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Out of Shell: Charming Avenue or Economic Compulsion? A Strategic Review on Women Entrepreneurship in Orissa
1st Author: Designation: Discipline: Affiliation: Dr. ARUNA KUMAR PANDA ICSSR-Post Doctoral Fellow Business Administration (Finance & Strategy) Department of IR & PM, Berhampur University, Bhanja Bihar, Berhampur 760007, Orissa (India) Mobile: (+91)9861378795 E-Mail: arupanda@ymail.com CC: arupanda@gmail.com

2nd Author: Designation: Discipline: Affiliation:

Ms. GAYATRI MANISA PANDA Ph.D. Research Scholar, Human Resource Management (HRM), Department of IR & PM, Berhampur University, Bhanja Bihar, Berhampur 760007, Orissa (India) E-Mail: gayatrimanisa@gmail.com

To Cite this Document


Panda, Aruna Kumar & Panda, Gayatri Manisa (2013). Out of Shell: Charming

Avenue or Economic Compulsion? A Strategic Review on Women Entrepreneurship in Orissa. International Research Journal for Social Science and Corporate Excellence (IRJSSCE), Volume 1, Issue 2; pp. 13-23.

Out of Shell: Charming Avenue or Economics Compulsion? A Strategic Review on Women Entrepreneurship in Orissa
Summary: [The present paper attempts to analyze the concept of women entrepreneurship as an
integral part of women empowerment in Orissa since the early Nineties and the changing role of women in the entrepreneurial world from the traditional sectors of handicraft and cottage industries to the hi-tech male dominated non-traditional sectors of engineering, chemical, electronics, energy, etc., during the current era. It carries out an in-depth discussion about the present status-quo of women entrepreneurs in Orissa and categories them into four parts. It observed that for the upper class category of women, being into entrepreneurship is a way to utilize their time & money skillfully & productively with a motive to reach the pinnacle of success keeping in toes with their celebrity status for necessary social recognition and psychological satisfaction; whereas, an upper middle class just follow these Role Models. The paper observes and identifies them to be the women entrepreneurs in focus rather than the real contributors to the economy and house holds, the middle class and lower middle class categories of women entrepreneurs, for whom entrepreneurship is in fact a commitment to provide supplements to their family income. It is not a bed of roses for them keeping in view of their dual role at home & office in one hand and the social threats due to gender biasness & financial constraints on the other hand. The paper found them to be the most needful category to support, and discussed at a length about several schemes of the State Govt, SIDBI, District Industrial Centers, Voluntary Organizations and NGOs that aims to aware and motivates the grass-root women groups of rural and semi urban segment of the state for self employment and economic independence. The end findings of this paper accept the reality women are the home makers and office managers thereby rejecting the myth women are the home makers only, and makes a statement to the masculine of the society to change their protective psychology and repose best confidence measures in the ability of their counterparts who are equally skilled at work and mature in strategic decision making. ]

Key Words: [Women Entrepreneurship, Women Empowerment, Categorization of Women


Entrepreneurs, Social Threat, Social & Economic Independence, Family conflict, Role Model, Gender Biasness, Economic Compulsion]

Introduction:
The concept of women entrepreneurship (women owned, women dominated enterprises having a large financial interest in support with a view to generate employment for the majority of their gender) gathered its momentum in India during the late Seventies and Orissa being no exception to it. However, this auspicious sign was not a newer concept in the scenario of the State. Even before the pace of Seventies, the prevalence of women-entrepreneurship was legible in the traditional sectors of the State altogether in the urban, semi-urban & rural sectors. The handicraft & cottage industries of the State including apiculture, sericulture, floriculture, mushroom cultivation, broom stick production, coir industry, diary firms, etc. were earmarked with greater women dominance even before the independence. However, the issue has become more prominent worldwide with the invention of technology-driven liberalization, privatization and globalization (LPG) era when more and more women have shifted from the traditional to non-traditional male dominated sectors like electronics, chemical, energy, engineering, management etc. Today, the soft skinners are doing really hard to crack the nut and are equally committed to deliver a cut-throat competition to their male counterpart. Then, in a State like Orissa, where the concept of emerging job opportunities from Governmental sectors has almost buried in oblivion to a greater extent, it is obviously the economic compulsion that has forced the women, like their counter part, to come out of home and engage themselves either in a private job for a salary or wage, or to start their own ventures either singly or in a cluster. May it be the urge for utilization of the spare time productively for a category of educated elite upper-class soft toners, but for the rest, the main motivation has been to supplement the family income. Perhaps, this is a socio-economic emancipation of women with their emerging model of empowerment. For a State, where there is no guarantee for employment, where more than 80 percent of the educated youth are unemployed, this emerging concept of women entrepreneurship does make a sense which should be taken as an opportunity rather than a gender-based threat. Though Orissa is full of natural & human resources it has been categorized as a poor State since long due to lack of infrastructure facilities & callous political attitude for industrialization. However, this scenario has been changing gradually with the wide spread consensus of education. Women are getting more & more into the non-traditional sectors, acquainting themselves with technical skill & professional expertise like the masculine. After all, for an economic upliftment, maximum utilization of different factors of production is the essence of an entrepreneurship venture and that has been a great learning experience for them. A social and

4 economic independence thereby gaining control on self & over the resources with a freedom for decision making is undoubtedly the new mantra for the todays women entrepreneurs. Being more than 50 percent of the State population with an equal maturity & strong mind set, an active participation of women in development process of the State should be accompanied with a red carpet welcome.

Categorization of Women Entrepreneurs: An Analysis


While pondering over the present status-quo of the woman entrepreneur in Orissa, it is indeed essential to have a careful watch over the changing scenario of growing industrialization & urbanization of the State. Then, the concept of women entrepreneurship by itself also not free from segmentation which can be explained as below1. A rich upper-class women category [the mammoth/macro women entrepreneurs] with

adequate education & professional adeptness, with or without an inherited entrepreneurial skill, who are heading the top industrial units of self or others. 2. An upper-middle class category of women [medium entrepreneurs] with adequate

skill & expertise but lacking the face value like the upper class, and operating middle sized enterprises. 3. A typical middle-class women segment [small entrepreneurs], who are educated but

lacking necessary exposure and aspiring for a formal professional training, who are operating handicraft & cottage industries with a hope of future prosperity. 4. A confident but lower-class category of women [essentially very small & micro

entrepreneurs] who are more to say illiterate & poor but with entrepreneurial skill as parental inheritance. They are either engaged in family run businesses or are the self- starters. A class just above the labour category but with paramount courage & effort to encash all local opportunities. With the wide spread consensus of professional education and mega entrance of women in technical fields, and therefore, having the option of an entrepreneurial career, it is nothing but natural for the society to understand them & recognize their capabilities in economic development and national building.

5 This sounds some what technically good. But is it possible for a woman entrepreneur to flourish in an orthodox & conservative society like ours? And if yes, then up to what extent? What are the substitutes of issues relating to their self-confidence, gender biasness, lack of information & exposure in entrepreneurship and absence of role models in a State like ours? Then, we need to have a serious thought regarding the extent to which these draw backs are applicable to all categories of women entrepreneurs cited earlier. Do the tier-I & tier-II category suffer from these constraints? Lets have an analysis about each category to elicit more fact and understand them in a better way. 1. Hi-tech Upper Class, Macro Women Entrepreneurs: It is a fact that what have

been considered as the basic drawbacks of average women entrepreneur are not at all applicable to this category. Here comes the class of women who are professionally very skilled; technically and financially also very sound. They know how to make a deal. They are well aware of the latest trend in both domestic & international market. They have sound business plans of international standard. They make better strategies and also know how to make the best utilization of the key factors to maximize the profit, and finally, come out with a flying colour at the end of each venture. Their projects are technically and financially viable; economically feasible. They possess top managerial skill and superior command over the key financial resources, personnel resources (number & quality of people), system resources (management information system, planning & control) and business resources (customer care, technical-know-how, production and distribution processes, etc.). They understand better about their work verticals and make a good homework before lunching any project. Here the future goal is almost very certain and feasible. Risk is negligible. We do not see them weak either in their strategic, managerial or operational abilities. But still they are not free from constraints. Lets talk about the concept of family conflict that prevails in most of the high-profile, celebrity business families holding the flagships of apex businesses in the society. The reasons may be the mismatch of the mind set between the family members, egoism for his-goals & her-goals or the requirement of an independence for personspecific decision making. The second issue is about their role and contribution to the society. Being the Role Models and Celebrities, their physical presence is generally highly solicited by different communities of the society. They are the key personnel of several clubs & social organizations. They are actively engaged in many social upliftment projects, in addition to their family

6 commitments. They play multiple roles in society. The inherent motive is nothing but to get equal social status and recognition to that of their male counter part. It is obvious that the one sustains in the market who knows how to keep a balance in demanding situations like this. Thirdly, at top level one faces fierce competition as every thing is needed to be perfect and of international standard. Then, they are equally emotional and envious of their competitors, especially who belong to the same gender. With an adequate risk bearing capacity the growth, expansion, merger and acquisition of the business have always been the mantras for them. Every tune of the business should be legal, if not ethical. 2. Aspiring Upper-Middle Class Women, leading Medium Enterprises: They are

the kind who always want to be like their role models, the upper class. They have also got all that efficiency, expertise, economic independence and social reorganization to favour them but things are confined to a limit as compared to the mammoth women entrepreneurs. They patron businesses of State and national reputation. However, they face intense competition in market to keep themselves hi-tech with a leading edge through continuous innovation and adoption of new technology. No doubt, they need some financial and ultra-modern technical assistance to invest on productivity, efficiency enhancing technologies and equipments that would help them to sustain and prosper in the market. To a greater extent, it is clear that they have a good rapport with the upper-zone of women entrepreneurs and both do not intersect each others territory of business; Just a silent compromise with the role models. 3. Middle Class Women, leading Small Enterprises: Here comes the typical middle

class women, who have been identified as the under-privileged category of the orthodox society, a category who are still facing hardship to be socially recognized as successful business leaders. Iron chains are around their feet in the name of culture and etiquette. Their achievements are highly solicited at home rather than in the field of entrepreneurship just because they are women who born to be good wives, mothers & daughters. Till date, they are recognized as soft-skinners, softtoners, cute, charming and wonderful architecture of god who will listen and obey in families. They are still the first choice of society in the traditional fields of handicraft and cottage industries of Orissa. Then it is also a fact that these educated women, leading small enterprises, often lack professional skill and expertise to run a well-planned business that makes them suffer from an initial lack of confidence while starting up of an enterprise. They also face the hardship of limited mobility due to their dual-commitment at office and home which often synchronizes their work

7 timing with family schedule. In addition, they suffer with problems like arranging adequate initial project capital, poor location of units, inadequate transport facilities, high cost of technical equipments and projects , problems in obtaining finance (both long-term finance for investing on fixed assets like land & building, plant and machinery, furniture and fixtures, etc., and short-term finance or working capital for day-to-day operations of businesses] due to lack of co-lateral securities and immovable properties in their name to deposit with banks or financial institutions and raise loans or even to raise finance from the open market. Their heavy work schedule & restlessness often results severe physical problems like sleeplessness, high blood pressure, headache, backache, fatigue and severe hyper tension. To add fuel to fire, the most embarrassing situation is that their entrepreneurial success largely depends to the extent of which they are able to muster family support. As most of their contribution goes into the home and informal sectors of business, it does not come under the preview of statistics when we tend to quantify the extent of participation of women in entrepreneurship. As per the annual Census of 1991, women accounted for 28.6 percent of the total work force which enhanced up to 31.34 percent during 2001. Study says a mere 8.15 percent of women out of 31.34 percent are involved in Organized Sectors where as the rest 91.85 percent are engaged in unorganized sectors. However, when it comes to contribute to GDP of the country, the non-agricultural sectors contributes almost 98.3 percent of the total GDP (8.4 percent). The status of our rural State (having 85 percent of its total area as rural area) is even worst with its low literacy rate of 63 percent and massive population of 47 percent below the poverty line (all India BPL population average being 26 percent till date) which is still amazingly having agriculture as its predominant profession till date. Research reveals that during 1990-91 to 2001-02, the total number of Small Scale Units (SSIs) set up in Orissa were estimated to be 34,280 out of which units set up by women were calculated to be merely 2341, even less than seven percent of the total units. No doubt, since 200001, the growth of small scale sectors and cottage industry in Orissa altogether has been at its peak. During the year 2005-06, there were almost 87,883 small scale units operating in Orissa generating employment for more than 5,36,000 persons; whereas, in case of the cottage industry, the established units touched the number of 16,37,989 generating employment for around 28,41,895 people. However, in case of women as entrepreneurs, the ratio is not much encouraging with an average estimation of a bit more than 11 percent in comparison to their male counterpart. These figures clearly depict the miserable status of women, leading small enterprises in Orissa, and the estimates

8 even go worse for rural and semi-rural segment of the State on account of further lack of education and exposure. It is a fact that these women entrepreneurs need professional training and proper exposure to the business environment. They should be well equipped with all the business intelligence that are necessary to conceive an appropriate and well defined idea to make a start and hunt the available local business opportunities to the extent possible on a prima-facai basis. From general to industry-specific entrepreneurship development programs[EDPs] and management development programs[MDPs] conducted by several Government agencies like State financial corporations, nationalized banks, State industrial corporations, district industry centers and voluntary organizations including the Colleges, Universities and their open seminars meant for business skill up gradation, etc., are expected to render them the vital exposure regarding what project should be undertaken and how to achieve the target successfully, step by step from time to time. Moreover, various self-employment schemes like Prime Ministers Rojgar Yojana [PMYR], small scale industries scheme[SSIs], self-employment for educated unemployed youth [SEEUY] are also in operation in this line to provide counseling and follow-up services to the women entrepreneurs from the very beginning of the selection and preparation of a project to till its lunch and successful operation in the market. Even the trade related entrepreneurship assistance development [TREAD] program has been operating successfully in the rural, semi rural and urban areas of the State to economically empower women entrepreneurs through developing their professional skill and eliminating constraints. One auspicious sign in this context is the dramatic change in the traditional entrepreneurial scenario that the State has been experiencing since the last decade with the wide spread consensus for technical and professional education like engineering, management, chartered accountancy, fashion designing, hotel and tourism industry, etc., and the presence of a satisfactory proportion of male-to-female in these areas has been considered as a bench- mark of success for the social, cultural and economic upliftment of the society. The frequent entrance of women in the field of entrepreneurship, and moreover, their notable shifting into the non-traditional sectors of engineering, chemicals, energy [which were once considered as the prerogative of men] from the traditional fields of cottage and handicraft industry has already proved their adeptness and mind maturity with a win-win strategy. However, this should be treated as the initial phase of growth. To sustain in the market on a long term basis, they need to have adequate business intelligence with appropriate market exposure. Their project should be strategically planned and sound in character which must yield them at least for 10 to 15 years. As business is a risky venture with an uncertain

9 future, women in this segment need to have more professional guidance at every step till the successful implementation of the already planned project. When we talk about the success of a venture, women of this category must come up with the answer of certain questions, like which business venture they should enter into? Should it be a field of trading, manufacturing or the service sector? What is the recent trend of the industry and market? Which product or service should they come up with into the market that can be sold as hot cake? Who are their immediate and future customers? Who are their competitors? How and where to raise fund for making investments in fixed and working capital and what is the cost of such capital so raised? What should be the proportion of the skilled, semi-skilled and un-skilled employees in the project? What would be the probable cost of production? What would be the selling and distribution expenses? How much net profit this project would yield and how early it can repay them i.e. what should be the pay- back period of such project, and finally, how much margin of safety would be available to them?, etc. Also to be successful in the world of entrepreneurship one needs to know how to dump their competitors. Here the women entrepreneurs should be vigilant enough regarding the strengths and weaknesses of their competitors, the market share they hold, the resources they control, the response of their male counter part during their entrance in the same field of business, and most importantly, the strategic steps they need to take against the response of these male competitors. 4. Lower class Women, leading Micro & Tiny Enterprises: This is the category of

women entrepreneurs who are envisaged to be the most un-privileged class of our society. Poverty, illiteracy and financial constraints have been rolling with them since ages. However, this class is more concerned to operate business in the traditional entrepreneurial fields of our society like agriculture, sericulture, apiculture, diary firms, mushroom production, manufacture of pickles and papads, production of broom sticks and coil items, tailoring, embroidering, weaving woolen jackets, manufacturing bamboo baskets, knitting jute bags, tagging leaf plates, cultivating and selling agricultural products, etc. Many of them are adept as potters. Few are the artists who draw awesome with graphs and colours. While a few artisans come up with the business of terracotta, others manufacture idols and dolls. Even a marginal in number prefer to open mini beauty parlor. They are not keen to work in the non-traditional fields, unlike the middle class category of women entrepreneurs. They almost do not have formal education & professional training but are certainly laborious, dedicated and able to muster family support as their main aim is to supplement the family

10 income. Unlike the middle class, their financial requirement is often minimal and the kinds of project they undertake are not essentially tech-based. It is vital to note here that in Orissa almost 50 percent of the entire population are women but the proportion to which they hold their grip on entrepreneurial business is not more than 10 percent, on an average, in comparison to the total entrepreneurs of the State. Here women are better recognized as workers and daily labourers than entrepreneurs. This is certainly horrible. After all, they have enough courage and enthusiasm to do something that would yield them a decent livelihood. All they need is nothing more but a little bit of cash credit, encouragement, any shortterm entrepreneurial training of their interest area and a market for the products they produce or the services they would be able to render. It is imperative to mention that a socio-economic upliftment with the optimum yield out of the key resources of the State can never be possible without promoting this category who actually makes the best utilization of the factors of production that have been scattered out in the rural and semi-urban ends of the State. However, one can clearly notice that the entrepreneurial life they lead, either singly or in a cluster, is highly pathetic. They adjust their business with limited resources. Many a time, they suffer with problems like poor shop locations, lack of transportation facilities, inappropriate marketing centers, lack of training necessary for the product finishing, inadequate ventilation and light at work places, pollution and a number of health hazards that are inevitable. What they need most is the proper infrastructure and a friendly-cum-healthy work environment for productivity and prosperity. With the motive to make these poor women of rural and semi-urban areas of the State more self-employed and economically independent, the Government of Orissa has also implemented several schemes. Prime ministers Rojgar yojana [PMYR, seeks 30 percent reservation for Women], integrated rural development program [IRDP], rashtriya mahila kosha [RMK], Assistance of rural women in non-farm development [ARWIND], Assistance for marketing of non-firm products of rural women [MAHIMA], etc., aim at fulfilling the credit needs of the rural poor women, who are either working individually or in a group that often reduces the business risk. The inherent motive behind such help is nothing but poverty elevation and encouragement of self-sustained entrepreneurship. In addition, small industry development bank of India [SIDBI] also encourages women entrepreneurship, provides financial and professional assistance in liberal terms. Again, many district industry centers [DICs] and voluntary organizations [VOs] also conducts awareness

11 camps for micro-entrepreneurs, where special emphasis is paid for the women entrepreneurship through the power model. The efforts of NGOs like Udyogini, Mission Shakti, Swayam Siddha, etc., are also worth praising as they play crucial role in motivating the gross-root women groups of the rural Orissa. They induce awareness and confidence in them and take proper care of their education, health, sanitation and legal rights. In addition, they also impart strategic and managerial trainings that help in capacity building of the group in a congenial environment. Last but not the least; the vital requirement would be a proper follow up of all these schemes at each level and every step as it is essential to rescue these missions from failure in one hand and maintaining due care for the sustainable development and empowerment of women entrepreneurs on the other hand.

Conclusion:
Women by nature are pleasant, friendly, caring and better crisis solver than their male counterpart. The same is also true in the entrepreneurial field, though not always and in every case. Still, it is a God gifted biological advantage that helps them to survive in the market even during the most critical moments of a venture, whereas; their male counter parts drop out in a similar situation. Study says women can make better rapport than men in business. They know how to direct and motivate the staffs, how to keep them in confidence and get the best result in an operation. In addition to command, they also value their staffs and understand their psychology. As a result, they have proved themselves as better bosses than men. However, it is the society that lacks confidence in their ability of managing office and home simultaneously due to their recessive role since years. But the time has changed. They are now equally qualified, efficient and matured. Today, even it has become an economic compulsion for them to come out of their Shell and prove themselves in the market, equally with their male counterpart, to get economic independence and social recognition. Perhaps, now it has become essential when all of us must have a strong mind set to see an entrepreneur as an entity rather than making categories on the basis of gender. The time has come to change the orthodox psychology of our society; at least during the present era when many of us either keep long hair, apply scented oils or black/ brown dyes on it or just use the fairness creams but talk of muscularity. Can we bear any more either to be a culprit or just a PINOCCHIO???

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