Page 71 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes This environment has an impact on all enterprises, large and small, run by both women and
men. There is much evidence to indicate that women are at a more disadvantageous position
compared to men in terms of the opportunities and barriers arising from these structures and
dynamics. It is partly because women’s ability to bargain in the labor market, as in other arenas,
critically affected by predominant gender ideology and practices.

Self Assessment

Fill in the blanks:
5. In many countries women experience an unequal ………… relationship with men.
6. Organizations tend to militate against women and their …………….. empowerment.
7. Male ……………….. and dominance also weakens women’s extra household bargaining
power.
8. There is a lack of ……………….. about women’s concerns and insensitivity towards gender
issues.

5.3 Challenges in the Path of Women Entrepreneurs

The problems and constraints experienced by women entrepreneurs have resulted in restricting
the expansions of women entrepreneurship across the world. The major barriers encountered
by women entrepreneurs can be consolidated as:

5.3.1 Lack of Confidence

Women generally lack confidence in their own capabilities. Having accepted a subordinate
status for long, even at home, members of the family do not appear to have total confidence in
their abilities and in their decision making capacities.
Society in general also lacks confidence on women’s strength, traits and competence. This is
quite apparent in the family’s reluctance to finance a woman’s venture, bankers are reluctant to
take risks on the projects set by women, and individuals are unwilling to stand guarantee for
loans to women.

5.3.2 Problems of Finance and Working Capital

Another problem faced by women entrepreneurs is lack of access to funds because they do not
possess any tangible security and/or other assets. Since women do not enjoy right over property
of any form, they have limited access over external sources of funds.

!

Caution Women entrepreneurs face serious problems in obtaining working capital for
financing day-to-day operations of the enterprises, including purchase of raw materials,
meeting pay rolls. The chronic shortage of working capital leaves women entrepreneurs
extremely vulnerable to competition and other emergencies.
This situation needs to be improved with time and women entrepreneurs must get their financial
freedom.

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