A Study on the Critical Business Problems Faced by Women … · 2019-06-12 · problems they face...

Periyar Journal of Research in Business and Development Studies, 4(1), January-June 2019, ISSN 2456-0987(O)

Special Issue: Proceedings of paper(s) presented in National Conference 118

Bi-annual e-Journal published by Periyar Management and Computer College, New Delhi

A Study on the Critical Business Problems Faced by Women Entrepreneurs in

Rajasthan Lakshmi, Research Scholar, University of Kota, Rajasthan

Hariom Gurjar, Periyar Management and Computer College, Delhi

Abstract

Entrepreneurship has been an important channel for the growth of socio-economic environment of any

nation as it boosts employment, imparts in manufacturing and exports, generates revenue and eradicates

poverty. Although entrepreneurship is a tough task for women, but women entrepreneurs are playing vital

role in the Indian economy. Rate of the development of women entrepreneurship is very poor, if

compared with other well-developed economies. In India, women entrepreneurs face number of obstacles

during start-up stage and running up of their enterprise.

These critical issues need to be addressed properly by the government so that women entrepreneurs can

participate in the development of the economy. Therefore, this paper tries to study the business problems

faced by women entrepreneurs in Rajasthan during start-up and running up of their enterprise. The study

also throws the light on the lack of adequate information about the schemes of financial institutions for

women entrepreneurs and lack of enthusiasm of officials to finance women entrepreneurs.

Keywords: Women entrepreneurship, business obstacles

1. Introduction India is a vast country with an estimated population of about 1.21 billion of which nearly half are women.

Entrepreneurship amongst Indian women has gained good momentum in recent time. Several programs

are being piloted to develop the status of women, their ingress to resources and so on. But the outlaying

interest of government has been seen in finding a well-structured and realistic idea to encourage women

entrepreneurship. Despite the shared characteristics, gender-based differences have been found to

influence both business start-up and performance (e.g. Greene et al., 2003; Loscocco and Leicht1993;

Lerner and Almor 2002). This reality influenced the author not only to study the field of entrepreneurship

following a general and theoretical approach but to focus on the financial obstacles which women

encounter when engaging in entrepreneurship.

Finance is most significant part of a business which cannot be ignored at all. So, it becomes essential for

women entrepreneurs to appeal financial organizations when the requirement arises. Many researchers

made efforts to comprehend the behavior of financial organizations in granting financial provision to

women entrepreneurs. Interpreting to a statement by the UNIDO, “despite proofs that woman’s loan

repayment rates are higher than men's, women still face more difficulties in obtaining credit," often due

to prejudiced attitudes of banks and informal lending groups (UNIDO, 1995).

Today, women have not only safely entered into job situations, but have also immersed as professionals

and executives in many fields. They have found acceptance in the family as well as society. However,

their entry into the fiercely competitive business world has a great challenge. Besides, family and social




problems they face problems in raising both working capital finance and long term finance. Rao. 2002, in

his study, gave higher rank to financial problems followed by marketing, production, and social

problems.

2. Literature Review

A number of studies have been conducted in India and aboard focusing on problems faced by women

entrepreneurs including financial one. In the following paragraphs, a review of studies relating to

problems and challenges of women entrepreneurs has been done.

(Soundarpandian,et-al,1999) recommended that for entrepreneurship growth in India, there was a

superior need to accentuate on research relating to process and augmentation of entrepreneurship. The

complications of women entrepreneur are listed as, rigid competition from male entrepreneurs, High

price of raw materials required, Financial limitations, Managerial constraints, Technical complications,

Low ability to bear risks, Low level of encouraging family background, Lack of ground-breaking

initiative.

Yadav, while studying women entrepreneurs of Saurashtra region in 1999 found that 50 % women

entrepreneurs were managing their business successfully. None of them utilized 100 % production

capacity. It was found that education; religion, age and marital status had a significant impact on

entrepreneurship. 90% of the women responded that it was very difficult to start and manage the business

venture as a woman independently. Other problems reported by them were related to financing and

marketing. Lack of training was also one of the major constraints and the respondents suggested setting

up of mobile training centers.

Rao, 2002 studied the problems of women entrepreneurs in Chennai. Among the socio- personal

problems, 70 % faced lack of family and community support. 60 % had managerial experience.

Production problem in the form of availability of land, plots, and premises was faced by 70 %

respondents. Lack of knowledge about marketing the product was the major problem faced by 76 % of

the respondents. 74 % faced financial problems regarding loan and subsidy whereas inadequate

government assistance was reported as a problem by 70 %respondents. The ranking given to problems by

selected respondents was as Financial problems, Marketing problems, Production problems, Socio-

Personal problems, problems of Government Assistance and Managerial problems.

Managerial problems among working female headed households were studied by Mehrotra, in 2003. The

sample of this research study comprised of 120 working families selected through purposive random

sampling procedure. It was observed that majority of the respondents from both rural and urban areas

were highly affected by the general decline in financial position. A large majority, i.e., 80 % were always

under constant financial stress in spite of coping strategies adopted by them. Rural families felt that these

tasks were very tiring and stressful due to the non-availability of paid help. Further, 75 % of urban and 82

% rural families were either always or sometimes affected by psychological problems.

Problems of women entrepreneurs were studied by Chhichhia, in 2004.The information was collected by

questionnaire from 40 women entrepreneurs who had invested Rs 2 to 15 lakhs in their enterprises. It was

found that all entrepreneurs had some or the other problem. 91 % said that there were lack of training, 79

% entrepreneurs reported that they had family responsibilities and financial pressure, 54 % said that time

spent did not give the worthy outcome. 35 %said that there was a need of modification from time to time.

72 % reported that they had to struggle more to survive in the market. 93 % entrepreneur did not use the

internet in their enterprise, 3 % had a complete organized computer set up in their enterprises.




Kapadia and Barodia in 2004 while studying the problems of women entrepreneurs quoted that in order

to improve living conditions, developing capabilities of women for self-employment had become

essential. Women were often the main economic agents to ensure the survival of a poor family. Hence,

women get empowered if they are led towards entrepreneurship. They also reported that there were

successful women entrepreneurs today heading enterprises like electronics, multimedia, garment industry

and so on. They also suggested that women entrepreneurs had to face many problems.

Rao, K in 2004 conducted a survey in Rajkot and collected information by questionnaire method from 25

entrepreneurs from lower middle class. Families were grouped into three –

• Group -1 Education (Tuition and Play house)

• Group -2 Health and physique (Beauty Parlor)

• Group -3 Miscellaneous.

The survey showed that educational background was good for 28 % in group1, 24 % in group 2 and 48 %

in group 3. Age was no bar to start any enterprise. Most of the undergraduate women entrepreneurs in the

lower middle class had started a business due to some problems like large family size or disability of

male earner. Most of the women entrepreneurs in all groups had arranged their own funds, borrowing

from friends or relatives but did not approach any financial institution.

Jobanputra, in 2004 highlighted those problems that followed entrepreneurs like shadow. If a women

entrepreneur solves one, a few more crop up. It was suggested that a successful entrepreneur has to be

vigilant and work as a tactful manager.

While another study by Nayyar et al. (2007) suggested that Poor location of the unit, tough competition

from larger and established units, and lack of transport facility, lack of rest and sleep and non-availability

of raw material were the significant problems faced by entrepreneurs. The factors cause to these

problems were; difficulty in affording own vehicle, not being popular, a heavy schedule of work and long

working hours.

Vatharkar (2012) examined the problems faced by women entrepreneurs in Pune district at various levels

in their journey as entrepreneurs and also found the factors motivating these women to become an

entrepreneur. The study found that women entrepreneurs face lots of problems at start-up as well as

operating stage like, role conflict, lack of motivation, lack of finance, maintaining the balance between

work and family life, discriminating treatment, understanding government rules, and regulations, etc.

Further, it is noted that these women entrepreneurs are both “willing” as well as “forced” entrepreneurs.

For some of them, the factor motivating to start their own enterprise is to support the family financially,

while for some of them it is the urge to be economically independent.

Research on problems faced by women entrepreneurs has revealed that women entrepreneurs face

specific start-up problems as they are trying to shift their traditional role by venturing into the

entrepreneurial world. So, the researcher has tried to identify these problems and with these objective

problems relating to finance have been identified, one relating to start-up and second faced in running up

of the enterprise. An attempt is made to test the following hypothesis-“There is no significant difference

between the views of women entrepreneurs according to different demographic factors for the main

financial problems to start and run their enterprises”.

3. Methodology

The present study was conducted among women entrepreneurs in Rajasthan. The enterprise included

from both urban and rural areas. Information was gathered from 190 enterprises. For the selection of




enterprises, different districts are considered. Three districts namely, Jodhpur, Bhilwara, and Udaipur

were selected for the survey as these constitute 70 % about percent of total MSM enterprises of Rajasthan

A sample comprising of 190 respondents from almost all areas of these three districts were approached

by using the “Purposive and snow ball” sampling techniques. The respondents and officials of DIC‟s and

Banks were requested to furnish the names and addresses of women entrepreneurs they know. The

responses of the respondents from various districts of Rajasthan were analyzed using Chi-Square

technique using different criteria such as the type of activity, district, age, education, the form of

organization, residential background and family structure of the respondents.

4. Data Analysis Tools

For analyzing the financial problems faced by women entrepreneurs, two separate types of questions

were prepared, one relating to start-up obstacles and second relating to the problems faced in running up

of the enterprise. The respondents were asked to mark their views as a major obstacle, minor obstacle,

and no obstacle, on each of the problems faced by them and their responses were given weights as 3, 2,

and 1 respectively. The data collected has been analyzed by use of percentages and Chi-square test.

The first question raised to women entrepreneurs was regarding start-up finance problem. The data

obtained in this regard is given in table 1. It shows that39.2 percent women entrepreneurs have faced the

problem in obtaining initial investors and accept it as a major obstacle, 24.3 percent accept it as a minor

obstacle and 36.5 percent responded that it is no obstacle. The activity-wise information further shows

that the problem of initial investors is more felt by respondents pursuing manufacturing and trading

activities. In the manufacturing sector, 43.8 percent of respondents find it a major obstacle, 27.1 percent

minor obstacle and for 36.5 percent initial investors is no obstacle. In the manufacturing sector, the

entrepreneurs need more capital to invest in plant and machinery and more space for a factory. In the

trading sector, 40 percent women entrepreneurs feel major difficulty in obtaining initial investors, 20

percent feel it a minor problem and 40 percent have not faced any problem in obtaining initial investors.

In the service sector, women entrepreneurs relatively feel less painful the difficulty of obtaining capital to

start their enterprise. As information in the table reveals that for 35.8 percent women entrepreneurs

obtaining initial investors is a major impediment, for 25.9 percent minor problem and for 38.3 percent no

problem. The table also shows the value of Chi-square which is insignificant at 5 percent level of

activity. It indicates that no significant difference in views of women entrepreneurs is found in respect of

this problem across type of activity undertaken by them.

Table 1 Finding the Investors

Type of Activity Major obstacle Minor obstacle No obstacle

Frequency Percent Frequency Percent Frequency Percent

Service 29 35.8 21 25.9 31 38.3

Trading 24 40 12 20 24 40 Chi-Square df

2.177a

Manufacturing 21 43.8 13 27.1 15 29.2 4

Total 74 39.2 46 24.3 70 36.5 Asy. Sig.=.703

Districts

Jodhpur 27 38.6 16 22.9 27 38.6 Chi-Square df

.563a

Bhilwara 21 36.8 15 26.3 21 36.8 4

Udaipur 26 41.9 15 24.2 22 33.9 Asy. Sig.=.967




Total 74 46 70

Education

Below Matric 3 37.5 3 37.5 2 25

Matric 13 38.2 7 20.6 14 41.2

Senior Secondary 11 52.4 3 14.3 8 33.3 Chi-Square df

4.297a

Graduate 31 23.9 24 28.6 29 34.5 8

Post-Graduate 16 38.1 9 21.4 17 40.5 Asy. Sig.=.829

Family Structure Chi-Square df

.386a

Nuclear 46 40 29 25.2 40 34.8 2

Joint 28 37.8 18 23 29 39.2 Asy. Sig.=.824

Form of Organisation Chi-Square df

4.165a

Sole Trader 64 40.5 34 21.5 60 38 2

Others 10 32.3 12 38.7 9 29 Asy. Sig.=.125

Background of Respondents Chi-Square df

4.715a

Urban 45 34.1 35 26.5 52 39.4 2

Rural 29 50.9 12 19.3 17 29.8 Asy. Sig.=.095

The table further reveals the district-wise information about problems of women entrepreneurs in obtaining initial funding. It is a major obstacle for 41.9 percent of women entrepreneur in Bhilwara district, 38.6 percent in Jodhpur district and 36.8 percent in Udaipur district. It is a




minor problem for 26.3 percent of respondents in Udaipur district, 24.2 percent in Bhilwara

district and 22.9 percent in Jodhpur district. The value of Chi-square is insignificant at 5 percent

level of activity. Education-wise information further reveals that almost equal proportion of

women entrepreneurs (approximately 38 percent) face the obstacle of initial investors as major

problem across different levels of education except senior secondary respondents, for 52.4

percent respondents it is a major obstacle. Making arrangement for initial investors is a minor

problem for 37.5 percent of below matric, 28.6 percent of graduate, 21.4 percent of post-

graduate, 20.6 percent of matric and 14.3 percent of senior secondary women entrepreneurs. The

result of chi-square- test reveals that there is no significant dependence between these two

variables. Family structure wise information shows that 40 percent respondents coming from

nuclear family and 37.8 percent from joint family express that they felt the obstacle in obtaining

initial investors and term it as a major obstacle. And 25.2 percent nuclear family respondents and

23 percent joint family respondents express that initial investors arrangement is a minor obstacle

for them and with little efforts they overcome this barrier. The result of chi-square- test reveals

that there is no significant dependence between these two variables. From the table it is also revealed that 40.5 percent of women entrepreneurs managing their enterprise as sole trader and 32.3 percent other than sole trader express they felt major obstacle in obtaining initial investors. As relatively more sole traders feel this start-up obstacle, is may be due to limited resources of an individual. For entrepreneurs other than sole trader it is a minor

obstacle for 38.7 percent of respondents. The result of chi-square- test (Chi-square=4.165a, df=2,

P=0.125) revealed that there is no significant difference between these two variables. The table also shows that difficulty of obtaining initial investors was more felt in respondents of rural origin as 50.9 percent of them expressed that they felt it as a major problem and only 34.1 percent of urban origin respondents expressed it as a major problem. For 26.5 percent of urban origin respondents and 19.3 percent of rural origin respondents it was a minor hindrance. The

result of chi-square- test (Chi-square=4.715a, df=2, P=0.095) reveals that there is no significant

dependence between these two variables.

Reluctance of Financial Institutions in Granting Credit Facilities is another problem of women

entrepreneurs. Table 2 which presents the survey data indicates that 16.4 percent respondents

face the problem of reluctance of financial institutions in granting credit facilities to a large

extent and another 24.3 percent face this problem to some extent. It is also clear from the table

that 59.3 percent of respondents are not facing this problem in any form. Activity-wise

information reveals that 20 percent respondents in trading sector, 17.3 percent in service sector

and 10.4 percent in manufacturing sector face this problem to a large extent and find the

behaviour of officials of financial institutions discouraging. It is a problem to some extent for 35

percent of respondents in trading sector, 25 percent in manufacturing sector and 16 percent in

service sector. The problem is more evident in trading sector and manufacturing sectors. The

value of Chi-square (Chi-square=9.696a, df=4, P=0.046) is significant at 5 percent level of

activity. It indicates that a significant dependence is found between these two variables. The

table further reveals district-wise information in respect of this problem. The behaviour of

officials of financial institutions is perceived to be discouraging by 19.4 percent respondents in

Udaipur district, 15.8 percent in Bhilwara district and 14.3 percent in the Jodhpur district. It is

considered as a problem to some extent by 25.8 percent, 24.3 percent and 22.8 percent of

respondents in Udaipur district, Jodhpur district and Bhilwara district respectively.




Table 2 Credit Line availability

Type of Activity Major obstacle Minor obstacle No obstacle

Frequency Percent Frequency Percent Frequency

Percent

Service 14 17.3 13 16 54 66.7

Trading 12 20 21 35 27 45

Manufacturing 5 10.4 13 25 31 64.6

Total 31 16.4 47 24.3 112 59.3

Districts

Jodhpur 10 14.3 17 24.3 43 61.4

Bhilwara 9 15.8 14 22.8 35 61.4

Udaipur 12 19.4 16 25.8 34 54.8

Education

Below Matric 1 12.5 3 25 5 62.5

Matric 3 8.8 10 29.4 21 61.8

Senior Secondary 5 23.8 8 38.1 8 38.1

Graduate 13 15.5 22 26.2 49 58.3

Post-Graduate 9 21.4 4 9.5 29 69

Family Structure

Nuclear 17 14.8 32 28.8 66 57.4

Joint 14 18.9 15 18.9 46 62.2

Form of Organisation

Sole Trader 26 16.5 38 23.4 95 60.1

Others 5 16.1 9 29 17 54.8

Background of Respondents

Urban 26 19.7 32 23.5 75 56.8

Rural 5 8.8 15 26.3 37 64.9

Chi-Square df

9.696a 4

Asy.

Sig.=.046

Chi-Square df

.948a 4

Asy.

Sig.=.918

Chi-Square df

10.887a 8

Asy.

Sig.=.208

Chi-Square df

2.110a 2

Asy.

Sig.=.348

Chi-Square df

.460a 2

Asy.

Sig.=.795

Chi-Square df

3.468a 2

Asy.

Sig.=.177

The value of Chi-square (Chi-square=.948a, df=4, P=0.918) is insignificant at 5 percent level of

activity. It indicates that no significant dependencies found between these two variables.

Education-wise information further reveals that 23.8 percent senior secondary, 21.4 percent post-

graduate, 15.5 percent graduate, 12.5 percent below matric and 8.8 percent




matriculate respondents perceive reluctance of financial institutions in granting loan as a major

problem. It is perceived as a minor problem by 38.1 percent senior secondary, 29.4 percent

matriculate, 26.2 percent graduate, 25 percent below matric and 9.5 percent post-graduate

respondents. The value of Chi-square (Chi-square=10.887a, df=8, P=0.208) is insignificant at 5

percent level of activity. It indicates that no significant dependencies found between these two

variables.

Family-structure wise information reveals that for 18.9 percent of joint family and 14.8 percent

of nuclear family respondents, reluctance of financial institutions in granting loan is a problem to

large extent. The table shows that 27.8 percent respondents hailing from nuclear family and 18.9

percent hailing from joint family perceive that this is problem to some extent for women

entrepreneurs. The value of Chi-square (Chi-square=2.110a, df=2, P=0.348) is insignificant at 5

percent level of activity. It indicates that no significant association is found between these two

variables. It is evident from the table that 16.5 percent of women entrepreneurs who are pursuing

their economic activities as sole trader and 16.1 percent other than sole trader perceived

„reluctance of financial institutions in granting loans‟ is a problem to large extent. While 29

percent other than sole trader and 23.4 percent sole trader perceive that this is a minor problem

for women entrepreneurs. The value of Chi-square (Chi-square=.460a, df=2, P=0.795) is

insignificant at 5 percent level of activity. It indicates that no significant association is found

between these two variables. The table further shows that 19.7 percent of urban origin and 8.8

percent of rural origin respondents perceived that they face this problem to a large extent.

Reluctance of financial institutions in granting loan is a minor problem for 26.3 percent of rural

origin and 23.5 percent of urban origin respondents. The value of Chi-square (Chi-

square=3.468a, df=2, P=0.177) is insignificant at 5 percent level of activity. It indicates that no

significant association is found between these two variables.

Lack of knowledge about different financial schemes and facilities available to women

entrepreneurs is also considered as a major hindrance for them as they are unable to take the

benefit of these schemes and facilities. Table 3 highlights that 40.7 percent of the respondents are

of the view that in the process of development of entrepreneurship among women they face the

problem of, „lack of awareness of financial schemes and facilities available for them‟ to a large

extent. 33.9 percent of respondents reveal that they face the problem of lack of awareness of

schemes and facilities only to some extent in their way of success. It is clear from the above

information that about 74.6 percent of respondents are not able to get full benefits of various

financial schemes and facilities available to them due to problem of „lack of awareness about the

various financial schemes and facilities‟.







Table 3 Reach to Government schemes:

Type of Major obstacle Minor obstacle No obstacle

Frequenc Percen Frequenc Percen Frequenc

Percen

Activity

y t y t y

t

Service 32 39.5 21 25.9 28 34.6

Trading 20 33.3 33 55 8 11.7

Manufacturin 25 52.1 10 20.8 13

27.1

g

Total 77 40.7 64 33.9 48 25.4

Districts

Jodhpur 26 37.1 25 35.7 19 27.1

Bhilwara 20 35.1 22 38.6 15 26.3

Udaipur 31 50 17 27.4 14 22.6

Education

Below Matric 3 37.5 4 50 1 12.5

Matric 12 35.3 18 52.9 4 11.8

Senior 12 57.1 8 33.3 2

9.5

Secondary

Graduate 36 42.9 21 25 27 32.1

Post- 14 33.3 14 33.3 14

33.3

Graduate

Family Structure

Nuclear 49 42.6 36 31.3 30 26.1

Joint 28 37.8 28 37.8 19 24.3


Sole Trader 67 42.4 54 34.2 37 23.4

Others 10 32.3 10 32.3 12 35.5


Urban 52 39.4 46 34.8 34 25.8

Rural 25 43.9 18 31.6 15 24.6

Chi- df

Square

21.374a 4

Asy.

Sig.=.000

Chi- df

Square

3.479a 4

Asy.

Sig.=.481

Chi- df

Square

16.179a 8

Asy.

Sig.=.040

Chi- df

Square

.874a 2

Asy.

Sig.=.646

Chi- df

Square

2.169a 2

Asy.

Sig.=.338

Chi- df

Square

.343a 2

Asy.

Sig.=.842




It may have happened due to inadequate dissemination of information by appropriate authorities.

It may be inferred from the above information that various schemes offered by government,

public sector banks and other financial institutions are not availed by the deserving women

entrepreneurs. The table also shows that 25.4 percent of respondents dont consider that this lack

of awareness about financial schemes is a problem as many of them depend on their own source

of finance. Activity-wise information shows that 52.1 percent women entrepreneurs of

manufacturing sector, 39.5 percent of service sector and 33.3 percent of trading sector are facing

the problem of unawareness of financial schemes and facilities to a large extent and 55 percent in

trading sector, 25.9 percent in service sector and 20.8 percent in manufacturing sector accept that

they face this problem only to some extent. Chi-square test is performed to test the null

hypothesis that there is no association between the problem of unawareness of financial schemes

and facilities available to women entrepreneurs and type of activity undertaken by them. The

value of Chi-square (Chi-square=21.374a, df=4, P=0.000) is significant at 5 percent level of

activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted. It shows that

there is significant association between the problem of lack of awareness of financial schemes

and facilities available to women entrepreneurs and type of activity undertaken by them. Women

entrepreneurs doing economic activity in trading sector are more ignorant in respect of financial

schemes and facilities which may have jeopardised their success as an entrepreneur. District-wise information shows that 50 percent respondents in Udaipur district, 37.5 percent in

Jodhpur district and 35.1 percent in Bhilwara district felt the problem of lack of awareness of

financial problem to a large extent. While 38.6 percent in Bhilwara district, 35.7 percent in

Jodhpur district and 27.4 percent in Udaipur district feel this unawareness is a minor problem as

they expressed that they face this problem only to some extent. The value of Chi-square (Chi-

square=3.479a, df=4, P=0.481) is insignificant at 5 percent level of activity. It indicates that there

is no significant difference in the views of respondents in respect of problem of lack of

awareness of financial schemes and facilities across district of respondents. Education-wise

information shows that 57.1 percent senior secondary, 42.9 percent graduate, 37.5 percent below

matriculate, 35.3 percent matriculate and 33.3 percent post-graduate face this problem to a large

extent. The table further shows that 52.9 percent matriculate 50 percent below matric, 33.3

percent senior secondary and post-graduate each and 25 percent graduate face this problem only

to some extent. The value of Chi-square (Chi-square=16.179a, df=8, P=0.040) is significant at 5

percent level of activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted.

It shows that there is significant difference in the views of respondents in respect of the problem

of lack of awareness of financial schemes and facilities available to women entrepreneurs‟

across their level of education.




The table further highlights that 42.6 percent of women entrepreneurs hailing from nuclear

family and 37.8 percent from joint family expressed that lack of awareness of financial schemes

and facilities is a problem for them to large extent. For 37.8 percent of women entrepreneurs

from joint family and 31.3 percent of nuclear family it is a problem only to some extent. The

value of Chi-square (Chi-square=.874a, df=2, P=0.646) is insignificant at 5 percent level of

activity. Hence null hypothesis is accepted which indicates that there is no significant association

between these two variables. Women entrepreneurs (42.4 percent) doing business as sole trader

and 32.3 percent other than sole trader felt this is a major problem for them. It happens to be a

minor problem for 34.2 percent sole traders and 32.3 percent other than sole traders. The value of

Chi-square (Chi-square=2.169a, df=2, P=0.338) is insignificant at 5 percent level of activity.

Hence null hypothesis is accepted which indicates that there is no significant association between

these two variables. In the table origin of background wise information shows that 43.9 percent

respondents of rural origin and 39.4 percent of urban origin express they face this problem to a

large extent while 34.8 percent or urban origin and 31.6 percent of rural origin recognised that

they face this problem to some extent. The value of Chi-square (Chi-square=.343a, df=2,

P=0.842) is insignificant at 5 percent level of activity. Hence null hypothesis is accepted which

indicates that there is no significant relationship between these two variables.

Next problem considered under study was shortage of finance. The responses in this regard are

given in table 4. It shows that out of 190 sample population surveyed, 27.5 percent women

entrepreneurs are facing the problem of shortage of working capitalto a large extent, 32.8 percent

are facing this problem only to some extent considering it as minor problem and for 39.7 percent

finance is not posing any problem in their entrepreneurial adventure. Activity-wise information

reveals that 38.3 percent women entrepreneurs of trading sector, 29.2 percent of manufacturing

sector and 18.5 percent in service sector are facing the problem of shortage of working capitalto

a large extent and expressed it as their major problem. This problem is considered a minor

problem by 50 percent respondents of manufacturing sector, 28.3 percent of trading sector and

25.9 percent service sector and for remaining 55.6 percent women entrepreneurs of service

sector, 33.3 percent of trading sector and 20.8 percent of manufacturing sector finance is not a

problem in any form.




Table 4 Shortage of Working Capital



Percen

Activity

y t y t y

t

Service 15 18.5 21 25.9 45 55.6

Chi-

Trading

23 38.3 18 28.3 20 33.3 df

Square

Manufacturin 14 29.2 24 50 10 20.8 20.893a 4

g

Total

52 27.5 63 32.8 75 39.7

Asy.

Sig.=.000

Districts

Chi-

Jodhpur

20 28.6 21 28.6 30 42.9 df

Square

Bhilwara 14 24.6 22 38.6 21 36.8 1.540a 4

Udaipur

18 29 20 32.3 24 38.7

Asy.

Sig.=.819

Education

Below Matric 2 25 5 50 2 25

Matric 12 35.3 8 23.5 14 41.2

Senior 9 42.9 9 42.9 3

14.3

Chi- df

Secondary

Square

Graduate 22 26.2 28 33.3 34 40.5 12.311a 8

Post- 7 16.7 13 31 22

52.4

Asy.

Graduate

Sig.=.138

Family Structure Chi-

df

Square

Nuclear 29 25.2 38 33 48 41.7 .881a 2

Joint

23 31.1 25 32.4 27 36.5

Asy.

Sig.=.644

Form of Organisation Chi-

df

Square

Sole Trader 42 26.6 46 29.1 70 44.3 9.487a 2

Others

10 32.3 17 51.6 5 16.1

Asy.

Sig.=.009

Background of Respondents Chi-

df

Square

Urban 38 28.8 40 30.3 54 40.9 1.259a 2

Rural

14 24.6 23 38.6 21 36.8

Asy.

Sig.=.533




Chi-square test is performed to test the null hypothesis that there is no significant association

between the problem of shortage of working capitaland type of activity undertaken by women

entrepreneurs. The value of Chi-square (Chi-square=20.893a, df=4, P=0.000) is significant at 5

percent level of activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted.

It shows that there is significant difference in the views of women entrepreneurs in respect of this

problem across type of activity undertaken by them.

District-wise information reveals that in Jodhpur district, equal proportion (28.6 percent) of

women entrepreneurs accepted that they face the problem of shortage of working capitalto a

large extent and to some extent. In Udaipur district, shortage of working capitalis a major

problem for 29 percent, minor problem for 32.3 percent and no problem for 38.7 percent of

women entrepreneurs. In Bhilwara district, for 24.6 percent of respondents are facing the

problem of shortage of working capitalto a large extent, though 38.6 percent accepted that

finance is a problem but only to some extent. The value of Chi-square (Chi-square=1.540a, df=4,

P=0.819) is insignificant at 5 percent level of activity. Hence, null hypothesis is accepted which

indicates that there is no significant association between these two variables. Education-wise

information in the table further shows that 42.9 percent senior secondary, 35.3 percent

matriculate, 25 percent below matric, 26.2 percent graduate and 16.7 percent post-graduate are

facing the problem of shortage of working capitalto a large extent. The problem is felt more by

respondents who have not attained good education level. It shows that they are unaware about

financial schemes and unable to find right source of finance. The value of Chi-square (Chi-

square=2.311a, df=8, P=0.138) is insignificant at 5 percent level of activity. It shows that there is

no significant association between these two variables.

Type of family structure wise analysis shows that 31.1 percent of women entrepreneurs hailing

from joint family and 25.2 percent from nuclear family are facing the problem of shortage of

working capitalto a large extent. Almost equal proportion of respondents from nuclear and joint

family are also facing the problem of shortage of working capitalbut to some extent only. The

value of Chi-square (Chi-square=.881a, df=2, P=0.644) is insignificant at 5 percent level of

activity. Hence null hypothesis is accepted which indicates that there is no significant association

between these two variables. Information across form of organisation reveals that 32.3 percent

other than sole trader and 26.6 percent sole trader face the problem of shortage of working

capitalto a large extent and 51.6 percent other than sole trader and 29.1 percent sole trader

accepted shortage of working capitalis a







problem to some extent. The value of Chi-square (Chi-square=9.787a, df=2, P=0.009) is

significant at 5 percent level of activity. Hence null hypothesis is rejected which indicates that

there is significant association between these two variables. 28.8 percent women entrepreneurs of

urban back ground and 24.6 percent of rural background are facing the problem of shortage of

working capitalto a large extent and found it as their major problem while 38.6 percent of rural

background and 30.3 percent of urban background consider shortage of working capitala minor

problem. The value of Chi-square (Chi-square=1.259a, df=2, P=0.533) is insignificant at 5

percent level of activity. Hence null hypothesis is accepted which indicates that there is no

significant difference in the views of women entrepreneurs in respect of this problem across their

residential background.

In some of the studies it has been found that banks, financial institutions generally do not come

forward to provide financial assistance to women borrowers on the ground of their less credit

worthiness and more chances of business failures. So an opinion of women entrepreneurs was

also taken in this regard the same is presented in table 5.

The table shows that only 6.3 percent of sample respondents face the major problem of financial

distrust of women. Another 18 percent though accepted that problem of financial distrust of

women exists but they feel it is a minor problem for them. Problem of financial distrust of

women is not prevalent at high rate as more than three-fourth of women entrepreneurs responded

that they are not facing such problem. This problem is felt more only by women entrepreneurs

who are doing economic activities in trading and manufacturing sectors as 11.7 percent in

trading sector and 4.2 percent in manufacturing sector face the problem of financial distrust of

women to a large extent. Only 3.7 percent of the respondents in service sector confirmed that

such problem exists. 25 percent in manufacturing sector, 23.3 percent in trading sector and only

9.9 percent in service sector face this problem only to some extent. The value of Chi-square

(Chi-square=11.441a, df=4, P=0.022) is significant at 5 percent level of activity. Hence, null

hypothesis is rejected and alternate hypothesis is accepted. It shows that there is significant

association between these two variables i.e. problem of financial distrust of women and type of

activity undertaken by them.




Table 5 Financial Distrust as a woman entrepreneur



Percen

Activity

y t y t y

t

Service 3 3.7 8 9.9 70 86.4

Trading 7 11.7 14 23.3 140 65

Manufacturin 2 4.2 12 25 34

70.8

g

Total 12 6.3 34 18 144 75.7

Districts

Jodhpur 6 8.6 15 21.4 50 70

Gurgoan 4 7 9 15.8 44 77.2

Udaipur 2 3.2 10 16.1 50 80.6

Education

Below Matric 1 12.5 3 37.5 4 50

Matric 2 5.9 14 41.2 18 52.9

Senior 5 23.8 3 14.3 13

61.9

Secondary

Graduate 2 2.4 11 13.1 72 84.5

Post- 2 4.8 3 7.1 37

88.1

Graduate

Family Structure

Nuclear 6 5.2 22 19.1 88 75.7

Joint 6 8.1 12 16.2 56 75.7


Sole Trader 11 7 27 17.1 120 75.9

Others 1 3.2 7 22.6 23 74.2


Urban 9 6.8 19 14.4 105 78.8

Rural 3 5.3 15 26.3 39 68.4

Chi- df

Square

11.441a 4

Asy.

Sig.=.022

Chi- df

Square

2.788a 4

Asy.

Sig.=.594

Chi- df

Square

33.973a 8

Asy.

Sig.=.000

Chi- df

Square

.805a 2

Asy.

Sig.=.669

Chi- df

Square

1.015a 2

Asy.

Sig.=.602

Chi- df

Square

3.862a 2

Asy.

Sig.=.145




District-wise information reveals that 8.6 percent in Jodhpur district, 7 percent in Bhilwara district and 3.2 percent in Udaipur district face the problem of financial distrust of women to a large extent. 21.4 percent respondent of Jodhpur district, 16.1 percent of Udaipur district and 15.8 percent of Bhilwara district face this problem to some extent. The value of Chi-

square (Chi-square=2.788a, df=4, P=0.594) is insignificant at 5 percent level of activity. Hence,

null hypothesis is accepted which indicates that there is no significant association between these two variables. Education-wise information further highlights that a high proportion (23.8 percent) of respondents of senior secondary and 12.5 percent below matriculate face the problem in respect of financial distrust of women to a large extent. While 5.9 percent respondents of matric level of education, 2.4 percent respondents having graduation level education and 4.8 percent post-graduate accepted that financial distrust of women is a problem to large extent. It shows that the problem of financial distrust of women is affecting more to those who have not

attained higher level of education. The value of Chi-square (Chi-square=33.973a, df=8, P=0.000)

is significant at 5 percent level of activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted. It shows that there is significant association between these two variables. 8.1 Percent respondents of joint family and 5.2 percent of nuclear family expressed that they face this problem to a large extent. The problem of financial distrust of women is expressed as minor problem as 19.1 percent women entrepreneurs of nuclear family and 16.2 percent of joint family

face this problem to some extent. The value of Chi-square (Chi-square=.805a, df=2, P=0.669) is

insignificant at 5 percent level of activity. The results indicate that there is no significant association between these two variables. Form of organisation wise information highlights that 7 percent sole trader and 3.2 percent other than sole trader marked that financial distrust of women is a major problem as they face this problem to a large extent while 22.6 percent other than sole trader and 17.1 percent sole traders expressed that it is a minor problem for them and they face it to some extent. The value of Chi-

square (Chi-square=1.015a, df=2, P=0.602) is insignificant at 5 percent level of activity. Hence,

null hypothesis is accepted which indicates that there is no significant association between these two variables. Origin of background wise information shows that 6.8 percent women entrepreneurs of urban origin and 5.3 percent of rural origin face the problem of financial distrust of women to a large extent and 26.3 percent respondents of rural origin and 14.4 percent of urban

origin face this problem to some extent. The value of Chi-square (Chi-square=3.862a, df=2,

P=0.145) is insignificant at 5 percent level of activity. Hence, null hypothesis is accepted which indicates that there is no significant association between these two variables. As revealed above in the study that some of women entrepreneurs face the problem of shortage

of finance. In Indian society, male members of the family held maximum property to their name and women relatively have a very less property and bank balance to their name. So, women face

difficulty in getting loan from financial institutions and banks due to absence of tangible

security.




Table 6 Lack of collateral security against landed fund


Frequenc Perce Frequenc Perce Frequenc Perce

Activity

y nt y nt y nt

Service 13 16 20 24.7 49 59.3

d

Trading

11 18.3 14 23.3 35 58.3 Chi-Square

f

Manufacturing 12 25 10 20.8 26 54.2 1.626a 4

Total

36 19 44 23.3 110 57.7 Asy.

Sig.=.804

Districts

Jodhpur

15 21.4 16 22.9 40 55.7 Chi-Square d

f

Bhilwara 9 15.8 15 26.3 33 57.9 .993a 4

Udaipur

12 19.4 13 21 37 59.7 Asy.

Sig.=.911

Education

Below Matric 3 37.5 1 12.5 4 50

Matric 10 29.4 10 29.4 15 41.2

Senior 4 19 2 9.5 15 71.4 Chi-Square

d

Secondary

f

Graduate 11 13.1 24 28.6 50 58.3 12.064a 8

Post-Graduate 8 19 7 16.7 27 64.3 Asy.

Sig.=.148

Family Structure

Chi-Square d

f

Nuclear 22 19.1 28 24.3 66 56.5 .212a 2

Joint

14 18.9 16 21.6 44 59.5 Asy.

Sig.=.899


Chi-Square d

f

Sole Trader 34 21.5 39 24.7 86 53.8 6.411a 2

Others

2 6.5 5 16.1 24 77.4 Asy.

Sig.=.041


Chi-Square d

f

Urban 25 18.9 31 23.5 77 57.6 .011a 2

Rural

11 19.3 13 22.8 33 57.9 Asy.

Sig.=.994




Table 6 reveals that 19 percent of women entrepreneurs face major problem in the form of lack of collateral security against landed fund. 23.3 percent of women respondents face this problem only to some extent. Activity-wise information reveals that 25 percent women respondents in manufacturing sector, 18.3 percent in trading sector and 16 percent in service sector face this problem to a large extent while procuring finance. The value of Chi-square (Chi-square=1.626a, df=4, P=0.804) is insignificant at 5 percent level of activity. Hence, null hypothesis is accepted which indicates that there is no significant association between these two variables. 21.4 percent women respondents from Jodhpur district, 19.4 percent from Udaipur district and 15.8 percent from Gurgoan district face the problem of lack of collateral security against landed fund. The value of Chi-square (Chi-square=.993a, df=4, P=0.911) is insignificant at 5 percent level of activity. Hence, null hypothesis is accepted which indicates that there is no significant association between these two variables. Education-wise information shows that 37.5 percent below matric education level entrepreneurs, 29.4 percent

matriculate, 19 percent senior secondary and post-graduate each and 13.1 percent graduate face this problem to a large extent. The value of Chi-square (Chi-square=12.064a, df=8, P=0.148) is insignificant at 5 percent level of activity which indicates that there is no significant association between these two variables. Almost equal proportion of respondents hailing from nuclear family (19.1 percent) and joint family (18.9 percent) face the problem of collateral security against landed fund to a large extent. The value of Chi-square is insignificant at 5 percent level of activity. Table 5.11 further highlights that women entrepreneurs who are pursuing their economic activity as sole trader (21.5 percent) relatively face more difficulty in getting loans due of lack of tangible collateral security against landed fund to their name. Only 6.5 percent respondents other than sole traders face this problem. The value of Chi-square (Chi-square=6.411a, df=2, P=0.041) is significant at 5 percent level of activity. Hence, null hypothesis is rejected and alternate hypothesis is accepted. It shows that these two variables are closely associated with each other. 19.3 percent women entrepreneurs of rural origin and 18.9 percent of urban origin face the problem of lack of collateral security against landed fund to a large extent. Almost equal proportion of respondents of urban origin (23.5 percent) and rural origin (22.8 percent) acceptthat they face this problem to some extent. The value of Chi-square is insignificant at 5 percent level of activity. It shows that these two variables are not positively associated. 4 Conclusions There are a number of constraints to women owned businesses that need to be addressed. The present study is an

attempt to examine the various financial obstacles faced by women entrepreneurs during start-up stage and running

up of their enterprise. A survey of 190 enterprises from urban and rural areas of three districts, Jodhpur, Udaipur,

and Bhilwara of Rajasthan State was conducted. The results of the study show that 39.2 percent of sample women

entrepreneurs faced the problem in obtaining initial investors and accepted it as a major obstacle. Activity wise this

problem is more felt in manufacturing and trading sectors. 16.4 percent of Women entrepreneurs feel that financial

institutions show reluctance in granting loan to them. The behaviour of officials of these institutions is found to be

discouraging especially by the respondents doing business in trading and manufacturing sectors. Inadequate

dissemination of information about financial schemes for women entrepreneurs is also felt as a major problem by

40.7 percent of respondents. 27.5 percent of women entrepreneurs are of the view that shortage of working capitalis

a major problem for them. In overcoming these obstacles, there are actions to be taken by government, financial

institutions and policy makers by working closely with women business associations.

Periyar Journal of Research in Business and Development Studies, 4(1), January-July 2019, ISSN 2456-0987(O) 138


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