Globalization Its Mechanism And Opportunities For Women Entrepreneurship Economics Essay

Globalization Its Mechanism And Opportunities For Women Entrepreneurship Economics Essay Globalisation has provided opportunities for women enterpreneurship in the field medicine, hospitality, computer software and information technology, beauty and healthcare, sports, food, fruits and vegetable processing, banking, event mangement etc. Some of the famous enterpreneurs are Kiran Mazumder Shaw of Bicon, Lalitha Gupte, Head of HSBC, Vandan Luthra and Shahnaz Hussian in the field of beauty and health care.In this dynamic world, women entrepreneurs are an important part of the global guest for sustained economic development and social progress. In advanced countries, there is a phenomenon of increase in the number of self-employed women, after the world war two. In USA women own 25% of all business ,though their sales are on an average are less than two-fifths of those of other small business. In Canada, women own one-third of small business and in France it is one-fifth. In the closing years of the 21st Century, multi skilled, productive and innovative women entrepreneurs are inextricable for achieving susained economic growth. Globalisation can be a major force for prosperity only if it is backed by adequate national policies and condusive social and economic environment for women.Nowadays ,women are well- educated with technical and professional qualifications. Many of them have medical ,management and similar degrees and diplomas.Many have entered family business as equal partners.Women set up their own clinics or nursing homes ,small boutiques,small manufacturing enterprise and entered garment exports. Keywords- Women Entrepreneurship,Globalisation,Opportunities,Economy. Introduction- Globalisation describes a process by which regional economies, societies and cultures have become integrated through a global network of communication, transportation and trade. The term is sometimes used to refer specifically to economic globalisation, the integration of national economics, the integration of national economics into the international economy through trade, foreign direct investment capital flows, migration and the spread of technology. The term can also refer to the transnational circulation of ideas, languages or popular culture through acculturation. Globalisation leads to an expanding global and national economy. It is a process which tends to increase the interdependence, intergration and links between economics of varous nations. Foreign Direct Investment flows over the years have contributed to the increased economic integration, globalisation process on a world wide level. The economic development in India followed a socialist inspired policies for most of its independent history including state ownership of many sectors, extensive regulations and red tape known as Licence Raj and isolation from the world economy. Since the mid 1980s India has slowly opened up its market through market liberalization. After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy. In the late 2000s Indias growth has reached 7.5% which has double the average income in a decade. Globalisation was offshoot of this liberalisation and privatisation, which integrated the Indian economy with the world economy. This integration provided lot of opportunities for Indians especially for women, who through their education and new-found independence could take up enterpreneurial activity. Economic reforms introduced after 1991 brought foreign competiton, led to privatisation of certain public sector industries, opened up sectors reserved for the public sector and let to an expansion in the production of fast moving consumer goods. Post liberalisation, the Indian private sector which was usually run by oligopolies of old family firms and required political connections to run, faced with foreign competitions including the threat of low cost Chinese goods. With globalisation the services industry grew rapidly giving ample opportunities to women to start entrepreneurial activity as traveling agent, internet cafà © owners, as owners of Business Process Outsoucing(BPO) units, garment factory owners etc. Globalisation has provided opportunities for women enterpreneurship in the field medicine, hospitality, computer software and information technology, beauty and healthcare, sports, food, fruits and vegetable processing, banking, event mangement etc. Some of the famous enterpreneurs are Kiran Mazumder Shaw of Bicon, Lalitha Gupte, Head of HSBC, Vandan Luthra and Shahnaz Hussian in the field of beauty and health care. In this dynamic world, women entrepreneurs are an important part of the global guest for sustained economic development and social progress. In advanced countries, there is a phenomenon of increase in the number of self-employed women, after the world war two. In USA women own 25% of all business ,though their sales are on an average are less than two-fifths of those of other small business. In Canada, women own one-third of small business and in France it is one-fifth. In the closing years of the 21st Century, multi skilled, productive and innovative women entrepreneurs are inextricable for achieving susained economic growth. Globalisation of industrial production and economic independence have become the torch bears for all international co-operations. In the dynamic world which is experiencing the effects of globalisation, privatisation and liberalisation, women entrepreneurs are likely to become an even more important part of the global quest for sustained economic growth and s ocial development. Their economic status is now accepted as an indication of the societys stage of development. Though the opening up of market in 1991 provided a much needed boost to the Indian Economy, its effect on women entrepreneurs are debatable. Globalisation, a process whereby owners of capital are able to invest more their capital around the globe more quickly and easily has resulted in the removal of state controls on trade and investment, disappearence of tariff barriers and spread of new information and communication technologies. The opportunities created by globalisation have created new avenues for investment and have opened doors of opportunities, but the benefits have not been equitably distributed thereby impending efforts to promote advancement of women particularly those living in proverty. The gains of globalisation have been concentrated in the hands of better off women with higher levels of education and greater ownership of resources and access to capital. But the majority of women being poor have not received the benefits of globalisation. Due to entry of multinational companies the local markets traditional women enterpreneurs have received stiff competition. The small enterprises like boutiques, tailoring vegetable vending have been adversely affected. Thus globalisation an one hand has empowered women to own big enterprises like Biocon, VLCC, etc on the other hand it has adverse effect an economically backward women-owned enterprises. Literature Review According to Carl Menger (1840-1921) in his `Principle of Economics the economic change does not arise from the circumstances but from an individuals awareness and understanding of those circumstances. Thus, entrepreneur is change agent who transforms resources into useful goods and services. Joseph Schumpeter (1883-1950) wrote a series of economic article and treaties between. 1911 and 1950 that specifically addressed entrepreneurship. The entrepreneur seeks in Schumpeters words `to reform or revolutionize the pattern of production by exploiting an invention or more generally in untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new sources of supply of materials or a new outlets for products. Peter Ducker who described the entrepreneurial role as one of gathering and using resources but he said that resources to produce results, must be allocated to opportunity rather that to problems. Recently Robert Ronstadlt definition of entrepreneurship Entrepreneurship is the dynomic process of creating increase mental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment of providing value for some product or service. The product or service itself may or may ot be new or unique but value must same how be infused by the entrepreneur by securing and allocating the necessary skills and resources Karl Vesper describes entrepreneur positively pillars of industrial strength the moves and shakers who constructively disrupt the status quo. From socio-cultural Albert Shapero conducted research and said that individual often become entrepreneurs by being thrown into situations that force them to fashions their own means of economic livelihood Immigrants often are successful entrepreneurs people often given up their nighly paid jobs who start new business enterprise. Corporate entrepreneurship is referred to as intrapreurship is concerned with innovation that leads to new corporate divisions or subsidiary ventures in established layer firms. In practice, entrepreneurship have historically altered the directions of national economics industries and markets. The have invented new products and developed the organssation and means of production to bring them to market. They have introduced quantum leaps in technology by reallocation of resources. They have altered our pattern of living and erected new services. Women entrepreneurship defined by Government of India An enterprises owned and controlled by a women having a minimum financial interest of 51 percent of the capital and giving at least 51 per cent of the employment generated by true enterprise to women. Komal Singh define women entrepreneurship as A women entrepreneurship can be defined as a confident, innovative and creative woman capable of achieving self economic independence individually or in collaboration, generates employment opportunities for others through initially establishing and running the entrepreneurship by keeping pace with her personal family and so cial life. The participation of women in economic activities in necessary not only from a human resource point of view but is essential for raising the status of women in society. The economic status of women is now accepted as an indicator of a society stage of development. The numbers of women entrepreneurship has increased during the 1990s. Surveys demonstrate that womens primary entrepreneurial activity is focused on the small and medium enterprises sector. About 60 percent are small scale entrepreneurs, 15 per cent are large scale manufactors and remainder consists of cottage and micro-entrepreneurs. Empirical evidence shows that women contribute significantly to the running of family business mostly in the form of unpaid efforts and skills. There are many enterprises in which women hold majority share are runned by men who control the operation and decision making.The 1991 industrial policy had envisaged special training programme to support women entrepreneurs. The Small In dustries Development Organisation (SIDO) with its field offices all over the country has been carrying out different entrepreneurship development for women and setting SSI units. Objective of the study: To analyses the different problems and challenges facing women entrepreneurship in India after liberalization and globalisation. Methods and Materials: The complete research work leading to the paper is based on both systematic and ad-hoc research methods. Under systematic methods researcher will adopt both primary and secondary data. Under secondary data the researcher will consult different relevant books, literature, journals, magazines, newspapers, government documents, internet etc Vis-à  -vis problems and challenges. In primary data researcher will meet personally the women entrepreneurs and take interviews. Results and discussion Due to adoption of liberalization policies after 1991 there has been a commercialisation of production and manufacturing. There has been a expansion of economic and informal activities, resulting in expansion of market with women getting increasely involved as users and promoters of the commercial ativities. For most women this development marks the shift from in market economy. Before liberalization most women were confined to agriculture and subsidiary activities as the major sources of income .But ater liberalization a lot of women have set up small and medium enterprises like papad, pickles, spices making and tailoring and weaving, animal husbandry, agro-food based industries etc. Thus, liberalisation has helped in encouraging women enterprises. Before 1991 there was difficulty in obtaining credit, licenses and marketing but with privatization all this has changed. The atmosphere has become more conducive and markets have opened up encouraging women entrepreneurs to enter in unexplored economic areas from cottage industry like food processing, to beauty, health care and sanitation to information technology and bioinformation. Globalisation has acted as both PULL and PUSH factor for women entrepreneurs. The women entrepreneurs under PULL factor consider entrepreneurship as a challenge with an adventure and urge to do something new, liking for business and to have an independent occupation. Those under PUSH factor choose entreprenership to get over financial difficulties and responsibilities thrust on them. Kiran Mazumdar Shaw is an example of PULL factor. Her knowledge and degree in Biotechnology helped her to establish Biocon, which is now renowned company all over world.Jashwantiben Popat who made Lijjat Papad a household n ame is an example of PUSH factor. She along with other economically poor women started the all women cooperative which become symbol of women empowerment in India.Globalisation has increased opportunities but also posed challenges. Many traditional livelihoods which have high employment potential like handlooms and other non-agro enterprises which are women dominated have become unviable. Wage differentials job vulnerability and unpaid work burden for women has increased while their social safety nets have been eroded. Unequal access for women to schooling, land, credit, facilities, alternate employment skill training and technology has led to crowding of women in the lowly paid jobs. The Eleventh Plan provides respite against globalisation and helps common women with necessary skill training, vocational training and technology education. It helps towards a social security policy that mitigates the negative impact of globalisation on women.Globalisation has had its impact on human d evelopment of the country and more specifically its impact on women empowerment. Women comprise half the total population of the country and any society which is based on discrimination of women is incurring wastage of human resources and no developing country can afford it. Globalisation has increased supply of women labor force in the global labour market especially in field which require knowledge and application of technology and in research and development. Bharti Kashyap who is Ranchis famous and best eye specialists, is the best example of PULL factor. She completed her medical study after marriage and become a doctor. She started the Kashyap Eye Hospital on her own, equipped with latest technology for eye treatment. She even carries charitable eye treatment in her hospital and organises camp for poor and needy people. She with her knowledge and busines acumen has created history which no other lady can match. Small scale enterprises, vending and other petty trade are mostly carried out by low paid workers in a developing economy. Such workers often are women. They form a major part of home based workers and are also involved in unpaid family owned enterprises. Women also form a major share of agricultural wokers who are either paid very modestly or not paid at all.The situation of women is very difficult in a country like India. It is generally not accepted for women to participate in the labor force. In 1991 less than 22 percent of women in all ages were engaged in any market related work. It was not culturally acceptable in India for women to access to jobs. In stores, factories and public sector or even become enterpreneurs. Women were invloved in informal sector. With changes that well brought in by New Industrial policy of 1991 open new avenues for women and affected them greatly. The major changes in Indian policies leading to reduction in the scope of industrial licensing since 1991 and opening up of economy. The major thrust of the liberalisation process have been wide ranging trade reforms bringing about restructuring and a reduction in custom duties together with a gradual elimination of qunatitative restrictions on trade. Te impact of new industry policy of 199 have borne different conseqences for men and women because they differ in their economic and social status. With growth propelled Foreign Direct Investment, technological innovations and manufactured exports has bought a wide range of economic and social opportuniites to women entrepreneurs. The fashion designers became entrepreneurs and entered garment industry to export readymade fabrics and garments in the global market. Women became jewellery designers and made Indian jewellery popular all over the world through design and business acumen.To name some of them fashion designer Ritu Kumar,Ritu Beri, Reena Dhakha have created brand labels for them . Impact of Globalization and Eleventh Plan Strategy Liberalization has led to a paradign shift in the countrys economy. While this has provided many increase in opportuniites, it has also posed challenges. We have moved towards technology dominated sectors. Many traditional livelihoods that have high employment potential like handlooms and other non-agro enterprises that are women dominated have become unviable wage diffentials, job vulnerability and unpaid work burden for women has increased, while their social safety nets have eroded unequals access for women to schooling, land, credit facilities, alternate employment, skill training and tehnology has led to the crowding of women in the lowly paid jobs of most sectors. While seeking to provide relief to deprived and women dominated sectors such as agriculture and small enterprises the plan will also work towards main stream women in new and emerging areas of the economy through necessary skill training, vocational training and technology education. The plan tries to mitigate the neg ative impact of globalisation of women. Globalisation has put a premium on skills and higher levels of education which are often out of reach of women in the unorganised sector. A key issue in the Eleventh Plan is to enable these women to secure higher level of education and better paid jobs through vocational training and skill development. Women need technology support, credit facilities and marketing support to take up entrepreneurial activities in new and emerging trades. At the same time workers traditional skill such as knowledge of herbal plants, weaving, food processing or providing care will be recognised and marketed. Combination of computer and communications technologies culminating in networking technologies have enhanced speed and reduced the cost of communications to such an extent that the question of distance has become less relevant in commerical and business transaction. In addition, digitisation of information and the Internet have made it possible to sell goods and services beyond the boundaries of cou ntries. This has benefited women entrepreneurs. The market for e-business and e-commerce is, at least potentially global. Thus internet makes access to global knowledge that includes prices, markets, demand and tools.1 Women have benefited by having access to Global Markets Globally distributed network. Global knowledge. The success is limited to urban areas which have connectivity but women living in villages rarely reap the benefit of digital revolution and internet. Women often find it to engage in new forms of self-employment due to lack of skill, computer and English language. Opportunity to establish businesses in telekiosks or cyber cafes often elude women who do not have same access as men to family resource or institutional finance. Societal roles or biological qualities do not always work against women. For example the patience and persistence needed for repetitive work or the ability and inclination to work as a team are the qualities that management associate with women. It has led to recuitment of young women in emerging institutions of the digital economy such as call centres, BPO (Busines Process Outsourcing) KPO (Knowledge Process Outsourcing). The main advantage of the web is it may allow women to findnew markets and enhance existing enterprises. Globalisation has brought in businesses that have the advantages of low capital and skill requirements. Aside from telephony services, womens handicraft could marketed, supplied and sold through internet using B2C e-commerce services.Globalisation has increased competiton and improved quality of goods and services. It has led to he boom in service sectors, providing self employment opportunities to women in the field providing, services such as travel agent/agen cy, internet cafes, xerox services, beauty, health spas, creches, teleprinter, fax services, laundry, dry cleaning, tailoring, tiffin services to employees of multinational companies, small shops of cosmetics, garments, grocery, consultancy services, street vendors selling vegetables, fruits seasonal items andother necessary items.3 The impact of globalisation on the nature of womens work comes through in a variety through technological change and through flexibalization of the work force, through opening of new markets, through changes in social security policies and through growing pressures on resources. There is feminization of the labour force globally. A positive impact of globalisation is that women are able to get credit for self employment through their local branch of banks which now present there in villages and small towns, apart from cities. SEWA Bank which is cooperative bank promoting women entrepreneurship which was confined to Ahmedabad. It has open in other parts of country. In the SEWA seminar Mr. Arbind Singh said on the plight of women street vendors in a paper titled cities for All Street Vendors are self employment and self generators of income. They are sellers of produces of special kind produced by small entrepreneurs cheap products, daily necessity goods selling to specific buyers middle class and poor. They are outside the preview of formal, organised economy, market, capital, local and governmental subsidy. They subsidize urban living by selling goods at cheaper prices. They provide market channel to small producers. Street Vendor who mostly women contribute to growth of commerce and their turnover rules in crores. They are often lifeline of village haats and small villages.2 Case Study : Project Shakti HLL Through Project Shakti, Hindustan Level Ltd provides micro-credit to women in villages to sell their products such as soap, shampoos, toothpaste, tea, salt, sansitary napkins, etc. It is unleasling the potential of rural India and changing life. Shakti Entrepreneur Programme helps women in rural India Setup small businesses as direct to consumer retailers. The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for unilever products in the large and fast growing global market of low spending consumers living in Indian village. One in eight people on this world lives in an Indian village. Project Shakti can be describe in many ways as it empowers rural women through micro-credit enterprise initialtive that create livelihood and makes women enterpreneurs out of rural women. Shakti already has 25,000 women entrepreneurs in its fold earning about Rs. 700 Rs. 1,000 per month. It is implemented in 15 states including Bihar and Jharkhand.5 Globalisation has also contributed to the creation of new associations of women and the strengthining of their networks to offer mutual support and resources. Perhaps that most critical of the impacts of globalisation on women is the worsening situation of violence against women and the trafficking of women and girls, which is quite evident in Ranchi and all over Jharkhand. Globalisaion has led to the setting up of SEZs and export oriented industrialisation as one the key mechanisms for economic trasformation. It has provided opportunity for women entrepreneurship in the field of herbal cosmetics, readymade garments, gems and jewellery, food items, etc. Globalisation has certain drawbacks. Globalisation also tends to privilege large companies who can capture new markets quickly and easily to the disadvantage of small and micro entrepreneurs who face difficulties gaining knowledge of much less access to emerging markets. In sum, globalization puts pressure on low skilled workers and petty producers by weakening their bargaining power and subjecting them to increasing competiton. Globalisation has increased the number of low paid, part time and exploitative job for women in factories such as textile, garment industry. It has increased migration of male members of household from the rural to urban areas and the women have to bear the triple burden of caring, farming and paid or self employment in rural sector to run their household. Globalisation has led to importance of education and vocational training in women. Globalisation has increased importance of ICTs (Information, Communication, Technology) can also help women entrepreneurs work under more flexible conditions and therefore balance the double burden of family and professional responsibilites move sucessfully. They can also help women emtrepreneurs overcome discrimination they may face in conducting business, as more and more deals are made online, it is easier to evaluate the quality of projects, products and services without being influenced (consciously or unconsciously) by the gender of the business owner. Women enterpreneurs are now forming associations and networks at local, regional, national and international level which is helping their business to grow and find market and support and encourage internationalisation. As owners of small and medium-size enterprises (SEMs) women can supply multinational companies with ideas, inventions, technology, raw materials, supplies, components and business services. Globalisation implies creation of world market as a single big market in the global economy. The Signposts of globalisation have effectuated : Global consumers Short life cycle for new technologies and products Homogenisation of markets Decreasing trade barriers and increasing openness in exports and imports. Decreasing cost of transportation and communications. Conclusion Globalisation means unification of national markets in evolving global economy and supports new fields such as biotechnology, telecommunication, networking and research and development. It creates opportunities for business and employment by breaking barriers in international trade.6Thus, globalisation can be a major force for prosperity only if it is backed by adequate national policies and condusive social and economic environment for women. Nowadays ,women are well- educated with technical and professional qualifications. Many of them have medical ,management and similar degrees and diplomas.Many have entered family business as equal partners.Women set up their own clinics or nursing homes ,small boutiques,small manufacturing enterprise and entered garment exports. Women in rural areas are engaged in selling eco-friendly bags ,dolls,soft toys,handicraft,solapur chappals,sanitary materials,plates and cups of areca leaves ,decorative items chocolates,ice-cream etc. In urban and semi urban areas they are engaged in selling designer saris ,doing mirror work ,furniture making ,land scalping ,tailoring and embroidery work,interior designing,fashion designing,mobile laundries,screen printing,cyber cafà ©,driving schools,supplying household articles,,beauty palours,DTP,manufacture and export of food products .Entrepreneurship in the animation industry is a new where women entrepreneurs have greater scope of development.Women entrepreneurs manufacturing solar cookers in Gujarat ,small foundries in Maharastra and T.V capacitors in Orissa have proved that women can excel men in any field if they are given the opportunities and thus the entrepreneurship of women is evident in endless ways.7Exploiting womens potential and converting it into profits is the key step to economic development in the present age of globalization. There is a major challenge for policy makers to ameliorate the conditions for the establishment and growth of women-owned business. Women entreprene urs should also try to get full moral and financial support from their family members. The local government and banks should come forward to help women entrepreneurs for providing loan at easy terms and conditions. Women entrepreneurs must be enthused to participate in international business in the present age of globalization through trade fairs and exhibitions. With the help of all these positive efforts, women entrepreneur may emerge as role model and touch new heights in the field of present business world. Entrepreneurship among women, no doubt, improves the wealth of the nation in general and of the family in particular. Women today are more willing to take up activities that were once considered the preserve of men, and have proved that they are second to no one in regard to contribution to the luxuriant efflorescence of the economy. Women entrepreneurship must be moulded properly with entrepreneurial traits and skills to meet the changes in trends, challenges of global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena.