Rural women entrepreneurship: key to industrial growth, social and economic development of a country - a study with reference to Tamilnadu State, India

This paper investigated the impacts of women entrepreneurship and the rural women’s entrepreneurial activity helps in Industrial, economically and social development of women’s in the rural parts of the country.

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RURAL WOMEN ENTREPRENEURSHIP: KEY TO INDUSTRIAL GROWTH, SOCIAL AND ECONOMIC DEVELOPMENT OF A COUNTRY - A STUDY WITH REFERENCE TO TAMILNADU STATE, INDIA

Dr E Joseph Rubert

Assistant Professor, Department of Business Administration, St.Jerome’s College, Anandhanadarkudy, India

J.Sahaya Shabu

Assistant Professor, Department of Business Administration, St.Jerome’s College, Anandhanadarkudy, India

ABSTRACT

Rural Women’s entrepreneurial activity has enormously contributed to the Industrial, economic and social growth in the rural areas over the past few years in the state of Tamilnadu, India The Micro, Small and Medium Enterprises started by rural women are classified into three categories of business activities such as manufacturing, trading and service sectors This paper investigated the impacts of women entrepreneurship and the rural women’s entrepreneurial activity helps in Industrial, economically and social development of women’s in the rural parts of the country The present study has analyzed the before and after effects of social and economic status of rural women with respect to women entrepreneurship The study has also examined the industrial development in the rural areas through rural women entrepreneurship A descriptive research study had been conducted through direct interview with the rural women entrepreneurs Secondary data were also obtained from the websites and publications of government departments with respect to the programmers and promotion made for industrial development and promotion of rural women entrepreneurial activities From the list of women entrepreneurs across the Tamilnadu state of India, 600 women entrepreneurs were interviewed as samples and data obtained were processed and analyzed using statistical tools and the outcomes of the findings were discussed in detail in the paper

Keywords: Women Entrepreneurs, Small Medium Enterprises, Social Impact,

Economic Impact, Political Impact, Sustainable Economic Development

Cite this Article: Dr E Joseph Rubert and J.Sahaya Shabu, Rural Women

Entrepreneurship: Key to Industrial Growth, Social and Economic Development of a

Country - A Study with Reference to Tamilnadu State, India., International Journal of

Management (IJM), 11 (3), 2020, pp 325–336

http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=3

1 INTRODUCTION

If India’s target on economic development has to be realized, then the women in the rural India has to empowered socially and economically, this would be done possible when the rural women are encouraged to participate in the entrepreneurial activities The conventional thoughts in the minds of the society about women that is the women are born to care and raise

a family should be changed Women should be encouraged to actively participate equally in the activities of the society Entrepreneurship is one such social activity that women has to be encouraged to participate and contribute to the development of the society In rural India, older, married women ability for a basic skill and efficiency, is to set-up small, self-sustaining businesses In the state of Tamilnadu the Micro, Small, Medium Enterprises (MSME)1 significantly contribute more in the economic and social development of the rural women in the state, it also act as a nursery for entrepreneurship and activities connected with it In the year 2018 Tamilnadu has 8.44 Lakh registered MSMEs in the country MSMEs sector contributes about 10% to the GSDP, it also created employment to about 58.83 Lakh persons and accounts for a total investment of Rs 48,189 crores Over 8000 varieties of business activities including manufacturing, trading and service sectors are operated in Tamilnadu through MSMEs The entrepreneurs often seek support from the MSME officials in terms of business development, knowledge and skills for running a micro business, access to market and others However, the rural areas across the state of Tamilnadu has their own socio - economic limitations, not well built like urban, limited access to training facilities, poor public transport, restricted mobility in remote geographies, etc often unfulfilled their need and wants Though there are many challenges the thought was to have a unified entrepreneurship development programmers and entrepreneurial activities across the country that not only provides women with the capacity to access the market and finance but also provided them with psychological and emotional support for their social and economic development

The research studies related to entrepreneurship and entrepreneurial activities in the country reveal that a good number of women entrepreneurs have been encouraged over a period of time

to undertake entrepreneurial activities and that shows a positive result in the growth of rural women entrepreneurs in the country In rural India, almost 50 percent of all workers are self – employed and 57 percent among males and nearly 62 percent among females, while the corresponding figures in urban India are 42 for males and 44 for females

The central statistical organization, Fifth Economic Census says that there are 41.83 million establishments in the country are engaged in different economic activities other than crop production and p lantation

A study conducted by Sabiha Fazalbhoy (2014)2 says that making the rural women entrepreneurs in the government registered sector will pave the way for economic development

of the country He also says that if the government provides financial support by including them

in the registered sectors then the women entrepreneurs can perform even better, both in urban and rural areas Malyadri (2014)3 in his study reveals that majority of women entrepreneurs operates medium and small enterprises are under very adverse conditions He has listed the number of difficulties faced by them such as to find premises, find markets for their products, access information and credit, access to training especially in the rural areas Apart from all such difficulties in running the enterprises they are also facing the difficulties of their economic and social pressures Their educational levels are low, they are responsible for all the domestic chores and they are supposed to take permission from their family members to travel for trade fairs or for training Neera pal and Shakuntala misra (2016)4 the study highlights the facts about women entrepreneur’s role in the economic development and the challenges of women entrepreneurs The study says that they can manage home and business equally They contribute

in economic development of India

Nearly, 45 percent women sector occupies of the whole population of India So, government have to provide adequate development programs for organizational and skill development of women entrepreneurs The research study has some suggestions for further development of women entrepreneurship that is there is a need for multi-dimensional approach in different sectors like government, non-government, financial institutions etc Vibhavari M.Chavan (2016)5, says that women entrepreneurs are gaining recognition recently, still there are long ways to go The transition from homemaker to women entrepreneur is not so easy and in the same way it is also difficult for a woman to succeed and sustain in her business She has to learn from her experiences, adapt herself and overcome the challenges in her field She has to creatively utilize her strengths to overcome the threats and grab all the opportunities to minimize her weaknesses Saud Ilahi (2018)6 Says that only 20 percent Ownership are of female entrepreneurs that too running a micro level enterprises The study suggested that there

is a major need of change in the people’s mindset and attitude about women entrepreneurship Major schemes has to be introduced for the development of women entrepreneurial activities and more opportunities has to be created for women to take up big and challenging venture

2 OBJECTIVES OF THE RESEARCH

The present study aims at fulfilling the following objectives

• To Study the growth of Women entrepreneurship in rural areas through Micro, Small, Medium Enterprises sector

• To Study the impact of rural women entrepreneurship in promoting industrial, Social and economic development

3 METHODOLOGY

A Descriptive research was attempted with Survey method to describe the various phenomena related to the study

3.1 Data Collection

The data consist of both primary and secondary sources A pre tested questionnaire was used

by to collect primary data from the sample respondents Direct interview method was adopted for data collection Secondary data were obtained from the database, records and publications

of MSMEs and government departments Proper permissions were obtained from the department concern for accessing the data which have matter of public interest

3.2 Sampling method

The whole populations were classified into three strata based on the nature of business activity undertaken by the rural women entrepreneurs namely Manufacturing, Trading and Service sectors Stratified random sampling using lottery method were used to choose 200 sample in each stratum Therefore 600 samples were selected on the whole for the study The population

of the study was identified from the Database list of rural women entrepreneurs registered in Micro, Small, and Medium Enterprises (MSME) Only the rural region of Tamilnadu state of India are included for the study

3.3 Data processing

The collected data were classified in different tables; simple percentage was calculated and interpretations are written for each table Further the mean score for each variable are calculated Paired sample test was used to analyze the variables and results are taken from the analysis and facts are generalized in the study

4 RESULTS AND DISCUSSIONS

4.1 ANALYSIS OF SOCIO-ECONOMIC PROFILE OF THE RESPONDENTS

Table 1 Classification of Respondents based on Age and Nature of Business Activity

(Data in Percentage of sample)

Source: Primary Data

Table1 shows the age wise classification of respondents and Category of business activity undertaken It is found that majority of the respondents say 416 who constitutes 69.3 percent belongs to the age group between 40-50 years 96 rural women entrepreneurs who constitutes 16.0 percent are below 40 years of age 88 women entrepreneurs who constitutes 14.7 percent

of the total are above 50 years of age

The table also presents the following data Rural Women Entrepreneurs engaged in Manufacturing business activity: out of 200 respondents 128 respondents who constitutes 64.0 percent are between the age group of 40- 50 years, 40 respondents who constitutes 20.0 percent were belong to the age below 40 years and 32 respondents who constitute 16.0 percent were belong to the age 50 and above

Rural Women Entrepreneurs engaged in trading activity: out of 200 respondents 144 respondents who constitute 72.0 percent were between the age group of 40- 50 years, 32 respondents who constitute 16.0 percent were belong to the age 50 and above and 24 respondents who constitute 12.0 percent were belong to the age below 40

Rural Women Entrepreneurs engaged in Service activity: out of 200 respondents 144 respondents who constitute 72.0 percent were between the age group of 40- 50 years, 32 respondents who constitute 16.0 percent were belong to the age below 40 and 24 respondents who constitute 12.0 percent were belong to the age 50 and above

Table 2 Classification of the respondents based on Education

(Data in Percentage of sample)

Source: Primary Data

Table 2 Shows education wise classification of respondents and category of business activity undertaken

It is inferred that majority of the respondents say 208 who constitute 34.7 percent have acquired primaryeducation.184 who constitute 30.7 percent have acquired SSLC level of education.103 respondents who constitute 17.3 percentage illiterates 88 who constitute 14.7 percent are HSC and 16 respondents who constitute 2.7 percent are graduates

The table also shows the following

Rural Women Entrepreneurs engaged in Manufacturing business activity: out of 200 respondents 80 respondents who constitute 40.0 percent were illiterate, 56 respondents who constitute 28.0 percent were acquired primary education, and 48 respondents who constitute 24.0 percent were acquired SSLC, 16 respondents who constitute 8 0 percent were acquired HSC and no respondents acquired graduation who engaged in manufacturing business activity Rural Women Entrepreneurs engaged in Trading activity: out of 200 respondents 120 respondents who constitute 60.0 percent were acquired primary education, 48 respondents who constitute 24.0 percent were acquired SSLC, 24 respondents who constitute 12.0 percent were illiterate, 8 respondents who constitute 4.0 percent were acquired HSC and no respondents acquired graduation who engaged in Trading business activity

Rural Women Entrepreneurs engaged in Service activity: out of 200 respondents 88 respondents who constitute 44.0 percent were acquired SSLC, 64 respondents who constitute 32.0 percent were acquired HSC, 32 respondents who constitute 16.0 percent were acquired primary education, 16 respondents who constitute 8.0 percent were acquired graduation and no respondents were illiterate who engaged in service activity

Table 3 Classification of the respondents based on Marital Status

(Data in Percentage of sample)

Manufacturing Trading Service

TOTAL 200 (100.0%) 200 (100.0%) 200 (100.0%) 600(100.0%)

Source: Primary Data

Table 3 shows the distribution of respondents based on their marital status It reveals that majority of the respondents say 535who constitute 89.3 percent were, 65respondents who constitute 10.7 percent were unmarried

The table also shows that following

Rural Women Entrepreneurs engaged in manufacturing business activity: out of 200 respondents 184 who constitute 92.0 percent were married and 16 respondents who constitute 8.0 percent were unmarried

Rural Women Entrepreneurs engaged in trading activity: out of 200 respondents 168 respondents who constitute 84.0 percent were married and 32 respondents who constitute 16.0 percent were unmarried

Rural Women Entrepreneurs engaged in Service activity: out of 200 respondents184 who constitute 92.0 percent were married and 16 respondents who constitute 8.0 percent were unmarried

Table 4 Classification of the respondents based on Occupation Wise

Manufacturing Trading Service

TOTAL 200 (100.0%) 200(100.0%) 200(100.0%) 600(100.0%)

Source: Primary Data

Table 4 shows occupation wise classification of respondents and category of business It reveals that majority of respondents say 288 who constitute 48.0 percent were petty traders, 184 respondents who constitute 30.7 were employed and 128 respondents who constitute 21.3 percent were engaged in agriculture

The table also shows that following

Rural Women Entrepreneurs engaged in manufacturing business activity: out of 200 respondents88 respondents who constitute 44.0 percent were engaged in agriculture and 56 respondents who constitute 28.0 percent each were employed and petty traders

Rural Women Entrepreneurs engaged in trading activity: out of 200 respondents120 respondents who constitute 60.0 percent were petty traders, 48 respondents who constitute 24.0 percent were employed and 32 respondents who constitute 16.0 percent were engaged in agriculture

Rural Women Entrepreneurs engaged in Service activity: out of 200 respondents 96 respondents who constitute 48.0 percent were petty traders, 61 respondents who constitute 30.7 percent were employed and 43 respondents who constitute 21.3 percent were engaged in agriculture

Table 5 Classification of the respondents based on Income wise

Manufacturing Trading Service

TOTAL 200 (100.0%) 200 (100.0%) 200(100.0%) 600(100.0%)

Source: Primary Data

Table 5shows the Income wise classification of respondents and category of business undertaken by the rural women entrepreneurs It reveals that majority say 296 respondents who constitute 49.3 percent were between the income groups 20000 – 30000, 272 who constitute 45.3 percent were between 10000 – 20000 and 24 respondents who constitute 4.0 percent were above 30000 income

The table also shows that following

Rural Women Entrepreneurs engaged in manufacturing business activity: out of 200 respondents112 respondents who constitute 56.0 percent were between the income group 10000-20000, 80 respondents who constitute 40.0 percent were between the income group 20000-30000 and 8 respondents who constitute 4.0 percent were above 30000 income

Rural Women Entrepreneurs engaged in Trading activity: out of 200 respondents112 respondents who constitute 56.0 percent were between the income group 20000-30000, 72 respondents who constitute 36 percent were between the income group 10000-20000 and 16 respondents who constitute 8 percent were above 30000 income

Rural Women Entrepreneurs engaged in Service activity: out of 200 respondents104 respondents who constitute 52.0 percent were between income group 20000-30000, 88 respondents who constitute 44.0 percent were between income group 10000-20000 and 8 respondents who constitute 4.0 percent were above 30000 income

Table 6 Classification of the respondents based on form of Organization

Manufacturing Trading Service

Source: Primary Data

Table 6 shows the classification of respondents based on form of organization It reveals that majority say 472 respondents who constitute 78.7 percent were sole proprietor and 128 respondents who constitute 21.3 percent were formed partnership firm

The table also shows that following

Rural Women Entrepreneurs engaged in manufacturing business activity: out of 200 respondents 112 respondents who constitute 56.0 percent formed partnership firm and 88 respondents who constitute 44.0 percent formed sole proprietor

Rural Women Entrepreneurs engaged in trading activity: out of 200 respondents184 respondents who constitute 92.0 percent formed sole proprietor and 16 respondents who constitute 8.0 percent formed partnership firm

Rural Women Entrepreneurs engaged in Service activity: out of 200 respondents200 respondents who constitute 100.0 percent formed sole proprietor and no respondents formed partnership firm

Table 7 Classification of respondent based on Trading Sectors

Source: Primary Data

Table 7 shows that of the 200 respondents, a majority of 56 who constitutes 28.0 percent belong to Textile trading and vegetables trading, 32 respondents who constitute 16.0 percent belongs to cosmetics and fancy trading, 24 respondents who constitute 12.0 percent belongs to grocery items trading and 16 respondents who constitute 8.0 percent belongs to trading of home appliance and other products

Table 8 Classification of respondent based on Manufacturing Sectors

Category of Business (Manufacturing) Percent

Source: Primary Data

Table 8 shows that of the 200 respondents, a majority of 32 who constitutes 16.0 percent belong to Juices and beverages manufacturing, 24 respondents who constitute 12.0 percent were

in the snacks and detergent powder manufacturing, 16 respondents each who constitute 8.0 percent were in manufacturing of Coir product, coconut oil, pickles and flour items and 8 respondents each who constitute 4.0 percent were in manufacturing of the candle, handicraft, nursery garden, agriculture, soda/aerated water, papad and paper cup/plate

Table 9 Classification of respondent based on Service Sector

Source: Primary Data

Table 9 shows that of the 200 respondents, a majority of 52 who constitutes 52.0 percent belong to Beauty parlor service, 32 respondents each who constitute 16.0 percent were in the fast food service, tiffin services, 16 respondents who constitute 8.0 percent were in Xerox machine service and 8 respondents each who constitute 4.0 percent were in the door delivery and tailoring services

Table 10 Classification of respondent based on Saving Habit

Saving habit Category of business

Total Manufacturing Trading Service

TOTAL 200(100.0%) 200(100.0%) 200(100.0%) 600(100.0%)

Source: Primary Data

Table 10 shows savings habit of the respondents It reveals majority say 592 respondents who constitute 98.7 percent having saving habit and 8 respondents who constitute 1.3 percent having no saving habit

Table 11 Classification of respondent based on “Where do you save”

Manufacturing Trading Service

TOTAL 200(100.0%) 200(100.0%) 200(100.0%) 600(100.0%)

Source: Primary Data

Table 11 shows that of the 600 respondents, a majority say 304 respondents who constitute 51.4 percent have savings in post office, 200 respondents who constitute 33.8 percent have savings in nationalized banks, 72 respondents who constitute 12.2 percent have savings in Life Insurance and 16 respondents who constitute 2.7 percent have savings in recurring deposits

Table 12 Paired Sample Test of variables Impact Social, Political and Economical Status of Rural

women Entrepreneurs

Variable

Paired

(2-tailed) Mean

Pair 1 Extra Income for the family -.42667 -11.103 599 000 Pair 2 Economic Development -.38667 -10.599 599 000 Pair 3 Creating Employment opportunity -.45333 -10.447 599 000 Pair 4 Social status of rural entrepreneurs -.52000 -13.106 599 000 Pair 5 Ability of Decision-making ability -18667 -4.893 599 000 Pair 6 Setup women’s rights -.44000 -10.806 599 000 Pair 7 Addressing openly for

predominant social causes .68000 12.344 599 .000 Pair 8 participation in village panchayat

Pair 9 Ability and capacity to politicize

Source: Authors calculation

Table 12 shows the paired sample test of variables impact the social, political and economic status of rural women entrepreneurs It states as per the test of significance it is known from the analysis that the mean score is high for economic, social and political factors at 95 percent confidence interval and the “t” value is more for the social, economic and political empowerment of rural women entrepreneurs It is further noted that among the political factor

“t” value is less for the independent variable of addressing openly for predominant social causes

at least for fundamentals rights have lesser significance than the other independent variable To check the validity of the above said statement, test of significance (t-test) was applied and the results are presented in table 13, 14 and 15

Table 13 Economical Status of Rural women Entrepreneurs

SI

Mean Score of the

Difference

T-Statistics Before WE After WE

1 Extra Income for the family 2.1733 2.6000 0.42607 11.103**

3 Creating employment

Source: Authors calculation

It is observed from table 13 that there is apparent increase in economic status of rural women entrepreneur Independent variables such as extra income for the family, economic development and creating employment opportunity before and after women entrepreneur were compared and it gives that it is statistically significant, as the calculated’ value is 11.103, 0.59 and 10.44 respectively Hence it is concluded that there is increase in economic status of women entrepreneurs

Table 14 Social Status of Rural Women Entrepreneurs

SI

Mean Score of the

Difference

T-Statistics Before WE After WE

1 Upgrade social status 2.1333 2.6533 0.52000 13.106

2 Improved decision making 2.3333 2.5200 0.18667 4.893

3 Establish women’s rights 2.2000 2.6400 0.44000 10.806

Source: Authors calculation

It is observed from table 14 that there is apparent increase in Social status of rural women entrepreneur Independent variables such as upgrade social status, Ability of decision making ,establish women’s rights, level of participation in social function before and after women entrepreneur were compared and it gives that it is statistically significant, as the calculated’ value is 13.106, 4.893 and 10.806respectively Hence it is concluded that there is increase in Social status of women entrepreneurs