A PRESENTAION ON

WOMEN ENTREPRENEURSHIPIN

Small scale & Cottage Industries

School of Management Studies, MNNIT

GROUP - 07 (2012MB52 - 2012MB60)

Table of Contents

• Introduction• Importance of SSI for women• Self help groups• Advantages• Success story of a SHG• References

• Small Scale Industry: is one in which something is converted into other form with value-addition using men, material, & equipment. When this involves at least 3-persons (and power is used) or at least 5-persons (when power is not used), it is an industry, else, it is classified as an “artisan” activity.

• Small-scale industry is one in which the investment in plant & machinery is less than Rs. 1 crore. When investment is less than Rs. 25 Lakhs it qualifies to be treated as a “Tiny” sector SSI.

INTRODUCTION

• The “Ministry of Micro, Small and Medium Enterprises” acts as the nodal agency for growth and development of SSIs in the country.

• The ministry formulates and implements policies and programs in order to promote small scale industries and enhance their competitiveness. It is assisted by various public sector enterprises

• Small Industry Development Organization (SIDO)• National Small Industries Corporation Ltd (NSIC)• National Commission for Enterprises in the

Unorganized Sector (NCEUS)• Small Industries Development Bank of India (SIDBI)

• Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise.

• Like a male entrepreneurs a women entrepreneur also can explore the prospects of starting new enterprise; undertake risks, introduction of new innovations, coordination administration and control of business and providing effective leadership in all aspects of business.

• The term „cottage industry‟ is used when products are manufactured on a small scale.

• India is well known for its large number of traditional cottage industries.

• The top Indian cottage industries are cotton weaving, silk weaving, Khadi, carpet making, leather industry, metal handicrafts and small food processing industries, jewelry, ornaments, statues, idols, gems, stones, etc. and edible items like spices, oils, honey, etc. have a huge demand not only within India but also in the foreign markets.

• Women entrepreneurs are engaged in manufacturing, processing, preservation and services such as Handloom, Weaving Handicraft, Food-Processing, Garment making etc. in village and small towns with a population not exceeding 50,000 utilizing locally available resources/skills.

• There are self-help groups in villages, women's that are the members of the self-help group get financial assistance at low interest rate which is a great boon for them.

• The modern large scale industry cannot absorb much of labour as it is capital intensive. The small scale industry plays an important role absorbing around 80% of the employment.

Cottage Industry is the Lifeline for Poor Villagers in India

• Cottage Industry preserves an enormous potential for employment generation of women's. It gives economic independence to the women of India.

• It is the traditional business of rural India that supports the rural economy.

• Goods like dress fabrics such as Khadi, leather, silk, cotton, wool, muslin, etc, and others like ornaments, statues, idols, stones, gems, etc besides edible items like spices, oils, honey etc have a huge demand in India and in foreign markets as well.

Entrepreneurship Development of Rural Women Through Self Help Groups

• Self Help Group is a homogeneous group of micro entrepreneurs with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group from which small loans are given to the members for meeting their productive and emergent credit needs at such rate of interest, period of loan and other terms as the group may decide.

• The micro entrepreneurships are strengthening the women empowerment and remove the gender inequalities.

• They were engaged in starting individual or collective income generation programme with the help of self-help group.

• Micro credit is promoting the small scale business enterprises and its major aim is to alleviate poverty by income generating activities among women and poor. Therefore, they could achieve self-sufficiency.

• The rural women are engaged in small-scale entrepreneurship programme with the help of Self Help Groups.

• Through that they were economically empowered and attaining status in family and community.

• The women were empowering themselves technically to cope with the changing times and productively using their free time and existing skills for setting and sustaining enterprises.

• This will not only generate income for them but also improve the decision-making capabilities that led to overall empowerment.

Advantages of entrepreneurship among Rural Women

in cottage industries

• Opportunities for women entrepreneurs• Economic empowerment• Improved standard of living • Self confidence• Enhance awareness• Sense of achievement

Advantages of entrepreneurship among Rural Women

in cottage industries

• Increased social interaction• Engaged in political activities• Increased participation level in gram sabha meeting• Improvement in leadership qualities• Involvement in solving problems related to women

and community• Decision making capacity in family and community

Self Help Groups Success Story• The development of cottage and agro-based industries is vital

towards generation of employment opportunities in rural areas and rural development in general.

• In the present day condition of rapid industrialization and urbanization, this is essential in order to prevent the exodus of rural population to cities in search of employment avenues.

• Annai Indhira SHGwas formed on 16.05.1998 with the initiative of its 13 members as well as that of the block development officials of Bhavani Panchayat Union located in the Bhavani, Tamil Nadu.

• These 13 members started conducting regular weekly meetings and contributing small savings, which led to the gradual increase of their group corpus, maintained in their savings bank account with Indian Overseas Bank, Odathurai.

• They soon realized that the development of micro-enterprises in their village was very essential in order to provide the people a source of regular employment.

• They were already involved in mulberry cultivation and silkworm rearing

• They approached their block development officials for guidance.• The block development officials forwarded a proposal for

Economic Assistance under SGSY for sericulture. This proposal was sanctioned and a project cost of Rs.2,40,000 was disbursed to the SHG members.

• Utilizing this amount, several members procured land on lease basis for mulberry cultivation.

• The members bought rearing appliances and constructed rearing sheds. Diesel engines were also purchased for operating motors for irrigation purposes.

• They generate 7 to 8 harvests in a year and since all the family members are involved in the trade, each family is able to earn a weekly wage of Rs.1,500

• Apart from economic development, the members are also actively involved in social activities.

• They procured saplings free of cost from the Government and planted them in their village and they are also creating awareness about the importance of rural sanitation.

• Besides, they have donated utensils for the children in the noon meal center functioning in their village.

• Owing to their reported success, the District Collector and the Project Officer have also visited this SHG and appreciated the members on its effective functioning.

• Thus, this village is slowly being transformed from a socially and economically backward village into a progressive village on the path towards development.

CONCLUSION

• Women’s entrepreneurship is both about women’s position in society and about the role of entrepreneurship in the same society.

• Women entrepreneurs faced many obstacles specifically in market their product that have to be overcome in order to give them access to the same opportunities as men.

• Increased participation of women in the labour force is a prerequisite for improving the position of women in society and self-employed women.

• Rural women can do wonders by their effectual and competent involvement in entrepreneurial activities.

• The rural women are having basic indigenous knowledge, skill, potential and resources to establish and manage enterprise.

• There should be knowledge regarding accessibility to loans, various funding agencies procedure regarding certification, awareness on government welfare programmes, motivation, technical skill and support from family, government and other organization

• More over Formation and strengthening of rural women Entrepreneurs network must be encouraged.

• This network helps to give lectures, printed material imparting first hand technical knowledge in production, processing, procurement, management and marketing among the other women.

• This will motivate other rural women to engage in micro entrepreneurship with the right assistance and they can strengthen their capacities besides adding to the family income and national productivity.

References

• Dr Rana Zehra Masood,” EMERGENCE OF WOMEN-OWNED BUSINESSES IN INDIA-AN

INSIGHT” retrieved from http://www.researchersworld.com/vol2/PAPER_23.pdf

• http://studypoints.blogspot.in/2011/07/what-is-cottage-and-small-scale_1765.html

• http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_bk_pb_151_en.pdf

• http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document11942010230.524502.doc&fcategory=Articles&AId=2475&fref=repec

• http://erode.nic.in/shgsuccess.htm• http://hproychoudhury.hubpages.com/hub/Cottage-In

dustry-is-the-Lifeline-for-Poor-Villagers-in-India#

• http://business.gov.in/manage_business/small_scale_industries.php

THANK YOU