Women Empowerment and SME Development in India: A Detailed Report

This research report investigates the significant contribution of women empowerment towards the development of Small and Medium Enterprises (SMEs) in India. It explores the research aim to understand the contribution of women entrepreneurs to SME development. The study delves into the role of small-scale industries, the favorability of the SME industry environment for women, and identifies the challenges faced by women entrepreneurs while examining best practices for female-owned SMEs. The report provides an overview of the research background, rationale, and significance, emphasizing the increasing participation of women in the SME sector and its impact on India's economic growth. It highlights the importance of women entrepreneurs and the various initiatives taken by the government to support them. Furthermore, the report addresses the issues and problems faced by women in starting and managing their own businesses, such as financial and human resource challenges. The research also includes a literature review, covering themes such as understanding women's empowerment, the role of small-scale industries, the SME industry environment, and the challenges faced by women entrepreneurs in the Indian context. The report aims to provide insights into how women can overcome challenges and contribute to the growth of SMEs in India.

WOMEN EMPOWERMENT TOWARDS
SMALL AND MEDIUM ENTERPRISE’S
DEVELOPMENT IN INDIA: THE
CONTRIBUTION OF WOMEN IN
DEVELOPMENT OF INDIA'S ECONOMY
WITHIN SMALL AND MEDIUM SCALE
INDUSTRIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Research Title..............................................................................................................................1
Research Aim...............................................................................................................................1
Research Objectives.....................................................................................................................1
Research Questions......................................................................................................................1
Research Background..................................................................................................................1
Rationale of the Research............................................................................................................3
Significance of the Research.....................................................................................................5
Research Scope............................................................................................................................6
LITERATURE REVIEW..............................................................................................................10
Theme 1: Understanding about women empowerment.......................................................10
Theme 2: Role of small-scale industries in women empowerment in India.......................20
Theme 3: SMEs industry environment in India in context of women................................24
Theme 4: The challenges faced by women and examine best practices for female owned
SME's........................................................................................................................................33
REFERENCES..............................................................................................................................54

INTRODUCTION
Research Title
Title of this research project is: Contribution of women empowerment towards SME’s
development in India.
Research Aim
Main aim of this research is “To explore the contribution of women empowerment
towards SME’s development in India.
Research Objectives
This research is split into two variables which is dependent and independent (Bos and
Millone, 2015). SEMs development in India is dependent variable which is depend on
contribution of women entrepreneur. These are some essential and useful objectives related with
the research aim are determined as under:
 To extend understanding about Women empowerment.
 To explore Role of women in Small-Scale Industries in Andhra Pradesh
 To analyse the favourability of SME industry environment to Women.
 To identify the challenges faced by women and examine best practices for female owned
SME's
Research Questions
Research question is mainly based on research objectives. These are the research
questions:
 What are the basic phenomena about Women empowerment?
 Does the SME environment favour women?
 Are there challenges limiting women in contributing to SME?
 What the knowledge about the best practices for female owned SME’s?
Research Background
Small Medium Enterprises (SMEs) plays a vital role in economic development of a
country (Calman, 2019). Their role in terms of production, generation and contribution of
employment not only helps in improving the economic condition of a country but also helps in
reducing unemployment within a country. For Indian economy also SME are equally important.
It has been observed that nowadays contribution of women is also increasing i.e. today a greater
number of women are starting to work or start their own business. In each sector a greater
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number of women are engaging themselves in performing different kinds of jobs at different
levels. From top to bottom i.e. at each level women are participating in equal number as
compared to men. Other than working as an employee, women are also giving a tough
competition to male entrepreneurs. Even in India number of women entrepreneurs are increasing.
If only SME’s are focused then it can be said that SME has a greater number of Women
entrepreneurs as compared to male entrepreneurs (Ramadani, Gerguri-Rashiti and Fayolle, 2015)
. Contribution of Women entrepreneurs is playing a vital role in development of countries like
India. There is another side of this fact which focuses on all kinds of issues or problems that are
faced by Women in starting their own business-like financial problems, human resource problem
etc. All these issues are impacting growth of women entrepreneurs which is causing a significant
decrease in participation of women entrepreneurs in SME. It is very crucial for both the
developed and developing countries whether they are small as well as medium they always
represent the economic development model that la emphasis on the high contribution regarding
domestic production, employment generation , effective contribution regarding the foreign
exchanges earning to the country regrading low import operations called imperative operations
(Garikipati and et.al., 2017). SMEs sector also emerged as a vibrant as well as dynamic sector
regarding economy. The Indian economy is more expected to grow 9 percent per annum until
2020 and also becomes the largest within the world. It can be ahead to the United states by 2051
as well as third largest after the United States and China by 2032. In order to understand the
influence the SMEs within Indian economy is that they must study the trend as well as pattern
that can be prevalent within the previous year. These Medium and Small enterprises consider as
the backbone in general and secondary sector of an economy. For developing countries such as
India, they are known as panacea regarding various economic woes such poverty, inequalities,
poverty, regional barriers.
These MSMEs played a great role as well as assuring the socialist goals such as women
empowerment balance regional development and also envisaged through planners immediately
after the independence. It found to be more efficient to provide the women employment
opportunities relatively at lower cost (Ramadani, Gerguri-Rashiti and Fayolle, 2015). The
women working here are relatively. Indian economy is growing rapidly at high pace. It is
because of rise in number of SME’s that are highly contributing in GDP of nation. In present
times, a large number of SME’s has emerged in India. They belong to different sectors and are
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operating successfully (Garikipati and et.al., 2017). Moreover, women are also engaged in
managing business. They are working at high position like managers, CEO, etc. Moreover,
government has taken various initiatives as well to empower women in managing SME’s. it has
enabled in educating women and motivating them to work in SME’s. through SME’s women are
able to gain skills and knowledge. They are now able to manage business effectively and become
independent. SMEs as better pathway for women empowerment is that these industries requires
small amount of investment. Thus women with good business skills can also make investment
can generate profitability making them financially self regulating (Ramadani, Gerguri-Rashiti
and Fayolle, 2015) . The small scale industries are also crucial as it can improve growth as well
increase productivity.
Rationale of the Research
Present research is based upon importance of women entrepreneur in growth and
development of India (Calvi, Lewbel and Tommasi, 2017). The main reason behind choosing
this as a research topic is that today number of women entrepreneurs are increasing in business
world which is playing a vital role in development of countries like India. This research is
important to understand the way in which role of women can be increased in development of a
country and what role does SME plays in increasing women empowerment (Qureshi, Khan and
Uprit, 2016). In order to increase women empowerment in business world small and medium
enterprise plays a vital role. This is one of the reasons why this topic has been chosen as this
research will help in highlighting the role of women entrepreneurs in small medium enterprise in
development of a country like India (Afshar, 2016). In addition to this, the academic interest of
the researcher is another reason for choosing this topic.
Women play a vital role in the running and functioning of the nation by making their
contribution in various fields such as politics where they contribute their efforts at times being
President, Prime Minister of India, Leader of Opposition and Speaker of Lok Sabha. States in
India such as Bihar, Madhya Pradesh, Himachal pradesh, Uttrakhand, Andra Pradesh, Himachal
Pradesh, Jharkhand, Chhattisgarh, Karnataka, Kerla, Orissa, Maharashtra, Tripura and Rajasthan
have initiated implementation of 50% reservation of women in PRIs. Panchayats hold enormous
number of members. Kodaserry Panchayat in Kerala have 100% elected its members as women
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are currently there as 2 chief ministers of India are female along with 12 out of 29 states and
union territory of Delhi have at least one female Chief Minister.
Recruitment of women for non-medical post for Indian Army Forces began positioning in
1992. From 2013 Border Security Forces (BSF) began recruitment of women where in year 2017
Tanushree Pareek is the first female combat officer commissioned by BSF gave women the
freedom to serve for the nation and express their patriotism in efficient and effective ways.
Where government embedded several law's for their protection and safety such as
Guardians & Wards Act, 1890, Indian Panel Code, 1860, Christian Marriage Act, 1872, Indian
Evidence Act, 1872, Married Women's Property Act, 1874, Workmen's compensation Act, 1923,
Indian Succession Act, 1925, Immoral Traffic Act, 1956, Dowry Prohibition Act, 1961,
Commission of Sati Act, 1987, Cinematography Act, 1952, Births, Deaths & Marriage
Registration Act, 1886, Minimum Wages Act, 1948, Prevention of children from sexual offences
Act, 2012, Child Marriage Restraint Act, 1929, Muslim Personal Law Application, 1937,
Indecent Representation of Women Act, 1986, Special marriage Act, 1954, Hindu marriage Act,
1955, Hindu Succession Act, 1956, Foreign marriage Act, 1969, Family Courts Acts, 1954,
maternity Benefit Act, 1961, Hindu Adoption & Maintenance Act, 1956, Code of Criminal
Procedure Act, 1973, Medical Termination of Pregnancy Act, 1971, National Commission for
Women Act, 1990, Pre-conception and pre-natal diagnostic techniques, protection of women
from domestic violence act, 2005, sexual harassment of women at workplace act, 2013, Indian
divorce Act, 1969, Equal Remuneration Act, 1976, Hindu Widows Remarriage Act, 1856 and
Muslim women act, 1986.
India in today's time is facing low life expectancy of their women compared to that of
other countries in the world which is gradually improving but is a major concern for the nation.
Women and girls from rural culture are facing nutritional deficiencies and are mostly
malnourished where poor nutrition practices during pregnancy which lead to complications
during birth where 42% of the delivery process happen under supervision of expert whereas
other 58% occur with the support of elder women in the house along with many other un
professional members of the family who lack knowledge about pregnancy.
Indian Air Force also recruits women for combat and support roles. During Kargil war
Gunjan Saxena was the first supporting sorties whereas Deepika Mishra in 2006 was first IAF
woman pilot received training for Sarang display team. Whereas Nivedita Chodhary 2012 was
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first women from Indian Air Force to summit Mount Everest. Whereas further the year 2015
added women as fighter pilots, adding their roles of helicopter pilots for Indian Air Force. The
year 2015 added 1500 women that include 94 pilots along with 14 navigators where wing
commander Shaliza Dhami was the first female officer having permanent commission with
Indian Air Force where Minty Agarwal squadron leader was the first women receiving Yudh
Seva Medal. Further Dr. Punita Arora in 1968 became second Indian women promotes as three
star ranker after Lt. General Punita Arora. Dr. Seema Rao Indian Wonder Women first Indian
woman commander trainer who have trained 15000 special forces in India served for 20 years
consequently without compensation as close quarter battle. Further women are serving in central
reserve police force, central industrial security force, border security force, sashastra seema bal,
Indo Tibetian border force. Further they are also accountable to serve in national security guard,
special protection group, railway protection force, national disaster response force. Women in
Indian Cost Guard, Assam Rifles and Special Frontier Force where Indian Coast Guard on
January 2017 deployed four female officers for combat roles namely commandants Anuradha
Shukla, Sneha Kathyat, Shirin Chandran and Vasunshara Chouskey in Indian maritime bordering
Bangladessh and Pakistan.
Significance of the Research
Significance is crucial within a study as it help in presenting the reason about why
conduction of a particular resaerch is important and how its outcome would be helpful. It also
helps in understanding who will be the users of the research who can benefit for this particular
research (Garikipati and et.al., 2017). This research contributes in understanding role of women
empowerment in SME’s in development of a country like India. This research also benefits the
researcher in understanding contribution of Women in development of a country, issues or
barriers that are faced by women entrepreneurs, Role of Small-Scale Industries in Women
empowerment in India, SMEs industry environment in India in respect of Women, best practices
for female owned SME’s in India (Ramadani, Gerguri-Rashiti and Fayolle, 2015) . With the help
of this research study women entrepreneurs can understand the way in which they can overcome
their issues or problem that are faced by them.
This chapter has identified the ways in which the women have come up with the growth
and development of themselves which has aimed for the development of small enterprise. The
roles and functions has developed the quality and increased the status of the women. This has
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developed the level of equality among the development of women workers which has increased
the significant value of the women workers which has aimed for the development of female
workers. As there is a growth of women in gender equality this has increased a significant value
of the workers (Qureshi, Khan and Uprit, 2016). This research has showed how female workers
have developed in India, many of the women workers are the owners of many small-scale
business. Many of the women workers has grown as an entrepreneur. Which has brought equality
among the workers and provided am equal status to the women. In Indian economy it is
necessary to find out role of women as entrepreneur and in SME’s. This is because in recent
times, women are highly involved in starting their own business and contributing in other
SME’s. Women are competing with men in making a business successful. They are offering new
ideas and strategies. Furthermore, women participation in business has increased. They are
working as managers in various SME’s. Thus, it has transformed the growth of SME’s.
Therefore, it has resulted in empowering women and there is high rise in their participation in
business. Furthermore, study emphasis on why there is rise in women in SME and its growth.
India is nation where there is gender inequality. Also, most of SME are managed by men. This
study will throw light on how women are playing vital role as entrepreneur. Also, it will reflect
how in social, economic, etc. way women are contributing in SME’s. beside this, research will
provide stats and raw data on women role in making SME’s successful and expanding in other
markets (Buckley and Perlman, 2018). Alongside it, how small business enterprises growth and
development is done through effective strategies and goals.
Research Scope
The data will be collected in the form of questionnaire through a survey which helps the
researcher to collect required data with survey questions so that analysis of the data can be done
in a convenient manner (Buckley and Perlman, 2018). Inductive approach will be used by
research, this will help in reaching the conclusion by collating more appropriate information
about the research topic. This research paper has been done with minimum limitations. Despite
of these limitations this research is appropriate enough to be used in future in understanding
women role in developing countries. In future this research can be a reference document by
women entrepreneurs in order to improve their participation in development of their country.
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It is very essential for a researcher to remain more careful about what is required to be
performed i.e. general purpose of the study, what population sample is to be selected about the
study. The topics as well as theories that researcher does and also geographical location covered
within the study. Research can be conducted to know as well as learn new technologies,
innovation,new developments such as method to know the women role in various decision-
making process as women are strongest in decision-making . Research done to get the
complexity,characteristics,social,feasibility as well as viability. SMEs are important for
economic and social reasons as they give employments to a large number of Indian citizens.
SME are more important to developing countries like India where the gap between rich and poor
is large (Qureshi, Khan and Uprit, 2016).. SME contribute to Indian economy not only in
development but also with the job creations in the country with comparatively lower cost of
capital than huge industries and corporates. The main factors which are affected by SME are
poverty, inequality and unemployment. SME have helped India during the time of the financial
crisis with providing employment opportunities to a large individuals. SME is very much known
for the employment opportunities it provides to the local communities which mainly include
unskilled and skilled workers who do not get employment in large organisations. It also brings
growth and innovation into the business thereby nurturing the local communities. One of the
most important contribution of SMEs was the promotion of balanced economic development
(Buckley and Perlman, 2018). These small enterprises provide a cushion for the socialistic goals
of income equality and regional development. When these SMEs are set up in the local areas of a
region/state, they are also industrializing the rural and backward areas and helping them moving
and uplifting them toward a better condition and improving the standard of living of rural area
people. SME also provide backup to the bigger organisations by doing their outsourced work at
cheaper costs. This help the bigger organisation to invest in developing country like India which
in turn increases the gross domestic product (GDP) of India, which is of the key indicators of
economic development for a country. So SME plays an important role in developing the
economy of the country. SME is considered to be the most dynamic sector for the growth of
Indian economy, as SME deals with a large amount of dynamic products. SME has been running
Indian economy for more than 50 years and now more and more people are setting up their
business in the SME sectors (Qureshi, Khan and Uprit, 2016). In the previous 3 years have
been, Indian economy has been drastically changed with the help of SMEs. Government has
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introduced policy like make in India, skill India to encourage and support SMEs. Digital India is
also helping the small players get aligned with m-payments and e-commerce. Government
initiative that have majorly affected the SMEs are offering credit for technology upgrades,
helping manufacturing units with national competitiveness program, helping SMEs ton grow
further in foreign markets. SME contribute to around 45% of the India's total GDP. In India
around 46 crores people i.e., almost 35% of the India's total population. So, the importance of
SME's are much more then these number to the well being of India. Role of SMEs in the well-
being of India is not only participating directly or indirectly in the mainstream economy, but also
to act as a panacea for economic woes like poverty, unemployment, income inequality and
regional imbalances (Buckley and Perlman, 2018). So SMEs has been playing an important role
in developing the economic growth of India. This research will help other scholars with the data
which is carried out for the development small-scale enterprise. Various opportunities are created
which has helped women to develop within the organisation. Increasing workforce of female
workers will improve the development of women and create an opportunities for the women
empowerment. This research is carried out to evaluate the development of the women workers in
the national economic growth which aims in the development of the small enterprise. This
reflects the working scenario of the women in the society. This research will improve the
working conditions in which government of India will motivate women workers and increase the
growth of women. This research also elaborates the future of women workers which will help
many small enterprise with the data interpreted in this research, which will help in increasing
liabilities of the women any help to improve the skills and track their development (Ramadani,
Gerguri-Rashiti and Fayolle, 2015) . The small scale industires are crucial for the incresing job
oppoerutnies as well as ecomonic development .It enhaces the growth through enahcing rural and
urban growth.The issues like Slums,povert ,polutions as well as many development acts .If
amount of capital is invested wthim small countries helps to reduce unemployment within india
so that it enahces economic development within india .The industry within a sector that
produces goods within a segment. Woman in small scale industries need a realtively smaller
amount than the needed large-scale industries (Buckley and Perlman, 2018). .Another attraction
calls for a great deal regarding development as well as management. These small scale
industries are crucial relatively low proportion as well as material compared with total amount
regarding capital used. These are the quick investment type that needed investment of capital as
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well as start of the flow of produced goods. (Qureshi, Khan and Uprit, 2016).Small and medium
size enterprise has a huge impact on the economy of India. These enterprises have been engaging
in creating employment opportunities for people. It has helped them in enhancing their lifestyle
and standard of living. SMEs in India contribute around 17 per cent to the country's GDP. They
also make a significant contribution to India's exports and industrial output at 40 per cent and 45
per cent respectively. It has supported them in enhancing their economic output. It has helped the
company in growing. It has also created opportunities for the people who are under-developed.
Their capacity for innovation and flexibility in a fast changing business environment makes them
crucial for success.
The small and medium size enterprise has also brought up innovation and creativity. This has
helped the people in improving their livi8ng standard. The small size enterprise has the
employees between 10-25 employees. They have turnover of 25 lakhs. The medium size industry
has also the workers between 20-30. They have made invested 50 lakh in the industry. They
make a large amount of profit. It has helped them in growing. It has also enhance the economy in
India. It has supported small and medium size enterprise in achieving their goals and objectives.
They have created employment opportunities up to 42.50 million. This has helped the country
like India in growing. It has also supported them in enhancing the gross domestic income. They
have also increased the national and international income of the country. It has supported them in
growing.
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LITERATURE REVIEW
Theme 1: Understanding about women empowerment
Background to women empowerment
According to Kapila, Singla and Gupta, (2016) women empowerment is defined as the
process or changes in the ways through which role and functions of women are elaborated and
recreated in specific circumstances in which their role was denied previously. All around the
world the role of women is dedicated mostly to their families and societies only and is not
expected to extend deeply into business or economic. However, for developing strong economy
it is necessary that women must be empowered completely so that they can take part in economic
life as well and contribute their skills, knowledge and efficiencies. Women empowerment is also
helpful in enhancing quality of life for all social members along with sustainability and
development. These practices involve practices for women where they can be home workers,
small producers, informal worker, markets, distributors, contractors, suppliers, designers where
women owned enterprises focus on making improvement towards premium markets, further their
role as a leader in business as well as communities will ensure involvement of women in senior
management will ensure they will develop 8-13 % higher returns when they are associated and
being made part of management, further as practices being women employees generate 15% and
above returns above national industry means along with enhancement of women in enterprise
will justify good image of company highlighting effective working conditions along with making
influences in policy making and markets resulting in increased profits with their efforts in
emerging market conditions.
As per the view of Calvi, Lewbel and Tommasi, (2017) private sectors offers greater
opportunity and contribution in empowerment of women's. This can be accomplished by
applying empowerment principles in market, community, workplace and all other segments of
business. It has been also analysed that for promoting sustainable development women
empowerment is a necessity. This approach is considered to be an essential milestone in
establishing gender equality for the development of humanity for other human practices. In
various cultures, political, social and economic institutions gender bias is quite evident. The
abuse and unacceptable level of discrimination prohibits the development and contribution of
women in decision making. Financial dependency over men is one of the most dominating factor
which encourages discrimination and abusive behaviour towards women affecting their mental
10