Problems and Prospects of Women Entrepreneurship with special reference to MSMEs in the State of Uttar Pradesh

Abstract

Uttar Pradesh or Nation, any nation, to grow today within the world of intense competition, requires entrepreneurs at the core of the economic development. Entrepreneurial activities and entrepreneurship has been a male dominated activity since ages. However, due to modernisation and advancement of knowledge and technology, women became aware of their abilities and better educational facilities have enabled them to venture into male dominated space. Women today have emerged as key players in economic development of their nations. However, this transformation of society is much from over and therefore, women entrepreneurs not only face difficulties in all phases of managing an enterprise. In a country like India where almost 50% of population are women, the number of women entrepreneurs is just 13.36%. Women in India face a variety of socio-economic hurdles while venturing into their own enterprises. Hence, the paper discusses the status of the women entrepreneurs and their importance to the Indian economy. Also, an endeavour is created to spot the challenges faced by these women entrepreneurs, by reviewing various literature and provide valuable suggestions for overcoming these obstacles.

Full text

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) ISSN 1681 8997
Problems and Prospects of Women Entrepreneurship with
special reference to MSMEs in the State of Uttar Pradesh
Sandhya Singh
Rajiv Academy for Technology and Management, Mathura
Rubee Singh*
IBM, GLA University, Mathura, U.P., India
Jaya Bhavya K.
HR Manager, Curl Tech Group, Bangalore, India
Jacinta Dsilva
School of Business Management, University of Balamand, Dubai
Rajesh S.
Indian Forest Service, NITI Aayog, New Delhi, India
A. Arun Kumar
ICFAI Law School, Hyderabad, India
Abstract: Uttar Pradesh or Nation, any nation, to grow today within the world of
intense competition, requires entrepreneurs at the core of the economic
development. Entrepreneurial activities and entrepreneurship has been a male
dominated activity since ages. However, due to modernisation and advancement of
knowledge and technology, women became aware of their abilities and better
educational facilities have enabled them to venture into male dominated space.
Women today have emerged as key players in economic development of their
nations. However, this transformation of society is much from over and therefore,
women entrepreneurs not only face difficulties in all phases of managing an
enterprise. In a country like India where almost 50% of population are women, the
number of women entrepreneurs is just 13.36%. Women in India face a variety of
socio-economic hurdles while venturing into their own enterprises. Hence, the
paper discusses the status of the women entrepreneurs and their importance to the
Indian economy. Also, an endeavour is created to spot the challenges faced by
these women entrepreneurs, by reviewing various literature and provide valuable
suggestions for overcoming these obstacles.
Keywords: Entrepreneurship, Women Entrepreneurs, MSME
1. Introduction
An entrepreneur could also be a one that is involved in economic activity and takes an
initiative to start a business with innovative ideas. Entrepreneurship provides huge
* Corresponding author. Email: dr.rubeerajput@gmail.com

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 50
opportunities for self - expansion also as serves the society. Entrepreneurs provide vast
employment opportunities by fixing Micro, Small and Medium enterprises (MSMEs) in
urban, semi - urban and rural areas for uplifting the living standard of individuals. The
phenomenon of women entering the entrepreneurial arena is within the first stage as
businesses are male dominated and women have always engaged in homely affairs, i.e.,
cooking and nurturing the family. Over the years, the scenario has changed and thus
women have come to the forefront as not only memorable but also as inspirational
entrepreneurs.
In the past few years, women entrepreneurs are involved significantly in social progress of
the country due to industrialization and urbanization as well as improvement in education
and awareness of women rights. This exposed them to higher opportunities for the state,
society and thus the family. Fixing their own ventures not only makes them self-sufficient
and independent but also enables them to form their own social identity. Women have
entered into manufacturing, service and trading sector and thus their role has gone beyond
some selected professions. Clearly, within the economic development of the state, the role
of a women entrepreneur has become significant. This has resulted in creating a healthy
environment for establishing and smooth running of women led MSMEs by the
government of India. There are several steps taken during this direction by the
government within the recent past and as a result, the quantity of enterprises, owned by
women, has been steadily increasing. Nearly 10% of the MSMEs in India are owned by
women entrepreneurs.
Women are the pillars of society and when women are empowered, the entire world is
empowered. Ministry of Micro, Small and Medium Enterprises (MSME) is empowering
women entrepreneurs through its different schemes helping women spark their talent and
build their own identity. 1.38 lakh projects are founded by the women entrepreneurs under
Prime Minister‟s Employment Generation Programme (PMEGP) Scheme since 2019.
The illiterate and semi-literate women entrepreneurs from both rural and urban areas, have
availed benefits of certain schemes under Indian government to assist start or run a
corporation. The story of two women entrepreneurs- Priyashri Mani and Nishita Vasanth
starting their enterprise in Pali hills, Kodaikanal district of Tamil Nadu, India by availing
loans under Scheme of Indian government is an example of the steady but sure mindset
shift among the stakeholders within the MSME and start-ups ecosystem. Since
logistics becomes a major challenge, and also the honey harvesting tribe based out of Pali
Hills, the duo scaled up their operations by hiring more women and
ended fitting „Hoopoe‟- honey harvesting start-up. Bringing honey to the doorstep, the
story gives an insight to the budding women entrepreneurs within the country with women
donning several roles starting from rainmakers to change makers and social capitalists.

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 51
2. Status of Women Entrepreneurs in India
Indian economy is not remote from this creative disruption. There was a time in India
when Lijjat papad and Amul co-operatives were some faces of women driven initiatives.
But today, we have women not limited to small or medium enterprises, rather, they have
traversed their boundaries, spread their wings and have entered into a wider, experimental
arena of robotics, electronics, computing, space sciences and plenty more. They are trying
hard to interrupt the ceiling imposed on them. But, statistically speaking, the country is
much far from any idealistic situation.
India features a total of 58.5 million entrepreneurs and 8.05 million of these are women
entrepreneurs, which adds up to only 14% women entrepreneurs in Indian business
settings. Interestingly, it highlights that 79% of women owned businesses are self financed
and are relatively smaller in size and scale. This justifies the low contribution of Indian
women to the GDP (17%), which is way below the worldwide average of 37% and is
further beaten by respective figure for geographic region (39%). We are a rustic of 1.3
billion people which has ripened demographic dividend. In next 5-10 years, we will have
150 million students lined up to enter the workforce of which half are going to be women.
So, what's our roadmap to determine that a better portion of those women become job
creators instead of job seekers?
Conflict between work and domestic commitment pre-dominates the scene with women
being epitomized as a first-rate care giver within the family. Consistent with 2011 census,
literacy rate of women is 65.46% but, the matter aggravates when combined with lack of
awareness about vocational, technical skill, work experience, market knowledge which
forms prime ingredients of developing a productive and sustainable business. Access to
finance could be a common challenge faced by women entrepreneurs but lack of monetary
literacy and knowhow about availability of recent financial products further worsens the
matter.
Being an entrepreneur is that the psyche frame of someone. It can't be trusted upon by an
outdoor force. It is a conscious decision which is taken naturally, supported the encircling
and therefore, the experiences at hand. Therefore government should play role of a
facilitator to produce a level playing field to women entrepreneurs to achieve the
competitive atmosphere. Endeavours like National Skill Development Policy provide skill
training, entrepreneurship development and vocational training to instil the needed
qualities and has transformed lives of quite 35.56 lakh women through nationwide training
programmes. Under Stand-Up India scheme, funding in variety of loan could also be
provided to a minimum of one women entrepreneur per bank branch between INR. 10 lakh
- 1 crore for fitting a Greenfield project in manufacturing, trading or services sector. As of

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 52
November 2019, INR. 14000 crores has been disbursed to women entrepreneurs. Under
Pradhan Mantri MUDRA Yojana, collateral free loan of up to INR. 10 lakh will be availed
by entrepreneurs for activities allied to agriculture in non-agriculture sector.
For almost a year and a half, being a part of Women Entrepreneurship Platform (WEP),
NITI Aayog, one of the author had the chance of working for and interacting with women
entrepreneurs from across the country. There are several schemes of Central and
government benefitting women entrepreneurs; but most are working in their respective
silos. This platform was developed with a thought to become the holistic cognitive content
for women entrepreneurs and supply them information about networking, mentorship and
financing at one place. It‟s six verticals comprising of Incubation and Acceleration,
Compliance, Funding and financial assistance, Marketing, Skilling and Training and
Social Entrepreneurship are designed to handhold women in their entrepreneurial journey
ranging from embryonic stage and bridge information asymmetry by providing right,
authentic information to assist them make a right choice. Today, it's an entrepreneurial
base of over 13000 women. Atal Innovation Mission (AIM) is another initiative of NITI
Aayog which is doing outstanding job to push a culture of innovation and entrepreneurship
throughout the country. AIM & WEP synergize their efforts from time to time to support
and handhold entrepreneurs in their journey. State governments may also integrate their
respective initiatives with these platforms.
2.1. Worst hit by pandemic
Total early-stage entrepreneurial activity rate is that the percentage of working-age
adults in a population who are either nascent entrepreneurs or owner-managers of
recent businesses. In India, the female total early-stage entrepreneurial activity rate as
compared to the male total early-stage entrepreneurial activity rate fell from 79.6% to
62.1% between 2018 and 2019, as per Women Entrepreneurs as Powerhouse of Recovery,
a 2020 IWWAGE report. This was despite a government push for the MSME sector in
2018. Up to 95% of all MSMEs in India are micro-businesses and for girls, this percentage
is even higher – 98% of women-led MSMEs are within the micro category, as per the
2019 International Finance Corporation report. And these were the vulnerable businesses
that folded up first within the pandemic-led crisis, as we explain. There are approximately
6.3 crore MSMEs in India and women run about 80 lakh. MSMEs are critical to India‟s
economy – they're the second biggest employers after agriculture and contribute to over
30% of the GDP.
3. Need of Women Entrepreneurship in India
Encouraging women entrepreneurs is important for economic process as their participation
incorporates a direct concerning improving the quality of living, helps in job creation and

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 53
allows them more social independence that bring forth better outcomes at the community
level.
Women entrepreneurs are growing in India today we've got 13.5-15.7 million women-
owned enterprises, representing 20% of total enterprises, a rise from 14% a decade back.
However, the labour force participation rate (LFPW) is one amongst all-time low in India,
compared to other emerging countries like Brazil which is at 61% and Indonesia at 54%,
while developed countries like UK and US which are at 73% and 67% respectively.
Further, unemployment is higher in women by 2-3x across different cohorts.
Also, women are likely to be impacted more from the tech and AI revolution as there
are the next percentage of girls in operational and data-centric jobs which will be first to
induce mechanised, this is often in spite of research that given equal opportunities, women
businesses perform at par with men-led enterprises.
4. How can women entrepreneurship make a difference?
4.1. Enable women to play a key role in economic development instead of a
peripheral part
Women entrepreneurs can play a very important role to drive economic process by starting
new businesses and contributing to the advances in various key goals like per capita
income, innovation, the quality of living and community development.
4.2. Accelerate job creation
Accelerating women entrepreneurship from the present 20% to 30% can create over 30
million women-owned enterprises by 2030. This will result in large scale job creation in
India, of 150-170 million jobs, which is over 25% of the new jobs required for the whole
working-age population, from now until 2030.
4.3. Social independence and more women within the ecosystem
Encouraging women entrepreneurship can result in disproportionate social outcomes
through more conscious birth prevention choices, increased target childcare, education and
health for self and family. Further, women in power can contribute towards getting more
women into the workforce and thus help to drive gender diversity.
4.4. Drive innovation which is concentrated on women, child and mother care
Women entrepreneurs have an improved understanding of the necessity gaps associated
with women, mother and childcare. They are able to build innovation-driven businesses in
these fields that make better products and improve access.
Until some years back, there have been few Indian companies in mother and child care
products. Women had to shop for expensive imported products or compromise on quality.

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 54
Now there are several women-led Indian brands that are ready to earn the trust and loyalty
of consumers.
Some of the opposite businesses born out of this deep need gap understanding include
natural beauty products platforms, early years education ecosystem, female hygiene
products, accurate online shops for hand-picked products and handmade traditional
products online aggregators which promote women-made products.
5. Problems
5.1. Family and work life
Women in India are emotionally attached to their home and family. They are expected to
care for all the household work, taking care of the children and other members of the
family. Under such a scenario it is very difficult to effectively and efficiently organize and
manage a corporation.
5.2. Male Dominated Society
There are similar privileges for men in our constitution and where men are not present in
true equality in rural areas. Women is not considered as capable as men. Individuals in
rural areas are generally prejudiced by the actual fact that where man is barely capable of
domestic work. The entry of women into the company must be approved by the family
head. Entrepreneurship was often considered a male circle, and girls do the mining. All
phase of this kind becomes a barrier within the expansion of girls‟ entrepreneurs. (Kumar,
2015)
5.2. Cultural Barrier
Family and private expectations usually act as a powerful cultural barrier to success within
the business profession of women entrepreneurs. Only a little number of individuals are
ready to handle both home and company efficiently, allowing them time to full fill all their
duties in priority.
5.3. Lack of self-confidence
In India, where people lack self-confidence in power and skills, relations, and thus society,
are unable to face alongside their development in organization. This example is evolving
to a particular degree with Indian women and yet faced with an incredible modification to
boost the pace of growth in entrepreneurship. (Kumar, 2015)
5.4. Lack of entrepreneurial aptitude
Lack of entrepreneurial aptitude and behaviour is one among the private barriers.
Generally, the upbringing of girls is not equal to the boy‟s in many houses in the Indian
society. Therefore, the boys in most case need no entrepreneurial training but girls on the
other hand lack the skill even after number of entrepreneurship development programmes

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 55
and training, workshops, and seminars. Only some women start and runs the business
after improving on their pessimistic attitude towards entrepreneurship or compulsion and
increase risk bearing capacities and calibre.
5.5. Market Related Barrier
Marketing is an organizational function that makes, communicates and delivers value to
customers. However, strong competition, weak marketing network, poor sales strategies,
delays in payment by clients, lesser marketing experience and rapid change in demand and
technology are the factors that pressure the women enterprises to retort quickly to
changing market scenario.
In general, Women - owned MSMEs are surviving under stiff competition from establish
firms and male entrepreneurs in term of cost, quality, standards and meeting the dynamic
demand of consumers. Also, male entrepreneurs have much experience, knowledge of the
market and adopt new technology in their production. But as women start their business
with small saving and little investment thus, they do not have adequate money to spend on
the advertisement of their products and services.
Thus, females entrepreneurs are doing limited marketing activities, mostly depends on
middle men i.e. distributors, retailers who take a serious part of profit margin resulting into
less profit for the firm. This results into less money for expansion and up gradation of
technology. Inferior and inefficient technology produces low quality and costlier products
making them uncompetitive within the market which is one among the key reasons for
failure of the business.
5.6. Skill Related Barrier
Higher technical and general managerial skills are the standard which an entrepreneur
obtains during his or her entrepreneurial training. This permits the entrepreneur to exploit
better career or business opportunities. However, women entrepreneurs in India and
several other developing countries have been facing barriers associated with skill i.e. lack
of prior managerial and industrial experience, lack of technical and general skill,
inadequate and timely entrepreneurial training and education. These barriers create
obstacles within the growth and development of women - owned enterprises. Also, women
entrepreneurs in India do not having sufficient time to boost their skill related ability by
attending entrepreneurial programmes because of several social barriers. Government and
Ministry of MSME have taken several initiatives by conducting:
 Entrepreneurship Development Programmes (EDPs), Entrepreneurship cum Skill
Development Programmes

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 56
 (ESDPs) and Training of Trainers (ToTs) programmes within the areas of
Entrepreneurship and Skill Development.
5.7. Other barriers: a number of opposite barriers caused by the barriers mentioned
above or thanks to a mixture of above barriers are mentioned below.
 Obsolescence of Technology/Technological Development Problems
 Legal Formalities and Shortage of Raw Materials
 Lack of presidency Support/ Cumbersome Government Procedures
 Lack of Availability of Motivational Factors
 Direct and Indirect Tax-related Issues
 Location of Business and High Turnover of Staff
 Lack of Awareness about Government Schemes and Policies.
6. Conclusion
Today‟s women have ventured into manufacturing, trading and repair sector from the
sooner day where they were limited only to the domestic jobs. The participation of girls
within the entrepreneurial activity makes them not only self – confident but also self -
dependant. Thus, it provides them a chance of not only contributing to the economic
development of the state, but also enables them to present an improved life to their family.
The women structure for pretty much 50% of the population in India, however, only 10%
of the firms within the MSME sector are owned by them. Hence, if supported, the women
entrepreneurs can provide a far – needed boost to the economy by creating new
employment opportunities, although, the women - owned firms have quite doubled in the
past decade.
A proper environment with support from society, primarily their circle of relatives, and
government can solve many of the problems. Government has extended several initiatives
and schemes to assist women entrepreneurs to beat these barriers. Various initiatives are
taken in 7th, 8th and 9th five - year plans by making the women entrepreneurs a target
group and developing schemes around this group. There are numerous schemes, wherein
women receive additional benefits/concessions/assistance like PMEGP; also M/o MSME
is executing two specific schemes for women, i.e., TREAD and Mahila Coir Yojana.
Mahila Vikas Nidhi and Rashtriya Mahila Kosh were funds setup in accordance with the
provisions within the 9th five year plan for providing financial assistance to the women
entrepreneurs.
Also, with pedagogy and increasing literacy rates, the view of the society is additionally
changing towards venturing of women into entrepreneurial activities. Within the
constantly changing scenario, the government should not only spread awareness at an

Empirical Economics Letters, 20 (Special Issue 1) (September 2021) 57
outsized scale about various initiatives for women entrepreneurs but also setup dedicated
centres for helping women entrepreneurs. Also, one window setup for women
entrepreneurs staffed with well informed and skilled personnel could help the women
entrepreneurs to manage the cumbersome government procedures, manage tax related
issues and complete legal formalities. Designing training programmes and workshops,
more relevant to today‟s scenario together with programmes addressing needs of the
women entrepreneurs at various stages of the firm‟s life cycle would immensely help them
by equipping them with skills and knowledge required to make a successful firm.
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