Chapter 2: Women Entrepreneurship

Brief Answer Questions

1.  Mention any four problems of women entrepreneurship. [2]

 The four problems of women entrepreneurship are mentioned as follows:

• Lack of finance
• High competition
• Limited mobility
• Lack of skill and education

2. Define women entrepreneurship.

 Women entrepreneurship is the process, where women organize all the factors of production, undertake, risks and provide employment to others. In other words, women entrepreneurship is an economic activity of those women who think of a business enterprise, initiate it, organize and combine the factors of production, operate and handle the enterprise undertaking risks.

3. Write any two issues to be considered in fostering women entrepreneurship.

They are listed below:

• Government rules, regulations, and policies
• Enhancement of entrepreneurial role of women

4. Define women empowerment.

 Women empowerment refers the process of enhancing women with rights and powers so that they can play a major role in the development of the society. Women empowerment enables women to make choices regarding their like and interest.

5. Write how women entrepreneurship and empowerment are related to each other.

The relationship between women entrepreneurship and empowerment is highlighted through the following points.

• Entrepreneurship promotes economic independencies of women.
• Entrepreneurship promotes gender equality.
• Entrepreneurship improves quality of life of women.
• Entrepreneurship develops leadership ability of women.

6. Write any two success factors of women entrepreneurship.

They are enlisted as follows:

• Women empowerment through education and training
• Financial support policy

Descriptive Answer Questions

1. Explain the problems of women entrepreneurship in Nepal.

The key problems faced by women entrepreneurs in Nepal are discussed as follows:

• Lack of finance: One of the critical resources essential for initiating all kind of enterprises is finance. Be it acquiring raw materials, machineries, human resources, etc. Finance is a pre-requisite. In this regard, there should be adequate finance to initiate and run entrepreneurial venture. However, women entrepreneurs usually face the problem of funding. Nepalese women usually rely on personal assets and saving. Moreover, majority of properties are owned by their male counterpart. As such, they lack collateral for borrowing. Moreover, financial institutions often deem them less worth for loan. Hence, every time they try to establish entrepreneurial venture; finance becomes the major stumbling block.
• High competition: Women entrepreneurs have limited capital. The entrepreneurial ventures they establish are usually small in size. Due to this, it becomes hard for them to maintain economies of scale. Moreover, they cannot manage the marketing campaigns efficiently. Due to these, they have to face high competition.
• Limited mobility: As compared to male, the mobility of women is far below in Nepal. The male dominated society; the responsibility of the family; complex social structure, etc. hinders their ability to roam freely. As such: staying out of home for a longer period, staying alone in the far place, travelling alone, visit all area, etc. becomes pretty much tough. This limited mobility in their day to day activities is another major problem faced by women entrepreneurship in Nepal.
• Lack of skill and education: When a boy is busy studying; a girl is busy washing clothes, cooking food or bringing water. Although the situation is improving in urban areas; the overall situation all over Nepal is pretty bleak. Education and skills still are a secondary entity for women. Even if they get an education, it is mostly confined to few sectors such as nursing, personal care, hospitality, etc. Women thus lack skill and education to excel in the majority of entrepreneurial sector.
• Low risk bearing capacity: In Nepal, father and brother provide protection to the women before marriage. Likewise, husband protects her after marriage. Due to which they are insulted from external pressure at every stage of their life. Due to this they have low risk bearing capacity and can’t handle pressure and moment of stress. Since risk bearing capacity is an integral entrepreneurial trait, it again is a major problem for them.

2. State and explain the future challenges of women entrepreneurs in Nepal.

Future Challenges of Women Entrepreneurs in Nepal

There is no doubt that significant progress has been made by women in the field of entrepreneurship that was once considered to be a man’s domain, yet many challenges remain intact that will obstruct women entrepreneurship in upcoming days. A few probable future challenges of women entrepreneurship are explained as follows:

• Financing and credibility: Access to finance was, is and will still be a major challenge for women entrepreneurs. Trust factor; property ownership issues; limited mobility; cultural barriers; few successful women entrepreneurs, etc. will still make the prospect of generating fund difficult.
• Building a support network: The high-level government sector; political sector and business world in dominated by men show no sign of changing. In such scenario, it is tough for probable women entrepreneurs to develop a support network that supports their entrepreneurial endeavour.
• Balancing business and family life: Nepal since ages has been a a. patriarchal society. The responsibility of taking care of the families lies on the shoulders of women. So, even if they think of becoming an entrepreneur their responsibility towards family doesn’t decrease. In fact, they need to do the balancing act of their entrepreneurial venture and family. Managing these dual responsibilities with aplomb will remain a major challenge for women entrepreneurs in future.
• Being decisive: Decision making is one of the most critical elements essential to be an entrepreneur. Women still find extremely tough to take decision promptly. The cause behind this difficulty may be due to lack of information, a multiplicity of orientation, roles, and responsibilities. This situation will not change by miles very soon. Thus, being decisive regarding entrepreneurial activities will be a major challenge for women.
• Lack of role models: When you have someone to look forward to, it gives you motivation, courage, morality, etc. to carry your work. Unfortunately, the number of role models that a woman can look forward to in her quest to be an entrepreneur is very low and it seems that scenario would change much. As such, the road towards entrepreneurship becomes tough without someone to be inspired.

3. Define women entrepreneurship and write the issues to be considered to foster women entrepreneurship.

Women Entrepreneurship

Women entrepreneurship is the process where women organize all the factors of production, undertake risks and provide employment to others. In other words, women entrepreneurship is an economic activity of those women who think of a business enterprise, initiate it, organize and combine the factors of production, operate and handle the enterprise undertaking risks.

Issues to be Considered in Fostering Women Entrepreneurship

The primary issues be considered in fostering to entrepreneurship are discussed below: women

• Favourable policies and regulations: It is imperative that policies and regulations that promote women entrepreneurs are formulated. The government must ensure that women must not be discriminated in any way regarding laws and regulations. The government must improve the regulatory environment and ensure that there is gender equality.
• Enhancement of entrepreneurial role of women: Women entrepreneurial activities are often considered to be informal and not deemed to be of real substance. Women start entrepreneurial venture for fun or when they face adversity in life. In such scenario, it is important that women entrepreneurial activities are scaled up to take it to the formal sector of the economy. More and more public-private partnership, systematic leverage, etc. should be taken into consideration.
• Removal of barriers: Women’s entry to entrepreneurial activities has been extremely difficult in Nepal. In the name of society reluctance to provide finance, mobility, etc., women have always suffered. Moreover, lack of education, skill, and confidence has hindered their progress. As such, the focus should be on eliminating discriminatory norms and belief.
• Enhancement of competitiveness: It is essential that women’s access to Lite business development services, technologies and finances is promoted and increased. Moreover, a strong education and training system that enhances and nurtures competitiveness related to innovation and enterprising attitudes must be encouraged.
• Managing environmentally sustainable business: Women must be provided the financial and non-financial resources, incentives, etc. to make them well-acquainted with environment-friendly sustainable business.

4. What do you mean by women empowerment? Why is it needed? Write.

Women Empowerment

To Empowerment is the ability of an individual to make choices regarding his or her life. Empowerment is one of the most important factors that contribute towards the development of the society and humankind. In the same line, empowerment that enables women to be aware of where they are going; what their position is in the society; their status; existence and rights, etc. is known as women empowerment. Women Empowerment is the act of equipping the women with rights and powers so that they can play a significant role in the society. Until and unless women are not empowered, a society can not progress. It is thus imperative that every single woman of a country is empowered so that they take the country forward. The United Nations has established seven women empowerment principles which are listed below:

• Develop high-level corporate leadership for gender equality.
• Treat all women and men fairly at work.
• Respect and support human rights and non-discrimination.
• Ensure the health, safety, and well-being of all women and men workers.
• Implement enterprise development, supply chain and marketing practices that empower women.
• Promote equality through community initiatives and advocacy.
•  Measure and publicly report on progress to achieve gender equality.

Need for Women Empowerment

The primary need of women empowerment is listed as follows:

• Women empowerment helps to build strong economies.
• Women empowerment plays a significant role in establishing societies that are stable.
• Women empowerment assists government to achieve internationally agreed goals for development, sustainability, and women rights.
• Women empowerment is required to improve the quality of life for women, men, families, and communities.
• Women empowerment acts as a catalyst that propels operations and goals, of business.
• Women empowerment is imperative in fostering a network of women which widens their horizon.

5. Write the provisions for women entrepreneurs in the industrial policy, 2010.

Provisions for Women Entrepreneurs in the Industrial Policy, 2010

The government of Nepal slowly but steadily is putting efforts for women empowerment. The industrial policy 2010 is one such step. The industrial policy, 2010 has many provisions that aim to foster the women entrepreneurs in Nepal. A few special provisions for women entrepreneurs in the industrial policy, 2010 are discussed below:

• Involvement of women in policy formulation: Nobody understands the necessity of women better than the women themselves. Keeping that in mind, the industrial policy, 2010 has made it compulsory to involve women in the formulation of policy related to industrial enterprises.
• Provision of group loan: Generating finance always has been a major problem for women entrepreneurs. Industrial policy 2010 has directed the banking and cooperative institutions to provide loans in simple and easy manners to women opting to establish cottage and small scale industry.
• Exemption of registration fee: As per the policy, women are provided an exemption of 35% in the registration fee if an industry is registered in their name.
• Special priority: As per the policy, women will be given special priority and will be assisted in establishing an industry in an industrial district.

Analytical Answer Questions

1. Define women entrepreneurship. How does it contribute to national development? Write.

Women Entrepreneurship

Women entrepreneurship is defined as the process whereby women organize all their factors of production, undertake risks and provide employment to others. In other words, women entrepreneurship refers to economic activity initiated, organized, managed and controlled by women. Slowly and steadily, women entrepreneurship is gaining prominence in a country like Nepal. Many women have shown that entrepreneurship is not only the function of males and they can equally be successful.

Contribution of Women Entrepreneurship to National Development

The development of any country depends on the contribution of its citizens. As one of the largest elements of citizen; women are an irreplaceable component of every society and country. Every endeavour of them has a significant impact on the society and the nation. In this reference, the contribution of women entrepreneurship to national development is discussed as follows:

• Build Strong Economy: Entrepreneurial activities be it helmed by men or women primary primarily aims to form capital and generate employment opportunities. When the scattered capital is collected and utilized in employment generation activities, it has a cyclic effect. It means the capital generated through employment is again utilized in creating further employment opportunities. All these help to build a strong economy that drives the country forward.
• Establish More Stable Societies: Men and women are considered to be two wheels of a chariot. Both the wheel needs to be same for a chariot to move smoothly. Same holds true for society. A society can be stable when both men and women counterpart are equal in every way. In a male dominated society like Nepal, women empowerment becomes crucial to minimize the gap between men and women. When women become empowered, it leads towards the establishment of a stable society. A stable society is the first base for national development.
• Improve Quality of Life: When women are empowered, it leads to the improvement of there life which further helps to improve the quality of life of men, families, communities too. A rise in quality of life creates an environment for prosperity and forwardness. In this regard, women empowerment plays a significant role in national development.

2. What are the problems that women entrepreneurs are facing in Nepal? How these problems may be solved? Give your view.

Problem Faced by Women Entrepreneurs in Nepal

The key problems faced by women entrepreneurs in Nepal are discussed as follows:

5. Lack of finance: One of the critical resources essential for initiating all kind of enterprises is finance. Be it acquiring raw materials, machineries, human resources, etc. Finance is a pre-requisite. In this regard, there should be adequate finance to initiate and run entrepreneurial venture. However, women entrepreneurs usually face the problem of funding. Nepalese women usually rely on personal assets and saving. Moreover, majority of properties are owned by their male counterpart. As such, they lack collateral for borrowing. Moreover, financial institutions often deem them less worth for loan. Hence, every time they try to establish entrepreneurial venture; finance becomes the major stumbling block.
6. High competition: Women entrepreneurs have limited capital. The entrepreneurial ventures they establish are usually small in size. Due to this, it becomes hard for them to maintain economies of scale. Moreover, they cannot manage the marketing campaigns efficiently. Due to these, they have to face high competition.
7. Limited mobility: As compared to male, the mobility of women is far below in Nepal. The male dominated society; the responsibility of the family; complex social structure, etc. hinders their ability to roam freely. As such: staying out of home for a longer period, staying alone in the far place, travelling alone, visit all area, etc. becomes pretty much tough. This limited mobility in their day to day activities is another major problem faced by women entrepreneurship in Nepal.
8. Lack of skill and education: When a boy is busy studying; a girl is busy washing clothes, cooking food or bringing water. Although the situation is improving in urban areas; the overall situation all over Nepal is pretty bleak. Education and skills still are a secondary entity for women. Even if they get an education, it is mostly confined to few sectors such as nursing, personal care, hospitality, etc. Women thus lack skill and education to excel in the majority of entrepreneurial sector.
9. Low risk bearing capacity: In Nepal, father and brother provide protection to the women before marriage. Likewise, husband protects her after marriage. Due to which they are insulted from external pressure at every stage of their life. Due to this they have low risk bearing capacity and can’t handle pressure and moment of stress. Since risk bearing capacity is an integral entrepreneurial trait, it again is a major problem for them.

Solving of Problems Related to Women Entrepreneurs

It is imperative that for a nation to move forward and progress, women must succeed in their entrepreneurial ventures. It can only be possible when the problems related to women entrepreneurs are solved. For this, the focus should primarily be on the following factors.

• Women empowerment through education and training: When you are educated it provides you the ability to make choices regarding your likes and interest. When it enables them to gain skill, it increases their self-confidence, Development of all these attributes help women entrepreneurial venture. to believe in them and initiate
• Financial support policy: Generating fund has been a major stumbling block for women in their attempts to be entrepreneurs. It is thus important that a financial support policy comprising’ NGOS, banks, financial institutions, etc. that encourages women entrepreneurs is established. Moreover, these institutions must encourage women in their endeavour to establish business start ups.
• Building a support network: Every enterprise needs a support network to thrive and grow. In Nepal, the high business world, government periphery, etc. are dominated by men. In such situation, women find difficulty to make connections. It is thus imperative that an efficient support network that support and assists women in every step of their entrepreneurial journey should be build.
• Social support: Society from ages has proved to be the major stumbling block for women trying to progress. Women entrepreneurs can flourish when the society showers positively on every little effort made by women. The society must change its attitude towards women entrepreneurship and support it.