RESEARCH PROPOSAL

PART – A

1. Broad Subject :- Entrepreneurship Management

2. Area of Specialization:- Women Start ups in India

3. Duration:- 1 year.

4. Principal Investigator
i. Name: Deepti Kalra ii. Sex: M/F: - Female
iii. Date of Birth: 24/12/1980
iv. Qualification: M.Com., M. Phil
v. Designation: Assistant Professor
vi. Address: A17, FF, RPS Palms, Sector 88, Faridabad-121002, Haryana

Office: Govt. College Tigaon, Faridabad

Residence No: 2J/94, NIT 2, Faridabad 121001, Haryana

5. Name of the Institution where the project will be undertaken:

(a) Department : Commerce
(b) College : Govt. college Tigaon, Faridabad
(c) University: M.D.U. Rohtak

6. Whether the College/University is approved under Section 2 (f) and 12 B

of the UGC Act? Yes

7. Teaching and Research Experience of Principal Investigator:

(a) Teaching experience: UG ___10___Years
PG 5 Years
(b) Research experience: Six months during M. Phil.
 PART-B

Project Title: Ensuring women empowerment through

supporting women entrepreneurship: A conceptual framework

Abstract: The year old Indian thought of considering women as the home maker
has to larger extents have changed in the recent years with the rising number of
the women employments in almost all the industries. The Indian women have
also emerged as the victorious on the managing front i.e. managing the overall
organizational activities i.e. as the entrepreneurs. As proven by the success stories
of many women entrepreneurs ranging from Indira Nooyi, Indu Jain, Kiran
Mazumdar shaw, Vandana Luthra, Naina Lal Kidwai, to many more in the list. But
the role of the women entrepreneurs has also risen as a standalones in the small
and medium scale industries and need to be looked forward to encourage women
empowerment. Although with the rising number of women entrepreneurs in
SMEs as supported by various government schemes and initiatives, a lot more has
to be done in order to give an equal status to the women in the society. This
paper thus attempts to understand the various initiatives taken by the Indian
government to foster women empowerment and the problems still pertaining
and the ways to overcome them.

Introduction: Women represent about 48.36 percent of the total population in

India and the majority of the Indian women are concentrated in the house hold
works only. The Indian women are well versed in almost all the tasks and need to
bring out in order to lead to economic growth of the society. Entrepreneurship
refers to the act of setting up a new business or reviving an existing business so as
to take advantages from new opportunities. Thus, entrepreneurs shape the
economy by creating new wealth and new jobs and by inventing new products
and services through the basic day to day activities performed at home like
cooking, stitching, etc.
The women-owned micro, small, and medium enterprises is still unexplored as a
distinct segment compared to MSMEs in India due to a lack of awareness, support
and the potential business opportunity presented to this segment. Women
entrepreneurs make a momentous contribution to the Indian economy. There are
nearly three million MSMEs in India with full or partial female ownership and
around 78 percent of women-owned businesses operate in the services sector by
the year 2016. Collectively, these women-owned enterprises contribute 3.09
percent of industrial output and employ over 8 million people. It is also observed
that the women entrepreneurs have lower access to finance from formal
financing sources when compared with male entrepreneurs. Women-owned
medium-scale enterprises, which account for 0.01 percent of the total MSME
sector had finance requirements of around Indian rupees 0.21 trillion in
December 2016. Women entrepreneurship is largely skewed towards smaller
sized firms, as almost 98 percent of women-owned businesses are micro-
enterprises. As with the broader MSME sector, access to formal finance is a key
barrier to the growth of women-owned businesses, leading to over 90 percent of
finance requirements being met through informal sources.

Financial institutions that have created specific approaches for women

entrepreneurs as part of their overall SME strategies have seen an increase in the
number of women clients, both as entrepreneurs and as consumers. Banks data
indicates that in the case of women-owned businesses, non-performing loans are
30 to 50 percent lower, women-owned MSMEs present greater potential for cross
sales and they are likely to access more products when compared with male
entrepreneurs. This nearly makes them twice as profitable for banks as a
consumer segment. Financial institutions thus, tap this profitable segment with
products and services tailored to the needs of women-owned MSMEs. The
financial institutions however need to adapt to encouraging the women
entrepreneurs both financially and with the technical assistance because of
number of reasons like: huge number of women entrepreneurs in the services
sector, banks rely heavily on collateral to give credit, which is a constraint for
women-owned services enterprises, there is also a need to address some of the
more obvious barriers that prevent women entrepreneurs from approaching
financial institutions, such as a lack of women relationship managers and the
need for support from a male family member to access credit and finally, financial
institutions should consider options such as advisory desks at selected bank
branches to offer information on products and services tailored to women-owned
enterprises. Providing non-financial services and training, along with access to
financial products, will offer holistic growth opportunities to women
entrepreneurs.

India’s growth story in the past decade has seen rapid industrial progress as well
as exponential growth of the services sector. The micro, small, and medium
enterprises (MSME) sector played a significant role in this through innovation,
diversification, and employment generation. An estimated 29.8 million MSMEs in
India contribute 11.5 percent of gross domestic product (GDP), 45 percent of
industrial output, 40 percent of exports, and employ nearly 69 million people.
MSMEs in India are broadly divided into two classes according to the provisions of
the MSME Development (MSMED) Act, 2006. These are:

Manufacturing enterprises engaged in the manufacturing or production of goods

pertaining to any industry specified in the first schedule of the Industries
Development and Regulation Act, 1951, defined in terms of investment in plant
and machinery. Service enterprises engaged in providing or rendering of services
defined in terms of investment in equipment. 94 percent of MSMEs operate
without formal licenses or registration. Approximately 29 percent belong to the
manufacturing sector. MSMEs in the services sector, comprising of the remaining
71 percent, mostly operate in conventional transaction-based industries. Access
to finance is a key constraint to growth of the MSME sector in India. A significant
proportion of financing is sourced From (75%) informal sources such as
moneylenders. Around 3.01 million women-owned enterprises represent about
10 percent of all MSMEs in the country. Collectively, they contribute 3.09 percent
of industrial output and employ over 8 million people. Approximately 78 percent
of women enterprises belong to the services sector. Women entrepreneurship is
largely skewed towards smaller sized firms, as almost 98 percent of women-
owned businesses are micro-enterprises. Approximately 90 percent of women-
owned enterprises are in the informal sector. Table 1 and 2 thus highlights the
detail of the registers and unregistered Women-owned MSMEs along with the
Geographical distribution of women-owned MSMEs

Table 1: Women-owned MSMEs

Category Registered Unregistered Total

Micro 274059 2655318 2929377

Small 40722 30414 71136

Medium 276 * 276

Total 315057 2685732 3000789

Source- International Finance Corporation (2015-16)

Table 2: Geographical distribution of women-owned MSMEs

Prevalence of State No. of States / union territories Combin

women- wise states/ ed
owned share union share
businesses (%) territories percent
age

High > 10.00 4 Kerala, Karnataka, Tamil 51.9

Nadu, West Bengal

Medium 5.00 – 2 Andhra Pradesh, Madhya 11.5

10.00 Pradesh

Low 2.00 – 7 Rajasthan, Maharashtra, 26.7

4.99 Punjab, Uttar Pradesh,
 Bihar, Gujarat, Odisha

Very low < 1.99 20 Rest of India 9.9

Source- International Finance Corporation (2015-16)

Objective: The research is a purely exploratory review based research with an

objective to identify and understand various governmental and institution
supports to women SME entrepreneurs in ensuring women empowerment.

Government schemes: Women have fewer opportunities for education and

employment than men. By ensuring women's participation in skills development
programs, it is possible to bring more women to light and make optimum
utilization of our human capital and women empowerment. The government of
India thus along with some financial institutions, in order to encourage women
empowerment with the aim of promoting and easing out the process for them
has introduced various schemes and incentives like:

 Under the trade Related Entrepreneurship Assistance and Development

(TREAD) scheme the government grant up to 30 percent of the total project
cost to the Non-Governmental Organizations (NGOs) for promoting
entrepreneurship among women. The remaining 70 per cent of the project
cost is financed by the lending agency as loan for undertaking activities as
envisaged in the project. Further, the government grants up to Rs.1 lakh
per programme is provided to training institutions/NGOs for imparting
training to the women entrepreneurs. Under this scheme, proposals
involving grant of Rs.51.65 lakh to 16 NGOs / institutions, have been
approved for benefiting 1700 women.
 Under Rural Employment Generation Programme (REGP) scheme the
government focuses on employment generation in the unorganized sector.
Though there are no specific reservation for women entrepreneurs under
 this scheme, still there has been substantial participation (around 30 per
cent) of women as a result of the promotional efforts undertaken in this
regard. Under this programme, 3,656 projects of women entrepreneurs
involving margin money of Rs.6397.99 lakh have been assisted as
government grant during 2007-08 up to December 2007.
 During 2006-07, the participation of women in terms of employment
generation under Prime Minister Rozgar Yojana (PMRY), was 16.5 per
cent. Under the scheme, preference is given to women beneficiaries and
the government also made several relaxations to women to facilitate their
participation.
 Mahila Coir Yojana is a women-oriented self-employment scheme in the
coir industry, which provides self-employment opportunities to the rural
women artisans in regions producing coir fibre. The scheme envisages
distribution of motorized rats for spinning coir yarns to women artisans
after giving training. Women spinners are trained for two months in
spinning coir Board provides motorized rats / motorized traditional rats at
75 per cent cost subsidy, subject to a maximum, ceiling of Rs.7500/-for
motorized rats and Rs.2,925/- for traditional rats. During 2007-08, up to
December 2007, 1,042 rats have been distributed.
 Rajiv Gandhi Udyami Mitra Yojana scheme launched on February 7, 2008
with an objective to promote and support establishment of micro and small
enterprises through handholding of potential first generation
entrepreneurs, who have already successfully completed Entrepreneurship
Development Programme (EDP), Skill Development Programme (SDP) etc.
 Various Public sector banks’ schemes for women-owned MSMEs are:
o ALEAP and CGTSI - Mutual Credit Guarantee Scheme for Women
by Andhra Bank to provide Credit (Fund-based and/or non-fund-
based) for single eligible borrowers in the micro and small enterprise
sector.
o Akshaya Mahila Arthik Sahay Yojna by Bank of Baroda to
provide financial assistance for professional, self-employed women
and for women in retail trade and agriculture.
o Cent Kalyani scheme of Central Bank provides financial
assistance to women entrepreneurs for economic pursuits in various
sectors.
o Dena Shakti Scheme for Women Entrepreneurs of Dena Bank
provides finance for women entrepreneurs in agriculture and allied
activities, small enterprises, retail trade, micro credit, education, and
housing.
o Schemes for professional and self-employed women of Oriental
Bank of Commerce for professional and self-employed women.
o Orient Mahila Vikas Yojana of Oriental Bank of Commerce, For
women-owned SMEs. Also, micro credit units provide doorstep
services to women in rural areas.
o Priyadarshini Yojana of Bank of India, Covers payments for women
to set up small, village, and cottage industries and to purchase
machinery.
o Udyogini Scheme of Punjab and Sind Bank offer Loans on liberal
terms for women entrepreneurs in agriculture, tiny/small-scale
 industries, and retail and also for professional and self-employed
women.
o PNB schemes for women of Punjab National Bank offers five
schemes for women entrepreneurs: 1) To meet gaps in equity 2) To
purchase infrastructure 3) Easier credit to finance crèches 4) To
meet working capital credit requirements of allied agricultural
activities 5) Margin concessions.
o Stree Shakthi Package for Women Entrepreneurs of State Bank of
India, For women entrepreneurs (small scale units managed by one
or more women entrepreneurs) with a stake of not less than 51
percent. Entrepreneurs who have undergone entrepreneurship
development programs conducted by state-level agencies or
programs co-sponsored/sponsored by the bank are eligible. The
scheme also offers a discounted rate of interest by 0.50% in case the
amount of loan is more than ₹2 lakhs.
o Marketing Fund for Women (MFW) by the Small Industries
Development Bank of India, Provides assistance to women
entrepreneurs and organisations involved in marketing products
manufactured by women entrepreneurs to increase their reach in
domestic and international markets.
o Annapurna Scheme for Financing Women for Establishing Food
Catering Units by the State Bank of Mysore Supports women
entrepreneurs setting up food catering units in order to sell packed
meals, snacks, etc. The amount granted as a loan under this scheme
 can be used to fulfill the working capital needs of the business like
buying utensils and other kitchen tools and equipment.
o Mahila Vikas Scheme of State Bank of Travancore , extends term
loan/working capital to units promoted by women entrepreneurs.
Only enterprises owned and administered by woman entrepreneurs,
having a minimum financial interest of 51 percent and providing at
least 50 percent of employment generated to women.
o Special Benefits for Women Entrepreneurs in Micro and Small
Enterprises Segments by the Canara Bank.
 Bharatiya Mahila Bank Business Loan: This loan is a support system for
budding women entrepreneurs looking to start new ventures in the fields
of the retail sector, loan against property, MICRO loans, and SME loans. The
maximum loan amount under this loan goes up to ₹20 crores in case of
manufacturing industries and also a concession is available to the extent of
0.25% on the interest rate and interest rates usually range from 10.15% and
higher. Additionally, under the Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE), there is no requirement of collateral security
for a loan of up to ₹1 crore.
 Mudra Yojana Scheme For Women launched by the Govt. of India for
individual women wanting to start small new enterprises and businesses
like beauty parlors, tailoring units, tuition centers, etc. as well as a group of
women wanting to start a venture together. The loan doesn’t require any
collateral security and can be availed as per 3 schemes –
o Shishu – loan amount is limited to ₹50,000 and can be availed by
those businesses that are in their initial stages.
 o Kishor – loan amount ranges between ₹50,000 and ₹5 lakhs and can
be availed by those who have a well-established enterprise.
o Tarun – loan amount is ₹10 lakhs and can be availed by those
businesses that are well established but require further funds for the
purpose of expansion.
If the loan is granted, a Mudra card will be given to you which functions
the same way as a credit card however the funds available are limited to
10% of the loan amount granted to you.

Promotional Package

Besides all the schemes In March 2007, the government of India has announced a
comprehensive package for the promotion of Micro and Small Enterprises, which
comprises several proposals and schemes having direct impact on their
promotion and development. Which includes credit and fiscal support, cluster-
based development; infrastructure, technology and marketing support and
Capacity building of MSME Associations and support to women entrepreneurs are
the other important features of this package. Enhanced Credit Flow to the MSME
Sector for strengthening the delivery of credit to the MSEs, the Government
announced a policy package for stepping up credit to MSME in August 2005 for
doubling the credit flow to this sector within a period of five years. This has
further resulted in a significant increase in the credit flow from Public Sector
Banks (PSBs) to the micro and small enterprises (MSME) sector.

Skill Development

Along with the financial support the Government of Indian has also extended skill
development support as a high priority area through various measures like
enhancing the training capabilities of the Tool Rooms, MSME Development
Institutes and other organization under the Ministry of MSME. The agencies
under the Ministry of MSME conducted programmes for skill development for
nearly 1.8 lakh trainees during 2007-08 and the targets set for 2008-09 is 3 lakh
persons. The Ministry of MSME provides all such training for Scs/STs free of cost.
Similar programmes are also being organized for women and other weaker
sections of the society free of cost, besides providing a monthly stipend of
Rs.500/-per month during the entire period of training.

Cluster Development Programme For the last few years, the Government has
been focusing on the strategy of Cluster Development for development of the
MSEs through which different cluster and concentrations of enterprises are given
the benefit of a whole variety of interventions ranging from exposure to skill
development, from credit to marketing and from technological improvements to
better designs and products. About 412 clusters have been approved for
interventions under the scheme (including 50 clusters for hard interventions, 152
clusters for soft interventions and 210 clusters for diagnostic studies).

National Fund for Unorganized Sector

The National Commission for Enterprises in the Unorganized Sector (NCEUS) in

one of its reports has recommended creation of a National Fund for the
unorganized sector. The Minister for Micro, Small and Medium Enterprises,
Mahabir Prasad informed parliament that while a final view on the creation of this
fund is yet to be taken, a token provision in the Budget 2009-10 has been
proposed. He said that the MSME has continued to contribute significantly in the
gross domestic product, industrial production, employment generation and
exports and has acquired a prominent place in the economy of the country. The
government has an ambitious 14-point action plan for public sector banks to
increase women’s access to bank finance, including MSME finance. It set a target
of 5 percent aggregate public sector bank lending to women and instructed the
central bank to track performances. Following this, Reserve Bank of India (RBI) in
2000 asked public sector banks to report credit extended to women. This resulted
in an increase of loans to women from 2.36 percent in 2001 to 5 percent of total
lending in 2007. Aggregate net bank credit to women increased to 6.3 percent in
2009, with 25 banks reaching targets. Apart from MSME-specific initiatives, India’s
11th five-year plan encourages ownership rights for women by offering incentives
for registration of property. Women homebuyers benefit from tax exemptions,
lower stamp duties, and easier availability of home loans. This could help women
who own MSMEs to get greater access to collateral and, in turn, access business
finance. The MSME ministry has flagged the promotion of women-led enterprises
as a key priority area. In 2008, the ministry launched the government of India’s
only financing scheme for women entrepreneurs. However, lack of awareness
among target clients led to low uptake of this scheme. In 2012, loans of Indian
rupees 7.7 million ($140,000) were disbursed against a target of Indian rupees 38
million ($700,000).Table 10 outlines the key details of the scheme. The
government plans to set up India’s first all-women’s public sector bank -- the
Bharatiya Mahila Bank -- by the end of 2013. The bank targets to have 25
branches by March, 2014. This bank will focus on the banking needs of women
and promote their economic empowerment. The government has approved
Indian rupees 10 billion ($181 million) as seed capital for this bank. It gave an in-
principal approval for the bank in June 2013.

Conclusion:

Women too are seen leaving their high-profile jobs as well as some stepping out
of the four walls of their homes and joining the pool of Entrepreneurship in India.
The major factor to jumpstart the entrepreneurial journey is capital and various
banks offer specialized loans for women entrepreneurs that have slightly different
and more flexible set of terms and conditions pertaining to collateral security,
interest rates, etc. However, an insight study reveals the efforts of the Indian
government to encourage women empowerment though supporting the growth
of women entrepreneurship. The women have achieved immense development in
their state of mind. With increase in dependency on service sector, many
entrepreneurial opportunities especially for women have been created where
they can excel their skill with maintaining balance in their life. Accordingly, during
the last two decades, increasing numbers of Indian women have entered the field
of entrepreneurship and also they are gradually changing the face of business of
today, both literally and figuratively.

References:

1. Introduction: Background of MSMEs Development Commissioner (MSME),

Government of India, Annual report of Ministry of Micro, Small and
Medium Enterprise –[MSME] of India, (2010-11)
2. Growth and performance of MSMEs and 4th Census of MSMEs, Annual
report of MSME of India, (2010-11), Development Commissioner (MSME),
Government of India.
3. Rai D., (2009), Development Policies for Micro, Small Medium Enterprises
(MSMES) in India, Laghu Udyog Samachar: Journal of Small Scale Industries,
34(9-11), pp 3-7.
4. Micro Small and Medium enterprises, Government of India, Report of
Prime Minister’s Task Force., (2010)