Chapter V GROWTH OF WOMEN ENTREPRENEURIAL UNITS IN DINDIGULshodhganga.inflibnet.ac.in/bitstream/10603/28897/11/11_chapter5.pdf · GROWTH OF WOMEN ENTREPRENEURIAL UNITS IN DINDIGUL

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Chapter V

GROWTH OF WOMEN ENTREPRENEURIAL UNITS IN DINDIGUL

5.1 Introduction

5.2 Consumption of Raw materials

5.3 Number of Persons Employed

5.4 value of sales turnover

5.5 Sales promotion Expenses

5.6. Working capital

5.7 Own fund

5.8 Long term Borrowings

5.9 Factors Influencing

5.10 women empowerment scale

5.11 Problems

5.12 Summary

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203 5.1 INTRODUCTION

The emergence and development of women enterprise units

has an impact on the overall enterprise development in India. In simple

terms, growth implies strength and stamina and it enables a business

enterprise to face, challenges, competitions and hardships. Growth also

ensures the survival of the business even in adverse and hard times. The

influencing factors may have both a positive and a negative impact on the

growth of small scale industrial units. Positive factors constitute the

facilitative and conductive conditions for growth, whereas negative factors

create an inhibiting milieu. This chapter discusses some of the major factors

which influence the growth of women enterprise units in Dindigul. For

analytical purposes, nine growth factors, viz., raw material consumed,

number of persons employed, profit turnover, fixed assets, place of sales,

promotion of sales, financing working capital and own funds are taken into

account.

Data relating to these factors were collected for a period of 10

years from 1997-1998 to 2006-2007 from 162 sample units. For each

individual factor, compound growth rate has been calculated and further

analysis is made on the basis of the compound growth rates.




204 5.2 CONSUMPTION OF RAW MATERIALS

The establishment and growth of any enterprise unit depends on the

extent and type of materials used. The entrepreneurs have to ensure timely

and adequate availability of raw materials for continuous production.

Women enterprise units are meant for the better utilization of local

resources. As far as Dindigul is concerned, women enterprise units acquire

most of the raw materials from within the district. Dindigul is noted for paper

based units, and miscellaneous products are met locally and the remaining

from neighbouring districts like Coimbatore, Tirunelveli, Madurai and other

southern districts. Dindigul is also noted for food and agro based units and

they have been developed mainly in and around Dindigul where there is a

concentration of coconut cultivation, the prominent places of coconut

cultivation include Thadicombu, Shozhavandan and Pattiveeranpatti.

Basically Dindigul district is agriculture –oriented and it produces

paddy, millet, sugarcane, cotton, tobacco, groundnut, banana, grapes, mango,

guava, tomato, onion, cauliflower, chilies, potato and tamarind.

This district also produces forest produces like poles, blue gram, wattle

wood, wattle bank, gallnut, timber, firewood and bothigram which show the

scope for new forest –based units. As far as mineral resources are concerned

calcium sulphate, feldspar, quarry and lime stone are available here. Besides




205 building stones and red granite are also available in taluks like Natham and

Palani. Since Dindigul District is equipped with many raw material resources,

women enterprise units can make use of these. Among the various sample

units, agro- based units 31, trading based units 45, service based unit 64,

paper and leather based 3, and miscellaneous units 19, are buy their

requirement from the local resources i.e., in and around Dindigul or within

Dindigul District.

The requirement of raw material may very from concern to

concern depending upon the products. In some cases, the major component of

the total production cost is raw material whereas in other cases the major

expense may be of labour. For instance the percentage of raw material cost to

the total production cost is comparatively higher in the case of tanneries. i.e.,

39.51 per cent, trading based units is 27.78 per cent, agro based units is 19.14

per cent, 11.72 per cent in miscellaneous units and low level of 1.85 per cent

in paper based units.

Since raw material is a main requirement for production it has

been taken as a variable for measuring the growth of women enterprise units

studied. Data have been collected from 162 sample women enterprise units

regarding the consumption of raw materials in terms of rupees for the period

from 1997-98 to 2006-07. The compound growth rate has been calculated for




206 all the 162 sample units regarding the usage of raw materials. The calculated

compound growth rate (CGR) ranges from – 19.76 per cent to 25.43 per cent

and the same has been tabulated and grouped as below.

TABLE 5.1

Growth Rate of the Consumption of Raw Materials in the

Sample enterprise units

SI.NO Range of CGR Number of Units

Percentage

1 -20 to -10 4 2.46

2 -10 to 0 12 7.41

3 0 to 10 112 69.13

4 10 to 20 30 18.52

5 20 &above 4 2.46

Total 162 100.00

Source: Primary Source

From Table 5.1 it is clear that compound growth rate of only 4

(2.46 per cent) sample units’ is -19.76 per cent. This is the highest negative

growth rate. On enquiry, it was learnt that in the past paper and leather bags

units were dominating the market and enjoying monopoly status. But later,

because of competition, they were forced to reduce production and hence the

raw materials requirement. Another 12 (7.41 per cent ) i.e., 4 toys making




207

units, 3 hair oil products units, 2 washing powder units 2 washing soap

units,1 artificial flower making units – also have recorded negative growth

rate ranging from -10 to 0 per cent because of stiff competition and inability

to sell to other countries and states. The remaining 146 sample units have

positive compound growth rate. A major portion of sample units 112(69.13

per cent) units – have compound growth rate ranging from 0 to 10 per cent.

30 (18.52 per cent) sample units have compound growth rate ranging from

10 to 20 per cent. Four units (2.46) two book binding, and two Xerox

copying units – are innovative units in Dindigul. They have a tremendous

compound growth rate of above 20 per cent.

5.3 NUMBER OF PERSONS EMPLOYED

The solution to the problem of unemployment due to heavy

population growth can be found in the development of women enterprise

units which occupy a unique position in the economic life of the Indian

masses. These are best suited for solving the unemployment and

underemployment problems in rural areas.

It provides more employment with less investment as compared to the

large enterprise sector, where the units are highly capital intensive and

highly mechanical. It has the potential to provide employment to a large

proportion of the industrial and agricultural labour force.




208

As far as Dindigul is concerned labour – intensive units and

labour and capital – intensive units are in existence. More of the enterprise

is labour intensive nature and not mechanical level. Because, trading

concern is not only trading base it is also labour base. Like wise agro- based

units are labour intensive. For example in the case of food processing units,

vegetable production, sweet making, hotels units, the main processing is

done by human beings only. If we take leather and leather based units they

provide employment to a large number of persons since the cleaning process

is being done by workers.

On the other side, certain women enterprise units in Dindigul are both

labour and capital intensive. That is, the main functions are done by

mechanical operations and the processing is assisted by workers. For

example in the case of cool drinks manufacturing, rice mill and other main

processing work are done by machines. They depend less on workers.

Women enterprise units help in utilizing local skills and local

resources. As per the survey, many of the units get their labour force from

within Dindigul District. Only a few units acquire their resources from other

states. Tailoring, beauty parlor units are getting their skilled women from

local people.




209

Since any unit cannot be run without labour, the number of persons

employed in women enterprise units has been taken as a measure of the

growth of women enterprise units in Dindigul. The compound growth rates

for the number of persons employed in the 162 women enterprise unit for the

period from 1997-98 to 2006-2007 are presented in Table 5.2.the compound

growth rates range from -9.56 per cent to 14.83 per cent.

TABLE 5.2

Growth Rate of Number of Persons Employed

in Sample enterprise units

SI.NO Range of CGR Number of Units

Percentage

1 -10 to -5 6 3.70 2 -5 to 0 27 16.67 3 0 to 5 75 46.30 4 5 to 10 52 32.09 5 10 and above 2 1.23 Total 162 100.00 Source: Primary Source

It is observed from Table 5.2 that six (3.70 per cent) sample women

enterprise units have a negative growth rate ranging between -10 per cent and

-5 per cent. Two tailoring, two xerox copying and two book binding units fall

in this category. Another 27 units( 16.67 per cent) with negative growth rate

includes 5 food processing units, 5 trading units , 7 service based units,7

paper units and leather based units,3 miscellaneous units. The compound




210 growth rate of 75 (46.30 per cent) units are positive upto 5 per cent followed

by 52 (32.09 per cent) units with a positive compound growth rate between 5

per cent to 10 per cent. Only 2 per cent of sample units (1.23 per cent)

including a miscellaneous and hotels units have a very good compound

growth rate of above 10 per cent.

5.4 VALUE OF SALES TURNOVER

Marketing is one of the most important requirements for the

accelerated development of any production process. Every women

entrepreneur has to find profitable market for her products or she has to

select saleable products. A market is nothing but a set of actual and potential

buyers of a product. In olden days a producer could sell any product. But

nowadays this concept has changed entirely. The producer has to produce

and sell as per the expectations of the consumers. Thus the entrepreneurs

have to identify the needs of consumers, design appropriate products,

promote them and store and transport them. They should be made aware of

the extent and location of market opportunities for their products. They need

to be exposed to the market requirements of their products and to bring out

necessary improvements and adaptations in their products.

Selling of any product is an important function of any unit since only

this function generates income. Other functions involve expenditure only.




211

While making sales, the enterprise units meet stiff competition. Some

persons are able to manage it whereas others are not. Because of the free

trade policy, marketing of a product is an uphill task to any women

enterprise unit.

Enterprise units are helped by the government in purchasing and

marketing activities. The SIDCO also assists in marketing of SSI product to

state departments and corporations. The Government also helps the SSI units

in marketing by opening new showrooms, encouraging them in participating

in fairs and exhibitions and undertaking genetic publicity to popularize SSI

products. It is very disheartening to note that only a few sample units have

availed the marketing assistance rendered by the government due to difficult

procedures.

Over and above government assistance, the entrepreneur by herself

can find profitable markets for her products. This may depend on different

channels. The entrepreneur can either sell directly to the consumers or

through agents or dealers, or through wholesalers or through retailers. Most

probably the entrepreneur wants to avoid a lengthy channel of distribution

and wants to have shorter channel of distribution which will lead to earn

more profit and enable him to find the consumer preferences instantly. The

researcher could conclude that a majority of the units market their products




212

directly to the consumers. It may be said that they produce as per their orders

or as per their requirements.

The products can be sold to different areas. The women enterprise

units can sell the products either in the local market or within the state or

within the district in other areas. But as far as this sample survey is

concerned, no unit is exporting products. All the units market their products

within the country, mostly within the state.

Only a few units sell their products like, transformers to

government departments. Some products including papers cups, stationery,

chamber bricks and the like are supplied to banks, government schools and

institutions. Since sales decide the fate of any concern, the value of turnover

has been taken as other important growth variables. The compound growth

rates have been computed for the 162 sample units for the period 1997-1998

to 2006-2007. The rates range from -6.89 to 26.57 the same has been

prescribed in Table 5.3




213

TABLE 5.3

Growth Rate of the Sample Enterprise units in Sales Turn Over

SI.NO Range of CGR Number of Units Percentage

1 -7 to 0 13 8.02

2 0 to 7 77 47.53

3 7 to 14 43 26.54

4 14 to 21 18 11.11

5 21 & above 11 6.79

Total 162 100


From table 5.3 one can clearly state that 13 units have negative

growth rates upto -7 and the remaining 149 units have positive growth rates.

The negative growth may be due to heavy competition or because of

reduction in the demand due to the availability of alternatives in the market.

A major portion of the sample units, 77 units (47.53 per cent), fall in the

category of 0-7 per cent. 43 units (26.54 per cent) in the group of 7-14 per

cent and 18 units (11.11 per cent) fall in the group of 14 to 21 per cent. Only

11 units (6.79 per cent) have attained growth rate of 21 and above.




214 5.5 SALES PROMOTION EXPENSES

In order to stimulate sales and to win the competition, sales promotion is

an effective sales tool. Every entrepreneur who wants to augment her sales

value should take due cognizance of established demand as well as promoted

demand. Established demand relates to the volume of sales which emanates

without conscious efforts. In contrast, promoted demand is the volume of sales

which could be attained as a result of the promotional activities of the

entrepreneurs.

Sales promotion attracts customers and helps to get them to purchase

their product or service. At the same time the quality of the product or

service should be maintained. Sales promotion may be made by providing

samples, coupons, money refund orders, price-off, premium contests, trading

stamps, demonstration, buying allowances free goods, merchandise

allowances, bonuses, and advertising.

The new entrepreneur should make every endeavour to win the

support of the wholesalers and retailers. The wholesaler can be encouraged

to handle the products by offering discounts and commissions without

eroding profit. The entrepreneur should develop promotional programmes

making the marketing strategy and distribution channels effective. But the

SSI sector generally experiences a lack of resources for sales promotion and




215

advertising. And most of the women enterprise units feel that advertising is

very costly or unnecessary. As per the sample survey, entrepreneurs give

least importance to promotional expenses because they have an established

market of their own or they have a good reputation.

Many other entrepreneurs spend less, advertising through calendars,

stickers, shoppy covers, advertising in local papers and the like. But they

usually allow sales commissions and discounts to mediators. Anyhow the

total expense on sales promotion is very low. With the help of sales

promotional measures, one can make others aware of one’s products. In the

competitive world one cannot survive without advertisement. With increased

amount spent on sales promotion, definitely one can market one’s products

and increase the sales volume very easily. Thus sales promotion expenses

can be considered a vital growth variable for this study. The calculated

compound growth rates of the 162 sample units for the period from 1997-98

to 2006-2007 are grouped and presented in table 5.4 the growth rates ranges

from -11.64 to 34.90.




216

TABLE 5.4

Growth Rate of the Sample Enterprise units in Sales Promotion Expenses


1 Below 0 12 7.40

2 0-10 89 54.94

3 10-20 51 31.48

4 20-30 8 4.93

5 30 & above 2 1.23

Total 162 100


Table 5.5 shows that 12 sample units (7.40 per cent) out of 162 have a

negative compound growth rate. It means that they give less importance to

sales promotion. Eighty nine units (54.94 per cent) belong to the compound

growth rate of 0 to 10 and 51 units (31.48 per cent) belong to the group of

10-20 . Only 8 units (4.93 per cent) to the group of 20-30 per cent it shows

that they are ready to spend more and more money on sales promotion. And

2 units (1.23 per cent) belong to 30 and above per cent.




217 5.6 working capital

Working capital is the amount of funds required to carry out the

day-to-day operations of an enterprise. It may also be regarded as that portion

of the total capital of an enterprise employed in its short-term operation. These

may include stocks of raw materials, work- in – progress, finished goods,

sundry debtors and short term investments. Working capital is also called

circulating capital or revolving capital since the money/ capital circulates in

various forms of current assets. Women entrepreneurs units get the working

capital they require from commercial banks, co- operative banks and state

financial corporations. Banks are the main providers of working capital

requirements.

Banks have a leading role to play in financing women

entrepreneurs units. They have to act as catalysts for the growth of women

entrepreneurs units. Short term loans to meet working capital requirements

cover cost of raw materials, components, spares and processing of raw

materials, marketing of products and the like. These short term loans are also

availed by the units for meeting the day –to –day requirements. Liberal credit

facilities like cash credits, over draft, demand loans, bills purchased and

discounting of bills and export loans are available. There has been a great




218 increase in the assistance to women entrepreneurs units particularly through

public sector banks after nationalization.

Even though many facilities are available, these entrepreneurs are of

limited means and mostly organize women entrepreneurs units on proprietary

or partnership basis with their own capital or borrowings from friends and

relatives. They do not generally have easy access to institutional sources of

finance.

Some concerns need substantial stock to be maintained, for example,

food processing units have to maintain substantial stock of raw materials as

well as stock of finished goods. In the case of service units, they have to

maintain a lot of stock for their service activity and trading concern also. But in

the case of leather paper cup units involving leather less stock could do.

If a concern does more cash sales, than it could invest fewer amounts

on debtors, while a concern with more credit sales has many debtors. When a

business needs more amount for meeting day – to – day affairs, more cash will

be needed and vice versa. Working capital is an important indicator of growth

because; a unit can survive only when it has sufficient working capital even

though it has all other infrastructural facilities. Table 5.5 shows the compound

growth rates of working capital requirements of the 162 samples units for the




219 period 1997-1998 to 2005-2006 and the compound growth rate ranges from -

6.21 to 32.57.

Table 5.5

Growth Rate of the Working Capital


1 -10 to 0 4 2.47

2 0 to 10 88 54.32

3 10 to 20 59 36.42

4 20 to 30 6 3.7

5. 30 and above 6 3.7

Total 162 100.00

From table 5.5, it may be concluded that 4 units (2.47 per cent) have

negative compound growth rate. It may be due to two reasons.(i) the current

assets might have been reduced with the decrease of production activities. (ii)

they may be doing more business with a low level of current assets. Half of the

sample units (54.32 per cent) have a positive compound growth rate ranging

from 0 to 10 per cent and a quarter of the sample units (36.42 per cent) range

from 10 -20 per cent. Only six units (3.7 per cent) lie in the group of 20 – 30.

And the remaining 6 units consists of three leather units, and three paper units




220 which have a higher compound growth rate. It may be due to increased orders

or may be due to slack reasons.

5.7 OWN FUND

Capital is one of the most important pre-requisites for establishing an

enterprise; availability of capital facilitates the entrepreneur to bring together

the land of one, machine of another, and raw material of yet another to

combine them to produce goods. Capital is, therefore, regarded as lubricant to

the process of production. With increase in capital investment, capital- output

ratio also tends to increase. This results in increase of profit which ultimately

goes to capital formation. Adequate supply of capital promotes

entrepreneurship.

As essential argument in favour of the development of modern

enterprise units that it is one of the excellent means of capital formation.

These facilitate the tapping of resources which otherwise would remain

unused. They can mobilize small savings which may otherwise remain idle,

or which may be spent on luxuries or channeled into non-productive

ventures. The proprietors’ own funds, reinvested earnings or borrowings

from relatives and friends are by and large the main sources of financing

small enterprise ventures. Each source of capital has its own advantages and

disadvantages. The primary source of equity for small enterprise units is




221

funds supplied by the owners of the unit. It is often mandatory for the owner

to have a large proportion of personal assets either directly or indirectly

invested in the business. Thus they can have more control over their

business. The next important source is reinvested earnings. When they

overcome the temptation to withdraw all the profit, they can provide

additional capital by retaining it. From relatives and friends, funds may be

collected without any difficult formality or with less interest. But the

problem is that these persons may want to interfere continuously in decision

making.

Thus for capital formation the owner can depend on many sources. A

unit can be started only with the help of seed capital, that is, own capital.

They can depend on their external sources only after mobilising sufficient

own capital. An important feature of own capital is that it has less financial

risk as compared to borrowed fund. Hence, own capital is considered

important growth variables.

It is a known fact that depending upon the size of the unit, the

quantum of capital varies. The present study also shows that some units need

more capital whereas some others need less capital. As tanneries are

considered, they rank first in owners’ capital. Trading based unit rank

second since they require heavy investment in stocks. Paper and leather




222

based unit rank third, food processing units rank fourth and service based

units rank fifth in owners’ contribution as per this survey.

As for retained earnings, most of the concerns retain 100 per cent of

their earnings in the business itself though some concerns do withdraw 100

per cent profit. Thus the retention ration also differs from concern to concern

as per their requirements.

The compound growth rate of the own capital of the 162 sample units

for the study period are presented in Table 5.6 these range from -3.89 to

28..86.

TABLE 5.6

Growth Rate in the Own funds of Sample Enterprise Units

SI.NO Range of CGR Number of Units Per centage

1 -6 to 0 4 2.46

2 0 to 6 87 53.70

3 6 to 12 54 33.33

4 12 to 18 13 8.02

5 18 & above 4 2.46

Total 162 100.00





223

It is observed from Table 5.6 that only a minimal number of units i.e.,

four (2.46 per cent) sample units have a negative compound growth rate. It is

because of the reason that most of the sample women enterprise units plough

their profit back into the business. Only a few units withdraw their capital

and stop to retain the profit. More than half of the units, i.e., 87 (53.70 per

cent) fall in the compound growth rate of 0 to 6 per cent. More than one

third of the units i.e., 54 (33.33 per cent) units, fall in the group of 6 per cent

to 12 per cent. And 13 (8.02 per cent) units have growth rates ranging from

12 to 18. Only four units which produce stabilizers have a higher compound

growth of more than 18 per cent which is the highest compound growth rate

among these units.

5.8 LONG TERM BORROWING

Women enterprise units can depend also on borrowings from

outsiders over and above their own contribution to long term financing. The

finance may be required for acquiring fixed assets like land, building, plant

and machinery, and the like. This fund may also be used for acquiring fixed

assets for setting up new enterprise and expansion, renovation and

modernization of existing factories with a view to improving quality or

reducing production costs, so as to help in increasing profitability.




224

The use of borrowed fund has a number of implications. First,

between own fund and borrowed fund, borrowed fund is more risky from the

firm’s point of view. The firm has a legal obligation to pay interest to the

lenders, whether a bankers or a money lender or a financial institution,

irrespective of the profits or losses it makes. If a firm fails to pay the

borrowed amount on time, its creditors can take legal action against it to get

payments and in extreme cases, can force the firm into liquidation, second,

the use of borrowed capital is advantageous to the owners since they can

earn more profit with the help of borrowed fund when the cost of debt is less

than the overall cost of capital.

Term loans can be acquired from different sources. These

enterprise units get their term credits from commercial banks, co- operative

banks, regional rural banks and the State Finance Corporation (SFC).The

banks provide mainly working capital and term loan is mainly provided by

the SFCs, NSIC and to some extent, SSI units also get some term loans from

commercial banks along with working capital in the form of composite

loans.

As far as Dindigul District is concerned, it never lacks in banking

facilities. With branches of nationalized and other scheduled banks spread

over the district, there is a steady cash flow regulated by the annual credit




225

plan prepared by the lead bank of this district. In addition, the land

development bank, co-operative banks, the Tamilnadu Industries’

Investment Corporation and other financial institutions also provide finances

to enterprise. This district had got sufficient financial resources, which could

be mobilized for the vast development of women enterprise units in

Dindigul. Banks are also financing women enterprise units through various

government- sponsored programmes like PMRY, NABARD, Non- Farm

activities which include financing of SSI units availing of refinance

facilities.

The sample women enterprise units borrow their long term

requirements from commercial banks, money lenders and financial

institutions. But some entrepreneurs have not borrowed any long term fund

from outsiders for two reasons. One is they could manage their long term

requirement from their own sources and another is they want to avoid risk,

since there is a legal obligation on the part of the entrepreneur to pay interest

and to repay the loan amount.

When a business grows, entrepreneurs want to invest funds in fixed

assets. Thus the requirement of long term borrowings is also increased when

they are not able to put in their own capital. Therefore the quantum of

borrowed fund has been selected as an indicator of growth of women




226

enterprise units. Compound growth rate for the long term borrowings

achieved by the sample unit for the period 1997-1998 to 2006-2007 have

been computed and these have been tabulated in Table 5.7. Compound

growth rate for the borrowed funds vary from -27.6 to 22.67.

TABLE 5.7

Growth Rates in Long Term Borrowing of Sample Enterprise Units


1 Less than -10 9 5.55

2 -10 to 0 16 9.88

3 0 to 10 97 59.87

4 10 to 20 36 22.22

5 20 & above 4 2.46

Total 162 100


Table 5.7 shows that nine (5.55 per cent) units have a high negative

compound growth rate of more than -10. This may be due to repayment

practice of the entrepreneurs or they might have borrowed during the initial

period and may not have borrowed any thing afterwards or they may depend

mainly on their own capital. The entrepreneurs of these units feel that they

have sufficient amount of own capital. Another 16 (9.88 per cent) units have




227

negative compound growth rate upto -10 per cent. More than three fourths of

the sample units, i.e. 97 (59.87 per cent) units, fall in the group of 0-10 per

cent and 36 (22.22 per cent) units fall in the group of 10 to 20 per cent. Only

4 units have compound growth rates of more than 20.

5.9 FACTORS INFLUENCING GROWTH

5.9.1 Introduction

There are ten factors identified as important factors influencing the

growth of the women entrepreneurs units at Dindigul. The nine factors which

are found to influence the growth of women entrepreneurs units are: the period

existence of the sample unit, ownership pattern of organization, location of the

unit, nature of the unit, sources of labour, technically qualified entrepreneur,

previous experience of the entrepreneurs, special skill possessed by the

entrepreneurs, hereditary nature of the business, and professional management.




228

TABLE 5.8

OPINION ON THE NEED OF A SPECIAL SKILL

Opinion No. of Respondents Percentage

Yes 94 58.02

No 68 41.98

Total 162 100.00

Source: Primary Data

From the above table it is inferred that out of 162 units of women

entrepreneurship nearly 58 per cent of them have accepted the statement and

opined positively to acquire the special skill to run the business. But 42 per

cent of them have stated that there was no need for the possession of special

skills. It is concluded that the special skills required to be possessed to run the

business was accepted by 94 respondents out of 162.




229

TABLE5.9

OPINION ON THE SPECIAL SKILL POSSESSED


Yes 76 80.85

No 18 19.15

Total 94 100.00


Out of the 94 respondents, who have accepted to possess the special

skills, nearly 76 respondents have acquired the same. But 18 respondents have

not yet acquired the special skills to run the business. It is concluded that there

is a need to provide skills and skill based environment to run the business for

the unskilled women entrepreneurs as found.




230

TABLE 5.10

OPINION ON THE EMPLOYMENT OF SKILLED PERSONS


Yes 12 66.67

No 6 33.33

Total 18 100.00


The above table shows that the special skill is not possessed by 18

respondents. Out of the 18 women respondents, 12 respondents have expressed

that they have appointed the especially skilled persons to run the business unit

and 6 respondents have neither possessed the special skills nor appointed the

especially skilled persons to run the business. It is concluded that there should

be the entrepreneurs themselves are skilled persons or appointment of the same

to run the business.




231

TABLE 5.11

OPINION ON THE UNIT OF BUSINESS RUN AS FAMILY BUSINESS


Yes 86 53.09

No 76 46.91

Total 162 100.00


Out of 162 respondents, 53 per cent of them have accepted that they

have known the business as family run business traditionally and 47 per cent of

them have opined reversely and stated as not their family business. It is

concluded that, the maximum of women entrepreneurs run the family business

traditionally.




232

TABLE 5.12

OPINION ON THE EXPERIENCE


Yes 58 67.44

No 28 32.56

Total 86 100.00


The above table shows, out of 86 women entrepreneurs 58 respondents

have opined that they had practiced previously and gained the knowledge of

business in previous days. But 28 respondents had not practiced previously to

run the business and not gained any such knowledge of business.




233

TABLE 5.13

OPINION ON THE BENEFITS GAINED


Yes 34 58.62

No 24 41.38

Total 58 100.00


While coming to the unit, it is asked that what the women entrepreneurs

have gained knowledge in previous days about the business. Out of 58

respondents, only 34 respondents have gained in previous days the knowledge

of running the business and 24 respondents have not gained any knowledge of

business during the past. It is concluded that there is a necessity to gain some

knowledge to run the business.




234

TABLE 5.14

OPINION ON THE KNOWLEDGE OF FAMILY MEMBERS ABOUT

THE BUSINESS


Yes 126 77.78

No 36 22.22

Total 162 100.00


Out of the 162 respondents who have opined about the knowledge of

family members regarding the business, nearly 78 per cent of them have opined

that their family members have gained such knowledge and 22 per cent of them

have expressed such knowledge was not gained by the family members. It is

concluded that the maximum number of respondents have stated and opined

that their family members have possessed such knowledge.




235

TABLE5.15

OPINION ON THE EDUCATIONAL QUALIFICATION ACQUIRED

TO START THE UNIT


Yes 144 88.89

No 18 11.11

Total 162 100.00


The above table shows out of the total 162 respondents, 144 respondents

have acquired the required and adequate educational qualifications to start the

business unit. Only 18 respondents have opined and expressed that they did not

have an adequate qualification and skills to run the business unit.




236

TABLE 5.16

OPINION ON THE TRAINING BY EDPs ATTENDED


Yes 134 82.72

No 28 17.28

Total 162 100.00


The training is required to be attended to run the entrepreneurship

programmes. ED Programmes are given at various centres. Out of 162

respondents, nearly 83 per cent of them have attended the ED training

programme. But 17 per cent of them have opined that they have not attended

any such programmes.




237

TABLE 5.17

OPINION ON THE USE OF EDP TRAINING ATTENDED


Yes 122 91.04

No 12 8.96

Total 134 100.00


It is asked the 134 respondents, who have attended the training

programmes, about the use and their feel. 122 respondents pointed out that it

was very much useful to run the business and for 12 respondents it was very

time consuming but not to gain any more knowledge and skill. It is concluded

that it is very much essential to conduct and attend the training programmes to

make the business positively run.




238

TABLE 5.18

OPINION ON THE PREVIOUS EXPERIENCE


Yes 144 88.89

No 18 11.11

Total 162 100.00


Out of the total 162 respondents, nearly 89 per cent of them have opined

that they had a previous experience in this field to run the business smoothly.

But nearly 11 per cent of the respondents have opined that they had no

previous experience in conducting the business. They were at the first time

experiencing the same.




239

TABLE 5.19

OPINION ON THE COMPULSION OF FAMILY TO START THE

UNIT


Yes 88 54.32

No 74 45.68

Total 162 100.00


The above table shows that the opinion on to start the business is

whether on compulsion by their family members or not. 88 respondents have

expressed that they started the units only on the compulsion of their family

members and 74 respondents have opined that there was no compulsion by the

family members to start the business. They added that, they had started their

business units at their own will and wish.




240

TABLE 5.20

OPINION ON THE INNER URGE TO BECOME ENTREPRENEURS


Yes 154 95.06

No 8 4.94

Total 162 100.00


The above table shows the respondents opinion about their inner urge to

start the business. Out of the total respondents, nearly 95 per cent of them have

accepted that they had an inner urge to start their business. Only 8 respondents

have neither inner urge nor previous idea to start their business unit. Thus it is

concluded that the majority of the respondents had inner urge to start their

business units.




241

TABLE5.21

OPINION ON THE DISCUSSIONS WITH OTHERS TO START THE

UNIT


Yes 124 76.54

No 38 23.46

Total 162 100.00


From the above table it is worth noting that, out of the total respondents

76.54 per cent of them have expressed their opinion favourable on the

discussions, they had with other members of their family to start the business

unit. But the rest of 23.46 per cent of them have reversely opined that they had

no practice of discussing with the other family members to start the business

unit. It is concluded that the maximum of respondents have had a discussion to

start their business unit.




242

TABLE5.22

OPINION ON THE SCOPE OF GETTING BULK ORDERS FROM

GOVERNMENT


Yes 138 85.19

No 24 14.81

Total 162 100.00


The respondents were asked about the scope of getting bulk orders from

the Government to fulfill their needs. Out of the total respondents 85.19 per

cent of them have supported the statement that they have the scope of getting

bulk orders from the Government to fulfill their needs. But 14.81 per cent of

the respondents have opined unfavourably that they have no scope of getting

bulk orders from the government to fulfill their needs. To conclude, the

maximum of the respondents have had the opinion of getting bulk orders from

the government to fulfill their needs.




243

TABLE 5.23

OPINION ON THE NEED OF SPECIFIC SKILLED LABOUR


Yes 140 86.42

No 22 13.58

Total 162 100.00


From the above table it is understood that the respondents’ opinion on

the need of specified type of skilled labour. Out of the total respondents 86.42

per cent of them have accepted that they are in need of a specified type of

labour with skills. But, 13.58 per cent of the respondents had no opinion on the

need of the any specified type of skilled labour for their business units. To

conclude the maximum of 140 respondents have accepted the need of specified

type of skilled labour.




244

TABLE 5.24

OPINION ON THE SOURCES OF SKILLED LABOURS ACQUIRED

Opinion on sources No. of Respondents Percentage

Local 12 8.57

Around Dindigul 26 18.57

Within the state 38 27.14

Other State 64 45.72

Total 140 100.00


The above table shows the places from where they acquire the skilled

labour force. Out of the total respondents, 45.72 per cent of them would

acquire from other state; 27.14 per cent of them would acquire within the state

of Tamilnadu; 18.57 per cent of them would acquire in and around Dindigul

and 8.57 per cent of them would acquire the skilled labour force from the local

area Dindigul Town. This is to conclude that the maximum of the skilled

labour force would be acquired from the other states on contractual basis.




245

TABLE 5.25

OPINION ON WAGE AGREEMENT TO EMPLOYEES


Yes 98 60.49

No 64 39.51

Total 162 100.00


From the above table it is worth noting that out of the total respondents

nearly 60.49 per cent of the respondents have had an agreement of wages with

their employees. The wages are paid to them only on the basis of this

agreement. But 39.51 per cent of the respondents have expressed that they had

no agreement of wages with their employees. To conclude, the maximum of

respondents have agreed with their employees regarding the payment of wages

and on the basis of the agreement they pay the wages to the employees.




246

TABLE5.26

OPINION ON THE INCENTIVES FOR ENCOURAGEMENT ON

TARGET ACHIEVEMENT


Yes 124 76.54

No 38 23.46

Total 162 100.00


The respondents have opined on the statement regarding the incentives

for encouragement to the employees when the target is achieved. Out of the

total, 76.54 per cent of the respondents have opined in favour of the statement

that they give incentives for encouraging the employees on the achievement of

the targets. But 23.46 per cent of them have negatively opined that they are not

giving any incentives for encouragement to the employees on the target

achievement. To conclude the maximum of them have been encouraging the

employees by giving them incentives for the target achievement.




247

TABLE5.27

OPINION ON THE TYPES OF INCENTIVES

Opinion on incentives No. of Respondents Percentage

Gift 22 17.74

Cash award 12 9.68

Yearly increments 54 43.55

Bonus 12 9.68

Others 24 19.35

Total 124 100.00

Source; Primary Data

The above table shows the type of incentives which were given to the

employees for encouraging them towards work. Out of the total 124

respondents who have had a practice of giving the incentives to the employees,

43.55 per cent of the respondents have been giving the annual increments;

19.35 per cent of the respondents have been giving other benefits; 17.74 per

cent of the respondents are giving gifts; and both 9.68 per cent of the

respondents are giving bonus and cash award respectively. This is to conclude

that, the maximum of the respondents are providing the employees the annual

increments for the encouragement.




248

TABLE 5.28

OPINION ON THE GROWTH OF BUSINESS DUE TO SOLE

PROPRIETORSHIP


Yes 114 70.37

No 48 29.63

Total 162 100.00


The maximum success and achievements of the business is based on the

whole of the nature and type of the business unit. Out of the total respondents,

70.37 per cent of them have accepted that their business have been growing

due to the sole proprietorship. But 29.63 per cent of them have felt that it is not

enough to run the business as a sole proprietor. It is concluded that the

maximum units are growing due to the sole proprietorship, except the few.




249

TABLE 5.29

OPINION OF THE ADVANTAGES ENJOYED DUE TO THE SOLE

PROPRIETORSHIP

Opinion No. of Respondents Percentage Close relationship of capital & profit

64 56.14

More profit for more risk taken

16 14.04

Quick decisions 22 19.30 Tax advantages 12 10.52 Total 114 100.00 Source: Primary Data

Out of the total 114 respondents who have accepted the growth due to the

sole proprietorship, 64 respondents (56.14 per cent) have opined on the

advantage, what they enjoyed is the close relationship of capital and profit;

19.30 per cent of the respondents have enjoyed the advantage of taking quick

decisions without consulting others; 14.04 per cent of them have enjoyed more

profit when they take more risk and the tax advantages are enjoyed by 10.52

per cent of the respondents. It is understood that the maximum of the

respondents who have accepted the growth of sole proprietorship were

enjoying the close relationship of their capital and profits.




250 5.10 WOMEN EMPOWERMENT SCALE

5.10.1 Introduction

TABLE 5.30 WOMEN EMPOWERMENT THROUGH FAMILY

Statements Strongly agree

Agree Undecided Disagree Strongly disagree

Total

Increase in family income

68 41.98 24 14.82 22 13.58 24 14.82 24 14.82 162 100

Good education to children

64 39.50 28 17.28 18 11.11 24 14.82 28 17.28 162 100

Decisions on family patterns

58 35.80 26 16.05 24 14.82 32 19.75 22 13.58 162 100

No domination from family members

68 41.98 32 19.75 28 17.28 16 9.88 18 11.11 162 100

Share of family members in household work

72 44.44 26 16.05 26 16.05 22 13.58 16 9.88 162 100

Equal treatment in the family

64 39.50 28 17.28 28 17.28 28 17.28 14 8.64 162 100

Peaceful family life

66 40.74 24 14.82 26 16.05 28 17.28 18 11.11 162 100

Cooperation from husband

68 41.98 26 16.05 24 14.82 32 19.75 12 7.41 162 100

Family’s consent for employment programmes

74 45.68 22 13.58 26 16.05 24 14.82 16 9.88 162 100


The above table shows the women entrepreneurs empowerment through

their family. It also shows various conditions of their family in the




251 development of their entrepreneurship. Out of the total respondent units, 68

units have strongly agreed; 24 units have agreed; and 22 units have undecided

that, they could not increase the family income.

Good education to children is one of the results of the women

empowerment. Out of the total respondents, 64 units have strongly agreed; 28

units have agreed and 18 units have undecided with the empowerment result

whereas 24 units have disagreed and 28 units have strongly disagreed with the

statement.

The women empowerment helps them to make correct decisions on

family patterns. 58 units have strongly agreed; 26 units have agreed and 24

units have undecided with the statement. But 32 units have disagreed and 22

units have strongly disagreed with the statement that they could not make any

right decisions on family patterns.

Out of the total, 68 units have strongly agreed, 32 units have agreed; and

28 units have undecided that there is no domination from the family members.

But 16 units have disagreed and 18 units have strongly disagreed with the

statement that they face always the domination of their family members.

72 respondents units have strongly agreed; 26 units have agreed and 26

have undecided with the statement of family members share the household




252 work. In contrast, 22 units have disagreed and 16 units have strongly disagreed

with the above.

The equal treatment in their family is strongly agreed by 64 respondents,

agreed by 28 respondent units and undecided by 28 units. But 28 respondent

units have disagreed and 14 units have strongly disagreed that they do not have

any equal treatment in their family.

Out of the total, 66 units have strongly agreed; 24 units have agreed and

26 units have undecided with the peaceful family life. But there is no peace in

family life expressed by 28 respondent units and strongly expressed by 18

units.

68 units of the total have strongly agreed; 26 units have agreed; and 24

units have undecided with the cooperation from husband. But it is not agreed

by 32 respondents and strongly disagreed by 12 respondent units.

The 74 women entrepreneurial units have strongly agreed with the

family’s consent for the employment programmes. It is agreed by 22 units and

undecided by 26 units. But 24 units of the total respondents have disagreed and

16 units have strongly disagreed with the statement that they do not have any

family’s consent for their employment in entrepreneurial programmes.




253

It is concluded that, most of the respondent units have stated that they

enjoy their empowerment in their family by all means and it helps to increase

their entrepreneurial programmes.

TABLE 5.31

WOMEN EMPOWERMENT THROUGH TRAINING PROGRAMMES



Total

Attending meetings and seminars

68 41.98 20 12.34 18 11.11 32 19.75 24 14.82 162 100

Acquiring adequate knowledge

64 39.50 18 11.11 24 14.82 28 17.28 28 17.28 162 100

Good experience

66 40.74 26 16.05 22 13.58 22 13.58 26 16.05 162 100

Effective skill training

64 39.50 28 17.28 24 14.82 24 14.82 22 13.58 162 100

Providing adequate infrastructure facilities

66 40.74 30 18.52 26 16.05 22 13.58 18 11.11 162 100


The above table shows the women empowerment through training

programmes. Out of the total units 68 units of respondents have strongly

agreed; 20 units of respondents have agreed and 18 units have undecided

regarding their empowerment in attending the meetings and seminars. But 32

units have disagreed and 24 units have strongly disagreed with the statement.

64 units have strongly agreed; 18 units have agreed and 24 units have

undecided with the acquisition of adequate knowledge. But 28 units of




254 respondents have disagreed and 28 units of respondents have strongly

disagreed with the same, that they could not acquire any adequate knowledge

through their empowerment.

The women empowerment helps to have a good experience is strongly

agreed by 66 respondent units and agreed by 26 units. But 22 units have

undecided that they did not say anything whereas 22 units have disagreed and

26 units have strongly disagreed with the same.

Out of the total number of respondent units, 64 units have strongly

agreed; 28 units have agreed and 24 units have undecided regarding the

effective skill training through women empowerment. But 24 units have

disagreed and 22 units have strongly disagreed that the empowerment would

not help them to acquire any skill training effectively.

The empowerment of women helps them to provide adequate

infrastructure facilities are strongly agreed by 66 units; agreed by 30 units. But

26 units have undecided with the same, whereas 22 units have disagreed and 18

units have strongly disagreed with the statement.

To conclude, the most of the women entrepreneurial respondent units

have stated that they enjoy their empowerment through the training

programmes.




255 Ho: There is no significant relationship between the women empowerment and

the training programmes.


Agree Undesired Disagree Strongly disagree

Total

Attending meeting and seminars

68 20 18 24 32 162

Acquiring adequate knowledge

64 18 24 28 28 162

Good experience 66 26 22 26 22 162 Effective skill training

64 28 24 22 24 162

Providing adequate infrastructure facilities

66 30 26 18 22 162

Total 328 122 144 118 128 810 χ2 = Σ (O-E)2 /E = 29.08

The table value of χ2 at 5% level is 26.3. The calculated value is greater

than the table value. So we reject the null hypothesis.

It is concluded that there is a significant relationship between women

empowerment and their training programmes offered by various organisations.




256

TABLE 5.32

WOMEN EMPOWERMENT BY THEIR ABILITY



Total

To have confidence

68 41.98 24 14.82 18 11.11 18 11.11 34 20.99 162 100

To remove complex

64 39.50 26 16.05 14 8.64 16 9.88 42 25.42 162 100

To provide opportunities of employment

66 40.74 28 17.28 16 9.88 18 11.11 34 20.99 162 100

To take independent decisions

64 39.50 24 14.82 16 9.88 22 13.58 36 22.22 162 100

To run successfully

68 41.98 26 16.05 12 7.41 22 13.58 34 20.99 162 100

To convince each customer

70 43.21 28 17.28 18 11.11 18 11.11 28 17.28 162 100

To solve the complex of customers

72 44.44 28 17.28 14 8.64 12 7.41 36 22.22 162 100

To provide service to customers

74 45.68 22 13.58 12 7.41 14 8.64 40 24.69 162 100

To make good profit

68 41.98 24 14.82 14 8.64 16 9.88 40 24.69 162 100

To maximum good quality

66 40.74 26 16.05 16 9.88 14 8.64 38 23.46 162 100

To have independent savings

64 39.50 30 18.52 12 7.41 14 8.64 42 25.92 162 100


The above table shows the women empowerment by their ability. It

helps them to be with many positive attitudes and abilities. Out of the total, 68

respondent units have strongly agreed; 24 units have agreed and 18 units have




257 undecided with the statement of having confidence. But 18 units have

disagreed and 34 units have strongly disagreed that they do not have any

confidence.

The empowerment helps them to remove the complex of the women and

make them able to drive the business activities. It is strongly agreed by 64

respondents; agreed by 26 respondents and undecided by 14 respondents. But

16 respondents have disagreed and 42 respondents have strongly disagreed the

statements.

The women empowerment helps to provide opportunities of employment

is strongly agreed by 66 respondent units; agreed by 28 respondent units; and

undecided by 16 units. But 18 respondents have disagreed and 34 respondents

have strongly disagreed the statement that the empowerment would not provide

any opportunities of employment.

Out of the total, 64 respondents have strongly agreed; 24 respondents

have agreed and 16 respondents have undecided that the empowerment helps to

take independent decisions. But 22 respondents have disagreed and 36

respondents have strongly disagreed with the statement that they could not take

independent decisions.

The women empowerment helps to run the business successfully is

strongly agreed by 68 respondents, agreed by 26 respondents; and undecided




258 by 12 respondents. But 22 respondents have disagreed and 34 respondents have

strongly disagreed that they could not run the business successfully through

their empowerment.

Their customers are convinced by their ability due to their empowerment

is strongly agreed by 70 respondents; agreed by 28 respondents; and undecided

by 18 respondents whereas disagreed by 18 respondents; strongly disagreed by

28 respondents.

The complexities of the customers are also solved by the empowerment

ability is strongly agreed by 72 respondents; agreed by 28 respondents and

undecided by 18 respondents. But 18 respondents have disagreed and 28

respondents have strongly disagreed the statement which could not strengthen

their abilities.

Out of the total respondents, 74 respondents have strongly agreed; 22

respondents have agreed; and 12 respondents help them to provide proper

services to customers. But 14 respondents have disagreed and 40 respondents

have strongly disagreed with the above.

The empowerment helps them to make the good profit is strongly agreed

by 68 respondents; agreed by 24 respondents; and 14 respondents have

undecided. But 16 respondents have disagreed and 40 respondents have

strongly disagreed with the making of good profit by their empowerment.




259

It is to understand that the empowerment of women helps to maintain the

good quality in the products and services have been strongly agreed by 66

respondents; agreed by 26 respondents; and undecided by 16 respondents. But

14 respondents have disagreed; and 38 respondents have strongly disagreed the

above.

Out of the total, 64 respondents have strongly accepted; 30 respondents

have accepted and 12 respondents have undecided that the empowerment of

women helps to have an independent savings. But 14 respondents have

disagreed and 42 respondents have strongly disagreed with the above.

It is to conclude that the women empowerment helps the respondents to

run the activities of them by their abilities. Most of the respondents have stated

that they have been growing with their ability and empowerment.




260

TABLE 5.33

WOMEN EMPOWERMENT THROUGH PRODUCTS



Total

Providing quality products

72 44.44 34 20.99 24 14.82 18 11.11 14 8.64 162 100

Fixing correct price

74 45.68 32 19.75 26 16.05 16 9.88 14 8.64 162 100

Competing the competitors

70 43.21 32 19.75 22 13.58 14 8.64 24 14.82 162 100

Acquiring through product knowledge

68 41.98 36 22.22 26 16.05 12 7.41 20 12.34 162 100

Giving effective advertisement

70 43.21 30 18.52 22 13.58 16 9.88 24 14.82 162 100

Facing the supply of raw materials

66 40.74 38 23.46 24 14.82 18 11.11 16 9.88 162 100


The above table shows the empowerment of women through their

products. Their abilities and empowerments have got raised is shown in their

products. Out of the total, 72 respondents have strongly agreed; 34 respondents

have agreed; 24 respondents have undecided that they are able to provide good

quality products. But 18 respondents have disagreed and 14 respondents have

strongly disagreed the statements.

Out of the total respondents 74 units have strongly agreed; 32 units have

agreed; and 26 units have undecided about the price fixation in a right manner.




261 But 16 respondents have disagreed and 14 respondents have strongly disagreed

with the same.

The competency of the women entrepreneurial respondents with the

competitors through their products is strongly agreed by 70 respondents;

agreed by 32 respondents and undecided by 22 respondents. But the same is

disagreed by 14 respondents and strongly disagreed by 24 respondents that

they could not compete with the competitors.

Women empowerment helps to acquire thorough product knowledge is

strongly agreed by 68 respondents; agreed by 36 respondents and undecided by

26 respondents. But it is not agreed by 12 respondents and strongly disagreed

by 20 respondents.

Giving effective advertisements for the products through empowerment

is strongly agreed by 70 respondents; agreed by 30 respondents and undecided

by 22 respondents while disagreed by 16 respondents and strongly disagreed

by 24 respondents due to their lack of empowerment.

The women entrepreneurs are able to face the supply of raw materials in

time by their empowerment is strongly agreed by 66 respondents; agreed by 38

respondents; and undecided by 18 respondents. But the same is disagreed by 18

respondents and strongly disagreed by 16 respondents due to their inabilities.




262

It is to conclude that the women empowerment through their products

and services at most positive is expressed by most of the respondents.

TABLE5.34

WOMEN EMPOWERMENT IN THE CREDIT INSTITUTIONS AND

BANKS



Total

Required credit facilities from bank

72 44.44 24 14.82 32 19.75 16 9.88 18 11.11 162 100

Required information from banks for credit

74 45.68 28 17.28 28 17.28 14 8.64 18 11.11 162 100

Treatment of bank officials proper

72 44.44 22 13.58 24 14.82 18 11.11 26 16.05 162 100

Required investment

70 43.21 26 16.05 24 14.82 12 7.41 30 18.52 162 100

Timely repayment of loan to bank

68 41.98 22 13.58 26 16.05 16 9.88 32 19.75 162 100


The above table indicates the women empowerment in credit institutions

and banks. Out of the total respondents 72 respondents have strongly agreed;

24 respondents have agreed and 32 respondents have undecided. But 16

respondents have disagreed and 18 respondents have strongly disagreed with

the statement that they could not avail the required credit facilities from the

bank.




263

The empowerment helps the women respondents to acquire the

information from banks for credit is strongly agreed by 74 respondents; agreed

by 28 respondents and undecided by 28 respondents. But same is disagreed by

14 respondents and strongly disagreed by 18 respondents.

The treatment of bank officials proper through women empowerment is

strongly agreed by 72 respondents; agreed by 22 respondents; and undecided

by 24 respondents. But the same is disagreed by 18 respondents and strongly

disagreed by 26 respondents.

The women empowerment helps to avail and make the required

investment is strongly agreed by 70 respondents; agreed by 26 respondents and

undecided by 24 respondents. But disagreed by 12 respondents and strongly


They are able to repay the loans to bank in time is due to their

empowerment is strongly agreed by 68 respondents; agreed by 22 respondents;

and undecided by 26 respondents while 16 respondents disagreed and 32

respondents strongly disagreed the above statement.

It is concluded that the women empowerment helps the women

entrepreneurs to have easy access to credit institutions and banks.




264

TABLE5.35

WOMEN EMPOWERMENT IN ECONOMY & STATUS



Total

Improvement in economic status

68 41.98 32 19.75 24 14.82 16 9.88 12 7.41 162 100

Development of Rural area

64 39.50 34 20.99 26 16.05 18 11.11 20 12.34 162 100

Improvement of social status

66 40.74 32 19.75 22 13.58 24 14.82 18 11.11 162 100

Helping other women to become entrepreneur

68 41.98 30 18.52 20 12.34 22 13.58 22 13.58 162 100


The above table shows the women empowerment in economy and status.

It is strongly agreed by 68 respondents; agreed by 32 respondents and

undecided by 24 respondents that their empowerment improves the economic

status. But the same is disagreed by 16 respondents and strongly disagreed by

12 respondents.

The empowerment helps to improve and develop the rural area is


26 respondents. But the same is disagreed by 18 respondents and strongly


The women empowerment helps to improve their social status is





265 22 respondents. But the same is disagreed by 24 respondents and strongly

disagreed by 18 respondents due to the lack of their ability and empowerment.

It helps the other women to become an entrepreneur is strongly agreed

by 68 respondents; agreed by 30 respondents and undecided by 20 respondents.

But the statement is disagreed by 22 respondents and strongly disagreed by 22

respondents due to their inability through improper empowerment.

To conclude most of the respondents have stated that their empowerment

helps them to improve their economy and status in the society.

5.11 PROBLEMS

The problems faced by the women entrepreneurs units are many, the

study throws light on some specific problems as well as general problems. It

also offers suggestions for the effective growth of small enterprise units. The

interview schedule included 40 problems for getting the opinions of the

entrepreneurs regarding the problems faced by them. They also gave their

opinion regarding other problems which were not included in the schedule.

The problems were grouped into five group such as family, cost of operation,

credit and borrowing, market and society, management. For analyzing the

intensity of each problem, the number of sample units facing each such

problem has been presented in the form of a classification table for better

understanding of the problems identified in the study.




266

TABLE 5.36

OPINION ON THE PROBLEMS OF WOMEN ENTREPRENEURS

FROM FAMILY



Total

Domination of husband or other family members

64 39.50 32 19.75 24 14.82 18 11.11 24 14.82 162 100

Lack of cooperation of family members

58 35.80 34 20.99 22 13.58 15 9.26 33 20.37 162 100

Less care on children

74 45.68 28 17.28 32 19.75 16 9.88 12 7.41 162 100


The problems of women entrepreneurs are categorized as per the

conditions within which they are operating their business units. Out of the

problems they face, the first and foremost is the problems from their family.

All the respondents were asked with the questions stated above and their

opinions on the problems were recorded. Out of the total respondents, 64

respondents have strongly agreed; 32 respondents have agreed; 24 respondents

have undecided of the problems of their husbands by domination or the other

family members. But 18 respondents have strongly disagreed with this question

that they had no problems of domination of their husbands or other family

members.




267

The very important problem is the lack of cooperation of the family

members. Out of the total respondents 58 of them have strongly agreed; 34

respondents have agreed; and 22 of them have undecided of the question that

they face the lack of cooperation of their family members. But 15 respondents

of the total have disagreed; and 33 of them have strongly disagreed with the

statement that they had no problems of lack of cooperation of their family

members.

One more problem of the women entrepreneurs that they face the hurdle

of lesser care of their children in most cases. 74 respondents of the total have

strongly agreed; 28 of the total have agreed; and 32 of them have undecided of

this statement. But 16 respondents of the total have disagreed; and 12

respondents have strongly disagreed that they had no problems in taking care

of their children.

It is concluded that, most of the respondents have strongly agreed with

the problem statements of domination of their husband or family members;

lack of cooperation of family members; and lesser care on their children due to

the concentration on their business units.

The rank correlation is applied on the opinion regarding the problems of

women entrepreneurs from their family and tested below.




268 Ho: There is no significant relationship of between women entrepreneurial

problems and their family position.

Domination of husband or other family members

Lack of cooperation of family members

Less care on children

R1 R2 R3 D2

12 (R1-R2)2

D2

23 (R2-R3)2

D2

13 (R1-R3)2

64 58 74 5 5 5 0 0 0 32 34 28 4 4 3 0 1 1 24 22 32 2.5 2 4 .25 4 2.25 18 15 16 1 1 2 0 1 1 24 33 12 2.5 3 1 .25 4 2.25 0.5 10 6.5

R (1 & 2) = 1 - NN

D

3

2126

= 1 - 975.0555.06

3

x

R (2 & 3) = 1 - NN

D

3

2236

= 1 - 5.055

1063

x

R (1 & 3) = 1 - NN

D

3

2136

= 1 - 5.0555.66

3

x

Rank Correlation between 1 & 2 has the maximum value. Therefore 1 & 2 has

nearest approach. The null hypothesis is rejected. Thus there is a significant




269 relationship between women entrepreneurial problems and their family

position.

It is concluded that there are some problems occur often in the women

entrepreneurship due to the domination of their husbands and other family

members due to lack of cooperation.

TABLE 5.37

OPINION ON THE PROBLEMS OF COST OF OPERATIONS



Total

High cost of materials & products

54 33.33 36 22.22 24 14.82 16 9.88 32 19.75 162 100

Advertise-ment

62 38.27 38 23.46 16 9.88 18 11.11 28 17.28 162 100

Inability in price fixation

68 41.98 42 25.92 14 8.64 14 8.64 24 14.82 162 100

Insufficient profit

74 45.68 26 16.05 22 13.58 16 9.88 24 14.52 162 100

Higher cost of production

82 50.62 34 20.99 16 9.88 12 7.41 18 11.11 162 100


The above table is showing the opinion of the women entrepreneurs on

the problems of cost of operations. The first problem is the higher cost of

materials and products. Out of the total respondent units 162, 33.33 per cent of

the respondents have agreed strongly with the problem of high cost of materials

and products. 22.22 per cent have agreed and 14.82 per cent have undecided




270 with the statement. But 19.75 per cent of them have strongly disagreed and

9.88 per cent have disagreed with the statement.

The very next problem is advertisement, which is felt really a problem

by 38.27 per cent of the respondents; 23.46 per cent have agreed and 9.88 per

cent of them have undecided the statement. But 17.28 per cent of them have

strongly disagreed and 11.11 per cent of them have disagreed with the

statement, that it is not a problem to them.

Many respondents have felt the inability in price fixation which is

strongly agreed by 41.98 per cent of the respondents; 25.92 per cent of them

agreed and 8.64 per cent of them have undecided with the statement. But 8.64

per cent of them have disagreed and 14.82 per cent of them have strongly

disagreed with the statement.

The very usual problem is insufficient profit, which is strongly agreed by

45.68 per cent of the respondents; 16.05 per cent of the respondents have

agreed and 13.58 per cent of the respondents have undecided with the

statement. But 9.88 per cent of the respondents have disagreed and 14.82 per

cent of the respondents have strongly disagreed with the statement.

The higher cost of production is also one of the problems, which is

crucially faced by the respondents. Out of the total 162 respondents, 50.62 per

cent of them have strongly agreed; 20.99 per cent of them have agreed and 9.88




271 per cent of them have undecided. But 7.41 per cent of the respondents have

disagreed and 11.11 per cent of them have strongly disagreed that it is not a

problem at all.

To conclude, the most of the respondents nearly one third of them have

strongly agreed that the high cost of materials and products, advertisement, and

the inability in price fixation are the major problems, what they face. Nearly

one half of them have faced the problem of insufficient profit and higher cost

of production in their business units and operations.

Ho: There is no significant relationship between women entrepreneurial

problems and cost of operation activities.

x1 21x x2 2

2x x3 23x x4 2

4x x5 25x

54 2916 36 1296 24 576 16 256 32 1024 62 3844 38 1444 16 256 18 324 28 784 68 4624 42 1764 14 196 14 196 24 576 74 5476 26 676 22 484 16 256 24 576 82 6724 34 1156 16 144 12 144 18 324 340 23584 176 6336 92 1656 76 1176 126 3284 T = Σx1 + Σx2 + Σx3 + Σx4 + Σx5

T = 340 + 176 + 92 + 76 + 126 = 810

Correction factor C.F = N

T 2

= 25

)810( 2

= 26244

TSS = 21x + 2

2x + 23x + 2

4x + 25x -

NT 2

= 23584 + 6336 + 1656 + 1176 + 3284 – 26244 = 9792




272

SSB = 5

)( 21x +

5)( 2

2x + 5

)( 23x +

5)( 2

4x + 5

)( 25x -

NT 2

= 5

)340( 2

+ 5

)176( 2

+ 5)92( 2

+ 5)76( 2

+ 5

)126( 2

- 26244

= 9094.4

SSW = TSS – SSB = 9792 – 9094.4 = 697.6

Source of

variation

Sum of squares Degrees of

freedom

Mean square

Between samples 9094.4 r-1=5-1=4 6.22734

4.9094

Within samples 697.6 n-r = 25-5=20 88.3420

6.697

F = 18.6588.34

6.2273

The table value for F(4, 20) at 5% level is 2.8661. The calculated value

of F is greater than the table value. Therefore the null hypothesis is rejected.

It is concluded that there is a significant relationship between the problems of

women entrepreneurs and the cost of operational activities.




273

TABLE 5.38

OPINION ON THE PROBLEMS OF CREDITS & BORROWINGS



Total

Difficulties of availing loans from banks

64 39.50 24 14.82 22 13.58 12 7.41 40 24.70 162 100

Higher interest on borrowings

68 41.98 26 16.05 18 11.11 22 13.58 28 17.28 162 100

Working capital problems

58 35.80 32 19.75 16 9.88 30 18.52 36 22.22 162 100

Insufficient Govt. assistance

72 44.44 22 13.58 24 14.82 28 17.28 16 9.88 162 100


The respondents were asked with different statements related to the

problems of credits and borrowings. Out of the total number of respondents

units, 64 units have been facing the difficulties of availing loans from banks.

24 respondents have agreed and 22 respondents have undecided with this

statement. 12 respondents have disagreed and 40 respondents have strongly

disagreed with this statement. Thus, the maximum of the respondents have

stated that they face difficulties of availing loans from banks.

Out of the total, 68 respondents have strongly agreed that the banks

charge the higher rate of interest on their borrowings. 26 respondents have

accepted and agreed this statement, while 18 respondents have undecided with




274 this statement. 22 respondents have disagreed and 28 respondents have

strongly disagreed with this statement. Thus the maximum number of

respondents has stated the bank’s loan interest rates are higher.

The working capital problems are very much higher in the women

entrepreneurs units. Only of the total respondents, 58 respondents have

strongly agreed and 32 respondents have agreed with the problems of working

capital, 16 respondents have neither agreed nor disagreed with the statement.

30 respondents have disagreed and 36 respondents have strongly disagreed

with the statement of working capital problems. It is concluded that, the

maximum respondents have been facing the problem of working capital.

All the women entrepreneurial units are facing with lack of government

assistance because of the improper system. Out of the total 72 respondents

have strongly agreed and 22 respondents have agreed with this statement, while

24 respondents have undecided about the same. But 28 respondents have

disagreed and 16 respondents have strongly disagreed with the statement. Thus

only little number of respondents has been with proper government assistances.

To conclude, there are the maximum number of respondents units which

face often the problems of credits and borrowings from several sides to run

their business.




275 Ho: There is no significant relationship between the women entrepreneurial

problems and their credits and borrowings.


Agree Undesired Disagree Strongly Disagree

Total

Difficulties of availing loans from banks

32 -8 -10 -20 +8 2

Higher interest on borrowings

36 -6 -14 -10 -4 2

Working capital problems

26 0 -16 -2 4 12

Insufficient Government Assistance

40 -10 -8 -4 -16 2

Total 134 -24 -48 -36 -8 18

C.F = N

T 2

= 20

)18( 2

= 16.2

Sum of squares between columns = 4

)134( 2

+ 4

)24( 2 + 4

)48( 2 + 4

)36( 2 + 4

)8( 2 -

16.2 = 5532.8

Sum of squares between rows = 5)2( 2

+ 5)2( 2

+ 5)12( 2

+ 5)2( 2

- 16.2 = 15

Total sum of squares = 322 + 362 + 262 + 402 + (-8)2 + (-6)2 + 02 + (-10)2 +

(-10)2 + (-14)2 + (-16)2 + (-8)2 + (-20)2 + (-10)2 +

(-2)2 + (-4)2 + 82 + (-4)2 + 42 + (-16)2 – 16.2

= 6284 – 16.2 = 6267.8

Residual = 6267.8 –(5532.8 + 15) = 720




276 Source of variation

Sum of squares

Degrees of freedom

Mean Square F

Between Columns

5532.8 c-1=5-1=4 1383.2 05.2360

2.1383

12

560

Between rows

15 r-1=4-1=3 5

Residual 720 (c-1)(r-1)=12 60 Total 6267.8

1. The table value for F(4,12) at 5% level is 3.25. The calculated value if

greater than the table value. Therefore the hypothesis is rejected i.e.

there is some difference between columns.

2. The table value for F(3,12) at 5% level is 3.49. The calculated value is

greater than the table value. Therefore the null hypothesis is rejected.

Since the hypothesis is rejected, it is worth noting that there is a significant

relationship between the women entrepreneurial problems and their credit and

borrowings.




277

TABLE 5.39

OPINION ON THE PROBLEMS OF MARKETING



Total

Difficult to compete with branded products

62 38.27 22 13.58 48 29.63 16 9.88 14 8.64 162 100

Lack of customers interest

58 35.80 34 20.99 22 13.58 18 11.11 30 18.52 162 100

Societal illiteracy

66 40.74 28 17.28 18 11.11 16 9.88 34 20.99 162 100

Lack of quality of the products

54 33.33 32 19.75 18 11.11 24 14.82 34 20.99 162 100

Competition from other companies

56 34.57 24 14.82 32 19.75 18 11.11 32 19.75 162 100

Improper packaging

64 39.50 34 20.99 36 22.22 18 11.11 10 6.17 162 100


From the above table, it is worth noting that the women entrepreneurial

units are facing the problems of marketing by various means. The first and

foremost problem in marketing is the difficulty to compete with the branded

products. Out of the total units, 62 respondent units were strongly agreed the

statement and 22 units were agreed while, 48 units were undecided. But 16

respondents have disagreed and 14 units have strongly disagreed with the

statement. Thus the maximum of respondents units have accepted facing

difficulties to compete with the branded products.




278

Lack of customers’ interest is an another problem in marketing faced by

the women entrepreneurial units. 58 units have strongly agreed and 34 units

have agreed with the statement, while 22 units have undecided. But 18

respondents units have disagreed and 30 units have strongly disagreed with the

statement. Thus, the maximum of respondents units have been facing the

problem of lack of customers’ interest.

The illiteracy of the society is also the problem of women entrepreneurs.

Out of the total 66 respondents have strongly agreed; 28 units have agreed and

18 respondent units have undecided. But 16 respondents have disagreed and 34

respondents have strongly disagreed with the statement. It is concluded that,

the most of the units are facing the societal illiteracy as a problem in marketing

their products.

Out of the total units, 54 respondents units have strongly agreed and 32

respondent units have agreed with the problem that they face due to the lack of

quality of the products while, the 18 units have undecided with the same. But

24 respondent units have disagreed and 34 units have strongly disagreed with

the same. Thus, the maximum units have been facing the lack of quality of the

products as main problem.

Out of the total units, 56 units have strongly agreed; 24 units have

agreed and 32 units have undecided with the problem statement that the




279 competition from other similar companies. But 18 units have disagreed and 32

units have strongly disagreed with the same. Thus, the most of the respondent

units have been facing the problem of competition from other similar

companies and their products.

The women entrepreneurial units are facing the problem of improper

packaging off their products due to lack of technological knowledge. Out of the

total 162 units, 64 units have strongly agreed; 34 units have agreed and 36

respondent units have undecided with the statement. But 18 units have

disagreed and 10 units have strongly disagreed with the statement. Thus the

most of the respondent units have been facing the improper packaging as the

significant problem.

It is concluded that, most of the respondent women entrepreneurial units

are facing different problems of marketing in several dimensions.

Ho: There is no significant relationship between women entrepreneurial units

and problems of marketing.




280 Statements Strongly

agree Agree Undesired Disagree Strongly

disagree Total

Difficult to compete with branded product

62 22 48 16 14 162

Lack of customers interest

58 34 22 18 30 162

Impossible marketing

64 24 32 18 24 162

Societal illiteracy 66 28 18 16 34 162 Lack of quality of the product

54 32 18 24 34 162

Competition from higher companies

56 24 32 18 32 162

Improper packaging 64 34 36 18 10 162 Lower standard of living

68 32 26 14 22 162

Total 492 230 232 142 200 1296 χ2 = Σ(O-E)2 /E = 81.14

The table value of χ2 at 5% level is 26.3. The calculated value is greater

than the table value. Hence the null hypothesis is rejected.

It is understood that there is a significant relationship between women

entrepreneurial units and the problems of marketing.




281

TABLE 5.40

OPINION ON THE PROBLEMS OF MANAGEMENT



Total

Labour management

68 41.98 32 19.75 22 13.58 16 9.88 24 14.82 162 100

Financial management

72 44.44 28 17.28 18 11.11 18 11.11 26 16.05 162 100

Marketing management

84 51.85 24 14.82 16 9.88 12 7.41 26 16.05 162 100

Incorrect decisions

78 48.15 26 16.05 20 12.34 16 9.88 22 13.58 162 100


The above table indicates the women entrepreneurial problems regarding

the management of their business. It consists of four different problems, what

the women entrepreneurs’ daily face in their business.

Out of the total respondent units, 68 units have strongly agreed that they

face the labour management problems. 32 units have agreed with the statement

and 22 units have undecided. But 16 respondent units have disagreed and 24

respondent units have strongly disagreed with the same, that they do not face

any such problems. Thus, the most of the respondents have been facing the

problems of labour management in their business.

The financial management is one of the problems of the women

entrepreneurs. The above table shows that, 72 respondents have strongly

agreed; 28 respondents have agreed; and 18 respondents have undecided with

the statement. But, 18 respondents have disagreed and 26 respondents have




282 strongly disagreed with the statement that they do not face any financial

problems. It is to conclude, that maximum of the respondents face the financial

problems.

The women entrepreneurs also face the problems of managerial activities

relate to marketing. Out of the total 84 respondent units have strongly agreed;

24 respondent units have agreed; and 16 respondent units have undecided with

the statement. But 12 units have disagreed and 26 units have strongly disagreed

with the statement that they are not facing any marketing problems. But most

of the units are in troublesome to market their products.

The decision making is one among the problems of management of

women entrepreneurs. Out of the total, 78 units have strongly agreed; 26 units

have agreed; and 20 units have undecided about the problems of decision

making. They felt and expressed that they could not take correct decisions

many times. But, 16 respondent units have disagreed and 22 respondent units

have strongly disagreed with the problem statement, that they could make

correct decisions regarding their business.

5.12 SUMMARY

This chapter presents the analysis of the compound growth rates

of 162 sample units for the study period from 1997 -1998 to 2004-2005 for

eight selected growth variables. Growth variables include raw materials




283 consumed, the number of persons employed, value of sales turnover, sales

promotion expenses working capital, own fund, and borrowed fund. The

analyses reveal compound growth rate regarding consumption of raw

materials, more than 70 per cent (112 units) belong to the group of 0-10 per

cent compound growth rate regarding consumption of raw materials, more

than 60 per cent (75 units) belong to the group of 0-5 per cent compound

growth rate regarding number of person employed, more then 60 per cent ( 77

units) belong to the group of 0-7 per cent compound growth rate regarding

sales turnover , more than 65 per cent (89 units) belong to the group of 0-10

per cent compound growth rate regarding sales promotion expenses, exactly

half of the units, 70 belong to the classification of 0-10 per cent compound

growth rate in case of working capital, 68 per cent of (87 units) belong to the

group of 0-6 per cent compound growth rate regarding own fund, more 68

per cent ( 97 units ) belong to the group of 0-10 per cent compound growth

rate regarding long term borrowing.

To conclude the most of the respondent units are facing different

management problems especially, the marketing problems.




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Chapter V GROWTH OF WOMEN ENTREPRENEURIAL UNITS IN DINDIGULshodhganga.inflibnet.ac.in/bitstream/10603/28897/11/11_chapter5.pdf · GROWTH OF WOMEN ENTREPRENEURIAL UNITS IN DINDIGUL