Financial Policies in Women Entrepreneurial Development (A Case of Uttarakhand)

 

Megha Batola¹*, Dr. Gajendra Singh²

¹Research Scholar, Faculty of Management, Pacific Academy of Higher Education and Research University, Pacific Hills, Pratap Nagar Extension, Udaipur, Rajasthan-313001, India.

²Associate Professor, School of Management, Doon University, Mothrowala Road, Kedarpur, PO Ajabpur, Dehradun Uttarakhand-248001, India.

 

ABSTRACT:

Women entrepreneurship is the process where women organise all the factors of production, undertake risks, and provide employment to others. The definition of women entrepreneurship has never been differentiated on the basis of gender and hence could be extended to women entrepreneurs without any restrictions. The study focuses on to describe the usefulness of Financial Policies in Women Entrepreneurial Development. . There are many prominent factors responsible for existence Financial Policies in Women Entrepreneurial Development.  Employing Factor Analysis Techniques, this study explores the factors. Through Bi-Variate cross sectional analysis this study attempts to develop an instrument to measure effectiveness of financial policies in women entrepreneurial development.

 

 

 

INTRODUCTION:

Entrepreneurship development and Small and Medium Enterprise have been globally acknowledged as instruments for achieving economic growth and development as well as employment creation (Rebecca, 2009). Globally, the Small and Medium Enterprise are contributing a major share in their respective economies and have been accepted as the engine of economic growth and for encouraging equitable development. The main advantage of this sector is that it provides a large employment at a low capital cost. Small and Medium Enterprise are considered as a driving force of innovation and employment, and thus they are an important factor in fostering general economic performance (Carree and Thurik, 2008).

 

Women in entrepreneurship has been largely neglected both in society in general and in the social sciences (Brush and Hisrich, 1999; Holmquist and Sundin, 2002). Not only have women lower participation rate in entrepreneurship than men but they also generally choose to start and manage firms in different industries than men tend to do (Duchénaut, 1997; Franco and Winqvist, 2002; Reynolds and White, 1997). The industries (primarily retail, education and other service industries) chosen by women are often or have until recently been perceived as being less important to economic development and growth than high-technology and manufacturing. Entrepreneurship is an economic activity which is undertaken by an individual or group of individuals. Entrepreneurship can be defined as the making of a “new combination” of already existing materials and forces; that entrepreneurship throws up as innovations, as opposed to inventions and that no one is entrepreneur forever, only when he or she is actually doing the innovative activity (Schumpeter,1961). Financial problem is a major problem faced by all respondents. They face this problem at the time of starting, as well as during the operations of their business enterprises, problem of getting loan and subsidy, insistence of collateral security and margin money requirement, time taken to process loan, tight repayment schedule, poor financial management and maintenance of accounts (Jayammal, 2012)According to a report by the United Nations Industrial Development Organisation (UNIDO), ‘despite evidence that women’s loan repayment rates are higher than men’s, women still face more difficulties in obtaining credit’, often due to discriminatory attitudes of banks and informal lending groups (UNIDO, 1995).

 

This paper examines the role of financial policies in women entrepreneurial development. Exploratory factor analysis identifies the factor contributing toward the financial policies in entrepreneurial development. Cross sectional bivariate analysis was performed in order to develop a construct to identify the importance of various financial measures taken to support women entrepreneurs in the state of Uttarakhand. 

 

REVIEW OF LITERATURE:

Financial policies are needed because financial markets are not like those for other goods and services. A loan or an insurance contract is not a contemporaneous trade, but a payment made by one party in lieu of an actual or contingent return in the future (Stiglitz 1991). From a more positive perspective, motivation lies by the observation that many emerging economies pursue active development and industrial policies (Harrison and RodriguezClare, 2010). Such policies can broadly be divided into two categories: uniform policies that affect the economy as whole and targeted policies that target particular sectors or firms. Typical examples of uniform policies include the economy wide suppression of factor prices, in particular wages. From a neoclassical perspective such policies are, of course, unambiguously detrimental. Metrics of financial market development quantify the ease with which individuals in need of external finance can access the required capital and the premium they pay for these funds. The role entrepreneurship plays in linking a country’s financial market development to its subsequent economic growth is highlighted by (Levine 1997). The level of competition between financial intermediaries can impact the terms of credit to startups as well as the degree to which capital is allocated to the highest-quality projects (Levine 1997). This issue is particularly acute in developing countries where the banking system may be subject to political capture (Banerjee et al. 2003; Cole 2009). (Batra and Mahmood, 2003) reported Small and Medium Enterprise in developing countries receive support from local governments in the form of micro finance, interventions to increase private sector training, technology development, and market information. (Storey 1994) argued that customer focus was a discriminate variable, explicitly stating that high-growth companies develop strategies that connect them to their customers. These systematic relationships and direct contacts with customers enable the development of differentiation strategies that, in many cases, create custom products and services. Moreover, this strong rapport with customers also allows high-growth companies to proactively meet customer needs by introducing innovations in products and services. (Colluzi et al. 2009) confirmed that the probability of facing financing constraints is even larger for small and young businesses. In addition, there is an influence of the industry level: manufacturing and construction are more often constrained than firms in other industries. (Bougheas et al. 2006) highlighted characteristics such as firm size, age, level of profitability.

 

OBJECTIVES:

The broad objectives of the study are as follows:

1.     To identify and measure the factors behind financial policies in women entrepreneurial development.

2.     To study the role of financial policies in women entrepreneurship development in small and medium enterprises in Uttarakhand.

 

RESEARCH METHODOLOGY:

An exploratory research design was  followed to carry out the study. The present study  is based on both the primary as well as on secondary data. Primary was collected on the basis of field investigation in the state of Uttarakhand. The primary data is based on questionnaire and field survey, whereas, secondary data is collected from published and unpublished business reports, magazines, journals, books, historical studies, articles and online-data reports. The Universe/Population of the study is the small and medium scale women entrepreneurs of Uttarakhand from Dehradun, Haridwar, Nainital, Udham Singh Nagar and Haldwani. The sample size for the study comprises of 300 women entrepreneurs as per the concentration of population by stratified random sampling technique. The review of literature is completely based on the collection of secondary data.

 

Statistical Tools:

The analysis was based on data as to each aspect/ characteristics in tabulated form.  Factor analysis was used to determine the underling dimensions for the financial policies in women entrepreneurial development. Effectiveness of financial policies in women entrepreneurial development was tested with the help of test of significations besides using various other statistical techniques like correlation, chi-square, cross tabulation, etc.

Hypothesis

The broad Hypothesis of the study are as follows:

H_o: There is a significant role of financial policies in small scale women entrepreneurial development.

H_a: There is no significant role of financial policies in small scale women entrepreneurial development.

 

Analysis and Interpretation

Factor analysis was performed in order to determine the underling dimensions for the financial policies in women entrepreneurial development. Principal Component Analysis with Varimax rotation and Eigen value equal to or greater than 1 was used.  The approach was to retain items with factor loadings of equal to or above 0.50 (Hair et al., 1998).

 

Reliability Analysis

Reliability analysis was performed to test the reliability of scale and inner consistency of extracted factors. For this purpose, Cronbach’s alpha coefficient was calculated.

 

 

Cronbach’s alpha coefficient value for the data set is 0.632, which is considered acceptable as an indication of scale reliability. Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) value is .682.  The Bartlett’s test of Sphericity is significant, χ²(15)= 122.855, p=.000 and it is indicating that correlation matrix is not an identity matrix and therefore Factor Analysis is appropriate.

 

 

Variance Explained (Rotation)

Total Variance Explained
Component	Initial Eigenvalues			Extraction Sums of Squared Loadings			Rotation Sums of Squared Loadings
	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %
1	1.887	31.456	31.456	1.887	31.456	31.456	1.584	26.401	26.401
2	1.031	17.180	48.636	1.031	17.180	48.636	1.334	22.235	48.636
3	.950	15.833	64.469
4	.756	12.595	77.064
5	.712	11.862	88.927
6	.664	11.073	100.000

Extraction Method: Principal Component Analysis.

 

The Eigenvalues for factor- 1 and 2 are 1.887 and 1.031 respectively.  Percentage of variance for factor- 1 and 2 are 26.401 and 48.636 respectively. It indicates that two factors extracted have cumulative percentage up to 48.636% of the total variance.

Scree Plot  

                            

Scree Plot  involves plotting each of the eigenvalues of the factors and retaining all factors above the elbow, or break in the plot, as these factors contribute the most to the explanation of the variance in the data set. This Scree Plot determines the eigenvalues of factors for the purpose of study researcher has used. One of the most commonly used techniques is known as Kaiser’s criterion, or the eigenvalue rule. Using this rule, only factors with an eigenvalue of 1.0 or more are retained for further investigation.

 

Factor Analysis Results

Attributes	F1	F2
Need for entrepreneurship programmes has been discussed in new industrial policy	.790
Microfinance with the help of external funding contributes to entrepreneurial development	.664
Mahila Udyam Nidhi provides soft loan to women entrepreneurs	.556
Business assistants and supports from govt. Bodies are provided to women entrepreneurs		.861
Micro finance banks helps in poverty reduction and women empowerment		.596
Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises		.576

 

 

Two factors were extracted first factor F₁ and second factor F₂. First factor F₁ comprises the attributes “ Need for entrepreneurship programmes has been discussed in new industrial policy” with factor loading (.790), “Microfinance with the help of external funding contributes to entrepreneurial development” with factor loading (.664) and “Mahila Udyam Nidhi provides soft loan to women entrepreneurs” with factor loading (.556). Second factor F₂ comprises the attributes “Business assistants and supports from govt. Bodies are provided to women entrepreneurs” with factor loading (.861), “Micro finance banks helps in poverty reduction and women empowerment” with factor loading (.596) and “Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises” with factor loading (.576).

 

Exploratory factor analysis was performed in order to identify the factors behind government financial policies and its impact on small scale women entrepreneurs.  Entrepreneurial programmes, Micro finance with external funding, Soft loan from MUV, Micro finance as a support to poverty reduction, Support from other agencies like FCCI were the identified attributes with high factor loading in order to study its impact on the other factors like Age of entrepreneur, Academic qualification, Experience and Location of unit. Bivariate cross sectional analysis was performed in order to measure the relationship between construct.

 

Hypothesis	Proposed relationship		Karl Pearson’s Coefficient of Correlation     (r)	Chi- Square (χ2)	Result
Ho: There is significant impact of ‘Age’ on ‘Mahila Udyam Nidhi provides soft loan to women entrepreneurs’.	AGE OF ENTREPRENEUR	MAHILA UDYAM NIDHI PROVIDES SOFT LOAN TO WOMEN ENTREPRENEURS	r = 0.191	χ2 = 24.992	+Ve H0 Rejected
Ho: There is significant impact of ‘Age’ on ‘Micro finance banks helps in poverty reduction and women empowerment’.		MICRO FINANCE BANKS HELPS IN POVERTY REDUCTION AND WOMEN EMPOWERMENT	r = 0.071	χ2 = 19.503	+Ve H0 Rejected
Ho: There is significant impact of ‘Age’ on ‘Microfinance with the help of external funding contributes to entrepreneurial development’.		MICROFINANCE WITH THE HELP OF EXTERNAL FUNDING CONTRIBUTES TO ENTREPRENEURIAL DEVELOPMENT	r = 0.043	χ2 = 30.095	+Ve H0 Rejected
Ho: There is significant impact of ‘Age’ on ‘Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises’.		AGENCIES LIKE FICCI LADIES ORGANISATION/ NATIONAL ALLIANCE OF YOUNG ENTREPRENEURS ASSIST WOMEN IN MANAGING ENTERPRISES	r = 0.074	χ2 = 38.612	+Ve H0 Rejected
Ho: There is significant impact of ‘Age’ on ‘Need for entrepreneurship programmes has been discussed in new industrial policy’.		NEED FOR ENTREPRENEURSHIP PROGRAMMES HAS BEEN DISCUSSED IN NEW INDUSTRIAL POLICY	r = -0.011	χ2 = 28.198	-Ve H0 Rejected
Ho: There is significant impact of ‘Age’ on ‘Business assistants and supports from govt. Bodies are provided to women entrepreneurs’.		BUSINESS ASSISTANTS AND SUPPORTS FROM GOVT. BODIES ARE PROVIDED TO WOMEN ENTREPRENEURS	r = 0.043	χ2 =30.095	+Ve H0 Rejected
Ho: There is significant impact of ‘Academic Qualification’ on ‘Mahila Udyam Nidhi provides soft loan to women entrepreneurs’.	ACADEMIC QUALIFICATION	MAHILA UDYAM NIDHI PROVIDES SOFT LOAN TO WOMEN ENTREPRENEURS	r = -0.041	χ2 = 17.127	-Ve H0 Rejected
Ho: There is significant impact of ‘Academic Qualification’ on ‘Micro finance banks helps in poverty reduction and women empowerment’.		MICRO FINANCE BANKS HELPS IN POVERTY REDUCTION AND WOMEN EMPOWERMENT	r = -0.002	χ2 = 17.174	-Ve H0 Rejected
Ho: There is significant impact of ‘Academic Qualification’ on ‘Microfinance with the help of external funding contributes to entrepreneurial development’.		MICROFINANCE WITH THE HELP OF EXTERNAL FUNDING CONTRIBUTES TO ENTREPRENEURIAL DEVELOPMENT	r = 0.022	χ2 = 10.419	+Ve H0 Rejected
Ho: There is significant impact of ‘Academic Qualification’ on ‘Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises’.		AGENCIES LIKE FICCI LADIES ORGANISATION/ NATIONAL ALLIANCE OF YOUNG ENTREPRENEURS ASSIST WOMEN IN MANAGING ENTERPRISES	r = -.154	χ2 = 36.675	-Ve H0 Rejected
Ho: There is significant impact of ‘Academic Qualification’ on ‘Need for entrepreneurship programmes has been discussed in new industrial policy’.		NEED FOR ENTREPRENEURSHIP PROGRAMMES HAS BEEN DISCUSSED IN NEW INDUSTRIAL POLICY	r = 0.015	χ2 = 14.44	+Ve H0 Rejected
Ho: There is significant impact of ‘Academic Qualification’ on ‘Business assistants and supports from govt. Bodies are provided to women entrepreneurs’.		BUSINESS ASSISTANTS AND SUPPORTS FROM GOVT. BODIES ARE PROVIDED TO WOMEN ENTREPRENEURS	r =.058	χ2 =36.134	+Ve H0 Rejected
Ho: There is significant impact of ‘Experience’ on ‘Mahila Udyam Nidhi provides soft loan to women entrepreneurs’.	EXPERIENCE	MAHILA UDYAM NIDHI PROVIDES SOFT LOAN TO WOMEN ENTREPRENEURS	r = 0.093	χ2 = 17.77	+Ve H0 Accepted
Ho: There is significant impact of ‘Experience’on ‘Micro finance banks helps in poverty reduction and women empowerment’.		MICRO FINANCE BANKS HELPS IN POVERTY REDUCTION AND WOMEN EMPOWERMENT	r = -.060	χ2 = 25.76	-Ve H0 Rejected
Ho: There is significant impact of ‘Experience’on ‘Microfinance with the help of external funding contributes to entrepreneurial development’.		MICROFINANCE WITH THE HELP OF EXTERNAL FUNDING CONTRIBUTES TO ENTREPRENEURIAL DEVELOPMENT	r = 0.30	χ2 = 20.09	+Ve H0 Rejected
Ho: There is significant impact of ‘Experience’on ‘Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises’.		AGENCIES LIKE FICCI LADIES ORGANISATION/ NATIONAL ALLIANCE OF YOUNG ENTREPRENEURS ASSIST WOMEN IN MANAGING ENTERPRISES	r = 0.116	χ2 = 30.39	+Ve H0 Rejected
Ho: There is significant impact of ‘Experience’on ‘Need for entrepreneurship programmes has been discussed in new industrial policy’.		NEED FOR ENTREPRENEURSHIP PROGRAMMES HAS BEEN DISCUSSED IN NEW INDUSTRIAL POLICY	r = 0.009	χ2 = 43.49	-Ve H0 Rejected
Ho: There is significant impact of ‘‘Experience’ on ‘Business assistants and supports from govt. Bodies are provided to women entrepreneurs’.		BUSINESS ASSISTANTS AND SUPPORTS FROM GOVT. BODIES ARE PROVIDED TO WOMEN ENTREPRENEURS	r = -0.079	χ2 = 33.90	-Ve H0 Rejected
Ho: There is significant impact of ‘Location of Unit’ on ‘Mahila Udyam Nidhi provides soft loan to women entrepreneurs’.	LOCATION OF UNIT	MAHILA UDYAM NIDHI PROVIDES SOFT LOAN TO WOMEN ENTREPRENEURS	r = .002	χ2 = 50.326	+Ve H0 Rejected
Ho: There is significant impact of ‘Location of Unit’ on ‘Micro finance banks helps in poverty reduction and women empowerment’.		MICRO FINANCE BANKS HELPS IN POVERTY REDUCTION AND WOMEN EMPOWERMENT	r = -0.075	χ2 = 5.142	-Ve H0 Rejected
Ho: There is significant impact of ‘Location of Unit’ on ‘Microfinance with the help of external funding contributes to entrepreneurial development’.		MICROFINANCE WITH THE HELP OF EXTERNAL FUNDING CONTRIBUTES TO ENTREPRENEURIAL DEVELOPMENT	r = -0.085	χ2 = 23.326	-Ve H0 Rejected
Ho: There is significant impact of ‘Location of Unit’ on ‘Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises’.		AGENCIES LIKE FICCI LADIES ORGANISATION/ NATIONAL ALLIANCE OF YOUNG ENTREPRENEURS ASSIST WOMEN IN MANAGING ENTERPRISES	r = -.248	χ2 = 26.965	-Ve H0 Rejected
Ho: There is significant impact of ‘Location of Unit’ on ‘Need for entrepreneurship programmes has been discussed in new industrial policy’.		NEED FOR ENTREPRENEURSHIP PROGRAMMES HAS BEEN DISCUSSED IN NEW INDUSTRIAL POLICY	r = -.181	χ2 = 69.29	-Ve H0 Rejected
Ho: There is significant impact of ‘Location of Unit’ on ‘Business assistants and supports from govt. Bodies are provided to women entrepreneurs’.		BUSINESS ASSISTANTS AND SUPPORTS FROM GOVT. BODIES ARE PROVIDED TO WOMEN ENTREPRENEURS	r = -.183	χ2 =11.217	-Ve H0 Rejected

 

 

Among the total of 300 respondents, 36(12.0%) belong to the age group of 18-30,135(45.0%) are from the age of 31-45 (45%), 102(34.0%) comes under the age of 46-60 years and only 27(9.0%) respondents are above 60 years of age group. The value of Karl Pearson coefficient of correlation is .071 which concludes that there is less significant positive correlation between age group and Micro finance banks helps in poverty reduction and women empowerment. The tabulated value of Chi-square for 09 degree of freedom at 5% level of significance is 3.325 and calculated value of Chi-square is 19.503. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different age group on the statement Micro finance banks helps in poverty reduction and women empowerment.

 

The value of Karl Pearson coefficient of correlation is .043 which concludes that there is less significant positive correlation between age group and Micro finance banks helps in Microfinance with the help of external funding contributes to entrepreneurial development. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 30.095. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different age group on the statement Microfinance with the help of external funding contributes to entrepreneurial development. The value of Karl Pearson coefficient of correlation is .074 which concludes that there is less significant positive correlation between age group and Micro finance banks helps in Microfinance with the help of external funding contributes to entrepreneurial development. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226  and calculated value of Chi-square is 38.612. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different age group on the statement Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises. The value of Karl Pearson coefficient of correlation is -.011 which concludes that there is less significant negative correlation between age group and Need for entrepreneurship programmes has been discussed in new industrial policy. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 28.198. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different age group on the statement Need for entrepreneurship programmes has been discussed in new industrial policy. The value of Karl Pearson coefficient of correlation is .043 which concludes that there is less significant positive correlation between age group and Business assistants and supports from govt. Bodies are provided to women entrepreneurs. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 30.095. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different age group on the statement Business assistants and supports from govt. Bodies are provided to women entrepreneurs. Among the total of 300 respondents, 18(6.0%) are having High School as education qualification, 69(23.0%) are having intermediate as education qualification, 153(51.0%) are graduates and 60(20%) respondents are post graduates. The value of Karl Pearson coefficient of correlation is -0.041 which concludes that there is less significant negative correlation between academic qualification and Mahila Udyam Nidhi provides soft loan to women entrepreneurs. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 69.127. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different education qualification on the statement Mahila Udyam Nidhi provides soft loan to women entrepreneurs. The value of Karl Pearson coefficient of correlation is -0.002 which concludes that there is less significant negative correlation between academic qualification and Micro finance banks helps in poverty reduction and women empowerment. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 17.174. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different academic qualification on the statement Micro finance banks helps in poverty reduction and women empowerment. The value of Karl Pearson coefficient of correlation is .022 which concludes that there is less significant positive correlation between academic qualification and Micro finance banks helps in Microfinance with the help of external funding contributes to entrepreneurial development. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 10.419. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different academic qualification on the statement Microfinance with the help of external funding contributes to entrepreneurial development. The value of Karl Pearson coefficient of correlation is -.154 which concludes that there is less significant negative correlation between academic qualification and Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 36.675. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different academic qualification on the statement Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises. The value of Karl Pearson coefficient of correlation is .015 which concludes that there is less significant positive correlation between education qualification and Need for entrepreneurship programmes has been discussed in new industrial policy. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 14.44. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different education qualification on the statement Need for entrepreneurship programmes has been discussed in new industrial policy. The value of Karl Pearson coefficient of correlation is .058 which concludes that there is less significant positive correlation between education qualification and Business assistants and supports from govt. Bodies are provided to women entrepreneurs. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 36.134. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different education qualification on the statement Business assistants and supports from govt. Bodies are provided to women entrepreneurs. Among the total of 300 respondents, 150(50.0%) are having 0-5 years of experience, 84(28.0%) are having 6-10 years of experience, 36(12.0%) are having 11-15 years of experience and 30(10%) are having above 16 years of experience. The value of Karl Pearson coefficient of correlation is .093 which concludes that there is less significant positive correlation between Experience and Mahila Udyam Nidhi provides soft loan to women entrepreneurs. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 17.77. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different experience on the statement Mahila Udyam Nidhi provides soft loan to women entrepreneurs. The value of Karl Pearson coefficient of correlation is -.060 which concludes that there is less significant negative correlation between experience and Micro finance banks helps in poverty reduction and women empowerment. The tabulated value of Chi-square for 09 degree of freedom at 5% level of significance is 3.325 and calculated value of Chi-square is 25.76. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different experience on the statement Micro finance banks helps in poverty reduction and women empowerment. The value of Karl Pearson coefficient of correlation is 0.30 which concludes that there is less significant positive correlation between experience and Micro finance banks helps in poverty reduction and women empowerment. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 20.09. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different experience on the statement Microfinance with the help of external funding contributes to entrepreneurial development. The value of Karl Pearson coefficient of correlation is .0116 which concludes that there is less significant positive correlation between experience and Micro finance banks helps in Microfinance with the help of external funding contributes to entrepreneurial development. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226  and calculated value of Chi-square is 30.39. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different experience on the statement Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises. The value of Karl Pearson coefficient of correlation is 0.009 which concludes that there is less significant positive correlation between experience and Need for entrepreneurship programmes has been discussed in new industrial policy. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 43.49. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different experience on the statement Need for entrepreneurship programmes has been discussed in new industrial policy. The value of Karl Pearson coefficient of correlation is -.079 which concludes that there is less significant negative correlation between experience and Business assistants and supports from govt. Bodies are provided to women entrepreneurs. The tabulated value of Chi-square for 12 degree of freedom at 5% level of significance is 5.226 and calculated value of Chi-square is 33.90. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different experience on the statement Business assistants and supports from govt. Bodies are provided to women entrepreneurs. Among the total of 300 respondents, 264 (88.0%) respondents are located inside town and rest 36 12.0%) respondents are located outside town. The value of Karl Pearson coefficient of correlation is .002 which concludes that there is less significant positive correlation between location of unit and Mahila Udyam Nidhi provides soft loan to women entrepreneurs. The tabulated value of Chi-square for 4 degree of freedom at 5% level of significance is .711 and calculated value of Chi-square is 50.326. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different unit locations on the statement Mahila Udyam Nidhi provides soft loan to women entrepreneurs. The value of Karl Pearson coefficient of correlation is -.075 which concludes that there is less significant negative correlation between location of unit and Micro finance banks helps in poverty reduction and women empowerment. The tabulated value of Chi-square for 3 degree of freedom at 5% level of significance is .352 and calculated value of Chi-square is 5.142. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of unit location on the statement Micro finance banks helps in poverty reduction and women empowerment. The value of Karl Pearson coefficient of correlation is -0.085 which concludes that there is less significant negative correlation between location of unit and Micro finance banks helps in Microfinance with the help of external funding contributes to entrepreneurial development. The tabulated value of Chi-square for 4 degree of freedom at 5% level of significance is .711 and calculated value of Chi-square is 23.326. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different unit location on the statement Microfinance with the help of external funding contributes to entrepreneurial development. The value of Karl Pearson coefficient of correlation is -.248 which concludes that there is less significant negative correlation between location of unit and Micro finance banks helps in Microfinance with the help of external funding contributes to entrepreneurial development. The tabulated value of Chi-square for 4 degree of freedom at 5% level of significance is .711 and calculated value of Chi-square is 26.965. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different unit location on the statement Agencies like FICCI ladies organisation/ national alliance of young entrepreneurs assist women in managing enterprises. The value of Karl Pearson coefficient of correlation is -.181which concludes that there is less significant negative correlation between location of unit and Need for entrepreneurship programmes has been discussed in new industrial policy. The tabulated value of Chi-square for 4 degree of freedom at 5% level of significance is .711 and calculated value of Chi-square is 69.29. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of location of unit on the statement Need for entrepreneurship programmes has been discussed in new industrial policy. The value of Karl Pearson coefficient of correlation is -.183 which concludes that there is less significant negative correlation between location of unit and Business assistants and supports from govt. Bodies are provided to women entrepreneurs. The tabulated value of Chi-square for 4 degree of freedom at 5% level of significance is .711 and calculated value of Chi-square is 11.217. Since calculated value of chi-square is greater than tabulated value therefore null hypothesis is rejected or it can be concluded that there is no significant impact of respondents of different unit location on the statement Business assistants and supports from govt. Bodies are provided to women entrepreneurs.

Conclusion

Entrepreneurship is not a male prerogative. It’s been evidenced that women entrepreneurship has gained momentum in the last three decades with the increase in the number of women enterprises and their substantive contribution to the economic growth in the country. The foreign Direct Investment Policy, technological innovations and manufactured exports in the Asia Pacific region have brought a wide range of economic and social opportunities for women entrepreneurs. Women enter entrepreneurship due to economic factors which pushed them to be on their own and urge them to do something independently. Women prefer to work from their own work residence, difficulty in getting suitable jobs and desire for social recognition motivate them towards self-employment. In order to examine the role of financial policies in women entrepreneurship development exploratory factor analysis was performed. Exploratory factor analysis identified two factors comprises of attributes like provision of soft loans to women entrepreneurs, Bank help in poverty reduction and women entrepreneurial development, Help from external funding for women entrepreneurial development, Need for entrepreneurship programmes in new industrial policy and Support from government for new ventures. A cross sectional bi variate analysis was performed between the identified factors and Age of entrepreneurs, education qualification, experience and location of unit. There is a significant positive relationship between age of entrepreneurs and provision of soft loans to women entrepreneurs, Bank help in poverty reduction and women entrepreneurial development, Help from external funding for women entrepreneurial development, Need for entrepreneurship programmes in new industrial policy and Support from government for new ventures. With different age group of entrepreneurs i.e. as the age changes there is change in the perception of entrepreneurs regarding the various financial policies of government regarding the entrepreneurial development which mainly includes the soft loan, reduction of poverty, external funding and need of entrepreneurial development programmes in new financial policies. But there is no impact of age of entrepreneurs on soft loans to women entrepreneurs, Bank help in poverty reduction and women entrepreneurial development, Help from external funding for women entrepreneurial development, Need for entrepreneurship programmes in new industrial policy and Support from government for new ventures. Entrepreneurs of different academic qualification show a mix of negative and positive relationship with the role of financial policies in entrepreneurial development. Entrepreneurs of high academic qualification have shown that there is decrease in soft loan policies and reduced assistance of bank for poverty reduction and women entrepreneurial development.   Entrepreneurs of high academic qualification think that there is need for entrepreneurship programmes in new industrial policy and Support from government for new ventures. Entrepreneurs of different academic qualification does not have any impact on soft loans to women entrepreneurs, Bank help in poverty reduction and women entrepreneurial development, Help from external funding for women entrepreneurial development, Need for entrepreneurship programmes in new industrial policy and Support from government for new ventures. Entrepreneurs of different academic experience think that there is less support from government agencies for starting new ventures in case of women entrepreneurs. At the same entrepreneurs of different academic experience shoed that there is increase in soft loans to women entrepreneurs, Bank help in poverty reduction and women entrepreneurial development, Help from external funding for women entrepreneurial development. There is no impact of Entrepreneurs of different academic experience on soft loans to women entrepreneurs, Bank help in poverty reduction and women entrepreneurial development, Help from external funding for women entrepreneurial development, Need for entrepreneurship programmes in new industrial policy and Support from government for new ventures. The industrial policies are entirely independent of academic experience. The results conclude that there are many roadblocks in this journey of women entrepreneurs going uphill, still there are many incentives which lurks women into taking the big leap. For the growth and development of women entrepreneurs their active participation is required to be accelerated entrepreneurial development of women. Hence, a congenial environment is needed to be created to enable women to participate actively in the entrepreneurial activities. There is a need of Government, non- Government, promotional and regulatory agencies to come forward and play the supportive role in promoting the women entrepreneur in India.

 

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Accepted on 22.12.2016          © A&V Publications all right reserved