incubate the youth in the realization of
their innovative but feasible ideas / concepts and to support the same right upto the
production stage. The eligible applicants would be required to apply on-line upto 31st May
2013.
Salient features of the Scheme:
1. That the persons upto the age of 35 (only those born on or after 01.04.1978) and
qualified ITI or Graduate shall be eligible to apply under the scheme. Preference will
be given to the first generation entrepreneurs.
2. All types of projects shall be eligible under the scheme for loans between Rs. 25 lakh
to Rs. 90 lakh, as promoter contribution has to be at least 10% of project cost,
maximum loan can be Rs. 90 lakh.
3. Eligible persons would participate in a competition to win the loans on merits of their
projects. It is expected that about 10,000 or more applications may be received. The
application form will be simple and only brief write-up (maximum 1.50MB) either in
Hindi or in English will be required to be uploaded.
4. In first stage of competition, an independent external panel of eminent persons in the
field of commerce, finance, banking and industry will select the winners. RFC will
finalize this panel and COSIDICI will be associated.
5. Applications will be selected on the strength of their concept and may be awarded
initial prize of Rs. 5,000/- each by 31st July 2013. On submission of DPR (detailed
project report) / Business Plans, they will be eligible for a further sum of Rs. 10,000/-
as hand holding money. These DPRs will be further processed and loan sanction
/documentation will be completed and disbursement will be made accordingly.
6. Rate of interest on loan and Repayment period: @13.50%. However, if project is
implemented within the time period allowed and quarterly installments of principal
sum and interests are also repaid timely then 6% rebate will be allowed on quarterly
basis. Effective Rate of interest will then be @7.50% p.a. (i.e.13.50%-6%=7.50%).
Repayment period will be 7 years including moratorium period of 12 months from
date of first disbursement (i.e. date of execution of loan documents).
7. Promoters contribution: At least 10% of the cost of the project depending on merits of
the project.
8. No loan application fee (Rs. 100/- per lac) and processing charges (0.5% of loan
amount) shall be charged by the Corporation under this scheme (giving further relief
on an average of Rs. 54,000/- per case in loan of Rs. 90 lac).
9. To support and mentor all these entrepreneurs, a dedicated group of RFC officials will
be available. For this purpose, the existing office facilities at Udyog Bhawan will be
utilized. Likewise, RFC will open Facilitation Centres at all Divisional Headquarters
and at Bhiwadi /Delhi / Barmer to facilitate these entrepreneurs.
10. No collateral security will be taken. RFC shall also provide hand-holding support to
the selected prospective entrepreneurs in obtaining allotment of land from RIICO and
other facilities/clearances from different government departments facilities/clearances
from different government departments.
(xv) LOAN SANCTIONED BY RIICO AND RFC TO WOMEN
ENTREPRENEURS
Table 5.5
Loan Disbursement & Recovered by RIICO Rs. in crore
S. No. Year Loan Disbursement Loan Recovered
1 2007-08 394.38 (100%) 284.36 (72.10%)
2 2008-09 643.71 (100%) 583.72 (90.07%)
3 2009-10 269.65 (100%) 390.28 (144.74%)
4 2010-11 1126.04 (100%) 1082.31 (96.12%)
5 2011-12 1279.70 (100%) 918.38 (71.77%)
6 Total 3713.48 (100%) 3259.05 (87.76%)
Source: Finance section of RIICO
Recovery based on Previous year
In the year 2007-08 RIICO disbursed a loan of 394.38 (100%) crore and they recovered
284.36 crore which is 72.10% it means that nearly 28% recovery could meet be made.
Whereas in the year 2008-09 643.71 (100%) crore was disbursed and recovered 583.72 crore
which is 90.07% comparatively better than the previous year. While in 2009-10 269.65
(100%) crore loan was disbursed and 390.28 (144.74%) recovered which indicates this third
year gave the best results as 2010-11 again 1126.04 (100%) was disbursed and that is 96.12%
was recovered. while in the fifth year of which 71.77% was recovered. Therefore it can be
stated that the RIICO did not go into a very big loss it is said and on the margin, it won't be
wrong.
Loan Disbursement
SOURCE: Finance section of RIICO
0
500
1000
1500
2000
2500
3000
3500
4000
2007-08 2008-09
Chart 5.1
Disbursement and Recovered by RIICO
Finance section of RIICO
2009-10 2010-11 2011-12 Total
Series1
Series2
Table 5.6
Loan Disbursement and Recovered by RFC Rs. in crore
S. No. Year Loan Disbursement Loan Recovered
1 2007-08 363.37 (100%) 348.92 (96.02%)
2 2008-09 401.19 (100%) 381.27 (95.03%)
3 2009-10 350.64 (100%) 289.94 (82.69%)
4 2010-11 303.47 (100%) 227.61 (75.00%)
5 2011-12 279.18 (100%) 192.35 (68.90%)
6 Total 1697.85 (100%) 1440.09 (84.81%)
SOURCE : Planning & Coordination cell of RFC, Finance section of RFC
Recovery based on Previous year
Table number 5.6 shows In comparison if we take the RFC's loan disbursement from 2007-12
that is five years it will be seen that the first and second year respectively showed a deficit of
4% and 5% loss in return. While in 2009-10 a deficit of 18% and in 2010-11 and 2011-12
show a very depressive figure of 75% and 68.90% recovery. If we analyze the two tables it
will be seen that the rate of recovery is better in the case of RIICO than RFC
Loan Disbursement
SOURCE: Planning and Coordination cell of RFC, Finance section of RFC
0
200
400
600
800
1000
1200
1400
1600
1800
2007-08 2008-09
Chart 5.2
Disbursement and Recovered by RFC
SOURCE: Planning and Coordination cell of RFC, Finance section of RFC
2009-10 2010-11 2011-12 Total
Series1
Series2
Series3
Table 5.7 Land Rebate to Women Entrepreneurs by RIICO 2007-2012
NAME OF
PLOTS Year Year Year Year Year
2007-08 2008-09 2009-10 2010-11 2011-12
S.
No Area Acre Lacs Area Acre Lacs Area Acre Lacs Area Acre Lacs Area Acre Lacs
1 Sitapura
(Jaipur) Nil NIL NIL 5 0.67 14.85 Nil NIL NIL 12 18424 79.35 8 19323 127.25
2 Jaipur
(North Zone) 58 4.57 283.78 5 1.73 9.10 Nil NIL NIL NIL NIL NIL NIL NIL NIL
3 Jaipur
(South Zone) NIL NIL NIL Nil NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
4 Jaipur
(Rural) NIL NIL NIL Nil NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Source: RIICO Industrial Land in Jaipur (2007-2012)
Table number 5.7 shows that from the year 2007 to 2012 RIICO provided plots to women
entrepreneurs with the rebate of 2%. In 2007 - 08 no land was given in Sitapura area.
Whereas in the north zone 58 area with 4.57 acre land was given in sum of 283.78 lacs. In the
south zone and Jaipur (Rural) no land was provided. In the year 2008-09, in sitapura 5 areas
with 67 acre land was provided with the amount of 14.85 lacs. Whereas in the north zone 5
area with 1.73 Acre land was given with the amount of 9.10 lacs. In this year no land was
provided in the Jaipur south zone and rural area.
In the year 2009-10 no land was provide by RIICO in any of the Jaipur zone. In the year
2010-11 RIICO Provide 12 areas with 4.56-acre land with the amount of 79.35 lacs in the
sitapura zone. Where as no land was provided in the north, south and rural zone. In the year
2011-12 in sitapura zone 8 areas with 4.79-acre land was given with the amount of 127.25
lacs. Where as no land was provided in the north, south and rural zone. This table clearly
indicates that land was provided by RIICO in the year 2008-09 and the lowest land was
provided in the year 2011-12.
(xvi) WOMEN ENTREPRENEURS IN SEVERAL INDUSTRIES
Today we find women in different types of industries, traditional as well as non-
traditional, such as engineering, electronics, readymade garments, fabrics, eatables,
handcrafts, doll-making, poultry, plastics, soap, ceramics, printing, toy making, nurseries,
crèches, drugs, textile, designing, dairy, canning, knitting, jewellery design, solar cooker etc.
What motivates women to aspire for career in business is an interesting factor that leads one
towards entrepreneurship. This apart, the challenge and adventure to do something new,
liking for business and wanting to have an independent occupation are some of the attractive
leverage for women. These factors indicate a relatively deeper commitment to entrepreneurial
profession on the part of entrepreneur. Responsibility thrust, due to death or incapacitation of
a near relation, tax benefit for self and for relations are the push factors. In addition, special
qualifications attained for running a concern, identifying the demand from the market,
external motivation, employment to needy and destitute to set up an ancillary unit, business
already in the family are some of the factors which gave stimulus to women entrepreneurs to
start business.
(xvii) WOMEN ENTREPRENEURS DURING FIVE DECADES
Any understanding of Indian women entrepreneurs, of their identity and especially of
their roles will be incomplete without going in to the Indian history where women have
paused, lived and internalized various role models. Some have taken entrepreneurship roles,
while some have opted for employment. Million or others have taken idle stereotype social
roles. The brief description of history of Indian women entrepreneur is shown in Fig. 5.3
Chart 5.3
Women Entrepreneurs During Five Decades
Period Characteristic
During 50’s Compulsion
During 60’s Initiation at History of Indian Individual level
Women During 70’s Aspiration
Entrepreneurship During 80’s Equal Opportunities
During 90’s Empowered
During 21st Century Shinning
a) WOMEN ENTREPRENEURS OF THE 50’S
During 1950’s there were women entrepreneurs who-
• Took to creating and managing entrepreneurial activities because of the fact that there
was no income generating male in the family and
• Took roles and responsibilities of the organization the husband had left.
Both the above shifts in the role of women were because of compulsions. But it took
enormous courage and will power to break through the established socio-cultural traditions
and labours. Such women in 50’s were few.
b) WOMEN ENTREPRENEURS OF THE 60’S
This was the decade when there was a spread of women education. This was the
period in which women started to venture into small one-women enterprise at home and from
home. But still enterprise was within the four walls of the home and earning was one of the
important motivating factors without disturbing too much the social fabric of the existing
society of that time.
c) WOMEN ENTREPRENEURS OF THE 70’S
The decade is considered as a decade of change in the sector of women. The women
of this decade started not only developing their aspirations but also ambitions to do and earn
something for their families. The choice of taking up some kind of job/earning activity as
self-employed person was not out of any compulsion or helplessness but because of their
aspirations and ambitions. Some of the reasons for this shift were due to:
• Women started realizing that income generation is not just the responsibility of male
members of the family.
• Women wanted to be independent and wanted their voices to be heard in family as
well as in the society.
• Women wanted to perform variety of roles.
d) WOMEN ENTREPRENEURS OF THE 80’
The decade of 80 witnessed a dramatic shift in this area. The women entrepreneurs of
50’s, 60’s & 70’s had accepted both their social and occupational roles and tried to maintain a
balance between the two. But in 80’s women made personal choices, stood up for their
convictions and had the courage to make up new beginnings. During this decade, many
entered their father or husband’s business as equally contributing partners. But all these were
not well because of hostile society, non-cooperation and support from family, and guilt of not
playing the traditional social roles.
e) WOMEN ENTREPRENEURS OF THE 90’S
The women of this era were considered to be capable, competent, self reliant and
assertive. During this decade, number of women took up the challenge of initiating an
enterprise. developing it and nurturing it to grow. There were many women who join hands
with their parents and husbands and contributed a lot. During the decade women developed
their own identify, acquired self esteem and have shown the society that they can tackle the
problems of enterprises single handedly and independently.
f) WOMEN ENTREPRENEURS OF THE 21ST CENTURY
We just, eventually, left the last century and entered the 21st century. Even though the
world still encounters some crucial issues, when entering the century the optimism is radiated
everywhere. The issue of social imbalance between developing and advanced countries is not
solved yet, even though it tends to become more severe, unfortunately. Let alone issues on
environment and nature preservation that threaten human life in the long run. Meanwhile,
optimistic attitude in entering the 21st century has been declared by many futurists. Alvin
Toffler looks to the 21st century as a phase when human enters a new culture called Third
Wave. The society in this Third Wave is identified as an Information Society that, in terms of
its products, tend to be back to the First Wave, such as energy that could be renewed,
production was not a mass process, migration back to the village and globalization process
due to technology and information advancements. As we all know, according to Toffler the
First Wave is a renewal of the process where humans found and implemented the agricultural
technology.
Meanwhile, Second Wave culture had the characteristics of an industrial society
culture that is highly efficient and tends to give the impression as a greedy economic society.
Although there were some similarities, the Third Wave culture is definitely not a repetition of
the First Wave, as implied so far since it used to be linked to “small is beautiful”. Toffler also
mentioned that the Third Wave is the synthetic form of both previous waves, resulting in
much better quality, more in-depth, comprehensive and thorough than the previous ones. It is
more likely to call the Third Wave as Small within Big is Beautiful. However, the most
important characteristic and most human of this Third Wave culture is the empowerment of
lower people who used to be lost in competition. Consequently, it would eliminate slavery,
imperialism and apartheid in the whole world. Therefore, a monopoly system is not allowed
to develop within this Third Wave culture, in order to keep the market door open for new
comers and innovation. That was what happening with AT and T and Bill Gates (Microsoft)
who had the potential to grow and access 100% of the market in their field. In this case, they
will have to adhere to the regulation prohibiting monopoly.
(xviii) SUCCESSFUL WOMEN ENTREPRENEURS
Although the list of successful women entrepreneurs is quite long, selected
representative women entrepreneurs are mentioned here. Among some accomplished women
entrepreneurs, Smt. Sumati Morarji of Shipping Corporation been seen as beacon to women
entrepreneurs. Smt. Shrayu Daitary of Automobile Radiators, Smt. Yamutai Kirloskar of
Mahila Udyog Limited, Smt. Vimal Pitre, manufacturer of surgical instruments, Smt. Manik
Vandrekar of leather crafts, Smt. Radanika Pradhan of Plastic Industries, Smt. Gogate for
Drugs, Smt. Swati Bhatija in engineering industries, Smt. Prerang Thakore of Jayant
Vitamins Limited, Smt. Nargis Wadia of Inter Publicity, Smt. Neena Malhotra in Exports,
Smt. Rajani Aggarwal in engineering, Smt. Shahanaz Hussain in Beauty Clinical Cosmetic,
Smt. Wadia in Fabrics, Smt. Weheeda Rehman in fast foods all stand out as successful
women entrepreneurs. Other outstanding women entrepreneurs, Smt. Priya Khanna, “Smt.
Savitri Dabi, Smt. Raman Suri, Smt. Madhura Chatrapathy, Smt. Prabha Thakkar, Smt.
Sunanda Pant.
What is more, since the inception of the National Awards to small Entrepreneurs
instituted in 1983, 10 women entrepreneurs have received special recognition awards. They
have attributed their success in their enterprise to hard work, perseverance, dedication,
devotion, determination, integrity and confidence in themselves. However, there are still
others striving to get their enterprises established. Behind every successful women
entrepreneur there is a man and vice versa. Coming to women entrepreneurs in Rajasthan
they ventured into business from the early 70’s. There are a number of women who have
contributed who will be discussed in this chapter how they started their business and how
they have reached this success story.
Mrs. Manju Gupta who is the owner of M/s H.R. Industries which the established in
the year 2001 Mrs. Gupta is a first generation entrepreneurs and owes her success to the RFC.
She states that the RFC was a great economic help to he, but for it her dream of becoming a
reality. Her opinion of the RFC is that her dealings with the RFC has been excellent and
hassle free Mrs. Manju Gupta's unit has a turn over of about 600 lakhs and she has taken two
loans from the corporation he current outstanding amount with the RFC is about 33.14 lakhs
which she says she will repay very soon. When she intends to take more loans for the
betterment of her unit. When we see these achievements of women entrepreneurs and the
financial assistance they got from RFC.
Mrs. Parmeshwari Devi, the owner of Tirupati oil mills of pal is another woman
entrepreneur of a second generation. She came to know about the RFC in the year 2003
where she took a loan of Rs. 10 lakhs to upgrade her business unit, which deals with Tarbuzz
(watermelon) seed processing unit. After repaying this loan, she reapplied for a loan of 13
lakhs for expansion of her unit. The RFC is very happy with the progress she has made. Mrs.
Premlata Gupta is yet another first generation entrepreneurs, who started her business by
taking a loan from RFC in the year 2009-2010 has been 4.59 crores her manufacturing unit is
Omni ice creams initially they used 300 litres of milk and now its about 1000 litres of milk
per day freezing unit. In the year 2003 a ministerial level delegation of Czechoslovakia also
listed this unit. Her company Omni is manufacturing and marketing various ice-creams under
the brand name of "Omni" the net work is established not only in Jaipur but too 16 other
districts of the state the RFC has supported her to go a long way in her business.
Mrs. Pusphlata Baid set up her PET bottles and jars industry in the RIICO industrial
area of Jaipur. Her industry grew into the a profitable business with the help of RFC, Mrs.
Pusphlata Started her industry in the year 2005 and within a span of seven years has shown
shining success the growth turn over is Rs. 159.93 lakhs turnover. The RFC found the
borrower a trustworthy one and the interaction between the lender and borrower has
benefitted both sides. Mrs. Gomanti Devi has set up a Trilook guest house she again is a first
generation entrepreneur who has taken a Rs. 15 lakh loan from the RFC. She is getting good
returns and as a result is able to pay back all her installments in time these women
entrepreneurs feel that its easy to deal with the RFC because the staff support is good, it is not
only a money lending institution.
Gulabo has been born dancing, as she put it, and as a youngster she could remember
herself dancing as a 2 year old. Hailing from the nomadic kalbelia tribe of Rajasthan, she
accompanied her father when he used to beg on the streets of the city, and danced to the tune
of the ‘been’ and the ‘pungi’, the traditional instruments of her art. Her society was
completely against this, but her father stood by her. When she became hungry, he used to
lovingly give her the milk leftover by the snakes to drink. At the age of four however, she
stopped accompanying her father, and got involved in household tasks such as rearing cattle,
cutting wood etc. At the age of nine, she was again allowed to dance on the festival day of
Holi, in the month of phagun (spring), on the roads of the city, and she once again danced to
the tune of the ‘dafli’, the ‘pungi’, and the ‘been’.
When she turned ten, in 1981, she performed at the annual Pushkar Festival in
Rajasthan, along with other girls from the Kalbelia tribe, and was spotted by Himmat Singh
and Tripti Pandey of the Tourism Department, who then called her to perform in a two-day
event. As she was noticed, she was invited to perform in Jaipur, and her society was
completely against her. Her father told society members that he would burn her alive if she
didn’t succeed or went on the wrong path. They reluctantly agreed to this. After this, she
went on to perform in various venues in India and abroad. She still travels, and visits France
twice a month, where she produces music albums with Titi Robin, a French Jazz artist.
Shrimati Sugriva a female entrepreneur from Pali is a woman of low profile, yet had
aspirations to start her own manufacturing unit so, the first took a loan of Rs. 11 Lakhs in the
year 1995, later two more loans were availed by her, she has repaid all her loans timely and
as a result has been able to borrow more from the RFC. Her current turnover Rs. 150 Lakhs,
and says the dues it all to RFC. Shrimati Vidya Beniwal, who is the owner of R.K. colour lab
in Jhunjhunu. She is also a first generation entrepreneur. In 1992 she took her loan from RFC
to start her laboratory, from time to time the took loans to upgrade her business. She has
repaid her loans time to time and holds a clear record with the RFC.
Shrimati Kamala Devi is the owner of Priya bakers at Gayatri Mandir, Baran.
Shrimati Kamala taken a loan in 1995 and has repaid her loan. Now a loan of Rs. 20 Lakhs
has been sanctioned to her, this is because her business is giving good returns. Shrimati Geeta
Kumari of Brija District Alwar, sought financial assistance from the RFC of Rs. 6.57 Lakhs
in the year 2005, she again is a first generation entrepreneur and converted her hotel into a
heritage haveli. The turnover of her hotel for the year 2010 was of Rs. 3500 lakh and the
avoided of 26.10 Lakh for the project initially the had converted her haveli into a hotel on a
small scale, but gradually expanded her business. The RFC found her heritage hotel to be a
prestigious one in Alwar. The RFC staff has been totally satisfied with her work and dealings
with the corporation.
Mrs. Kulsum Malik born on 24th November 1954 in Sardhana district Meerut U.P. in
a muslim family She came to Jaipur with a dream to become a great beautician, for which she
had to work very hard. She began as an apprentice with sattar at Rambagh palace later
branched out on her with a parlour in Jayanti market under the Name of ‘Femina’. After that
Kulsum did not look back, she took a loan to open parlour better equipped with the latest
gadgets. Kulsum also went different beauty schools to improve her skills as a beautician and
today she is a proud owner of a chain of sixteen beauty parlours as well as a factory where
she manufactures her own cosmetic products under the name of Kaya cosmetics. She again is
the first entrepreneur in her family. Her husband has bean a great support to her in achieving
her target.
City Girl Kavita Chaudhary, 27, has been awarded the Emerging woman Entrepreneur
award for the year by the IILM Academy for Higher Learning. Working as a Design Director
for the Jaipur Rugs private Ltd. based in the city, Chaudhary's proficiency in colours and
designs of hand knotted carpets earned the top position in the world market. In 2007 the
company was also awarded the prestigious America's Magnificent Rug award for carpets
with designs and mapping weaved on them. Delving on her background, Chaudhary said, "I
come from a traditional Marwari family from Churu district in the state, where women are
considered followers with no decision-making ability."
Thankfully for her family's open mindedness, she was sent to study Fine Arts in the
USA after schooling from the MGD School. On completing bachelors, Chaudhary joined her
father's business back in the city. "From Jaipur Rugs, I started my career in design
development in 2006. Here, I have a team of 25,000 women from rural India. To make them
literate and more skilled in this field, I compressed the complete computerized design process
by using the same in house team thus upgrading their skills and mindset," she shares.
Researching in design and development, she said, "We are using latest tools and colour. The
demand of our carpets has gone up almost 10 times in the past five years."
The company's continuous progress has attracted the attention of great minds,
management guides and multinational companies. Also included in this team of appreciators
have been Padma Bhushan awardee CK Prahlad. He has researched and done a case study of
the company. "The design team of Ekai, one of the biggest retail chain stores in furniture,
visited our office to learn about our future product development," Chaudhary shares her
vision of the company.
Personally for Chaudhary, "My future plans are to empower women in rural India, so
that they can develop their magnificent skills and make their own decisions." A young Design
Director of Jaipur Rugs, Ms. Kavita Chaudhary has been heading all product developments in
the field of hand knotted rugs and carpets in her company along with working nonstop with
large-scale clients and meeting with a myriad of design demands and products for more than
three years. She has elevated the Company to a new level with her artistic skills and an
aesthetic sense of design and color. She plays a pivotal role in the popularity that is enjoyed
by Jaipur Rugs for its exquisite colors and patterns. Narhet is a village 110 km from Jaipur,
overlooking the majestic Aravali range on one side and lush green landscape on the other. A
15 feet-wide road connects the village to the Delhi-Jaipur highway. It could be mistaken for
just another Indian village off the main highway that tourists pass on road trips around the
country. But this is no ordinary village.
More than 70 percent of the villagers in Narhet earn their living by weaving carpets
and rugs—a traditional art they have learnt and inherited from their forefathers. With a
weaving legacy that goes back to the 1970s, most of them work for Jaipur Rugs Company
Pvt. Ltd. (JRCPL), a 12-year-old rug and carpet making company founded by Nand Kishore
Chaudhary.
Ms. Archana Surana is the Founder and Managing Director of ARCH Academy of
Design. With a vision of imparting design education and developing entrepreneurial skills
among the youth, she laid down the foundation of ARCH Academy of Design in the year
2000. ARCH has been imparting specialized and industrially relevant education and
preparing professionals for the fast changing world of Jewellery Design, Fashion
Technology, Textile Design and Interior Design. ARCH provides an interactive learning
process, which can meet societal needs and value local knowledge systems for a larger
understanding of and respect for human potential and dignity.
Ms. Surana has been successful in the revival of arts and crafts of Rajasthan while
imparting skill-based entrepreneurship training for the development of the artisans, with
government organizations like Micro Small Medium Enterprises (MSME) Govt. of India;
The Department of Science and Technology (DST), Government of India; Development
Commissioner (Handicrafts) (DCH), Government of India; Entrepreneurship Management
Institution (EMI); Rajasthan Mission on Livelihood (RMOL) and the Rural Non Farm
Development Agency (RUDA) et al. She is the recipient of the prestigious Indira Gandhi
Priyadarshini Award for her contribution in the field of design education in Rajasthan.
The Academy offers Undergraduate and Postgraduate courses in Fashion and Textile
Design, Jewellery Design, Crafts and Accessory Design, Interior Design, Design
Management and Design Communication with National and International Certification.
It is her strong vision to empower individuals throughout their learning pathway in
unleashing their natural potential so that they grow intellectually through life, with a larger
understanding of, and respect for, human potential and dignity.
Her experience over the last 18 years in the field of design education has ensured that the
ARCH Academy of Design imparts specialized and industrially relevant education and
prepares professionals and entrepreneurs for the fast changing world of Design where she has
been responsible for the nurture of more than 3000 young men and women over the last
decade. Supported by the vitality of the vocational and professional training programs she
runs in the field of design she has engineered Skills Upgradation Programs for artisans and
the underprivileged under the HRD Scheme of the Development Commissioner Handicrafts
(DCH), Ministry of Textiles (Government of India) in Fashion Accessories.
Most importantly, her belief in Entrepreneurship and Self Reliance has led her to
guide and support several skill based Entrepreneurship development programs sponsored by a
number of Central and State Government institutions like Micro Small Medium Enterprises
(MSME), Government of India, Department of Science and Technology (DST) Government
of India, Rural Non-Farm Development Agency (RUDA), Rajasthan Mission on Livelihood
(RMOL) etc. Ms. Surana is actively involved in the revival and development of the crafts
across Rajasthan. She has formed the Self Help Group- Kumkum, to motivate needy
women towards economic empowerment, enhance confidence levels and create solidarity
amongst them.
A widely travelled and noted speaker, she is on the board of various government and
industry bodies and has been part of important forums all over the world. As head of the
academy she has represented the institution in various International and National forums
including the International Foundation of Fashion Technology Institutes (IFFTI) annual
conference, and International Council of Societies of Industrial Design (Icsid). She has
also been instrumental in the development of links in knowledge sharing and the
strengthening of common curriculum areas within Fashion, Textile and Jewellery Design
with various International academic institutions. Under the funding sanctioned by the British
council she was recently in Scotland at the Cardonald College, Glasgow to finalize
collaboration and signing of MOU between the institutions.
Leela Bordia is one of India’s leading entrepreneurs. She founded Neerja
International in 1978 after discovering a passion for Jaipur’s blue pottery tradition, and the
company remains the first to have continuously experimented and innovated with the craft.
Begun with four craftsmen, Neerja now runs several blue pottery units that employ more than
500 craftsmen, thus also contributing towards social change through its work. Mrs. Bordia
has received numerous awards both at home and abroad, and has held distinguished positions
including the Executive of the Rajasthan Chamber of Commerce and the Federation of
Handicrafts Association.
The vibrant colour, graceful forms and distinctive feel of the Blue Pottery of Jaipur all
have a tale to tell – of itinerant craft traditions that stretched from China to Egypt, the tumult
of history that brought them to Jaipur, the fortuity of enlightened patronage, and the talent of
its practitioners. Jaipur Blue Pottery: A Tribute is the first serious attempt to examine and
contextualize both past and current practice within a craft that is synonymous with Jaipur.
Facsimile reproductions of historic documents are juxtaposed against personal accounts of
today’s creators and their collaborators, revealing the continuity of craftsmanship and
innovation that runs through this tradition.
Source: www.neerjainternational.co.in
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Neerja International is the largest Manufacturer and Exporter of Blue Pottery in India.
It’s Showroom and Warehouse is located in Jaipur City. Leela Bordia founded the company
in 1978. She has been instrumental in creating 1000 unique designs and more than 300 Blue
Pottery products. Neerja International is actively involved in supporting thousands of Jaipur
craftsmen and their families. National Outstanding Export Awards for 1993-1996 and 1998-
2003 Leela Bordia received the Best Woman Entrepreneur Award in 1991. Featured in World
and National Magazines and Newspapers: Vogue, Marwar, Femina, Inside Outside Indian
Express, Discover India Statesman, Flair, Inside Outside, Sunday Mail, The Times of India,
Rajasthan Patrika, Official Magazine of the Bead Association of California, Business in Asia,
Dainik Bhaskar, and Bangalore Times. Various awards from International Societies
commending Neerja's support of the local craftsmen and their families.
Leela Bordia was born in 1950 in Calcutta, India, into a well-off Jain family
Rajasthan. Her father was an executive in a car factory and her mother worked with Nobel
Peace Prize winner, Mother Teresa, amongst the poor and destitute in Calcutta. Her mother's
experiences made a deep impression on the young Leela. In 1968, as Leela completed a
Bachelor of Science degree at Rajasthan University, her mother died at a young age. Six
years, later Leela Married an engineer, Kamal Bordia, and moved to Jaipur, where she
worked as a teacher at a Montessori School. Although some people in her family and
community would have preferred her to stay at home, her husband and mother-in-law
supported her decision to go out to work. In 1976, she gave birth to a daughter.
By 1978, Leela Bordia was visiting local villages around Jaipur to engage in social
welfare activities. The problems of the poor were huge. She did not have sufficient financial
resources to organize any long-term programs. However, having noticed the traditional Blue
Pottery work in the villages, Leela Bordia wondered if this art form could be marketed more
widely as a way of improving the standard of living of villagers. She knew little of ceramics,
so while visiting her brother in the United States, she undertook a one-month course in
pottery techniques and designs. Leela Bordia recognized that Blue Pottery would have
innovative designs to appeal to a large market. In 1980, she established Neerja International
with four craftspeople, two men and two women. In 1981, she became founding secretary of
the Jaipur Rotary Club. Leela Bordia completed another ceramics and pottery course, this
time in Mexico. Back in Jaipur, the business continued to grow.
In 1991, Leela Bordia won an award from the national organization Women
Entrepreneurs and Executives (India). A Swiss exhibition of handicrafts from around the
world visited Neerja International. Leela Bordia continued to see her company succeed
internationally and the standard of living of its workers improve. Work Practices Neerja
International's workers work in their home villages, in ways similar to those of their parents,
and grandparents. Their work is carried out on a contract basis. They deliver the finished
products to central office. Craftspeople pay for the material they need through Neerja's low-
interest loans, paid off with their earnings from producing the Blue Pottery. Neerja
International supports its workers in other ways as well. It provides assistance in organizing
the life insurance, financial help for weddings (which can be a huge financial burden in
traditional Indian culture) and support for widows and families. It also provides medical
services to all workers. Neerja International's work practices also bring broader benefits to the
craftspeople:
Normal village life is not disrupted. In many other Indian villages, men have to go
away to work in factories in the cities. The culture and tradition of the villages is not only
preserved but also strengthened, as the living standard of the people improves. Traditional
artistic skills in Blue Pottery are passed on to future generations, rather than being lost
because young people leave the village. Young people now see a future in continuing the
craft. Innovative and imaginative craftspeople can flourish because they are not part of a
factory production process. Because the work is labour intensive, it encourages employment.
Worker's income depends on the amount they can produce.
The company also flourishes on the work practices it has established. Capital
equipment costs are low because there is no need for a factory or expensive equipment.
Operating costs are low because the work is labor-intensive. Providing the workers are
willing, changes to designs can be made relatively easily, without expensive re-tooling.
Because the company supports its workers and their families, workers have a stake in keeping
the business profitable and growing. Because innovative and imaginative craftspeople can
flourish, new ideas, for products can be produced. Innovation is an essential part of Neerja
International.
Thakurani Jyotika Kumari Diggi, wife of Thakur Ram Pratap Singh Diggi’s steered
the family in another direction after 1988. Beginning with a few small changes, she
transformed the house. Ironically, even as much of the Diggi House remained off-limits,
people occasionally cut through its corridors as a shortcut. The daughter of a Navy officer
with relatively modern values, Jyotika also put an end to the prevailing purdah system in the
house. And soon enough, the house was changed into a hotel in 1991, and named Hotel Diggi
Palace to better attract tourists. The timing was perfect. The year marked the beginning of
economic liberalization in the country. Now serving as the main venue for the biggest literary
festival in Asia, the Jaipur Literature Festival, the palace accommodates thousands of new
visitors every year—a fitting redemption for its less welcoming past.
(xix) SIGNIFICANT ROLES OF WOMEN ENTREPRENEURS
IN ECONOMIC DEVELOPMENT
Optimistic expression was also pointed out by another futurist such as John Naisbitt in
his famous book 'MEGATREND 2000' that mentioned ten big tendency in the 21st century,
which are: global economy booming, renaissance in art, social free market, global life style,
welfare privatization, Pacific rim upsurge, women’s role in leadership, biology century,
religious upsurge and individual victory. Although not all futurists’ predictions mentioned
above were materialized, especially the one on the Pacific rim country upsurge after the
economic crisis, many of them are proven to be close to the empiric fact nowadays. One of
them that is very interesting is regarding the progress of women’s role in business and that
21st century is the century for women. The requirements for this are the ability to empower
them to become the potential strength. Also, the availability of human resources those are
able to adapt technology to handle nature and the environment, and have access to world
markets. Those all will then, in due course, enhance economic growth. Economic
Development Economic development of a country is usually determined by the growth of per
capita income. However, other than per capita income, in the essence of modern economic
growth, we also know that, on average, it might be measured with other fundamental changes
that occur. Such changes are, among other things, the way people live, as they are more likely
to move to cities and work in factories, no longer in farms. That happens as the household
industries tend to decline and replaced by larger enterprises.
Other indicators that we might see are the tendency of the families to reduce the
number of children, so the birth rate begins to fall. Development could be seen also from the
point of view of employment progress, capital, business volume and consumption. In other
words, economic development can be seen in the structural change of the society, and implies
more than just economic growth. Gillis, Perkins, Roemer and Snodgrass (Economics of
Development, 1996) stated that a key element in economic development is that the people of
the country must be major participants in the process that brought about these changes in
structure... Participation in the process of development implies participation of those benefits.
If growth only benefits a tiny, wealthy minority, whether domestic or foreign, it is not
development. Women’s Role in Economic Contribution In light of the explanation about
economic development cited above, I would like to cite Naisbitt' and Aburdene’s statement
that the progress of women’s role in several During this century women are emerging as a
force to recon with. Many of the telecom, Information Technology (IT) and Finance
industries are headed and controlled by women. In fact, the children of 90's started opting her
mother's profession instead of fathers etc. Growing industrialization and globalization, social
legislation, speedy urbanization etc. are the major contributing factors leading for upsurge in
women entrepreneurship. Women have shifted from the kitchen, food, and handicrafts
industries to non-traditional industries like IT, organic, etc. A day is not far off when women
will be shining in mass in the area of entrepreneurship
(xx) PROBLEMS FACED BY WOMEN ENTREPRENEURS
The basic problem or difficulty of a women entrepreneur is that she is a woman this
pertains to her responsibility towards family, society and work. With joint families breaking
up, many women simply don’t have the support of elders. Women have been confronted by
such dilemmas ever since they started leaving home for the work place. On the other hand,
the attitude of society towards her and constraints in which she has to live and work are not
very conducive. In spite of the constitutional equality, in practice the attitude of men is not
only tradition-bound but also even of those who are responsible for decision-making,
planning and research is not of equality. They still suffer from male reservations. This
attitude of reservation creates difficulties and problems at all levels, i.e. family support,
training, banking, licensing and marketing. Women in rural areas have to suffer still further.
They have to face not only resistance or reservation from men but also from elderly women
who are ingrained in the attitude of inequality. In rural areas joint families are still the norm.
The overbearing presence of elders restrain even young men from venturing out, so one can
imagine how much a young girls needs to put up to become economically independent.
Though in rural areas women are working along with men since times immemorial, their
contribution in monetary terms remains unaccounted, or if at all accounted, it is given a very
low value. They are mostly engaged in low-paid, backbreaking agricultural activities or act as
helpers in handicrafts.
It is not that women do not have skills or capacity but they are not properly trained or
initiated in craftsmanship because it is taken as a taboo-it is wasted because when she gets
married she takes away the skill with her. Therefore, a woman can only act as a helper. She
was not allowed to function independently. Training is basic for any entrepreneurship.
Facilities are available, many institutions have been imparting training under various schemes
but again social attitude do not appreciate this independence and this keep women away from
them both in urban and rural areas.
At the government level, the licensing authorities and labour officers and sales tax
inspectors ask all sorts of questions like what technical qualifications you have, how will you
manage labourers, how will you manage both house and business, does your husband
approve of it and the like? Most important question is asked regarding strategies for
marketing both of new material and of finished goods. To market her product she has to be at
the mercy of middlemen who eat up a big chunk of profit. Besides the middlemen try to
exploit women entrepreneurs at both ends. They deny her discount or give the minimum
discount in the purchase of raw material and on the other hand, try to extract maximum credit
discount and commission on purchase of finished products from her.
If she decides to eliminate middlemen, if involves a lot of running about. Secondly, in
these days of stiff competition, a lot of money is required for using advertisement. If the
product happens to be consumer then it takes time to win people away from other products
and make this product popular. And then there is a tendency to always question the quality of
the product produced by women entrepreneurs, though many agree that they are most sincere
in maintaining the quality and time schedule.
Chart 5.4
Problems Faced By Women Entrepreneurs
a) PERSONAL
Any entrepreneur whether male or female is first of all an individual and has its own
plus or minus points. Being women is on one hand is positive in the attributes of dedication,
focused etc. but negative in attributes of submissive, dependent etc. Physical structure wise
also there is difference between men and women. Some of the personal problems associated
with women entrepreneurs are:
• Family responsibility.
• Limitation of undertaking frequent traveling (Mobility).
• Lack of sufficient education.
• Power of limited risk taking
• Low need for achievement.
• Lack of confidence.
b) SOCIAL AND CULTURAL
Socio-cultural environment plays an important role in the success of an enterprise.
Some of the specific problems associated with women entrepreneurs are:
• Male dominated social structure of the society
• Autocratic attitude of officers of different departments
• Indifferent attitude of elders in the family
• Non-availability of women friendly facilities at different locations
• Insufficient laws and regulations related to women employment.
c) FINANCE
Finance is one of the greatest factors responsible for entrepreneurship. Woman
entrepreneurs always suffer from inadequate financial resources and working capital.
Women generally do not possess immovable properties and assets in their names and
therefore cannot be in a position to provide security and guarantee for loan. Some fo the
specific problems associated with women entrepreneurs are:
• Lack of access to external funds due to security and credit
• Complicated procedure of bank and other loans.
• Inordinate delay in obtaining loans.
• Lack of confidence of loan disbursing in organizations on women for continuance of
enterprise.
d) INDUSTRY
Women entrepreneurs do not have a large organizational set up to organize, run
and control their enterprise. Thus, they have to face number of problems related to
promotion and success of enterprise. Some of these are:
• Cut throat competition.
• Scarcity of raw material.
• High prices of raw material (availability of raw material at market rate)
• High cost of production.
• Non-availability of infra-structural facilities for sell and marketing.
• Lack of training facilities in specialized fields.
• Besides above, some other problems can be -
• Non-availability of electricity at site, particularly in semi-urban and rural areas
• Non availability of skilled and semi-skilled manpower at work site for a specific job
work
• Lack of education and training in areas other than the field
e) GOVERNMENT SUPPORT
In the country like ours, government support through programs and policies play an
important role in entrepreneurship development particularly with women. Since woman
has started entering into this venture recently, great deal of their success will depend on
the support of Government. Some of the problems associated are :
• Non - availability of single window policy
• No clear cut policy of Government incentives
f) SOME OTHER BASIC PROBLEMS FACED BY WOMEN
ENTREPRENEURS:-
• The first problem is that the greatest determent to women entrepreneurs is that
they are women. It’s a kind of patriarchal male dominated society. Male members
feel that it’s a big risk financing ventures run by women.
• Even financial institutions are skeptical to given loans to women entrepreneurs, as
they doubt their abilities. Bankers put unrealistic and unreasonable securities to
get loans to women entrepreneurs. According to a report by the limited National
Industrial Development Organization (UNIDO) 12 “Despite evidence those
women’s loans repayment rates are higher than men’s women still face more
difficulties in obtaining credit”, after due to discriminatory attitudes of banks and
informed banding groups.
• Financial assistance of some kind is essential to launch their venture; it can be in a
formal way from a loan from the names or from or savings account. Women
entrepreneurs suffer at this level, because they have inadequate industrial
resources and working capital. The inability is to provide tangible security they
are unable to get funds. Very few women have tangible property in their hands.
• Another great obstacle in women from becoming successful entrepreneurs is that
family obligations at time do not allow them to put in their maximum time and
this deterrent is in developing cultures. Stracher Hen had very rightly stated
“Having primary responsibility for children, home and older dependent family
members, few women can devotes all their time and energies to their business”13.
The financial institutions discourage women entrepreneurs on this belief that
women can leave their business and revert to becoming housemen again; therefore
they are not very safe or secure to be given loans. So a number of women either
depends on their own savings or manage to take loans from friends and relations.
• It is also believed that women entrepreneurs have low-level management skills.
They primarily depend on office staff and intermediates to get things done for
them, more so the marketing side, it should be kept in mind that the intermediaries
while selling keep a big chunk of profit for themselves. Marketing are means
mobility and confidence in dealing with the outside world. Women kept out of it
because of social conditions. Even if they do venture they are in control of the
male family members.
• When it comes to male female competition it is found that since women, despite
giving their service delivering on time, and keeping things in order, their mobility
and freedom restrict them. They are unable to move out at night and even to some
regions, they are thus slightly backward compared to men.
• The knowledge of technology changes, know how, and education level of the
people are significant factors that affect business. The delivery rate of women in
India is found out to be less than men. Many of the women in developing
countries lack the education needed to spur successful entrepreneurship. They are
not savvy of new technology and are unskilled in their use, and at times unable to
gain the necessary training. Lack of access to technical training prevent the
technology from being beneficial or even able to females 14
• The low level of education and confidence leads to low level achievement and
advancement motivation among Indian women to engage in business to engage to
business operation and running a business concern.
• Women entrepreneurs are adversely affected by the high business cost according
to Vikas. “The installation of machineries during expansion of the productive
capacity and like similar factors dissuades the women entrepreneurs from
venturing into new areas 15.
(xxi) REMEDIES TO SOLVE THE PROBLEMS OF WOMEN
ENTREPRENEURS
To promote women entrepreneurs in India, certain measures are already initiated.
But these measures needs to be re-looked again and some viable remedies are to be placed
in the deal with the problems of women entrepreneurs. Some of the measures that may be
adopted are:
a) Provision of separate finance cells for women: In various financial and public sector
organizations that are providing subsidiaries and loans for industries, there should be a
provision of separate finance cells to deal which financial problems of women
entrepreneurs. These cells should be taken care by women only.
b) Establishment of Marketing Cooperatives: Marketing of the products is one of the
biggest problems particularly with women entrepreneurs. To promote their products. It
is therefore, essential to provide assistance in this regard. It should be the endeavor of
marketing cooperatives to assist in:
• Displaying the product.
• Final finishing of the product, if required
• Fixing the price of the product
• Pack the product properly and in a decent way
• Provide the possible locations with the list of purchasers/traders etc.
(c) Supply of raw materials: Quality, quantity and availability of raw material affect
the performance of enterprise. To concentrate fully on the development and
production of the product, it is necessary to ensure availability of raw material in
right quality and quantity to the women entrepreneurs. government should promote
and help in ensuring the availability of good quality raw material as per the
requirement. This will not only help the women entrepreneur to get the raw
material but will also help the women entrepreneur to get the appropriate price of
the material.
(d) Creating social awareness through education: India is regarded as a country of
it's rich traditional values and ethos and women is still considered s a human being
whose major role is to keep herself busy in providing food and upbringing family.
In the changed socio-cultural scenario throughout the world, it is necessary to bring
positive change in this direction. Elders, particularly women folk need to be made
aware through education programmes about the potential of girls and their due role
in society. Efforts should be directed towards increasing the education level of the
adult and young female. Some of the strategies that could be adopted are:
• Making education for girls free and compulsory
• Conducting adult social literacy programmes for female.
• Organizing career awareness forums and meets at different location s and levels.
• Forming self-help groups.
• Enacting plays of successful women entrepreneurs.
• Organizing women fairs.
(e) Providing Training facilities: Developing right kind of personality, attitude and
skill is one of the important and essential aspects for the success of an enterprise. If
provided proper kind of training, women can become good entrepreneur. Some of
the training strategies could be:
• Organizing part time training.
• Conducting training in the area of personality and attitudes.
• Organizing training in different areas of industries.
(xxii) RESEARCH ON WOMEN ENTREPRENEURS
The research conducted on women entrepreneurs is quite extensive in developed
countries, especially in the United States, Canada and the United Kingdom, but there is not
much knowledge of women and the entrepreneurs in Latin America. Specific studies have
been conducted, however, of women entrepreneurs in France, Singapore, Russia, Ireland,
Puerto Rico, China, Turkey, Hungry, South Africa, Israel, Poland, Germany, India,
Lithuania, Greece and Australia.
In order to analyze the main trends emerging from these studies, articles have been
classified according to Gartner’s (1985) "conceptual framework for the creation of new
enterprises: namely the concepts regarding the individual, the environment, the
organization and the processes"16. Shows the map of the literature and presents the main
trends that have arisen from the research on women entrepreneurs and their enterprises.
The individual aspects refer to the person involved in creating the new organization and
include demographic information, background, motivation, working and educational
experiences, as well as psychological aspects. The organization refers to the type of
enterprise created, which includes its strategy, organizational characteristics, the type of
enterprise, structure and the problems faced. The process considers the actions taken by
the entrepreneurs to stat up the enterprise, and includes the identification of opportunities,
the search for resources, the construction of the organization, the administration of the
enterprise, and the response to the environment. Environment refers to the situation
affecting and influencing the organization, and includes legal, political, government sector
and technological aspects.
Most studies on women entrepreneurs were focused on the individual. The initial
studies were devoted to learning about the background and organizational characteristics
of women’s enterprises. However, most recent studies consider wider research on the
problems faced by women entrepreneurs, their administrative practices, perceptions of
women as administrators, their abilities for achieving success, gender differences, conflicts
between their enterprise and family roles, and the vision they have for their enterprises.
Methodologically, most studies are based on surveys and case studies, which are mainly
descriptive and use available samples since there are no databases on women
entrepreneurs, and they frequently do not associate research with theory. Other
methodological issues include the lack of instrument validation, the existence of a sole
source of information, a tendency to generalize behavior and characteristics among
different types of women (women who create new enterprises, women who take charge of
the family business, and difference in age, industries and size) (Brush, 1992). Despite all
these issues, such studies have produced knowledge upon which theories of women
entrepreneurial activity are based and are being further developed.
CONCLUSION
Today, there is a greater awakening among women. Given an opportunity, they will deliver
the results. In education, they have not only excelled but also become top makers. Likewise,
in office and industry, many have shown brilliant results. Even in rural India with education,
women have shown better performance. Educating women is absolutely essential in
straightening her personality. The need of the hour is to provide an opportunity in a
conducive atmosphere free from gender differences. The need for awareness motivation to be
an active member of the society and courage to correct the faults or make counterparts are
great challenges today. After going through the importance and problems of women
entrepreneurs, we see that the laws of the country state that the women are guaranteed equal
rights of participation in political process and equal opportunities and rights in education and
employment. But it's unfortunate that the government sponsored development activities have
benefited only a small section of women, who are urban middle class women. If this is
benefited to rural and other deprived section of women, then only we can be assured that
women entrepreneurs in India will be as successful as other developed countries.
Empowering women entrepreneurs is essential for achieving the goals of sustainable
development and the bottlenecks hindering their growth must be eradicated to entitle full
participation in business. Thamaraisely stated that "it is a short cut to rapid economic growth
and development”17 - Entrepreneurship among women, no doubt improves the wealth of the
nation in general and of the family in particular. Women today are more willing to take up
activities that were once considered the preserve of men, and have proved that they are
second to no one with respect to contribution to the growth of the economy. Women
entrepreneurship must be moulded properly with entrepreneurial traits and skills to meet the
changes in trends, challenges global markets and also be competent enough to sustain and
strive for excellence in the entrepreneurial arena. Woman is bestowed with immense moral
strength than her male counterparts. This has enabled her to tide over the adversities and be a
survivor. She can face any challenge, provided she gets assurance and a rock solid support
from her family and peers.
For the holistic empowerment of women, the social, economic and political aspects impacting
on them must converge effectively. The cultural development of the society has caused a
significant progress in the status of women. More and more women are becoming financially
independent and this has had a remarkable impact on the country’s economy. Creation of
self-help groups in rural India has given an opportunity to the women, not only to add to the
family income but also contribute to the GDP of national economy. A study of UNICEF
conducted in 2005 has acknowledged the contribution of the women members of SHG in the
pursuit of education, health requirement and hygienic food intake in the family. It has indeed
improved the quality of life.
Our society is undergoing a change for the better. Until and unless the term ‘weaker sex’
which is denigrating for the women is erased out totally, and a level playing field is created in
the workplace, we cannot chart our path to prosperity. Family plays a pivotal role in the
development of society. Management starts in the family itself. It is the family, upbringing
and culture, which shape up an individual’s overall personality. As it is truly said, men and
women are the two wheels of the family cart. To maintain a balance, there should be equal
participation of both the sexes. Women should be given their due respect and not treated as
an object. Family development necessitates a mother’s key role in shaping up an individual’s
character. If it were not for the faulty culture and upbringing, we would not have been
witness to juvenile delinquency, female feticide and other such vices, which are detrimental
to the socio economic fabric.
Management starts from home. Human resource development in the corporate has its root
from the individual personality development and vice versa. An effective manager is the one
who can take along the manpower and steer towards achieving the corporate objectives by
creating an amiable working environment. This positivity manifests in the broad picture of
national progressiveness. A woman is the centre point in the family. The values and culture
she imbibes on her progenies has a chain reaction effect on the culture and values of an
organization, which her children may head.
Tips for Women Entrepreneurs
• Start a business that works for you and your personal life
• Research the product/ service
• Assess the market
• Start business with adequate funds
• Do networking
• Consult with professionals