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Fri10242014

Last updateFri, 03 May 2013 10am

Back You are here: Home Human Resource Human Resource Entrepreneurship Problems of Women Entrepreneurs

Problems of Women Entrepreneurs

Problems of women entrepreneurs are:

1) Patriarchal society:

Entrepreneurship has traditionally been seen as a male preserve and idea of women taking up any entrepreneurial activities is considered as a distant dream. Any deviation from the norm is frowned upon and, if possible, immediately curbed. Women also have to face role conflicts as soon as they initiate any entrepreneurial activity. Women have had many ambitions during their student days, but most of them usually lose track of their ambitions in the period of post education i.e. during marriage and settling down as a housewife. Family is always a major influencing factor for married women entrepreneur and husband being the main constituent of the family, has a major influencing role. Thus, it is an uphill task for women to face such conflicts and cope with the multiple roles.

2) Absence entrepreneurial aptitude:

Many women take the training by attending the entrepreneurship development programmes without an entrepreneurial bent of mind. As per a study, involvement of women in the small scale sector as owners stands at mere 7%. Women who are imparted training by various institutes must be verified on account of aptitude through the tests, interviews etc.

3) Making problems:

Women entrepreneur continuously face the problems in marketing their products. it is one of the core problems as this areas is mainly dominated by males and even women with adequate experience fail to make a dent.

For marketing the products women entrepreneurs have to be at the mercy of middlemen who pocket the chunk of profit. Although the middlemen exploit the women entrepreneurs, the elimination of middlemen is difficult, because it involves a lot of running about. Women entrepreneurs also find it difficult to capture the market and make their products popular.

4) Financial problems:

Obtaining the support of bankers, managing the working capital, lack of credit resources are the problems which still remain in the males domain. Women are yet to make significant mark in quantitative terms. Marketing and financial problems are such obstacles where training doesn’t significantly help the women. Some problems are structural in nature and beyond the control of entrepreneurs.

5) Family conflicts:

Women also face the conflict of performing of home role as they are not available to spend enough time with their families. They spend long hours in business and as a result, they find is difficult to meet the demands of their family members and society as well. Their inability to attend to domestic work, time for education of children, personal hobbies, entertainment add to their conflicts.

6) Credit facilities:

Though women constitute about 50% of population, the percentage of small scale enterprise where women own 51% of share capital is less than 5%. Women are often denied credit by bankers on the ground of lack of collateral security. Therefore, women’s access to risk capital is limited.

The complicated procedure of bank loans, the inordinate delay in obtaining the loans and running about involved do deter many women from venturing out. At the same time, a good deal of self-employment programme has been promoted by the government and commercial banks.

7) Shortage of raw-materials:

Women entrepreneurs encounter the problems of shortage of raw-materials. The failure of many women co-operations in 1971 such as these engaged in basket making were mainly because of the inadequate availability of forest-based raw materials.

8) Heavy competition:

Many of the women enterprises have imperfect organisational set up. But they have to face severe competition from organised industries.

9) High cost of production:

High cost of production undermines the efficiency and stands in the way of development and expansion of women’s enterprises. Government assistance in the form of grant and subsidies to some extent enables them to tide over the difficult situations. However, in th long run, it would be necessary to increase efficiency and expend productive capacity and thereby reduce cost to make their ultimate survival possible. Other than these, women entrepreneurs also face the problems of labour, human resources, infrastructure, legal formalities, overload of work, lack of family support, mistrust etc.

10) Social barriers:

Women entrepreneurs in India are always seen with suspicious eyes, particularly in rural areas, they face more social barriers. Not only this, so many castes and religions dominate with one another and hinders women entrepreneurs.

11) Problems of middlemen:

Women entrepreneurs depend on the middlemen for the sale of their product. Middlemen add their own profit margin and hence cause for higher selling price. In such a competitive, customer’s attraction towards the product produced by women entrepreneur decrease. This result in less sales and lesser profit.

12) Lack of information:

Women entrepreneurs lack knowledge and information of availability of raw materials, financial facilities, government help and various kinds of subsidies available. They aren’t not, sometimes, aware of developments of information technology. Lack of advanced knowledge hinders the expansion of their markets.

13) Lack of self-confidence:

Women lack confidence and they even hesitate taking. They are conservative in taking risks and their risk-bearing capacity is also less. Since she has to play dual role, she has to strive hard to strike a balance between her dual roles. Many times, she has to sacrifice (or) suppress her entrepreneurial urge in order to strike balance

 

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