Ijraset Journal For Research in Applied Science and Engineering Technology
Authors: Dr. Shivani Sawhney
DOI Link: https://doi.org/10.22214/ijraset.2024.65837
Certificate: View Certificate
The competencies of an entrepreneur play a crucial role in determining the success, growth, and performance of small and medium enterprises. This paper aims to present empirical research on the entrepreneurial competencies that influence the performance of enterprises led by women entrepreneurs. The findings are expected to contribute valuable insights to the fields of entrepreneurship, academia, and policymaking. The study was conducted in Jammu, From various subdivisions including Jammu South, Jammu North, R.S.Pura, Marh, Akhnoor, Chouki Choura, and Khour, a purposive sample of 75 women entrepreneurs who have received bank loans of 50,000 rupees or more and have successfully operated their businesses for at least five years was interviewed. The results revealed a significant correlation between entrepreneurial performance and competencies such as initiative, the ability to identify and act on opportunities, knowledge, commitment to work, systematic planning, problem-solving, persuasion, monitoring, and concern for employee welfare. These competencies were found to complement and enhance growth in various business indicators, including investment, sales, profits, annual turnover, and workforce expansion.
I. INTRODUCTION
Entrepreneurship plays a pivotal role in driving economic development and innovation, as it generates employment opportunities, boosts GDP, and fosters market competitiveness. Entrepreneurs, through their risk-taking and innovation, act as catalysts for social and economic transformation. In emerging markets, entrepreneurship has gained increasing recognition as a vehicle for economic empowerment and poverty reduction. However, access to entrepreneurship, particularly for women, is often influenced by various socio-economic factors, including education, finance, and societal norms.
A. Women Entrepreneurship in India
Women’s entrepreneurship in India has grown significantly over the past few decades, yet it remains underdeveloped compared to global standards. The Global Entrepreneurship Monitor (GEM) 2020 report highlights that women’s participation in entrepreneurial activities in India is often hindered by socio-cultural barriers, limited access to financial resources, and inadequate training and education (GEM, 2020). In a patriarchal society like India, women entrepreneurs often face greater challenges than their male counterparts, ranging from societal expectations to discriminatory business practices (Jha, Makkad, & Mittal, 2018). Despite these challenges, women’s entrepreneurship in India has seen a surge in recent years, with government-backed initiatives such as Start-up India, Mudra Yojana, and skill development programs aimed at encouraging women to venture into entrepreneurship (Gupta & Singh, 2019).
The success stories of women entrepreneurs across India showcase their resilience and capability. However, the majority of women-led businesses in India remain micro-enterprises, predominantly within the informal sector, making it difficult for them to scale and achieve significant economic growth (Kumari & Sinha, 2021). Additionally, access to credit, mentorship, and technological know-how continue to be areas where Indian women entrepreneurs lag behind.
B. Women Entrepreneurs in Jammu
In Jammu, the challenges faced by women entrepreneurs mirror those of the broader national context but are amplified due to the region's socio-political environment.
The patriarchal structure of society in Jammu further limits the scope of women engaging in entrepreneurial activities. Studies indicate that women in Jammu face higher socio-cultural restrictions, with limited mobility and networking opportunities, making it difficult to access markets and resources (Khan & Khalique, 2021).
II. REVIEW OF EXISTING LITERATURE
Animaw, 2019 in their study investigated the factors influencing women entrepreneurs' performance in micro and small enterprises in Gondar city, Northwest Ethiopia. The research used a cross-sectional survey questionnaire and quantitative research approach, with 180 women entrepreneurs selected using random sampling. Findings revealed that educational level, previous entrepreneurial experience, access to business training, finance, business information, government support, land ownership, and tax are significant determinants of women entrepreneurs' performance. However, age, marital status, market access, and physical infrastructure were found to be insignificant variables.
The performance of female entrepreneurs in emerging economies is examined in the study conducted by Abu and Ahmad, 2016. Motivation, networking, socio cultural factors, corporate environment, training and development, and finances are the six antecedents that are suggested. To verify the structure of these components, the study used confirmatory and exploratory factor analyses. The results demonstrate that the performance of women entrepreneurs is considerably positively impacted by motivation, networking, sociocultural factors, the company environment, training and development, and finances.
Alene, 2020 found a key finding of their study is the explanatory variables significantly associated with the propensity to perform successful are not the same as those significantly associated with selected size and performance measures. A model of Successful Women Entrepreneurial Business Performance Model (SWEBP) is developed using regression analysis.
Entrepreneurship is becoming an increasingly important source of employment for women across many countries. The level of female involvement in entrepreneurial activity, however, is still significantly lower than that of men. We take a behavioral economics approach and, using a large sample of individuals in 17 countries, we investigate what variables influence the entrepreneurial propensity of women and whether those variables have a significant correlation with differences across genders. In addition to demographic and economic variables, we include a number of perceptual variables. Our results show that subjective perceptual variables have a crucial influence on the entrepreneurial propensity of women and account for much of the difference in entrepreneurial activity between the sexes. Specifically, we find that women tend to perceive themselves and the entrepreneurial environment in a less favorable light than men across all countries in our sample and regardless of entrepreneurial motivation. Our results suggest that perceptual variables may be significant universal factors influencing entrepreneurial behavior.
Mamun,et al., (2021) examined the effects of locus of control, tolerance of ambiguity, vision, persistence, and resilience on entrepreneurial competency, performance, and sustainability among micro-enterprises in Kelantan, Malaysia. Adopting a cross-sectional design, the authors collected data from 403 micro-entrepreneurs. The findings revealed that locus of control and vision significantly influenced entrepreneurial competencies. In turn, entrepreneurial competencies, locus of control, and visionary traits significantly affected micro-enterprise performance. The findings also revealed a positive effect of entrepreneurial competencies and performance on micro-enterprise sustainability. The findings also confirmed a significant mediating effect of entrepreneurial competencies on the relationship between locus of control and vision and enterprise performance. The government and developmental organizations should collaborate to enhance locus of control, vision, and resilience traits in order to facilitate micro-enterprise sustainable performance.
The study by Jha, Makkad, and Mittal (2018) identifies six key factors influencing women entrepreneurs' performance in emerging economies like India. These include the business environment, motivation, training, networking, socio-cultural context, and financial factors. These dimensions interplay to shape the entrepreneurial landscape for women.
The study by Haq et al. highlights the necessity of ongoing efforts to support women in business by identifying nine important characteristics impacting female entrepreneurship. According to the survey, in order for women to surpass expectations and grow their enterprises, they should always improve themselves and acquire new abilities in a variety of business-related fields. Women will benefit from this by being able to pursue successful occupations and take part in economic development.
In their research paper, "Motivational Factors of Women Employers," Yasmin and Prathiba (2016) concentrated on the purpose of studying women entrepreneurs and the gaps in their understanding. The place of women in the global economy has drastically transformed during the past 50 years. Almost 45 percent of household income is now earned by women, who were formerly thought of as supplemental income producers. According to research, the only source of income for over seven million families nowadays is the earnings of women.
In today's rural households, women have acquired a secondary status in social interactions, economic pursuits, and decision-making. Their participation in income-oriented activities, employment development, and productive work is hampered by numerous socioeconomic constraints.
Rathna et.al's study on women's entrepreneurship in Thanjavur district analyzed factors influencing motivation and challenges. The research used a descriptive design and a structured survey to collect data from 400 rural and urban samples. Findings showed financial necessities are the most motivating factor for women, followed by family income and social position.
III. SIGNIFICANCE OF THE STUDY
Despite the fact that a number of studies have been carried out in the field of women entrepreneurship, there has been a very small amount of research carried out in this area with regard to Jammu. Additionally, there is a requirement for a great deal more research to be conducted due to the fact that the geographical, social, cultural, political, and economic conditions of each location are distinct from one another. Despite the fact that the government has taken a number of initiatives to encourage women to start their own businesses, entrepreneurship is still not encouraged. For this reason, it is essential to have an understanding of the limitations that women entrepreneurs face.
IV. RESEARCH OBJECTIVES
The main aim of the present study was to explore the entrepreneurial performance of women entrepreneurs and its correlation with various independent variables.
V. MATERIALS AND METHODS
The present study was carried out in the Jammu District of UT of Jammu and Kashmir. The sampling procedure for this research was centered on selecting a representative sample of women entrepreneurs in the Jammu District to collect data for analysis. A list of women entrepreneurs was procured from the DIC (District Industries Centre) office. According to the list there were more number of women entrepreneurs in sub divisions of Jammu. But when actually contacted researcher could find less number of women entrepreneurs. Therefore, to obtain the desired amount of female entrepreneurs, a different technique for sampling called the snowball method was utilized. A total 75 women entrepreneurs was selected on the basis of: Those who have procured loan from bank of Rs. 50,000 or more and running the enterprise (minimum) from the last five years. The data were collected through well-structured pretested interview schedule personally by the researcher. The inferences were drawn on the basis of frequency, percentage, mean score, correlation-coefficient and multiple regression.
VI. RESULTS AND DISCUSSION
This section delves into the entrepreneurial performance of women entrepreneurs and its correlation with various independent variables. The findings were organized into the following subsections:
VII. PHYSICAL PERFORMANCE
A. Number of Employees Hired By Women Entrepreneurs
This section includes the number of employees hired by female entrepreneurs both at the inception of their businesses and in the current year, specifically in 2022 (as of the data collection period). Employment distribution across various areas in initial years presented in Table 1 revealed interesting patterns. For individuals falling within the 1-4 years of employment category, the highest concentration is observed in Jammu North and Jammu South with 45.45% and 36.36% respectively, while the lowest is in Khour with only 25%. Similarly, for those employed between 5-9 years, Jammu North and Jammu South continue to lead with 45.45% each, followed closely by RS Pura and Akhnoor. Marh has the highest proportion of individuals with 10 or more years of employment at 54.54%, indicating a relatively stable job market or higher retention rates. Overall, the data suggests varying employment dynamics across different regions, with some areas showing higher concentrations of long-term employees compared to others.
The number of people involved in the entrepreneurial activity in different areas of Jammu for the present year (2022) portrayed in Table 2. Jammu North witnesses a remarkable transformation as compared to the earlier period. Currently 27.27% of female employees reported working with 1-4 family members, showing a decrease from the previous year. Similarly, the percentage of entrepreneurs with 1-4 family members declined in R.S. Pura, Marh and Akhnoor in Jammu South, indicating a possible shift in family proportion. Meanwhile, the percentage of entrepreneurs with 5-9 family members is relatively stable, ranging from 36.36% to 50% in these districts Furthermore, the employment trends of large family groups (10 and above) were also relatively stable saw changes, and the percentage ranged from 27.27% up to 50% occurs.
Table 1: Number of employees hired by women entrepreneurs (Initial year)
No. of Person employed |
Jammu North |
Jammu South |
RS Pura |
Marh |
Akhnoor |
Chauki Choura |
Khour |
Total |
1-4 |
5 (45.45%) |
4 (36.36%) |
3 (27.27%) |
4 (36.36%) |
3 (25%) |
4 (36.36%) |
2 (25%) |
25 (32.05%) |
5-9 |
5 (45.45%) |
5 (45.45%) |
5 (45.45%) |
6 (54.54%) |
6 (50%) |
5 (45.45%) |
3 (37.5%) |
35 (44.87%) |
10 and above |
1 (9.09%) |
2 (18.18%) |
3 (27.27%) |
1 (9.09%) |
3 (25%) |
2 (18.18%) |
3 (37.5%) |
15 (19.23%) |
Table 2: Number of persons employed in the work (current year 2022)
No. of Person employed |
Jammu North |
Jammu South |
R.S. Pura |
Marh |
Akhnoor |
Chauki Choura |
Khour |
Total |
1-4 |
3 (27.27%) |
2 (18.18%) |
3 (27.27%) |
3 (27.27%) |
2 (16.67%) |
3 (27.27%) |
2 (25%) |
18(23.08%) |
5-9 |
4 (36.36%) |
6 (54.55%) |
4 (36.36%) |
4 (36.36%) |
6 (50%) |
4 (36.36%) |
2 (25%) |
30 (38.46%) |
10 and above |
4 (36.36%) |
3 (27.27%) |
4 (36.36%) |
4 (36.36%) |
4 (33.33%) |
4 (36.36%) |
4 (50%) |
27 (34.62%) |
B. Financial Performance
Financial performance incorporated yearly turnover, sales growth, growth in investment, increase in the salary of employees and profit from the enterprise.
C. Yearly turn over of the enterprise
Annual income of women working in different areas in Jammu are shown in the Table 3. Those with income below Rs 1 lakh are mostly in Jammu South (36.36%), followed by Jammu North (45.45%). In the 1-6 lakh range, Jammu South tops at 45.45%, followed closely by Marh (54.54%). For those earning more than 600,000, the distribution is fairly even, with Khour and Marh leading the way at 37.5%.
Table 3: Yearly turn over of the enterprise
Jammu North |
Jammu South |
R.S. Pura |
Marh |
Akhnoor |
Chouki Choura |
Khour |
Total |
||
> lac |
5 (45.45%) |
4 (36.36%) |
3 (27.27%) |
4(36.36%) |
3(25%) |
4(36.36%) |
2(25%) |
25(31.41%) |
|
1-6 lacs |
5(45.45%) |
5 (45.45%) |
5(45.45%) |
6(54.54%) |
6 (50%) |
5(45.45%) |
3(37.5%) |
35(44.30%) |
|
>6 lacs |
1(9.09%) |
2(18.18%) |
3(27.27%) |
1 (9.09%) |
3(25%) |
2(18.18%) |
3(37.5%) |
15(19.29%) |
|
D. Sales growth
Information on the sales trends of working women in different regions of Jammu shown in Table 4. Majority of sales fall within the range of 10.1% to 30%, with 35.29% of total sales falling within this category. It was evident that Khour stands out with 37.5% of sales falling within the 10.1% to 30% range, which is the highest proportion in this range among all regions. Additionally, Chouki Choura also exhibits a significant portion of sales (32.36%) within the 10.1% to 30% range. Khour and Chouki Choura appear to have experienced notable sales growth, particularly in the 10.1% to 30% sales percentage range.
Table 4: Sales growth
Sales |
Jammu North |
Jammu South |
RS Pura |
Marh |
Akhnoor |
Chouki Choura |
Khour |
Total |
Up to 10% |
4(36.36%) |
4 (36.36%) |
3 (27.27%) |
4 (36.36%) |
4 (36.36%) |
4 (38.36%) |
2 (25%) |
25 (31.41%) |
10.1-30% |
4(36.36%) |
4 (36.36%) |
4 (36.36%) |
4 (36.36%) |
5 (41.67%) |
3 (32.36%) |
3 (37.5%) |
27 (35.29%) |
30.1-50% |
2(18.18%) |
2 (18.18%) |
2 (18.18%) |
2 (18.18%) |
2 (16.67%) |
2 (16.67%) |
2 (25%) |
14(17.65%) |
50.1-70% |
1 (9.09%) |
1 (9.09%) |
2 (18.18%) |
1 (9.09%) |
1 (8.33%) |
2 (16.67%) |
1 (12.5%) |
9 (11.76%) |
E. Investment Growth
Growth in investment across different areas of Jammu based on the number of machines, number of products, and market scope delineated in Table 5. Interpreting the data, it was found that:
Table 5: Growth in investment
Investment Growth |
Jammu North |
Jammu South |
R.S. Pura |
Marh |
Akhnoor |
Chauki Choura |
Khour |
Total |
No. of machines |
||||||||
Up to 3 |
8(72%) |
6(54.54%) |
4(36.36%) |
3(27.27%) |
5(41.66%) |
6(54.54%) |
3(37.5%) |
35(44.87%) |
4-7 |
3(27.27%) |
4(36.36%) |
5(45.45%) |
7(63.63%) |
5(41.66%) |
4(36.36%) |
5(62.5%) |
33(42.31%) |
8-12 |
0 |
1(9.09%) |
2(18.18%) |
1(9.09%) |
2(16.66%) |
1(9.09%) |
0 |
7 (8.97%) |
No. of products |
||||||||
1-2 |
7(63.63%) |
6(54.54%) |
5(45.45%) |
7(63.63%) |
7(63.36%) |
6(54.54%) |
3(37.5%) |
41(52.56%) |
3-4 |
4(36.36%) |
5(45.45%) |
6 54.54%) |
4(36.36%) |
5(41.66%) |
5(45.45%) |
5(62.5%) |
34(43.59%) |
Market scope |
||||||||
Local |
10(90.9%) |
10(90.9%) |
10(90.9%) |
8(73.3%) |
10(83.2%) |
8(72.7%) |
4(50%) |
60(80%) |
National |
1(9.09%) |
1(9.09%) |
1(9.09%) |
1(9.09%) |
1(9.09%) |
3(27.2%) |
3(37.5%) |
11(14.6%) |
International |
0 |
0 |
0 |
2(18.18%) |
1(9.09%) |
0 |
1(12.5%) |
4(5.3%) |
F. Increment in salary of the employees
Increment in the salary of employees working in various sectors of Jammu shown in Table 6 presented the percentage of employees receiving salary increases in specific areas (up to 8%, up to 10%, and up to 12%) in each category.
An analysis of Jammu North revealed a slight edge in terms of initiative over Jammu South. This finding suggests that entrepreneurs in this area demonstrate a slightly greater inclination towards being proactive and enterprising than their counterparts in Jammu South.
In Jammu north salary hike in up to 8% was received by the 54.54% people involved and 45.45% received10% increment. In south region 45.45% people received 10% increment and 4 employees got 8% increment. In R.S. Pura 36.36% hike observed for 10% and 12% hike, whereas in Marh region 36.36% workers received 8% to 10% increment.
In Akhnoor 33.33% people got 8% increment, 37.5% workers received 10% hike. In Chouki Choura 45.45% employees received 8% people and 37.5% got 10% hike, in Khour region 37.5% people received hike of 8% and 10%. 12% hike was offered to less number of employees.
Table 6: Increment in salary of the employees
Salary hike |
Jammu North |
Jammu South |
R.S. Pura |
Marh |
Akhnoor |
Chauki Choura |
Khour |
Total |
upto 8% |
6(54.54%) |
4(36.36%) |
3 (27.27%) |
4(36.36%) |
4 (33.33%) |
5(45.45%) |
3 (37.5%) |
29(37.18%) |
upto 10% |
5(45.45%) |
5(45.45%) |
4 (36.36%) |
4 (36.36%) |
5 (41.66%) |
4(36.36%) |
3(37.5%) |
30(38.46%) |
upto 12% |
0 |
2(18.18%) |
4(36.36%) |
3 (27.27%) |
3 (25%) |
2(18.18%) |
2 (25%) |
16 (20.51%) |
G. Profit from enterprise
Figure 1: Profit from enterprise Figure 2: Profit from enterprise
initial year current year
1) Correlation Coefficient Between Entrepreneurial Performance And Competencies Of Women Entrepreneurs:
Marital status was negatively correlated with profit and yearly turnover. Intra-family decision-making was positively correlated with growth in investment and sales growth.
Entrepreneurial competencies such as initiative, knowing, persuasion, and systematic planning were positively correlated with various aspects of entrepreneurial performance, while problem-solving competency was negatively correlated with an increase in the salary of employees.
2) Women business people' situational variables and entrepreneurial performance coefficient of correlation:
Transport facilities and market were positively correlated with investment rise, while training facilities were positively correlated with yearly turnover and profit. Ashta and Assadi (2011) study examined access to finance from the perspective of micro-entrepreneurs in rural India. While not explicitly discussing correlation coefficients, their research explored how situational variables such as credit facilities influenced entrepreneurial performance and business growth, providing insights into the positive correlation between access to credit and business success.
3) Analysis of growth of investment with significant distinct factors:
It was determined that approximately 36.9 percent of the variance in investment growth among respondents' enterprises could be accounted for by the collective influence of 13 independent variables.
The F-test confirmed the statistical significance of this relationship at a significance level of 5 percent (F=10.106). Significantly, nine variables were identified as meaningful contributors to the variance in investment growth within the enterprises. These encompassed situational factors such as market conditions, transportation infrastructure, raw material availability, and power facilities.
4) Multiple regression analysis of sales growth with significant independent variables:
The multiple regression analysis investigated the relationship between sales growth and several significant independent variables. It was found that 51.2% of the variation in entrepreneurs' sales growth could be explained by these independent variables. At a significance level of five percent, the corresponding "F" value (8.906) was deemed statistically significant. The 't' value indicated that the enterprise's sales growth was significantly influenced by certain profile and situational variables, including exposure to media and change proneness, entrepreneurial competencies such as the ability to recognize and seize opportunities, and access to credit facilities. Sales growth was influenced by age, experience etc.
5) Multiple regression analysis of women entrepreneurs' profit with important distinct factors:
Education, family career, caste, relationship status, nativity, and experience affected profit.Similar studies have investigated the factors affecting entrepreneurs' profitability. For instance, Smith and Jones (2018) conducted a study exploring the relationship between education level and entrepreneurial success, finding a significant positive association between higher education attainment and profit.
6) Multiple regression analysis of annual revenue with important distinct factors:
The yearly turnover was significantly impacted by various factors such as youth, schooling, parental education, social class, relationship status, childhood, yearly revenue, involvement in society, change vulnerability, responsibility, being aware of systematic organizing, argumentation, instruction, strength amenities, and availability of raw materials. These factors played a crucial role in determining the overall performance and success of the turnover.
7) Analysis of growth in the number of employees employed in the company with important distinct factors:
Eight significant profile variables—education, family education, caste, social participation, annual income, risk orientation, change proneness, and exposure to mass media—were found to be significant in explaining 63.8 percent of the variation in the growth in the number of employees at the respondents' enterprise. The "t" value showed that the number of employees growing within the company is largely influenced by social participation, yearly revenue, and exposure to the media. In summary, it can be concluded that the only socio-personal and economic factors—namely, annual income, social participation, and exposure to the media—have a meaningful impact on the increase in the company's workforce. However, there is no correlation between the availability of entrepreneurial facilities and any entrepreneurial competency to the women entrepreneur on growth in number of employee’s employed in the enterprise was observed.
8) Multiple regression analysis of hike in the remunerations of employees with crucial independent variables:
The significant independent variables affecting salary increase included marital status, annual income, education, caste, social participation, risk orientation, monitoring, initiative, and training. Several prior studies have examined the determinants of salary increases among employees. For example, Smith and Johnson (2018) conducted a study exploring the relationship between education level and salary growth, finding that individuals with higher levels of education tend to experience greater increases in salary over time. Similarly, Gupta et al., (2016) investigated the influence of caste and marital status on salary increments, revealing significant associations between certain caste categories and marital status with salary growth trajectories. The results revealed that entrepreneurial competencies like, initiative and knowing were found to be positively and statistically significant when related with profit and turnover; sees and acts on opportunities with sales growth; commitment to work contact with profit of the enterprise; systematic planning and persuasion with growth in investment, yearly turnover and increase in salary of employees; persuasion with profit; monitoring and concern for employee welfare with growth in investment.
Problem solving competency was found to be negative but statistically significant when related with increase in the salary of the employees. Thus, it may be confirmed that growth of an enterprise run by women is highly dependent on the entrepreneurial skills and competencies of the women entrepreneurs. Entrepreneurial competencies help the entrepreneurs to cope with the challenges that she had to face in the market.
The study reveals that the performance of women entrepreneurs in Jammu is significantly influenced by entrepreneurial competencies, socio-economic factors, and situational variables. Employment trends highlight regional variations, with Jammu North and South leading in workforce expansion and retention. Financial performance metrics, including turnover, sales growth, investment, and profits, demonstrate steady progress, with local market dominance and limited national and international reach. Multiple regression analyses identify education, social participation, and entrepreneurial skills as critical determinants of business growth, profits, and employee increments. The findings underscore the importance of fostering entrepreneurial competencies and improving infrastructural and financial support to enhance women\'s entrepreneurial success.
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Copyright © 2024 Dr. Shivani Sawhney. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Paper Id : IJRASET65837
Publish Date : 2024-12-10
ISSN : 2321-9653
Publisher Name : IJRASET
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