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Tuesday, 2 June 2015

Gandhiji’s Views on Trade Unions




Gandhiji’s Views on Trade Unions                
        
Introduction   
                            
M.K.Gandhiji’s philosophy is based upon the “Sarvodaya” principles of “Truth”, “Non-Violence” and “Trusteeship”, in which a class harmony prevails. Gandhiji’s view was that trade union should not only undertakes the functions concerned with improving the economic conditions of workers. But must also try to raise the moral and intellectual through internal efforts. He also emphasized that unions must not only be conscious of their rights but also of their duties. However,  he recognized the workers’ right to strike in industries. He favoured arbitration as a tool of settlement of industrial unrest.  In his view strike is a form of “Satyagraha” to meet the demands of workers and therefore it must be organized and conducted as such.
            According to Mahatma Gandhi the aims and policy of unionism are; it is not anti-capitalist, not again through the cleverness of non-labour leaders, but by educating labour to evolve its own leadership and its own self-restraint, self-existing organization. Its direct aim is not in the least degree political. Its aim is internal reform and evolution of internal strength. 

Gandhiji’s View on Industrial Relations


There are industrial laws existing  to regulate the industrial relations and there is still gap  for their amendment to make them more exhaustive. There are agencies such as National Tribunals, State Level Tribunals, Labour Courts, Conciliation Officers and Arbitrators to sort out the disputes arising between workman and the management from time to time and yet the number  of industrial disputes are on the increase. Both the trade unions and the industrialists are busy trying to tilt the political level in their favour to bring about the changes in the labour laws to serve their vested interests. Despite all these laws and an elaborate machinery to enforce them, strikes, lock-outs, closures, cases of violence and use of criminal force are quite common in day-to-day life.
            Industrial relations are perhaps as complex  affair as marital relations ; slight misunderstanding or suspicion can blow up the whole system of understanding and goodwill and respect for each other built up by the parties brick by brick for years together. The principles advocated by Mahatma Gandhi for regulating the labour-management relations are based on his broad concepts of truth and non-violence and they still hold good and can yield the desired results, if given a fair trial. He envisaged the employers and employees as two partners in the manufacturing process. In his social set up, there is no place for economic classes as held by Karl Marx.  Mahatma Gandhi had said “right that do not follow directly from duty well-performed are not worth having”. It is worth noting that Mahatma Gandhi did not insist on performance of duty alone by all concerned. So unless there is a change of heart and outlook on the industrial front for which no single party can be blamed, it is not likely to be much improvement even if there is  another score of legislative measures to the library and create more agencies and officers for the settlement of the disputes. 


Gandhiji on  Textile Labour Association (TLA)  


Early in 1918 some 10,000 weavers of Ahmedabad textile industry approached Anusuyaben Sarabhai, and sought her assistance  in securing wage hike. Considering the large number of workers involved in the struggle, she thought it advisable to obtain the advice  and assistance of Gandhiji, who was then at Champaran. Gandhiji felt it to be his duty to render whatever assistance he could and came to Ahmedabad and took up the matter. Shankerlal Banker was asked by Gandhiji to help Anusuyaben in tackling the problem of the textile workers of Ahmedabad. 
Between 1919 and 1923, scores of unions came into existence. At Ahemdabad, under the inspiration of Mahatma Gandhi and Anusuyaben, occupational unions like Spinners’ Union and Weavers’ Union came into existence, which later on federated into an industrial union known as the Ahmedabad Textile Labour Association (Majoor Mahajan). The Association, ever since its inception, has been a model of sound unionism in our county, based on the Gandhian philosophy of mutual collaboration and non-violence.
          At this juncture, the workers, the mill owners and even the Collector of the District sought the help and guidance of Gandhiji to solve the deadlock. On the suggestion of Gandhiji it was agreed to refer the dispute to a board of arbitration consisting of three representatives of the mill owners and there of the workers. The three representatives of the workers were Gandhiji, Sardar Vallabhabhai Patel and Shankerlal Banker. But before the board could actually begin its work, workers in some of the mills went on strike based on a misunderstanding of the mill owners’ stand, which was utilized by the mills concerned to declare a lock-out and even to back out of the agreement to refer the dispute for arbitration. The mill owners further threatened to oust  all workers  who reluctant to accept their terms.
            Gandhiji was pained at this attitude of the employers. He felt that in view of the denial  by other mill owners to agree to arbitration, the workers had no other alternative except to go on strike. But before Gandhiji gave his approval to the strike, he examined the workers’ case carefully. He came to the conclusion that instead of a demand for 50 percent wage increase made by the workers, it would be proper to scale it down to 35 percent. He accordingly advised the workers to lower their demand to a 35 percent increase. The workers agreed.
            Even then before calling the strike, Gandhiji asked the workers to take a solemn pledge not to go back to work without getting the 35 percent hike in their wages. He explained that the object of the strike was not to force  the employers but to bring about a change of heart through voluntary suffering and that the workers should go through their suffering in that spirit, with faith in deity. He also advised them not to entertain any feeling of ill-will against the mill owners or resort to abusive language or cause damage to the mill owners’ property or resort to violence. He also advised them not to quarrel or rob or plunder, but to behave peacefully in a disciplined manner.
            The strike commenced on February 22, 1918.  Every day Gandhiji  used to address the workers under the shadow of a Babul tree on the bank of the Sabarmati river in Ahmedabad, to remind them of their pledge and to continue the struggle peacefully till the 35  percent increase in wages was secured. It was from the Babul tree that the story of the struggle of Indian labour really began.
            The wages of labour were low and some of them experienced serious difficulty in maintaining themselves. Some friends of Gandhiji had offered funds for the relief of such workers as might be in distress; but Gandhiji felt that the workers, though poor, were self-respecting citizens and should not depend on public charity but strive to carry on their struggle on their own strength. He therefore, made arrangements to provide work for such strikes as were in need of it at the Ashram. But those who came for it found it irksome and gave it up after a day or two and began to talk of going back to the mills. This caused great pain to Gandhiji. Gandhiji exhorted them to remain firm. But he found that mere wordy exhortation would not be adequate. He thereupon undertook a fast to enable the workers to realize the sanctity of the solemn pledge they had given him before launching upon the strike and made them honour it. This was the first fast by Gandhiji for a public cause in India.
            “I am responsible for the organization of Ahmendabad labour. I am of the opinion that it is a model for all India to copy. Its basis is non-violence, pure and simple. It has never had a setback in its career. The organization has never taken part in party politics of the Congress. It influenced the municipal policy of the city. It has to its credit very successful strikes, which were wholly non-violent. Mill owners and labour have governed their relations largely through voluntary arbitration.”
            The AITUC approached Gandhiji with a request to affiliate his Textile Labour Association of Ahmedabad with the AITUC. He replied that he was making a unique experiment in trade union movement and that Ahmedabad was his laboratory for the purpose. He wanted the trade unions throughout the country to be fashioned after his Ahmedabad model, and would therefore wait till such a situation arose. Gandhiji said:

“If I had my way, I would regulate all the labour organizations of India
after the Ahmedabad model. It has never sought to intrude itself upon
the AITUC and ahs been uninfluenced by that Congress. A time, I hope,
will come when it will be possible for the All India Trade Union Congress
to accept the Ahmedabad methods and have the Ahmedabad  organisation
as part of the All India Union. I am in no hurry. It will come in its own time.”

Gandhiji’s First Abstention 
            Gandhiji told a morning meeting of the workers on the day he had decided un-to-death, that he would not touch any food till they got their demands conceded. Some of the workers also volunteered to fast with him. But Gandhiji dissuaded them from doing so, and told them all that they had to do was to be faithful to their pledge and remain firm on continuing the strike.
            On the first day of the fast Anusuyaben Sarabhai and several other leaders fasted too. But Gandhiji persuaded them to desist from the fast and asked them to look after the striking workmen. Gandhiji’s   decision to go on fast was spontaneous and not the result of prior planning. He clarified later on that the object of the fast was not to coerce the employers. It was a fast against the workers who failed to honour the pledge solemnly undertaken by them on the eve of the strike. In a way, the fast was against himself, for Gandhiji felt that he had wrongly assessed the value to be attached to the pledge given by the workers. According to him the leadership must be able to correctly assess the workers’ capacity, standing the pledge they took.
            Gandhiji’s fast electrified the atmosphere. Those workers who stealthily returned to work found their conscience biting them. It did not permit them any longer to go to work, and the strike became complete immediately the news of the fast spread. The workers came in large numbers to the Ashram for work. Even those who were not in need of work came, worked and donated their earnings for the relief of the needy. The new spirit thus generated increased their strength and helped the settlement that was to follow. Three days after the fast commenced, the mill owners agreed to accept arbitration ; and the strike which had lasted 25 days was immediately called off.

Gandhiji’s Involvement 
            Mahatma Gandhi came to Jamshedpur  in 1925.  C.F.Andrews maintained his friendly relations with the Jamshedpur workers. Soon after Gandhiji’s arrival the situation grew better. The management agreed to implement the agreement. They recognized the Association, reinstated Sathaye  who continued to function as General Secretary of the Association.
            Gandhiji’s intervention had a far greater effect than even the expectations of the Association. One of the terms of the Gandhi-Tata agreement was that the Steel company would deduct the monthly subscriptions of the workers from their pay and hand them over to the Association. Gandhiji wanted the Jamshedpur Labour Association to be built on the Ahmendabad model. Sathaye was sent to Ahmedabad to study and have a first-hand knowledge of the trade union activities there. Subhash Chandra  Bose had by then become President of the Association. In 1930, Gandhiji’s call came for mass civil disobedience in the country. The Jamshedpur workers also responded.   

Hindustan Mazdoor Sevak Sangh
            There was a Sangh called the Gandhi Seva Sangh in which some of the top leaders of the country were members. They had a firm faith in Gandhian philosophy.  The Gandhi Seva Sangh had a Labour sub-committee under the Chairmanship of Sardar Vallabhbhai Patel. At a meeting of the Sangh in Bridavan in 1938, it was felt that in view of the growing importance of labour work. It was therefore decided that a separate, independent specialized agency should be created to train labour workers, to assist them to find a suitable field for work and maintain them, if necessary, for a time, till they became self-supporting. The new organization that was formed pursuant to this decisions was the Hindustan Mazdoor Sevak Sangh.

Gandhiji’s Philosophy on Trusteeship
            Gandhiji was the first person to propound the philosophy of co-trusteeship. The general opinion that one who invests capital is the employer is not altogether correct. He is only employer of labour, just as labour too,  is the employer of capital. Both labour and capital are therefore mutually employers and employees. But the real employer is the community, as it is the community that gives employment to both labour and capital and the object of the joint Endeavour of labour and capital should therefore be to serve the community. Gandhiji, therefore, wanted that workers should work in industry as co-workers and the so-called owners should work in industry as co-workers with labour. This would help in gradually substituting the present relationship of master and servant between capital and labour to that of co-partnership.
             Commenting on the ideal labour-management relationship, Gandhiji observed: “The relations between the mill agents and  the mill hands ought to be one of father and children or as between blood brothers. I often heard the mill owners   of Ahmedabad refer to themselves as masters, and their employees as their servants. Such loose talk should be out of fashion in a place like Ahmedabad, which prides itself on its love of religion and its love of Ahimsa, for that attitude is a negation of Ahimsa. What I expect of you, therefore, is that  you should hold all your rights as a trust to be used solely in the interest of those who sweat for you and to whose industry and labour you owe all your position and prosperity. I want you to make your labourers co-partners of your wealth. I do not mean to suggest that unless you legally bind yourself to do all that there should be a labour insurrection. The only sanction that I can think of in this connection is mutual love and regard as between father and son, not of law. If only you make it a rule to respect these mutual obligations of love, there would be an end  of all labour disputes.”

Workers’ Participation in Management
            Gandhiji philosophy of co-trusteeship arose, thus from the conviction that both labour and capital area co-trustees in whose hands the  welfare of the community is entrusted. He therefore wanted both labour and capital to consider themselves as co-servants of the society. Arising out of this is workers’ participation in management. The sponsoring of a scheme of workers’ participation in management through Joint Management Councils by the Government of India was, therefore, the logical implementation of the philosophy of co-trusteeship. It was at the 15th Session of the Indian Labour Conference for the first time that Nanda, as Labour Minister of the Government of India, brought on the agenda the subject of Joint Management Councils.          

The Principles of Arbitration
            The principle of arbitration is the main plank of Gandhian philosophy. One arbitration is offered, there is no need for a strike. Arbitration eliminates violence and the compulsion which may be present  even in peaceful struggles. Arbitration teaches people tolerance and conciliation. Gandhiji’s fast ultimately was not directed against or for any body. It was for the acceptance of a new way of settling industrial disputes. Both labour and management had love for him; and Gandhiji’s fast was to reform the loved ones on both sides. The erring labour which would ignore its solemn undertaking, the mighty mill owners who would refuse to accept arbitration both had to be corrected; and Gandhiji’s fast served this double purpose admirably.  This epic struggle gave the Indian trade union movement a new technique, viz., arbitration. This led to the foundation of a mighty union, the Textile Labour Association which came into existence early in 1920. Gandhiji not only led the 1918 strike, but also guided the affairs of the Textile Labour Association for a number of years. He was a member of its advisory committee till his death. 
           
Conclusion
Mahatma Gandhiji was the father of trade union movement and even today the industrial workers are suppose  to follow Gandhiji philosophy of non-violence. The present day workers are looking their patience and resorting to ransack the industries where they are working which is a bad sign for industrial growth. Gandhiji is the kingpin for the formation of trade unions in India but totally against violence of the employees. He opted ahimsa and truth which brought independence to our nation the same thing he guided and advised to the workers. In the word of Mahatma Gandhi   “God created man to work for his food and said that those who ate without work were thieves”. ‘Gandhiji espoused  to labour’. Economic equality will come only through hard work, sincerity, devotion, truthfulness and ahimsa.                   
Mahatma Gandhi was a visionary. Mahatma was no fractured vision for world and man. Universality was its fundamental basis, blossoming process and ultimate fruit. As he hoped for India to provide a lead to rest of the world, that is the present globalization. Mahatma Gandhi wanted workers associations in industries  to exhibit unity among themselves and solidarity with the enterprises they formed a part of. Gandhiji told  to Anusuyaben Sarabhai the president of Mazdoor Mahajan, the union of mill workers in Ahmedabad (where many eventful decades previously he had himself launched his first workers campaign), “you have asked for a message for worker’s day   my life is my  message”. 
          He continued the workers have assimilated the teaching of Ahimsa there could be no division of workers and no trace of untouchable. If the worker wants equality with the employer, he should look upon the mill. As his own property and protect it. The workers have to learn more lessons before they can hope to become partners with the original owners of the mills. If they know this let them remember the lesson and march forward.
             

References
  • A.M.Sarma(1996), “Industrial Relations”, Himalaya Publishing House, Mumbai
  • C.S.Venkata Ratnam(2006), “Industrial Relations”, Oxford University Press, New Delhi. 
  • G. Ramanujam (1990), “Indian Labour Movement”, Sterling Publishers Pvt. Ltd, New Delhi
  • K.K.Ahuja(1988), “Industrial Relations”, Kalyani Publishers, New Delhi.
  • S.C.Srivastava ( 1995), Industrial Relations & Labour Laws, Vikas Publishing House Pvt. Ltd, New Delhi.
  • Thomas Vettickal (2002), “Gandhian Sarvodaya: Realizing a Realistic Utopia”, Gyan Publishing House, New Delhi.
  • V.Ramamurthy(2003), “Mahatma Gandhi, The Last 200 Days”, The Hindu, Kasturi & Sons Ltd, Chennai.




Monday, 1 June 2015

Self-Discipline: A Path to HR

Self-Discipline: A Path to HR
Discipline is direction. It is a prevention before a problem arises. It is harnessing and channeling energy for great performance. Discipline is not something you do to others, but something you do for those you care about. It is an act of love. We need to learn from the nature. It is intangible. Discipline signifies orderliness, it does not mean a strict and technical observance of rigid rules and regulations. It is rooted in the psychology of the individual. Discipline is to be nurtured through education and training. Discipline is creation of awareness and formulation of right attitude. Disciple is time management, which helps in effective utilization of time. One of the important aspect of discipline is that it should be self-inculcated. Self-inculcated discipline is the best form of discipline. It does not call for any intervention, supports positive discipline and avoids negative discipline. A self-disciplined individual is more aware and contributes in the growth and development of self. He exploits his potential to the fullest and also saves on individual efforts.    
There are two aspects of discipline viz., positive and negative. First aspect  is ‘Positive Discipline’  is nothing but positive direction. Human resource believe in and support discipline and adhere to the rules, regulations and desired standards of behaviour. Positive discipline takes the form of positive support and reinforcement for approved actions and its aim is to help the individual in moulding his behaviour and developing him in a corrective and supportive manner.  
Second aspect is ‘Negative Discipline’. Human resource sometimes do not believe in and support discipline. As such, they do not adhere to rules, regulations and desired standard of behaviour. As such discipline programme forces and constrains the human resources to obey orders and function in accordance with set rules and regulations through warnings, penalties and other form of punishment.   
The main aim of discipline is to obtain a willing acceptance of rules and regulations of an organization in order to attain the organizational goals. Two different attitudes towards discipline are in action today- the autocratic and democratic. ‘Autocratic method’   of discipline is enforced by constant supervision by the superior and threats of punishment. The trouble with this type of discipline is that it does not take into account the desires of those commanded, it appeals only to the fear motives and not other positive motives and also requires constant supervision. The next method is ‘democratic method’ of discipline. It means as an orderly conduct of affairs by members if an organization who adhere to its regulations even if they desire a harmoniously cooperation within the group and hope that their reasonable wishes are accorded recognition to be brought to reasonable union with the requirements of group in action.

Self-Discipline in the Organizations

The best discipline is self-discipline. Obviously, if employees feel that the rules by which they are governed are reasonable, they will willingly observe them. Rules are respected not for fear of punishment but for their legitimacy. With the development of the human relations approach in industry, increasing attention is being given to employees as individuals. The human relations approach lay emphasis on developing sanctions from within, in contradiction to the traditional viewpoint which believes in controlling the employees from outside. According to the new approach a sense of responsibility is inculcated amongst the employees by means of increased participation, delegation and job enlargement.
            Discipline is required only when all other measures have failed. Management should ideally try to established what has been called ‘positive discipline,’ an atmosphere in which subordinates willingly abide by rules which they consider fair. In such an atmosphere the group may well exert social pressure on wrong-doers and reduce the need for negative discipline. While disciplinary actions involve penalties has dangerous implications, management must fully know when, why, how and to whom the disciplinary  action should be taken. Therefore, this action will gain its purpose with a minimum loss of employee good will. Even when the conduct of an employee deserve punishment, he accepts it with some amount of ill-feeling. However, to forgo punishment when it is due, is to invite trouble and to inflict punishment when it is not due,  is doubly dangerous.
            Many employees prefer an orderly atmosphere to work. If management does not deal effectively with those who violate rules, the disrespect for order will spread to the employees who would otherwise prefer to comply. HRM department people are not “axe men’. HRM department has a heavy responsibility to aid all executives in taking disciplinary action. 
Discipline makes a man in the society. If discipline were practiced in every home juvenile delinquency would be reduced by 95 percent. Discipline gives freedom. Discipline controls mind set and makes the mind set to think  on the right direction. 
            Now, where does this discipline start ? It starts at home. Parents must discipline their children first. It continues in schools and then colleges. When a man completes his education, then who is there to discipline him ? He has to discipline himself. It is known as self-discipline. 
Self-discipline always built character and personality. It helps in increasing effectiveness, efficiency and productivity. It is morale building and preparing the individual to meet upcoming challenges by instilling confidence in him. Imposed self-discipline hardly brings about the desired results. Self-discipline is a must for the success of any people. There are examples of people who have talent and ability but fails in achieving success; it is only due to lack of self-discipline.
            Self-discipline means following a code of conduct or observing some rules and regulations.  Discipline can take two forms, one form is external discipline. This entails following the laws of the land or some norms of a group or society. This type of discipline is imposed on the person, from outside. An individual is supposed to follow these rules and regulations. A violation of these rules generally invokes some kind of punitive action, while meticulously following the same, gives him some benefits.
            The other form of discipline is that which comes from within. The source of this is an individual’s conscience. In this context, an individual due to his high sense of ethics and morals feels the need for voluntary controls and discipline. He feels the need to control his body, his senses and the mind. He tries to conserve the energy within and focus it to achieve the higher spiritual goal. 
            The practice of self-control is often difficult and painful, but ultimately it gives the practitioner great joy. Only this type of self-discipline helps a man build his character and make his personality balanced and integrated. The kind of self-control cannot be achieved unless a man has a high and lofty spiritual goal. This type of individual has a deep concern for others and feels from within. It is a human resource duty to help his fellow beings overcome difficulty. This type of individual feels he should try his level best, to ensure that none of his fellow beings are a victim of poverty or misery. His own happiness depends on the happiness of others. The source of his motivation is the welfare of others. This aspiration of his is untarnished by any desire for reward or compensation.   
            Self-discipline does not kill joy but builds it. We know human resource  with talent and ability and yet they are unsuccessful. They are frustrated. And the same behaviour pattern affects their business, their health, and their relationships with others. They are dissatisfied and blame it on luck without realizing that many problems are caused by lack of self-discipline.

Reference:
  1. Biswanath Ghosh(2007), HRD and Management, Vikas Publishing House Pvt. Ltd. New Delhi.   
  2. L.M.Prasad(2006), Human Resource Management, Sultan Chand & Sons, New Delhi.
  3. Swami Aksharatmananda(2006), Problems and How to Face Them? Sri Ramakrishna Seva Samithi, Bapatla.
  4. Swami Budhananda(2006), Will-Power and Its Development, Advaita Ashrama, Kolkata.
  5. Swami Satyarupananda(2004), Pillars of Prosperity Eternal Values of Management, Shri Sant Gajanan Maharaj, Shegaon.
  6. Shiv Khera(2004), You Can Win, Macmillan India Ltd, Delhi.
  7. V.S.P.Rao(2006), Human Resource Management, Excel Books, New Delhi.
  8. Vikas Shrotriya(2007), Discipline, HRM Review, October, ICFAI University Press, Hyderabad.






Entrepreneurship Among Women: Problems and Prospects

Entrepreneurship Among Women:
Problems and Prospects

Introduction
            Entrepreneurship is considered as one of the most important factors contributing to the economic development of the society. Promotion of entrepreneurship among women is a major step to increase women participation in economic development. Although women constitute half of the total population in the world,  their participation in economic activities are relatively low. For centuries, women became victim of social prejudices and discrimination. Women in traditional societies are still confined to the four walls of their home, children, household affairs and family rituals. In several developing countries marriage and family life is the only career for most women. However, with the increasing empowerment of women in the world, now no job, profession or enterprise is such which women cannot undertake. In recent years women have made their mark in different walks of life and are competing successfully with men despite the social, psychological and economic barriers. This has been possible due to education, political awakening, urbanization, legal safe-guards, social reforms, etc. Women have distinguished themselves in many unconventional fields as Prime Minster, Chief Ministers, Governors, Vice-Chancellors, ambassadors, scientists, pilots, administrators and also as entrepreneurs.
            Entrepreneurship is today a buzzword in the changing economy. It is a purposeful activity initiating, promoting and maintaining economic growth. Entrepreneurship is not new to our culture. What it needs today is to nurture this spirit and instill it in the present and coming generations of both men and women. It is said that if a man starts a business venture he only becomes the entrepreneur, while when a women takes to entrepreneurship the whole family becomes entrepreneurial in its behaviour and outlook. Therefore, if women gain economic strength, they gain visibility and voice. With the economic restructuring and societal acceptance in the modern days, women have started establishing and running enterprises successfully. Though women entrepreneurship is in its infancy and transition period, it is all set to go a long way.    

Women Entrepreneurship in the Global Environment  
         
          In the advanced countries of the world, where the supporting conditions have been favourable  there  is a phenomenal increase in the number of self-employed  women entrepreneurs. There exists a congenial climate for women entrepreneurship in these countries which have witnessed rapid industrial growth. In the United States women entrepreneurs have emerged as the fastest growing group of entrepreneurs. They own 25  percent of all business in the country. In Canada, women own one-third of small businesses and in France it is one-fifth. Women entrepreneurs have been making a significant impact in all segments of the economy in Canada, Great Britain, Germany, Australia and the U.S. However, the growth rate in women owned enterprises in some of the developing countries are higher as compared to the developed countries. The ILO statistics shows a growth rate of 24 percent in Malaysia, 30 percent in Thailand, 36 percent in Philippines and 42 percent in Indonesia. The areas chosen by women are retail trade, restaurants, hotels, education, cultural, cleaning, insurance and manufacturing. The Global Entrepreneurship Monitor (GEM) study has estimated the highest levels and lowest levels of entrepreneurship among women  in different countries during 2002 which can be seen from table  1.

Table 1: Levels of Women Entrepreneurship

Highest Levels
Lowest  Levels
Thailand          (18.5 percent)
Japan                (0.6 percent)
India                (14.1 percent)
Belgium           (1.5 percent)
Argentina        (11.5 percent)
Russia              (1.6 percent)
Brazil              (11.1 percent)
Croatia             (1.8 percent)
China              (11.0 percent)
France              (2.1 percent)
New Zeeland  (10.6 percent)
Hong Kong      (2.3 percent)
Mexico            (10.3 percent)
Spain                (2.6 percent)
China              (9.5 percent)
Sweden            (2.6 percent)
Korea              (8.6 percent)
Singapore         (2.7 percent)
U.S                  (8.1 percent)
Slovenia           (2.9 percent)
               Source: The Global Entrepreneurship Monitor Study, 2003.

Women Entrepreneurship in India  
          Participation of women in entrepreneurial activities in India is comparatively a recent phenomenon. Women participation in entrepreneurship has increased from 4 percent in 1980 to 13 percent in 2000.  Figures relating to 1990 reveal that there are around 1,54,000 women entrepreneurs claiming 9.01 percent of the total 1.70 million entrepreneurs in the country. By 1995-96 this number rose to 2,95,680 claiming 11.2 percent of the total 2.64 million entrepreneurs in India. Economic, social, cultural and psychological factors have not been favourable to entrepreneurship development in India, in general and development of women entrepreneurship in particular. Non-availability of employment opportunities to women in the organized sector, large scale illiteracy among women (46 percent ) compared to their male counterparts (25 percent), their much lower work participation rates (30 percent) and nearly 70 percent of the female population still residing in the rural areas are some of the facts and figures confirming the comparatively disadvantageous position of the Indian women.  
            In India, marriage and family life have been the only career for most women. Even those professionally involved have been confined to selected areas such as teaching, office work, nursing, medicine etc. Rarely they entered professions like business, industry, trade and engineering. However, the modern Indian women especially in the cities are exposed to education and training. Over the years the educated women have become ambitious, acquired basic skills, competency and self-assurance. Experience has shown that women have excelled in the jobs which were hitherto the monopoly of men. However, women entry into business is a recent phenomenon in India and it could be traced out as an extension to their kitchen activities. Spread of education among women and growing awareness about business during the recent past have led to their large scale participation in business activities and their proven capabilities in many sectors. Due to the encouragement given by the government as well as other positive factors, the number of women entrepreneurs is growing but slowly. However, compared to the elite, educated and upper-middle class women especially in the cities and towns, the number of women entrepreneurs belonging to the rural areas is very small. 
             Today women entrepreneurs represent a group of women who have broken away from the beaten track and are exploring new avenues  of economic development. The number of women entrepreneurs have grown over a period of time and it is clear that the percentage is increasing every year. If prevailing trend continues it is not unlikely that in another five years women will comprise about 20 percent of the total entrepreneurial force in India. We find women in different types of industries, traditional as well as non-traditional such as engineering, electronics, ready-made garments, fabrics, handicrafts, doll-making, poultry, plastics, soap, ceramics, printing, toy-making, nurseries, crèches, drugs, textile designing, dairy, canning, knitting, jewellery design, fancy items, beauty parlours etc. Self-motivation, social status, dynastic compliance, natural succession, government incentives and encouragement, fulfilling their own and spouse dreams, inspiration from other’s success, the challenge and adventure to do something new, liking for business, wanting to have an independent occupation and the need for additional income to maintain high living standards are some of the attractive leverage for women to start their own enterprises.

Successful Women Entrepreneurs:
             It is interesting to note that since the inception of the national awards to small entrepreneurs instituted in 1983, ten women entrepreneurs have  received special recognition awards from the Government of India. The 25 leading women entrepreneurs in India in 2004, according to the study made by Business Today is presented in table 2. These 25 individuals lend credence to the fact that it is not just the idea which is required to be successful. They thrived in an environment that was conducive to and nurturing of the entrepreneurial spirit. These women entrepreneurs have attributed their success in their enterprise to hard work, dedication, determination, and self-confidence. Most important factor is their compelling urge of wanting to do something positive to prove themselves.


Table 2: The 25 Leading Women Entrepreneurs in India
1
Amrita Patel(60)
Chairperson, National Dairy Development Board
2
Anu Age(62)
Chairperson, Thermax
3
Chanda Kochhar(42)
Executive Director, ICICI Bank
4
Dipti Neelakantan(46)
Chief Operating Officer, J.M. Morgan Stanley
5
Gita Piramal(50)
Managing Editor, Smart Manager & Director, Corp. Comm., Blow Plast
6
Hema Ravichandar(43)
Senior Vice-President and Group Head, HRD, Infosys Technologies
7
Kalpana Morparia (55)
Deputy Managing Director, ICICI Bank
8
Kavita Hurry (42)
Managing Director, ING Vysya Mutual Fund
9
Kiran Mazumdar-Shaw (51)
Chairperson and Managing Director, Biocon
10
Lalita Gupta(55)
Joint Managing Director, ICICI Bank
11
Madhabi Puri Buch(38)
Country Head, Operations & Service Delivery, ICICI Bank
12
Mallika Srinivasan(44)
Director, Tractors and Farm Equipment
13
Naina Lal Kidwai(47)
Deputy CEO, HSBC
14
Preetha Reddy (47)
Managing Director, Apollo Hospitals Group
15
Priya Paul(38)
Chairperson, Apeejay Surrendra Park Hotels
16
Renu Karnad(52)
Executive Director, HDFC
17
Renuka Ramnath(43)
CEO, ICICI Venture
18
Shobhana Bhartia(47)
Vice-Chairperson, The Hindustan Times
19
Shikha Sharma(46)
CEO, ICICI Prudential Life Insurance
20
SulajjaFirodia Motwani  (34)
Joint Managing Director, Kinetic Engineering
21
Sunita Narain(43)
Chairperson, Centre for Science and Environment
22
Swati Piramal (48)
Head, Strategic Alliances and Comm., Nicholas Piramal
23
Vedika Bhandarkar(36)
MD & Head, Investment Banking, J.P. Morgan India
24
Vidya Chhabria(54)
Chairperson, Jumbo Group
25
Zia Mody (48)
Corporate Lawyer, AZB & Partners
Source: Business Today, September, 2004.
Note:     Name’s are mentioned in alphabetical order and figures in parenthesis indicates
              age of women entrepreneurs.  



Problems of Women Entrepreneurs
            The basic problem or difficulty of a women  entrepreneur is that she is a woman. This pertains to her responsibility towards family, society and work. The attitude of society towards her and constraints in which she has to live and work are not very  conducive.  The attitude of men is  not only tradition-bound but even of those who are responsible for decision making is not of equity.  This attitude of reservation creates difficulties and problems to women entrepreneurs at all levels, i.e.,  family support, training, banking, licensing and marketing. Research investigation states women’s experiences of starting and running business that although their motivations are very similar to those of male entrepreneurs, many of the barriers and constraints that they experience are gender specific.
            Women entrepreneurs encounter two types of problems in setting-up and running their enterprises. Firstly, they face the general problems, faced by all entrepreneurs and secondly, the problems specific to women. The general problems relate to raw materials, operations, marketing, finance, infrastructure, manpower, promotional procedures, difficulties in availing government concessions and subsidies etc. Problems specific to women are lack of economic independence and autonomy, family ties and responsibilities, social attitudes, less risk-bearing capacity, low access to government support, feeling of insecurity, poor managing ability, lack of education, lack of technical   skills, lack of sufficient business training, lack of business information and experience etc. Some of the problems have been overcome by women entrepreneurs due to the technological advancement and information technology explosion. However, along with the technological and IT revolution, mental revolution of the society is required to provide a democratic platform for women entrepreneurship.    

Prospects of Women Entrepreneurs
            The women entrepreneurship movement has taken-off the ground and it is felt that the movement has crossed the stage of transition. It is only during the last 15 years, women have started becoming entrepreneurs and started industries and business and they are yet to go a long way to be on par with men. The new industrial policy of Government of India has stressed the need for conducting special entrepreneurship programmes for women. Product and process-oriented courses are to be conducted to enable women to start small scale industries. The policy further adds that the objective of such courses  should be to give representation to women in the field. So, small industry development is a step to uplift women entrepreneurs status in the economic and social fields. The new industrial policy concedes that merely making large resources allocation for women within the prevailing pattern and structure of development would not yield the desired results. The policy has the strategy for the holistic development of women.
            In India, several institutional arrangements have been made to protect  and develop women entrepreneurship. The nationalized banks and State Financial Corporations advance loans to women entrepreneurs on preferential basis. State Industrial Development Corporations and District Industrial Centres provide loans, subsidies and grants to small scale women entrepreneurs. State level agencies assist women entrepreneurs in preparing project reports, purchasing machinery, hiring of buildings and training staff. The Ministry of Industry has taken the initiative to train one lakh women entrepreneurs to take up trade related activities in six selected project lines such as processed food, forest produce collection, leather, ready made garments and coir.
             With the growth of women entrepreneurs a few associations of women entrepreneurs have been set-up both at international and national levels to create a congenial environment for developing women entrepreneurship in rural and urban areas. Some of the associations of women  entrepreneurs in India are Women Entrepreneurs Wing of NAYE, Indian Council of Women Entrepreneurs, FICCI Ladies Organization  (FLO), National Commission on Self-Employed Women in the Informal Sector, World Association of Women Entrepreneurs (WAWE) and Associated Country Women of the World (ACWW). In addition to the above, there are State level associations of women entrepreneurs.

Government Initiatives
          The Government of India has been encouraging self-employment and has started several schemes to promote entrepreneurship among women. Various income generating schemes like Support to Training and Employment Programme (STEP), Swavalambana Socio-Economic Programme, Pradhan Mantri Gram Swarozgar Yojana, Pradhan Mantri Shahri Swarozgar Yojana, Jana Shikshan Sansthan (JSS) etc. have been launched to this end. Women are encouraged to organize and form Self Help Groups (SHGs) and Cooperatives which undertake activities to generate income for the most vulnerable groups of women. Rastriya Mahila Kosh (RMK) was set up to provide loans to these women who could then become self employed by establishing their own business or small scale enterprises.  Women’s Development  Corporations, operating in a few States in India are promoting entrepreneurship among women at the gross root level. In this way, women at the gross roots and other levels, who are managing small-scale industries and enterprises are becoming economically empowered.    
            Government  Policy since 2004 is giving more emphasis to SSI units and many easy and innovative schemes are launched through commercial banks / financial institutions to promote women entrepreneurship.
Ø  Promoter’s equity / margin are reduced for women
Ø  Concession in rate of interest is provided
Ø  Seed capital schemes like National Equity Fund Scheme, wherein interest free equity type of assistance upto 25 percent of project cost is provided.
Ø  Self Help Groups special schemes are available for women to start SSI units, with public sector banks extending concessional rate of interest and low margin and longer repayment period.
Ø  The Small Industries Development Bank of India (SIDBI) has special schemes for financial and managerial assistance for women entrepreneurs which are opened through State Financial Corporations(SFC’s), State Industrial Development Corporations (SIDC’s), Commercial Banks, State Cooperative Banks and Regional Rural Banks.  SIDBI refinances these institutions to the extent of the assistance they provide. SIDBI’s  Mahila Udyan Nidhi (MUN) is operated through commercial banks exclusively for women to set up SSI units and to start service activities.
Ø  Bank of India’s Priyadarshini Yojana provides long term and working capital assistance to the women entrepreneurs.
Ø  Industrial Development Bank of India’s (IDBI)  Mahila Vikas Nidhi (MVN) Scheme provides seed capital assistance to women entrepreneurs intending to set up projects in SSI sector.  
Ø  State Bank of India’s Stree Shakti package to develop entrepreneurship among women, conducting Entrepreneurial Development Programmes (EDP) for women and providing financial assistance to them. 
Ø  Women entrepreneurs are also eligible for finance under the government and non-government organizations sponsored programmes such  as Prime Minster’s Rozgar Yojana (PMRY), Self Employment Programme for Urban Poor (SEPUP), Integrated Rural Development Programme (IRDP), Federation of Societies of Women Entrepreneurs (FSWE), Development of Women and Children in Rural Areas (DWCRA), Training of Rural Youth for Self Employment (TRYSEM) etc.           


Conclusions

Today there is a greater awakening among women. They have become more achievement-oriented and career-minded. Given an opportunity, they will deliver the results. In education, they have not only excelled but also became the top rankers. In office and industry, they have shown brilliant results. The need of the hour is to provide an opportunity for women entrepreneurs, free from gender differences. On their own, Indian women entrepreneurs with a determined effort should overcome their physical and psychological shortcomings and then they can fight with the social taboos imposed upon them. They must be ready to take-up new ventures and new responsibilities. Infact, by nature women are gifted with super qualities like good communication skills, generosity, commitment to work, stress-bearing capacity and adaptation to the changing environment. They have the potential and the will to establish and manage enterprises of their own. What they need to excel in their role as an entrepreneur is encouragement and support. 
            Promotion of women entrepreneurs requires a multi-pronged approach. Women should be motivated to come out of their traditional occupation for accepting more challenging economic activities. Concurrently, an environment should be prepared by the government and non-government agencies to enable their participation. The elaborate procedure of licensing and government sanction for establishing a new business enterprise should be dispensed with, in case of women entrepreneurs. The promotional and regulatory agencies should also be motivated to be considerate, understanding and helpful to women entrepreneurs. In more explicit terms, banks and other financial institutions must provide credit to women entrepreneurs on both priority basis and concessional  terms. Appropriate training, tax concessions, market subsidies,  low interest rates etc., are some of the push factors which help women to reach the mainstream of national economy.  These suggestions, if implemented in right earnest will certainly contribute for the development of entrepreneurship  among Indian women.
            With corporates eager to associate and work with women-owned businesses and a host of banks and non-governmental organisations (NGOs) keen to help them get going, this is a very good time for women with zeal and creativity to start their own business.   While some of the women entrepreneurs have demonstrated their potential, the fact remains that they are capable of contributing much more than what they already are. In order to harness their potential and for their continued growth and development, it is necessary to formulate appropriate strategies for stimulating, supporting and sustaining their efforts in this direction. Such a strategy needs to be in congruence with field realities and should especially take cognizance of the problems women entrepreneurs face within the current system. If family members, government and non-government agencies assist and encourage women in this mission there is no doubt to affirm that today’s Indian women entrepreneurs will play dominant role in making India number one globally tomorrow.



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