Impact of Women Entrepreneurship Development on Families: a Study of Women Run Micro-Enterprises in Selected Districts of Maharashtra
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Impact of Women Entrepreneurship Development on Families: A Study of Women run micro-enterprises in Selected districts of Maharashtra. Thesis Submitted to the Padmashree Dr. D. Y. Patil University, Department of Business Management in partial fulfillment of the requirements for the award of the Degree of DOCTOR OF PHILOSOPHY In BUSINESS MANAGEMENT Submitted by MS. RASHMI GOPINATHAN (Enrollment No. DYP-PHD 066100016) Research Guide Dr. R. GOPAL DIRECTOR DEAN & HEAD OF DEPARTMENT PADMASHREE DR. D.Y. PATIL UNIVERSITY, DEPARTMENT OF BUSINESS MANAGEMENT, Sector 4, Plot No. 10, CBD Belapur, Navi Mumbai – 400 614 June 2010 IMPACT OF WOMEN ENTREPRENEURSHIP DEVELOPMENT ON FAMILIES : A STUDY OF WOMEN RUN MICRO ENTERPRISES IN SELECTED DISTRICTS OF MAHARASHTRA DECLARATION I hereby declare that the thesis entitled “Impact of Women Entrepreneurship Development on Families: A Study of Women run micro enterprises in selected Districts of Maharashtra” submitted for the Award of Doctor of Philosophy in Business Management at the Padmashree Dr. D.Y. Patil University Department of Business Management is my original work and the thesis has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles. Place: Navi Mumbai. Date: Signature of the Guide Signature of the Signature of the student Head of the dept. CERTIFICATE This is to certify that the thesis entitled “Impact of Women Entrepreneurship Development on Families: A Study of Women run micro enterprises in selected Districts of Maharashtra” and submitted by Ms. Rashmi Gopinathan is a bonafide research work for the award of the Doctor of Philosophy in Business Management at the Padmashree Dr. D. Y. Patil University Department of Business Management in partial fulfillment of the requirements for the award of the Degree of Doctor of Philosophy in Business Management and that the thesis has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title of any University or Institution. Also certified that the thesis represents an independent work on the part of the candidate. Place: Date: Signature of the Head of the Department Signature of the Guide ACKNOWLEDGEMENT I am greatly indebted to the Padmashree Dr. D.Y. Patil University, Department of Business Management which has accepted me for the Doctoral Program and provided me with an excellent opportunity to carry out the present research work. I am grateful to my guide, mentor, philosopher Dr. R.Gopal for having guided me throughout the research span of time and for providing his constructive criticism which made me bring my best. I would also like to thank sir for being there at any point of time without considering his own precious personal time. I would also like to thank Mr. Mahendra Gamre Sir, Training Head MAVIM and also all the District Heads of MAVIM. Special thanks to Dr. Veena Punecha, Research Head (SNDT University) having discussed and guided me with the topic. Prof. Kumar (IIM – Bangalore), Mrs. Kusum Balsaraf, Deputy M.D.- MAVIM for having supported me throughout the study. I would be failing in my duty if I did not thank the grass root level workers for helping me throughout the field work. I sincerely thank my father for providing me the necessary motivation for completing this dream project. I also wish to place on record my sincere thanks to my revered deity and my late mother who have provided me with the strength and ability to carry this research out of the best of my ability. Lastly I also wish to thank all my near and dear ones who have been directly and indirectly instrumental in the completion of my dissertation. Place: Date: Signature of the student CONTENTS CHAPTER TITLE PAGE NO. NO. List of Tables List of Figures List of Abbreviations EXECUTIVE SUMMARY 1. Introduction – Development of Entrepreneurship 1 – A conceptual and Theoretical Interpretation 1.1. The Entrepreneur: Origin of the Concept. 1 1.2. Concepts of Entrepreneurship. 2 1.3. Historical Development of Entrepreneurship in 5 India. 1.4. The Colonial Era 6 1.4.1. Post Colonial/ Modern Era 7 1.4.2. New Classical Economic Theories. 10 1.4.3. Psychological Theories. 12 1.4.4. Sociological Theories 18 1.4.5. Contemporary Theories 20 2. Literature Review 21 2.1. Western Research on Entrepreneurship 21 2.2. Indian Research on Entrepreneurship. 33 2.3. Studies on Women Entrepreneurship in Indian 37 Context. 2.4. Studies on Entrepreneurship from Low Income 46 Group. 3. Statement of the Problem 51 3.1. Objectives of the Study 51 3.2. Hypothesis 52 4. Research Methodology 53 4.1. Understanding the issue 53 4.2. Pre-Study 53 4.3. Primary and Secondary Data 54 4.4. Instrument for Survey. 54 4.5. Selection of Samples. 55 4.6. Pre Testing Phase 57 4.7 Tabulation and Statistical Analysis of Data. 58 4.8. Interpretation and Report Writing. 58 4.9. Limitations of Study. 58 5. Development of Women Entrepreneurship. 59 5.1. The Existing Scenario 59 5.2. Entrepreneurship Among Poor Women. 62 5.3. Women and Micro Enterprises. 62 5.4. Profiles and Typology of Women Entrepreneurs. 65 5.5. Entrepreneurs in Large and Medium Sectors. 66 5.6. Entrepreneurs in Small Sectors. 67 5.7. Micro Entrepreneurs. 67 5.8. Small Scale Entrepreneurs. 67 5.9. Role of Government/ Non Government 68 Organizations in Development of Women Entrepreneurship. 6. Microfinance and Micro Enterprises 70 6.1. Microfinance Globally (Europe & Asia). 71 6.2.1. Microfinance in Europe. 72 6.2.2. The Case of Ireland. 72 6.2.3. The case of Germany. 73 6.2.4. Microfinance Lessons Learned from Europe. 75 6.3. Microfinance in India. 76 6.3.1. Origin and Early Development. 76 6.3.2. Medieval India. 79 6.3.3. British India. 80 6.3.4. Independent India. 81 6.4. Linking Formal and Non Formal Finance: A 85 Financial Innovation. 6.4.1. MFI and their approaches. 90 6.5. Micro enterprise. 94 6.5.1. Micro enterprise Development. 95 6.5.2. Micro enterprise and Economic Self Sufficiency. 101 6.5.3. Micro Enterprise and Women. 102 7. Role of Government and Non Government 106 Organization for Entrepreneurship Development in Maharashtra. 7.1. Maharashtra Centre for Entrepreneurship 106 Development. 7.2. Annapurna Mahila Mandal. 108 7.3. Bhartiya Yuva Shakti Trust. 110 7.4. National Small Industries Corporation Ltd. 112 7.5. Small Industries Development Corporation. 115 7.6. Central Social Welfare Board. 117 7.7. State Bank of India. 122 7.8. District Industries Centres 123 7.9. Mahila Aartik Vikas Maha Mandal. 126 8. Data Interpretations and Findings 137 8.1. Data Interpretation 137 8.2. Summarisation of Findings. 183 9. Conclusion 192 10. Suggestions and Recommendation 196 Reference Section. 201 Annex. I - Bibliography . Annex. II – Questionnaire. Annex. III- List of Activities Annex. IV – Statistical Tables of SPSS Findings Annex. V– Region and District Profile LIST OF TABLES List of Tables Page No. 4.2. Detail of Sample Size 57 5.1. Average Annual Growth of Enterprises 61 under Women. 6.1. Microfinance Services. 93 6.2. Sectoral Classification of Micro- 98 enterprises. 8.1.1. Age 137 8.1.2. Educational Level 138 8.1.3. Religion 139 8.1.4. Marital Profile 139 8.1.5. Family Type 140 8.1.6 (a) Monthly Income – Before 140 8.1.6 (b) Monthly Income – After 141 8.1.7 (a) Choice of Entrepreneurial Activity 141 8.1.7 (b) Relation between Entrepreneurial Activity 143 and Age. List of Tables Page No. 8.1.7 (c) Relation between family type and type of 144 entrepreneurial activity. 8.1.7 (d) Relation between Entrepreneurial Activity 145 and Income. 8.1.8. Years of Experience in existing business. 146 8.1.9. Motives for venturing into 146 entrepreneurship. 8.1.10. Interdependence of women entrepreneurs Annex. IV 247 and families. 8.2.1 (a) Occupation 149 8.2.1 (b) Impact of Entrepreneurship on Income 150 8.2.1 (c) Change in the Monthly Income of 151 Respondents. 8.2.2. Type of decision maker and decision on 153 spending. 8.2.3. Impact of entrepreneurship development 154 on Asset Formation. 8.2.4. Debt Status 155 8.2.5.1 Control over earnings. 156 List of Tables Page No. 8.3. Impact of women entrepreneurship on 249-Annex.IV standard of living. 8.4. (a) Key Drivers, Mean and Std. Deviation. 254-Annex.IV 8.4. (b) Correlation matrix. 255-Annex.IV 8.4. (c) Communalities. 255-Annex.IV 8.4. (d) Total Variance. 256-Annex.IV 8.4 (e) Rotated Component Matrix. 257-Annex.IV 8.4. (f) Component Transformation Matrix. 258-Annex.IV 8.4. (g) Covariance Matrix 259-Annex.IV 8.4. (B) Logit Model 260-Annex.IV 8.5.1. Entrepreneurial Characteristics. 165 8.5.1 (a) Independence 166 8.5.2 Leadership 167 8.5.3. Decision Making 168 8.5.4. Risk Taking Ability 169 8.5.5. Future Planning 170 8.5.6 (a) Initiative of Borrowing Finance. 171 8.5.6 (b) Experience of Borrowing Finance. 172 List of Tables Page No. 8.5.6 (c) Purchase of Raw Materials 173 8.5.6 (d) Marketing Initiative 174 8.5.7 (a) Support from Family 175 8.5.7 (b) Support from Community 175 8.5.8.1 Demographic Factors 177 8.5.8.2 Type of Venture 178 8.5.8.3 Type of Traits 178 8.5.8.4 Internal Inputs 179 8.5.8.5. External Inputs 179 LIST OF FIGURES List of Figures Page No.