Women 21

CHAPTER TWO
REVIEW OF LITERATURE
A review of literature is based on the assumption that knowledge accumulates
and that people learn from and build on what others have done. Scientific research is
a collective effort of many researchers who share their results with one another as a
community. Although some studies may be especially important and individual
researchers may become famous, a specific research project is just a tiny part of the
overall process of creating knowledge. Todays studies build on those of yesterday.
Researchers read studies to compare, replicate, or criticize them for weakness.
(Lawrence, 2007)
2.1 Background of Indian Handloom
Handlooms are an important craft product and comprise the largest cottage
industry of the country. Millions of looms across the country are engaged in weaving
cotton, silk and other natural fibers. There is hardly a village where weavers do not
exist, each weaving out the traditional beauty of India's own precious heritage.
(http://www.india-crafts.com/textile/indian_handlooms/)
India, wrapped in mystique, enhanced with the romance of fabled crafts, has
one of the finest textile traditions in the world. The quiet sensitivity of the weaver
rooted in custom and ritual had its origin in religious fervour creating a relationship
between him and the cloth that he wove. The cosmos, the ordered Universe, was
considered to be one continuous fabric with its grid pattern of warp and woof over
which is painted life in all its cycles, illusins and dreams. The Vedas, far from being
merely antiquated, enunciate a period in the intellectual life of man which has no
parallel in human history. The Atharva Veda in one of its passages personifies day
and night as two sisters weaving, with the warp symbolising darkness, and the woof
the light of day. The hallowed place that thread and weaving occupied is illustrated in
many hymns of the Vedas one of them said;
Fathers weave who hitherward are come: they sit beside the warp and cry,
weave forth, and weave back
It was undoubtedly cotton which gave the master weavers of India their
splendiferous expression, but another astounding discovery was that silk and woollen
P.G. Department of Home science, Sardar Patel University
13
CHAPTER TWO
clothes were also pre-Vedic in origin, indigenous to India. Tussar and the gold muga
were woven by the tribes in the dark and shrouded forests. Wild silk cocoons were
reared by the tribes of Eastern and Central India who used simple bamboo loin looms
to weave these rough silks.
Religious traditions claimed for their rituals the finest creations of the master
weavers. Craft guilds of weavers, embroiderers, painters and dyers were established
around the main centres of religious worship. Painted cloths which told the story of
gods, astrological charts and esoteric paintings on cloth appeared in temple shrines,
special ritual cloths were also offered to the godhead. There is an isolated group of
weavers in Orissa, following a custom spread over a thousand years, which weaves
the first verse of the Gita Govinda in a vivid red dye in tie-dye fashion, into a silk
scarf which forms the main ritual at the Jagannath Puri temple.
The Kancheepuram weavers claim descent from Sage Markanda, believed to
be the weaver of the gods who wove the first fabric from the lotus fibre. In the South,
cotton cloth is offered to Lord Siva an ascetic, and silk to Lord Vishnu. This accounts
for the cotton looms which sprung up around Siva temples, and the silk looms around
the Vishnu temples. Indian heritage weaves linked with religion mirrored existing
culture patterns, and the rituals that bound man with invisible links to his ancestors
and to God. As a result training schools were started around religious centres and the
richest expressions are found in South India, Gujarat and Rajasthan.
Colonial rule drained India of its precious textile heritage. The value of Indian
chintz and other painted textiles earned colossal profits for the white man. With the
Industrial Revolution in Europe, India was reduced to becoming a handloom supplier
to textile mills in Manchester, Birmingham and Lancashire. The handloom weaver
was nearly decimated, with the import of cheap imitation printed fabric from England.
It was Mahatma Gandhi's missionary zeal which inspired nationalists to spurn foreign
fabric and burn English cloth in public. Handspun khadi became a statement which
decried foreign exploitation of the Indian economy.
Towards the end of the Sixties the mushrooming of power looms posed a
threat to the handloom industry. Entrepreneurs imitated handloom designs, with their
setting up of decentralised power looms competing with the handloom weaver. The
14
CHAPTER TWO
cloth produced was finer and cheaper, so more and more buyers turned to mill cloth.
Despite this very tangible threat, owing to its tradition of design and texture, the
handloom industry continued to survive with the exports of cotton and silk goods
showing a dramatic rise from Rs. Ten crores in the early Sixties to Rs. 350 crores in
1982-83.
The wide range of design and weave peculiar to the region of their origin are
masterpieces dictated by the skills of the particular weaver and his tradition. The
Bengal kantha is embroidered with fine running stitches on tussar silk . . . the phulkari
of Punjab, with beautiful, vibrant compositions in satin stitch, the chikankari of
Lucknow in shadow work and running stitches, the fine kasuti of Karnataka, and the
mirror work of the tribals in Rajasthan and Gujarat are but some of the examples of
embroidery by the skilled women artisans. The ikkats of India, visible in Andhra
Pradesh and Orissa, in their dye resist yarn interlocked to form a perfect design story,
the tehlias of Puttapaka, the Patan patolas, the brocaded ikkats of Gujarat, the ikkats
of Pochampalli, the Paithanis of Gujarat . . . the range is breathtaking.
Today the handloom industry is the largest economic activity in the informal
sector after agriculture, with approximately 3.8 million handlooms in India engaged in
the production of natural fibre fabrics like cotton, silk and woolen and in man-made
and mixed fibre fabrics. Integrally a part of rural life, about ten million people or
more depends on these looms fully or partially for their livelihood. India's heritage has
been subsumed into the national and ethnic design vocabularies in the world.
One has to constantly remind oneself that the weaver is an artist, a musician,
and his loom an instrument of music. He is powerfully aware of every nuance of the
weave and energizes the rhythm of the loom to coax it into reproducing the finest
music in textiles. The raga is established as he throws the shuttle through the tautly
stretched warp threads, back and forth, over and over again. He beats the warp
rhythmically, keeping taal. The wooden pedal is depressed to synchronise the
throwing of the shuttles. The bamboo reeds are his wind chimes. All his senses of
touch, sight and sound come into play during this play of divine music, a reverential
piece of art. Each expression has its own language and its own interpretation, an
expression which deserves
to
be
respected and
admired
for
all
time.
(www.hinduonnet.com/folio/fo9906/99060060.htm-18k)
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CHAPTER TWO
2.2 Development of handloom industry:

Till the 19th century, when there were no machines for the production of cloth,
the handloom industry was the sole supplier of cloth for the entire needs of the world.
Handloom was totally different from the mill-made, semi automatic and power
loom sectors in the area of production, sizing and desizing due to double reeds and
lower speed of weaving. (Rao 1991)
From the early historic period, India was famed for its handloom textiles.
Because of everlasting colour, artistic design and excellent crafts, handlooms have
occupied an important position in respect to its foreign countries from an early
historic period. It has been the largest in the unorganized sector and stood only next to
agriculture in employment generation. It was largely in the co-operative fold and
occupied for 27 percent of textile production which was according to the report of
1991 census. (Sengupta, 1969)
Handloom is an ancient industry in India. The features of this sector vary
across the country. In some parts of Kerala, Tamilnadu, Assam and Orissa, it has
attained the status of a mature industry, and in other parts, it is still an enterprise
confined to the needs of the household.
The last 100 years have seen the growth of mechanised textile production
internationally. In part due to competition, handloom has lost much of its market and
is almost non-existent in most countries. However, handlooms are still a force to
reckon within India and some other Asian countries such as Srilanka, Bangladesh,
Thailand, and Cambodia.
Today, India's textile sector comprises four important segments -- modern
textile mills, independent power looms, handlooms and garments. Though there is a
huge, informal tailoring enterprise, it has not been studied or considered worthy of
public attention, leave alone policy. There are also sub-sectors like textile machinery
manufacturing and spinning sectors, which form part of the textile sector.
Though it employs the largest number of people, the handloom sector is
considered a sunset industry, and there is an air of inevitability given the relentless
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CHAPTER TWO
march of mechanisation, modernisation and sophistication. Still, there are many who
advocates handloom for reasons including ideology, philosophy, sheer love for
handloom products and economic arguments. However, irrespective of the policies,
projects and aspirations arising out of various quarters, the handloom sector is
undergoing changes that are impacting the livelihoods of handloom weavers.
(www.indiatogether.org/2006/feb/eco-handloom.htm - 48k)
Handloom has been a way of life for many people in India. From the
employment point of view, it has occupied a position providing employment to a great
number of people. The employment potential of handlooms was both direct and
indirect. The handloom industry, by virtue of its being the largest cottage industry
provided means of livelihood to about 10 million persons particularly in the villages.
Further , the industry has also provided indirect employment to loom manufacturers,
dyers, twisters, sizers, traders, cloth printers, tailors, fabrics designers, other and so
on. Again , it has provided employment to tens of thousands of salaried employees
who worked in various sales, managerial, executives, technical, supervisory, various
developmental schemes in the handlooms sector worked in central and state
Government Departments, Government sponsored agencies or enterprises, weavers
Co-Operatives .
Though it has served as a source of livelihood for millions of people directly
and indirectly, the economic condition of most of the weavers was below the poverty
line.
The renowned handloom industry of today has been organized through the
medium of co-operatives. There were primary societies in each States of India. These
were affiliated to the main of this board and various other bodies, both the private
organization and Government sponsored bodies, and gave employment to a number of
needy women. The board has enlarged existing markets and explored new ones and
was constantly added to the number of its Emporia and sales Depot. (Sengupta, 1969)
Meaning and definition of Handloom:
Handloom is totally different from the mill made, semi automatic and power
loom sectors in the area of production, sizing, designing and also stronger than the
17
CHAPTER TWO
same type of mill made and power loom cloth due to double reeds and lower speed of
weaving. The word Handloom derives its meaning from the process of operation by
hand of a country made wooden structure called loom. (Rao 1991)
Rayudu (1988) states that Loom is a wooden country made structure used for
making cloth with the sole aid of manpower. Except the handlooms all other types of
looms need power for operation.
The socio-economic significance of handloom weaving and its impact upon
the life and economy of the people of India can better be gauged in the words of
Borpujari (1885) that the loom was in fact the centre of domestic economy, the only
hope of salvation in an hour of distress or despair.
Handloom is the largest cottage industry in India. Many researchers carried
out many studies on cooperative and private weavers and criticize on handloom.
Researchers tried to find out the prospects, difference of handloom and power loom,
different types of loom used by the weavers, the problems faced by the weavers like
high cost of raw materials, marketing and socio economic status of handloom weavers
etc.
Venkaraman (1937) was one of the pioneers to has worked on this industry in
the erstwhile Madras Presidency and Bombay Deccan. The study highlighted the
economic problem faced by the weavers. Bishambhar (1956) worked on handloom
weaving exclusively in North India, Raghunath (1959) concentrated on this sector in
Madhyapradesh, Aloysin (1960) worked on handlooms in Malabar and South kanara
districts, Krishnamurthy (1969) who worked exclusively on cotton handlooms in
India, have all looked into the different aspects affecting handlooms in different parts
of the country. The stress has been on the general low economic standard of weavers,
poor level of productivity, absence of modernization and the greater need for
Government patronage.
Rao (1973) in his work on handlooms in India had covered extensively the
position regarding looms. Angadi (1976) had made extensive study in Bijapur
districts of Karnataka on both handlooms and power looms. He had observed that the
condition of power loom weavers was far superior to that of handloom weavers.
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CHAPTER TWO
Arulanadam (1980) in his work on handlooms of Tamilnadu dwelt upon the general
economic condition of weavers. Though Tamilnadu has strong cooperative base and
accounts for a large part of handloom exports yet the weavers were under constant
competitive threat and pressure from the powerful power loom sector. Rao (1984)
made a case study on the cooperative sector of the handloom industry in Mehaboob
Nagar districts of Andhra Pradesh. His findings were also indicative of the poor
economic condition of the weavers. Mahapatro (1985) had researched on cotton
handlooms in Orissa. His findings were similar to many of the former research
findings in other states. Subramaniam, et.al. (1985) had studied consumer behavior
regarding handlooms products. The place of work was Vishakhapatnam city and the
findings highlighted the fact that certain categories of handloom fabrics are widely
popular among consumers compared to mill made fabrics. Das (1986) who had made
an attempt to study handloom industry in Assam found low membership and politics
in handloom cooperative societies as major impediments. Problem faced by the
weavers regarding finance, marketing, raw materials and loom modernization were
also highlighted. Sarngadharam (1987) had made an interesting study on the impact
of handloom weavers cooperative societies on the weavers in Kerala. He observed
that weavers under cooperative fold benefited much compared to the independent
weavers but he found that the weavers cooperatives themselves also needed
revitalization so as to become more efficient. Rayudu (1988) made a comprehensive
study of textile cooperatives in Andhra Pradesh. He has dealt with handloom
cooperative, present condition and steps for better organisation and management of
handloom cooperatives in the State. Socio-economic conditions of women workers in
handloom units in Panipat (1989), a study conducted by the Labour Bureau,
Government of India, found that women did not get status and benefit of a regular
worker. Besides, they were paid less than men and the overall working conditions for
them were not satisfactory. In the article entitled The Craft of Hand Weaving Rao
(1991) explained the development of various looms viz; primitive looms, pit looms,
frame looms and semi- automatic looms. He also placed the raw materials used by the
weavers as cotton, pure silk, artificial silk, wool, jute, coir, hemp, flax and a variety of
synthetic fibres, fancy yarn and also golden and silver thread zari. Dash
(1996),explained the Role and Working of Handloom Industry in Western
Orissa to assess the economics of handloom weaving among different caste groups
19
CHAPTER TWO
(as traditionally the industry is divided on the basis of caste) in order to identify the
process of decline at work. Sudan (1997), in his comprehensively written book
entitled Marketing Management of Handloom Products in Jammu & Kashmir
placed a detailed and critical study of marketing management effectiveness. This book
has covered all the important aspects of marketing management right from the product
management; market oriented marketing organization and also the suggestions to
overcome the shortcomings of the marketing organization. Roy (1999) illustrated the
switching of handloom weavers to power looms in Tamil Nadu. He had undertaken
few case studies in this regard. The major finding were that handloom being slow
machines often faced problems delaying in delivery schedules and about 1.50 lakh.
Handloom in the State were engaged in non- competing goods such as very high
quality silk sarees Sundari, and Mukund, (2001) in their book entitled Traditional
Industry in the New Market Economy The Cotton Handlooms of Andhra Pradesh
provided an insight of handloom performance and prospects of this industry in the
state.
The Industrial Policy of Kerala with reference to Handloom, Handicrafts,
Khadi and Village Industry (www.technopreneur.net) gives due emphasis on the
development and production of value added, diversified and innovative products from
traditional industries on a cluster based approach. Some of the serious problems of
handloom industry in the State were due to completion from cheap power loom
cloths, non-availability of quality yarn, inefficiency in the system particularly in the
cooperative sector. Suggestion for supplementary State schemes and popularization
and implementation of Central Government sectors were made.
The Industrial Policy of Madhya Pradesh recognizes the significance and
contributions made by handloom, handicrafts and cottage industries. The policy pays
close attention to the development of Handloom sector. It gives provisions to
rehabilitate those weavers co-operatives societies which have exhausted their credit
limits and are enable to provide employment opportunities to their member. The
thrust is given on providing employment opportunities to their member.
(www.technopreneur.net)
Rani and Prema Kumari (1992) in their article Impact and Evaluation of
Cotton Silk handloom Weavers Co-operative Societies- A Study in Rural Area,
20
CHAPTER TWO
have recommended for a system to provide adequate finances, procurement of quality

raw materials, implementation of new technology, education of weaver-members,
supervision of co-operative societies, to bring about desired results.
Sharma, Kanwar, et.al. (2008) found out that Traditional handicrafts and
handloom of Kullu district, Himachal Pradesh, Handloom weaving and handicraft
are the cultural heritage of the Himachali people and an indispensable part of the lives
of Kulluites. Bhushi, Pharsiyawar, (2004) explained in their study Some
perspectives in handloom and power loom textile industry - a case study, that
textile industry is the single largest foreign exchange earner for India, accounting for
about 8percent of GDP, 20percent of the industrial production and over 30percentof
export earnings, employing 38 million people with only 2-3percent import intensity.
The paper discusses about the status of handloom & power loom industry in the
region, which has about 22,000 handlooms and 6,000 power looms and are major
contributors of economy of Karnataka state in India. It probes into the operational
management of handloom sectors and identifies the issues for effective strategic
management.
The NCDC Bulletin (1991) has disclosed some interesting facts of handloom
sector in Jammu & Kashmir. It states that contribution of handloom sector in the state
economy was around Rs, 100crores, out of which Kashmir division accounted for 70
to 75 percent. During the year, handloom sector provides direct and indirect
employment to over 55000 persons during the year. 140 handloom co-operatives
societies have been registered by the Director, Handloom. During 1990-91, 30
handloom co-operative societies were registered against the target of 20 societies. Out
of 36000 weavers, only 10 percent have been brought under co-operative fold.
Institute of Rural Management, Anand (1989) in a Study of Interventions in
the Handloom Industry observed the following findings:
Only 37 percent of total weavers (excluding North-East) are state aided

weavers (i.e. covered by the co-operatives, corporations etc.). The balances of
63 percent of weavers are managing with little or no state support.
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CHAPTER TWO
Handlooms, even without state-aid, are better than the IRDP Milch Animal
Scheme.
The simplest modernizations in handloom as compared to similar

modernization in IRDP have an outstanding cost-benefit ratio.
State interventions in handloom (subsidies, revenue support) were definitely

better than the interventions in the NTC.
12percentof weaver households (excluding North East) are relatively affluent

having an income average about Rs.1110/- per month from weaving income
alone.
36 percent of weaver households earned an average total income of Rs. 250/per month, of which weaving income is only Rs.150/- per month.
There is no significant difference in socio-economic status of weavers who are

with state support and those with no state support.
By and large, state aid did not help poor weavers substantially to get out of the
trap of poverty.
It has been observed that various scholars have attempted to explain the
importance of handloom industries in the country and also in different parts of the
world. Still it is strongly felt to make more attempts to study the various implications
of Handloom sub-sector with special reference to weavers private and co-operatives
of Manipur
The handloom sector is unique in India. It has been the most popular
manufacturing sector in the previous centuries, and has been the mainstay of rural
industrialisation in India. Handloom sector has been catering to the clothing needs of
India, and various other countries for centuries altogether. Modern textile industry has
grown on this sector, through mechanization and modernization. However, the most
modern industry follows the principles of weaving set by the traditional handloom
weaver. Unlike any other industrial endeavour, handloom sector still continues
alongside
the
most
modern
textile
machinery.
(http://opensummit.opend
22
CHAPTER TWO
emocracy.net/2007/05/17/women-handloom-workers-facing-the-brunt-of-economicreforms-in-india/)
In the world of handlooms, there are Madras checks from Tamil Nadu, ikats
from Andhra and Orissa, tie and dye from Gujarat and Rajasthan, brocades from
Banaras, jacquards form Uttar Pradesh. Daccai from West Bengal, and phulkari from
Punjab. Yet, despite this regional distinction there has been a great deal of technical
and stylistic exchange. The famed Coimbatore saris have developed while imitating
the Chanderi pattern of Madhya Pradesh. Daccai saris are now woven in Bengal, no
Dhaka. The Surat tanchoi based on a technique of satin weaving with the extra weft
floats that are absorbed in the fabric itself has been reproduced in Varanasi. Besides
its own traditional weaves, there is hardly any style of weaving that Varanasi cannot
reproduce.
Assam is the home of eri and muga silk. Muga is durable and its natural tones
of golden yellow and rare sheen become more lustrous with every wash. The designs
used in Assam, Tripura and Manipur are mostly stylized symbols, cross borders and
the galaxy of stars. Assamese weavers produce beautiful designs on the borders of
their mekhla, chaddar, riha (traditional garments used by the women) and gamosa
(towel). It is customary in Assamese society for a young woman to weave a silk
bihuan (cloth draped over the chest) for her beloved as a token of love on Bohag Bihu
(New Years Eve).
From Andhra Pradesh, Orissa and Gujarat come the ikats. The ikat technique
in India is commonly known as patola in Gujarat, bandha in Orissa, pagdu bandhu,
buddavasi and chitki in Andhra Pradesh. In the ikat tie and dye process, the designs in
various colors are formed on the fabric either by the warp threads or the weft threads
or by both. The threads forming the design are tied and dyed separately to bring in the
desired color and the simple interlacement of the threads produces the most intricate
designs that appear only in the finished weaving. The Orissa ikat is a much older
tradition that Andhra Pradesh or Gujarat, and their more popular motifs as such are a
stylized fish and the rudraksh bead. Here the color is built up thread by thread. In fact,
Orissa ikat is known now as yarn tie and dye. In Andhra Pradesh, they bunch some
threads together and tie and dye and they also have total freedom of design.
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CHAPTER TWO
Some say that ikat was an innovative technique, first created in India, which
was later carried to Indonesia, the only other place in the world with a strong ikat
tradition. (http://www.india-crafts.com/textile/indian_handlooms/)
Handloom Textile Weaving includes shawl making, yarn spinning, Khadi
weaving and related tasks. Weaving is an act of passing threads or strands of material
under and over each other. By weaving cloth, rugs, blankets shawls and other such
materials are manufactured. Natural fibers used for weaving are cotton, silk and wool.
Synthetic fibers such as nylon and Orlon are also used.
Due to mechanization, weaving is now done with the help of machines.
Machines have increased the production and improved the quality of the final
products. But traditional method of handloom weaving is still practiced in some states
of India.
Shawls of Kullu and Kashmir are famous all over the world. Shawls are a
protective layer of woolen stuff against winter. Kullu and Kashmir Shawls are
prepared from angora and pashmina pure wool. There are different varieties of shawls
- with borders on both opposite sides, borders on all four sides, shawls with floral
patterns, shawls with natural images or Phulkari work etc.
Today Indian rugs are in demand. These are very cheap and easily available,
during their invasions, Muslim rulers introduced rugs. These rugs were of Persian
style and were preferred to Indian rugs. Due to the flourishing industry of rugs,
weavers shifted their focus from shawls to rugs. (www.destinationindiatourism.com /
india-craft-tours/handloom-textile-weaving.html - 19k -)
The necessity of handloom sector:
August 15, 1947 marked a turning point for the handloom weavers of India.
Mahatma Gandhi's use of Charkha, the spinning wheel, as a symbol of national
regeneration and the subsequent focus on the handloom weavers during the freedom
movement was largely responsible for the breakthrough. But little could be done in
terms of fiscal assistance to protect them from the onslaughts of the machine.
24
CHAPTER TWO
The dawn of Independence provided an opportunity to accord priority

treatment to the handloom industry. At the time of Independence, there were about
three million handlooms in India, largely of poor quality because of inferior raw
material and ill-organized marketing infrastructure. The situation worsened in 1952
due to a slump in the textile market which led to a heavy accumulation of handloom
stocks. The All-India Handloom Board was reconstituted at the initiative of the then
Minister for Commence and Industries,
Krishnamachari, seven years after its
dissolution in 1945, to advise the Government and propose schemes for the
development and survival of handlooms.
With a view to raising funds for the industry and organizing weavers
cooperatives the Khadi and Other Handloom Industries Development Act was passed
on1953.
To facilitate marketing of fabrics made in the handloom cooperatives, a
national level apex body called the All India Handloom Fabrics Marketing
Cooperative Society was set up in 1955. Subsequently, the Weavers' Service Centre
and the Indian Institute of Handloom Technology were set up to provide infrastructure
back up in the vital areas of applied research, service and training.
The Handloom and Handicrafts Export Corporation of India Ltd (HHEC) was
set up in 1958 to promote export of handlooms. To ensure a steady supply of raw
materials such as yarn, dyes and chemicals to the State handloom organisations, the
National Handloom Development Corporation (NHDC) was set up in 1983. As these
schemes for the development of handloom industry were not enough to revolutionise
this sector, the Government appointed a high powered study team and on its
recommendations the Office of Development Commissioner (Handlooms), a nodal
agency at the Centre, was set up in 1976 to ensure a scientific growth of the handloom
industry. Since then the Office of the Development Commissioner for Handlooms has
been implementing various welfare schemes for the benefit of the handloom weavers.
Some of the major programmes relate to supply of inputs, production, marketing,
welfare package, training and enforcement of Handlooms (Reservation of Articles for
Production) Act, 1985.
25
CHAPTER TWO
During the VIIIth Five Year Plan (1992-97) the Centre released Rs.1, 098.8
crore to the State governments and other agencies to implement various schemes for
the benefit of the handloom weavers. As a result, the production of handloom fabrics
registered more than 14-fold increase from a level of 500 million sq. meters in the
early 50s to 7,235 million sq.mtrs of cloth production in the early 50s to 7.235 million
sq. mtrs in 1996-97.
The export of handloom goods also increased and touched approximately
Rs.2, 100 crore in 1996-97. It has now become the largest economic activity in the
country after agriculture, providing direct and indirect employment to more than three
million weaver households. This sector contributes nearly 22 per cent of the total
cloth produced in the country. (pib.nic.in/feature/feyr98/fe1298/f1712981.html - 9k -)
Handloom sector is a very ancient industry in India. In India, textile sector
today comprises four important segments viz, modern textile mills, independent
power looms, handlooms and the garment sector. There are also sub-sectors like
textile machinery manufacturing and spinning sectors which form part of the textile
sector. However, there are many advocates among the Indian population, who support
the cause of handlooms for various reasons including ideology, philosophy, sheer love
for handloom products, economic arguments etc. Irrespective of the policies, projects
and aspirations arising out of various quarters, handloom sector is undergoing changes
which are impacting on the livelihoods of the handloom weavers. Some of the factors
are internal and some are external factors related to the growth of modern textiles
sector. (Vyas, 2007)
2.3 What is Entrepreneurship?
Entrepreneurship is the propensity of mind to take calculated risk with
confidence to achieve a pre-determined business or industrial objective. In substance,
it is the risk-taking ability of the individual, broadly coupled with correct decision
making when one witness a relatively larger number of individuals and that too,
generation after generation, in a particular community, who wages themselves in the
industrial or commercial pursuits and appear to take risks and show enterprise, it is
acknowledged to be a commercial classes.
26
CHAPTER TWO
Enterprise finds manifestation in different ways. The capacity to take risk

independently and individually with a view of making profits and seizing an
opportunity to make more earnings in the market oriented economy is the dominant
characteristics of modern entrepreneurship. Enterprise ready for the pursuit of
business and responsive to profit by way of producing and /or marketing goods and
commodities to meet the expanding and diversifying actual and potential needs and
demands of the customers is what constitute the entrepreneurial staff. But, this kind of
sensitivity of enterprising citizens throws up a species of entrepreneurs who are
mostly merchantile in outlook and performance. In the underdeveloped countries like
India, a new species of entrepreneurs is desirable, because here the economic progress
has to be brought abut along with social justice. Entrepreneurship in India, therefore
has to sub serve the national objectives. There is an apparent conflict between social
objectives and economic imperatives. This conflict has to be resolved first by the
individual entrepreneur in his own mind and make economic growth, which includes
industrial development, as one of the instruments of attaining the social objectives. A
high sense of social responsibility is thus an essential attribute of the emergent
entrepreneurship in India.
Entrepreneurship flourishes only under the right atmosphere which is
conducive from the social, political and economic point of view. Even though the
urge to excel others and to create something new is something, which is inborn and
psychologically oriented in the larger analysis, this urge to excel other will fail to
obtain the full freedom of expression unless the right environment is available.
Entrepreneurial environment therefore, is one in which there is a high awareness of
potentials and enough source of capital is available, and also where there are
sufficient number of individuals and institutions which provide adequate help and
advice for the establishment and growth of industrial enterprise. But such help and
encouragement required for the flourishing of the entrepreneurship can come forth
only when the social, political and economic condition are conducive.
Role of entrepreneurs in socio economic development of the country:
Entrepreneurs, on the other hand, as Schumpeter and many others have
pointed out, are distinct from business owners and managers. They are essentially
27
CHAPTER TWO
strategic innovators, seeking profitability with growth. Promoting entrepreneurship in

that sense is intrinsically different from promoting small- scale industry.
If small business in the developed countries has received special attention it is
because it has been the fountainhead of innovation and creativity. Studies have
brought out that a large number of innovations have come from small rather than large
business. At this innovative firms entered the market they made profits and created
jobs. In the U.S President Jimmy Carter and Gerald Ford emphasised that small
business created 60 percent of the new jobs in the United States. And this
employment generation was due to its better financial performance. Similarly, the
Bolton Committee, 1971 and the Wilson Committee, 1979, also concluded that the
small business in the U.K had higher profitability than large business.
The studies on entrepreneurship also point out that most of the risk
entrepreneurial management lies not in misperception of opportunity, but in trying to
persue opportunity without adequate resources.
In term of benefiting the people, the development of small and medium-scale
industries and business has offered many advantages. Most important perhaps, amid
the mounting unemployment are the small and medium enterprises which generate
more jobs and often use labour-intensive methods of production. Industries and
business of smaller size also promote better income distribution and development of
entrepreneurship and general skills, in addition to such broades benefits as rural
industrialisation and increased export earnings.
One of the most potentially fruitful areas of human resources development for
small and medium-sized enterprise is the training of entrepreneurs and managers.
Such training programmes should be as well rounded as possible covering not only
the basic of business technology and so forth but also helping the trainee to identify
their aptitudes, motivating them, encouraging innovative thinking and helping to
develop personalities and attitudes geared for success.
28
CHAPTER TWO
Definition of Entrepreneurship:
Cantilon (1730) defined entrepreneurship as self-employment of any sort.
Entrepreneurs buy at certain prices in the present and sell at uncertain prices in the
future. The entrepreneur is a bearer of uncertainty.
Say (1816) explained entrepreneur as the agent "who unites all means of
production and who finds in the value of the products...the reestablishment of the
entire capital he employs, and the value of the wages, the interest, and rent which he
pays, as well as profits belonging to himself."
Frank Knight (1921) expressed that entrepreneurs attempt to predict and act
upon change within markets. Knight emphasizes the entrepreneur's role in bearing the
uncertainty of market dynamics. Entrepreneurs are required to perform such
fundamental managerial functions as direction and control.
Schumpeter (1934) defines the entrepreneur as an innovator who implements
change within markets through the carrying out of new combinations. The carrying
out of new combinations can take several forms; 1) the introduction of a new good or
quality thereof, 2) the introduction of a new method of production, 3) the opening of a
new market, 4) the conquest of a new source of supply of new materials or parts, 5)
the carrying out of the new organization of any industry. Schumpeter equated
entrepreneurship with the concept of innovation applied to a business context. As
such, the entrepreneur moves the market away from equilibrium. Schumpeters
definition also emphasized the combination of resources. Yet, the managers of already
established business are not entrepreneurs to Schumpeter.
Penrose (1963) expressed that entrepreneurial activity involves identifying
opportunities within the economic system. Managerial capacities are different from
entrepreneurial capacities.
According to Leibenstein (1968, 1979), the entrepreneur fills market
deficiencies through input-completing activities. Entrepreneurship involves "activities
necessary to create or carry on an enterprise where not all markets are well established
or clearly defined and/or in which relevant parts of the production function are not
completely known.
29
CHAPTER TWO
Kirzner (1979) expressed that the entrepreneur recognizes and acts upon
market opportunities. The entrepreneur is essentially an arbitrageur. In contrast to
Schumpeter's viewpoint, the entrepreneur moves the market toward equilibrium.
The Entrepreneurship Center at Miami University of Ohio has an interesting
definition of entrepreneurship: "Entrepreneurship is the process of identifying,
developing, and bringing a vision to life. The vision may be an innovative idea, an
opportunity, or simply a better way to do something. The end result of this process is
the creation of a new venture, formed under conditions of risk and considerable
uncertainty." (westaction.org/definitions/def_entrepreneurship_)
Qualities of an Entrepreneur:
Main qualities of an entrepreneur can be presented as below.
1.
High intelligence: An entrepreneur should be highly intelligent. He should be

intelligent in analyzing a problem and finding its solution.
2.
Creative thinking: Entrepreneur should have creative thinking of converting an

idea of establishing an enterprise into its implementation.
3.
Leadership qualities: An entrepreneur must have leadership qualities for

encouraging and directing his followers.
4.
Managerial efficiency: An entrepreneur is also considered a manager of his

enterprise. So he must have managerial efficiency.
5.
Initiative: Initiative is basic requirement for a good entrepreneur.
6.
Risk taking ability: Entrepreneur and risks can be said two sides of one coin.
An entrepreneur must be a moderate risk taker and learn from failure.
7.
Foresight: Foresight ability consists of forecasting approach and opportunity

analysis. By foresight, he can accept new challenges and minimize the element
of risk.
30
CHAPTER TWO
8.
Flexibility: Entrepreneur should be easily adjustable to any type of

environment. He should ignore rigidness and become enough flexible to
business environment.
9.
Motivational skill: He should know the art of getting things done by others
without hurting their self respect. He should have strong motivational skills
towards achievement of goals.
10.
Communication ability: An entrepreneur who can effectively communicate

with customers, employees, creditors, etc. will be more likely to success than
entrepreneurs who do not.
11.
Human relation ability: an entrepreneur must maintain good relations with

employees, customers, creditors, community etc. to success in his business.
12.
High energy level: Success of an entrepreneur demands the ability to work

long hours with creative thinking. So he needs high energy level.
In addition to main qualities of an entrepreneur, other required qualities can be
listed below
Self confidence
Courage
Co-operatives
Clear vision and objective
Ability to co-operate
Independence
Optimism
High willpower (Hitesh, Viramgami 2008)
Types of Entrepreneurs:
Innovative entrepreneurs: Who introduce new goods, method of production,
discover new market or work differently.
Imitative entrepreneurs:
Who imitate innovations,
techniques and
technologies initiated by others.

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CHAPTER TWO
Fabian entrepreneurs: Who are highly cautious and accept change only
when it becomes clear that not doing so will affect their business adversely.
Drone entrepreneurs: Who may suffer loss but are not ready to make
changes in the existing methods.
Solo Operators: Who work alone or employ very few employees.
Active Partners: Who work better in partnership rather than alone.
Challengers: Who always look for new challenges?
Buyers: Who do not like to take much risk? Instead of manufacturing they go
for trading.
Life timers: Who take business as an integral part of their life?
Jumpers: Who start a venture, make it a success, leave it to managers and
start another. (Sahay, Chhikara, 2007)
Significance of entrepreneurship in growth process:
The concept of entrepreneurship has been identified as the most important
factor in the process of economic development. Because it is entrepreneurial
efficiency, which is equated with innovation, becomes responsible for sponsoring
changes in techniques of production leading to development of the area/region. Thus
the entrepreneur is considered to be the kingpin in the growth process who acts as a
catalyst and becomes propeller of change. Swamy (1988) observed that, Columbus
discovered America, Tenzing Norvey climbed Mount Everest and Neil Armstrong
landed on Moon, the driving force behind their accomplishments may be traced to an
incessant urge to achieve the will to conquer and a penchant desire to excel others
which are manifestations of what is conceptually known as entrepreneurship. History
is fully replete with the spectacular rise or ignominious fall of societies of nations
because of the abundance or the lack of the spirit of enterprise among the populace. It
is the supply of people with entrepreneurial thrust that makes a nation to march ahead
or lag behind in the process of development. It is this spirit of enterprise that
transformed man from a simple nomad to cattle- rearer, settled agriculturist, a trader,
an industrialist and what not. The vision of social scientists that are bogged down for
decades and decades together in search of answer for economic development appears
32
CHAPTER TWO
to have narrowed down on entrepreneurship which is considered to be a vital

component for the process of growth of any nation.
The Role of Entrepreneurship in Economic development: The word development is used in so many ways that it precise connotation is
often baffling. Nevertheless, economic developments essentially mean a process of
upward change
whereby the real per capital income of a country increases over a
long period of time.

In his theory of economic development, Ricardo identified only three factors
of production namely: machinery, capital and labour among whom the entire produce
is distributed as rent, profit and wages respectively. According to him, profit leads to
saving of wealth that ultimately goes to capital formation. The role of
entrepreneurship in economic development varies from economy to economy
depending upon its materials resources, industrial climate and the responsiveness of
the political system to the entrepreneurial function the entrepreneurs contributes more
in favourable opportunity conditions than in the economies with relatively less
favorable opportunity conditions.
Viewed from opportunity point of view, the under developed regions due to
the paucity of funds, lack of skilled labour and existence of a minimum social and
economic overheads, are less conducive to the emergency particularly of innovative
entrepreneurs. In such regions, entrepreneurship does not emerge out of industrial
background with well institutions to support and encourage it. Therefore,
entrepreneurs in such regions may not be an innovator but an imitator who would
copy the innovations introduced by the innovative entrepreneurs of the developed
regions. In these areas, according to Mc Cellands concept of personality aspects of
entrepreneurship, some people with high achievement motivation come forward to
behave in an entrepreneurial way to change the stationary inertia, as they would not
be satisfied with the present status that they have in the society.
Under the conditions of paucity of funds and the problem of imperfect market
in underdeveloped regions, the entrepreneurs are bound to launch their enterprises on
a small-scale. As imitation requires lesser funds than innovation, it is realized that
33
CHAPTER TWO
such regions should have more imitative entrepreneurs. And it is also felt that
imitation of innovations introduced in developed regions on a massive scale can bring
about rapid economic development in under development regions also. But it does not
mean that such imitation requires in any way lesser ability on the part of
entrepreneurs. In this regard, Berna opines, It involves often what has aptly been
called subjective innovation, that is the ability to do things which have not been
done before by the particular industrialists, even though unknown to him, the problem
may have been solved in the same way b y the other. These imitative entrepreneurs
constitute the main spring of development of underdeveloped regions. (Sharma,
Basotia 2001)
The spirit of enterprise makes a man entrepreneur. The economic development
of a country is the hard work of entrepreneur. In recent years also, economists have
shifted the emphasis from the growth rate of capital formation to that of
entrepreneurship as the major factor of economic development. (Prassain 2007)
Casson (1982) explains the differential degrees of economic development
between two countries can be attributed to the disparities in entrepreneurial abilities of
the population of the two. Singh (1986) considers entrepreneurship in terms of
economic development. The economic development fosters the development of
entrepreneurial abilities. A country is poor because there is the dearth of
entrepreneurial development. The country with sound entrepreneurial development is
economically viable. Thus, the entrepreneurial ability is considered to be the
important factor in bringing economic development of any country. The economic
development of any less developed or under developed country is the promotion and
creation of small- scale entrepreneurship which can provide self-employment and
utilisaton of local raw materials. (Batra, Dangwal 2007)
34
CHAPTER TWO
Table 1: Industrial Estate Where Units are run by Women Entrepreneurs:

State
No. of Registered
No.of women
Units
entrepreneurs
Tamilnadu
9618
2930
Uttar Pradesh
7980
3180
Kerala
5487
2135
Punjab
4791
1618
Maharashtra
4339
1394
Gujarat
3872
1538
Karnataka
3822
1026
Madhya Pradesh
2967
842
Other States &U.Ts
14576
4185
Total
57452
18848
Source: Business Standard, May 8, 2002

Thus about 30percent of the units available in different industrial estate
belonged to the women entrepreneurs. Increasing pace of government and
institutional support systems have also motivated the women entrepreneurs to opt for
units operating industrial under industrial estates system.
This is the outcome of the efforts made by national and international agencies.
The competent organs of United Nations (UN) have given sufficient time and energy
to improve the status of women in various fields and eliminate discrimination against
women through declaration of International Womens Year (1975), decades (1975-85)
and International Womens Day (8 March) and several other measures. Since then
several government and voluntary agencies carried
out symposia, seminars,
workshops and conference to highlights the importance of women activities including

35
CHAPTER TWO
women entrepreneurship. The emphasis was on the measures to promote selfemployment, participation of women in rural and urban industries, development of
technology and arrangement of trainings for women. (Tirath Bala, & Kumar, 2004)
Entrepreneurship has long been recognized as the key to economic growth.
Small scale enterprises help in enhancing economic growth because they have better
chance to carry out innovations, new means of production, new markets, new
materials and new forms of organizations that lead to increased productivity. Many
researchers carried out many studies on entrepreneurship development and economic
development of the country.
Morris, Jones and Nel (1997) explained in their study The Informal Sector,
Entrepreneurship, and Economic Development the role of entrepreneurship in
economic development, they had been extensively studying in the richer Western (i.e.,
first world) countries, but it could be argued that entrepreneurship is even more vital
in developing countries. This study explored the emerging nature of the informal
sector, and attempts to distinguish entrepreneurial from non-entrepreneurial business
activity within the sector
Muske and Woods (2004) revealed in their study Micro business as an
Economic Development Tool: What they bring and what they need. Micro
businesses, defined as having ten employees or less, represent a substantial subsegment of all small businesses. The study supports the idea that a local economic
development strategy must include development of the micro business segment and
suggests
ways
to
tailor
such
assistance
efforts
and
programs.
(http://whitman.syr.edu/EEE/JDE/volume2-1997.htm)
2.4 WOMEN ENTREPRENEUR IN INDIA :
Since the past two dcades there has been a gradual change in the status of
women in the majority of the developing countries. Women are discovering
themselves and trying to create a niche for themselves in all the fields.
In order to improve their living conditions and increase their income, there is
an increase in the number of women seeking employment. Women are often the main
economic agents to ensure the survival of a poor family, hence, increase in the
36
CHAPTER TWO
number of women entrepreneurs assumes critical importance. There is a growing

awareness among women to start their own business and to be self employed. There is
a wide scope for womens economic empowerment if they are led towards
entrepreneurship, thus becoming not job seekers but job creators (ICECD,
1997, Patil, Madhu, 2007)
Women constitute almost half of the total population in the world. But they
have played a disproportionately small role in business activities. According to an
I.L.O.report in 1980, Women are 50 percent of the worlds population, do the twothirds of the worlds work hours, receive ten percent of the worlds income and own
less than one percent of world property. Historically, women have not been the
earning members but rather acted either as managing the income or as consuming
money. The reasons behind this fact are their marriage, illiteracy, neglected by men,
or socio- cultural conditions.
Today women are launching small businesses at twice the rate of men. With
the turn of century women are enjoying a better socio-cultural environment. Today
society and governments are recognizing women empowerment through the provision
of employment, economic freedom, business venturing and creation of various types
of enterprise.
In simple words, women entrepreneur is one who takes initiative and risks to
set up a business enterprise and run it in the face of risk and uncertainty for the
purpose of generating self-employment, income and growth. She identifies
opportunities and assembles the necessary resources to capitalize on them. She has
business aptitude. According to Harbison (cited from Sudha, 2007), Any woman or
group of women which innovates, imitates or adapts an economic activity may be
called women entrepreneur. The Government of India has defined a women
entrepreneur as an enterprise owned and controlled by a women having minimum
financial interest of 51 percent of the capital and giving at least 51 percent of the
employment generated in the enterprise to women.(Sudha.2007)
Women entrepreneurs have lots of qualities to become a successful
entrepreneurs and helping in developing economic condition of the country. Many
researchers studied various prospects of women entrepreneurship.
37
CHAPTER TWO
Idris (2008), explained her study A Profile of Innovative Women
Entrepreneurs that women entrepreneurs, mainly as a result of culture, have been
found to have traits different from their male counterparts and yet they grapple with
similar business issues including the need to continuously change and innovate.. Data
are compiled from a sample of 138 women entrepreneurs in Peninsular Malaysia, and
analysed using ANOVA to determine any correlation between the independent and
dependent
variables.
The
results
indicated
that
womens
entrepreneurial
innovativeness is very much affected by their age and education, as well as the type,
location and size of business. The study then proceeds with the development of their
profile and concludes with several research and managerial implications.
Dasgupta, Roy and Chattopadhyay (2006) explained in their study Gender
Entrepreneurship in a Rural Scenario: A Case Study of South West Midnapore, West
BengalthatWomen entrepreneurship is a much nurtured notion of today. This paper
unfolds the tale of struggle and strife witnessed by the tribal women in a rural set up
of South West Midnapore, West Bengal to give a realistic tune to the role of women
entrepreneurship in a stringent manner. The message that we get from this paper is
that a micro experiment of rural entrepreneurship can be a macro experiment in the
years ahead.
Marwa (2005) carried out a study on Women entrepreneurs in Jordan
The research revealed that the majority of Jordanian women enjoy what they do and
initially ventured for personal reasons, to gain autonomy. Jordanian women have
benefited from family and/or husband support in influencing them to start a business,
in managing their businesses and in coping with the demands of running the business
from encouragement to assistance in finance, business advice. (http://www.sbaer .
uca.edu/research/icsb/2005/004.pdf)
Gray, (2001) explained that in the global marketplace, women entrepreneurs
are a vibrant and growing economic force. Factors enhancing and inhibiting
Moroccan women entrepreneurs include socio-cultural and religious; family
background; education; and work experience. Challenges women face in the informal
sector was also surveyed. The conclusions drawn from the article include the
objective of increased self-sufficiency as a central goal of intervention programmes.
38
CHAPTER TWO
Strong women's organisations and networks must be an important part of any strategy
of empowerment.
Vijaya (1998) studied and measured entrepreneurial motivation as a separate
entity, distinct from entrepreneurial personality. She classified different types of
entrepreneurial motivation in five core dimensions these were also earlier identified
by other researchers as individual motivations.
a)
Entrepreneurial core dimension: identified the felt needs for taking up

entrepreneurship as a profession.
b)
Work core dimension: incorporated motivations for the preferred type of

work-style.
c)
Social core dimension: motivation for preferred life-styles of individuals wee

gathered under this.
d)
Individual core: the freedom to express unconventional mode of behavior we

included this.
e)
Economic core encompassed the financial reasons.

These five areas constitute positive factors of motivation. However negative
factors also compel individual to take up the entrepreneurial path, for instance,
dissatisfaction with previous occupation, paucity of employment opportunities etc.
(Lerner, Miri, Brush et.al. 1997) A study showed that motivation and goals,
network affiliation, and environmental factors influence the performance of Israeli
women entrepreneurs. On the other hand, the theory on social learning and the
presence of a role model show little or no effect to business performance.
Sarngadharam
and
Resia
Beegam
(1995)
in
their
book
Women
Entrepreneurshiptried to assess the institutional support provided to women

entrepreneurship in India in general and Kerala in particular. The problems confronted
by the women entrepreneurs in kerala, engaged in various industrial/business
activities shortage of working capital and high rates of interest charged by banks were
the two major problems. Travelling a long distance for procuring raw materials is also
inconvenient for the women entrepreneurs. Orhan, Scott, (2001) identified a number
of situations that related to women's decisions to become entrepreneurs, namely
"dynastic compliance", "no other choice", "entrepreneurship by chance", "natural
39
CHAPTER TWO
succession",
"forced
entrepreneurship",
"informed
entrepreneur"
and
"pure
entrepreneur".
Green, David, Dent, Tyshkovsky, (1996), outlined the methodology and
results of a study into entrepreneurism in the new Russian economy. They tried to
reveal whether the Russian entrepreneur can be characterized as similar to
entrepreneurs identified in research in Western economies.
Henderson, Robertson (2000), suggested that generally positive images of
entrepreneurship are hampered by a lack of identifiable role models, poor media
presentation of individuals or small firms, and lack of encouragement from important
influencers on career choice.
Henderson, Robertson (2000), stated that women can be differentiated by
behavioral and motivational factors in their desired to start up in business in United
Kingdom
Hisrich, Fan (1990), presents the business status, individual background, and
social context of China's women entrepreneurs by analyzing the information from a
survey of 50 women entrepreneurs in China. Lee (1996), aimed to uncover the
characteristics of a typical woman entrepreneur in Singapore; the motivational needs
of women entrepreneurs; and the factors influencing the motivational needs of women
entrepreneurs. Alstete(2002), indicated that there are several reasons why individuals
considering entrepreneurship would continued with their goal of founding a business,
including greater control of their destiny, increased satisfaction, more money, and
creating a legacy for their family and children. Yrle, Hartman, Walsh (2004)
showed that complex technology, security, and reliability present significant
challenges to the entrepreneur or small business owner about to enter the e-business
arena.
Winn (2004), gave some insight as to the nature of the problems and
perceptions faced by women as managers and entrepreneurs. Hisrich, ztrk (1999),
focused on the characteristics, performance, and problems of women entrepreneurs in
one developing economy - Turkey. The results indicated that while the women
entrepreneurs exhibited many similarities with their counterparts in other countries
40
CHAPTER TWO
they differed in other aspects such as in their reasons and motivation for starting a
venture and problems encountered. Nearchou-Ellinas, Kountouris, (2004),
described the findings of a unique nationwide research on female entrepreneurial
activity in Cyprus. Dhaliwal (2000), interviewed evidence gathered from both Asian
women entrepreneurs in their own right and Asian women working in family
enterprises, and seeks to provide a clearer picture of the roles, responsibilities and
relationships of these two groups.
McElwee, Al-Riyami (2003), presented a preliminary report of an
exploratory, qualitative investigation of the role of Omani women entrepreneurs in
Muscat. It established the factors that motivate women to become entrepreneurs.
Woldie, Adersua (2004), highlighted the position and role of female entrepreneurs in
the economic development of Nigeria.
Siann, Clark (1992), looked at the results of studies which concerned Muslim
attitudes to work possibilities for them compared with the majority races in Great
Britain. Questions whether "stereotyping" is to blamed for lack of opportunities in
various "acceptable" careers or the attitudes of prospective employers to women
generally and ethnic women in particular. Also examined ethnic family attitudes to
education and choice of occupation for their daughters. The study concluded that the
dissemination of information in the various vernacular languages is to be
recommended to aid in the community's organization for career development in
further/higher education. El-Ghannam (2002) outlined important changes in the role
of women in Arab societies, particularly in urban areas. Author considered what
factors impede or contribute to women's work in all economic sectors in an attempt to
explain and determine the relationship between their activities and social, educational,
economic, cultural and health factors. It suggested that findings are related to family
size, fertility rates, illiteracy and population per nurse. The study recommended
increasing job opportunities and more labor saving technology as ways to increase
opportunity for Arab women. Matlay (2006) posited that conceptual and contextual
convergence is of paramount importance to the ongoing debate of whether
entrepreneurs are born or made and to issues surrounding entrepreneurship education
and its impact on entrepreneurial activities. Schutte (1995) suggested that the male
entrepreneurs have been extensively studied and the focus has now shifted to the
41
CHAPTER TWO
study of female entrepreneurs. Hisrich and Brush (1984) mentioned that most of
what is known about entrepreneurs, their background, motivation for starting a
business and business problems faced by them are based on studies of male
entrepreneurs. It is important to differentiate entrepreneurs on the basis of gender if
women entrepreneurship is to be promoted (John, 2004).
Women entrepreneurship has come a long way in India. In urban areas, more
and more women are successfully running day care centres, placement services,
floriculture, beauty parlours and fashion boutiques. Even in rural areas, self-help
groups are empowering women to start their own micro business. In her study Anju
(1994) emphasized on value orientation among women entrepreneurs. She argued that
women entrepreneurs had a preference for values like achievement, independence,
leadership effectiveness and conformity to social obligations, which change the scale
of success in favour of entrepreneurs. Problems, however, are plenty for a female
business enthusiast who wishes to start her own unit. In general, whatever problems
men might face in setting up a small-scale unit are accentuated in the case of women.
In certain businesses that are traditionally male dominated, women are looked at with
suspicion on their seriousness of managing the business with a long-term perspective.
Rinkal et al., (2004) suggested that women of today are in several ways different
from the women of past years. During the present times, they seek social and
economic independence and are prepared to take risk for the same. Mitchell (2004)
found that women entrepreneurs tend to be motivated by the need to provide security
to their families and by their family circumstances. Women entrepreneurs are
motivated by the need to be independent, economically and otherwise.
Entrepreneurship allows women to combine caring for their family with bringing in
the money needed for day-to-day survival. This trend has also been visible in several
Asian countries including Indonesia and Singapore. In the opinion of Watson (2003)
there are quite a number of potential systematic differences between male and female
owners that might explain why female-owned businesses appear to underperform than
male-owned businesses. The prominent factors are age of female owned business,
family commitments, lesser access to capital, different education levels, prior
experience of business and attitude towards risk. According to Jesselyn (2004)
developing countries should also tap the potential of women entrepreneurs. Women
are generally more serious entrepreneurs in developing countries, even though their
42
CHAPTER TWO
businesses are small. They repay loans more reliably than men, and use their earnings
for the benefit of families and for reinvestment. (http://findarticles.com/p/articles/
mi_6771/is_1_5/ai_n31974124/)
CONCEPTUAL FRAMEWORK OF WOMEN ENTREPRENEURSHIP:
Cantilon for the first time in mid 18th century coined the term entrepreneur and
labeled it with risk bearing functions. Entrepreneur is the one who is not only the
owner of the manufacturing unit but also holds the responsibility to manage the
industrial unit which includes every thing from mooting the ideas of establishing the
concern and arranging capital to exploring and creating the market for the product.
Being an economically rational action, industrial entrepreneurship is a gender
neutral concept, women entrepreneurship is hence a misnomer. Irrespective of the
sexual identity, the entrepreneurs are supposed to have perseverance, risk taking,
decision making ability and leadership as their personality traits. Contextually, any
effort by a woman or a group of woman who innovate, imitate or adapt an economic
activity may be called women entrepreneurs.
Basically, there are two major criterions for identifying the women
entrepreneurial activity. These are level of women participation in equity and
employment position of the enterprise. In this way, women entrepreneurship is
defined as an enterprise owned and controlled by a woman having minimum financial
interest of 51percent of the capital and giving at least 51 percent of the employment
generated in the enterprise to women. However, in 1988 government had taken
initiative for the first time with regard to women entrepreneurs. It laid down the
provisions that an enterprise owned and administered by a woman/women
entrepreneur with a minimum financial interest of 51 percent in the share capital and
giving at least 50 percent employment to women could by treated as womens
enterprise. The investment ceiling were kept at par with the limits specified in 1985
for other units upto Rs 35 lakhs for SSI units and upto Rs 45lakhs for ancillaries. This
definition was revised in August 1991 by dispensing with the employment criterion
for women workers.
43
CHAPTER TWO
Now, under liberalization policy, the official mandate of sexual binding has
been lifted and womens enterprise has been defined as a small scale industrial
unit/industry related service or business enterprise managed by one or more women
entrepreneurs in proprietary concerns in which she/they individually or jointly have a
share of capital of not less than 51 percent as partners/ share holders/directors of
private limited companies/ members of co-operative societies.
Present Position of Women Entrepreneurship:
Traditionally, women were confined to their family life and were satisfied
with 3Ks-kitchen, kids and knitting. Apart from the household activities, they were
engaged mostly in agriculture or at the most in familys trade activities. But, with the
development of small scale industries in the post independent era, there was extension
of kitchen activities of women from 3Ks to 3Ps viz. pickles, powder and pappad.
With the spread of education and awareness, the women hitherto the monopoly of
men. Women entrepreneurs who have set up units manufacturing solar cookers in
Gujarat, small foundries in Maharastra, T.V Capacitors in entrepreneurs had further
shifted from the 3Ps to the higher level of activities. i.e. 3Es viz. engineering,
electronics and energy. Although the number of such units is not large, but the
situation is changing slowly. Now, women are spreading their wings into areas which
were Orissa and electronic ancillaries in Kerala have shown that given the training
and opportunities, they can excel their male counterparts and can prove that no field is
unapproachable to them. However, women participation in entrepreneurial activities
is comparatively a recent phenomenon.
Now women entrepreneurs have come to occupy a significant place in most of
the countries, particularly in terms of their contribution towards economic
development. Even in developed countries like U.S.A, Canada, U.K, France, there has
been a phenomenal increase in the number of self employed women in recent years.
While in U.S.A. women own 1/4th of the small business, it is 1/3rd in Canada, 1/5th in
France and 1/4th
in China. In U.K since 1980, there has been over three times
increase in the number of self employed women. Japan too has noticed a similar trend.
However, picture is quite different in the case of India, though it started earlier than
China and Japan. In India, as per 1991 census, only 185900 women accounting only
for 4.5 percent of the total self employed persons were recorded. Majority of them
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were engaged in unorganized sectors. In 1995-96, there were more than 2,95,680
women entrepreneurs claiming 11.2 percent of the total 2.64 million entrepreneurs in
India which was almost double of the total self employed population in 1981.
The second All India Census of SSI registered units showed that there were
44.759 women entrepreneurs in India. Out of this, 22,661 women entrepreneurs had a
minimum interest of 51 percent of share capital and 18.098 had a financial interest of
less than 51 percent of share capital. Similarly, as per definition of women enterprises
prevailing at the time of the census, there were 10,648 women enterprises in
operation. The CSO survey of manufacturing enterprises (1994-95) showed that out
of a total of 2.14 million proprietary units owned by women entrepreneurs, 1.65
million (76 percent) units and 0.49 million 924 percent) units were located in rural
and urban areas respectively. The survey also pointed out that women entrepreneurs
have been undertaking activities in almost all industry groups and concentrated in
units of beverages, tobacco, and tobacco products, hosiery, garments, wood products,
cotton textiles and food products. Women entrepreneurs in the urban areas have a
better concentration in capital intensive industries as paper and paper products, leather
products, rubber products, chemical products, machinery and transport equipments.
(Tirath Bala, & Kumar, 2004)
FEATURES OF WOMEN ENTREPRENEURS
Value of Self-Fulfillment over Money: Generally, women entrepreneurs are

not driven by the desire to make money. To the contrary, self-fulfilment seems
to be women entrepreneurs basic motivating force because women posses
creative urge to them. Money is simply a way of keeping the enterprise
running.
Sense of Responsibility: Women entrepreneurs feel a deep sense of personal

responsibility for the outcomes of ventures they start.
Imagination: Women entrepreneurs posses a good sense of imagination,

fantasy and creativity. They always remain innovative and thinking for the
new.
Persistence: Women entrepreneurs have strong desire to convert their dreams

into reality. They prefer to achieve self-determined goals.
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High Level of Optimism: Women entrepreneurs generally succeed in their

venture due to their confidence in their ability and a high level of optimism.
Tolerance for Ambiguity: Women entrepreneurs have a high degree of

patience and tolerance for ambiguous and risky situations. Most often they can
operate in ever-changing environment.
Flexibility: Due to feminine nature, women entrepreneurs have their ability to

adapt to the changing demands of their customers and their businesses.
Organizing Capacity: Women are good managers. That is why women

entrepreneurs know how to put the right people ( Sudha 2007)
PROBLEMS OF WOMEN AS ENTREPRENEURS

The Harvard school experts feel that women have a natural deeper sense of
commitment towards their work than their male counterparts. The basic quality of
efficient management of having a futuristic outlook and planning for the unknown,
hard work, patience and perseverance comes naturally to women. Some important
qualities of women are: Accept challenges, ambitious, keen to learn, conscious,
enthusiastic, industrious, motivator, skillful, unquenchable optimism, adventurous,
educated, experienced, intelligent, perseverance and studious. What is more, since the
inceptions of the National Awards to small entrepreneurs instituted in 1983, 10
women entrepreneurs have received special recognition awards.
As mentioned earlier, the term entrepreneur itself is the gender neutral term
and as such women should not be bracketed and treated as a separate class in the
business terminology. Yet right after the 7th plan onward, despite so many
concessions and policies formulated to increase their entrepreneurial skill, most of the
units established by them are in small and tiny sector only. In fact, this has not been
the aim of the government as well, but these entrepreneurs are subject to numerous
difficulties which in turn are the real challenges they face and it will become ever
stiffer in the era of globalisation. (Tirath Bala, Kumar, 2004)
The entrepreneurs and the organisation should be adopted to accept the
problems as an on-going process and strive to rectify them in the most efficient
manner. The problem may be varied and differ from enterprise to enterprise, place to
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CHAPTER TWO
place and from time to time. Some of these problems may be common but others are
more specific and related with the line of activity of the enterprise. Some may be done
to the internal environmental factors while some of the problems are because of the
external environmental factor. These problems directly or indirectly affect he
enterprise. (Hague, Imanul, 1990)
Women mainly face the following main problems as entrepreneurs:Functional problems:a)
Lack of awareness of potentials
b)
Lack of training
c)
Start up problems like seeking approvals and licences
d)
Obtaining seed capital: lack of own savings.
e)
Providing guarantees to lenders: no own assets
f)
Recruitment of skilled manpower: cultural constraints
g)
Problem in financial management : lack of exposure
h)
Problems in production: physical limitations.
i)
Raw material procurement: less mobility and unable to make longer tours
j)
Administrative problems: social cultural factors
k)
Marketing problems in the era of globalisation: less mobile.
Cultural problems:a)
Fear of success: may loose affiliation with friends if successful as an

entrepreneur
b)
Low recognition in society
c)
Parda system
d)
Family and religious duties given more importance in life.
Social problems:a)
Discriminating treatment: do not get a share in fathers business/ property

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b)
Family notions about Ideal woman
c)
Conflicts with values
d)
Role conflicts: professional Vs personal life
e)
Low image associated with working women
f)
Male dominance in family and market
g)
Problems in production: physical limitations and cannot stay out at night.
Psychological problems:a)
Susceptibility to negative attitudes
b)
Low level of motivation
c)
Lower level of self-confidence
d)
Lower self-conceptualization
e)
Easily fall into depression
f)
Lack of persistence
Problem is the main issue for the women entrepreneurs while starting and also
doing the work in the enterprise. They faced lots of different problems like financial,
marketing, raw materials, health problems and socio-economic status of the weavers
in the workplace. Many researchers or entrepreneurs studied on the problems faced by
the women entrepreneurs and tried to solve the problems.
Sengupta, (1960) reveals that immediate effect of women workers work in
factories is a chain resulting from over work, work in factories besides her domestic
work, the physical strain involved is considerable, added to it are the care and worry
of family which should tell us further on womens health and efficiency. Chhajer,
(1977), in her study has pointed out that emotional problem is the main problem in
life of working women. The women worker fells herself that she is emotionally
disturbed because of conflicts. women working are from middle and lower class
families and so they are not able to keep eye and so far as to get up early, see
household work to see husband, children and other family and rush to office to be in
time of work.
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CHAPTER TWO
Problems regarding women entrepreneurs we studied more often than men. As

regards finance, Indira (1990) reports that a committee set up by the government
revealed that one of the major constrain of women entrepreneurs was the non
availability of capital, enhanced by the reluctance of credit institutions to advance
loans for their ventures.
Bezborah and Phukan (2003) explained in the study Problems and
Prospects of women entrepreneurship in Assam that 63.08 percent of women
entrepreneurs mainly faced the problem of finance. Entrepreneurs find it difficult in
getting loan in time, due to problems like non-availability of application forms, delay
in sanctioning loans, delay in disbursement, dishonesty of middlemen etc. The study
reveals that majority (56.92%) of entrepreneurs were influenced by their educational
background i.e. their technical education. Only 36.95 percent women entrepreneurs
were inspired by their husband and 24.61 percent by family members. Out of 60
enterprises under study 49 were found earning profit and only 11 of them were loss
making. Among the 49 profit-earning enterprises 7.69 percent were making profit
over rupees one lakh and 36.92 percent were making profit between Rs. 50,000 and
Rs. 1, 00,000 per annum. Thus, in spite of the motivational managerial and other
constraints women entrepreneurs have run their enterprises profitably and such
contribution towards enhancing their family income. (Prassain, 2003)
Hossain and Uddin (2006) found out that improvement of their socioeconomic status and living conditions, establish them as economically independent,
demand for their products in the local market, availability of raw materials, cheap and
available human resource are main influential factors. Inadequate amount of loan,
excessive formalities in loan processing system, high interest rate and loan processing
cost, unfavorable repayment policy and absence of financial institutions in rural areas
are main problems in financing
Efforts for developing Entrepreneurship among women:
In the early seventies some efforts were made to develop entrepreneurship
among women and organisations were set up exclusively for the purpose. In Andhra
Pradesh there is one organisation viz. Andhra Pradesh Women Co-operative Finance
Corporation for promoting entrepreneurship among women in the State. The
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CHAPTER TWO
Corporation through it field level of organizations identified women entrepreneurs at

the village level with the help of village officials including patowaries, sarpanch of
the village. The Gram sevikas also help in the identification of women entrepreneurs
in the State.
In Gujarat, the Self-employed Womens Association (SEWA of Gujarat) is
responsible for promoting entrepreneurship among women in Gujarat. The SEWA has
its own Co-operative Bank to help women entrepreneurs. In Tamil Nadu enterprising
and hard working women in farming has been encouraged to take up industrial
ventures in the state. The developed states in fact started developing entrepreneurship
among women.
In North Eastern Region there was no systematic effort to develop
entrepreneurship among women, even though Assam started the experiment for
promoting entrepreneurship among educated unemployment youths of the state as far
as back as 1973. In a study conducted by NISIET in 1978 it was pointed out that there
were states in the region which have enough potential for developing entrepreneurship
among the women. The projects set up by the trained entrepreneurs range from
traditional and conventional type of units like cutting and knitting, weaving,
handicrafts, tailoring as well as service units like hotels, engineering, automobiles
servicing units etc. More important, however, is the gradual and perceptible change
both in entrepreneurial climate also in organizational climate. The EDPs have created
awareness about the entrepreneurial opportunities in the state. In a state where women
entrepreneurial and career was taken by chance and not by choice earlier, this trend is
a welcome trend. (Prasain 2003)
Institution
Indirectly
Involved
with
Promotion
of
Entrepreneurship
Development Programmes:
Rural Development Schemes of Central Government:
1.
Development of Women and Children in Rural Area: (DWCRA) is a
scheme of the central Government which encourages women to take up an activity of

their choice. The scheme creates awareness among women and motivates them, by
providing financial assistance. Though the scheme does not conduct any EDP
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CHAPTER TWO
programmes it has a role of promoting entrepreneurial consciousness among women

in rural areas.
2.
Training for Rural Youth for Self Employment (TRYSEM now
discontinued): TRYSEM is a rural development scheme where the local youth are
trained to pursue activities for self-employment. There is considerable scope to treat
this scheme in line with EDP as both are aimed at developing talents to take u
entrepreneurship as a career choice. This scheme is no more in existence now.
3.
Council for Advancement of Rural Technology and people Action
(CAPART): This was set up in 1986 with the aim of coordinating and assisting in
rural development activities of voluntary organisations all over the country. This
organisation need mention as the thrust areas of its includes promoting employment,
income generation and so on, specially targeted at people below poverty line. Though
not directly, the organisation motivates entrepreneurial behaviour.
4.
Self Help Groups (SHGs): The Self Help Groups is comparatively new
concepts, which have created sensation in disbursing credit to the poor people, who
do not have access to institutional credits. Primarily meant for granting laons for
productive purposes laons are also disbursed for payment of school fees, books,
medicines etc. The SHGs are constituted among persons of similar economic
background, which may vary from 10 to 15 in number. The SHGs can go a long way
in providing micro-credit to the poor with initiative to create an enterprise. The North
Eastern Institute of Bank Management (NEIBM) has ventured into this field and has
been interacting with the SHGs operating under them.
5.
The Indira Mahila Yojana (IMY): Prime Ministers Rojgar Yojana
(PMRY), scheme for Urban Micro-Enterprises are schemes of the central

Government, which are important institutions for promoting entrepreneurship among
women and men.
Non Governmental Organisations:
1.
North Eastern Women entrepreneurs Associations (NEWEA): The Non-
Governmental Organisations to promote entrepreneurship by their novel methods.

One among them being NEWEA, which is a womens association, involving women
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CHAPTER TWO
carrying out business and service activities like trade, production, food processing,
marketing etc. One of the objectives of the organisation is to develop enterprises from
locally available resources, which implies women entrepreneurial development in the
region. However there is no systematic plans for training these women for developing
entrepreneurial skills required for business.
2.
Rastriya Gramin Vikas Nidhi (RGVN): Formed in 1990, its sponsorers are
Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India

(IDBI) and National Bank for agriculture and Rural Development (NABARD). One
of its objectives includes focus on attention on groups which are disadvantageously
placed in society but have potential for pursuing socially and economically productive
activities. The other important objective is to assist the urban and rural poor especially
the tribals, scheduled caste, women and children for their economic self-sustenance.
RGVN encourages entrepreneurial development by advancing finance.(Barua,
Borkakoty,2005 ,)
2.5 Understanding
the concept of marketing and selling of the goods according
to customer Needs:
Marketing means more than simply advertising or selling a product. Marketing
encompasses many more activities than most people realize. It involves developing
and managing a product that will satisfy certain needs. It focuses on making the
product available at the right place, at the right time and at a price that is acceptable to
customers. It also requires transmitting the kind of information that will help
customers determine if the product will in fact be able to satisfy their needs.
Marketing has been a perennial problem for the entrepreneur. As the business
environment is fast changing, it is essential that the entrepreneur understands the
importance of marketing in the management of a business enterprise. (Sasikumar,
2000)
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering and exchanging of products
of values with others.
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Selling concept:
The selling concept (or sale concept) is another common approach.
The selling concept holds that consumers, if left alone, will ordinarily not buy
enough of the organizations products. The organization must therefore undertake an
aggressive selling and promotion effort.
This concept assumes that consumers typically show buying inertia or
resistance and must be coaxed into buying. It also assume that the company has
available a whole battery of effective selling and promotion tools to stimulate more
buying.
There will always, one can assume, be need for selling. But the aim of
marketing is to make selling superfluous. The aim of marketing is to know and
understand the customer so well that the product or service fits him and sells itself.
Ideally, marketing should result in a customer who is ready to buy. All that should be
needed then is to make the product or service available (Ducker, 1998)
The marketing concept:
The marketing concept holds that the key to achieving organizational goals
consists of being more effective than competitors in integrating marketing activities
toward determining and satisfying the needs and wants of target market.
Professor Theodore of Harvard drew a perceptive contrast between the selling
and marketing concepts.
Selling focuses on the needs of the seller; marketing needs of the buyer.
Selling is preoccupied with the sellers needs to convert his product into cash,
marketing with the idea of satisfying the needs of the customer by means of the
products and the whole cluster of things associated with creating, delivering and
finally consuming it.
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CHAPTER TWO
Customer needs:
Marketing is about meeting needs profitably, understanding customer needs
and wants is not always a simple task. Some customers have needs of which they
were not fully conscious. Or they cannot articulate these needs. Or they use words that
require some interpretation. What does it mean when the customer asks for an
inexpensive car, a powerful lawn mower, a fast lathe, an attractive bathing
suit, or a restful hotel?
Profitability of the product:
Profit is essential for the survival as well as growth of business. It is also
needed to earn prestige to innovate and introduce new ideas and techniques to asses a
managers performance and development to provide better condition conditions of
work for the workers and so on. According to Drucker (YEAR), The problem of any
business is not maximization of profits but the achievement of sufficient profit to
cover the risks of economic activity and thus to avoid loss.
According to Urwick (1998), Profit earning cannot be the objective of a
business any more than eating is the objective of living. The first love of good
management should be to efficiently utilize and conserve corporate resources to
produce economic wealth and bring about economic welfare. (Sharma, Basotia,
2001)
Sales decline: When companies experience falling sales, they panic and look
for answers. For example, newspapers are experiencing declining circulation
as more people to television and cable TV news.
Slow growth: Slow sales growth leads some companies to cast about for new
markets.
Changing buying patterns: Many companies operate in markets characterized

by rapidly changing customer wants. These companies need more marketing
know-how if they are to continue producing value for buyers.
Increasing competition: Complacent companies may suddenly be attacked by

powerful marketing companies and forced to meet the challenge.
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CHAPTER TWO
Increasing marketing expenditures: Companies may find their expenditures

for advertising, sales promotion, marketing research and customer service
getting out of hand. Marketing then decides it is time to undertake a marketing
audit to improve its marketing.
Major factors influencing buying behavior:

Major factors influencing buying behavior are cultural, social, personal and
psychological factors.
Cultural factors:
Cultural factors exert the broadest and deepest influence on consumer
behavior. The roles played by the buyers culture, subculture and social class are
particularly important.
Culture: Culture is the most fundamental determinant of a persons wants and
behavior.
Subculture: Each culture consists of smaller subcultures that provide more
specific identification and socialization for its members. Subcultures include
nationalities, religions, racial groups and geographical regions.
Social class: Social classes are relatively homogeneous and enduring divisions
in a society, which are hierarchically ordered and whose members share
similar values, interests and behavior.
Social factors:
In addition to cultural factors, a consumers behavior is influenced by such
social factors as reference groups, family and roles and statuses.
Reference groups: A persons reference groups consists of all the groups that
have a direct (face-to-face) or indirect influence on the persons attitudes or
behavior. Groups having a direct influence on a person are called membership
groups.
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CHAPTER TWO
Family: The family is the most important consumer-buying organization in

society, and it has been researched extensively. Family members constitute the
most influential primary reference group
Roles and statuses: A person participates in many groups throughout life
family, clubs, and organizations. The persons position in each group can be
defined in terms of roles and status. A role consists of the activities that a
person is expected to perform.
Personal factors:
A buyer decisions are also influenced by personal characteristics. These
include the buyers age and stage in the life cycle, occupation, economic
circumstances, lifestyle, and personality and self-concept.
Age and stage in the life cycle: People buy different goods and services over
their lifetime. They eat baby food in the early years, most foods in the growing
and mature years and special diets in the later years. Peoples taste in clothes,
furniture and recreation is also age related.
Occupation: A persons occupation also influences his or her consumption
pattern.
Economic circumstances: Product choice is greatly affected by ones
economic circumstances. Peoples economic circumstances consist of their
spendable income (its level, stability and time pattern), saving and assets
(including percentage that is liquid), debts, borrowing power, and attitude
toward spending versus saving.
Life style: A person lifestyle is the persons pattern of living in the word as
expressed in the persons activities, interests, and opinions. Lifestyle portrays
the whole person interacting with his or her environment.
Personality and self-concept: By personality, we mean a persons
distinguishing psychological characteristics that lead to relatively consistent
and enduring responses to his or her environment. Personality is usually
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CHAPTER TWO
described in terms of such traits as self- confidence, dominance, autonomy,

deference, sociability, defensiveness and adaptability.
Psychological factors:
A persons buying choices are influenced by four major psychological factors
motivation, perception, learning and beliefs and attitudes.
Motivation: A person has many needs at any given time. Some needs are
biogenetic; they arise from psychological states of tension such as hunger,
thirst, discomfort. Other needs are psychogenic; they arise from psychological
states of tension such as the need for recognition, esteem or belonging.
Perception: Perception is the process by which an individual selects,
organizes and interprets information inputs to create a meaningful picture of
the world.
Perception depends not only on the physical stimuli but also on the stimulis
relation to the surrounding field and on conditions within the individual.
Learning: When people act, they learn.
Learning involves changes in an individuals behavior arising from
experiences. Most human behavior is learned. Learning theorists believe that
learning is produced through the interplay of drives, stimuli, cues, responses
and reinforcement.
Beliefs and attitudes: A belief is a descriptive thought that a person holds
about something.
Problem recognition of market:
The buying process begins when someone in the company recognizes a
problem or need that can be met by acquiring a good or a service. Problem
recognition can occur as a result of internal or external stimuli. Internally, the most
common events leading to problem recognition are the following:
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CHAPTER TWO
The company decides to develop a new product and needs new equipment and
materials to produce this product.
A machine breaks down and requires replacement or new parts.
Purchased material turns out to be unsatisfactory and the company searches

for another supplier.
A purchasing manager senses an opportunity to obtain lower prices or better
quality (Kotler, 1998)

Marketing support to Handloom Industry: The Association of corporation and Apex Society of Handloom (ACASH) is
the National Level Apex organization of the National Level and State Level
Handloom Corporation and Apex Societies. It is a nodal agency for the supply of
handloom goods to be purchased by the Central Government Department/ Agencies
/Public Sector undertakings under single tender system. ACASH organizes National
Handloom Expo to promote the sales of handloom products in domestic market.
The National Centre for Textile Designs (NCTD) is actively involving to
face the challenges of rapidly changing market demands by promoting traditional,
contemporary and innovative designs for the handloom products. Various exhibitions
are held under the name of Tantavi, 1) Structural fabrics 2) Patterned fabrics 3)
Colored structure and patterned fabric which brought direct and interaction between
the Government and the Private sector involved in Handloom production.
The All India Handloom Fabrics marketing co-operative society Ltd, New
Delhi provide marketing services to the handloom by conducting sales, both in
domestic and export market. The society has set up 24 retail outlets popularly known
as Handloom House. The society has also set up Export House at Noida, Salem and
Chennai and showrooms at Singapore and Mauritius.
National and Handicrafts and Handloom museum at Pragati Maidan, New
Delhi, provides marketing platform for the weavers to market their products without
middle man craft melas like shilpagram-Udaipur, Taj Mahotshave-Agra, Shilparama-
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CHAPTER TWO
Hyderabad, Surajkund-Faridabad, Delhi heritage mela-Delhi, Patiala craft mela

(Patiala) are organized to promote marketing of handloom products.
The Handloom Export Promotion Council (HEPC) provides wide range of
services to the exporters to promote the International Market for the Handloom
products. The council disseminates information to Handloom exporters about
consumer preference, competing, products and requirement of different countries to
enable them to compete effectively overseas market.
Importance of skill up gradation in Handloom Industry to face the challenges: During 2003-04, the total production of handloom products was about 5,493
million sq. meter. In 2004-05 it was about 5,722 million sq.mtrs in 2005-06 it was
about 6,188 million sq.mtrs at this rate, if is plotted, the figure would be
approximately 12,000 to 15,000 million sq.mtr. in 2010.But it is important to point
out here that as mentioned first, handlooms are not mean for higher production. It was
to be used for producing intricate value added fabrics, which makes the total cost of
the Handloom products to be higher even though the production is less. To quote an
example: Handloom, if is used to weave an ordinary plain towel, can produce 8 to 10
meters per day (5 to 6 towels). The weaving charge paid to the handloom weaver per
meter is Rs.10/- and therefore the weaver could earn Rs. 80/- on am average per day.
If the selling cost of the towel is Rs.30/- then the total cost of the towel produced in a
day is Rs. 180/-.
But the same plain towel can be very easily produced in power loom and can
produce nearly 24 meters (16 towels) per day. The weaving charges paid to the
power-loom weaver is Rs.3/-per meter. If the selling cost of the towel is Rs.20/-the
total cost of the towel produced in a day is Rs.320/Therefore, the handloom industry should not go for producing cheap fabrics
which can easily produced by power loom. It should produce intricate, exclusive
varieties which are impossible for the power loom to produce. By this, even if the
average production of the handloom is less, the average earning of the weaver and the
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CHAPTER TWO
average cost of the products can be made equal or even more than the power loom
products by producing only exclusive products.
In fact, do the handlooms are threatened by the competition of power loom,
now-a-days power looms are threatened by the competition of Modern, Shuttle less
looms. Power looms are the modernized and mechanized Handlooms. Again, shuttle
less looms are the modernized and mechanized power looms. It is also presumed by
the experts, that in future there might be only two kinds of looms, one is pure
traditional, simple, low cost handlooms where in every pick is slowly woven to
produce intricate, limited quantity but costly Handicrafts Handloom textiles. The
other one is very modern, sophisticated, high speed, high cost shuttle less looms to
produce very simple, cheap, huge quantity of Textiles fabrics. Hence there is
absolutely no threat to Handloom at any time.
To produce very intricate fabrics handlooms weaver must have traditional
practice. He must be an Artisan himself and able to operate intricate shedding
mechanisms like multi treadle, dobby, Jacquard either individually or combined.
Unfortunately, in the present change over period, many traditional weavers left the
profession due to lack of confidence and its level best to retain the weavers to
continue to be in the handloom profession and also encourage younger generation to
take up the weaving as their profession. For this, intensive training is very much
essential.
Motivating the traditional weavers and the young generation who are new to
the weaving profession is the foremost aim of the weavers Service centre. Taking
them slowly/steps by steps to weave from simple varieties to complicate dobby and
Jacquard varieties are the goal to be achieved. Skill up gradation training is one of
the ongoing activities of Weavers Service Centre, for the last 10 years through various
schemes, provided to the weavers co-operatives societies and NGOs. The recent
Integrated Handloom Cluster Development Scheme focuses on the following
activities which are very much in need to strengthen the Handloom Industry.
Trust building
Capacity building
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CHAPTER TWO
Vision building
Networking
Consortium forming
Collective bargaining
Job quality improvement
Association building
Business Development Services (Vyas, 2007)
Considering the problems of marketing faced by the entrepreneurs the
investigator found out that many researchers studied on topics related on marketing of
the entrepreneurs in different areas.
Pisik and Betsey (1996) Catherine Swift, (1990) revealed that marketing of
both raw materials and of finished products were the biggest hurdles; they were
forced to be at the mercy of middlemen to avoid running around. The most glaring
constraint found by the committee set up by the government was inadequate
marketing arrangement.
The role of women entrepreneurship through Handloom Industry in India:
The handloom sector is only the manufacturing sector wherein one finds large
number of women producing products which are worn by large number of women.
Womens producing for women is a unique feature of the handloom sector.
Despite such features, which are outwardly unique, women weavers were
never given the primacy they require. Their role in production was never
acknowledged beyond the confines of the home. Their work most often went unpaid.
Governments never recognised formally as a target group. Even the private initiatives
of NGOs, or fashion boutiques, tend to ignore their contribution and role. The most
radical to rightist political mobilization structures in handloom sector are devoid of
any issues and participation of women. Women participation in political mobilization
is completely nil.
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Women constitute a major workforce in the handloom sector. Also, most of

the handloom products are meant for women. Thus, handloom sector is the unique
sector, wherein 60 percent of the women produce almost 70 percent of women
products. However, their working, living and wage conditions need to be improved.
They need to be empowered in various ways. Almost all the government schemes,
projects and programmes on handloom sector have been and continue to bypass this
major workforce through various means. They do not have identity cards, which are
the principal means through which government welfare measures are sought to be
implemented. There is no scheme, or project, or programme which addresses their
needs.
2.6 Geographical Area, Population, Climatic condition and Natural Resources of
Manipur:
Manipur is one of the Border State in the northeastern part of the country
having an international boundary of about 352 kms. long stretch of land with
Myanmar in the east. It is bounded by Nagaland in the north, Assam in the west and
Mizoram in the south. It has a total area of 22327 sq kms. It lies between latitude
23.8degree N to 25.7degree N and longitude 93.5 degree E to 94.8 degree E.
Geographically, the state of Manipur could be divided into two regions, viz.
hill and valley. The valley lies the central part of the state and hills surround the
valley. The average elevation of the valley is about 790 m above the mean sea level
and that of the hills is between 1500 m and 1800 m. Hill region comprises of five
districts namely Senapati, Tamenglong, Churachandpur, Chandel and Ukhrul and
Valley region consists of four districts, viz, Imphal East, Imphal West, Thoubal and
Bishnupur. Hill districts have about 90 percent (20089 sq km) of the total area of the
State and the valley covers only about one tenth (2238 sq km) of the total area of the
state.
The population of valley districts accounts for about 59 percent as compared
to about 41 percent of the hill districts. Density of population varies from 415 to 847
among valley districts and 25 to 116 in the hill districts as against 107 for the state.
Thus, the valley districts are densely populated while districts are sparsely populated.
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The literacy rate of the State, which was 62.13percent as against All India
average of 52.21percent as per 1991 census, went up to 70.50percent in the State as
compared to All India Average of 64.80percent in 2001. The male and female literacy
rate in the state is 80.3percent and 60.5 percent respectively as against 75.3 percent
and 53.7 percent in the All India Average.
Manipur attained statehood in the year 1972. It is one of the States which was
created on historical consideration and not on administrative and financial viability. It
has no big industries or big projects to create employment opportunities for the
increasing work force.
The process of urbanization in the Imphal city is going very fast. As a result of
migration from other part of the state and urbanization, there is an ever increasing
tremendous pressure on basic civic services which results in a mismatch between
demand of civic services and that of the availability of the same.
The state enjoys a pleasant sub tropical monsoon climate. The average
temperature ranges from 3 degree centigrade to 20 degree centigrade. An increase in
altitude makes the temperature lower. The valley areas are warmer than hilly area.
The State receives rainfall of 1467 mm on an average. The Tamenglong district
receives the maximum amount of rainfall. A meager amount of rain is received in
winter and it is quite good for growing vegetables.
Though resources, the State have no adequate mineral resources, yet it is rich
in natural vegetation. The total land area under forest in Manipur constitutes about
68percent of the total geographical area. Forest products like fuel wood, bamboo,
cane, turpentine oil, agar, dalchini, are available in good quantity. Many medicinal
plants and orchids are also available from the forests. It is thus blessed with amazing
varieties of fauna and flora. There are also some reserves of limestone, bog-iron,
ignite, chromite, nickel, clay and salt, etc. Nickel deposits have also been located in
some part of the State. Reserves of petroleum and natural gas and also high potential
of water power development are reportedly available in the State. (Directorate of
planning department, 2007)
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State of economy of Manipur:

Agriculture continues to be the backbone of the economy. Of the total
population of 22.94 lakhs as per 2001 census, 41.19 percent of the population is
economically employable as against 42.18 percent in 1991 showing a slight decrease
and reducing dependence on the primary sector.
A look into industrial classification of workers reveals that according to 2001
Census, of the total man-workers of 659364 nos. 49.69 percent are cultivators and
agricultural labourers as against 70.21 percent in 1991. 2.17 percent of the workers
were found engaged in house-hold industries in 2001 as against 7.09 percent in 1991
and 23.18 percent are other workers as against 23.81 percent in 1991.
The backwardness of the economy is further evident from the fact that there
has been virtually no diversion from agriculture to other activities such as plantation
and forestry for which there is tremendous scope in this state. Even after 56 years of
independence, agriculture continues to depend on monsoon and the State continues to
be the net importer of food grains.
The per capita income of Manipur at 1993-94 prices is projected at Rs.9833 in
2003-04 compared to Rs.13332 in 2003-04, registering an annual growth rate 4.69
percent. According to the present series, the per capita income of Manipur at current
prices is projected at Rs. 16800 in 2003-04 compared to Rs. 14391 in 2001-02 and Rs.
6693 in 1993-94. The annual growth rates for 1993-94 to 2003-04 are recorded at
14.65 percent.
Manipur has a weak infrastructure base and is one of the most backward states
in the country. As per the index of Relative Development of Infrastructure/report
prepared by different agencies such as the Centre for Monitoring of Indian Economy,
the Planning Commission as well as Eleven Finance Commission, Manipur occupies a
low place in the list. The level of development in infrastructure such as roads, power
and irrigation lags behind other states of the economy.
The state has a very high rate of unemployment, particularly among the
educated youths. The number of person on the live registers in Employment
Exchanges which was of the order of 2.28 lakhs as on 30.6.1993 increased to 5.58
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lakhs as on 30.6.2006, showing an increase trend. The maximum level of

unemployment is in the age group of 30-40 years and that too among the highly
qualified/ professionally qualified youths. The problem of educated unemployed
remains acute with ugly manifestations. As a result of this, the State has been
experiencing a reverse strain on the socio-economic development programmes due to
unrest among the youth for quite some time. In the present situation there is little
scope for generation of employment opportunities in the Government sector.
(Directorate of planning department, 2007)
Special Employment Generation Programme:
Considering the grave situation of unemployment problem among the
educated youths complicated further by militancy in the state, the state Government
has started the implementation of the Special Employment Generation Programme in
Manipur (SEGP) for giving employment opportunities to educated and uneducated
employed youths during Annual Plan 2004-05. This is a three year programme with a
provision of Rs. 30 crore for 2004-05, Rs. 70 crores for 2005-06 and Rs.50 crores for
2006-07. The scheme is a loan scheme given at low rates of interest through Manipur
State Cooperative Bank (MSCB). The scheme implemented are based on agriculture,
Horticulture, Fisheries, Veterinary, Sericulture, Health, transport, trading/ business,
etc. This is one of the six agreed projects by the Planning Commission under
Reconstruction Plan. For generation of employment for the educated unemployed
youths of Manipur, a sum of Rs.150 crores has been disbursed as loans at low rates of
interest through the Manipur state Cooperative Bank (MSCB), Imphal.
For 2005-06, 6546 beneficiaries have been selected with a financial
involvement of about Rs. 70 crores. Loan/ assets have also been distributed to the
beneficiaries. A target of 5000 beneficiaries has been set for the year 2006-07 against
the total funds of Rs. 50 crores to be made available by the planning commission. The
process for the selection of beneficiaries has already been completed by the District
Level Committee and forwarded list of eligible candidates to the Manipur State
Cooperative Bank (MSCB) (Directorate of planning department, 2007)
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2.7 Background of Manipur handloom:

The handloom industry of Manipur has distinguished from other places
because it was exclusively in the hands of women and the tradition and skills were
handed down from mother to daughter and on to the generation beyond. Manipur has
been a famous place in the world for its natural beauty, culture with fascinated dances
for colourful handloom clothes. The growth of handloom industries in the State had
adversely affected the traditional craft of the city which enjoyed a place of pride in the
States traditional textile and rendered thousands of women jobless. It has also
survived in Manipur due to traditional, religious and cultural values, community and
the dress habits of its people. (Tombi, Singh 1972)
Handloom weavers of the state are known for their skill for a long time. From
the stories of the bygone eras too we can come to know of this special enterprise
especially pertaining to the women of the land. For instance the princess of Moirang,
Thoibi, was an expert weaver and this art is as much a part of our folklore as much as
it is a part of our daily need even today. Weaving has been a process of informal
education or training and even though some women or girls may not be formally
educated they were trained in this art or vocation. It did not require any special
equipment or infrastructure but only the precincts of the house would do for learning
or practicing this vocation with very common and readily available raw
materials.(kanglaonline.com/index.php) Earlier in Manipur, it would be difficult for
a girl to get married if she does not have the skill of weaving. (Kaldate, 1984)It has
been almost a compulsory vocation for the young women and even when any young
girl was married off the equipment required for weaving was normally given as
dowry. This was irrespective of social status or the economic condition of the family.
It may be mentioned here that much before Mahatma Gandhi spread the movement
for using the charkha as a means to make the nation self reliant, the practice of
weaving in every house was already prevalent in Manipur and was very popular with
the young womenfolk. If Mahatma Gandhi had even once had a chance to visit the
state during his swadesi movement Manipur could well have become the centre of his
ideal state. Handloom has been one of the basic foundations of the states economy
and the money from weaving has been a supplement for the familys income. The
women have thus played a major role in keeping the economy of the state running
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CHAPTER TWO
( http://www.kanglaonline.com/index.php?template=headline&newsid=1145&typeid
=0&Idoc_Session=a893c9d955d1f708321830a453021cbf)
History of weaving in Manipur:
Weaving in Manipur was started with an emotional attachment since women
and girls wove only for their near and dear ones and in each of their products, they
tried to express something of personal emotion and communicate warm feelings
through the fabrics that were intended to be worn.
Weaving was always done with a feeling to please the users and every product
was, not only an article of utility to protect the body but also a memento and a
medium of feelings between the relatives, friend or lovers. (Sanajaoba 1991) Women
expressed their styles mainly in the weaving. Therefore by such reasons in almost all
Manipuris household, there were at least one or two looms i.e. Loin loom. The
mother acted as the master-craftsman in the family. It was her duty to make her
children learn their respective work. By that time ancient periods women used only
the simple machines such as Charkha, Kaptreng, Whidru (a bow shape), Langhan,
Tauot and Loin-looms, etc. Cotton was used as raw material. It was grown and
harvested by the males and spinning and weaving were done by the females.
(Ibungohal, 1963)
Later on in1921, fly shuttle loom was introduced in Manipur by Hairen Keifa
Singh Selungba, an expert craftsman of Yaiskul Hiroohanba Leikai, Imphal. (Roy,
1979)
In 1930, the President of Manipur State Darbar permitted to open a weaving
institute of Arts and Crafts for improvement in the handloom industry of Manipur.
This institute taught throw-shuttle weaving to the interested girls. In 1939, main items
like bed-sheet cover, cushion cover, tray and coy, breakfast table napkin, dressing
gown, dinner table-mat etc were produced and exported not only to Indian states but
also to Europe, Australia and Africa and these were purchased and liked very much.
By establishing Manipur Home Industry in 1936, attempts were made to export
these clothes outside Manipur and India.
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In the nineteenth century, the Meiteis who had settled in many places of
Myanmar and Bangladesh were properly known for their skills in weaving of silk
clothes and production of silk.(Mutua, 1997) Therefore, the 19th century Manipur
was regarded as the golden age in the field of handloom industry. This was so
because of the increasing domestic demand and supply of textiles. During that period,
every house became a production centre of handloom goods and bulk of the product
was marketed for self consumption purposes. After the bombing incident at Imphal
during the Second World War in 1942, the weaving centre known as Arts & Crafts
was closed forever
Women entrepreneurs in Manipur:
Growth of entrepreneurship in Manipur is lacking considerably, not to speak
about women but also men. A few have come up recently but bulk of them as traders
or suppliers, supplying goods mostly to Government offices or Government
sponsored projects thus may be deemed as protected trading. What is more alarming
being these protected entrepreneurs are actually pseudo entrepreneurs, either are close
relatives of powerful politicians or officials and in many cases they only make paper
transactions than actually doing the business, or they are only representatives of
business house from outside Manipur and are projected as entrepreneurs to get the
orders as son or daughter of the soil.
Manipur is an industrially backward state. Manipur has practically no large
scale industry which can produce a commodity in a large scale. The few small scale
industries that are functioning are also not functioning optimally due to lack of
availability of resources and the appropriate environment. Growth of entrepreneurship
in Manipur is lacking considerably not to speak about women but also men. It is not
that people of Manipur lack in entrepreneurial skill. Particularly women of Manipur
traditionally used to manufactured and sell their products and had intimate knowledge
of trading operations. But they could not grow since they are not organized lot and
they have not grown beyond their tradition to adjust with the order of the day.
Since they are already aware of various aspects of entrepreneurship, the
women of Manipur are capable of creating new era. Only two aspects have to be taken
care. The first being the women should know that they are already has adequate
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knowledge of entrepreneurial skill. In other words an element of self confidence has

to be inducted. Secondly they should be given proper input of various modern skills
both technical as well as managerial so that they can compete in modern world. The
second factor has to be an ongoing process that is to say they should be given training
periodically as and when needed, obviously according to market demand. If proper
inputs be provided, women entrepreneurs shall be in a position to produce most of the
products that market needs, in some case they may be produced utilizing local raw
material, in some case bringing raw materials from outside while in some other it may
be partly local and partly imported.
The above aspect can be taken care only if the entrepreneurs can organize
themselves as a group of entrepreneurs forming a federation or association of
entrepreneurs. In fact even large sector also have such organizations like chambers of
commerce etc, who safe guard various interests. In fact smaller sectors need much
more inputs from such federations or associations than the larger sectors. Such
federations should be organized properly to provide or arrange backward and forward
linkages, training inputs (both technical as well as managerial) and take up the cases
of entrepreneurs at appropriate forum. By creating raw material banks, the materials
can be purchased in bulk, thereby at a cheaper rate than if entrepreneurs would have
bought in smaller quantities. Federation can also make suitable tie up arrangements
for marketing the products and if advertisement be made jointly cost of advertisement
per entrepreneurs shall be much less with almost same effect. (Ghosh, Ghosh (1997)
Industrialization and entrepreneurship are inseparable factors and the crucial
role of the entrepreneurs needs to be highlighted in any study relating to industrial and
economic development. The individual as an entrepreneur is a crucial factor in
economic development and an integral part of socio-economic transformation.
Because it can generate large scale employment with relatively low capital
investment; promote more balance regional development; equitable distribution of
income; make use of untapped capital, natural and human resources; and finally it also
urge to take risk in the face of uncertainties and intuition. Despite massive
development efforts taken by both central and state governments through various
schemes and programmes, the pace of economic and industrial development of the
state is very poor. As a result the number of educated unemployed youth of the state
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has crossed 4, 60,143 as in January 2005 of which 1, 18,121 were female unemployed
youth.
This growing unemployment problem can be solved only when the educated
youth of the state are trained and involved in entrepreneurship oriented vocations.
Because entrepreneurship is a purposeful activity through which it helps in initiating,
promoting and maintaining various range of economic activities for the production
and distribution of wealth.
Thus, entrepreneurship development usually implies development of small
scale industries and it has a significant role in the economic development indirectly
and directly solving the alarming growth of unemployed educated youth of the
backward state like Manipur in particular and North-Eastern Region in general.
In Manipur many women start their own business and try to improve their
socio-economic condition in the family. The investigator found out that many
researchers did their study on women entrepreneurs and their financial problems.
Chanambam (2006), carried out a study titled women entrepreneurship in
North Eastern Region of India, Problems and Prospects revealed the problems faced
by the women entrepreneurs from Manipur, Nagaland and Tripura. 60 percent of
women entrepreneurs from Manipur faced the problems of scarcity of raw materials
followed by Tripura with 34 percent and Nagaland 25 percent, so also 50percent of
women entrepreneurs in Manipur, 64 percent in Nagaland and 48percent in Tripura
faced transportation problems.
From among the different motivating factors, the analysis of the data reveals
that 90 percent of them in Manipur, 74 percent in Nagaland and 76 percent in Tripura
have cited economic needs or pressure for starting their enterprise. The analysis of the
primary data has reveal that the monthly income of the enterprise is Rs.9833.00 in
Manipur, Rs. 9476.00 in Nagaland and Rs. 6086 in Tripura.
Thokchom, (2002) explained in her study titled A study on women
entrepreneurs and labourers in Weaving, Knitting and Embroidery units of Imphal
Districts that most of the Manipuri women entered in the field of weaving, knitting
and embroidery not only from the point of traditional occupation but also as income
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generating activities. Maximum of 56 percent, 52 percent and 46 percent of the

entrepreneurs of weaving, knitting and embroidery units belonged to the high income
group. 40percent to 46 percent of weaving and knitting units invested Rs.10, 000/- to
Rs. 20,000/- initially and 26 percent of embroidery units invested above Rs. 30,000/-.
22percent to 34 percent of the entrepreneurs engaged in weaving, knitting and
embroidery units because of unemployment and urge to supplement the family
income. 22percent to 27 percent of weaving and embroidery units and 19 percent of
knitting units have received financial help from co-operative banks, 22 percent of
weaving units were receiving financial assistance from the department of Industry.
Problems of the Entrepreneurs at Present in the State:
1.
Socio-environment problem: Prevailing social unrest in the state, numerous

bandhs and blockades called by various organizations on the National
Highway hampers the efforts of the entrepreneurs in procuring enough raw
materials from outside the state. The problem is accumulated due to lack of
railway services in the state.
2.
Electric-Power shortage: It is a real headache to the entrepreneurs and it often

interrupts the smooth functioning of industries.
3.
Marketing problem; Different forms of marketing problems are faced by SSIs

of the state. Some industries are yet to obtain ISI-mark for their product from
the Bureau of Indian Standard and it become a big burden to the entrepreneurs
to compete with the products having such symbol in the market. Sometime,
due to no export market of some products of homogeneous type produced by
various SSIs, they face too much competition among them in the local market.
4.
Capital constraints: It is a common problem of most of the entrepreneurs in the

state. A more liberal release of fund by various agencies including commercial
banks is pertinent to improve the situation.
5.
Technological adaptation: Incapability of adapting new techniques of

production makes the entrepreneurs of the state unable to increase production
level of their products with up-to-date quality and feature.
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6.
Lack of Infrastructure: Due to lack of infrastructures like cold-storage,

warehouse, some SSIs whose production based on seasonal raw materials like
fruits, agro-products etc., could not function for many months in a year, as raw
materials are exhausted within a short period.( Prassain, 2006)
In Manipur, many researchers carried out studies related to the problems faced
by the women handloom entrepreneurs and tried to find the ways of reducing their
problems in managing their enterprise.
Ibemhal, (1987), carried out in her study Development of Handloom
Industry in Thoubal district during the plan period that the women from Thoubal
district faced the problem of marketing, procuring finance from the bank, pricing of
the their products and lack of skill and entrepreneurial ability to managed the
enterprise. One of the major problems was that most of the weavers were illiterate and
lack of knowledge of innovative new designs, quality of the products and stick to the
old tradition that why weavers did not earned more income compared to their labour
work.
Khomdram,(1991) explained in her study Development of handloom
industry in Manipur during the plan period that the women weavers of Manipur
Handloom industry faced the problems during the plan period as proper organization,
non-availability of raw materials, skill and entrepreneurial ability, marketing facility,
lack of coordination and unequal competition with the mill industry.
Importance of Handloom Weaving to States economy of Manipur:
Manipur is situated in the North Eastern corner of the Indian union and
enriched by hill ranges accounting for more than 90 percent of the total geographical
area of the state. The entire state of Manipur has been declared as industrially
backward. The living standard of the people of Manipur in both rural and urban areas
is quite low. Due to nonavailability of infrastructural facilities, vast mineral and forest
resources of the state are unutilized. The economy of the state of Manipur is largely
based on production in the agriculture and forest sector. Next to agriculture, weaving
as one of the household industries occupies the most prominent place in the economy
of Manipur in term of employment generation. At present about 5.00.000 people or 28
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percent of the total population of the state are employed full time and part time on
about 3, 50,000 looms. It provides the largest scope for earning to womenfolk. About
80 percent of the women in the state are engaged in producing handloom cloth.
Weaving is a part of their culture, a way of life with them and the absence of this skill
in a Manipuri woman is considered unbecoming. (Laiba, 1988.)
Manipur women are taking a very prominent role in the economic
development of the state. And most of their handloom products fetch good price-tag
in the international market and they are well-known for their handloom designs.
Manipur has an ancient and splendid heritage of handlooms and handicrafts.
Handloom weaving is the oldest and most important cottage industry in
Manipur. Every girl knows how to weave and is given a loom as part of her dowry.
Handloom weaving and spinning has been weaving in Manipur since remote past.
Chronicles revealed that Loin-loom weaving was practiced in Manipur before the
birth of Christ. It is said that the Goddess Panthoibi once saw a spider producing
fine threads and making its net (cob-web). Taking clue from that she started
producing fine threads from cotton. Lord Pakhangba invented spinning charkha and
since then spinning and weaving came into existence. Laisana wife of God pakhangba
and incarnation of Goddess Panthoibi produced Lamthang khutthat and others.
Records shows that as far back as 87 A.D. throwing shuttle loom was started in the
valley of Manipur. There are so accountable designs which are famous such as
Ningthouphee, Lashingphee, Moirangphee, Leirom, etc. Manipur and her people were
fairly known to the outside world for her variety of dances and fine arts like handloom
weaving etc. The tribal fabrics of Manipur are well known for their elegant and
colourful combination and lasting texture. Production has increased into many folds
with the adoption of newly improved loom and appliances. Due to increase in
demands of the modern world, Manipur handloom has switched over such mode of
production
Processes using new color combination keeping the traditional motifs and
designs intact, Handloom products are exported to many other countries like Japan
and Asian countries. (Singha, 1992)
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Backstrape or Loin loom was an old and most commonly used method of
weaving in early periods of Manipur. Still today, the loin-loom products were
excellent and precious. This is because loin-loom products are long lasting, strong and
can be extremely uniform and fine. Certain items of Manipuri clothes were woven
only on the loin-looms.
For example, Manipuri womens traditional dress i.e. (Phanek), other varieties
of shawl, thick chaddars, bed-sheets and so on, were the best products of loin-loom.
Young girls of the present generation in Manipur were continued to be familiar with
traditional handlooms in spite of their sophisticated outlook. (Tombi, 1972)
Handloom weaving was the traditional cottage industry for the women of
Manipur as a whole and has an outstanding position in India. It was out of all
proportion as compared to its size and population. At the beginning, handloom
weaving was started primarily for the fulfillment of family needs. Later on, when
craftworks developed as profession for certain groups of people, the idea of
commercialization and marketing of the products as a means of economy entered the
field. Along with this change of attitude, the product would become more utilitarian
and started to become stereotyped. But as it was being taken up in every home, it
provided employment and means of earning for every home and it helped
decentralization of economic power and thus fostering the cult of democracy.
(Sanajaoba 1991) It would be regarded that economic development of Manipur has
to be viewed in the light of socio-economic milieu, traditional skills of the people
particularly women and the available resources. Thus, it provided gainful
employment, both full time and part time to increasingly larger sections of
economically poor and dispossessed weavers. It was again concerned with achieving a
balanced socio-economic development of the nation due to the built in mechanism
that encourages to help weavers in seeking an honorable place in the society.
The development of handloom sector would be intensified through Cooperatives and Central or State corporations. Greater emphasis would be placed on
modernization of looms and provisions of technological inputs to preserve the unique
role of handloom sector and to ensure higher incomes higher incomes for weavers. In
the weaving sector, the distinct and unique role of handloom shall be preserved.
(Sivalingam,1985)Thus, the handloom industry occupied a prominent place in the
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States economy chiefly by virtue of its employment potential, production and
exports.
The state Govt. has made full efforts for overall development of handloom
and handicraft industries in the state. For the first time in Manipur, a training
programme was held for the development of woman entrepreneurs in 1980 which was
sponsored by the State Govt. Nowadays, there are many such training programmes
held for the development of women entrepreneurs. (Chanambam, 2006)
Lourembam, (2005) carried out a study on Handloom as a source of
supplementary income for homemakers of middle income families residing in Imphal
city. The researcher found out that the age of the homemakers, owning handloom
industry of Imphal city, lies under the class interval30-40 years and the mean age was
38.16. About the educational status of these homemakers, they are well educated.
Among them 34.66percent were graduate, 32percent were post graduate. The monthly
income of the families lies under the class interval of Rs 7000-8000/- month of which
the average was Rs.7179.5 and out of this amount Rs.3539.5 was contributed by the
homemakers. The average initial investment done by the entrepreneurs (home
makers) to begin the business was Rs2986.16. As most of the families of the middle
income group need to seek ways and means of obtaining additional income, the
percentage of choosing handloom for economic need was high i.e. 63.33percent.
97.3percent homemakers were interested in buying raw materials from the whole sale
market as varieties of yarn like woolen, cotton, silk are available at better price as
compared to that of retailer market i.e.2.66%only. With regard to make all i.e.
100percent were located at Imphal city and so the entrepreneurs need not to go too far
off places to buy raw materials and sell their products. Most of the homemakers faced
the problem of finance as found i.e. nearly 58% homemakers. But still they were
satisfied with their supplementary income i.e. 48.66% since they weaved the design
made on the satin weaves which are in great demand.
Chandam (2005) revealed in her thesis titled Women in informal sector in
Manipur that the handloom sector being a traditional feminine occupation of many
women be they educated or illiterate, got job in the handloom sector, large
employment opportunities can be created for the women of the Manipur. This will
give immense opportunity for raising the socio-economic status of the Manipuri
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women. In addition to the economic role the handloom sector plays an important role
in the social structure of the society. A majority of the middle class weavers owned
items like bicycle, motorbike, radio or tape recorder and cooking gas. Among the type
of weavers the self employed weavers had the highest proportion of respondents who
owned items while master weavers were the least in this matter. In term of the
residential areas half of the respondents lived in rural areas. Those who belong to
rural area predominantly worked as master weaver while weavers in the urban areas
worked as self employed weaver. The master weaver, even though having land but
owing to the residential area lacked proper transportation and adequate marketing
facilities hence they worked for the merchants despite low wages and long working
hours. The self employed weavers faced marketing problems and this has been the
disadvantages of working as self employed weavers. The problems faced by them
were in the form of selling clothes on credit system and lack of adequate sale depots
in the market. The lack of quality control during the process of production also led
them to sell clothes at low price. The marketing system which was done on small
scale credit placed the weavers at a disadvantage.
Present position of handloom in Manipur:
Handloom industry is the largest cottage industry in the State. The State was
ranked the fourth position in terms of the number of looms in the country according to
the Handloom Census, 1987. It has more than 2.7 lakhs looms comprising of fly
shuttle, throw shuttle and loin looms with a weaver population of more than 2.8 lakhs
of which about 1 lakh are full time weavers, according to the handloom census. The
State Government has made full efforts for overall development of handloom industry
in the State. Manipur Handloom and Handicraft Development Corporation and
Manipur Development Society are the two agencies of the State Government taking
concerted efforts for production and marketing of handloom products. Manipur State
Handloom Weavers Co-operative Society is the apex co-operative society taking
pivotal role in the co-operative sector for development of handloom in the State.
There is also, a departmentally run Raw Material Bank in the Commerce & Industries
Department to meet the requirements of various types and qualities of yarns of
weavers at reasonable price. The Mechanized Dye House now run under the
Commerce & Industry Department is also making full efforts to make available
76
CHAPTER TWO
quality dyed yarn for the weavers of the State. Various schemes are also implemented
for
growth
and
development
of
handloom
in
the
State.
(http://mastec.nic.in/handloom.htm)
The handloom industry has been playing a pivotal role in the economy of
Manipur since times immemorial. The traditional skill of handloom weaving is not
only a matter of status symbol for the women-folk in the state, but also is an
indispensable aspect of their socio economic life.
Manipur with a population of 23.88 lakhs has 3.40 lakhs weavers and 2.77
lakh looms producing 86.41 lakh meters of handloom fabrics and consuming 10.06
lakh kg. of yarn per month within the state, as per the provisional report of the
National Handloom Census, 1995-96
The Directorate of Commerce & Industries, Manipur has been taking steps for
improvement of physical infrastructure in the field of weaving by facilitating
maximum numbers of weavers to benefit from different Government of India ongoing
schemes. The state has immensely benefited from the schemes like Project Package
Scheme, Worked scheme Health Package Scheme and more recently Deen, Dayal
Hathkargha Protsahan Yojana (DDHPY). The Manipur Handloom & Handicrafts
Development Corporation Ltd. (MHHDC) is also working at tandem with the
Directorate for the welfare of the individual weavers in the state.
The Deen, Dayal Hathkargha Protsahan Yojana covers all aspects of need of
the weavers Cooperative societies like margin money, purchase of loom and
accessories, purchase of dyeing equipment, design input, training of weavers,
publicity etc. in Manipur, till now 238 societies have benefited under the above
scheme. Many more societies have applied for assistance DDHPY. The margin
money is being used to raise working capital from the banks so that production can be
at a larger scale. Most societies under this scheme have now got their own dyeing
equipment and designing has also seen a marked change. The major impact of the
scheme has been the transformation from the Loin looms and Throw shuttle looms to
the more efficient Fly shuttle looms now being used by the weavers, purchased under
the component of loom/ modification of loom of the scheme.
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CHAPTER TWO
The Directorate also runs raw Material Bank which sells yarn under Mill Gate
Price subsidy scheme and CENVAT. There is Mechanized Dye House to provide a
fillip to the dyeing needs of the weavers. The Directorate has also given special
emphasis for providing marketing linkages by arranging local exhibitions, District
Level Events, facilitating participation in Trade Fair etc. But still there is a long way
to go in the field of marketing the handloom products outside the State in a large way.
There lies the key to the future growth and sustainability of this sector. There is a plan
to revitalize the ailing MHHDC and make it a nodal agency for looking into the
marketing needs of the weaver societies. (Directorate of commerce and Industries,
2005)
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CHAPTER TWO
Market scenario of handloom products in Manipur:
Plate: 1
Plate: 2
Plate: 3
Plate: 4
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CHAPTER TWO
Mode of handloom weavers in Manipur:

Handloom weaving in Manipur is carried on under three different modes.
They are:
1.
Independent weavers
2.
Master weavers
3.
Co-operative weavers
Independent weavers: Under the mode of independent weavers, the weaver
purchased the yarn with her own money, wove the cloth and sold on her own. Her
output was determined by local marketing conditions and she generally led a hand to
mouth life.
Master weavers: Here, the weavers have given yarn to the weavers and also
paid wages on receipt of woven cloth. They provided employment to weavers
whenever the market the market conditions were favorable and weavers were not
permanently linked to them. Consequently, when the market was dull they were left
free to take up other work. The wages paid under this system of weaving were
generally low. The growth of master weaver system was resulted in the springing up
of hired weavers who does not own loom. Master weavers were generally the
entrepreneurs or richer sections of the communities. The poorer sections or the
labourer groups of the weaver were depended to the master weavers for work.
However, the labourer groups of weavers played an important role in the handloom
industry, particularly in evolving new designs and developing the markets. For
example, recently in Manipur, Rani handloom that was one of the leading handloom
industry centres which was located at Wangkhei Lourembam leirak of Imphal East
district has been a successfully come up entrepreneur under the Master weavers mode
of handloom industry.
Co-operative Weavers: In this method, the handloom weavers co-operative
society has given yarns to the weavers for producing clothes as per the given
specification. They paid wages to the weavers and collected the woven clothes again
arranged for sale. The members were entitled to a share in the profits of the society.
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CHAPTER TWO
Besides dividends on the share capital, members got bonus in proportion to their
output of cloth. A portion of the societys profit was set apart towards reserves and
other funds for strengthening the financial position of the society. (Anjaneyulu,
1990)
Type of weavers:
Plate:5 A Cooperative society Weaver worker at work
Plate: 6 A display of private weaver weaving in the loom.

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CHAPTER TWO
Growth of weavers co-operative societies in Manipur:
Handloom weaving is the oldest and the most important cottage industry in
Manipur. Royals records revealed that loin looms have been in use in Manipur before
the birth of Christ. Besides performing as an economic activity by women in Manipur,
it has also been considered a part of culture.
Since time immemorial, the Meiteis have been observing the festival of
Umanglai Haraoba. One of the important rituals of Lai Haraoba is performing the
dance of Pam-yanba. In this ritual dance, the hand movement of the Maibees
(Priestess) accompanied with songs depict cultivation of land and showing of cotton
seeds, plucking of cotton, ginning, carding, then spinning, weaving of clothes, cutting
it and finally dedicating it to Lainingthou (God) and Lairemba (Goddess) for the
prosperity and well-being of the people and the land.
From this very (ritual dance) depiction, it can be realized that from early times
people dedicated their hand-woven clothes before using to Lainingthou (God) and
Leiremma (Goddess). The fact of using various types of clothes has been found from
the hand written Puyas (manuscript), though no date has been mentioned. In
addition, the oral traditions of the meiteis such as legends, folktales, etc. clearly
indicate the various items necessary for weaving of clothes numbering to hundredth
included as dowries of the princesses and daughters of royal families.
In this way, in the Meiteis society, different items of weaving as Khwang
Iyong (loin-loom), Pang Iyong (throw-shuttle loom) etc, were some essential items
of dowry. There was also a reserved room known as Ningol Ka (daughters room) in
the traditional Meiteis House called Meitei Yumjao. The unmarried girls of a
particular locality would assemble in this room and perform the work of spinning till
late nights for bringing out the best product.
This Tradition was known as Sinnnnaipham Kaba (going to work). This was
done on a rotation basis from one house to another house. This practice gradually
discontinued after the end of the 2nd World War. (Mutua, 1997)
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CHAPTER TWO
Growth of Handloom Co-Operative Societies in Manipur:

With the organization of the weavers cooperatives in the state in the year
1951-52, a new era for handloom industry began. The weaving cooperatives were
organized and established with a view to help the weavers particularly in the supply of
raw materials, such as yarn and marketing of the products. The Manipur State
Handloom weavers Co-operative Society was established in the year 1955 as an
Apex Institution to play a pivotal role to procure and supply the required raw
materials and equipments to the weavers and to market finished products of the
societies affiliated to the State Society.
Under the patronage of the All India Handloom Board, from 1952, onwards
various steps like quality control in texture and dyeing, designing etc. were taken by
the Directorate of Industries, Government of Manipur for the development of the most
important cottage industry of the State. Financial assistance in the shape of working
capital, loan and grant for purchase of improved looms and other equipments were
provided along with creation of assets like dyeing and calendaring facilities and staff
subsidy to the handloom co-operative societies. In fact, the handloom weavers cooperative societies have an opportunity to play an important role in the development
of this cottage industry to provide employment to a large number of unemployed and
underemployed persons, specially the womenfolk. (Ningthoukongjam, 2003)
Ningthoukongjam (2003) explained in her study Performance Appraisal of
weavers co-operatives in Manipur (1980-2000) that the overall pictures of
handloom weavers co-operatives is rather discouraging and distressing. A fairly large
number of these co-operatives are lying defunct and simply adorn the records of the
cooperative department. Many of the active societies are also non-viable units as they
have poor membership, meagre sales and inadequate working capital. These
institutions have failed to achieve the degree of self sustaining capacity for growth.
Types of looms:
Types of looms used in Manipur:
1)
Loin loom
2)
Throw shuttle loom

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CHAPTER TWO
3)
Fly shuttle loom
Loin loom:
The ancient loin loom found generally in Manipur, Tripura and some part of
Assam is a typical primitive loom. The dhakbund as of Garo tribes, the breast cloth of
the Tripura girls, phanek belt and the longhand of the Nagas and Vaishnava ladies of
Manipur
and the warp
dance dressed of the Ukhrun Naga girl provide ample
testimony to the large variety of fabrics that can be manufactured on this loom. These
age-old looms are simple in construction and easy of operation. They are cheap too.
They have neither permanent fitures nor heavy frames and so are easily portable. A
part from these the greatest advantages that lies with these looms is the unlimited
scope that they offer for designing. It is also called the Back Strap Loom.
A common loin loom consists of
a)
Front Bar: The front bar is a circular wooden bar put in between two loops
fixed with the wall of the house.
b)
Breast Bar: The warp is fixed between the front and the breast bar. The breast
bar is also circular wooden bar.
c)
Sword: The sword is a flat wood piece and rests in front warp, one end of this
sword is blunt and other end is pointed.
d)
Healt Bar: It is made of bamboo and circular in shape.
e)
Circular Bamboo Bar: This is another circular bamboo bar but little longer
than the former and is placed after the health bar.
f)
Lease rod: After the circular bamboo bar is fixed, the lease rod, which is a
circular wooden rod.
g)
Back strap: This is made either of leather or cloth. There are two loops at the
ends of the back strap, which are attached to the notches of the front warp bar.
Throw Shuttle:
The throw shuttle is a loom in which the shuttle is thrown across the shed by
hand. Though this loom is easy to operate, yet the fly shuttle in most place is replacing
it. The reason is that it is uneconomical and its low quantum of production. The loom
is fitted to four posts fixed on the ground. The shedding is effected by a set of healts
operated by the foot. The beating up of the weft is done by a bamboo reed to a sly
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CHAPTER TWO
The importance parts of the throw shuttle looms are:

a)
Slay and Sley: It is a wooden frame accommodating shuttle box, sley-race

reed and saring forward and backward. In its forward motion the last pick of
weft is beaten up to the fall of the cloth, and in its backward motion, the
shuttle is allowed to pass over the slay race.
b)
Shuttle box: It is a wooden case for shuttle with the spindle and a picker. The
Shuttle box is grooved inside lengthwise to accommodate the picker. The top
of the box is open and shuttle rests in the box for the intermediate period
between two successive picks.
c)
Shuttle and the Spindle: The shuttle is placed as vertical for the weft and
passes through in the passes through in the process of weaving. When the
loom is stationary, the shuttle remains in the shuttle box. The shuttle contains
the prim on which the weft yarn is wound.
d)
Picker: It is a piece of leather placed in grooves inside a shuttle box on which

the spindle is kept. Picker is used to give blow to the shuttle to drive it from
one box to the other.
e)
Reed: The reed is the comb through which the warp passes.
f)
Healt or Headles: Healts are required to form a shed, which contains a series
of twin loops.
g)
Treadle: The treadle is a pedal or levels with which a healt is connected by

means of cards.
h)
Lease rods: The division of warp threads into one, two and two, and so on is
termed as base. The two rods of warp and are known as lease rod.
i)
Warp beam: The roller upon which the warp yarn is wound and fitted on the
bottom at the back of the loom is term as warp beam or weavers beam.
j)
Cloth beam: The roller is fitted in front of the loom, upon which the cloth is
wound while weaving.
Fly Shuttle:
The fly shuttle pit loom is the most popular handloom, in the country except in
Assam. This loom is the most popular and widely disturbed, loom in India. This is an
85
CHAPTER TWO
improved type of loom, which increased three to four times the production of the
weavers. It has all the advantages of throw shuttle, except for weaving intricate extra
weft patterns. The whole loom rests on four vertical posts called Makhong. In this
loom the sley carries a race board and two shuttle boxes, one on either side, with a
picker propelled by means of string. This is the major difference between the fly
shuttle pit loom and the throw shuttle pit loom. From the opposite end of the weavers
starts the warp beam connected to posterior two vertical posts then the warp passes
over to another bar called phira, connected to the upper position of the posterior posts.
Then it moves to the weavers passing through the healts and the comb finally over to
one beam in front of the weavers, called phira called which supports the cloth to be
made.
The main advantages of the fly shuttle pit looms is that despite its increased
rate of production, it can produced fabrics with higher counts of superfine yarn. The
fly shuttle oscillating sley works at a higher speed than the throw shuttle sley,
resulting in an increase in the rate of production. This loom can have on an average 20
to 30 picks per minute.
Semi automatic loom:

The last and the boldest step towards mechanization of the hand loom led to
the invention of semi-automatic loom. Actually its stands between a handloom and
power loom. Some of its characteristics are exactly like fly-shuttle loom, other are
like power loom.
There are mainly three type of semi-automatic loom.
1) Chittaranjan loom
2) Salvation Army loom
3) Hatter Sley loom
86
CHAPTER TWO
Type of Looms popular in Manipur:
Plate: 7 Loin loom
Plate: 8 Fly shuttle Loom
Plate: 9 Throw shuttle Loom

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CHAPTER TWO
As per the National Handloom & Power loom Census conducted during the
year 1996-97, population of looms & weavers in Manipur are given hereunder
Table 2: Number of weavers, looms, consumption of yarns and production of
handloom in Manipur.
Sl. No. District Name No.of
No.of
Consumption of
weaver loom
Production
of
cloth per month

yarn per month
( in Kg.)
(in Metre)
1.
Imphal
91820
68273
5, 01,936.10
44, 26,402.00
2.
Thoubal
37835
26586
1, 60,334.50
19, 33,600.00
3.
Bishnupur
53069
31420
1, 86,294.70
13, 25,974.00
4.
Churachandpur 39294
43847
56,502.10
3, 61,953.60
5.
Ukhrul
24233
22629
23,567.00
1, 98,933.50
6.
Tamenglong
35577
36918
1, 02,953.80
2, 29,434.30
7.
Senapati
44250
35443
12,763.80
92,901.12
8.
Chandel
13554
11639
26,204.70
71,615.00
Total
339632
276755
10, 70,557.00
86, 40,814.00
The art of weaving has developed more in Manipur as compared to any other
part of India. Unlike weaving in other parts of India, the Manipur weaving is entirely
the work of women. Weaving is a part of their domestic duties. In fact, it is a primary
qualification of a Meitei woman. This handloom industry is practically monopolized
by women not only from the idea of economic necessity but also from the sense of
social custom. (www.ignca.nic.in/craft253.htm - 37k)
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CHAPTER TWO
Out of the total weavers 70 percent were working full time in the valley areas
as against 40% in the hill areas. The incidence of low utilization of employment both
in the hill and valley areas is due to lack of proper and efficient marketing
mechanism. If proper marketing arrangement is made, the capacity utilization could
be increased. In fact, if there is full utilization of the available manpower and
equipment in the State, the production would be 115.20 lakh meter of handloom cloth
per month.
The State Handloom & Handicrafts Development Corporation Ltd. with its
emporia at New Delhi, Kolkata and Imphal and the Manipur State Handloom
Weavers Co-Operative Society, an apex body of the weavers co-operative societies in
Manipur were primarily responsible for marketing of handloom and handicrafts
products of the State but all these organisations have not been able to meet the
requirements and there has been a big gap in the marketing sector.
Reason of low production:
Around 40percent of weavers are not working fully during the whole year of
12 months in respect of valley district, where conventional Fly Shuttle Looms and
weavers are concentrated and 70percent of the weavers in case of hill district due to:a)
Fear psychosis, presuming that bulk production would not find market.
b)
Lack of modern and improved techniques of designing.
c)
Lack of awareness of the modern fast changing market scenario.

http://investinmanipur.nic.in/handloom.htm
Main products of Manipur Handloom:

The main handloom products of the state are serees, bed sheets, curtains,
towels, table clothes, fashion garments with intricate designs, cushion covers, pillow
covers, upholstery, draperies, chadder etc. These products have lots of demand from
inside and outside the state.
The most common products of Manipur Handloom are listed below. (Trade
Fair ,2002)
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CHAPTER TWO
1.
Wangkhei Phee: It is fine cloth with beautiful design and the apparel purpose
of women.
2.
Mayek Naiba: It is long stripped thick fabric worn by women in any festivals
and occasions.
3.
Tribal Shawl: It is woven by wool and acrylic yarns used by both male and
female. It is mainly used in winter season.
4.
Sagol Shamu: It is thick fabric of embroidered designs used as bed cover and
apparel purposes.
5.
Lashing Phee: It is thick fabric with long strips or diamond design. Its warp is
cotton yarn and weft is cotton woving.
6.
Rani Phee: It I fine cloth with beautiful design. It is mainly mad of silk and
used for occasions like marriage, feast etc. And is woven by womens only.
7.
Leirum: It is woven by wool and also by cotton. This cloth is given during
marriage as a part of dowry. It is used along with the blanket.
8.
Mompak Phidak (Bed Sheet Cover): It is woven by cotton and wool.

Various designs are made on it and are used. (Trade Fair, 1997)
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CHAPTER TWO
Different designs of woven products:
Plate:10 Design of shawl: (Sagol samu)
Plate:11 Design of chaddar

(Wangkhei phee)
Plate: 12 Design of Chunnies
Plate: 13 Design of wall hanging
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CHAPTER TWO
A SWOT Analysis of Handloom Industry of Manipur:

Strength:
Abundant Resources: As per the 1995-96 handloom census conducted by the
Ministry of Textile (MOT), Manipur had 2.77 lakh looms against a total of 34.86 lakh
or 8 percent of the countrys total. And against a total of 65.5 lakh persons engaged in
handloom weaving and allied activities, 3.40 lakhs were from Manipur which is 5.2
percent of the national total.
Existing market and high patronage: There is a high patronage of Manipur
handloom products not only in the local markets but also in the national domestic
markets. Deliverance of the right products is the key to convert the patronage into
brand equity.
Low Entry Barriers: To quote some unknown writer, nearly all fragmented
industries have low overall entry barriers. Otherwise, they could not be populated by
so many small firms. This aspect can be perceived as an advantage by the aspiring
young entrepreneurs.
Weakness:
Low productivity: The MOT (Ministry of textile) estimates of production of
handloom fabrics in the year 2000-2001 for the state of Manipur was 265.16 million
sq. mtrs against the national total of 7,475 million sq. meters; a meager 3.5percent of
the national total.
Backward technology: All the looms are the traditional fly shuttle, throw shuttle
looms or the loin looms. Traditional and conventional methods of warping, sizing,
finishing are still in use.
Women Predominance: In Manipur, weaving is the prerogative of the women,
thus limiting the labour market. The household chore also acts as an hindrance in
achieving just in time production. Another drawback is in production of fabrics
which require extreme physical endurance.
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CHAPTER TWO
Unorganized: The looms, handloom units are all scattered and fragmented, with
about 92 percent of the looms in the domestic segment.
Outsourcing Dilemma: Most of the registered handloom units are in the cooperative sectors which are mostly commercially non-viable. Due to the non existence
of successful and large business oriented units, outsourcing becomes a big dilemma
thus thwarting the viability of sustaining and fulfilling large purchase orders.
Non Existence of Common Facility Services: Absence of pre weaving and post
weaving facility centers such as the modern dye houses, quality testing centers,
processing units or finishing centers render it impossible for any worthwhile
competitive production.
Non Availability of Good Quality Yarn: Due to various reasons, the quality of
the yarn available in the local markets has been declining and the variants available
have been static and stagnant. Neither the yarn traders nor the weavers have shown
any enthusiasm to experiment with new variants of yarn.
Opportunity:
Vast Home Textile market: There is an enormous opportunity for the handloom
industry of Manipur to enter the vast household textile markets with new innovative
products. The key lies in innovative fusion and transformation of the beautiful and
elegant local motifs and designs into creative home products.
Untapped Markets: Improved quality and variants of home textiles will lead to
higher consumption even by the local markets. The national markets, especially
National level exhibitions are all ready points of sale for improved and innovative
hand woven products.
Transport Subsidy: Under Industrial Policy of Manipur, 1996, there is provision
for Transport subsidy for transportation of raw materials and finished products.
Freight Reimbursement: Ministry of Textiles, Government of India, has made
provision for transport subsidy for yarn purchased through the National Handloom
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CHAPTER TWO
Development Corporation (NHDC) at the rate of 3 percent of the non silk/Jute yarn
value; 1.5percent of silk yarn and 8.5percent of jute / jute blended yarn.
Weavers Service Centre (WSC): The WSC at Takyel, Imphal is one of the 24
WSCs in the country which imparts training and up gradation of skills to weavers.
The Imphal WSC covers the three states of Manipur, Nagaland and Mizoram.
Threats:
The Handlooms Reservation Act may be discontinued: The Handlooms
(Reservation of Articles for Production) Act, 1985 provides for reservation of eleven
items for exclusive production by the handloom sector which includes items such as
Sarees, Moirang phee, phaneks, shawls and other day today use items. But, in the
post MFA (Multi Filere Agreement), the handloom reservation remains at stake.
Increased competition from the Power loom and Mill Sector: There will be
increased price competition from the mills and power loom sector, with these two
sectors taking up urbanization plans to attain global competitiveness. With the
abolition of the Handloom Reservation Act, replication of various handloom products
by the mills cannot be ruled out.
Increasing No. of Idle Looms and Handloom Units: Today, shrinking local
markets, diminishing compensation to the weavers, stagnant product line, outdated
modes of production, non-application of commercial principles, declining quality of
yarn and dyes have brought the handloom sector to the brink of disaster, rendering
this mode of employment unfruitful. The number of idle looms has been on the rise
with people seeking alternative opportunity. ( Prasain, 2006)
Problems faced during weaving by women weavers:
Women weavers have been subject to domestic violence and victims of
violence in many places. They have also been at the receiving end of discrimination
of all types. Whenever handloom sector is in crisis, the burden of carrying through the
crisis is the most on women weavers, through increase in physical, psychological and
social pressures. Their health condition is a major concern, as also their role in
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CHAPTER TWO
relations of production and also the future of girl children. While performing critical
functions in production, their role in decision-making is rather poor.
In the past ten years, with changes brought in by globalization, liberalization
and economic reforms, handloom sector has been facing adverse government policies
and discriminatory competition. As a result, the family economy has been in turmoil.
The resultant burden is the most on the women weavers. In these circumstances, it
became important to address the problems and needs of this vulnerable section of
handloom sector.
There is no recognition to womens work as weavers, even though women
play a major role in all pre-loom operations and take on labor-intensive activities;
women do not have access to government identity cards, except in cases where they
are widowed or are members of the cooperatives.
Women lack direct access to wages since weaving is a household enterprise
and men take the final product to the master weaver for sale. Weavers depend on
master weavers for credit, raw material and market support. Master weavers in
general are people who invest in production, and sell the products even in instances
where women are paid wages for small, piece-meal activities like yarn-winding,
sizing etc, these wages ranged from Rupees 10-15/- per day. Single and older women
suffer more since they cannot take on labor-intensive activities and lack family
support. Literacy levels in general are poor amongst weavers and particularly lower in
girls and women. Adolescent girls are also involved in weaving operations at the
household levels and as paid wage-workers.
Normally, weaving in India is a household, home-based enterprise. Of late,
sheds have increased due to lack of housing and other facilities. The shed is a place
where a series of handlooms are placed for work by wage labour.
Amongst shed workers who weave on looms owned by master weavers, wages
are lower and working conditions are highly unfavorable. Many live and work in
small, congested houses and sheds under highly unhygienic conditions. Women shed
workers are also subjected to sexual harassment in many instances. Most sheds do not
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CHAPTER TWO
have any primary facilities such as bathroom or toilets. Women face problems to take
bath or use toilets. They have to use open spaces, shielded from public gaze.
Dowry for girls, who are married off at a young age is a major problem. Many
do not want to marry male shed workers, who live and work in crowded sheds with
several other families. Health issues amongst women are of major concern many
suffer from back and joint pains, reproductive and respiratory disorders and lack
health awareness and access to government facilities.
Lack of organization amongst weavers is a major problem. Due to poor
functioning of cooperatives, many depend on master weavers. Women to a large
extent have no membership in primary weavers cooperatives. Women weavers are
keener to innovate in new designs and products in response to market needs and
demands,
but
lack
proper
information
about
both.
(http://opensummit.
opendemocracy.net/2007/05/17/women-handloom-workers-facing-the-brunt-of-econo
mic -reforms-in-india/_)
Handloom sector is an important cottage industry in India, and is a very old
profession. Handloom weavers are known for their knowledge, innovation and
brilliance in designs. Weaving is now considered almost an art form considering
development of skills and knowledge. This sector, estimated provides employment for
more than fifteen million people and is second largest rural employment provider next
to agriculture. In Andhra Pradesh, there are more than 3 lakh handlooms weaving
families. In comparison with other traditional rural sectors, handloom weaving is a
full-time family profession, involving all the members of the family.
In Andhra Pradesh, there are about 3, 20,000 handlooms. About 5, 00,000
families are directly while indirectly 20, 00,000 families dependent on them. Major
handloom centers include chirala, Mangalagiri, Pedana, Ponduru, Polavaram,
Pochama palli, Puttapake, Gadwal, Dharamvaram, Emmiganur, Madhavaram and
Narayanpet. Each center has its unique identity of producing varieties of handloom
products.
In the entire country, there are more than 38, 00,000 handlooms. However, in
north-eastern states, there are more than 15, 00,000 domestic handlooms. Handloom
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in North India and South India are geared for commercial production catering to the
needs of domestic and market also exporting their products.
Estimatedly, there are about 12.5 million people dependent on handloom
weaving. Formal education system has not included this important profession in its
fold. As a result, any innovation and changes has been left to the handloom weaving
families. Over years in the recent decades, due to lack of information and fast placed
changes practices in handloom sector became static and apparently became redundant.
Formal research institutions, Universities and other institutions have not included this
sector in their working agenda.
Presently, handloom weavers are facing severe livelihood crisis because of
adverse Government policies, globalisation and changing socio-economic condition.
Textile sector in India is growing and has been undergoing enormous changes within
its structure, which are affecting its characteristics. The profession of handloom
weaving has been one of the main factors of growth in Indian economy, promoting
inter- and intra-relationship between different communities. This sector has been
considered important for the sheer magnitude of people endowed with traditional
artisan, craft skills attuned to the local needs and resources.
Handloom sector was a nationalist activity and identified completely with
Gandhian agenda. Handloom weaving and related activities became symbolic for the
Indian Independence struggle. In earlier planning at the national level, development of
handloom sector was seen as stimulation for rural development considering the usage of
local resources, local craftsmanship and catering primarily to local market. (Vyas,
2007)
Various steps taken by the Government to strengthen the handloom sector: The Ministry of Textile proposes to announce the following five schemes in
X1th Five-year plan (by merging the different existing schemes)
1.
Integrated Handloom Cluster Development Scheme: -
For the first time a cluster approach was introduced in 2005-06 for the
comprehensive and holistic development of selected handloom clusters.
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During 2005-06, 20 clusters area taken up for development.
During 2006-07,100 more clusters were identified for development.
During 2007-08,100-150 additional clusters will be taken up for development.
2.
Mill Gate Price Scheme: -
375 lakh kgs. of yarn was supplied under the Mill gate price scheme during
2006-07, against 220.86 lakh kgs. In 2005-06, registering an increase of 70%
Besides the existing 110 yarn Depots, 273 more yarn Depots were set up in
2006-07 to stabilize price of yarn and enable weavers to access raw material at
reasonable rates.
3.
Handloom weavers welfare scheme: -
A)
Health Insurance scheme: The scheme was launched on November 3, 2005, in place of the earlier Health
Package scheme in collaboration with ICICI Lombard General Insurance Company.

The schemes are:
Enable weavers to access the best health care facilities.
Covers the weaver, his/her spouse and two children.
Covers all pre-existing and new diseases. The annual limit per family is Rs.
15,000/- of which the provision for OPD is Rs. 7,500/-. The annual premium per
weaver is Rs 1,000/-, of which Rs.800/- is contributed by the Government of
India and Rs.200/- by the weaver.
During 2005-06, 2.41 lakh weavers were covered and during 2006-07, 4.57 lakh
weavers (new and renewal cases) were covered under the scheme.
From Nov.2005 to March 2007, 6.98 lakh weavers were covered against 1.90
lakh weavers covered under the old scheme, from 2000-01 to 2004-05.
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B)
Mahatma Gandhi Bankar Bima Yojna: -
The scheme was launched on October 2,2005 in collaboration with the Life
Insurance corporation of India (LIC)
The scheme covers natural as well as accidental death. The sum assured for
natural death is Rs.50, 000, 00 per weaver. And for accidental death, it is Rs. 80,
000, 00 besides other benefits.
The annual premium is Rs.330per weaver of which the Handloom weavers

contribution is Rs.80.00 The balance i.e., Rs 150.00 is borne by the Government
of India and Rs.100.00 by the LIC. Besides, Rs. 300.00 is given per quarter, per
child, to two children for their education, from 1Xth to X11th standards. Six lakh
weavers (both new and renewal cases) were covered under the scheme from
Oct.2005 to March 2007.
2.
Diversified Handloom Development scheme: A comprehensive scheme has been formulated to have integrated approach to
design development and skill up gradation in the handloom sector.

3.
Marketing and Export promotion scheme: -
To provide marketing support to handloom agencies and the individual weavers.

xsTo give impetus to the export of the Handloom fabrics, made-ups and other
Handloom items, the Government introduces a comprehensive marketing and export

promotion scheme. (Vyas, 2007)
Schemes provided to the weavers of Manipur:
The state Government has made full efforts for overall development of
handloom in the state of Manipur. Handloom and Handicraft Development
Corporation and Manipur Development Society are the two agencies of the State
Government taking concerted efforts for production and marketing of handloom
products. Manipur State Handloom Weavers Co-operative Society is the apex Cooperative society taking pivotal role in the Co-operative sector for development of
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handloom in the State. There is also a departmentally run Raw Materials Bank in the
commerce and Industry Department to meet the requirement of various type and
qualities of yarns of weavers at reasonable price. The mechanized Dye House now run
under the Commerce and Industry Department is also making full efforts to make
available quality dyed yarns for the weavers of the state. Various schemes are also
implemented for growth and development of handloom in the state.
A High Power Committee (HPC) was set up to look into the problems and to
suggest measures for the growth of handloom during the ninth five year plan period.
Most of the recommendations of this committee have been accepted by the
Government and the schemes or programmes in the ninth plan are being formulated
on the basis of these recommendation. For the provision of welfare measures
handloom various schemes or project are implemented in the handloom sector.
The following are the some of the common schemes implemented:
1.
Work Shed Cum Housing Schemes: The handloom industry is basically a
cottage industry and handloom weavers prefer to work in their homes. Improvement
of work place is an important infrastructure support of the weavers. An improved
workshed or house cum work shed provides better work environment, more space,
improves working hours because better lighting is available and enables installation of
improved looms. The Government of India in pursuance of the Textile Policy of 1985,
introduced a centrally sponsored scheme called work shed cum-housing scheme for
handloom weavers during the7th five year plan, in recognition of these aspects and
the schemes was also in operation during eight five year plan. A weaver who earns at
least 50percent of his income from handlooms and whose land is in the joint names of
the husband and wife are eligible for these schemes. (Gupta,1999)
2.
Project Package scheme: The Project Package scheme being implemented
since 1992-1993, is one of the major schemes to provide the requisite support to
weavers in an integrated and in coordinated manner. The schemes envisage
formulation and implementation of specific need base project for development by a
particular handloom product or development of a particular area of weavers.
Altogether 2194 weavers were assisted under this scheme involving a sum of
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Rs.92.95 lacs as central share during the year 2001-2002.( P.,I., Singh, RK., J. devi,
Ch., B., Devi,2004)
3.
Health Package Scheme: Under these scheme, financial assistance in the
form of medical reimbursement is provided to weavers for medical treatment of

diseases
like
asthma,
T.B,
inflammation
of
alimentary
system
etc.
eyetesting,spectacles, maternity, sterilization, drinking- water facility and primary

health care with the sole objectives of keeping good health for all weavers. So far,
8315 weavers have been assisted involving Rs.50.95 lacs under the scheme. The
ceiling assistance are Rs.1500/- per weavers were assigned for Asthma, T.B,
inflammation of alimentary system Rs. 190/- eye testing and spectacles, Rs.500/- for
maternity
and
sterilization
and
Rs.3500/-
for
drinking
water.
(http://www.mastec.nic.in/handloom.htm )
4.
Deen Dayal Hathkargha Protsahan Yojana:
The Yojana was newly
introduced scheme for women SC/ST/OBC as a promotional scheme of handloom

sector. It is centrally sponsored scheme which has come into force with effect from
01-04-2000 product development, production support, institutional support, imparting
training programme, providing of infrastructure, marketing support etc, both at macro
and micro level in an integrated and coordinated manner for an overall development
of the handloom sector and the main components of the scheme. Under this scheme, a
central share of Rs.120.28 lacs was sanctioned for the assistance of 2647 weavers
during the year 2001 -2002. .( P.,I., Singh, RK., J. devi, Ch., B., Devi,2004)
5.
Thrift Fund scheme for Handloom Weavers: This scheme was introduced
in the 7th five year plan as one of the social welfare measures from government. The
scheme envisaged creation of a fund in the nature of a provident fund. The fund was
created by contribution from the wages earned by the members and the contribution o
the central and state government. The scheme continued during the 8th and 9th five
year plan with slight modification from time to time. The scheme is still in operation.
The eligibility for this scheme is that, a weaver should be defined as one who earns at
least 50 percent of /her income from weaving. The weaver should be regular member
of a society; weavers affiliated to State Handloom Development Corporation will also
be eligible.
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6.
Group Insurance Scheme for Handloom Weavers: Government of India
introduced a group insurance scheme from the year 1992-93 and continued there after
as a welfare measure for the benefit of the handloom weavers. For all this weavers,
whether male or female covered under the Thrift Fund Scheme will be automatically
covered by the group insurance scheme. Weavers associations whose weavers are
covered under the Thrift Fund Scheme will also be eligible to take up insurance
policies for the weavers under this scheme.
7.
Scheme for Marketing of Handloom Products through Exhibition and
Fair: As part of the marketing strategy and publicity measures, the office of the
development commissioner for handlooms has been organizing National Handloom
Expos and Mini Expos. With the passage of the time, these events gain popularity and
sales generated at these events gain popularity sales generated at these events
continuously increased. Since 1995-96 the office of development commission
(Handlooms) has introduced a scheme of marketing Handloom and Handicrafts
products through established District level Fair Festivals. Craft melas are also being
extensively utilized as an outlet for marketing of handloom products also.
8.
Weavers service Centres and Indian Institutes of Handloom Technology
(WSCS and IIHTS): 24 weavers service centres and four Indian Institutes of
handloom technology play a very vital role in the research and development imparting
training to weavers to upgrade their skill and increase productivity in the handloom
sector. They have also been instrumental in evolving, innumerable new designs and
reviving traditional designs. Most of the state level agencies have landed the role of
Weavers Service Centers and Indian Institutes of Handloom Technology.
(Gupta,1999)
9.
Integrated Handloom Village Development Project (IHVDP): It aims at
providing a comprehensive support in all areas covering all types of facilities in terms
of skilled up gradation, productivity, and infrastructure to give filling to the
motivation level. Construction of common facility center, work shed, and supply of
looms imparting training programme and providing of infrastructure are the main
components of the scheme. During the year2001 -2002, altogether a total of 2,647
weavers were assisted with margin money to the tune of Rs. 68.22 lacs as central
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share and a sum of Rs.2.26 lacs were paid as stipend to 60 weavers for undergoing
training.
10.
Prime Ministers Rozgar Yojana: This scheme has been drawn up to be
operated through the District Industries center for providing self employment
opportunities to educated unemployment youths. The scheme covered all educated
unemployed youth who passed or failed metric standard or ITT passed or having
under gone Government sponsored technical course for a minimum duration of 6
months and within the age groups of 18 to 35 years. Beneficiaries of the PMRY
scheme were selected from the relatively less affluent sections of the society, whose
annual family union does not exceed Rs.24, 000. The scheme was launched on 2 nd
Oct. 1993. During the year 2001-2002, 642 educated unemployed youth were
benefited.
11.
Khadi and Village Industries: The khadi and Village Industries Commission
(KVIC) was established by the Government of India in the year 1957. The khadi and
village industries is not only providing employment to people in rural and semi-urban
areas at low investment per job, but also utilizes local skill resources and provides
part time as well as full time work to rural artisans women and minorities. It was only
in the year 1996 that the State Board for the development of Khadi and Village
Industries was constituted by the government of Manipur. The traditional sectors of
industries fall within the preview of organization such as Khadi and Village Industries
Commission. The KVIC include artisans in tiny industrial units and defines it as any
industry located in a village or town inhabited by population not exceeding 10,000
which produce goods and renders services with or without the use of power in which
the fixed capital per head does not exceed Rs.15,000. In the state, KVIC has given
special attention for economic upliftment scheduled Tribes and women. .( P.,I., Singh,
RK., J. devi, Ch., B., Devi,2004)
Small- Scale Industries:
The small scale industries are the hub of many economic activities in a
developing country like India. The role played by these industries in the economic
activity of advanced industrialized countries is also very significant. The socio-
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economic transformation of India cannot be achieved without paying adequate

attention to the development of this intensive and capital sparing sector.
Small scale industries have been given an important place in the framework of
Indian planning since beginning both for economic and ideological reasons. Today,
India operates the largest and oldest programmes for the development of small scale
industries in any developing country.
The fiscal Commission 1970, for the first time, defined a small scale industries
as soon which is operated mainly with hired labour usually 10 to 50 hands.
The entire N E Region is characterized as industrially backward part of the
country. It has not made much progress in industry sector. Besides Assam, other states
in the region have made little progress with regards to the growth of large and
medium industries. (Prassain 2006)
Manipur has practically no large scale industry which can produce a
commodity in a large scale. The few small scale industries that are functioning are
also not functioning optically due to lack of availability of resources and the
appropriate environment. The share of manufacturing in real Net state Domestic
product (NSDP) declined from 4.16percent in 1980 -81 to 3.37percent in 1995-96.
The growth rate of this sector in the 1990s was insignificant. The share of the tertiary
sector started dominating the economy without any significant relationship in the
commodity producing sectors of the economy. (Prassain, Singh 2007)
Though Manipur has only 12 such industries yet it has made significant
progress in household industries and other small-scale enterprises by March 2000.
The number of household industries is about 98 thousand while 80.5 thousand private
small-scale enterprises are there in the state by March 1998 ; out of which nearly 6.2
thousand are agriculture related enterprises and about 74.3 thousand are non-agri
enterprises.
So far the growth of handloom sector in the region is concerned. Manipur is
depicting a healthy picture. Manipur has made commendable progress in handloom
units both for domestic and commercial purposes. In 1997-98, the number of
handlooms for domestic use was 2.65lakhs while the number of handlooms for
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commercial production was 2.84 lacs. The number of commercial handloom units in
the state was the highest and the units for household use in Manipur was the second
highest i.e., next to Assam. (Prasain 2006)
2.8 Socio-economic status of India:
Economic needs and activities are fundamental in society. Modern men spend
most of their waking hours making a living. What kind of work we do, therefore, and
for whom we work have much to do with our happiness and welfare. The nature of
our working life is determined for us by our economic institutions.
Since economic pursuits are fundamental, it is not surprising that they should
also be pervasive in their effects on social life. The getting and spending of wealth is
the subject of a vast literature which traditionally treated these phenomena as if they
were a close system. Sociology studies the economy solely as a sub-system of the
wider society, stressing the community interrelations of economic behavior.
Since food, clothing, houses and tools are essential, their acquisition and use
influence other phenomena, such as family life and the kind and size of community.
The family was a more important institution for economic production before the
development of trade and manufactured created factories and enlarged villages in
cities. The small nuclear family with which we are familiar in the industrial West is
also associated with hunting culture, whereas the extended family is more common in
agricultural societies. The changes in the various social institutions will be
incompletely understood unless stock is taken of changes in the economic institutions.
(Ogburn, Nimkoff, 1964)
Phule and Waghmare (2009) explained in their study Level of SocialEconomic development in Osmanabad District (M.S.) - A Geographical Analysis
(2000-2001) the pattern of socio-economic development in Osmanabad district,
delineating various socio economic developmental regions, which can from basis
for future improvement and planning- socio-economic studies are interdisciplinary in
approaches, which reveal many correlated aspects of the society and economy of a
region. There are indeed the basic for the habitual of the region. It is therefore,
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necessary to investigate the social and economic changes in a developing region to

make an assessment of the growing prosperity and welfare of the region.
Women development is directly related to national development. The
effective management and development of women resources i.e. abilities, skills and
other potentialities are of paramount importance for the economic development of the
country. According to World Bank Report, improvement in women well being yields
important intergenerational benefits and productivity gain in future. Raising incomes
and opportunities for women lift whole families out of poverty and derive economic
and social progress.
In India, women in general, are relatively powerless with low work
participation rate, little decision making power and very little or no control over
resources. The importance of education in womens development in society is well
known and widely accepted. It develops womens personality, enriches them and adds
to their awareness and self esteem. It generates new and innovative ways of thinking.
Women are entering the Global labour force in record number. In 2003, 1.1
billion of the worlds 2.8 billion workers, or 40 percent were women representing a
world wide increase of nearly 200 million women employment in the past ten years.
However, women still face higher unemployment rates. For young women aged 1524, the difficulties in finding work were even more drastic with 35.8 million young
women involuntarily unemployed worldwide. Not only this, women receive lower
wages than men and represent 60 percent of the worlds 550 million working poor.
After analyzing seven labour market indicators, the Global Employment Trend
for women (2004) revealed that the explosive growth in the female labour force has
not been accompanied by the socio-economic empowerment for women, nor has it led
to equal pay for equal work or balanced other benefits making women equal to men
across nearby all occupations.
At present, there is considerable change in the outlook regarding womens
development in view of increasing participation of women in work force. Even the
Government policies and programmes for women show an upward mobility from
welfare to development and then to empowerment. But these programmes and
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policies do not cover women of every sector. Women in India continue to bear the
burden of poverty, illiteracy and economic marginalization, lack of access to
resources, exclusion from decision-making, social stereotyping, discrimination and
violence at both household and societal level. (Gupta 2005)
Status of women in India:
In a country which boasts of its glorious heritage, where women has not only
enjoyed the equal status but has been described in the scriptures more than the better
half, it has become necessary today, for the Government to create special laws and
enforce them rigorously to give the desired social and economic status to the women
in India. Guru Nanak has warned those who assign the 2nd place to women. It is she
who gives birth to the kings. In the Hindu scriptures, she is dubbed as DEVI and
SHAKTI the most cherished symbol of love and creation. She is said to be the power,
behind the plough, the force behind the machine and the creative inspiration for the
poet and the artist. In fact, it is the woman who has been the pervasive urge behind the
creation.
The condition of the women of our country could be so hollow; this gave us a
rude shock and set the nation thinking. It was, perhaps, under this stress that the
Government envisaged the National Perspective for women highlighting the problem.
This realization once again installed the proverbial DEVI at the center of the stage,
with care and concern all around. This was not a meager achievement. Since then
various schemes have been introduced in the spheres of technology, education, health
and agriculture, concerning the problems of the women. As a common housewife, she
manages the house, tends the fields, looks after the cattle, works in the factories, mans
the industry and yet remains in the background. She feels shy to claim the equal
partnership with her counterpart. But does the fruit of her labour grant her the status
she deserves?
Some of the important targets which received attention at all levels are:
1)
Raising the status of women
2)
Highlighting the specific problems.
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3)
Creation of mass consciousness about the status of women.
4)
Provision of training and facilities of employment.
5)
Participation of women in the nation building activities.
6)
Creation of mass hysteria against dowry and social exploitation of women.

The status of women in India is tagged to the peculiar set up of our society
which divided in itself among the unequal halves-the rural population and the urban
population. The experts have confirmed this statement with the help of statistics we
are told that out of 368 million women, 278 millions live in the rural areas and their
vast majority is illiterate. The figures place this majority to 75 per cent. Out of the
rest, 20npercent are semi-illiterate and hardly 5 percent may be termed as educated.
As a welfare state, it become imperative for the Govt. to safeguard the
fundamental rights of the women and make provisions in the law for up gradation for
their status in order to establish equality in the distribution of work and wages.
Today the law grants immense power to the women. She has the right or equal
status in the social, cultural, economic and political fields. But what was lacking, was
the will on her part of claim equality with the man. It was the world of her own
disbelief and ignorance which always kept her as the shadow of her man. As such the
first step towards up gradation is to educate her and make her conscious of her
position and status. It is the illiteracy and lack of facilities for the technical training. It
has been noticed that in the fields of agriculture, fisheries, horticulture, forestry and
household industries, women have been working side by side with their male partners.
This statement is correct as far as the rural sector is concerned. The Central Social
Welfare Board has come out with a major programme of Socio- Economic
advancement for women, which will help them in setting up training- cumproduction centres. Many other voluntary social organizations have also come in the
field. As such arrangements have also made to impart vocational training to the needy
women. Besides, there are other schemes concerning education, maternity and child
welfare, which are the part and parcel of the strategy adopted by the Welfare state.
The progress of these programmes will be mentioned on periodic basis by the
department of women and Child Development. For working women, provisions of
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crches have been made, where they can leave their children during working hours.
Special houses and hostels have been built where, the working women can stay. These
institutions not only offer accommodation but provide relief and support during moral
danger. They provide care to the needy during illness, offer help during hardship and
look after their legal and medical problems. (Laxmi 1998)
Meaning of socio-Economic Development:
Socio- economic development is the process of social and economic
development in a society. It is measured with indicators such as gross domestic
products (GDP), life expectancy, literacy and levels of employment. In the socioeconomic context, development means the improvement of peoples life styles
through improved education, incomes, skills development and employment. It is the
process of economic and social transformation based on cultural and environmental
factors.
To improve the socio-economic condition of the women entrepreneurs, the
investigator found out that many researchers carried out many study related on the
socio-economic status and problems of the women.
Singh (1995) studied the womens development in different fields such as
agriculture, industry, education, science and technology, health and political
participation and found unsatisfactory development in all of these. He suggested an
important strategy i.e. to promote effective grass root organization for women in rural
and urban areas with access to information resources so as to increase their
effectiveness in the economic and political mobilization. He further stressed the need
to inculcate confidence among women and to bring about an awareness of their
potential for development, right and privileges. (Shakuntala, 2005)
Gupta (1995) observed that Indian women has proved her worth in the socioeconomic development of life, viz management, journalism, defense, administration,
communication and even in those area in which she was considered to be physically
unfit, but still most of the time, she seems to be handicapped of lagging behind in
decision making. This is not only the case with illiterate or womens from rural
background but also with the womens who are said to be literate and well
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established. This may not be true for the whole women community but this is still a
common aspect, which cannot be ruled out. The major cause for hesitation in
decision- making among women is their unequal status in the male dominated society.
Another reason for women subordination is Indian society culture which never
permits her to raise voice in front of her father, husband or in laws. As a result,
women lack of self confidence, which is pre requisite in personality building, is
lacking in India. Another important burning issue, which puts question mark on the
development of women is deselecting female fetus by sex determination. The ultimate
solution of this problem lies in elevating womens status, in changing attitudes, values
and prevalent social structure. (Shakuntala, 2005)
Giri (1998) discussed multiple concerns of socio-politico-economic facets
such as empowerment of women, gender justice, gender equality, women rights,
social legislation, custodial justice, violence against women and role of media etc.
The study highlights that in the modern world, the role of women goes much beyond
home and the bringing up of children. She is now adopting a carrier of her own and
sharing equality with men. But due to traditional male dominated value system,
women have not been able to get justice. In spite of several laws, there is a constant
increase in the number of crime against women. The harassment at work place is also
on the increase. This is because the women do not come forward to raise their voice.
Increasing participation of women in political processes and trade union activities is
one of the major ways in which the traditional male dominated value system can be
changed.
Seth (2001) analyzed women development in India. She observed that efforts
of development have been both in the social and economic spheres. Legal measures
have also created an enabling atmosphere but they have not been successful in giving
women greater empowerment. After years of development efforts, women share in
employment has remained low. Moreover, women are mainly marginal workers and
are concentrated in rural areas and in the private sector. Female infant mortality rates
are even now higher than the males. Their development in nutrition, health and
education is less from boys. Maternal mortality rates are also very high in India. This
social development is basic to raise the status of women and giving her a more
equalize share of development efforts. Women have to realize that their strength in
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social situation and economic empowerment will also accelerate their political
empowerment.
Joshi (1999) analyzed the status of women in the rural economy under the
prevailing demographic, health, educational, economic, social and political situations.
He observed that the economic development of a region alone does not help in the
elevation of the womens status, which is enshrined in the social and cultural values.
On the basis of the findings of the study, the author suggested that instead of
depending entirely on the high growth rate of income, we have to shift our focus on
values of the society and culture in order to remove the inequalities based on sex and
discriminatory practices against the women.
Raheem and Jamal (2008), explained in the study Socio-economic
Constraints among Rural and Urban Women Entrepreneurs the relative importance
of socio economic constraints variables based on their power to discriminate the rural
and urban women entrepreneurs in terms of percentage contribution of each
significant socio economic constraints variables to the total distance measured. The
result indicated that lack of appreciation (6.67), labour problem (19.17), inadequate
infrastructure (15.83), marketing problem (12.50), transport problem (10.00) and lack
of self confidence (8.33) were the significant variables which discriminate between
rural and urban women entrepreneurs. Therefore, the mentioned socio economic
constraints variables which differentiate rural women entrepreneurs are more
significant from urban women entrepreneurs in the study areas.
Various schemes for women development:
As the benefits of development have not percolated down to rural women,
Ministries of Agriculture, Rural development, Industry, Labour, Science and
Technology and Department of women and Child Development have taken significant
initiatives to remedy this situation by making specific schemes for enhancing
womens development.
The Ministry of Agriculture devised such a scheme in 1993 by forming
women into Farm groups of women in various States which included 4200 women.
Another scheme Training of women in Agriculture was formulated in the same year.
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Under this scheme, 1.89lakh women were given training in improved in agricultural
practices. The scheme of Assistance to womens Co-operatives was initiated during
1993-94. Under the scheme, a total number of 850 women Co-operatives were
benefited during the ninth.
The Governments biggest effort to give employment to women has, however,
been in the rural development sector. Common Programmes like Integrated Rural
Development Programme (IRDP), programme for Training of Rural Youth for Self
Employment (TRYSEM), National Rural Employment Programme (NREP) and Rural
Labour Employment Guarantee Programme (RLEGP), Employment Assurance
scheme (EAS), have been envisaged for increasing participation of women in wage
employment and recreation of assets specific to the needs of womens group.
A special programme, Development of Women and Child in Rural areas
(DWCRA) was launched in April 1981 as a sub component of IRDP to accelerate

the integration of women in the rural development programmes.
The Indira Awas Yojana initiated in 1985-86 stipulates that houses under the
scheme are to be allotted in the name of the female member of the beneficiary
household or in the joint names of husband and wife. Priority is given to widow and
unmarried women. Another externally assisted programme launched in 1989 is
Mahila Samakhya. It aims to promote womens education and empowerment in rural
areas, particularly women in socially and economically marginalized groups. It
endeavors to create a learning environment where women can collectively affirm their
potential, gain and strength to demand information and knowledge and move forward
to change their lives.
The other important scheme is National Maternity Benefit scheme that aims at
assisting expectant mothers by providing them Rs. 500 each for the first two lives
births, 6.5 lakh women have benefited since 1995 when the scheme was launched.
National Old Age Pension Scheme is meant for providing assistance to women
and men above the age of 65 years who have little or no regular income. During Ninth
Five year Plan, around 7.7 million women, constituting 24 percent of the aged
benefited from this scheme.
112
CHAPTER TWO
The Swaran- Jayanti Gram Swarozgar Yojana initiated in April 1999 with the
objectives of bringing the beneficiary families (Swarozgaris) above the poverty line
by providing them income-generating assets through a mix of bank credit and
government subsidy. As per plan, women will form 40 percent of the Swarozgars.
Since its inception around 4.3 million swarozgaris, 24 percent of whom were women,
were assisted during the Ninth plan.
Jawahar Gram Samridhi Yojana initiated in June is next important initiative of
the Rural Development Ministry. Under this scheme, 30 percent of the employment
opportunities were reserved for women. During the Ninth plan, around 3.9 million
man-days consisting 28percent of the total employment generated under JGSY were
provided for women.
The Restructured Centrally sponsored Rural Sanitation Programme, which
was launched in 1999, ensures construction of village sanitary complexes exclusively

for women.
The United Progressive Alliance Government has promised a major expansion
in schemes for micro finance based on Self Help Groups and earmark at least one
third of all funds flowing into panchayats for programmes relating to the development
of rural women and children.
For helping urban poor women, there is a scheme The Swaran Jayanti Shahari
Rozgar Yojana, which provides for gainful employment through encouraging, setting
up, provides for gainful employment through encouraging setting up of self
employment ventures of wage employment. The scheme of Development of women
and children in the urban areas provides assistance to urban women for setting up
gainful ventures.
A Scheme for science and Technology for Women is being run by the
Department of Science and Technology aimed at empowering women through inputs

of science and technology.
The Nodal Department of women and Child Development implemented a few
innovative schemes to raise the overall status of women at par with that of men.
113
CHAPTER TWO
The Small Industries Development Organization has formulated a new scheme
for the development of women entrepreneurs and would be giving training to 2500
women every year. The National Small Industries Corporation has also formulated a
special scheme for women entrepreneurs through information campaigns and training
programmes for women.
The Khadi and Village Industries commission is playing a very important role
in employment. The maximum employment was created in the khadi sector in which
more than 80percent are women workers. In the village industries sector also, women
employment constitute about 45 percent of the total employment.
For the social and economic uplift and empowerment, the Department of
women and Child Development has taken significant initiatives by making specific
schemes for enhancing womens employment and for social and economic uplift and
empowerment. (Gupta, 2005)
Conclusion:
After going through the available literature, the researcher could come to a
conclusion that many assorted efforts and empirical studies have been made at various
times by many researchers to study problems of women entrepreneurs, the motivating
factors of women, socio economic status of women entrepreneurs, womens
contribution in family income and so on. Very few of the researchers have put in
efforts to elevate socio economic level of the women entrepreneurs-an effort from
Lab. to Land. The investigator planned a research to explore first the socio economic
status of the women entrepreneurs from Manipur and study their problems, their
market knowledge, find out their aptitude towards learning new thing and innovations
in weaving and then planned a need based intervention program to enhance their skills
and improve their socio economic level of the family.
114

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CHAPTER TWO

2.2 Development of handloom industry:

have recommended for a system to provide adequate finances, procurement of quality

Only 37 percent of total weavers (excluding North-East) are state aided

P.G. Department of Home science, Sardar Patel University

The simplest modernizations in handloom as compared to similar

State interventions in handloom (subsidies, revenue support) were definitely

12percentof weaver households (excluding North East) are relatively affluent

There is no significant difference in socio-economic status of weavers who are

P.G. Department of Home science, Sardar Patel University

P.G. Department of Home science, Sardar Patel University

P.G. Department of Home science, Sardar Patel University

The dawn of Independence provided an opportunity to accord priority

Krishnamachari, seven years after its

P.G. Department of Home science, Sardar Patel University

P.G. Department of Home science, Sardar Patel University

Enterprise finds manifestation in different ways. The capacity to take risk

P.G. Department of Home science, Sardar Patel University

strategic innovators, seeking profitability with growth. Promoting entrepreneurship in

P.G. Department of Home science, Sardar Patel University

High intelligence: An entrepreneur should be highly intelligent. He should be

Creative thinking: Entrepreneur should have creative thinking of converting an

Leadership qualities: An entrepreneur must have leadership qualities for

Managerial efficiency: An entrepreneur is also considered a manager of his

Initiative: Initiative is basic requirement for a good entrepreneur.

Foresight: Foresight ability consists of forecasting approach and opportunity

P.G. Department of Home science, Sardar Patel University

Flexibility: Entrepreneur should be easily adjustable to any type of

Communication ability: An entrepreneur who can effectively communicate

Human relation ability: an entrepreneur must maintain good relations with

High energy level: Success of an entrepreneur demands the ability to work

Who imitate innovations,

technologies initiated by others.

to have narrowed down on entrepreneurship which is considered to be a vital

whereby the real per capital income of a country increases over a

long period of time.

P.G. Department of Home science, Sardar Patel University

Table 1: Industrial Estate Where Units are run by Women Entrepreneurs:

Other States &U.Ts

Source: Business Standard, May 8, 2002

out symposia, seminars,

workshops and conference to highlights the importance of women activities including

number of women entrepreneurs assumes critical importance. There is a growing

P.G. Department of Home science, Sardar Patel University

Entrepreneurial core dimension: identified the felt needs for taking up

Work core dimension: incorporated motivations for the preferred type of

Social core dimension: motivation for preferred life-styles of individuals wee

Individual core: the freedom to express unconventional mode of behavior we

Economic core encompassed the financial reasons.

Entrepreneurshiptried to assess the institutional support provided to women

P.G. Department of Home science, Sardar Patel University

Value of Self-Fulfillment over Money: Generally, women entrepreneurs are

Sense of Responsibility: Women entrepreneurs feel a deep sense of personal

Imagination: Women entrepreneurs posses a good sense of imagination,

Persistence: Women entrepreneurs have strong desire to convert their dreams

High Level of Optimism: Women entrepreneurs generally succeed in their

Tolerance for Ambiguity: Women entrepreneurs have a high degree of

Flexibility: Due to feminine nature, women entrepreneurs have their ability to

Organizing Capacity: Women are good managers. That is why women

PROBLEMS OF WOMEN AS ENTREPRENEURS