International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 01, January 2019, pp. 1745-1750, Article ID: IJMET_10_01_173
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=01
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
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A STUDY ON THE ROLE OF WOMEN
ENTREPRENEURS IN MANAGING THE
FINANCIAL RESOURCES OF THE FIRM
G.Jayashree
Full-Time Research Scholar
Avs Arts and Science College, Salem-106
Dr.I.Carmel Mercy Priya
Research Guide, Principal, Avs Arts and Science College, Salem – 106
ABSTRACT
Finance is the life-blood of any business. In the early times every entrepreneur’s
motive was to earn profit and expand the business. But in the present scenario, the
survival of any business depends highly on the growth of the firm’s stakeholder’s. Today
majority of the organization suffers from huge business loss due to the wrong decision
taken in managing the financial resources of the firm. The study of Financial Management
helps the organizational managers in making the right decision in procurement,
allocation and distribution of returns to the shareholders. Likewise a women entrepreneur
must understand the various risks involved in fund management. She has to take a right
decision regarding fund financing firms at lowest interest rate and easily payment
options, better investment opportunities prevailing in the economy and the means of
earning profit and distributing the same if the firm has more employees. This paper
revolves around the various problems faced by women entrepreneurs in procuring finance
to run their business. The study was carried out in Salem district, Tamil Nadu (India).
Keywords: Financial
entrepreneurship
resources,
expansion,
procurement,
financial
resource,
Cite this Article: G.Jayashree and Dr.I.Carmel Mercy Priya, a Study on the Role of
Women Entrepreneurs in Managing the Financial Resources of the Firm., International
Journal of Mechanical Engineering and Technology, 10(01), 2019, pp.1745–1750
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&Type=01
1. INTRODUCTION
Women entrepreneurship is gaining importance in India in the current economic condition. It has
been identified as an effective step toward poverty alleviation in the country. There exists a list
of successful business women entrepreneurs’ b oth in social and economic fields in India. The
increasing presence of women in the business field as entrepreneurs has led to the change in the
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G.Jayashree and Dr.I.Carmel Mercy Priya
demographic characteristics of business and economic growth of the country. Women-owned
business enterprises are playing a prominent role in society inspiring others and generating more
employment opportunities in the country. However, to promote a balanced growth in the country,
there is need for sustainable growth of women entrepreneurs .What India needs is a well-planned,
structured holistic approach where equal responsibility is taken by the society and government in
fostering the growth of women entrepreneurs.
Globalization has paved way in supporting the entrepreneurs to engage in trading activities
across the globe. Major banks and financial institutions such as EXIM, SIDBI, NABARD, IDBI,
ICICI, SFC’s, etc. was incorporated with a sole vision to provide financial assistance to the
business people.
Apart from the banks and FI’s there are a number of Venture Capitalist Firms and Angel
Investors emerged in India to share the risk of entrepreneurs in new project. These institutions
not only provide fund but also be a part of the business in guiding the entrepreneur in risky
projects. Though India has numerous opportunities to start a business many people do not come
forward to become an entrepreneur because of the term called ‘risk’. Business means risks. In
finance it’s normally said ‘higher the risk, higher the return’. It means the more the entrepreneur
engage in risky projects the more he/she gains profit.
Thus the researcher has focused on the financial arena that helps the women entrepreneurs in
making the right decisions in mobilizing and utilizing the financial resources in their business.
The study was carried out in Salem District, Tamil Nadu with a sample of 650 women
entrepreneurs.
2. OBJECTIVE OF THE STUDY
The main objective of the study is to study the financial performance and hurdles of women
entrepreneurs.
3. RESEARCH METHODOLOGY
The researcher has collected a sample of 650 women entrepreneurs. Data was collected with a
questionnaire and the following analysis was made;
• Percentage analysis
• Chi-square
4. DATA ANALYSIS AND INTERPRETATIONS
Do the women entrepreneurs have any plans to expand their business?
Table: 1
Yes
No
Total
No.
352
298
650
Percent
54.2
45.8
100.0
Do the women entrepreneurs face any financial hurdles in their business?
Table: 2
No.
Percent
Yes
579
89.1
No
71
10.9
Total
650
100.0
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A Study on the Role of Women Entrepreneurs in Managing the Financial Resources of the Firm
If yes, how did the women entrepreneurs manage the hurdle to run their business?
Table: 3
Options
No. Percent
Personal deposited amount
43
7.4
Selling some fixed assets
115 19.9
Borrowing from banks
179 30.9
Plan to approach government for fund 109 18.8
Borrowing from private parties
133 23.0
Total
579 100.0
Interpretations: Table -1 clearly shows that 54.2% of women entrepreneurs have interest in
business expansion and 45.8% do not have any interest for business expansion. Also table-2
clearly depicts that 89.1% women entrepreneurs face financial problems in their business and
10.9% opines that they do not face any financial hurdles in their business. Table -3 explains the
means of sourcing finance to overcome the financial hurdles of the firm. Majority i.e 30.9% of
women entrepreneurs have plans to borrow from banks to solve their financial problems and the
remaining of them solve their problems from other means like borrowing from private parties,
deposited fund, selling fixed assets, borrowing from government.
Note:
** - denotes significant relationship between variables
* - denotes no significant relationship between variables
Table: 4
Plans to expand business corresponding to Age
Have plans to expand your business?' Total
Yes
No
No. %
No.
%
No.
%
20-25 yrs
5
45.5
6
54.5 11 100.0
25-30 yrs
34
24.3
106
75.7 140100.0
Age 30-35 yrs
148
55.8
117
44.2 265100.0
35-40 yrs
96
72.2
37
27.8 133100.0
above 40 yrs 69
68.3
32
31.7 101100.0
Total
352
54.2
298
45.8 650100.0
Interpretation: Table-4 clearly explains the opinions of several women entrepreneurs in
different age groups. Since the calculated chi-square value 76.515 is greater than the table value
of 13.277 it can be said that there is significant relationship between age and their opinions
regarding business expansion.
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G.Jayashree and Dr.I.Carmel Mercy Priya
Table – 5.a
Have plans to expand your business?'
Yes
total
No
No.
%
No.
%
No.
%
7
35.0
13
65.0
20 100.0
Qualification Below 12th
170
51.5
160
48.5
330 100.0
U.G degree
175
58.3
125
41.7
300 100.0
352
54.2
298
45.8
650 100.0
Illiterate
Total
Table -5.b
Chi-Square Test
Chi-Square
Value
5.992
df
2
Sig.
**
Table value: 5.991
Interpretations: Table – 5 denotes the relationship between qualification and their opinions
on business expansion. Since the calculated value 5.992 is greater than table value 5.991 it can
said that there is relationship between qualification and their opinions on business expansion.
Table-6.a
Do you face any financial hurdles in your business?
Yes
No
No.
%
No.
%
20-25 yrs
8
72.7
3
27.3
25-30 yrs
133
95.0
7
5.0
Age 30-35 yrs
254
95.8
11
4.2
35-40 yrs
114
85.7
19
14.3
above 40 yrs
70
69.3
31
30.7
Total
579
89.1
71
10.9
total
No.
%
11
140
265
133
101
650
100.0
100.0
100.0
100.0
100.0
100.0
Table-6.b
Chi-Square Test
Chi-Square
Value
62.678
df
4
Sig.
**
Table value: 13.277
Interpretations: The chi-square analysis is made to test whether there is relationship between
age and their opinions regarding the business financial hurdles. Since the calculated value 62.678
is greater than 13.277 of table value it can be said that there is significant relationship between
age and their opinions on facing business hurdles.
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A Study on the Role of Women Entrepreneurs in Managing the Financial Resources of the Firm
Table -7
If yes, how did you manage the hurdle to run your business?
Personal
Selling
Borrowing
from
deposited some fixed
amount
Age
assets
banks
No.
%
No.
%
No.
%
20-25 yrs
3
37.5
2
25.0
2
25-30 yrs
9
6.8
97
72.9
9
30-35 yrs
7
2.8
7
2.8
35-40 yrs
14
12.3
3
above 40 yrs 10
14.3
6
Total
43
7.4
Plan to
approach
government
for fund
No.
%
total
Borrowing
from
private parties
No.
%
No.
%
25.0
1
12.5
6.8
18
13.5 133 100.0
112 44.1 101 39.8
27
10.6 254 100.0
2.6
40
35.1
5
4.4
52
45.6 114 100.0
8.6
16
22.9
3
4.3
35
50.0
115 19.9 179 30.9 109 18.8
133
23.0 579 100.0
8 100.0
70 100.0
5. MAJOR FINDINGS OF THE STUDY
•
•
•
Women entrepreneurs under the age group of 30-35 are highly interested in expanding
their business. Women entrepreneurs aging 25-30 do not have any idea to expand
business.
The major problem/hurdle faced by women entrepreneurs are finance. They do not
have adequate knowledge/awareness on various banking schemes.
Women entrepreneurs who were uneducated do not have any idea for business
expansion.
6. CONCLUSION
The study helps to understand the various problems faced by women entrepreneurs in terms of
money, society, government etc. From the data collected it clearly shows that majority of women
entrepreneurs are highly confident and interested in being an entrepreneur. And if proper financial
assistance and support is provided to them from the government and family they can achieve
more business goals. Various studies reveal that the women entrepreneur has contributed to a
major economic growth of the country. Therefore in order to motivate them, their growing
financial needs and demands have to be met at the required time. The study aims in understanding
the problems of women entrepreneurs in the areas of financial needs and management of financial
resources of the firm.
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