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"Market Opportunity" & "Necessity" driving women entrepreneurs in TN: IIT researchers

IIT-Madras researchers have found "market opportunity" and "necessity" as significant factors driving women entrepreneurs in Tamil Nadu. According to the 6th Economic Census (2016), Tamil Nadu has the maximum number of women entrepreneurs.

IIT Madras Researchers Market Opportunity Women Entrepreneurs in Tamil Nadu
IIT Madras Researchers Market Opportunity Women Entrepreneurs in Tamil Nadu

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Published : Nov 23, 2021, 4:10 PM IST

Updated : Nov 23, 2021, 4:30 PM IST

Chennai: Researchers at the Indian Institute of Technology Madras (IIT-Madras) have found "market opportunity" and "necessity" as significant factors driving majority of women entrepreneurs in Tamil Nadu. Economic motivations are not the primary reasons to venture into entrepreneurship, the study found.

The study conducted among women entrepreneurs representing the Ministry of Micro, Small & Medium Enterprises (MSMEs) in Tamil Nadu, which has the maximum number of women entrepreneurs, according to the 6th Economic Census (2016), aimed to understand why and how women entrepreneurs chose entrepreneurship.

The researchers found that passion, impulse to create something new, affinity for challenges, creation of social values, desire for work-life balance, social support (from the spouse and family), and institutional support (such as government aid and subsidies), were among the factors that were found to motivate women to get into business.

The findings of the study conducted by Dr Rupashree Baral, associate professor and Jasmine Banu, doctoral scholar of the Department of Management Studies, IIT Madras, were published as a research paper in the peer-reviewed journal of Enterprising Communities: People and Places in the Global Economy.

Highlighting the need for such studies, Dr Rupashree Baral said, “women’s entrepreneurship is a major step contributing towards the nation’s economy, innovation, growth, and quality of life. Considering the important role of women entrepreneurs in socio-economic development, it is critical to investigate the factors that motivate, facilitate, and constrain women’s entrepreneurial activities. Such an investigation is likely to foster the well-being of women entrepreneurs, and develop better initiatives, policies, and programs towards nurturing a conducive environment for women entrepreneurs and reduce the gender gap in society."

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The study found that conducive economic, socio-cultural context of the state and educational opportunities contribute to the number of women-owned enterprises in Tamil Nadu. Factors that helped women entrepreneurs in Tamil Nadu to survive and grow in their business include their ability and experience, networking opportunity, support from family, and institutional support, the study said.

According to the study, most women entrepreneurs stated that having a business gave them a sense of accomplishment, financial security, career satisfaction, flexible working hours, and a sense of happiness to have the opportunity to influence others' well-being.

The study also found the growth of women-run businesses is significantly dependent on the individual’s social support and formal institutional support and that entrepreneurship enhances the quality of life, mental health, and well-being of women.

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The researchers recommended providing women entrepreneurs with personality development, skills training, unique technical and entrepreneurship development programs; ensure representation in trade fairs to connect them with potential customers and change society's attitude towards women by portraying women’s entrepreneurial endeavours in media, educational and academic literature.

Last Updated : Nov 23, 2021, 4:30 PM IST

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