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Emergence of New Class of Entrepreneurs & Women Entrepreneurs

Emergence of New Class of Entrepreneurs & Women Entrepreneurs

Emergence of New Class of Entrepreneurs

The Industrial Policy Resolution of 1956 made an attempt to develop and regulate industries. State emerged as a big entrepreneur. Industrial finance was made available through Financial Institutions both of all India level as well as at State level. Every State set up a State Financial Corporation.

In 1960’s a new bread of entrepreneurs emerged. It comprised the traditional trading castes consisting of a sizeable portion of Patels, Hindus and Jain Banias from Gujarat, Marwaris from Rajasthan, Brahmins from all over the country, particularly from South, Naidus of South, Koyastris from West Bengal and Khatris and Aroras from Punjab.

During the late 1960’s and early 1970’s India was reeling under the license raj. The Monopolies and Restrictive Trade Practices Act, 1969 (M.R.T.P). The Industries Development Regulations Act, 1971. The Foreign Exchange Regulations Act, 1973 acted as a speed braker for the entrepreneurial development. The industries faced the problems of high taxes (as high as 70%) licensing, quota system, redtapism. M.R.T.P. cubes on vertical expansion imposed by the M.R.T.P., industries could not expand globally and take the advantages of large scale production to compete globally. After 1985 the stage of liberalization set in by the then. Finance Minister V.P. Singh followed by sweeping reforms in 1991 by Dr Manmohan Singh Liberalization injected a new spirit of growth. It gave boost to the stock market and attracted Foreign Direct Investment (FDI). The Industries Development and Regulation Act was Alost abolished. Foreign participation in equity and debt funds boosted Indian industry. Dhiru Bhai Hirachand Ambani founded Reliance Industries and set up Naroda Textile Plant with 10,000 workers churning out 2,50,000 square meters of fabrics with highly advanced technology. The company diversified its activities. Recently, Reliance invested $ 6.5 billion in Telecommunication sector to provide telecom services. Ashim Hashama Premji set up Rs. 18 billion Wipro Corporation.

Two industrial giants Grassim and Hindalco were located in 1992. Grassim with a $ 90 million Global Depository Receipt issue and Hindalco with $110 million Euro Issue.

Emergence of Women Entrepreneurs in India

“Small enterprises by women entrepreneurs come under Small Scale Industrial Units (SSI Units) or business or related enterprise managed by one or more women entrepreneurs in proprietary concerns or in which they individually or jointly have a share capital of more than 51% or partners/share holders directors of private limited company/member of a co-operative society.”

Women entrepreneur have been in Indian industries for a long time. However, their number is very small as compared to that of male entrepreneurs. It is not surprising in a male dominated society. The development of entrepreneurship never occurs as an accident It is dependent upon various factors such as economic, political, social cultural, environmental and psychological. Needless to say that these factors have not been favourable to the women entrepreneurs. The reasons for the above sorry state of affairs are not very far to seek and understand. The reasons are:

  1. Male dominated society.
  2. Socio-cultural taboos confining the women to the four walls to perform house-hold chorus.
  3. Heavy family responsibilities to look after children, cattle, agriculture, etc.
  4. Lack of education.
  5. Lack of resources.
  6. Lack of entrepreneurial competency and abilities.
  7. Unwillingness to take risk.
  8. Absence of economic independence.
  9. Tough competition with male entrepreneurs.
  10. Role conflict house wife vs. income earner.

Women entrepreneurs have been engaged mostly in cottage industries such as food processing notably ‘paper’, making, Pickles (achar), murabba (jam), followed by readymade garments. Women entrepreneurs are taking up other trades and industries such as dried flower, information technology, export, import, leather products, electronics, engineering, toy making, jewellery, etc. The Government has realized the importance of entrepreneurial contribution of women entrepreneurs. As such it is making concerted efforts to promote women entrepreneurs.

There has been phenomenal growth in the number of women entrepreneurs.

The number of women entrepreneurs in India in 1995-96 was more than 2,95,680. The share of women entrepreneurs in the total population of self employed workers has gone up from 5.2% in 1981 to 11.2% in 1995-96. Thereby registering more than 100% rise.

The Government has come out with a new Industrial Policy which envisages special entrepreneurship programme for women entrepreneurs in the form of product process oriented courses. The objective of these courses is to enable them to start small scale industries with a view to raise their economic and social status.

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