• Corporate / Business TECHNOLOGY

IIT Madras Researchers find “Market Opportunity” & “Necessity” as significant factors driving Women Entrepreneurs in Tamil Nadu This study was conducted from September to December 2019 among women entrepreneurs representing MSMEs in Tamil Nadu, which has the maximum number of women entrepreneurs, according to the 6th Economic Census (2016)  

• nationalherald
• December 1, 2021

by Prashant Kapadia /NHN

CHENNAI November 2021: Indian Institute of Technology Madras Researchers have found that a majority of Women Entrepreneurs in Tamil Nadu are driven by a combination of pull such as “Market Opportunity” and push factors such as “Necessity.” Economic motivations are not the primary reasons to venture into entrepreneurship.

The researchers conducted a study to understand why and how women entrepreneurs chose their path into entrepreneurship and continue along their path. According to the All India report of Sixth Economic Census (2016), Tamil Nadu had the maximum number of women-owned enterprises with at least one hired worker in India. The study was conducted in Tamil Nadu by interviewing women entrepreneurs between September and December 2019.

The factors that were found to motivate women entrepreneurs to get into business were:

Ø  Passion, impulse to create something new, an affinity for challenges, creation of social values,

Ø  Desire for work-life balance,

Ø  Social support (from the spouse and family), and

Ø  Institutional support (such as government aid and subsidies).

Dr. Rupashree Baral, Associate Professor Department of Management Studies, IIT Madras, conducted the study with Ms. Jasmine Banu, Doctoral Scholar, Department of Management Studies, IIT Madras. The findings were published as a research paper in the peer-reviewed journal Journal of Enterprising Communities: People and Places in the Global Economy (https://doi.org/10.1108/JEC-12-2020-0206)

Highlighting the need for such studies, Dr. Rupashree Baral, Associate Professor Department of Management Studies, IIT Madras, said, “Women’s entrepreneurship is a major step contributing towards the nation’s economy, innovation, growth, and quality of life. Considering the important role of women entrepreneurs in socio-economic development, it is critical to investigate the factors that motivate, facilitate, and constrain women’s entrepreneurial activities. Such an investigation is likely to foster the well-being of women entrepreneurs, and develop better initiatives, policies, and programs towards nurturing a conducive environment for women entrepreneurs and reduce the gender gap in society.”

The researchers found that various factors that helped women entrepreneurs in Tamil Nadu to survive and grow in their business include their ability and experience, networking opportunity, support from family, and institutional support.

Although income and profit are usually low, the women entrepreneurs said they were satisfied and showed confidence in continuing the business. According to this study, most women entrepreneurs stated that having a business gave them a sense of accomplishment, financial security, career satisfaction, flexible working hours, and a sense of happiness to have the opportunity to influence others’ well-being.

Elaborating further, Ms. Jasmine Banu, Doctoral Scholar, Department of Management Studies, IIT Madras, said, “Women entrepreneurship needs to be encouraged by the Government, policymakers, practitioners, and academicians. Appropriate policies and incentives must be made available to encourage more women to start and pursue businesses in micro and small-scale sectors. They must be trained, and their skills must be developed so that they can achieve greater entrepreneurial heights.”

Other key findings:

Ø  The growth of women-run businesses is significantly dependent on the individual’s social support and formal institutional support.

Ø  Entrepreneurship enhances the quality of life, mental health, and well-being of women.

Recommendations of the study:

Ø  Provide women entrepreneurs with personality development, skills training, unique technical and entrepreneurship development programs

Ø  Ensure representation in trade fairs to connect them with potential customers

Ø  Change society’s attitude towards women by portraying women’s entrepreneurial endeavours in media, educational and academic literature

Among all the states in India, Tamil Nadu is the one that has the maximum number of women entrepreneurs. The conducive economic, socio-cultural context of the state and educational opportunities contribute to the number of women-owned enterprises in this state.

ABOUT IIT MADRAS: Indian Institute of Technology Madras (IITM) was established in 1959 by the Government of India as an ‘Institute of National Importance.’ The activities of the Institute in various fields of Science and Technology are carried out in 16 academic departments and several advanced interdisciplinary research academic centres. The Institute offers undergraduate and postgraduate programmes leading to B.Tech., M.Sc., M.B.A., M.Tech., M.S., and Ph.D., degrees in a variety of specialisations. IITM is a residential institute with more than 600 faculty and 9,500 students. Students from 18 countries are enrolled here. IITM fosters an active entrepreneurial culture with strong curricular support and through the IITM Incubation Cell.

IITM has been ranked No.1 in the ‘Overall’ Category for the third consecutive year in India Ranking 2021 released by National Institutional Ranking Framework, Ministry of Education, Govt. of India. The Institute has also been ranked No.1 in the ‘Engineering Institutions’ category in the same Rankings for six consecutive years – from 2016 to 2021. It was also adjudged as the ‘Top innovative Institution’ in the country in Atal Ranking of Institutions on Innovation Achievements (ARIIA) in 2019 and 2020. ARIIA Ranking was launched by the Innovation Cell of Ministry of Education.

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