ABSTRACT

Women owned businesses are highly increasing in the economies of almost all countries. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in the society. With the advent of media, women are aware of their own traits, rights and also the work situations. The glass ceilings are shattered and women are found indulged in every line of business from papad to power cables. Empowering women entrepreneurs is essential for achieving the goals of sustainable development and the bottlenecks hindering their growth must be eradicated to entitle full participation in the business. Women in India are facing many problems to get ahead in business. This paper mainly focuses on funds (through financial institutes) as hurdle for most of the women entrepreneurs. Almost all public sector banks run special schemes to fund women entrepreneurs; yet it proves to be difficult for women to acquire loans easily. This is partly because of the mindset of bank officials who believe that women will have to run that extra mile to market their products, making it hard to make decent sales. Low awareness about these schemes is another reason for their slow uptake. The research paper aims at exploring various schemes offered by

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nationalized banks, challenges that women entrepreneurs face when it comes to avail funding and tips on how to make the going easy. Keywords: Women, Entrepreneurship, Empowering, Risk, Funds, Schemes, Nationalized Banks, Challenges

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INTRODUCTION
Entrepreneur is defined as the one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods. Th is may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Start-up Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations. Women Entrepreneur is a person who accepts challenging role to meet her personal needs and become economically independent. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing values in both family and social life. With the advent of media, women are aware of their own traits, rights and also the work situations. The glass ceilings are shattered and women are found indulged in every line of business from papad to power cables. The challenges and opportunities provided to the women of digital era are growing rapidly that the job
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seekers are turning into job creators. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation.

Constraints faced by women:

In India, although women entrepreneurship is a growing trend, the entrepreneurial world is still a male dominated one. Only 8 % of overall women entrepreneurs do paint a sorry picture [Source: Entrepreneur-Sept.2010].Women in advanced nations are recognized and are more prominent in the business world. But the Indian women entrepreneurs are facing some major constraints like

a) Lack of confidence In general, women lack confidence in their strength

and competence. The family members and the society are reluctant to stand beside their entrepreneurial growth. To a certain extent, this situation is changing among Indian women and yet to face a tremendous change to increase the rate of growth in entrepreneurship.

b) Socio-cultural barriers Womens family and personal obligations are

sometimes a great barrier for succeeding in business career. Only few women are able to manage both home and business efficiently, devoting enough time to perform all their responsibilities in priority.
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c) Market-oriented risks Stiff competition in the market and lack of mobility of women make the dependence of women entrepreneurs on middleman indispensable. Many business women find it difficult to capture the market and make their products popular. They are not fully aware of the changing market conditions and hence can effectively utilize the services of media and internet. d) Motivational factors Self motivation can be realized through a mind set for a successful business, attitude to take up risk and behaviour towards the business society by shouldering the social responsibilities. Other factors are family support, Government policies, financial assistance from public and private institutions and also the environment suitable for women to establish business units. e) Knowledge in Business Administration Women must be educated and trained constantly to acquire the skills and knowledge in all the functional areas of business management. This can facilitate women to excel in decision making process and develop a good business network. f) Awareness about the financial assistance Various institutions in the financial sector extend their maximum support in the form of incentives, loans, schemes etc. Even then every woman entrepreneur may not be aware of all the

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assistance provided by the institutions. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas. To relate this with one of the women entrepreneur Maria Dsouza, Kalina, age 38, has her parlour which she is running in rented place. She wishes to have her own parlour, and due to lack of fund she is not able to do so. As she is also not aware about loan facility provided by banks especially for women. g) Exposed to the training programs - Training programs and workshops for every type of entrepreneur is available through the social and welfare associations, based on duration, skill and the purpose of the training program. Such programs are really useful to new, rural and young entrepreneurs who want to set up a small and medium scale unit on their own. h) Identifying the available resources Women are hesitant to find out the access to cater their needs in the financial and marketing areas. In spite of the mushrooming growth of associations, institutions, and the schemes from the government side, women are not enterprising and dynamic to optimize the resources in the form of reserves, assets and mankind or business volunteers. Highly educated, technically sound and professionally qualified women should be encouraged for managing their own business, rather than dependent on wage employment outlets. The unexplored talents of young women can be identified,
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trained and used for various types of industries to increase the productivity in the industrial sector. A desirable environment is necessary for every woman to inculcate entrepreneurial values and involve greatly in business dealings. The additional business opportunities that are recently approaching for women entrepreneurs are: Eco-friendly technology, Interior Decorators, IT enabled enterprises, Event Management, Tourism industry, Fashion Industry, Herbal & health care, Food, fruits & vegetable processing.

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WOMEN IN INDIA
The Indian sociological set up has been traditionally a male dominatedone. Women are considered as weaker sex and always to depend on men folk in their family and outside, throughout their life. They are left with lesser commitments and kept as a dormant force for a quite long time. The Indian culture made them only subordinates and executors of the decisions made by other male members,in the basic family structure. The traditional set up is changing in the modern era. The transformation of social fabric of the Indian society, in terms of increased educational status of women and varied aspirations for better living, necessitated a change in the life style of Indian women. Indian families do have the privilege of being envied by the westerners, since women here are taking more responsibilities in bringing up children and maintaining a better home with love and affection. At the family level, the task of coordinating various activities in a much effective manner, without feeling the pinch of inconveniences, is being carried out by the women folk.

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Thus, the Indian women have basic characters in themselves in the present sociological and cultural setup as follows. 1. Indian women are considered as Sakthi, which means source of power. 2. Effectively coordinating the available factors and resources. 3. Efficient execution of decisions imposed on them 4. Clear vision and ambition on the improvement of family and children. 5. Patience and bearing the sufferings on behalf of others and 6. Ability to work physically more at any age.

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NEED OF THE HOUR

Women sector occupies nearly 45% of the Indian population. The literary and educational status of women improved considerably during the past few decades. More and more higher educational and research institutions are imparting knowledge and specialisation. At this juncture, effective steps are needed to provide entrepreneurial awareness, orientation and skill development programmes to women. The institutions available at present are very limited. Moreover, their functions and opportunities available with them are not popularised much.

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QUALITIES REQUIRED FOR AN ENTREPRENEUR

An effective entrepreneur requires certain basic qualities, which can be listed as follows. Innovative thinking and farsightedness. 1) Quick and effective decision making skill. 2) Ability to mobilise and marshal resources. 3) Strong determination and self confidence. 4) Preparedness to take risks. 5) Accepting changes in right time. 6) Access and alertness to latest scientific and technological information. Matching the basic qualities required for entrepreneurs and the basic characters of Indian women, reveal that, much potential is available among the Indian women on their entrepreneurial ability. This potential is to be recognized, brought out and exposed for utilisation in productive and service sectors for the development of the nation.

ACTION PLAN : Proper planning and execution are required at all levels. Proper training in right direction is to be planned meticulously.

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The steps to be taken can be listed as follows: 1) identifying women with different literary levels in proper groups and to create 2) awareness about entrepreneurship and its importance as job providing avenues rather than job seeking ventures. 3) skills to be provided to selected women group are to be identified. 4) making them to realise the income generation and social status and recognition 5) giving orientation and skill training on selected trades on their choice and suitability. 6) assisting them in preparation of project reports for their own proposed units and helping them to follow up the venture to start the new enterprise. 7) providing consultancy and guidance, continuously. A training capsule of around 15 days may be provided by expert institutions, voluntary agencies and Govt.departments.The financial resources are to be mobilised to provide this type of programmes, by the government organizations like banks, public sector organizations and voluntary agencies.. The higher education institutions, which are spreading throughout the country, may conduct programmes like this,regularly,in addition to their academic
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programmes,with or without govt.aid.Young graduates of that area and the final year students of U.G/P.G courses may also be provided with such training.Normally,infrastructures are available with such institutions. Getting expertise and mobilizing other requirements will also be easier for such institutions, since they are already having good establishment facilities. Voluntary agencies like Rotary clubs, Lions clubs, and etc.Govt. sponsored institutions like UGC, Science and technology Councils may interact with the colleges/universities, through financial assistance, to carry out the programmes. With proper financial assistance and effectively using them, each college/university may train 300 to 1000 youths, in the area of entrepreneurship development. When women are going to be the target groups, the benefit will reach a larger section of the society. Thus ED culture is to be developed gradually among the women, in addition to providing educational facilities to use the vibrant women force in right direction. Thus programmes combining, technical skill and entrepreneurship skill, to selected groups, will make the Indian women more self reliant and confident and would lead them to be envied by people at the international level.

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TRAINING COMPONENTS
Even though there are very efficient institutions at the national level ,like EDI Ahmadabad, NSTED BOARD ,NewDelhi ,NISIE, Hyderabad and at State level ,CED in Madurai and Chennai,TANSTIA in Chennai, such programmes are to be conducted at regional level, at the residential area of the women, in their vernacular language and to the specific requirement of the people of that area. The essential components of such training may be listed as follows. Awareness, career building and attitudinal change towards enterprise formation. Effective training on building up self-confidence and communication skills. Skill training on specific trades suitable to their option. Training on quick and effective decision making techniques and managerial skills 1) Training on marketing strategies. 2) Training on effective financial management. 3) Training on project formulation and implementation. 4) Scope for increasing access to new technologies and scientific knowledge. 5) Information on persons/offices to be contacted.
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6) Interaction with successful entrepreneurs for sharing their experiences Training in such areas are not going to have much financial burden to the govt., when compared to other developmental projects. This type of programmes can be conducted in all the parts of the country. A consistent and continuous effort in this project will add more dimensions Indian women and their empowerment. and to the economic development of the nation as a whole. Suggested list of appropriate areas suitable to Indian women entrepreneurs: 1) Food products manufacturing a. -Food processing and preservation. b. -Catering services and fast food centres. 2) -Interior decoration. 3) -DTP and Book binding. a. -Maintenance of Dairy, Poultry and their products. b. -Maintenance of house-hold appliances. 4) Stationeries retailing. 5) Manufacturing of note books and pads. 6) Packing & packaging a. -Diagnostic lab & pathology clinics. 7) Communication centers with telecom, fax, browsing,
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a. and Xeroxing facilities. b. -Readymade garments, embroidering and fashion designing. c. -Retail selling through different methods. d. -Art and painting works on commercial decorations. e. -Hiring of warehouses and godowns. f. -Floral decorations. g. -Jewellary h. -Beauty centers i. -Running old-age homes j. And so on. k. The list is only suggestive and not conclusive.

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LITERATURE REVIEW
The involvement of women in the economic development of Middle East through micro-enterprises was very less due to the socio-cultural restriction in the Middle East countries. The region has lately recognised the importance of entrepreneurship for the economic development of the country and to create competitive advantage. A study by Nic Paton (2006) (Global Entrepreneurship Monitor), studied more than 100,000 people in 35 countries has found that, while women entrepreneurs often exhibit patterns of behaviour similar to those of men, a gender gap nonetheless exists for entrepreneurial activity across the globe Women entrepreneurs are just as likely as men to seek out new opportunities, take risks and network with other entrepreneurs yet nevertheless find themselves lagging behind their male counterparts when it comes to entrepreneurial activity.

Challenges: A practical picture

Though a number of credit schemes are available for women, there are several bottlenecks as well. The first major problem is that while there is a lot of discussion on empowering women and promoting women entrepreneurs, these bank schemes only provide a minor relief in terms of interest rate and at times on
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collateral. The other terms and conditions of the schemes are similar to consumer loans. Moreover, in practice there is a major gap between policy and practice. Besides the project report, the sanction of the loan also depends on a case-to-case basis on the entrepreneur and the bank officer she approaches. The higher the loan amount, the more difficult it is to get loans. One of the problems is that it may be easy for a bank official to give a larger loan to a man compared to smaller loans to a woman because many smaller loans mean more paperwork. A woman mostly starts on a small scale. So at that level, she faces difficulty while accessing loans. It again happens at the growth level, where a woman wants to expand and is in need of a loan. At that stage, they give you only 10% more of their previous years turnover. This is obviously not enough. Besides, there is a need to sensitize bank officials. Neeta Kumar of Kala Gaon says, It took her more than one -and-a-half years to get a bank loan. They faced a lot of problems as they were artists. A bank even said why dont they build malls instead? When Neeta Kumar, a 41-year-old entrepreneur from Lucknow, decided to set up an artificial village in the outskirts of the city, it took her a year-and-a-half to manage funds for her project. While running from pillar to post with her project report in tow, Kumar had a hard time convincing bank officials that Kala Gaon, her
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dream venture, would be a viable business proposition and that she would not default on her loan. Her ordeal finally came to an end in the spring of 2006 when she threw open the gates of Kala Gaon supported by a Rs 60 lakh loan from Punjab National Bank. Today, the theme village is a major tourist attraction in Lucknow and has given a platform to several rural artisans and sculptors. Almost all public sector banks have special loan schemes for women entrepreneurs. But low awareness and a passive mindset ensure that there are very few takers. Example of women entrepreneur is not aware about the loan and their scheme. Story of Saroj ben who is 48 yrs. old with 2 children is quite common, an entrepreneur who has struggled and reached this stage. She stays in dharavi an area known as khumbharwada most of the people there are khumbhars [Potters] who make pots and diya of various type and design and supply it across AGRA, this is their seasonal business. Saroj ben also had same kind of work where she use to bring the diyas (lamp) colour them decorate them and sell to shops, but this business could not generate enough money to sustain their life. She is a drop out from school but had done beautician course, she decided to start ladies parlour to acquire some extra income. The initial requirement was a place for shop, material (cream, lotion, etc), tools (scissors, comb, and clutches), furniture (dressing table,

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chair, mirrors). She had already planned everything and worked according to her plan, this lady was not educated but had a vision. Her saving was not enough to support her dreams, she mortgaged gold got around 30 thousand, she rented a room near to her home. This is how Saroj ben showed courageand managed to overcome the difficulties. This was the only parlour in khumbharwada charges were very normal Saroj ben could make her profit well. After 2 years she could buy a room for her parlour and they yet continued with their family business of lamps. After 7 years she is able to purchase a flat for herself in miraroad. Take the case of Kavita Singhal, a jewelery designer. She belongs to a family that has been in jewelery designing for years. Though her family was supportive of her decision to enter this trade, she was in need of funds to start her own venture. Singhal initially found it difficult to convince banks that she would be able to market her products and run a profitable venture. Eventually, she managed to convince Canara Bank, where she has had a savings bank account for many years, to grant her a loan of Rs 1 lakh. Today, she manages to sell jewellery worth Rs 30,000 to 35,000 per month through her own outlet that she plans to expand in the near future. Motivations to start a business include economic independence, family welfare, and an emerging clientele. Unlike family-owned or male run businesses, small and

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medium sized women's enterprises are shorter-term products of cultural change focusing on upward social mobility for their families. Entrepreneurship impacts the marketplace, bolsters a struggling economy, empowers women in their household, and makes them cultural brokers in society. We have spoken to number of women entrepreneurs during the course of research and found that there is a common thread linking most, if not all of them. A typical woman entrepreneur belongs to two broad categories She is either from a financially secure background and is willing to take risks with her own venture or She is from an economically weaker background and wants to start an enterprise to sustain her family. Institutes or NGOs who conduct development program or workshop for these women say Most of the women who come to women entrepreneurship workshops are either from well-to-do-families, who think the risk is worth taking or those who belong to the lower-income group and are interested in starting a business for survival.]

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MOP Vaishnav college for women in Nungambakkam, Chennai is committed to the goals of attracting and supporting top caliber women students, and is the only college functioning in the city with an exclusive Entrepreneurial Development cell to boast.. The ED cell was formed in 1998, and is the brain child of the principal Dr Nirmala Prasad. The latter believes in the ideology that women ought to be different and not shackle themselves to just home or a 9 to 5 corporate job, but ought to learn how to strike a balance between home and career by venturing into more entrepreneurial ventures. The ED cell was formed in MOP Vaishnav college under the guidance ship of Canara Bank. The General Manager of Canara Bank was Mr Fernandes who offered all support , guidance and assistance in forming this unique venture, first of its kind ,in a college in the city. Ms Sumathi Iyer , head of women entrepreneurship cell of Canara bank , too played a crucial role in the inception of the ED cell. Ms Rosy Fernando, the head of the department of commerce and dean of student training and development, secretary of the ED cell, was most supportive and encouraging in sharing with us information about the ED cell and its various projects. If intellectual advancement enables a woman to think for herself ,

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financial security empowers her with the freedom to act opines Ms Rosy Fernando. Vocational and skill based training is imparted to the students of this college, that gives an added edge over others in facing stiff competition in securing placements as well as performing jobs. Twenty one special vocational skills are offered as a compulsory project for the students. They may select one each during their tenure in the college, plus select more vocational training projects, if they are able to complete it within a span of three years. To name a few, cake architecture, web designing, anchoring and photography, writing for FM radio,media presentation, TV news production, etc are some of the special training courses offered. The first project undertaken by the ED cell after its inception was the Innovative Self Employment Venture competition . Students came up with innovative ideas galore.Abhiramika, a student of MOP, completed a project called Vector Vibes , successfully. It involved undertaking and making presentations of and on behalf of the government. One should note that it was way back in the nineties when computers were relatively new to government offices , Abhiramika came up with this project in mind. Yet another student came up with a venture to popularize diamond jewellery among the upper middle class , thus shattering the myth that the same was exclusively only for the elite. Now, with t he assistance of the

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entrepreneurial cell of Canara Bank, this student entrepreneur has transformed into reality her dream project and is the proud proprietor of her own diamond shop in the city. The judging panel for the innovative self-employment project comprises of a banker, experts in the industry, a marketing person, an entrepreneur and an academician. The same panels help in identifying and funding these budding entrepreneurs to make their dreams come true. MOP has an entire database of women entrepreneurs who have come out with creative ideas and been assisted to set up business.For instance, in fields like cosmetology, flower bouquet making, tribal art, madhubani paintings, continental cookery, the list goes on.Experts in all these arenas visit MOP to give lectures and teach them the skills of their choice.Seminars, workshops and exhibitions are conducted. Students learn communication, presentation skills, analytical skills, gain confidence and a sense of achievement gets instilled in them. The much needed hands on experience for grooming the student entrepreneur is provided through the annual conduct of the MOP Bazaar,.This is functional every year in March.Initially , the college hosted 44 stalls. Now , the count has gone up meteorically to an amazing 110 stalls.The MOP Bazaar is modeled on the lines of the trade centre. By taking care of the manufacturing, service and retail aspects of entrepreneurship, students learn to look at the big picture.They learn to think

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across disciplines, join hands and pool in ideas, self help and importance of team work is emphasized. Thus, within three years, a graduation student gets incubator training to become a full fledged successful entrepreneur.They learn to source the material, handle customers,and assess the market_ much needed skills for an entrepreneur.During MOP bazaar, minimum profit grossed from each stall is Rs 2000 and a maximum of 25000 in just two days. Thus, the students learn to make profits. A unique experience to convert knowledge into practice is provided at the college. Bsc(N&D) run a health cafeteria, Bsc (ISM) manage the information system of the college, Bsc electronic media develop e content and manage the campus tv, BA. journalism bring out the college newspaper MOP Yuvashakthi.

The four pronged methodology helps them to get good placements._ internship, industry-institution synergy, institutional membership, and placement. By undergoing internship in their chosen fields, and submitting a project report, students learn to accept the challenges of the industry.Concerted efforts are taken by MOP to have n industry institution interface.Impressed by the competence and work culture of the students, many companies offer job placements even before completion of graduation. Heads of SME associations from all over the state and governmental institutions are invited to speak and guide these budding
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enterpreneurs.Officials of EXIM BANK talk about fair trade practices and export procedures. Entrepreneurially inclined films are telecast regularly_ films like GURU and October sky.. MOP has till date mentored more than a hundred successful women entrepreneurs, truly a rare achievement. Mini Mehta was a Bcom student with a very creative bend of mind and keenly interested in creative jewellery making.Rosy Fernando, secretary of ED Cell, identified her talent,helped her to get into a design institute in Surat,.On completion of the course,Mini returned to Chennai, and with the ED cell of MOP, started her own jewellery outlet at Mint, Chennai. Ms Madhu, a VISCOM student, conceptualised and formed her own multi media enterprise_ Fanti cart. A maths graduate runs her own textile printing workshop in Mylapore. Mentoring is an important aspect of the ED cell. Mr Mahadevan of Hot breads visits MOP to identify and mentor personally, anyone interested or inclined to start a bakery or confectionary. Dr Nirmala Prasad does not intend to stop with just mentoring her students. She aspires to extend this to the underprivileged sections of the society , thereby inculcating in MOP ians the lofty ideals of social entrepreneurship too.MOP has adopted schools and during brief vacations, MOPians go to theseschools and teach them vocational skills,.. Thus, seeds of entepreneurship are sown in the young
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minds. Avvay home in Adayar, Nungambakkam corporation school, Assumption school, are a few institutions adopted by MOP. Students learn cosmetology and jewellery making as vocational skills here. Seminars in financial literacy in free enterprise too is imparted here.Funding for these social entrepreneurship is undertaken exclusively by MOP. Akrithi, is a company run by students of Bcom corporate Secretaryship.This Company is into conducting event management programs Dividend is declared each year and students and faculty are the share holders The ED cell helps students to interact with MSME bodies and officials. It is Dr Nirmala Prasads dream to mould students on entrepreneurial lines and deviate from the trodden path._ be entrepreneurs and provide employment to millions and to broaden the Indian economic scenario. MOP Vaishnav is a member of the National Enterprise Network. Ms Rosy Fernando, secretary of the ED cell, was motivated herself to do research on entrepreneurship and has submitted her thesis on entrepreneurial potential in students. The ISTD students cell functions here. The Indian society for Training and Development is a national body formed for the e purpose of training and

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developing executives, and entrepreneurs. The students cell. Under the patronage of the parent body ISTD Chennai chapter, has grown from strength to strength. We wish the students and staff of this great institution all success in moulding and creating women entrepreneurs of great repute and caliber.

lmost all public sector banks have special loan schemes for women entrepreneurs. But low awareness and a passive mindset ensure that there are very few takers When Neeta Kumar, a 41-year-old entrepreneur from Lucknow, decided to set up an artificial village in the outskirts of the city, it took her a year-and-a-half to manage funds for her project. While running from pillar to post with her project report in tow, Kumar had a hard time convincing bank officials that Kala Gaon, her dream venture, would be a viable business proposition and that she would not default on her loan. During the course of her struggle for funding she even bumped into people who asked her to set up a shopping mall instead of a marketplace for artisans. Her ordeal finally came to an end in the spring of 2006 when she threw open the gates of Kala Gaon supported by a Rs 60 lakh loan from Punjab National Bank. Today, the theme village is a major tourist attraction in Lucknow and has given a platform to several rural artisans and sculptors.

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Kumars story is quite common in a country where women are still hesitant to don the entrepreneurs hat. Take the case of Kavita Singhal, a jewelery designer. I belong to a family that has been in jewelery designing for years. Though my family was supportive of my decision to enter this trade, I needed funds to start my own venture, she says. Singhal initially found it difficult to convince banks that she would be able to market her products and run a profitable venture. Eventually, she managed to convince Canara Bank, where she has had a savings bank account for many years, to grant her a loan of Rs 1 lakh. Today, she manages to sell jewelery worth Rs 30,000 to 35,000 per month through her own outlet that she plans to expand in the near future. Some Schemes for Women Entrepreneurs Bank of India Canara Bank Priyadarshini Yojana CAN Mahila Cent Kalyani

Central Bank of India Dena Bank Dena Shakti

Oriental Bank of Commerce Punjab National Bank

Orient Mahila Vikas Yojana

Mahila Udyam Nidhi Scheme

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Punjab & Sind Bank State Bank of India State Bank of Mysore SIDBI

Udyogini Scheme Stree Shakti Package Stree Shakti

Mahila Udyam Nidhi Mahalir

Tamilnad Mercantile Bank

Almost all public sector banks run special schemes to fund women entrepreneurs; yet it proves to be difficult for women to acquire loans easily. This is partly because of the mindset of bank officials who believe that women will have to run that extra mile to market their products, making it hard to make decent sales. Low awareness about these schemes is another reason for their slow uptake. In this article, DARE gives an overview of the various schemes offered by nationalized banks, challenges that women entrepreneurs face when it comes to avail funding and tips on how to make the going easy. The DNA of a woman entrepreneur DARE spoke to a number of women entrepreneurs during the course of research on this story and found that there is a common thread linking most, if not all, of them. A typical woman entrepreneur belongs to two broad categories she is either
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from a financially secure background and is willing to take risks with her own venture or she is from an economically weaker background and wants to start an enterprise to sustain her family. Ganesh Prabhu, a professor at the Indian Institute of Management Bangalore, corroborates the point and says, Most of the women who come to women entrepreneurship workshops are either from well-to-dofamilies, who think the risk is worth taking or those who belong to the lowerincome group and are interested in starting a business for survival. Perceptions What women say What banks say Not aware of special schemes Many women are usually silent partners, included just to get the benefit A relief of just 0.25 to 1% in interest rate is not worth the trouble Skeptical

whether women will be able to market their products and services; once convinced, do not hesitate to give loans The process is too time consuming and requires far too many visits to the branch Not many women come seeking loans for their startups Often do not get what is promised especially women
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Have special cells for helping entrepreneurs,

Women, typically, take up their hobbies as a business, especially when starting their enterprise singlehandedly. They generally get into businesses that interest them. This is evident from the fact that most women prefer starting home-based businesses from toy making and fashion designing to creating computer software. According to Prof. Prabhu, A woman entrepreneur will typically not think that since more people are doing a particular business and earning significant profits out of it they should enter the arena. Profit and size seems to be of less importance and satisfaction of doing it is of more importance to them. He adds, This is good in a way because this helps them to learn the basics well before they take bigger risks and invest high. Bank funding: Schemes and advantages Several nationalized banks in India have special schemes for promoting entrepreneurship, especially enterprises owned by women. For a woman to benefit under such a scheme, she should have a minimum of 50% ownership in the company. According to Prof. Prabhu, When a woman opts for the bank funding route, the assessment is made in the same way as other loans, but the terms and conditions are much favorable. Most of the nationalized banks in India have such schemes and also something called as the single-window coordination facility wherein one department will handle all the linkages required for getting the loan.
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The bank liked my concept and was quick to offer a me a loan of Rs 3 lakh. The entire loan procedure took just about a little more than a weeks time and aro und five to six visits. -- Vinnie Chaddha a beneficiary of the Dena Shakti scheme The schemes mostly give concession on interest rate of approximately 0.25 to 1%, depending on the loan amount. The procedure for applying is similar to other loans, the benefit of such schemes being that a preference is given to women. For example, under the Priyadarshini scheme of the Bank of India (BoI), the concession on rate of interest varies from 0.25% to 0.50% on retail banking that includes several loans like personal loans. According to VK Bansal, Chief Manager, Zonal Office, BoI, Applying under these schemes is similar to applying for other schemes. You have to submit an application along with the details of your business. Then it will be processed for information such as what kind of business you have applied for, whether you have the experience or not, what is your own contribution in this project etc. If we find it viable then we go ahead with the loan. The concession in the interest rate is also extended to other consumer loans.

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During the last financial year, the Chandigarh branch of Bank of India, disbursed approximately Rs 81 lakh to women entrepreneurs in 37 accounts. Similarly, Dena Bank under the Dena Shakti scheme promotes women entrepreneurship by funding a number of activities. Earlier, the scheme covered only the manufacturing sector, but now has been extended to agriculture and allied activities, small enterprises, micro and small (manufacturing and service) enterprises, retail trade, micro-credit, education and housing. Dena Bank gives a concession of 0.25% on interest rate. As per the banks website, the loan ceiling is described as follows, The maximum ceiling limits that can be considered for financing to women beneficiaries under this scheme will be as per the directives of RBI stipulated for various sectors under priority sector such as loans up to Rs 20 lakh under retail trade, Rs 20 lakh under education and housing and Rs 50,000 under micro credit as well as the banks specific schemes circulated to branches/offices from time to time. Considering the fact that a bank has to disburse 5% of the previous years adjusted net bank credit (ANBC) to women under all schemes, Dena Bank has a target of approximately Rs 1,185 crore, according to a source. Vinnie Chaddha of Reboot Shoe Laundry advocates the Dena Shakti scheme. She says, I was a participant at the Business Baazigar reality show on Zee TV that was

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aired three years back. My idea was one of the favorites of a judge, so he introduced me to Dena Bank. The bank, which was convinced of the idea, granted her a loan under the scheme. She says, The bank was quick to offer a me a loan of Rs 3 lakh. The entire loan procedure took just about a little more than a weeks time and around five to six visits. On being quizzed whether knowing somebody helped to speed up things, she was quick to reply, Funding depends on a number of things such as the loan amount, the concept etc. In my case, the loan amount was small, the concept was very fresh and I provided a guarantor for the loan amount. An added advantage is that some banks such as the State Bank of India (SBI) and Canara Bank have consulting cells for entrepreneurs. At Canara Bank, besides consulting, the cell also provides skill training, counseling and at times avenues for marketing their products as well. The counseling cells help provide a more realistic view of the business as they often give references of similar businesses and the issues they faced while starting up. During the last financial year, the bank disbursed Rs 489 crore for women under various schemes in the Delhi circle, a bank source revealed. Some loans also provide relief in terms of collateral security. Take for example, Oriental Bank of Commerces (OBC) Oriental Mahila Vikas Yojana. Under the

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scheme, no collateral security is required up to Rs 10 lakh and in the case of smallscale industries (SSI) no collateral security is required for up to Rs 25 lakh. The banks website states, Only hypothecation of assets created out of the banks finance will be taken as security. When contacted, a senior bank official said, OBC is one of the banks that have reached its target of disbursing 5% of the previous years ANBC. Besides, the bank is also actively engaged in providing micro-credit by providing doorstep services to rural women. Other nationalized banks with special schemes for women entrepreneurs are State Bank of India, Canara Bank and Punjab National Bank to name a few. Challenges: A practical picture Though a number of credit schemes are available for women, there are several bottlenecks as well. The first major problem is that while there is a lot of discussion on empowering women and promoting women entrepreneurs, these bank schemes only provide a minor relief in terms of interest rate and at times on collateral. The other terms and conditions of the schemes are similar to consumer loans. Moreover, in practice there is a major gap between policy and practice. Besides the project report, the sanction of the loan also depends on a case-to-case basis on the entrepreneur and the bank officer she approaches.

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The higher the loan amount, the more difficult it is to get loans. Uma Reddy, Founder President of Engineering Manufacturing Entrepreneurs Resource Group (EMERG) puts forward her theory and says, One of the problems is that it may be easy for a bank official to give a larger loan to a man compared to smaller loans to a woman because many smaller loans mean more paperwork. A woman mostly starts on a small scale. So at that level, she faces difficulty while accessing loans. It again happens at the growth level, where a woman wants to expand and is in need of a loan. At that stage, they give you only 10% more of their previous years turnover. This is obviously not enough.

The processes are too difficult. A lot of persistence is needed. As a country we are 102nd in setting up an enterprise and all these problems add to it. -- Uma Reddy Founder President, EMERG Besides, there is a need to sensitize bank officials. Neeta Kumar of Kala Gaon says, It took me more than one -and-a-half years to get a bank loan. We faced a lot of problems as we were artists. A bank even said, why dont you build malls instead? To counter this, according to Uma Reddy, There should be facilitation
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cells for women. As such the scheme or the cell is not the idea, but the idea is to support and develop women entrepreneurs. This is really not happening now. Reddy, who herself is an entrepreneur, says, I had also approached [a bank] for a loan, but even with many years of experience in the field, I faced a lot of problems. The process of getting a loan is still not women-friendly, because you have to visit the bank multiple times. This should be made easy. Some tips Research the various schemes available Before approaching a bank, one should be aware of the various schemes that banks offer. This helps in being more practical and knowing which schemes you are eligible for. According to Uma Reddy, You should be very well equipped with the various schemes. It prepares you to go to a official and demand to be funded under a scheme and benefit from it. Try to market your product first One of the major difficulties a woman faces is marketing. Even banks are very skeptical about this while extending loans. Prof. Prabhu says, Before starting up, I would ideally advice women to first test their product in the local market. They can invest some money from their pockets and get a small amount of their product
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manufactured by a local manufacturer. They can then try selling their product in the market. This helps in not only understanding the business better, but also when approaching the bank. Be thoroughly aware of your business plan Creating a business plan is of utmost importance. However, Uma Reddy explains that, Many a times what happens is that they sit with consultants to make the project report. In that case, it is very important to know the details of financial documents very well such as what is your debt equity ratio, when will be your break even etc. Prof. Prabhu corroborates the point and says, Sometimes, what happens is that they go too early to the bank and when the banks ask questions they get scared. Then, the banks might as well say, why should I give you loan when you even havent thought of this. Read loan documents carefully You might have heard this statement many times, but ignored it. When going for a loan, it is extremely important to sit with the banker and understand all clauses and calculations. Anjana Vivek, founder of VentureBean Consulting, says, You have to think through all scenarios before getting into a loan agreement. People often only look at the interest rate number, but there can be many hidden things. She

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explains, You might have taken a loan for, say, three years, bu t if your business does well and you want to pay the loan back, then there might be a pre-payment penalty that you may not have been aware of. Another thing is that often the interest rate is calculated at the end of the month, but if you have paid the loan on say the 5th of the month, then ideally the interest should be calculated for 25 days and not for 31 days. Join a womens network This helps in keeping in touch with other women entrepreneurs who are already in the field. This also aids in learning from the experience of other women. Another added advantage is that at times it helps in networking with bank officials. There are a number of such organizations such as AWAKE, EMERG and FIWE. Schemes

Women can start a unit with a group of two to three women promoters as a partnership venture or as a cluster of units. This will facilitate them to take care of their family duties and at the same time to look after the unit personally. Service industry and food industry are some of their tested areas of success. Suitable engineering industry with low labour intensity can also be started.
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Government policy since last two years is giving more emphasis to SSI units and many easy and innovative schemes are launched through commercial banks/ financial institutions. Promoter`s equity/margin are reduced for women. Concession in rate of interest is also provided. Seed capital schemes like National Equity Fund Scheme, wherein interest free equity type of assistance upto 25 % of project cost is provided. Special schemes like Mahila Udyan Nidhi is operated by SIDBI through commercial banks exclusively for Women to set up SSI units and to start service activities. Entrepreneurs can bring in their capital as low as 10% and 25% is provided as equity at low rate of interest. Balance of 65% is funded by Banks with a repayment period of over 10 years. Under Credit Guarantee Fund Trust for Small Industries Scheme commercial banks lend liberally to SSI units upto Rs 25 lakhs without collateral security. For women self help group special schemes are available with public sector banks to start SSI units extending concessional rate of interest and low margin and longer repayment period. There is another scheme called National Equity Fund under which 25 % of the project cost is funded as an interest free loan. 10% is to be brought in by the promoter and the banks fund balance 65 %. For prompt repayment of loan installments rebate in interest is also provided.

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To start a SSI unit basic requirements are infrastructure, manpower, procurement of materials, Fixed Assets and Machinery for processing, Storage facilities, Marketing of products and collection of receivables. Other requirements like complying with Govt regulations, pollution control, labour welfare, adhering to license conditions etc are also to be taken care of. While women promoters can take care of most of the areas, the external assistance of commercial banks/financial institutions is necessary for financing working capital needs and to acquire fixed assets and machinery, Schemes available with banks for working capital finance are 1. Cash credit Scheme, which is a funding arrangement of a major percentage

on the value of raw material, work in process, finished goods and receivables. 2. Other working capital finance schemes are Venture Capital funding,

Factoring, Discounting of Sales Bills, Letter of Credit facility etc. Schemes available for financing fixed assets and machinery are A. B. C. Term Loan Lease finance Hire purchase finance
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D. E.

Suppliers` bill discounting scheme Deferred payment credit scheme

Schemes for Women Entrepreneurs: The integrated schemes of assistance to women entrepreneurs which provide for identification, selection, training and consultancy and escort services apart from term loan facilities on concessional terms continue to receive increasing response. As a result, assistance to women entrepreneurs is increasing day-by-day. Some of the schemes introduced to provide financial assistance to women entrepreneurs are briefly summarized.

Schemes for Women Entrepreneurs links:

http://www.dcmsme.gov.in/schemes/wenterpre.htm http://www.apsfc.com/APSFC_FM/pages/faq.aspx http://www.sisihyd.gov.in/WomenEntre/Schmes4WomEntre.htm http://www.mastec.nic.in/sidbischeme.htm http://www.rd.ap.gov.in/PV_Doc.htm http://www.agrihortico.com/page.php?318
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http://www.kvic.org.in/update/scheme_link.htm Banks: http://www.sbhyd.com/advances_ssibranches.asp http://www.statebankofindia.com/viewsection.jsp?lang=0&id=0,203,206,21

http://www.andhrabank.in/scripts/StrengtheningOfCreditDelivery.aspx http://www.bankofindia.com/starmahila.aspx http://www.canarabank.com/English/scripts/PCPriorityCreditSection.aspx http://www.centralbankofindia.co.in/english/loan_kalyani.asp http://www.iob.in/MSME.aspx http://www.pnbindia.com/m_women.htm http://www.unitedbankofindia.com/sme-segment.asp http://www.vijayabank.com:8081/vijaya/vijaya/internet-en/menus/loans-

advances/retail-lending-schemes/v-swashakti.html The Small Industry Development Bank of India(SIDBI) has special schemes for financial and managerial assistance for women entrepreneurs. These are aimed at providing,

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1.

Training and extension servicing support to women entrepreneurs according

to their skills and socio-economic status. 2. Financial assistance on concessional terms to enable them to set up industrial

units in the small scale sector. The schemes are opened through State Financial Corporations(SFCs), State Industrial Development Corporations(SIDCs), Commercial Banks, State

Cooperative Banks and Regional Rural Banks. SIDBI refinance these institutions to the extent of the assistance they provide. For instance, the Maharashtra State Financial Corporation(MSFC) provides assistance in the form of terms loans for which the entrepreneur is expected to contribute atleast 15% of the project cost. A minimum debt equity ratio of 3:1 has to be maintained. The entrepreneur has to repay the loan over eight years, including an initial moratorium period of two years.

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BANK OF INDIAs Priyadarshini Yojana:

Under this scheme the bank provides long term and working capital assistance under the following categories. Professional and self employed. E.g. chartered accountants, lawyers and

doctors. Small Business e.g. beauty parlour, laundry and circulating library Retail traders e.g. fair price shops, general provision stores. Village or Cottage and Small Scale Industry Road Transport operators e.g.

audio rickshaws, taxies Allied agricultural activity

The maximum loan amounts sanctioned depend on the entrepreneur needs with limits of upto Rs.2 lakh for term loans and up to Rs.1 lakh for working capital. Interest rates depend upon the quantum of loan and range from 12% (For loans upto Rs.2 lakh). Repayment schedules are fixed after taking into account the expected surplus income and normally span a period of three to five years. The assets acquired with bank finance will need to be hypothecated to the bank as
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security. The entrepreneurs contribution margin will be about 20%, depending upon the type of activity intended to be undertaken. In addition, women entrepreneurs are also eligible for finance under the following government sponsored programmes where capital subsidy is available and the rate of interest is very low. Prime Ministers Rozgar Yojana(PMRY) Self employment programme for Urban Poor(SEPUP) Integrated Rural Development Programme(IRDP) Scheme of Interest Subsidy for Women Entrepreneurs: The main objective of the scheme of interest subsidy for Women Entrepreneurs is to provide incentives to the women with business acumen and entrepreneurial traits. All industrial projects whether in rural, cottage, tiny, small and medium scale(i.e. with capital cost upto Rs.3 crore) sectors, if set up by women entrepreneur(s) will be covered under the scheme. The scheme shall be operated through the State Financial Corporations(SPCs)/State level Financial institutions granting assistance

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to women entrepreneurs for setting up their industrial ventures in the rural, cottage, tiny, small and medium scale sector. To be eligible for availing herself of the subsidy under the scheme, a woman entrepreneur should fulfil the following criteria: 1. The woman entrepreneur should have undergone a full course of EDP in the

specified agency for the purpose of the scheme. 2. The woman entrepreneur should be unemployed before taking up the

industrial venture 3. 4. The venture should be her first venture The woman entrepreneur must have been sanctioned and disbursed financial

assistance by SFC or a State level financial institution. The assistance under the scheme takes the form of one time subsidy and is equivalent to the amount of interest payable by the industrial unit set up by the woman entrepreneur to the SFC or the State level financial institutions for the loan assistance sanctioned for the project for a period of one year, subject to a ceiling of Rs.25000 per annum.

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In addition to the above there are several schemes offered by various state government and state level agencies.

IDBIs Mahila Udyam Nidhi(MUN) Scheme:

IDBI has set up a special fund, Mahila Udyam Nidhi with a Corpus of Rs.5 crore to provide seed capital assistance to women entrepreneurs, intending to set up projects in SSI sector. The scheme is now being implemented by SIDBI. Women Entrepreneurs owning and managing an enterprise with a minimum financial status of 51% of the equity are eligible for assistance provided the project cost excluding Working capital does not exceed Rs.10 lakh. The debt equity ratio should be 3:1. Seed capital assistance will be provided in the form of soft loan up to a maximum of 15% of fixed cost to meet the gap in equity. Minimum promoters contribution insisted upon is 10% of the fixed cost. A nominal service charge of 1% per annum is charged, which is payable annually. The seed capital should be repaid over a period not exceeding 10 years including an initial moratorium period of 5 years. In this scheme, seed capital assistance is provided without insisting on security.

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Mahila Vikas Nidhi(MVN) Scheme:

Recognizing the role of voluntary agencies in improving the socio economic status of women, IDBI has decided to set up a special development fund, Mahila Vikas Nidhi, with an initial allocation of Rs.3 crore from its technical assistance fund. Assistance by way of grant and soft loan would be made available from the Nidhi to such voluntary organizations working exclusively for women and having a registered organization with a properly constituted governing body. Agencies with a proven record of performance in managing income-generating programmes would be eligible to receive aid under the Nidhi. Activities such as setting up of training cum development centers, skill upgradation such as setting up of training cum development centers, skill upgradation programmes, programmes of marketing assistance as well as management upgradation and such other industrial activities which improve the economic status of women would be eligible for support under the MVN. The assistance under the scheme would be towards one time capital expenditure, the recurring expenses being met by the voluntary agencies out of its funds or grants/donations from government or other agencies.

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State Bank of Indias Stree Shakti Package:

The SBI introduced a new package in November 1989 aimed at reinforcing its efforts in the area of developing entrepreneurship among women. Concessions and facilities under the package are given here. 1. An important highlight of the package is conducting of Entrepreneurial

Development Programme(EDP) exclusively designed for women all over the country with the help of SBI Staff Training College and local branches. 2. The branch managers along with field staff would provide the necessary

inputs and assistance to those women who do not plan to set up full fledged industrial ventures but would like to do something at home. In this scheme for loans of upto Rs.25000/- neither the guarantee nor the margin money is taken from borrowers. Further a discount of half a percent is allowed on the interest charged. The loan proposals received from women entrepreneurs would be sanctioned within a period of 30 days except in cases of proposals for high value and also where other financial institutions are involved.

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BANK FUNDING: SCHEMES AND ADVANTAGES

Some Schemes for Women Entrepreneurs

Bank Bank of India Canara Bank Central Bank of India Dena Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank State Bank of India State Bank of Mysore SIDBI Tamilnad Mercantile Bank Table No: 1 Scheme Priyadarshini Yojana CAN Mahila Cent Kalyani Dena Shakti Orient Mahila Vikas Yojana Mahila Udyam Nidhi Scheme Udyogini Scheme Stree Shakti Package Stree Shakti Mahila Udyam Nidhi Mahalir

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Several nationalized banks in India have special schemes for promoting entrepreneurship, especially enterprises owned by women. For a woman to benefit under such a scheme, she should have a minimum of 50% ownership in the company. According to the bankers, When a woman opts for the bank funding route, the assessment is made in the same way as other loans, but the terms and conditions are much favourable. Most of the nationalized banks in India have such schemes and also something called as the single-window coordination facility wherein one department will handle all the linkages required for getting the loan. The schemes mostly give concession on interest rate of approximately 0.25 to 1%, depending on the loan amount. The procedure for applying is similar to other loans, the benefit of such schemes being that preference is given to women. Table no.1 For example, under the Priyadarshini scheme of the Bank of India (BoI), the concession on rate of interest varies from 0.25% to 0.50% on retail banking that includes several loans like personal loans. According to VK Bansal, Chief Manager, Zonal Office, BoI, Applying under these schemes is similar to applying for other schemes. You have to submit an application along with the details of your business. Then it will be processed for information such as what kind of business you have applied for, whether you have the experience or not, what is your own contribution in this project etc. If we find it viable then we go ahead with the loan. The concession in the interest rate is also extended to other
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consumer loans. During the last financial year, the Chandigarh branch of Bank of India, disbursed approximately Rs 81 lakh to women entrepreneurs in 37 accounts. Similarly, Dena Bank under the Dena Shakti scheme promotes women entrepreneurship by funding a number of activities. Earlier, the scheme covered only the manufacturing sector, but now has been extended to agriculture and allied activities, small enterprises, micro and small (manufacturing and service) enterprises, retail trade, micro-credit, education and housing. Dena Bank gives a concession of 0.25% on interest rate. As per the banks website, the loan ceiling is described as follows, The maximum ceiling limits that can be considered for financing to women beneficiaries under this scheme will be as per the directives of RBI stipulated for various sectors under priority sector such as loans up to Rs 20 lakh under retail trade, Rs 20 lakh under education and housing and Rs 50,000 under micro credit as well as the banks specific schemes circulated to branches/offices from time to time. Considering the fact that a bank has to disburse 5% of the previous years adjusted net bank credit (ANBC) to women under all schemes, Dena Bank has a target of approximately Rs 1,185 crore, according to a source. Example: Vinnie Chaddha of Reboot Shoe Laundry advocates the Dena Shakti scheme. She says that she had participant at the Business Baazigar reality show on

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Zee TV that was aired three years back. Her idea was one of the favourites of a judge, so judge himself introduced her to Dena Bank. The bank, was convinced by the idea, granted her a loan under the scheme. She says, bank was quickly offered her loan of Rs 3 lakh. The entire loan procedure took just about a little more than a weeks time and around five to six visits. On being quizzed whether, knowing somebody helped to speed up things, she was quick to reply, that funding depends on a number of things such as the loan amount, the concept etc. In her case, the loan amount was small, the concept was very fresh and she was able to provide a guarantor for the loan amount. An added advantage is that some banks such as the State Bank of India (SBI) and Canara Bank have consulting cells for entrepreneurs. At Canara Bank, besides consulting, the cell also provides skill training, counselling and at times avenues for marketing their products as well. The counselling cells help provide a more realistic view of the business as they often give references of similar businesses and the issues they faced while starting up. During the last financial year, the bank disbursed Rs 489 Cr. for women under various schemes in the Delhi circle, a bank source revealed. Some loans also provide relief in terms of collateral security. Take for example, Oriental Bank of Commerces (OBC) Oriental Mahila Vikas Yojana. Under the

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scheme, no collateral security is required up to Rs 10 lakh and in the case of smallscale industries (SSI) no collateral security is required for up to Rs 25 lakh. The banks website states, Only hypothecation of assets created out of the banks finance will be taken as security. When contacted, a senior bank official said, OBC is one of the banks that have reached its target of disbursing 5% of the previous years ANBC. Besides, the bank is also actively engaged in providing micro-credit by providing doorstep services to rural women. Other nationalized banks with special schemes for women entrepreneurs are State Bank of India, Canara Bank and Punjab National Bank to name a few. Table No: 2

WHAT WOMEN SAY Not aware of special schemes

WHAT BANKS SAY Many women are usually silent partners, included just to get the benefit.

A relief of just 0.25 to 1% in interest Sceptical whether women will be able to rate is not worth the trouble market their products and services.

The process is too time consuming and Not many women come seeking loans requires far too many visits to the for their start-ups. branch

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Often do not get what is promised

Have

special

cells

for

helping

entrepreneurs, especially women.

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OBJECTIVES OF THE STUDY

1. To identify the challenges and issues faced by women entrepreneurs with special reference to financial assistance. 2. To find the awareness of the various schemes for financial aids provided by banks. 3. To understand the attitude of banks towards women entrepreneurs in need of financial aids.

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RESEARCH METHODOLOGY
Sources of Data:
Secondary data sources such as books, magazines, journals and websites were referred to arrive at an in depth understanding of various issues and challenges faced by women entrepreneurs. Primary data sources included a survey which was conducted in AGRA region. A questionnaire was designed to understand the level of awareness and the nature of difficulties faced by women entrepreneurs. The questionnaire included 16 items which were a mix of open ended as well as closed ended questions. Aspects covered in the questionnaire included: Financial Source, Sufficient financial assistance, Constraint faced, Expansion plans, Role of banks. Sample was taken from AGRA, sample design consist of women entrepreneurs Sample size taken was 25 women entrepreneurs. This study was part of non-probability sampling called as purposive sampling or judgmental sampling

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RESULTS & DISCUSSION

The objective of this paper was to identify the challenges and issues faced by women entrepreneurs with special reference to financial assistance, to find the awareness of the various schemes for financial aids provided by banks and to understand the attitude of banks towards women entrepreneurs in need of financial aids. The questionnaire was designed to collect data from respondents with regard to their fund avenues for their business, savings and consumption patterns both before and after they had venture into entrepreneurship. After the data was collected, based on the percentages, values were calculated for each of the components and then recorded. This questionnaire majorly focuses on start-up and expansion finance for the business and difficulties faced during this process/phase.

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DATA ANALYSIS & INTERPRETATION

Figure: 1 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Experience Hobby mean of survival venture others

The survey found that one of the main reasons for women to start their business that they have experience in the relevant field (40%), the second top reason is venture new field of opportunity as the earlier one could be saturated or new one venture has more chance of growing. 3rd important factor on the list was hobby, these women converted their hobby their passion into business which is fair enough as they do have liking and also have created. (Refer figure: 1) Similar research was carried out by Australian Business women network. Suzy Dafnis who heads the group also mentions that he has noticed many womens who leave the corporate world, and start their own business for the reasons which includes: freedom to choose work hours and work location, working around raising
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children, being your own boss, setting your own salary, utilising your creativity to create something new, and of course - financial freedom.

Figure: 2

No Obstacles lack of information Management skills Others

self confidence Family support family and work life 2% 15% 2% 10% 0% 5% 5% 10%

start up finance Finding The right contact Gender Discrimination

39% 12%

As per the data collected, 10 critical factors evaluated and identified as challenges faced by women entrepreneurs were listed in questionnaire, those factors are selfconfidence; start up finance, lack of information, family support, finding the right contact, management skills, family and work life, and gender discrimination and last but not least others.

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Major factor creating problem for women was start-up finance which is 39 % followed by lack of management skills and lack of information as 12% and 10 % respectively it was amazing to note that family and work life balance was rated as second least problem i.e. 2% this shows that women dont identify family and work life balance as challenge. (Refer figure: 2)

Figure: 3

36%

yes

No

64%

This question was created to know the awareness of the women regarding bank facility provided to women entrepreneurs. As the respondents are from different field and different segment of the society, hence qualification, experience, and environment vary for these entrepreneurs. There are women who are aware about bank providing loan for women, awareness rate is 64%, thus can could that interest
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of respondent toward financial aid for their business is growing, they have become more enthusiastic to venture new source, they have become conscious about various schemes which they can opt for, interest rate that banks provides and compare rate provided by different banks. 36% women are not aware about bank providing loan for women entrepreneurs, these women are not much educated and they actually do not fall in the category of customers who can use facility provided by banks. (Refer figure: 3)

Figure: 4

yes 28%

No 72%

Even though women are aware about bank providing loan for women but they do not approach banks in fact they are not aware about the loan schemes, only 28 % women are aware about the scheme, this is not appreciating figure were only 28 %
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of female are aware about the scheme and this female are the one who are actually borrowing loan from banks hence they are aware about the schemes and rest 72% are not aware whether bank has what kind of schemes, and how can be these schemes prove beneficial for development of women owned business. (Refer figure: 4)
Figure: 5

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Not aware about the schemes

Not eligible for Huge Fund not Had enough bank loan required funds

Others

According to survey; there are five major reason that discourages women to approach bank for their business, these factors are (a) Not aware about the

scheme, (b) Not eligible for bank loan (c) Huge fund not required (d) had enough fund for business (e) others. Majority of the women were not aware about the schemes (45%) while discussing about awareness of the scheme they mention that they have not heard of about theses scheme, it can be concluded that banks are not
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doing advertisement of this schemes on high scale. Other reasons were that huge fund was not required (8%); women who opted for this option were generally occupying the small size business which does not call for huge funding. Next category were the women who had enough funds to finance their business(8%), these are the women from upper class of the society, or the female who were working initially and were ready with their saving to invest in their business. Women who are in category of others (8%) are either not in the favour of taking the loan from bank, or they are not comfortable with bank procedures. (Refer figure: 5) Data shows that among the various schemes available in the market the scheme which on top of mind of these women were scheme from canara bank, Bank of India, Bank of Baroda and Dena bank Scheme from Canara bank i.e. Can Mahila scheme is one of the favourite scheme of these women entrepreneurs. 6 out of 11 female opt for or are aware of Can Mahila scheme Schemes from Bank of India, Bank of Baroda and Dena bank are also well known.

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This may be due the high customer data base that these banks have has promoted themself well in the market, or that they have good customer service or either they have promoted their scheme through advertisements and promotional activities.

Figure: 6

No 25%

yes 75%

Data shows that 1/3 of the sample size have taken loan for their business, this is either start- up finance or loan for expansion which will help these women to do the business. To Start any business there is requirement of huge finance, sourcing of this huge finance is little difficult but not impossible. Hence maximum respondent (75%) opt for loan, this loan can be then from any sources either from moneylender, relative or bank. Where else (25%) female do not take loan for their

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business, they may have enough fund for their business or either they do not have that huge requirement of the fund. (Refer figure: 6)

Figure: 7

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Relative Bank Moneylender Others

Data shows that people those who are taking loan, maximum of them approach banks for their loan i.e. 40% other than banks next second highest number goes to relatives and then moneylenders and then others.

Research done by Myers, Jennifer, revels that 75% of women take the loan depending on the bases of their relationship with source, and our study shows that

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these women have major source from bank that is 40%, we can conclude that bonding between customer and bank is developed well. Next major category is relatives (24%), as the loan obtained from relative are generally unsecured loan and without any process let it be the formality of documentation, providing collateral or disbursement of loan. Next majority goes to Moneylender and others securing 4% each. Women of low income group take loan from moneylender, as they do have to keep some kind of collateral for this finance. (Refer figure: 7)
Figure: 8

30% 25% 20% 15% 10% 5% 0% poor Service Interest rates Time consuming process Bank not cooperating other

If we analysis the data carefully its states that 40 %of female take loan from bank, around 32% of women entrepreneurs take loan from other sources, in addition to this womens those who dont take loan are 25%. 57% of women dont take loan from bank reason for same are as follows (a) Poor service provided by bank (b)
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Interest rate (c) Time consuming process (documentation).(d) Bank not cooperating in the process. (e) Others. 24% Respondent say that process of getting loan is time consuming; this will delay the whole plan, and if process is not timely executed if will be redundant. Apart from this high interest rate was rated second most important reason for respondents to not opt for bank loan, respondents say difference in the interest rate is hardly 0.5% - 1.5 % which does not attract womens towards bank loan. Poor service of bank was third major reason poor service includes service provided by bank in normal terms, like account facility, transfer of cash or cheque.(Refer figure: 8)

Figure: 9 60% 50% 40% 30% 20% 10%

0%
canara bank Dena bank Punjab & sind bank Bank of india

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According to the data available female prefer to take loan from Dena bank (48%) and the second preferred bank for the loan is Canara bank scheme called as can mahila (12%), still is far away from Dena bank difference is of 36% . similarly Punjab national bank and Bank of India stand 3rd and 4th respectively. Reason for Dena bank to be favourite one was mentioned the time duration taken by the bank to give the loan is less and process is also very customer or we can say women friendly.(Refer figure: 9)

Period for loan: The maximum amount of loan sanctioned varies from bank to bank, maximum tenure provided by bank is generally 5 years. Bank can divided this loan inot three major category i.e. Short term, intermediate and long term loan.

Type of loans
Short term

Intermediate loan

Long term
Figure: 10
Survey says that 75% of respondent take loan 40 % from bank and rest from the other sources i.e. relative, money lenders and others. These 75% respondent take loan to

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accomplish their goal, attain their vision. When there is requirement for start up finance they opt for long term loan as it used for establishing the business, to increase the fixed assets, for related business acquisitions and expansion taken for the long term. While many respondent also opt for short term and intermediate loan so that they can use it for short term working capital or to build inventory, buy equipment or increase working capital.(Refer Figure :10)

Figure: 11

60% 50% 40% 30% 20% 10% 0%

Once

Twice

Thrice

More than Thrice

Data reveals maximum women take loan once percent is quite high i.e. 56%, normally huge fund is required at time of starting up the business where every cost is to be evaluated and maintained, ones business has started den only maintain cost is liable, other cost like raw material, process cost, labour charges, logistics, etc.

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This cost can be later analysed and worked out. Hence, loan during start-up period is common. Where else loan taken twice or thrice are hardly 8% and 6% respectively, generally to acquire new project, or to maintain the old business. (Refer Figure No: 11)

Figure: 12

Can't say 4%

Yes 16%

No 80%

Only 16% of female are aware about microfinance, percentage for aware about microfinance is very less in AGRA, where else 80 % of them are not aware about the concept of microfinance. 4 % fall in category of cant say where they have

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heard of microfinance but are not aware about its concept cant say is more or less equal to not aware.

Microfinance is the provision of financial services to the poor, who are excluded from formal financial systems, in a sustainable manner. It utilizes credit, savings and remittances and other financial products, such as micro-insurance, to help families take advantage of income-generating activities and better cope with risk.

Women particularly benefit as many microfinance institutions, or MFIs, target female clients. Few microfinance companies, which people have identified are SKS (SANJAY PALACE) , Intellecap (SADAR), Hindustan Micro finance

(KAMLA NAGAR ), were named by the women who were aware about microfinance companies.

Suggestion provided by respondent for the financial institutes where as follows, Institute should opt for ease documentation process: As numerous document are required for disbursement of loan and its almost impossible to get all the document at once some facility should be provided like initial and important document to be submitted and rest could be taken care latter. Time taken for disbursement should be less: in short less time consuming process should be
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introduced as the document takes time to be processed and then procedure is long and you have to wait for disbursement of loan. Interest rates should be reduced: concession or discount in the loan should be given for womens, so that women could be encouraged for entrepreneurship. Re-payment of the loan should be flexible: as the finance is not consistent in business 1 st year you had good profit so you want to repay the loan and your loan scheme is not flexible enough for the same. Counsellor should be appointed: so that process could be explained well to, more promotion should be done: many times scheme are not know to these women which is also loss of opportunity.

Turnover of women owned organization is huge range of annual income falls from 1, 20,000 onwards to15, 00,000. Many respondents who have recently started their business like Mrs. Bina sha owner of toy library are satisfied as they can meet BEP and sustain their business. Entrepreneurs like Anchal gupta owner of Art in motion academy have turnover of approximately 15, 00,000. Where else film producer Guneet Mogas turnover runs into crores. Take Jessica Jacobs, a former clothing designer who founded Calgary-based Little Soles Inc. in 2005. Like many entrepreneurial moms, Jacobs started her business when her kids were under five. She discovered a niche in the marketplace: making shoes with non-toxic materials for infants and toddlers who are known to suck on
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their toes. Despite a setback about two years ago when a container holding her entire fall line of shoes fell into the ocean and sunk, Little Soles is doing well these days with annual revenues of about $3 million.

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KEY FINDINGS
1. The study brought to light various constrains that women entrepreneurs faced to start the business. These problems are generally related to finance. When evaluated these constrains were regarding managing of business, socio-cultural barriers, awareness about financial assistance, Identifying the available resources for the business, identifying the market segmentation. 2. Financial institute can aid entrepreneurship among women: this was identified from study that problem of funding can be solved by financial institutes, just by updating their schemes and policies and making it more women friendly. 3. This research also gives information about various financial schemes that is available in the market, these schemes have different interest rate and different types of perk, and it has also being noticed even though these banks have schemes for women entrepreneurs but they are very much sceptical to provide loan, because of various reasons are mentioned earlier. 4. Attitude of women towards their business; they are very much determinant, passionate and enthusiastic about their business, as this business is either

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means of livelihood or their passion. Whatever is the hurdle they try their level best to overcome it and achieve their goal. 5. Attitude of bank toward women entrepreneurs: bankers find it risky to provide women entrepreneur loan as they feel that women are not good at marketing their product/ business. And that will lead to loss in business, as well as will not be able to pay the instalments and ultimately lead to default in the payment of the loan.

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RECOMMENDATIONS
Various studies and researches conducted on women entrepreneurs reveal that, a woman entrepreneur will typically not think that since more people are doing a particular business and earning significant profits out of it they should enter the arena. Profit and size seems to be of less importance and satisfaction of doing it is of more importance to them. This is good in a way because this helps them to learn the basics well before they take bigger risks and invest high. Hence I would like to recommend few things to both women entrepreneurs and to the financial institutions. Women entrepreneurs should incorporate some changes in their system of doing business, which will help them to grow their business, make more profit, to add on to their bank balance. 1. Research the various schemes available: Before approaching a bank, one should be aware of the various schemes that banks offer. This helps in being more practical and knowing which schemes you are eligible for. You should be very well equipped with the various schemes. It prepares you to go to an official and demand to be funded under a scheme and benefit from it.

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2. Try to market your product first: One of the major difficulties a woman faces is marketing. Even banks are very sceptical about this while extending loans. Before starting up, I would ideally advice women to first test their product in the local market. They can invest some money from their pockets and get a small amount of their product manufactured by a local manufacturer. They can then try selling their product in the market. This helps in not only understanding the business better, but also when approaching the bank. 3. Be thoroughly aware of your business plan: Creating a business plan is of utmost importance. Many a times what happens is that they sit with consultants to make the project report. In that case, it is very important to know the details of financial documents very well such as what is your debt equity ratio, when will be your break even etc. Sometimes, what happens is that they go too early to the bank and when the banks ask questions they get scared. Then, the banks might as well say, why should I give you loan when you even havent thought of this. 4. Read loan documents carefully: You might have heard this statement many times, but ignored it. When going for a loan, it is extremely important to sit with the banker and understand all clauses and calculations. One has to think through all scenarios before getting into a loan agreement. People often only look at the interest rate number, but there can be many hidden things. One
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might have taken a loan for, say, three years, but if your business does well and you want to pay the loan back, then there might be a pre-payment penalty that you may not have been aware of. Another thing is that often the interest rate is calculated at the end of the month, but if you have paid the loan on say the 5th of the month, then ideally the interest should be calculated for 25 days and not for 31 days. 5. Join a womens network: This helps in keeping in touch with other women entrepreneurs who are already in the field. This also aids in learning from the experience of other women. Another added advantage is that at times it helps in networking with bank officials. There are a number of such organizations such as AWAKE [Association of Women Entrepreneurs of Karnataka], eMERG [Engineering Manufacturer Entrepreneurs Resource Group] and FIWE [Federation of Indian Women Entrepreneurs]. 6. Financial Institute must bring changes to their process and policies like, making the loan procedure easy for women, documentation process should be ease or manage able, interest rate must be low so that they can promote more women entrepreneurs, replayment of loan must be flexible.

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CONCLUSION
This is the time to look back with pride, when India has been attracting global attention not only for its fastest economic growth and rising consumerism but also for its entrepreneurial capabilities. Today we see a good number of business enterprises and as women are contributing to the figures, there is need to motivate and encourage these women. Financial assistance provided to these women entrepreneur will act as motivating factor, and will help them to grow their business, increase their standard of leaving, provides wings to their dreams. The research conducted helps to evaluate the challenges faced to gain this financial assistance by various financial institutes through different schemes launched in the name of women, stating that these schemes are designed for development of women. Indian women have to go a long way to achieve equal rights and position because traditions are deep rooted in Indian society

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BIBLIOGRAPHY
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Peri H. Pakroo J.D. (2010), The Women's Small Business Start-Up Kit: A Stepby-Step Legal Guide . Naomi Simson, (2009), Six reasons women start business. (2001, May 21),Women entrepreneurs in poorest countries face formidable challenges, Brussels forum. http://www.un.org/News/Press/docs/2001 Prof. Dileep kumar M,(2006),Problem of women entrepreneurs in India. http://www.indianmba.com. Medha Dubhashi Vinze (1987), Women Entrepreneurs In India: A Socio Economic Study of Delhi - 1975-76, Mittal Publications, New Delhi. Dr. Nirmala Prasad: The Power of being Different Written by Valsala Menon

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