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WOMEN ENTREPRENEURSHIP: GOVERNMENT AND

INSTITUTIONAL SUPPORT IN ANDHRA PRADESH – A STUDY

*DR. T.NAGALAKSHMI

Faculty Member (PG), Department of Commerce,

Indian Institute of Management and Commerce (IIMC)

Adj: Telephone Bhavan, Saifabad,

Khairatabad, Hyderabad - -500 004.

Telangana, India.

ABSTRACT

Abstract

In globalized arena the hidden entrepreneurial potentials of women have gradually been changing

with the growing sensitivity to the role and economic status in society. Women are

increasingly being conscious of their existence, their rights and their work situation. And yet the

middle class strata women have accepted their role and are not ready to alter for fear of a social

backlash. Today, woman entrepreneurs represent a group of women who have broken away from the

beaten track and are exploring new avenues of economic participation. Among the reasons for

women to run organized enterprises are their skill and knowledge, their talents and abilities in

business and a compelling desire of wanting to do something positive.

The present paper focuses on the entrepreneurship and economic development, government and

institutional support provided to women entrepreneurs etc.,

Key Words: Entrepreneurship, Women Entrepreneurs, Economic Development, Government

support, Schemes

________________________________________________________________________

__

1.0 Introduction

The 1991 Industrial Policy has envisaged special training programmes to support women

entrepreneurs .Accordingly women enterprenures are receiving training through Entrepreneurship

Development Programmes (EDPS) conducted by various

institutions and organizations, both at central and state levels. The Small Industries Development

Organization (SIDO), with its field offices all over the country, has been carrying out development

programmes for women entrepreneurs and providing technical schemes for setting up of SSI units. In

view of the changing outlook for the promotion of women enterprises, the SSI Board in 1991

revised the definition of women enterprises by omitting the condition of employing 50 per cent

women workers.

2.0 History of women entrepreneurship

Although women form a very large proportion of the self- employed group, their work is often

not recognized as “work”. The prevailing „house- hold strategy‟ catalyses the devaluation of

women‟s productive activities as secondary and subordinate to men‟s work. Women‟s

contributions vary according to the structure, needs, customs and attitudes of society.

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Women entered enterprenurial activities s because e of poor economic conditions , high

unemployment rates and divorce catapult. In Babylonia, about 200 B.C., women w e r e p e r m i t t e d t o

e n g a g e in business and to work as scribes.

2.1 Concept of Entrepreneur

„An entrepreneur is a director who combines various factors of production to produce a socially viable

product‟. Entrepreneurship is the practice of starting new organizations or revitalizing mature

organization.

The word entrepreneur is French and literally translated, means “between-taker” or “go-between”.

2.2 Concept of Woman Entrepreneur:

Woman entrepreneurs are the women or group of women who initiate, organize and operate a business

enterprise‟. Entrepreneurship is an economic activity which is undertaken by an individual or group of

individuals. Entrepreneurship can be defined as the making of a “new combination” of already

existing materials and forces; that entrepreneurship throws up as innovations, as opposed to

inventions and that no one is entrepreneur fore ver, only when he or she is actually doing the

innovative activity.

„Government of India defined women entrepreneurship as an „enterprise owned and controlled

by a woman having a minimum financial interest of 51% of the capital and giving at least 51% of the

employment generated in the enterprise to women‟.

2.03 National Policy for The Empowerment Of Women (2001)

The principle of gender equality is enshrined in the Indian Constitution in its Preamble,

Fundamental Rights, Fundamental Duties and Directive Principles. The Constitution not only

grants equality to women, but also empowers the State to adopt measures of positive discrimination in

favour of women. Within the framework of a democratic polity, our laws, development policies,

Plans and programmes have aimed at women‟s advancement in different spheres. From the Fifth Five

Year Plan (1974-78) onwards there has been a marked shift in the approach to women‟s issues from

welfare to development. In recent years, the empowerment of women has been recognized as the

central issue in determining the status of women. The National Commission for Women was set up

by an Act of Parliament in 1990 to safeguard the rights and legal entitlements of women. The 73rd

and 74th

amendments (1993) to the Constitution of India have provided for reservation of seats in

the local bodies of Panchayats and Municipalities for women, laying a strong foundation for their

participation in decision making at the local levels.

2.04 REVIEW OF LITERATURE

Adarsh Garg (2011), opined that the successful performance of any project is measured by

three criteria, namely, whether the project is on time, on budget and whether it satisfies the

customers to meet the specifications and thus to ensure that Information System‟s development

projects are within cost and time and are of good quality. There is an explosion of research into

the area of IS project management issues within small and medium enterprises (SMEs). The

objective of the study is to assess the prevalence of best practices of IS project management in IT and

SMEs. A survey-based approach is used in this research to understand the IS project

management activities. The results of the study reflect the non-realization of best

practices of IS project management in software developing SMEs in NCR of India. Akbar (2010),

made an attempt to conduct an input-based evaluation of the Entrepreneurship development

courses offered at BBA and MBA level in different public and private universities in Bangladesh.

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The study has used primary data collected through a survey

by using a structured questionnaire based on an Entrepreneurship Education Model

proposed by Azim(2007). In order to sketch a comprehensive picture of Entrepreneurship

Education in Bangladesh at university level the most common descriptive statistics like, Mean,

Percentage, Standard Deviation, Variance, etc. are used. Observed, that the entrepreneurship

courses in

different universities in Bangladesh as a whole operate with medium level of effectiveness.

Batra (1995), reviewed about industrial sickness particularly in the small scale sector in endemic in

India, calling for its effective tackling. Objectives of the study are (i) to examine the past trends in

some weak units and identify critically effective financial ratios and other physical indictors of

performance, which are hampering the growth of the unit, (ii) to assess the role of financial institutions

in each case and to discuss their impact on the units under study and iii) to study the effectiveness of

Yadav‟s MDA Model in predicting the incipient sickness in the units under study. He concluded that

management inputs energy as the main element of the revival and rehabilitation planning.

Dhameja (2008), conducted a study on women entrepreneurship and women in business,

entrepreneurship and small business, and also studied the definitions of women entrepreneurs,

Indian research pertaining to women entrepreneurship, women entrepreneurship, Indian and

international research scenario, profile and entrepreneurial performance, experience with

enterprise support agencies etc.

Gangadhar (2007), focused on the concepts of women entrepreneurship, women entrepreneurship

in India, Entrepreneurial Development Programmes, Financial Institutions for Entrepreneurs

Development, Institutions who provide Entrepreneurship Development.

Khanka (2002), focused on Entrepreneurial Development, concept of women

entrepreneurs, Functions of women entrepreneurs, Growth of women entrepreneurs, their problems,

development of women entrepreneurship, recent trends etc., and

concluded that women entry into business is a recent phenomenon. It is traced out as an extension of

their kitchen activities to three P s, i.e., pickles, powder (masala) and papad manufacturing. With

growing awareness and spread of education over the years, women have started engrossing to

modern activities like engineering, electronics and energy popularly known as 3Es. In

certain businesses, women entrepreneurs are doing exceedingly well and excelling their male

counterparts.

3.0 Objectives of the study:

The study focuses on the following objectives:

1. To analyze the role of entrepreneurship in economic development

2. To trace the origin and growth of women entrepreneurship in Andhra Pradesh

3. To analyze the problems faced by women entrepreneurs in Andhra Pradesh

4. To examine the institutional support for entrepreneurship among women in Andhra Pradesh.

3.1 HYPOTHESES OF THE STUDY

To realize the objectives of the study, the following hypotheses are formulated:

3.2 Main Hypothesis

Ho : Women Entrepreneurs do not face problems

Sub Hypotheses:

1. Ho : There is NO association between nature of enterprise and education

2. Ho : There is NO association between social category and education of women

enterprises

3. Ho :There is No association between Education and form of ownership

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4. Ho : There is No association between Education and type of products.

5. Ho : There is No association between Nature of enterprise and form of ownership.

3.3 METHODOLOGY

3.4 Sample Design

For the purpose of the study 100 women, entrepreneurs have been selected adhering to the principle of

stratified random sampling. The district Mandals and village constitute the strata for the purpose of

sampling.

Table 1.1 Number of Districts in the study region

Sl. No. District Number of Mandals

1 Vishakapatnam 39

2 Ranga Reddy 32

3 Ananthapur 56

4 Kurnool 54

Grand Total

181

Source: Department of Economics and Statistics

Table 1.2 Number of Mandals selected from study region

Sl.No. District Total No. of

Mandals

Mandals selected for the study

1 Visakhapatnam 39 10% = 4

2 Ranga Reddy 32 10% = 3

3 Ananthpur 56 10% = 6 (only 3 Mandals selected)

4 Kurnool 54 10% = 5

Grand total 181 18

Source: www.apgov.org

The present study proposes to make use of both primary and secondary sources of the data. For data

collection, a well-defined structured questionnaire and schedules have been developed as a research

instrument, aimed to analyze the perception of women entrepreneurs about the problems faced,

institutional support and the promotional measures in place for developing entrepreneurship among

women in Andhra Pradesh.

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Table 1.3 Distribution of Number of Women Enterprises

Territory

1st April, 2010 to 31

st March, 2011 1

st April, 2011 to 31

st March, 2012

Micro Small Medium Total Micro Small Medium Total

All India 204064 29101 1260 237263 242606 34192 2939 282496

AP 3469 5698 37 9204 3588 5621 51 9260

Ananthapur 52 114 1 167 64 115 1 180

Kurnool 42 100 0 142 34 88 0 122

Ranga Reddy 1261 683 6 1950 1039 1380 16 2435

Visakhapatnam 165 262 3 430 205 444 7 656

Source: Commissioner of Industries

3.5 Primary Data

The present study proposes to make use of both primary and secondary sources of the data. For data

collection, a well-defined structured questionnaire and schedules have been developed as a research

instrument, aimed to analyze the perception of women entrepreneurs about the problems faced,

institutional support and the promotional measures in place for developing entrepreneurship among

women in Andhra Pradesh.

3.6 Secondary Data

The secondary data are collected from the Official records of the District Industrial Centers of the

select Districts Viz., Ananthapur, Kurnool, Ranga Reddy and Visakhapatnam and annual reports of the

Commissioner of Industries, Andhra Pradesh. Simple averages, percentages are used for analyzing the

data. Further, a Chi-Square test is used to analyze the perception of the respondents vis-à-vis the

problems faced by the women entrepreneurs and the institutional support, the promotional measures for

development of entrepreneurship among women in Andhra Pradesh.

3.7 Scope of the Study

The present study aims at studying the institutional support, problems faced by women entrepreneurs

and factors promotion entrepreneurship among women, have been confined to women entrepreneurs

who have at least five years standing as entrepreneurs. Further, the study has been included in its scope

in three regions Andhra, Telangana and Rayalaseema.

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3.8 Period of Study

For institutional support and for entrepreneurship development among women a period of 5 years (from

2005 to 2010) has been considered for analysis, subject to the availability of data.

3.9 Limitations

In Anantapur, women entrepreneurs were reluctant to give information. Hence Kurnool district was

additionally selected for the purpose of the study. The study has been made on the basis of secondary

and primary data. The secondary data has been obtained mainly from the reports and publications of

government departments. Therefore, the accuracy of the study based on the secondary data depends

upon the reliability of the data obtained from these sources. This may be taken as a limitation of the

study.

The primary data were obtained from number of direct interviews of women entrepreneurs.

Some of the respondents were reluctant and hesitant to give details of their actual turnover, profits or

other financial matters either because of fear to disclose or due to lack of interest in such studies. The

accuracy of study based on the primary data depends upon the reliability of information provided by the

respondents. Hence, to that extent the study suffers the limitation of generalization of the findings.

4.0 DATA ANALYSIS

4.1. Availing assistance from Government Undertakings in marketing products

Availing assistance from Government

Undertakings in marketing products

Total Percentage

No 47 43.12

Yes 62 56.88

Grand Total 109

Source: Primary Data

From the above table, it is observed that 62 respondents (56.88%) are availing assistance

from government undertaking in marketing their products. This is because of the reason that after

economic reforms in 1991 announced by the Union government gave importance to Macroeconomic

structural changes and self-sustainment. This may be the reason for women empowerment at this

juncture.

4.2 Nature of Government Assistance

Nature of Government Assistance Total Percentage Ranking

Exhibitions 45 70.97 1

Preferential purchase from local units 11 16.13 2

Only market information 6 8.06 3

Grand Total 62

Source: Primary Data

From the above table, it is observed that 62 respondents are availing government

assistance in marketing their products, out of which 70.97% of the respondents are choosing

exhibitions for marketing their products, which are ranked as one. The next government assistance

which is ranked as two is preferential purchase from local units with 16.13%. Only three

respondents (8.06%) are taking Government assistance for getting market information.

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4.3 Marketing of the products

S. No. Market of the Products through Total Percentage Ranking

1 Whole sales / Retailers 55 50.46 1

2 Directly to end users 39 35.78 2

3 Agents & Distributors 13 11.93 3

4 Developmental Corporations 2 1.83 4

Grand Total 109

Source: Primary Data

It is observed from the above table that women entrepreneurs are marketing their

products through dealers and retailers; they ranked this aspect as number one. This may be

because of the reason that women entrepreneurs mostly depend on dealers and retailers,

unable to manage solely and independently. 35.78% of the respondents are marketing their

products directly by taking the help of their family members who ever are helping them in

the business. 11.93% women entrepreneurs are depending on agents and distributors and

ranked as 3 by them. 1.83% of the respondents are depending on developmental

corporations, which is ranked as 4 by them. It shows that women entrepreneurs are finding

their own way instead of using Government developmental activities. Even

though government is announcing so many schemes to attract women entrepreneurs,

governmental activities and assistance are in the budding stage, reaching to the target

group is very less when compared to other ways of marketing products.

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Table 4.4 Types of Incentives Availing from Government

Product Details Types of Incentives availing from

Govt.

Response

Percentage

Manufacturing

(78)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

38

43

66

27

51

48.72

55.13

84.62

34.62

65.38

Service (3)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

1

2

3

1

2

33.33

66.67

100.00

33.33

66.67

Trade (20)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

10

11

17

7

13

50.00

55.00

85.00

35.00

65.00

Any Other (8)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

4

4

7

3

5

50.00

50.00

87.50

37.50

62.50

Source: Primary data

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From the above table it is observed that depending upon the nature of enterprise respondents are going

to concessional power tariff with 84.62% from manufacturing sector, 100% from service sector, 85%

from trading related activities and 87.5% from any other category. Out of 109 respondents, 51

respondents from manufacturing, 2 respondents from service sector, 13 respondents from trading

and remaining 5 respondents from any other category are going for power subsidy, which is a major

operational problem of almost all the respondents in all the three regions.

4.5 Type of Products and Government assistance

Product Details

Types of Incentives availing from

Government

Response

Percentage

Consumer Goods (26)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

13

14

22

9

17

50.00

53.85

84.62

34.62

65.38

Industrial Goods (65)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

32

36

55

23

42

49.23

55.38

84.62

35.38

64.62

Intermediate Goods

(11)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

5

6

9

4

7

45.45

54.55

81.82

36.36

63.64

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Mineral (7)

Applied for Power and Capital

Subsidies

Central or State subsidy

Concessional Power Tariff

KVIB

Power Subsidy

3

4

6

2

5

42.86

57.14

85.71

28.57

71.43

Source: Primary Data

From the above table it is observed that 22 respondents from consumer goods industry, 55

respondents who are dealing with industrial goods, 9 respondents dealing with intermediate

goods, 6 respondents dealing with mineral based ventures are availing concessional power tariff.

Out of total 109 respondents, 17 respondents dealing with consumer goods, 42 respondents dealing

with industrial goods, 7 respondents dealing with intermediate goods, 5 respondents dealing

with mineral based ventures are availing power subsidy.

4.6 Multiple Responses of Types of incentives

Types of Incentives availing from Govt.

Responses

(109)

Percentage

Applied for Power and Capital Subsidies 53 48.62

Power and Water Subsidy 60 55.05

Concessional Power Tariff 71 65.14

KVIB 38 34.86

Power Subsidy 83 76.15

Source: Primary Data

From the above table it is observed that out of total 109 respondents 53 respondents applied for

power and capital subsidies, 60 respondents applied for power and water subsidy, 71 respondents

availing concessional power tariff, 38 respondents availing incentives given by KVIB and 83

respondents are availing power subsidy by women entrepreneurs of sample study. The

Government of India and other Ministries from time to time announcing various incentives

and schemes to foster women entrepreneurship, respondents from the sample study are going

only for the above said schemes, even though the Government has given 27 schemes to promote

women entrepreneurship.

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4.7 Region wise Incentives availed

Types of Incentives

availing from Govt.

Responses

Kurnool

Ranga Reddy

Visakhapatna

m

Total (109)

Respo

nses

Perce

ntage

Respo

nses

Perce

ntage

Respo

nses

Perce

ntage

Respo

nses

Perce

ntage

Applied for Power and

Capital subsidies

36

67.92

13

24.53

4

7.55

53

48.62

Power and Water

subsidy

29

48.33

29

48.33

2

3.33

60

55.05

Concessional Power

Tariff

27

38.03

29

40.85

15

21.13

71

65.14

KVIB 0 0.00 0 0.00 38 100.0 38 34.86

Power Subsidy 34 40.96 30 36.14 19 22.89 83 76.15

Source: Primary Data

From the table 5.11 it is observed that out of total 109 respondents 53 respondents applied for

power and capital subsidy, of which 36 respondents from Kurnool, 13 respondents from Ranga

Reddy region, 4 respondents are from Visakhapatnam region. Out of total 109 respondents, 34

respondents are from Kurnool region out of 32 respondents, 30 respondents are availing power

subsidy from Ranga Reddy region, out of total 38 respondents from Visakhapatnam region 19

respondents applied for power subsidy.

Table 4.8 Regions wise Subsidies, Incentives and Concessions

Regions

Subsidies / Incentives /

Concessions

Total

Yes No

District

Kurnool

Count 36 3 39

% within District 92.31% 7.69%

Ranga Reddy

Count 27 5 32

% within District 84.38% 15.63%

Visakhapatnam

Count 33 5 38

% within District 86.84% 13.16%

Total

Count 96 13 109

% within District 88.07% 11.93%

Source: Primary data

From the table it is observed that out of total 109 respondents, 39 respondents are from Kurnool

region, of which 36 respondents (92.31%), out of 32 respondents, 27 respondents (84.3%), from

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Ranga Reddy region, out of 38 respondents, 33 respondents from Visakhapatnam region are

availing Government subsidies, incentives and concessions.

5.0 Conclusions

With the advent of new technology, liberalization, globalization and privatization the scope for

women entrepreneurship is more. However, women entrepreneurship in Andhra Pradesh is

still in the budding stage. Most of the women entrepreneurs are not aware the programmes,

incentives and schemes provided by the Government and institutions supporting women

entrepreneurship. There is a need to redefine the role of Government and Institutions, which

are providing women entrepreneurship.

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APJEM

Arth Prabandh: A Journal of Economics and Management

Vol. 4 Issue 2 February 2015, ISSN 2278-0629 , pp. 205-229

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