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CHAPTER IV

DETERMINANTS OF WOMEN ENTREPRENEURSHIP AND

INSTITUTIONAL SUPPORT SYSTEM

Certain communities and individuals have traditional wisdom of

business. They are acquired and inherited through decades from generation

to generation and from individuals to individuals. Entrepreneurs are also

made from socio economic compulsions also. In the case of women,

entrepreneurship is influenced more by external factors because in almost

all societies fair sex is not given a fair deal in different sectors of activities.

Even in the entrepreneurial communities and families this is the case. But

gender bias is nowadays languishing by the spread of modern values of

equality, justice and humanity. Women being the half of the population,

policy makers are trying to ensure their participation in all walks of social

life for effective implementation of programmes and enhanced standard of

living. Education, media and women organizations are empowering the

women with progressive values. Women of the 21st century are more bold

and enterprising to pave way for a new world of progress without gender

discrimination.

Identification of actual factors which influenced the selected

respondents in shaping their business life being a primary objective of this

study it is analyzed in the present chapter in four subtitles as (a) internal

factors (b) external factors (c) support systems and (d) conclusions.

4.1 INTERNAL FACTORS OF ENTREPRENEURSHIP

What accounts for the rise in civilization is not the external

resources such as markets, minerals or factories but the entrepreneurial

spirit which exploits the resources - a spirit found most often among the

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business people. Undoubtedly, the entrepreneurs both in developed and

developing countries have been in the forefront in economic growth,

employment generation, innovation and capital formation.

Entrepreneurs are not born instantaneously. Entrepreneurship is a

highly personal process, emanating from events that decides the starting of

business such as dissatisfaction with the existing job, need for recognition,

gain independence, job security with economic gain etc. Men were drawn

more by money and independence, while women appear to be drawn more

by recognition. A great many of the latter also had chosen the entrepreneur

world because of the compelling urge of wanting to do something positive

in their lives. Their mark in business is accountable for the reasons that

they want (a) new challenges and opportunities for self-fulfillment, (b) to

prove their mettle in innovative and competitive jobs and (c) to change the

balance between their family responsibilities and their business. Women

entrepreneurs in India represent a group of women who have broken away

from the beaten track and are exploring new vistas of economic

participation in different types of industries, tradition as well as non-

tradition. Motivation is a critical factor that leads one towards

entrepreneurship. Apart from this, challenge and adventure to do

something new, liking for business, and wanting to have an independent

occupation are some of the pulls of women. These are the factors that

indicate a relatively deeper commitment to entrepreneurial profession on

the part of entrepreneurs.

To what extent the above mentioned factors and forces were true for

the women entrepreneurs of Thrissur district was explored. The findings of

the study would answer the questions viz., what factors motivated the

women of Thrissur to take up an entrepreneurial career? What were the

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factors behind running their enterprise? Who was the motivating source

for idea generation for setting up their enterprise? Moreover, what

motivated them to select their present line of trade? The findings of the

study would be an eye opener for the new aspiring women entrepreneurs.

At the same time, the finding would also assist in understating the

behavioral aspect of women entrepreneurs and would present a platform

for the training institutes to mould their training packages accordingly.

Though there are internal and external factors critical for venturing

enterprises, internal factors are analysed here at first. The general

observations of several studies reveal that two internal factors influence the

women entrepreneurs in India such as pull factors and push factors. Pull

factors imply, internal urge of individual which encourage women to

become entrepreneurs to satisfy the ego or utilise the environment for that.

They include desire to do something new; need for independence,

availability of finance, concessions and subsidies, etc. Push factors are

those internal compulsions which drive women to become entrepreneurs.

They include financial difficulties, responsibility in the family, unfortunate

family circumstances like death of the husband or father, divorce etc.

However, the influence of this factor on women in becoming entrepreneurs

is low than the former factor. Entrepreneurship is the basic business

acumen of a successful entrepreneur. The degree and quality of

entrepreneurship differ from entrepreneurs to entrepreneurs. However,

there are certain cogent factors. Internal pull and push factors are examined

here initially as following.

4.1.1 Pull factors for Entrepreneurship

Pull factors are internal factors affecting the entrepreneurship. They

are most primary forces which drive an individual to take up business

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ventures, overcoming all inhibiting challenges. In the present analysis pull

factors examined are expectations or ambitions with regard to monetary

income, economic independence, higher social status, active involvement

in life, urge to provide employment to others etc. Table 4.1 highlights

these factors with respect to selected respondent women entrepreneurs of

the study. Respondents were asked to select their first preference from a

list of eight factors given. Factors are ranked in descending order by

putting maximum preferences scored factor to the minimum scored factor.

All respondents had reported that in one way or other internal pull factor

was one of the reasons to start business.

Table 4.1. Pull Factors Influencing Women Entrepreneurship

Sl. No. Ambitions Respondent

(No.)

Share

(%) Rank

1 Earn money 74 37 1

2 Gain independence 32 16 2

3 Encouragement 14 08 5

4 Gain Higher social status 14 07 6

5 Engage Oneself Fully 22 11 4

6 Provide Employment to Others 26 13 3

7 Keep Life Meaningful 14 07 7

8 Others 04 02 8

9 Total 200 100 --

Source: Primary Data

Table 4.1 gives the rank of each factor which influenced the idea to

start a unit. The ambitions for starting a business may vary from person to

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person. When inquired about influencing factor for running their enterprise,

majority (37%) of the entrepreneurs responded to the idea to earn money as

the most important factor to promote their business ventures. Without an

ambition to earn money or profit, running enterprise seems to be

incomplete and useless. Second rank (16%) occupied for the factor to gain

economic independence as a strong urge. To provide employment to others

hold third strongest ambition (13%). To engage oneself fully occupied

secured the next factor followed by encouragement, ambition to gain

higher social status and idea to do something meaningful in life.

4.1.2 Push factors for Entrepreneurship

Push factors are compulsory internal factors dictated to decide

entrepreneurship. Only 86 respondents had told that push factors had

determined their life as entrepreneurs. Women were pushed into business

by economic circumstances or personal fate not visualized altogether. For

instance, the death of the bread winner in the family give rise to the need to

earn a livelihood. Table 4.2 will give the various push factors which

influenced the selected respondents to be entrepreneurs.

Table 4.2 Push Factors for Entrepreneurship

Sl.

No.

Factors Respondent

(No.)

Share

(%)

Rank

1 Compulsion of parents 09 10.5 4

2 Urge to Use Own Professional Skill

or Education

10 11.6 3

3 Unemployment 21 24.4 1

4 Dissatisfaction with Given Job 13 15.9 2

5 Idle Fund 07 08.1 6

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6 To Diversify Economic Interest 06 6.9 7

7 Death of Husband 08 09.3 5

8 Ill Health of Bread Winner 04 04.7 9

9 Divorce 03 03.5 10

10 Others 05 05.8 8

11 Total 86 100 --

Source: Primary Data

It was evident from the Table 4.2 that death of husband was a

critical factor which pushed eight women entrepreneurs to business.

Women entrepreneurs separated from husband were another factor

influenced the origin of enterprises. Ill health of bread winners

necessitated four women to undertake the business of family. However

unemployment, dissatisfaction with given job and urge to use hard earned

skill/education were major reasons to start the business.

Unemployment led serious financial crisis in the family which

forced 21 women to become entrepreneurs. Dissatisfaction with the present

occupation so far pursued persuaded to start their own unit for 13 women.

Diversification of economic interest was another reason for six women for

new enterprises. To make use of idle fund was also a reason to start

business for seven women. Other reasons included compulsion of parents,

educated women to utilize their professional qualification to start business

etc. It is true that internal factors were very critical for starting enterprises

for women entrepreneurs of which pull factors were more significant than

push factors to the selected entrepreneurs.

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4.2 EXTERNAL FACTORS AFFECTING ENTREPRENEURSHIP

External factors influencing entrepreneurship are alien to enterprise

and entrepreneur. As such they are external environments which are not

originating within like (a) facilitating support of institutions, (b) motivation

of peer group, (c) institutional\non-institutional financial assistance, (d)

spacial advantage, (e) societal concurrence and (f) critical factors. For the

establishment and operation of enterprises, external factors are critical to

the extend of determining the success and sustainability of any institution

in the large environment of society including all business undertakings.

4.2.1 Facilitating Factors

Though some entrepreneurs are born, it has also been proved by

foreign and Indian experience that with the right type of training, follow-up

support and assistance, one can develop oneself as an entrepreneur. Table

4.3 explains some facilitating factors, which influenced the entrepreneurial

performance of women entrepreneurs. Among the nine factors given, the

most important factor was asked to be selected by the respondent. The

number of respondents who gave first rank to each factor is presented in

the Table 4.3.

Table 4.3. Facilitating Factors Influencing Women Entrepreneurship

Sl.

No. Factors

Respondents

(No)

Share

(%) Rank

1

Financial assistance from state

government/ financial

corporations/nationalized banks/other

state agencies

62

31 1

2 Financial Assistance from Private

Banks 11 05.5 7

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3 Financial Assistance from Family

Members/Relatives/Friends

09 04.5 8

4

Training or Technical Assistance

from the Government and Non-

government Agencies

14 07.0 5

5 Assistance for Machineries 13 06.5 6

6 Maintaining Ancillary Relations with

Large Firms 07 03.5 9

7 Availability of Skilled Labour 38 19.0 2

8 Enlisting the Support of Dependable 30 15.0 3

9 Any Other Source 16 08.0 4

10 Total 200 100 --

Source: Primary Data

As per Table 4.3, among the facilitating factors which stimulated

entrepreneurs to start business, the first rank was accounted by financial

assistance from the State Government, financial corporations, nationalized

banks and other State agencies. The second facilitating factor was the

availability of skilled labour for business. The support from family

members and other dependable held third rank. Entrepreneurs who were

facilitated by financial assistances from any other source ranked fourth.

Assistance for machineries, financial assistance from banks, maintaining

ancillary relations with large firm, technical assistance from the

Government agencies\ non Government agencies etc were other major

factors enabled the entrepreneurs to start the business. In short, availability

of financial assistance was the key influencing factor of women

entrepreneurship.

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Technical assistance from the government and non government

agencies indicates the training facilities given to women entrepreneurs. The

right type of entrepreneurial training helps to identify and develop the

natural, inherent and potential virtues of the human beings, which are lying

dormant. Hence, it is widely accepted that entrepreneurship can be

developed through well-conceived and well integrated entrepreneurial

training programmes. These policies of the Government as well as of

social reforms have engineered the idea of entrepreneurship development

programmes in India. Training Aid kits form an important accessory to any

trainer involved in conducting entrepreneurial motivation training. Training

facilities have lot of potential for encouraging women entrepreneurship.

With adequate training one feels strong and confident. Out of 200 samples

undertaken for the study, 134 entrepreneurs attended various types of

entrepreneurship training programmes. However only 14 entrepreneurs

had reported training programmes attended as a source of starting business.

Many entrepreneurs attended the training programmes to improve their

skill after the inception of their units.

4.2.2 Motivational Factors to Start the Units

For a woman to become an entrepreneur there must be considerable

motivation either from within herself or from others close to her. Without

strong motivation a woman can not achieve entrepreneurship. In the case

of women entrepreneurs, these motivating factors have to be understood

properly to promote more women to entrepreneurship. Table 4.4 explains

the degree of influence of various external motivating factors to start

business units.

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Table 4.4 External Motivations to Start the Business

Sl.

No.

Factors Respondent

(No.)

Share

(%)

Rank

1 Success Stories 08 04.0 4

2. Previous Experience in

Manufacturing/ Industries

04 02.0 6

3. Property Inherited/Acquired 06 03.0 5

4. Help from Husband 127 63.5 1

5. Support from Parents/ Other

Family Members

43 21.5 2

6. Support from Friends & Relatives 12 06.0 3

7 Total 200 100 --

Source: Primary Data

As per Table 4.4 most of the women entrepreneurs (63.5%) got

effective support from their husbands to start and run their businesses.

Budding women entrepreneurs of backward region find it difficult to

sustain entrepreneurship without active support of family and friends. At

the initial levels of venture, women entrepreneurs who come out of

protected boundaries for the first time are weak indeed, with low self-

conscious and need emotional support from spouse, in-laws, and

understanding children in energizing women entrepreneurs. Help and

support from the family and friends also increase competence and

meaningfulness. Majority of the entrepreneurs (91%) received help from

family which included husbands, parents, relatives, children’s etc.

Husband and wife are the two wheels of their conjugal life. If they don’t

get cooperation for any work, then success is impossible particularly for a

wife. When she gets help from a husband she feels very encouraged and

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gets inspiration to do the work in a good way. To women the help of the

husbands by helping in household chores, by participating in the work

concerning kids, some outdoor work like purchasing, works relating to

bank and post office, and paying all types of bills augment confidence and

courage to excel themselves. A housewife can only do her business well if

the husband is taking interest to develop her business more, get finance or

credits and subsidies, pay attention to manage the payment of installments

and play second fiddle in family chores.

4.2.3 Financial Factors

Majority of the entrepreneurs received financial support from

various institutions and individuals. Hence the financial factors were

divided into institutional support and non institutional support.

4.2.3.1 Institutional Support

Institutional support is basically of two types, namely, (a) financial

incentives, and (b) non-financial incentives. Financial incentives, are in the

form of money. Non-financial incentives incentives are in the form of

training, guidance, marketing, facilities. Table 4.5 indicates financial

incentives received by women entrepreneurs from institutional and non-

institutional sources.

Table 4.5 Financial Inputs Availed – Source-wise

Sl.

No. Source of Finance

Respondents

(No.) Share (%) Rank

1 Loan and Other Support from

Commercial Bank 61 30.5 1

2 Finance from Govt.

Schemes/Programme 43 21.5 3

3 Relatives 10 05.0 6

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4 Own Fund 22 11.0 4

5 Husband 49 24.5 2

6 Friends 15 07.5 5

7 Total 200 100 --

Source: Primary Data

It is evident from the Table 4.5 that commercial banks played vital

role in stimulating women to take up entrepreneurship by 30.5 percent of

the entrepreneurs availed financial and non-financial assistance from them.

Banks had their various financial schemes, workshops, awareness

campaigns, motivation camps and external support to the entrepreneurs.

About 22 percent of the entrepreneurs received assistance from

Government schemes and programmes. Own fund (11%) and investment

from husband (24.5%) together had played the major role (35.5%) in

boosting up entrepreneurship.

4.2.3.2 Non-Institutional Support

Non-Institutional support are in the form of support from family

members\relatives\self\friends etc Table 4.5 also revealed that among the

non-institutional financial support, majority support (24.5 percent) was

received from husbands. The husbands were also observed as the most

important source of motivation (63.5%) to women entrepreneurs in

establishing new enterprises (Table 4.4). Sixty (60%) percent of the

women enterprises were virtually run and managed by their husbands.

This arrangement was most often necessitated by the concessions and

benefits that went with women enterprises. The women entrepreneurs also

received support from friends, and relatives. Thus, incentives of financial

and non-financial character also played a dominant role for fostering the

spirit of entrepreneurship. For the success of an enterprise, the

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entrepreneurs have to depend not only on their own initiative and hard

work but also on help and co-operation from other agencies.

4.2.4 Spatial Factors Influencing Inception of the Enterprise

Before launching a business, the business entrepreneurs are mainly

focusing on proximity of enterprise site, availability of raw materials\

labour \technical skill\finance, transportation, nearness of market to sell

their products etc. Availability of required shop and site near to home was

found to be an important factor to start the enterprise by women for whom

family work had prime significance. The entrepreneurs were also

influenced by nearness and closeness to raw materials and other inputs.

Entrepreneurs were also found to be in comfort when the market for their

products or dealers of their product were nearby. All these spatial factors

were basically a reflection of women’s constraint to work from home than

away from it.

4.2.5 Societal Factors

Women entrepreneurs need to get a lot of encouragement from the

society also because all societies irrespective of culture and degree of

development have made biased values. Women have ascribed rights,

duties and role which prevent them in starting independent ventures or

even appearing in public places. Though world has progressed a lot,

women have prescribed economic activities and traditional women-based

businesses. Some women industry is directly useful for the women at

home, for example, making of papad, pickles, garments etc. Women who

are working under the umbrella of family have greater social protection.

Women want more social recognition and protection to start new ventures,

to travel extensively for business purposes, freedom to interact with males

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independently and right of properties. Almost all the women entrepreneurs

reported that they could start and manage business only because their

family had supported them. The first step of social recognition starts from

family.

4.2.6 Crucial Factors for Existence of Entrepreneurs

Entrepreneur respondents were asked to record their views on the

most important factor of existence/survival of their enterprise from given

six factors. Preferences from first to sixth were recorded for

existence/survival factors of their enterprises. For 200 respondents and six

factors, there would be 1200 preferences. But we take the first preferences

only or the most important factor reported by the respondents. Results are

given in Table 4.6.

Table 4.6 Crucial Factors for Existence\Survival of Entrepreneurs

Sl.

No. Factors

Respondents

(No)

Share

(%)

Rank

1 Support from Family/Staff 37 18.5 3

2 Self Confidence 70 35.0 1

3 Hard Work 43 21.5 2

4 Finance Availability 30 15.0 4

5 Risk Taking Ability 07 03.5 6

6 Marketability of Product 13 06.5 5

7 Total 200 100 --

Source: Primary Data

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Table 4.6 shows that the crucial factor influencing women

entrepreneurship was self confidence (35 percent) with maximum of first

preference marked by the respondents followed by hard work (21.5

percent) which affected the survival and success of an enterprise. About

eighteen (18.5%) percent of the entrepreneurs thought that support from the

staff and institutions were very important for the success of an enterprise,

followed by financial factor (15%). The other factors influencing the

survival\success of the enterprises were marketability of the product (6.5%)

and risk taking (3.5%). In short, we can say though most of the

entrepreneurs had received full support and continuous guidance from their

family, self confidence and hard work as contributing factors to the

survival\existence of enterprise. This is a welcome change to awareness

and empowerment of Women.

In a society redundant with age old values of suppression and

subordination of women, their entry into a totally unconventional activity

like entrepreneurship should be viewed as a radical transformation. It

heralds the birth of a new era. Awful lot of factors are contributing to the

changed scenario. Changing social values, education, media revolution,

women friendly policies\institution etc. had played vital roles. In the

survey it was found women were getting help from husband, family

members and society. No doubt the help from Government is very well

conceived such as organizing training camps, awareness regarding

financial schemes etc. But the larger class of our country is illiterate and

hence proper information do not reach to these women entrepreneurs and

the society surrounding them are not also able to provide any type of

information. So the government should revitalize all the efforts that they

do for the benefit of women of weaker section to make them successful

entrepreneurs.

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Reasons stated by the entrepreneurs to pursue entrepreneurial career

and the motives behind running their enterprises clearly indicated that they

were confident, wanted to be independent, achieve something in life, and

wished to utilize their skills, creativity, and their educational qualifications

for productive purposes. Self motivation as a source of idea generation to

set-up their enterprise showed their inclination and firm determination for

entrepreneurship. Their vision in selecting their present line of enterprise

proved their foresightedness and an indication of their aptitude for an

entrepreneurship.

4.3 INSTITUTIONAL SUPPORT SYSTEM

In the last few decades states and cities have undergone a rapid

progress mainly because of the wide range of institutions which help

entrepreneurship at various stages. Various components of support system

have recently been identified for the different kinds of enterprises. They

are mainly motivation, knowledge and skill, opportunity venture capital,

space and facilities, spin-off assistance and various other programmes. In

other words support system includes all such activities that help

entrepreneurs in establishing and running their enterprises. Provision of

such support in time can certainly help the entrepreneurs at various stages

of their enterprise development. Recently government involved through

different official and non official agencies at the State as well as Central

levels and combined various schemes, programmes and training for the

entrepreneurs. Thus the support system constituted for development of

entrepreneurs includes financial as well as commercial institutions,

research, training, extension and consultancy service. These support

systems very much influence the entrepreneurial performance of

entrepreneurs. Following are the main divisions of the promotional

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agencies which are engaged in development of general as well as women

entrepreneurship in India.

(a) Governmental Agencies at National Level.

(b) Governmental Agencies at State Level

(c) Non-Governmental Agencies

(d) International Agencies of Women entrepreneurs

(e) Associations of Women Entrepreneurs

(f) Special Assistance for Women Entrepreneurs

4.3.1 Government Agencies at National Level

A National Level Standing Committee On Women Entrepreneurs

was constituted under the chairmanship of the Minister of State to look into

the problems of women entrepreneurs and evolve policies for promotion of

women entrepreneurship among women in the country. The committee is

represented by all agencies connected with the entrepreneurship

development, women entrepreneurs and officials. The committee has also

recommended a definition of women entrepreneurs, which has been

subsequently adopted by Small Scale Industries Board. A women’s cell has

also been functioning in the office of the District Industries Centre to

attend to the problems faced by them and to provide necessary liaison. A

model syllabus had been developed for conducting exclusive training

programmes for women under different categories including tiny units.

Following are the important national agencies, which are playing

their role directly or indirectly for the development of women

entrepreneurship in the country.

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(a) Small Industries Development Organizations

(b) National Small Industries Corporations

(c) Small Industries Service Institute

(d) National Research Development Corporation of India

(e) Khadi and Village Industries Commission

(f) National Institute for Entrepreneurship and Small Business Development

(g) The Central Welfare Board.

(h) Small Industries Development Bank of India.

(i) Industrial Finance Corporation of India

(j) National Scheduled Caste and Scheduled Tribe Finance and

Development Corporation (NSFDC)

(k) Women’s Development Corporation (WDCs)

(l) Entrepreneurship Development Institute of India (EDI)

4.3.1.1 Nationalized Banks for Women Entrepreneurs

Nationalized Banks of the country has various schemes of assistance

for women entrepreneurs. The objective is to provide and extend financial

assistance on concessional terms to enable them to set up industrial units in

the small scale sector and other industrial sector which provide various

financial facilities and assistance to women entrepreneurship.

(a) Lead Bank

Under the lead Bank scheme the districts in the country have been

allotted to different commercial banks, each of them is expected to act as a

consortium and leader for deposit mobilization, identification of

prospective avenues for financial assistance etc. in the district. Some Lead

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Banks have schemes for women who have the spare time and desirous of

supplementing the family income. Such loans are available to women

above 18 years of age. EDP Programme are also arranged by some banks.

(b) The State Bank of India with Stree Shakti Package for Women

A five per cent reduction in margin for all categories of advances

and concession at the rate of interest varying between 0.5 percent to 1.5

percent are the benefits available to women entrepreneurs under the

package. Entrepreneurship Development Programme (EDP) exclusively

for women is also envisaged in the Programme This is meant for women

in need of managerial competencies and formal training to start an

enterprise.

(c) Bank of India

In 1995 Bank of India introduced a special scheme for development

of women entrepreneurs in India called ‘Priyadarshini Yojana’. Under

these scheme, artisans, agricultural and allied activities, self-help groups

(SHG) etc received the benefits. Other financial institutions which are

working for women entrepreneurship development are Canara Bank Centre

for Entrepreneurship Development for women (CED), Women

Entrepreneurship Scheme (A.P.F.C), Interest Subsidy Scheme (I.F.C.I) and

Mahila Udyamnidhi Scheme (I.D.B.I.).

(d) Reserve Bank of India

Women units are very often too tiny in size. Institutions are

reluctant to provide loans even for small amounts and demand collateral

securities which are three or four times of the loan amount. Women who

have no sufficient securities to offer for large amount of loan are neglected

224

or not get the attention of these institutions. To tackle this situation and to

ensure adequate financial support to women enterprises, the RBI took

several initiatives.

The RBI in its action plan for 2001 provided special programmes

and strategies for facilitating assistance to women in entrepreneurial sector.

For strengthening credit delivery to women entrepreneurship particularly in

the tiny and SSI sector, RBI, issue directions and formulated an action plan

for all the public sector banks (RPCD, PL&IFS, Bc.No Date December 12,

2000).

4.3.1.2 National Entrepreneurial Development Schemes

There are some general schemes declared by the central

government in time to time which are also playing important role for

increasing entrepreneurship among the women. Following are some of the

important schemes of Central Government.

i) Prime Ministers Rozgar Yojana (PMRY) and Scheme for Urban

Micro Entrepreneurs

ii) Scheme for Assistance to Rural Women in Non-financial

Development (ARWIND)

iii) Development of Women and Children in Rural Areas (DWCRA)

iv) Jawahar Rozgar Yojana

v) Prime Minister’s Employment Generation Progamme (PMRGP)

There are so many promotional institutions/agencies functioning at

national level for the promotion of entrepreneurship. Following are some

225

other institutions/agencies/department, which are also playing significant

role in the development of entrepreneurship.

Industrial Credit and Investment Corporation of India (ICICI).

National Bank for Agriculture and Rural Development ( NABARD).

India Investment Centre, New Delhi.

Entrepreneurial Development Cell, Ministry of Industrial

Development, New Delhi.

Industrial Estate, Okhala, New Delhi.

Industrial Development Bank of India.

Life Insurance Corporation of India.

General Insurance Corporation of India.

Unit Trust of India.

Export-Import Bank of India.

a) Development of Women and Children in Rural Area (DWCRA)

DWCRA is a Scheme of the Central Government which encourages

women to take up an activity of their choice. They create awareness among

women and motivate them by providing financial assistance. Though the

scheme does not conduct any EDP programme it has a role in promoting

entrepreneurial consciousness among women in rural areas.

(b) Training for Rural Youth for Self Employment (TRYSEM-now

discontinued)

TRYSEM was a rural development scheme where the local youth

were trained to pursue activities for self-employment. The scheme was

226

started in 1979 with the specific objective to give training to unemployed

women for self employment, and allotted fund was Rs.1.5 core on every

year. Self Employed Village Youth programme was started in 1983

(discontinued now) with the objective to motivate and encourage educated

job seekers including women in industry, service and, business with a total

allotted fund of Rs. 1,730 cores for all over India, under which assistance

was provided to 9.16 lakhs entrepreneurs including women. There is

considerable scope to treat this scheme in line with EDP as both are aimed

at developing talents to take up entrepreneurship as a career choice.

(c) Council for Advancement of Rural Technology and Peoples Action

(CAPART)

CAPART was set up in 1986 with the aim of co-coordinating and

assisting rural development activities of voluntary organizations all over

the country. Its thrust areas included promoting employment, income

generation and so on, especially targeted at people below poverty line.

Though not directly, the organization motivated entrepreneurial behavior.

CAPART is under the Union Ministry of Rural Areas and Employment, for

involving voluntary organization in entrepreneurship development and

training. Its objectives are implementation of projects for sustainable

development in rural areas, promotion of appropriate rural technologies

and promote conservation of the environment and natural resources in rural

areas.

(d) Prime Minister’s Rojgar Yojana

Prime Ministers Rojgar Yojana (PMRY) visualises urban Micro

enterprises as a scheme under Central Government. During 2006-07, the

participation of women (in terms of employment generation) under PMRY

was 16.5 per cent. Under the scheme, preference is given to women

227

beneficiaries. While communicating the targets under the Scheme to the

States/Union Territories and Reserve Bank of India (RBI), standing

instructions are issued for ensuring that the number of women beneficiaries

under PMRY should not be less than 30%. Furthermore, in order to

facilitate participation of women beneficiaries under this scheme, the

relaxations are being provided such as (a) Age Relaxation – the upper limit

for women applicants is 45 years, as against 35 years for general category

applicants, and (b) relaxation in residency criteria for married women - the

residency criterion of last three years is applicable for spouse/in-laws in

case of married women applicants. During 2007-08, 4515 projects of

women beneficiaries had been sanctioned.

(e) Mahila Coir Yojana

Mahila Coir Yojana is a woman oriented self-employment scheme

in the coir industry, which provides self-employment opportunities to the

rural women artisans in regions producing coir fiber. The scheme envisages

distribution of motorized rats for spinning coir yarn to women artisans after

giving training. Women spinners are trained for two months in spinning

coir yarn on motorized rat at the Coir Board’s training centres. A stipend of

Rs. 500/- p.m. is also paid to the trainees. The Coir Board provides

motorized ratts/ motorized traditional ratts at 75% cost subsidy, subject to a

maximum ceiling of Rs. 7,500/- for motorized ratts and Rs. 2,925/- for

traditional ratts. During 2007-08, 1042 ratts have been distributed.

4.3.2 Non Governmental Agencies and Associations

Following are some non governmental agencies playing their role

for the development of Women Entrepreneurship in the country.

The National Alliances of Young Entrepreneur (NAYE)

228

National Association of Women Entrepreneurs and Executives (NAWEE)

Self employed Women’s Association (SEWA)

Associations of Women Entrepreneurs of Karnataka and Bangalore

World Assembly of Small and Medium Entrepreneurs (WASME)

Xavier Institute of Social Studies (XISS)

Rural Development and Self employment Training Institute of Karnataka

a) North Eastern Women Entrepreneurs Association (NEWEA): The

Non-Governmental Organizations promote entrepreneurship by their novel

methods. One among them being NEWEA, which is a women’s

association, enabling women in carrying out business and service activities

like trade, production, food processing, marketing etc. One of the

objectives of the Organization is to develop enterprises from locally

available resources, which implies women entrepreneurial development in

the region. There are systematic plans for training the women for

developing entrepreneurial skills required for business.

b) Rastriya Gramin Vikas Nidhi (RGVN): Formed in 1990, it’s sponsors

are Industrial Finance Corporation of India (IDBI), Industrial Development

Bank of India and National Bank for Agriculture and Rural Development

(NABARD). One of its objectives includes focus on attention on groups

which are disadvantageously placed in society but have potential for

pursuing socially and economically productive activities. The other

important objective is to assist the urban and rural poor especially the

tribals, scheduled caste and women for their economic self-sufficiency.

c) Self-Help Groups (SHG) : The Self Help Group is a comparatively

new concept, which has created sensation in disbursing credit to the poor

people, who do not have access to institutional credit. Loans are also

229

disbursed for payment of school fees, books, medicines etc. Self-Help

Groups are constituted among persons of similar economic background,

which may vary between 10 to 15 in number. The SHGs can go a long

way in providing enterprise. The North Eastern Institute of Bank

Management has ventured into this field and has been interested with the

SHGs operating under them. At present government as well as non-

governmental organizations and institutions are formulating SHGs among

targeted people for effective programmes

(d) International Agencies

Major international agencies are as following.

Women’s World Banking (WWB), New York

Asian Development Bank (ADB), Manila

Swedish International Development Agency (SIDA), Sweden.

International Labour Organization ((ILO) , Geneva

Technology Transfer Organization, Netherlands

Centre for Promotion of Imports from Developing Countries,

Netherlands

United States Aid for Industrial Development (USAID), New York

e) Associations of Women Entrepreneurs: The women entrepreneurs

belonging to trade, industry and professionals had been mainly confined to

making representations in the decision making machineries of the Central

and State governments in India. With the growth of entrepreneurial wave

in the country, a few associations of women entrepreneurs have been

emerged to work and create a congenial atmosphere for the development of

entrepreneurship in urban and rural areas. These associations may be at

international, national or state level associations.

230

i) International Associations:

Associated Country Women of the World (ACWW)

World Association of Women Entrepreneurs (WAWE)

(ii) National Associations:

Women Entrepreneurs Wing of National Alliance of Young

Entrepreneurs.

Association of Women Entrepreneurs of Karnataka.

Self Employed Women Association of Ahmadabad.

Indian Council of Women Entrepreneurs, New Delhi

The Indian Institute of Marketing Management.

FICCI Ladies Organization.

National Standing Committee on Women Entrepreneur.

It was observed that there exists no separate institution exclusively

dedicated to the promotion of women entrepreneurs. Various institutes

formulated for general entrepreneurial development and assistance were

also operating separate schemes for women entrepreneurs. However,

women entrepreneurs receive more attention and additional concessions

than general entrepreneurs in the small-scale sectors.

4.3.3 Governmental Agencies at State Level

To overcome the obstacles in the process of women empowerment,

the Government at the Centre and States provide preferential treatment to

women to find out employment in the organized sector and also in

encouraging, equipping and facilitating them to start their own units.

Various schemes, incentives and facilities are made available to registered

231

women entrepreneurs by the State and Central Government and some of

them are listed in the following. The Central Government provides

following subsidies and incentives.

Subsidy for Technical know- how and feasibility reports

Development plots\development area\mini industrial Estates

Incentives for quality certification

Margin Money loan

Margin Money loan for Non resident Keralities

Notional Equity fund scheme

The State Government provide investment subsidies for the following.

a) All new units, tiny, small, medium or large units, included for

investment subsidy at the rate of 15% of fixed capital subject to a

ceiling of Rs.15 lakhs.

b) All new units in the non-thrust sectors shall be eligible for investment

subsidy at the rate of 10% of fixed capital subject to a ceiling of Rs. 5

lakhs.

c) In the case of Industrial unit’s setup in backward areas and in notified

industrial areas like Industrial Growth Centers and Industrial Park the

eligible subsidy shall be 10% of fixed capital subject to a ceiling of Rs.

1 lakh.

d) For new generators and equipment for renewable source of energy for

power, an additional investment subsidy will be provided at the rate of

15 % of the cost of investment subject to a limit of Rs.5 lakhs.

232

e) Additional subsidy of 10% subject to a maximum of Rs.25000 will be

given for installation of pollution control devices in diesel generations.

f) For mini and micro hydro electric projects set up for generating power

for industrial units, investment subsidy will be 15 % of the total cost

subject to a limit of Rs.5 lakhs.

g) Investment subsidies for information technology

h) Loan to SC\ST women entrepreneurs

i) Credit-linked capital subsidy scheme for up-gradation of technology.

Fully exempted from sales tax for 7 years for units started after 23-9-

1991. Maximum amount of exemptions limited to 100 per cent of

fixed capital investment. Existing units are also eligible for

exemption up to 100 per cent of additional investment on plant and

machinery for expansion.

SSI units are taxed at concessional rate of four per cent for their sales

to Government departments, departmental undertakings and public

sector units.

j) Incentives for growth scheme

k) General excise exemption

l) Credit guarantee fund scheme

m) Priority in getting power connection

n) Marketing support and price preference

o) Sick unit’s revival programme (SURP).

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The incentives are offered to all entrepreneurs including women.

The Government of Kerala has focus on promoting entrepreneurship

among women through its successive policies and schemes, as a part of

vigorous attempts for the developments entrepreneurship among women in

the State. Table 4.7 highlights the assistance offered by Government under

WIP to women entrepreneurs.

Government declared a special package programme called Women

Industries Programme (WIP) in 1978-79, to overcome the most prominent

disadvantages of women namely, lack of access and control over resources

by a scheme of providing grant-in-aid to women to start their own

industrial unit.

Kerala is the forerunner in providing special consideration and

assistance for attracting women into entrepreneurial arena. The higher rate

of literacy and high level of education among women are congenial for the

growth of entrepreneurship in the State.

Table 4.7. Special Assistance Under Women Industries Programme

Sl. No. Item Rate Period

1

(a) Machinery &

Equipment

50% of the cost of

Machinery or Rs.75000

Which ever is less?

Any period

2 (b) Workshop/

building Grant

50% of the cost of

Construction or

Rs.50000which ever is

less

Any period

3 (c) Rent of

Building

Rs.750 per month or the

Rent actually paid

whichever is less

For four years (1st year

100% and 25% less

every year)

234

4

(d) Building

under Hire

purchase

50% of the hire purchase

charge in mini Industrial

Estate will be given on

grant to a maximum of

Rs.25,000/-.

Any period

5 (e) Salaries of

the functionaries

A tapering grant to the

extent of Rs.750/- per

month or Salary actually

paid.

For four years (1st year

100% and 25 5 less

every year)

6 (f) Stipend to

trainees

Rs.500-/ per month per

trainees. Any period

Source: Annual Report, DIC, Thrissur 2008

Table 4.7 shows that women entrepreneurs are assisted by

government in many ways in establishing and managing their enterprises.

For the purpose of this scheme a woman industrial unit is defined as a

small-scale Industrial Unit\industry related to service or business

enterprise, managed by one or more women entrepreneurs in proprietary

concerns or in which she\they individually have a share capital of not less

than 51% as partners\shareholders\ directors of private limited company,

members of co-operative society and with not less than 80% women

employees, the units, which commenced operation on or after 9-11-1978

and permanent.

The TREAD scheme envisaged economic empowerment of women

through development of their entrepreneurial skills in non-farm activities.

The Government’s grants upto 30% of the total project cost is provided to

the Non-Government Organizations (NGOs) for promoting

entrepreneurship among women. The remaining 70% of the project cost is

financed by the lending agency as loan for undertaking activities as

envisaged in the project. Further, Government grants upto Rs.1 lakh per

programme is provided to training institutions/NGOs for imparting training

235

to the women entrepreneurs. Besides, need-based grants upto Rs.5 lakh

may also be provided to national level EDIs and other reputed institutions,

for undertaking field surveys, research studies, evaluation studies,

designing of training modules etc. Under this scheme, proposals involving

grant of Rs. 51.65 lakh to 16 NGOs/Institutions, have been approved for

benefiting 1700 women.

In order to develop entrepreneurship among men and women in

Kerala, EDPs are organized by the Government through nodal agencies

like the Centre for Management Development (CMD), SISI, etc, and

through nationalized banks and State Bank group Banks. The Government

of Kerala provides various kinds of assistance to women entrepreneurs who

have contributed to the growth of women entrepreneurship in the State.

These assistances include seven years exemption from the payment of sales

tax, grant for the purchase of machinery and equipment, grant towards the

cost of buildings, the rent of the building, the salary of the technical

employee or paid manager etc.

4.3.4 Institutional Support in Thrissur District

Any type of support by the agencies and institutions for any

entrepreneurial activity is conceptualized as an institutional support. It can

be governmental (State or Centre) or nongovernmental. Centre\State\

NGO support systems are already examined. Now we will examine the

support system at the district level which are mainly extension of national

or state level agencies and same organisation exclusively working at the

district.

236

(a) District Industries Centre

DICs are functioning at all district headquarters. The District

Industries Centre programme was started by the Central Government with

the objective to provide guidances and assistances under one roof to

entrepreneurs in the fields of project identification, credit facilities, land

allotment, grant of subsidies, incentives, etc.

The District Industries Centers are headed by the Director, at the

State level who will be assisted by an Additional Director under whom

there are General Managers at District Head Quarters supported by various

functional Managers specialized in their fields, viz, economic investigation,

Machinery and Equipment, Research, Extension and Training, Raw

material, Credit Marketing and cottage industries. These functional

managers are further assisted by Project Officers and the field staff

consisting of inspectors who are normally in constant touch with the

women entrepreneurs. General Managers and inspectors are the most

important persons for boosting up entrepreneurship among women.

(b) Single Window Service (SWS)

Government of Kerala have declared “The Kerala Industrial Single

Window Clearance Board and Industrial Township Area Development Act,

1999” to provide special provision for speedy concurrence and issue of

license, clearness, and certificates required for setting up of industrial

undertakings, constitution of industrial undertakings, Industrial Township

Area Development Authorities and other matters connected therewith. As

per this Act, it has been constituted a State Board at State level, chaired by

Chief Secretary to Government and the Managing Director, Kerala State

Industrial Development Corporation as Convener. District Board at District

237

level is constituted with the Collector of the district as Chairman and

General Manager, District Industries Centre, as convener and an Industrial

Area Board at every industrial area under the chairmanship of a member

below the rank of district collector. The State Board also acts as the

Appellate body over the District Board and Industrial Area Board. This is

introduced in every district to look into the problems of the entrepreneurs,

initiate action and take decisions to solve them.

(c) Micro, Small and Medium Enterprises Development Institute, Thrissur

MSME-D1, Thrissur, Kerala is mainly focused to help the existing

entrepreneurs to increase their productivity and help prospective

entrepreneurs to set up new units. It is a one stop office for those who

desire to start their own ventures and those who have already done so.

MSME-D1, Thrissur conducts identification of project ideas,

technological consultancy and preparation of project reports and conducts

management and techno management training programmes.

d) State Industries Development Bank of India (SIDBI)

It is the principal financial Institution for the promotion, financing

and development of industries in the small scale sector and for co-

ordination of the institution engaged in similar activities. The Bank has

designed programmes with a focus on women such as Mahila Vikas Nidhi,

Mahila Udyamk Nidhi,Micro Credit Scheme, Women Entrepreneurship

Development Prgrammes, etc.

e) Khadi and Village Industries Commission (KVIC)

It is a statutory organization engaged in promoting and developing

Khadi and Village industries with a view to create employment

238

opportunities in rural areas and thereby strengthening the rural economy. It

provides financial assistance to village industries in the form of 50 percent

grant and 50 percent loan for purchases of tools, equipment, etc and

working capital loans for production, sale and stocking of raw material.

Loans for Khadi are free of interest and those for village industries are

available at the rate of four percent per annum and are repayable in five to

10 years.

f) Central Food Technology and Research Institute (CFTRI)

This institute provides Technical advice in setting up of food based

industries and is responsible for education, training and research in the area

of food science and technology.

g). Kerala Industrial and Technical Consultancy (KITCO)

It serves to prepare project reports, feasibility reports and market

survey reports for entrepreneur and techno economic appraisal reports for

financial institutions, management consultancy services for SSI planning,

design and detailed engineering, implementation of small, medium and

large scale projects and conducts Entrepreneurship Development

Programmes for entrepreneurs.

h) Banks

Though Banks are spreaded over at various spatial limits they are

key functionaries directly in contact with entrepreneurs. Field Officers at

the grass-root level and business managers at the branch level are the active

personnel to help entrepreneurs in surveying, sanctioning, disbursement

and repayment of loans. For example, Bank of India has a cell called

clinic-cum-guidance service to entrepreneurs. This cell offers assistance in

239

selection of industry, preparation of project, practical training, obtaining

government clearance, procurement of machinery and equipment,

marketing etc. Canara Bank offers industrial and information service to

their entrepreneurial clients regarding industrial scope, technical and

marketing facility, taxation, export and import accounting and

managements etc. Indian Bank also provides Entrepreneurial Advisory

Service to unemployed graduates.

i) Rubber Board

Rubber Board offers development/infrastructural facilities for

industrial park and Testing of Rubber products for rubber based

enterprises.

j) COSTFORD, Ayyanthole, Thrissur

COSTFORD undertakes implementing, monitoring and evaluating

of projects, facilitating composite credit mechanism and electrification of

industrial units, especially to poor communities.

k) Handloom and Handicraft Society

One of the objectives of the Society is to provide training to the

deserving people in various fields of manufacturing handloom fabrics and

quality products of handicraft.

l) State Financial Corporations (SFCs)

Financial Corporation conducts consultancy services, project ideas

selection and development, liaison, surveys and feasibility reports.

Finances for seed capital and term loans for industrial units, hospitals, etc

are also given. Assistances to women entrepreneurs under Mahila Udyog

240

Nidhi Schemes for Technocrats and SC\ST are provided by SFC. Single

Window Scheme provides term loan and working capital to new tiny and

SSI units.

m) Industrial Training Institute, Chalakudy, Thrissur

ITI, Chalakudy imparts skill based training to educated unemployed

people in Fashion Technology and Garment making.

n) Technical Consultancy Service

The activities of the TCS are conducting survey for industrial

potential, preparation of project profiles and feasibility studies, undertaking

techno economic appraisal of projects, carry out market research, provide

technical and managerial assistance to entrepreneurs, assistance in

modernization, technology up-gradation, rehabilitation programme,

organizing information cell and Databank regarding industrial environment

potential etc.

o) Kerala Institute of Entrepreneurship Development, Kalamassery

KIED provides various entrepreneurial training programmes for

entrepreneurs.

p) District Rural Development Agency (DRDA)

DRDA is the principal organ at district level to manage and

implement IRDP and other different antipoverty programmes of ministry

of Rural Development. In Kerala and majority of the other states, DRDA

had been merged with Zilla Parishad by the progress of Panchayati Raj

Act. DRDA is administered by project director\chief executive officer at

district level with a group of assistant project officers (APO) responsible

241

for planning. The APOs are assigned specific jobs in the field of

agriculture, animal husbandry and activities related to women. APO

women are the most important functionaries for woman entrepreneurs

having their enterprises in rural areas.

4.3.5 Financial Support Analysis

The financial support was in the form of loan, subsidies, grant etc,

provided by DIC and other supporting institutions. Technical assistance

included entrepreneurship development training, skill development training

etc. Another important assistance was managerial guidance to

entrepreneurs which imparted better management practices in promoting

the enterprises.

From the Table 4.8 it is clear that 100 units had availed financial

assistance from institutions and organizations. One thirty four units (67%)

had acquired technical assistance like entrepreneurial development

training, skill development training etc conducted by different types of

institutions. Technical knowledge helped the production of commodities.

As far as availability of machinery, raw materials, equipment, etc. are

concerned, 53 units had availed that facility. Government also provided

special care for the development of infrastructure for the development of

women enterprises. The efforts of the Government in this direction were

supplemented by the Central Scheme called “Integrated Infrastructure

development”. The infrastructural assistance was availed by 11 units,

consultancy and managerial guidance by 27 units, and marketing facilities

by 17 units.

242

Table 4.8 Type of Institutional Support Availed by Respondents

Sl. No. Type of support Respondents

(No.) Share (%)

1 Financial Support 100 50.0

2 Technical Support 134 67.0

3 Production/Technology 53 26.5

4 Infrastructure 11 05.5

5 Consultancy 27 13.5

6 Marketing 17 08.5

7 Not Availed Any Assistance 16 08.0

Source: Primary Data

Finance is the sine-qua-non for any enterprise. It is one of the basic

requirements for entrepreneurs. At every stage of the project, finance is

now made available to entrepreneurs by commercial banks for purchase of

plants, machinery and for working. Even after nationalization of the banks

central Government decided to setup Regional Rural Banks throughout the

country for giving facilities to the small entrepreneurs. It is conceptualized

as the assistance in the form of money provided by any agency or

institution. If there is an enterprising entrepreneur, the doors of the bank

and financial institutions are always open for her, bringing bright future

and prosperous economy. The economic and industrial development of a

country largely depends upon how efficiently the funds are managed by its

banks and financial institutions. An entrepreneur has various sources of

money of which institutional finance is only one source. Table 4.9 is

243

meant to analyse the various sources of finance tapped by the selected

respondents.

Table 4.9 Major Sources of Finance for Starting the Units

Sl. No. Sources Respondents

(No.) Share (%)

A Institutional Finance 104 52.0

1 Personal Loan from Bank 61 30.50

2 Money through Government

schemes/ programmes 43 21.50

B Non-institutional Finance 96 48.0

3 Loan from relatives and friends 10 05.00

4 Own money 28 14.00

5 Undisclosed Sources 58 29.00

C Total 200 100

Source: Primary Data

It is clear from the Table 4.9, that large number (30.5 percent) of the

entrepreneurs started their units by using loan from nearby Commercial

Banks, namely, Canara Bank, Co-operative Bank, Dena Bank, Indian

Bank, Indian Overseas bank, South Indian bank, State Bank of India,

Syndicate bank and United Commercial Bank etc. Fourteen percent of the

entrepreneurs opted for own finance to start the venture. Twenty one point

five (21.5%) percent entrepreneurs had started their units by using the

finance from Government Schemes and Programme. Only five percent of

the entrepreneur’s found out their source of finance from friends and

relatives. Twenty nine (29%) percent of the entrepreneurs did not reveal

244

the source of finance for starting unit. They depended on non-institutional

sources and not included in institutional loan\security\incentives etc for

analysis. From the analysis of data of 200 samples selected, 104 units

availed finance from various financial institutions. Remaining units relied

on other sources of income like income from friends\relatives\own money

and undisclosed sources.

The Table 4.10 indicates details of subsidy distributed to the

entrepreneurs. The analysis showed that 60.5 percent of the entrepreneurs

got subsidy with an average amount of Rs.33742.15. 79 entrepreneurs

were not recipients of any subsidy. Taluk wise details show that in

Chavakkad taluk, majority (80 percent) of the entrepreneurs got subsidy.

Compared to the large volume of investment and loan made, subsidy

amount is trivial. Average investment was Rs.37.1 lakhs and loan was

Rs.19.4 lakhs (see Table 3.21).

Table 4.10 Subsidy Recipients Among the Respondents – Taluk-wise

Sl.

No. Taluk

No subsidy Got subsidy Average

subsidy (in Rs) No % No %

1 Chavakkad 08 20.0 32 80.0 27478.13

2 Kodungaloor 15 37.5 25 62.5 18120.00

3 Mukundapuram 17 42.5 23 57.5 77456.52

4 Thalappily 19 47.5 21 52.5 34547.62

5 Thrissur 20 50.0 20 50.0 12175.00

6 Total 79 39.5 121 60.5 33742.15

Source: Primary Data

245

Only 162 entrepreneurs received incentives in any form for their

business. Table 4.11 shows the purposes for which the incentives were

availed by women entrepreneurs. Out of the 162 units, majority (32.72

percent) of the units availed incentive for purchasing machinery for starting

the units. About nine per cent (8.64%) of the units availed finance for both

building and machinery. About eight percent of the units availed finance

for building alone. It implied that 51.86% got incentives related to

building and machinery. Further the Table 4.11 revealed that 44.44 percent

of the units did not disclose purpose of incentives availed their units.

Table 4.11 Purposes for which Incentives Availed by the Respondents

Sl. No. Purposes Respondents (No) Share (%)

1 Building 13 08.03

2 Machinery 53 32.72

3 Building & Machinery 14 08.64

4 Rent for Building/Machinery 04 02.47

5 Stipend for trainees 03 01.85

6 Others 03 01.85

7 Purpose not revealed 72 44.44

8 Total 162 100.00

Source: Primary Data

As per the Table 4.12, 172 units had borrowed finance from

different institutions, of which 88 units (51.1%) faced various types of

difficulties. It implied that 49% entrepreneurs revealed that they had no

difficulties for availing finance. Taluk wise analysis shows that maximum

number of entrepreneurs (87%) facing difficulty was in Chavakkad Taluk.

Sizeable number (51%) of entrepreneurs had difficulties in availing finance

on an average. Institutions have to streamline their provisions and

246

procedures to enable entrepreneurs to get adequate finance at correct time.

Other wise the very purpose of institutions will fail to serve the society.

But it has to be equally noted that 49% of the entrepreneurs said that they

never faced any problem in getting WIP grant.

Table 4.12. Difficulty in Borrowing Finance – Taluk-wise

Sl. No.

Taluks

No Difficulty Faced Difficulty

No Share (%) No Share (%)

1 Chavakkad 05 31.59 32.0 86.49

2 Kodungaloor 28 82.35 06.0 17.65

3 Mukundapuram 23 69.70 10.0 30.30

4 Thalappily 12 33.33 24.0 66.67

5 Thrissur 16 50.00 16.0 50.00

6 Total 84 48.84 88.0 51.16

Source: Primary Data

The money lending institutions like banks and other financial

institutions have prescribed some conditions to provide loan to the loanees.

Almost all banks and financial institutions will demand surety or security

from the loan applicants in order to ensure to get back their loan amount

sanctioned and paid to the applicants. As per Table 4.13, 46 percent of the

entrepreneurs had taken loan by providing surety, 28 percent of the units

provided security and 15 percent of the units provided both surety and

security. Eleven (11%) percent of the units revealed that they did not

provide any guarantee for availing loan amount. Taluk wise analysis shows

that majority of the entrepreneurs in Chavakkad taluk (73%) provided

surety and 49 percent of the units of Mukundapuram provide security.

From the Table 4.13 it can be observed that almost all the units had

taken loan from Banks on the strength of either surety or security. Very

247

few units had taken loan on the strength of both surety and security. It is

natural that lending institutions are demanding security or surety or the

both to advance loan. Therefore 89% got loan on that basis. However

11% got loan on the basis of trust or certificate of solvency is really a

pointer to assist needy entrepreneurs with limited means without resource

support. But it demands higher vigilance on the viability of project and

character of the person.

Table 4.13 Conditions Insisted by Lending Institution

Sl.

No.

Taluk

Surety Security Both Nothing

No Share

(%) No

Share

(%) No

Share

(%) No

Share

(%)

1 Chavakkad 27.0 73.00 03.0 08.0 04 11.0 3.0 8.0

2 Kodugaloor 18.0 53.00 13.0 38.0 0 0 3.0 9.0

3 Mukundapuram 10.0 30.00 16.0 49.0 05 15.0 2.0 6.0

4 Thalappily 11.0 31.00 11.0 31.0 11 31.0 3.0 7.0

5 Thrissur 14.0 44 00 06.0 18.00 05 16.0 7.0 22.0

6 Total 80.0 46.50 49.0 28.5 25 14.5 18.0 10.5

Source: Primary Data

Women’s access to credit is seen as one of the most important and

difficult aspects. Bank managers in general opinioned that women

borrowers were very punctual and serious about repayment of loan than

male entrepreneurs. Most of them were satisfied with the recovery

performance and faced no difficulties in recovery of the due from women

entrepreneurs in time.

Table 4.14 explains the loan repayment details of the entrepreneurs.

Out of 200 sample units, 172 units had availed different types of loan. Out

248

of these 172 units, 137 units made repayments of loan in time and the

remaining 15 units did not make any payments due to different reasons.

Majority (97 percent) of the entrepreneurs repaid the loan in Chavakkad

Taluk, while in Kodungaloor Taluk it was 94 percent followed by 85% in

Mukundapuram Taluk, 92% in Thalappilly Taluk and 88 percent in

Thrissur Taluk. It can be observed that 91% of the loanees had repaid the

loan in time whereas small sections (9%) had failed to do so. Women

entrepreneurs in general are creditworthy.

Table 4.14 Loan Repayment- Taluk wise

Sl. No. Taluk Repaid Not repaid

No % No %

1 Chavakkad 36 97.00 1 3.0

2 Kodungaloor 32 94.00 2 6.0

3 Mukundapuram 28 85.00 5 15.0

4 Thalappily 33 92.00 3 08.0

5 Thrissur 28 88.00 4 12.0

6 Total 157 91.00 15 9.0

Source: Primary Data

Unless and otherwise the loan is repaid timely and promptly, no

business organization can approach any banking institution for financial

assistance. Financial institutions can also function only with the prompt

repayments. Financial assistances play a vital role in business

organizations, especially, in small business organizations like women

enterprises, small scale industries, etc. which are surviving with the aid of

loan from banks and other Government organizations.

249

Reasons for non-repayment of loan are shown in the Table 4.15.

Out of the 15 non repayment units eight units did not repaid their loan due

to financial crisis. Two units did not specify the reasons for the non

repayment of their loan. Three units expressed their reasons as family

problems like noncooperation from family members. Other reasons for

non repayment of loan were health problems of husband and marriage of

daughter.

Table 4.15 Reasons for Non repayment of Loans

Sl. No. Reasons Number Share (%)

1 Family problem 03 20

2 Financial Problem 08 53

3 Husbands Illness 01 07

4 Marriage of Daughter 01 07

5 Not Specified the Reason 02 13

6 Total 15 100

Source: Primary Data

4.3.6 Nonfinancial Institutional Support System

Nonfinancial supports are equally important as financial support

because finance is only one of the inputs for business. In fact there are well

established systems for institutional finance in any country. However

nonfinancial support system is lacking in many areas of development and

turns critical in deciding the degree of development. Major support

systems for nonfinancial assistances are training programmes under

Entrepreneurial Development Programme\ Management Development

Programme, technical skill, infrastructure, consultancy services, marketing

250

assistance etc. Availability and accessibility of nonfinancial support

systems for the selected entrepreneurs are examined herewith.

4.3.6.1 Entrepreneurship Development and Training Programmes

Entrepreneurial Development Process is one of the areas of

education which is not given as much importance as it deserves. Various

Entrepreneurial Development Programmes are designed to develop and

improve entrepreneurial skills and behavioral adjustment needed to go

through the stresses of initial stages. The programme is essentially meant

to develop first generation entrepreneurs, as they cannot attend various

initial activities by their own. The developing process can cover one or

more of activities like (a) selection of location, (b) machinery selection, (c)

training of employees, (d) assistance for project report, (e) guidance for

financial assistance, (f) training in sales and service and (g) managing

changes and improvements in an enterprise. For women entrepreneurs

there will be separate groups and training schemes suiting to their timing

and areas of work.

Many years after Independence, Government of India recognizes the

role of entrepreneurs in industrialization and economic development of the

country. Hence it started several organizations to promote

entrepreneurship. The lists of organizations are as following.

(a) EDII- Entrepreneurship Development Institute of India in 1983 at

Ahamedabad.

(b) NIESBUD - National Institute of Entrepreneurship and Small

Business Development in 1983 at New Delhi

(c) RED-Rural Entrepreneurship Development in 1983 at Ranchi

251

(d) MDI- Management Development Institute-Gurgaon (Haryana)

(e) SIDO- Small Industries Development Organization.

(f) TCO-Technical Constancy Organization.

(g) STEP –Science and Technology Entrepreneurship Parks.

In addition to above, SBI and IDBI, also conduct EDP. The aim of

the EDP is generating, sharpening and sharing knowledge through

research, documents and publication. They create and develop

professionals to be entrepreneurs. With the objective of promoting women

entrepreneurship, a number of institutions are functioning in the State (both

national/state governments) to impart awareness on opportunities and to

provide skill based training to women as given below.

(a) District Industries Centre (DIC)

(b) Centre for Management Development (CMD)

(c) Kerala State Women’s Development Corporation (KSWDC)

(d) Khadi and Village Industries Commission (KVIC)

(e) Small Industries Development Organizations (SIDO)

(f) State Institute for Small Scale Industries (SIST)

(g) Science and Technology Entrepreneurship Development Programme

(STED)

(h) Small Entrepreneurs Promotion and Training Institute

(i) Rubber Board

(j) Kerala State Development Corporation for Scheduled Caste and

Scheduled Tribe

(k) Keltron

252

It is pointed out that, over the years while adopting industrial policy

resolution, Government of India has not taken special note of women

entrepreneurs as a separate and potent factor in economic growth. Earlier

negligence towards women entrepreneurs was due to prevailing male

dominant thought in the society. However, training progarammes had been

designed to motivate and help to develop certain qualities essential for

prospective women entrepreneurs to run small-scale industries by their

own. Entrepreneur attributes can be improved to a certain extent through

training. Training further stimulates the development of the competencies

in individuals. The entrepreneurship training thus helps the women to

identify the weaknesses and ways of improving them. Entrepreneurship

training will enrich women with latest information.

Entrepreneurial Development Programmes (EDPs) are basically need

based training and the process involves pretraining preparation, training

implementation and post-training support.

The EDPs for women use following steps:

(a) Identifying and selecting potential women entrepreneurs,

(b) Developing their entrepreneurial competencies,

(c) Ensuring that the entrepreneur choose a feasible project,

(d) Equipping them with managerial skills,

(e) Assisting them to secure necessary financial, infrastructural, and other

required support for timely start of a viable venture.

Generally EDPs are based on the assumption that entrepreneurship can

be developed. The process of EDP is linked with the theoretical

foundation of entrepreneurship. In order to encourage more and more

253

people to participate in the Small Scale Sector, ie, cottage and small scale

industries and to make the unemployed youths aware about

entrepreneurship and training regarding the procedures to be followed to

establish and run own business, Entrepreneurship Development

Programme plays an important role.

Almost all the sample entrepreneurs had some knowledge about

entrepreneurship or had undergone some training for this. As per Table

4.16, majority of the entrepreneurs (67%) had undergone training in EDP

in their respective fields. Thirty three (33%) percent of the entrepreneurs

had not attended any training Programme. Taluk wise classification shows

majority of entrepreneurs (75%) in Kodungaloor Taluk had attended

training Programme.

Table 4.16 Distribution of Entrepreneurs Attended Training in EDP

Sl.

No. Taluk

Yes No

Respondents

(No.)

Share

(%)

Respondents

(No)

Share

(%)

1 Chavakkad 29 72.50 11 27.50

2 Kodungaloor 30 75.00 10 25.00

3 Mukundapuram 28 70.00 12 30.00

4 Thalappily 26 65.00 14 35.00

5 Thrissur 21 52.50 19 47.50

6 Total 134 67.00 66 33.00

Source: Primary Data

Now it is proved that entrepreneurs are not born but are made with

suitable training. Many lending institutions made it compulsory that

training is an important pre-condition that the entrepreneurs should

254

undergo before disbursement of the loan. Both EDP and PMRY has

compulsory training schemes for entrepreneurs, after the sanction of loan.

Why entrepreneurs had not undergone any training is explored in

the study. Out of 200 entrepreneurs, 66 entrepreneurs had not attended the

Entrepreneurs Development Programme. Table 4.17 reveals that 12 per

cent of the entrepreneurs were not aware of the programme and nearly 36

percent opined that they did not think that training course was useful.

Another major reason for not attending the EDP was inconvenience

(34.86%). Though the entrepreneurs who did not attend the EDP were

only 33%, the absentees had valid reasons. Organizers have to sensitize

the entrepreneurs about the need and benefits of such programmes to

ensure success of women enterprises. Table 4.18 highlights the benefits of

EDP as received by those who attended such programmes.

Table 4.17 Reasons for Not Attending the Courses

Sl. No. Reasons Respondents (No.) Share (%)

1 Not aware of the Programme 08 12.12

2 Did not Think they are Useful 24 36.36

3 Seemed to be Expensive 03 04.55

4 Inconvenience 23 34.86

5 Other Reasons 03 04.55

6 Not Mentioned the Reasons 05 07.56

7 Total 66 100

Source: Primary Data

From the Table 4.18 it can be observed that 51 percent of the

entrepreneurs were benefited by the EDP training by making them eligible

255

for financial assistance of the Government and its agencies. As many as 18

percent of the entrepreneurs acquired technical know-how and financial

assistance. Entrepreneurs who attended the programme had also received a

combination of benefits like enhanced self confidence, technical knowhow,

improved managerial skill and financial assistance. In short all of them

who attended the training could improve their units and skills by training

content.

Table 4.18 Benefits Acquired by Participating in the EDP Training

Sl. No. Benefits Respondents (No) Share

(%)

1 Increase the confidence 03 2.24

2 Financial Assistance 68 50.75

3 Financial Assistance and Increase

in the Confidence 18 13.43

4 Technical Know-how 16 11.94

5 Financial Assistance and Technical

know-how 25 18.66

6 Increased Managerial Skill 02 01.49

7 Technical Know-how 02 01.49

8 Total 134 100

Source: Primary Data

Any training programme should not only provide proper

entrepreneurial motivation and skill but should also ensure that

entrepreneurs are able to develop their enterprises well by scientific,

managerial techniques and contents in various fields of management like

financial management, marketing management, production management,

inventory control etc. Management Development Programme is meant for

these benefits and unlike EDP, it focuses on managerial aspects. It is to be

noted that while in EDP there were only 66 absentees (33%), in MDP only

256

43 respondents had attended the progamme or 77% were absent. Table 4.19

depicts the sources of training under which Management Development

Programme had been received by respondents. It is to be noted that only

forty three (21.5%) entrepreneurs out of 200 samples had attended the

management training of which 12 percent had attended training through

Government programmes. Other agencies offered EDP training were DIC,

KVIC, SISI, SSI, NGOs etc. However, 6.5 percent of the entrepreneurs

did not remember, which training programme they had attended. Women

Entrepreneurs in general did not participate in any management training

programme, indicated the lost opportunity which is a serious issue. Like

EDP, MDP should also be made compulsory for government assistance.

Women may not get managerial skills, unless they are imparted by

training. Hence measures are required to ensure higher participation of

women as entrepreneurs.

Table 4.19. Sources of Management Training Programme Attended

by Respondents

Sl. No. Sources Number Percentage

1 Not Attended 157 78.5

2 DIC 03 001.5

3 Government 24 012.0

4 KVIC 01 00.5

5 NGO 01 00.5

6 SISI 02 01.0

7 SSI 02 01.0

8 Attended but not remember the

Programme 13 06.5

9 Total 200 100

Source: Primary Data

257

The nature and quality of inputs that an entrepreneur receives before

starting of a venture is critical to the success of an enterprise. Equally

important is opportunity to undergo courses before or after establishment

of enterprises. About 60% (119) of the selected respondents had

undergone pre-training or post training courses. Among those respondents

who did not attend any course, 53% were not knowing about such courses.

Others thought that courses were expensive, inconvenient etc. Lack of

adequate information is a serious issue among women entrepreneurs

because their social interaction and source of information are limited.

4.3.6.2 Consultancy Services

So far we were examining and analyzing the various training

programmes like EDP\MDP and courses attended by the respondent

entrepreneurs as a part of nonfinancial institutional support received by

them. Other supports like consultancy, marketing etc. are next areas to be

examined.

Support in the form of counselling and guidances through institutions

and agencies regarding business decisions are essential in the formative

stage. The guidance and advice provided by the agencies and institutions

to the entrepreneur while initiating, implementing and running the

enterprises are operationalzed as the consultancy services. The following

institutions are engaged with guidance and consultancy service to small

scale sector in the state.

(a) Keltron

(b) Kerala Industrial and Technical Consultancy (KITCO)

(c) Coconut Development Board

(d) The Rubber Board

258

4.3.6.3 Assistance For Marketing

Marketing is one of the vital factors for the success of industries.

Focusing on market is important, because if there is no market for the

goods produced by the industry that industry cannot exist for a long time.

The very purpose of a manufacturing concern is to produce what the

customer wants, at a price she is willing to pay. The entire function of

production must have a distinct customer orientation.

Women entrepreneurs were facing increasing difficulties in

marketing their products and generally were not utilizing production

capacity to the full extent for the same reason. This was incurring waste of

productive resources and colossal loss to that extent. In order to overcome

these problems several organizational supports for marketing the products

of women enterprises were operating.

(a) Marketing Development Assistance Scheme: Ministry of Commerce,

Government of India reimburses the expenditure incurred by the SSI

delegations that visit foreign countries to the extent of 60% of the

expenditure incurred by the delegation for the purpose of exploring

marketing possibilities. This incentive is extended to admission items

only.

(b) Training Programme For Export Packing: SIDCO, in partnership

with the Indian Institute of Packaging organizes training Programmes for

SSI exporters on packaging for exports. Exporters are provided information

on the latest packaging standards and techniques in order to boost exports.

(c) Organizing Exhibitions And International Trade Fair: For

promoting exports, SIDCO annually participates in selected International

Trade Fair and Exhibition held abroad by the India Trade Promotion

259

Organization. All expenses on space hiring, display, shipment, insurance,

handling and clearance, publicity etc, are borne by SIDCO.

(d) Export Promotion Council- The existence of Export Promotion

Council for specific industries provides the SSI member units with

platform which are providing marketing infrastructure through

procurement of direct orders and distribution of items among member units

of production and sale.

(e) SIDBIs Marketing Finance And Development Department.

SIDBI had established its Marketing Finance and Development

Department since January 1996 to focus attention on marketing related

activities undertaken by the SSI sector. The bank formulated

comprehensive scheme for providing financial assistance to SSI, enabling

them to undertake various marketing activities and also to assist

institutions\agencies engaged in strengthening the existing marketing

channels and infrastructure for this sector. A special Marketing Assistance

Development Fund with sub-allocation for women entrepreneurs has also

been set up. Number of development and support services have also been

undertaken by the department to assist the marketing efforts of the SSI

units.

(f) Marketing Scheme\Incentive For Marketing

Two types of assistances are contemplated under this scheme viz.,

fifteen percent margin money loan on working capital and 15% investment

subsidy on fixed capital investment. The scheme intended to provide

finance to organizations for marketing SSI products in the State

particularly in the area of setting up of show rooms, installing improved

packaging machines, quality certification, marketing consultancy services

260

etc. of NGOS, Industrial Cluster, Consortiums, Co-operative Societies

(especially those managed by women) and individuals.

(g) Margin Money Loan For Setting Up Marketing Outlets of SSI

Products

The scheme intends to provide Margin Money assistance to market

SSI products of the units which availed term loan and working capital from

financial institutions. NGOs, Co-operatives (especially managed by

women), Industrial Clusters and individuals are eligible for assistances

under this scheme. Rules and conditions for providing assistance under

Margin Money Loan are as those of new institutions\individuals\

Organizations approved by DIC for Margin Money Loan from Government

and those units availed working capital loan from financial institution. 15%

is the Margin Money Loan on total working capital with a ceiling of Rs.5

lakhs will be admissible based on the project report approved by the

financial institutions.

4.3.6.4 Infrastructure

State provides special care for the development of infrastructure for

the development of women enterprises. The efforts of the state in this

direction were supplemented by the Central Scheme called Integrated

Infrastructure development (IID). National Programme for Rural

Industrialization (NPRID) is one of the infrastructure development scheme

implemented by SIDCO through DIC.

4.3.7 Opinion Regarding the Support Agencies

Number of institutions\agencies are rendering assistance to women

entrepreneurs by giving assistance for training, finance and marketing, but

no separate institution is exclusively dedicated to the promotion of women

261

entrepreneurs. So it is needed to understand the attitude of women

entrepreneurs towards support organizations, or the need to set up a

separate institution for women entrepreneurs. The statements and responses

of women entrepreneurs are analyzed and shown in the Table 4.20. The

respondents were asked to express their opinions on a four point scale of

agreement such as (a) no agreement, (b) agree (yes), (c) sometimes and (d)

no opinion with score values of zero, three, two and one respectively.

Altogether there were 10 statements and if all the 200 respondents had

agreed to all the statements, maximum score values would have been 6000

(10x3x200) and minimum would be zero. For an individual respondent

score value would be in the range of 30 to zero. Opinion index would be a

percentage of actual score value to the maximum score value, ie., 6000.

As per Table 4.20, the statement that there should be separate

support agencies for women entrepreneurs got 182 respondents (91%)

agreed to the idea. Women felt that a separate agency would better care

their needs more effectively than special wings and programmes of general

departments. Positive behavior of officials (73%) and conviction that

agencies had significant role (73%) received second and third rank in score

values based on number of respondents reflected those ideas. The last rank

went to adequacy of advertisement which showed that only 36.5 per cent

respondents had agreed with that. It shows the need for much effective

advertisement to the programmes. Since actual score values were 3896, the

opinion index was 64.9 per cent which is though not excellent (above 80%)

but good (60%-80% range) to a limited sense. All these showed that

supporting agencies\institutions and their programmes have to be more

streamlined and coordinated for more effectiveness. The need for a

separate department/ organisation for women entrepreneurs at state and

central levels were unanimously highlighted by the respondents.

262

Table 4.20 Score Values and Ranking of Opinions Regarding the Support

Agencies

Sl.

No. Statements

No

agreement Agreement

Some-

times

No

opinion Score

values Rank

R S R S R S R S

1

Support agencies have

significant role to play

in the start of an

Enterprise

42 21.0 145 72.5 0 0.0 13 6.5 448 3

2 Behavior of officials is

positive to clients 37 18.5 149 74.5 7 3.5 7 3.5 468 2

3

Advertisement

regarding their scheme

of assistance was

adequate

107 53.5 73 36.5 3 1.5 17 8.5 242 10

4 They are doing a lot for

women entrepreneurs 83 41.5 88 44.0 10 5.0 19 9.5 303 9

5

Officials show no

gender bias in

executing assistance

under general schemes

37 18.5 122 61.0 5 2.5 36 18 412 4

6

There is co-ordination

between various

support agencies

33 16.5 92 46.0 6 3.0 69 34.5 357 7

7 Assistance provided is

on papers 40 20.0 101 50.5 7 3.5 52 26 369 6

8 Agencies do provide

timely support 60 30.0 102 51.0 8 4.0 30 15 352 8

9

They are properly

discharging their

motivational role

39 19.5 117 58.5 2 1.0 42 21 397 5

10

There should be

separate support

agency for women

entrepreneurs

16 8.0 182 91.0 0 0.0 2 1 548 1

11 Score values/Index Zero 3513 96 287 3896 64.9

Source: Primary Data

Note: R = respondents in number, S = share of respondents to total in

percentage

263

4.3.8 Organizational Support And Institutional Linkages

An organization is a group entity constituted by members with given

objectives and functions to be undertaken for the benefit of the target

group. Organization is strength because it enables the members to

overcome many problems by collective strength. Linkage of organizations

further enhances the strength of organizational members. Nowadays

similar organizations, institutions and agencies are synergically solidified

to improve the effectiveness and ensure success of the target group. The

selected respondents were asked about their organizational affiliations and

linkages among various organisations which are examined herewith.

4.3.8.1 Membership in an Organization

Survey had shown that 67% of the respondents were not members of

any organization. Only 33 per cent had membership in some

organizations, of which 22.5% were in Kudumbasree and remaining 10.5%

had membership in other organizations like ESAF, SHG, Sakthi, Sthree

Sakthi Unit etc. Taluk wise analysis shows that, 55 percent of the

respondents were in Kudumbasree in Chavakkad Taluk and 32.5% in

Kodungaloor Taluk.

Initiatives taken by Organizations for starting enterprises were

examined in the survey and it was found that 56 entrepreneurs had received

organizational assistance for starting their enterprises .Majority (72

percent) of the entrepreneurs revealed that they had no support of any

organization for starting their units. Survey further showed that among the

56 units which got help for organisation majority (35 units) received

initiative from District Industries Centre. The remaining units received

264

initiative from different types of organization like charitable institution,

Khadi Board, Kudumbasree, local self governments, SHGs etc.

4.3.8.2 Institutional Linkages for Women Enterprises

In an open system each enterprise has an internal setting and

external network of relations for the purpose of advancing through

relationships involving goods and services. Moreover, for an innovative

enterprise, an entrepreneur has to be concerned about external support and

resistance arising by change in the environment. Linkage variables

constitute the network of external relationship confronting an enterprise.

On an average an entrepreneur has to contact about ten agencies and moves

paper through 25 agencies for availing the desired facility. Because of the

many departments\ agencies involved in the development process, a policy

may loose its identity by the time it reaches to the final stage. Linkages

among different agencies connected with small scale industries also have

the same fate. Realizing the importance of coordination and linkages

scientists had called for greater coordination and linkage among women

entrepreneurs so that their combined resources could render them better

services. A network of agencies and institutions are involved in rendering

services to entrepreneurs in the form of finances, technical guidance and

training, raw material, machinery\ equipment, marketing etc.

A large number of agencies\ institutions at the Centre and State

levels are involved in providing various kinds of assistance to women

entrepreneurs. As per the survey among the selected entrepreneurs it was

found that there were 17 agencies\institutions actually assisting the

entrepreneurs and 12 of them rendered guidance and technical assistance.

A good number of them were also organizing technical training in various

specialized areas. The financial assistances were mainly given by Banks,

265

State Industries Development Corporation, Financial Corporation, Small

Industries Development Bank of India (SIDBI), Industrial Finance

Corporation of India, Kerala Financial Corporation, Khadi and Village

Industries Corporation, Handloom and Handicraft Corporation, etc. These

agencies had also provided marketing outlets to products through their

network of showrooms. The linkages between different agencies assisting

women entrepreneurs have been presented in Table 4.21.

Among the 17 institutions taken for analysis (Table 4.21) 33 per

cent of them were giving training, 30 per cent were giving guidance and 17

per cent were giving finance. DRDA provided all the six services taken for

analysis. However DIC and MSMEDI had better linkages with all other

institution since they were guiding entrepreneurs for necessary inputs from

concerned institutions.

Table 4.21 Institutional Network For Women Enterprises

Sl.

No. Institutions/Agencies

Assistance Provided

Finance Train

-ing

Guid-

ance

Machi-

nery &

Equip-

ment

Mar-

keting

Raw

Mate-

rial

1 District Industries Centre (DIC) X

2 Single Window Service X

3 Khadi & Village Industries.

Corporation (KVIC) X X X

4 Micro Small & Medium

Enterprises, Thrissur (MSMEDI) X X

5 State Industries Development

Bank of India (SIDBI) X X

6 Central Food Technological

Institute (CFTRI) X X

7 Kerala Industries & Technical

Consultancy (KITCO) X X

8 Rubber Board X

266

9 Management Development

Agencies X

10 Banks X X

11 District Rural Development

Agencies (DRDA) X X X X X X

12

Kerala Institute of

Entrepreneurship Development,

Kalamassery, Kochi

X

13 Cost Ford, Ayyanthole, Thrissur X

14 Industrial Technical Institution,

Chalakudy, Thrissur X X

15 Handloom and Handicraft

Societies X

16 Technical Consultancy, Service

(TCOs) X

17 State Financial Corporation,

(SFCs) X

Source: DIC, Thrissur

District Industries Centers are the most dynamic and important

agencies which established linkages with all other agencies because they

provided all the guidances and support to the decentralized industrial sector

under a single roof at pre-investment, investment and post-investment

levels. District Industries Centre recommend the cases of entrepreneurs to

different agencies for varying types of assistance. Besides linkages with

these agencies, District Industries Centre also had links with District

Industries Board.

For the purpose of speedy clearance of various licenses and

sanctions and certificates required under the various State enactments for

setting up of small scale industrial undertakings, District Industries Boards

for each district were constituted in the State as single window clearance

facility. The composition of members of DIC shows that it is represented

by more than a dozen departments at the district level as following.

267

a. Collector of the District,

b. General Manager, District Industries Centre of the district concerned

c. The President of the Grama Panchayat concerned or Chairperson of

the Municipality concerned in cases where license is required from

the local bodies.

d. The district Officer of the Kerala Pollution Control Board or any other

officer of the board nominated by the chairman, Kerala State

Pollution Control Board

e. The District Officer of the Electrical Inspectorate or any other officer

nominated by the Chief Electrical Inspector

f. The district Officer of the Town Planning Department or any other

officer nominated by the Chief town Planner

g. District Medical officer

h. An officer of the Kerala State Electricity Board not below the rank of

Executive Engineer nominated by the Chairman, Kerala States

Electricity Board

i. District Fire Force Officer

j. District Labour Officer

k. Divisional Forest Officer

l. Secretary, Urban Development Authority or Secretary District

Panchayat

m. Deputy Commissioner, Sales Tax and Agricultural Income Tax.

n. An Officer of the Kerala Water Authority not below the rank of

Executive Engineer nominated by the managing director, Kerala

Water Authority.

268

It is true that so many institutions are working for the development

of women entrepreneurs and they are effective in different degrees. The

role of Nationalized Banks has always been beneficial to women

entrepreneurs because most of the banks have a special scheme for helping

the women in their businesses. The Bank also provides loans to women

from socially backward area or economically weak family by special

concessions like low-interest rate, subsidy etc. The better level of linkages

among various agencies and institutions working for the cause of women

entrepreneurs can help both the agencies and entrepreneurs to achieve their

targets and objectives efficiently. Increasingly, large number of women are

coming into the main stream of the economy through more direct and

diverse areas than ever before. However, the percentage of women who

are economically independent is still very low, particularly the percentage

of women venturing out to start their own business, whether small or big.

4.4 CONCLUSIONS

Institutional support is one of the major external factors promoting

any enterprise and its effectiveness will be further accentuated by

institutional linkages and networking. Support of primary circle members

like friends\ relatives\family members provide more courage and

confidence while institutional factors facilitate entrepreneurs to undertake

firms. Change in values, perception and competence are however more

critical. Among the pull factors urge to earn money and gain independence

constituted (53%) major variables. Unemployment and dissatisfaction with

given job were major (39.5%) push factors among the 10 factors taken for

analysis. Among the facilitating factors, finance from governmental

agencies were more important (31%). Commercial bank was the single

most important source of finance (31%). Self confidence was the critical

factor (35%), followed by hard work (21.5%) and family support (19%) for

269

the existence/survival of units. Institutional support system operated at

national/state level in general by government and non government

agencies. There were different Boards, Corporations, Institutes, Councils,

Commissions, Banks, etc. with various schemes/programmes for

assistance, training and awareness for finance, skill, raw materials,

machinery, marketing, exhibitions, trade shows etc. for women

entrepreneurs and their enterprises. About 67% had availed technical

support and 50 per cent received financial assistance. Major source (31%)

of finance to start business was loan from banks. About 61 per cent got

subsidy for their units. Incentives were mainly in the form of purchasing

machinery (56%). Lion's share of the respondents (51%) faced difficulty in

getting loan. 91 per cent repaid loan in time. EDP training had influenced

many women to start and run enterprises effectively and 67 per cent

attended them by which 51% were made eligible to get finance. Only 22

per cent women attended MDP. 91 per cent of the respondents remarked

that there should be separate agency to coordinate and supply all incentives

and schemes for women enterprises.

Internal and external factors are critical for the success of the

women entrepreneurs but sustenance and survival are the result of both

factors. Institutional support system has a prominent role in persuading

and promoting entrepreneurs, especially women with low socioeconomic

support, to establish and expand enterprises. Effectiveness of support

systems will be synergically augmented by the inter-institutional linkages

among various organisations and enterprises. Development is, in fact,

meticulous movement from dependence to independence and from

independence to interdependence.