EDP Notes

The basic problem of a woman entrepreneur is that she is a woman. Women entrepreneurs
face two sets of problems specific to women entrepreneurs. These are summarized as follows.
1) Shortage of Finance: Women and small entrepreneurs always suffer from inadequate
fixed and working capital. Owing to lack of confidence in women’s ability, male members in the
family do not like to risk their capital in ventures run by women. Banks have also taken negative
attitude while lending to women entrepreneurs. Thus women entrepreneurs rely often on personal
saving and loans from family and friends.

2) Shortage of Raw Material: Women entrepreneurs find it difficult to procure material
and other necessary inputs. The prices of many raw materials are quite high.
3) Inadequate Marketing Facilities: Most of the women entrepreneurs depend on
intermediaries for marketing their products. It is very difficult for the women entrepreneurs to
explore the market and to make their product popular. For women, market is a ‘chakravyuh’.
4) Keen Competition: Women entrepreneurs face tough competition from male
entrepreneurs and also from organized industries. They cannot afford to spend large sums of
advertisement.
5) High Cost of Production: High prices of material, low productivity. Under utilisation of
capacity etc. account for high cost of production. The government assistance and subsidies would
not be sufficient for the survival.
6) Family Responsibilities: Management of family may be more complicated than the
management of the business. Hence she cannot put her full involvement in the business
.Occupational backgrounds of the family and education level of husband has a direct impact on the
development of women entrepreneurship.
7) Low Mobility: One of the biggest handicaps for women entrepreneur is her inability to
travel from one place to another for business purposes. A single women asking for room is looked
upon with suspicion. Sometimes licensing authorities, labour officials and sales tax officials may
harass them.
8) Lack of Education: About 60% of women are still illiterate in India. There exists a
belief that investing in woman’s education is a liability, not an asset. Lack of knowledge and
experience creates further problems in the setting up and operation of business.
9) Low Capacity to Bear Risks: Women lead a protected life dominated by the family
members. She is not economically independent. She may not have confidence to bear the risk
alone. If she cannot bear risks, she can never be an entrepreneur.
10) Social Attitudes: Women do not get equal treatment in a male dominated society.
Wherever she goes, she faces discrimination. The male ego stands in the way of success of women
entrepreneurs. Thus, the rigid social attitudes prevent a woman from becoming a successful
entrepreneur.
11) Low Need for Achievement: Generally, a woman will not have strong need for
achievement. Every women suffers from the painful feeling that she is forced to depend on others
in her life. Her pre-conceived notions about her role in life inhibit achievement and independence.
12) Lack of Training: A women entrepreneur from middle class starts her first
entrepreneurial venture in her late thirties or early forties due to her commitments towards children.
Her biggest problem is the lack of sufficient business training.
13) Lack of Information: Women entrepreneurs sometimes are not aware of technological
developments and other information on subsidies and concessions available to them. They may not
know how to get loans, industrial estates, raw materials etc.