#IDWGS Essay - Government's Role in Empowering Female Entrepreneurs and Propelling Scientific Innovation and Sustainability in Developing Countries

Entrepreneurship is crucial in developing countries, particularly for women, as it can drive economic growth and innovation. However, distorted markets often hinder the proper functioning of entrepreneurs. Policy goals should focus on entrepreneurship to promote private sector development and legitimate wealth creation. In many developing countries, public-sector employment can drain economic growth, so entrepreneurial policy can encourage private-sector development. Obstacles faced by female entrepreneurs include social constraints, gender discrimination, financial constraints, marketing issues, conflict, and lack of education. In India, women are often treated as inferior to men, with marriage being the primary career choice. Women's entrepreneurship is underdeveloped due to the perception that it is a male activity. This study aims to analyze the government's role in empowering women entrepreneurs and the challenges they face. Women entrepreneurs are becoming a significant tool for women's empowerment, raising awareness and providing opportunities for future women. Policymakers should make decisions that empower and provide more opportunities for women entrepreneurs.

The general objective of the conceptual study is to investigate the role of government in empowering female entrepreneurs, examining the challenges they face, factors encouraging their business ventures, and their entrepreneurial performance, while also assessing how government policies and support initiatives contribute to scientific innovation and sustainability in developing countries. Through this research perspective, the study aims to provide comprehensive insights and recommendations for advancing both female entrepreneurship and sustainable scientific innovation within the context of developing nations.

Keywords: Women entrepreneurs, entrepreneurship, developing countries, economic development, Business, scientific innovation and sustainability

2. Literature review:

The literature review offers valuable insights into the contemporary issues encompassing entrepreneurship and the empowerment of women in India. Tiwari and Tiwari (2007) explore the dismantling of social structures, particularly focusing on the exclusion of women from entrepreneurship and their limited contribution to household economies. They underscore the potential of entrepreneurship to bolster women's self-assurance, aspirations for an improved quality of life, and effective communication skills through healthy competition.

Jain and Jain (2008) stress the vital role of education in empowering women, specifically in higher education. They champion policies designed to enhance women's access to higher education as a route to empowerment. Similarly, Lal (2014) emphasizes the unimportance of education, especially at the higher level, in disempowering women by disregarding awareness among stakeholders about gender-related issues.

Singh and Seema (2017) illuminate the difficulties encountered by rural women entrepreneurs in India. They identify obstacles such as limited education and awareness, family conflicts, managerial issues, mobility constraints, socio-cultural barriers, and difficulties in obtaining finance and raw materials. Their work emphasizes the necessity for interventions to address these challenges and uplift the status of women entrepreneurs.

Mehta and Jain (2003) research the role of banking institutions in enabling the economic development of women. They stress the significance of government programs aimed at women's development and advocate for their effective implementation. They also highlight the assistance provided by banking institutions to women entrepreneurs, including support with project reports to streamline the loan approval process and ensure access to finance for micro-entrepreneurs.

3. Research Methodology

A meta-analysis is a tool for consolidating the results of scattered research and achieving a new perspective to expand the boundaries of knowledge (Shafiee Saeed et al., 2013). This research has been conducted using the meta-analysis method, and in this article, a review of the research background titled “Government Role in Empowerment of Female Entrepreneurs in Developing Countries" has been carried out. Meta-analysis is based on combining the results of various past research in this field and extracting new findings for a new study.

4-Economic Growth in Developing Countries:

Research shows that developed countries with favorable economic growth tend to have a higher level of innovative entrepreneurship. This is due to the provision of infrastructure, financial, and business laws that encourage creativity. High economic growth also creates new business opportunities, attracting entrepreneurs to access markets with competitive products. In developed countries, welfare conditions and access to facilities facilitate the emergence of personal and organizational capabilities and creativity. However, the effectiveness of growth on nascent entrepreneurship in developing countries is more influenced by financial empowerment and access to necessary resources. This indicates a difference in nature between developing and developed countries in this regard (Alizadeh et al., 2020).

Women entrepreneurs:

A woman entrepreneur is someone who, either alone or in partnership with one or more individuals, initiates a business, is eager to accept its financial, managerial, and social responsibilities and risks, and actively participates in its day-to-day management activities" (Badzian et al., 2020).

Jawaharlal Nehru emphasizes the importance of women entrepreneurs in a nation's growth and development. Women are the backbone of society and play a crucial role in economic, social, cultural, and entrepreneurial fields. Encouraging women for entrepreneurship can help achieve this. In India, women are surfacing and contributing to the national economy, breaking societal barriers and entering various fields. Despite facing social problems due to a male-dominated culture, Indian women have successfully entered various industries, such as telecommunication, pickle making, mass media, cable making, and infrastructure. This transformation is attributed to education, independence, lifestyle changes, and government support. Women entrepreneurs often face male entrepreneurs and stand up for their rights.

6. The Role of Governments in Empowering Women Entrepreneurs:

One of the indicators of national economic revitalization and social development is the participation of women and how they contribute to economic structures (Golkarfarad et al., 2019).

The business regulations index positively influences nascent entrepreneurship by improving business conditions and reducing bureaucratic barriers. Governments, through secure political, social, and economic environments and incentives like low-interest loans and tax breaks, facilitate private sector entry into economic activities, ensuring sustainable growth through the dynamicity of economic agents. (Alizadeh et al., 2020).

Implementing a national system of skills training, apprenticeships, and entrepreneurial vocational training at universities, science parks, vocational schools, and applied sciences is recommended for human development and economic production, generating skilled, operational, creative, and idea-generating human capital. Rural women entrepreneurship is one of the important solutions for utilizing the capacities and capabilities of local communities, and with appropriate policies and programs, it is a significant step towards sustainable development (Badzaban et al., 2020).

7. Challenges Ahead for Women Entrepreneurs:

Women's activities in the field of entrepreneurship have always been faced with challenges and obstacles that require deep consideration to reduce these barriers and develop the existing capacities in this sector:

Equipment weaknesses (lack of adequate space, high equipment prices).

Cultural problems (lack of trust in each other, unwillingness to take risks for expanding work).

Lack of economic support and policy weaknesses (lack of government support for producers in developing their production units, lack of insurance companies' support for products).

Inefficiency of banking operations (high interest rates and bank loan rates).

Marketing and market distribution problems (severe market fluctuations during sales, abandoning production due to aging and reduced physical abilities, and family problems) (Ehsani Far et al., 2018).

8. Motivational Factors for Women Entrepreneurs:

Characteristics of women entrepreneurs include:

Vision: Having a vision and being purposeful is one of the most important indicators of entrepreneurship.

Determination: Having a strong determination among entrepreneurs, especially women entrepreneurs, who are determined to adhere to their selected ideas and opportunities and remain committed to the work they have chosen.

Focus: An entrepreneur woman must use maximum energy, capacity, and available resources to achieve the defined vision with a focus.

Motivation: The need for self-realization is one of the most important motivations for entrepreneurs in realizing their vision (Aryana et al., 2020).

Small businesses contribute to economic and social growth by reducing unemployment and creating job opportunities. Rural women's businesses foster financial independence, self-reliance, self-reliance, economic growth, savings, financial risk-taking, and increased awareness of economic concepts and management laws (Yaghoubi Farani et al., 2015). These entrepreneurial rural businesses also have social effects such as increasing levels of technical, managerial, and financial skills, awareness of how to deal with customers, entering into social and cultural activities, enhancing social roles and bases, building confidence in managing business capabilities, gaining knowledge and work experiences, and improving their quality of life.

9. Recommendations

In this regard, the following mechanisms can be proposed:

Allocating more low-interest credits specifically for rural women entrepreneurs by the government and support funds for entrepreneurship and close monitoring of their distribution and consumption to expand production levels (services) and business space.

Facilitating greater and easier access of rural women to experts through their regular and periodic visits to villages, visiting women's businesses, identifying their problems, and providing the necessary guidance to them.

Increasing vocational training courses and entrepreneurship workshops by governmental and non-governmental institutions.

Providing appropriate infrastructures and conditions to facilitate rural women's easy access to material, physical, informational, and human resources.

Creating suitable platforms for marketing, establishing and developing markets and exhibitions, and selling the produced products.

10. Findings:

Importance of Women Entrepreneurs: Women entrepreneurs play a crucial role in economic growth and development, contributing significantly to the global business environment. Entrepreneurship is seen as a means to achieve economic growth, create wealth, and provide alternatives to public-sector employment.

Challenges Faced by Women Entrepreneurs: Female entrepreneurs encounter various obstacles such as social constraints, gender discrimination, financial constraints, marketing problems, role conflict, and lack of education. In India, particularly in rural areas, women face additional challenges due to male dominance and societal norms restricting their activities and career choices.

Role of Government: The government plays a pivotal role in empowering women entrepreneurs through policy interventions, financial assistance, skills training, and creating a conducive business environment. However, current interventions may not be sufficient to overcome all obstacles faced by female entrepreneurs.

Motivational Factors: Successful women entrepreneurs exhibit characteristics such as vision, determination, focus, and motivation. These traits drive them to pursue their entrepreneurial goals despite challenges and setbacks.

Economic Growth and Women Entrepreneurship: Empirical evidence suggests a positive relationship between economic growth and innovative entrepreneurship. Developed countries provide infrastructure, financial support, and conducive business laws, fostering entrepreneurial activities and economic growth.

11. Conclusion:

The active participation of women entrepreneurs not only contributes to economic growth but also promotes social and cultural development. However, women entrepreneurs encounter numerous challenges that hinder their entrepreneurial journey. While the government plays a crucial role in empowering women entrepreneurs through policy support and interventions, there is a need for continuous evaluation and improvement of existing initiatives. By addressing the challenges faced by women entrepreneurs and providing them with the necessary resources and opportunities, society can benefit from their contributions to economic and social development. Overall, supporting and empowering women entrepreneurs is essential for fostering inclusive growth and sustainable development.

References:

Alizadeh, M., & colleagues. (1399). The Impact of Business Environment on Entrepreneurship Development and Economic Growth of Developing Countries. Winter 1399, Vol. 8, No. 4.

Aryana, A., Dastiar, Z., & Tousli, A. (2020). The Role of Women Entrepreneurs in Development and Transformation of the Country: A Case Study of Hormozgan Province.

Badzian, F., Rezaei Moghadam, K., & Fatemi, M. (1399). Entrepreneurship in Small and Medium-Sized Rural Businesses in Fars Province: Applying the Resilience Scale in the Business Lifecycle. Entrepreneurship Strategies in Agriculture, 7(13), 23-12.

Ehsani Far, T., Shahmoradi, M., Mardaiyan, P., Rostami, F., & Farahmand, K. (1397). Inhibitors of Rural Women's Entrepreneurship Development: A Case Study of Women Entrepreneurs in Lahijan County. Entrepreneurship in Agriculture Journal, 5(1), Spring 1397.

Ganesamurthy, V. S. (n.d.). India: Economic Empowerment of Women (pp. 135-144). New Century Publications, New Delhi.

Golkarafard, M., Rezaei Moghadam, K., & Fatemi, M. (1398). A Comparative Exploration of Rural Women's Entrepreneurship in Fars Province. Entrepreneurship Strategies in Agriculture, 6(12), 47-35.

Kapur, P. (2001). Empowering the Indian Women. Ministry of Information and Broadcasting, Government of India.

Sadi, H. (1392). Economic Evaluation of Rural Women's Small Businesses (Case Study: Hamedan Province). Agricultural Economics, 7(3), 41-85.

Vijya, M. (2007). Problems and Prospects of Women Entrepreneurs in Rural Areas.

Website links:

https://msme.gov.in/node/1768
https://cdr.lib.unc.edu/indexablecontent/uuid:aaa16cd4-e931-4ad6-9c83-0532040e53ec
https://asiafoundation.org/resources/pdfs/LegalEmpowerment.pdf
https://www.osce.org/odihr/forum-women-empowerment-budapest?download=true saco.com/app/uploads/2016/03/Womens_Economic_Empowerment_FINAL-ENGLISH_online-version.pdf

About the Author

My name is Fatmeh Halimi, born in 1996 in Afghanistan. I hold a bachelor's degree in Economics with a focus on Banking and Commerce from Bamyan City, Afghanistan. Currently, I am pursuing a master's degree in Business Administration at Ahlybayt  International University in Tehran, Iran, and I am in my final semester.

Co-author: I am Amina Hassani, hailing from Bamyan, Afghanistan. I hold a Bachelor's degree in Economics from the  Banking and Commerce Department at Bamyan University. Furthering my education, I pursued an MBA with specializations in Marketing and HR from Calicut University in Kerala, India. Currently, I am pursuing my Ph.D. in Marketing Management at Cochin University of Science and Technology, also located in Kerala, India. My goal is to be a source of positive change, both in my country and beyond.