What is Women Entrepreneurship? It’s Future Challenges

Women entrepreneurship is the process of creating new venture by women through risk-taking, innovating and managing for rewards.

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What is Women Entrepreneurship?

Women entrepreneurship is the process of creating new venture by women through risk-taking, innovating and managing for rewards. It refers to women in an independent business.

            The process of entrepreneurship is common to both man and women. It is only the gander that distinguishes the women entrepreneurs from men entrepreneurs. However, women should stand as a special focus group for entrepreneurship development. They differ in terms of motivation, business skills, and occupational background.

        Women entrepreneurs are women who initiate, organize and run a business enterprise.

        The desire for economic independence and to contribute to family income is the key to the emergence of women entrepreneurs. The rising consciousness through education and training among women has facilitated the growth of women entrepreneurs.

Women Entrepreneurship

         The need to achieve also motivates women entrepreneurs. The rising interest in empowering women through equal treatment and opportunities has aided the processes of women entrepreneurship.

             Women entrepreneurs perform the following functions:

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  1. Creation of New Venture: Women entrepreneurs explore the opportunities in the environment for starting a new venture. They identify, evaluate and select a promising opportunity to convert it into a new venture to get self-employed. They are imaginative. Most venture by women is in services.
  2. Risk Taking: Women entrepreneurs assume risks associated with the new venture. Such risks can be financial, psychological and social. There is no guarantee of success. They take calculated risks. They seek information.
  3. Innovation: Women entrepreneurs convert inventions into innovations. They innovate to meet changing demands in the market. They establish research and development facilities to aid innovation. They initiate new innovations.
  4. Management: Women entrepreneurs get directly involved in the management of the new venture. They put in hard work and efforts. They plan, coordinate, and control. They provide leadership to motivate and direct employees. They have persistence even in adverse circumstances. They manage time effectively. They are employee-driven.
               Note: In the USA, women start new ventures at three the race of man. They account for 70 % of all new business. They own 8.5 million business which employs 17 million people.

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Difference Between Men and Women Entrepreneur

Characteristic

Man Entrepreneurs

Women Entrepreneurs

1. Motivation

Achievement, Independence to be his own boss.

Achievement, independence to do it alone, discipline.

2. Departure

Dissatisfaction with present job.

Frustration with present job.

3. Source of Funds

Personal Assets and saving banks, friends.

Personal assets and saving, personal Loan.

4. Occupational background

Experience in manufacturing, finance, technical areas.

Administrative experience in service.

5. Background

Firstborn child, a degree in business

Firstborn child, a degree in liberal.

6. Support Group

Friends, professionals, business associates, spouse.

Friends, spouse, family, women groups.

7. Types of new Venture

Manufacturing or construction-oriented.

Service-oriented in the market niche.

8. Personality

Opinionated and persuasive.

Flexible and tolerant.

Also Read: The 15 Most Successful Female Entrepreneurs in the World

Future Challenges of Women Entrepreneurship Problems

           Women entrepreneurship faces a host of problems. Some problems are generally faced by all entrepreneurs. However, some problems are specific to women entrepreneurs. Problems provide future challenges to women entrepreneurs. The important problems faced by women entrepreneurs are:

Also Read: What is Entrepreneurship Business Vs. Small Business?

What is Women Entrepreneurship

  1. Poor Access to Finance: Women entrepreneurs lack adequate capital. They usually rely on personal assets and savings for start-up capital. Their access to external sources of finance is limited. Generally, women lack ownership of property or use as collateral to get bank loans. In most developing countries, properties are inherited by sons.

    – Banks and financial institutions consider women as less creditworthy. They lack track recorded in financial performance. They also lack education and knowledge to get bank loans. Women entrepreneurs generally rely on loans from close friends and relatives to start a new venture.

    – Poor access to finance is likely to constrain the success factors of women entrepreneurs and provide a challenge to them

  2. Lack of Skills and Experience: Women entrepreneurs lack skills and experience in manufacturing. Construction and technical areas. They generally possess administrative experience. This limits their entrepreneurship to service-related ventures, such as beauty clinics, boutiques, florist, education, consulting, public relations, etc.

               Illiteracy among women is widespread. Women tend to study liberal arts in schools and colleges. Lack of technical and management education has been a major stumbling block of the growth of women entrepreneurship. Women lack knowledge about business know-how and marketing. This has adversely affected their capacity to take risks. They also lack managerial experience.

  3. Business Relationship: Women find limited opportunities for developing business relationships. They lack time and effort to get acceptance in male-dominated groups and networks. They face discrimination at work-place for rising to the top of the organization.

  4. Low Mobility of Women: Compared to male, female tend to be less mobile. Traditionally, the place of women was confirmed within the four walls of a home. In most developing countries, women cannot travel alone in faraway places. The male-dominated offices look at women entrepreneurs with skepticism and humiliating attitude. Poor mobility discourages women entrepreneurs and constrains their success factors.

                – Women are relatively new in entrepreneurial roles. They have remained confined to traditional which can be run from homes, such as pickle and powder. Arts and crafts have also attracted women.

  5. Family Pressures: In many societies, the main role of women is to look after the household and bring up children. This role prevents women to devote time and efforts for a new venture. In male-dominated societies, the husband does not allow their wives to start business or employment. The prevents the economic independence of women. Family pressures have related to the growth of women entrepreneurs.

  6. Other Challenges: Other challenges of general nature, which constrain success factors of women entrepreneurship, are:

    (1) Lack of Infrastructure: They can be in terms of power-roads, communication, water, and industrial parks. Institutional support systems do not treat women as a special target group.

    (2) Stiff Competition in the Market: Women entrepreneurs lack resources to promote their products. They also lack knowledge and information about marketing. Marketing presents a serious challenge for women entrepreneurs.

    (3) Raw Materials Shortages: Scarcity of raw materials needed for art-craft-oriented entrepreneurs run by women has constrained women, entrepreneurs.

    (4) Legal Constraints: Too many laws and regulations discourage women to enter into new ventures. Women feel uncomfortable in dealing with bureaucracy and the legal system.

    Women Entrepreneurs

Women Empowerment through Entrepreneurship

              The following measures help women empowerment through entrepreneurship:

  1. Treat women as a special target group for entrepreneurial development programs.

  2. Establish vocational training institutions for skills development of women.

  3. Design an institutional support system to suit the requirements of women entrepreneurs.

  4. Reform laws to provide access to institutional finance and promote equality for women.

  5. Involve women in decision making in matters related to entrepreneurship development.

  6. Increase the status of women.

  7. Develop networks of women entrepreneurs.

Conclusion:

               The desire for economic independence and to contribute to family income is the key to the emergence of women entrepreneurs. The rising consciousness through education and training among women has facilitated the growth of women entrepreneurs.

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