Women entrepreneurship

Women Entrepreneurship

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Mr. P RamakrishnaUtthishta Yekum Fund

Its not our abilities that show what we truly

are -Its our choices!

- J K Rowling

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Our Life Depends on

Our Choices and not on

Our abilities

Why Choose Entrepreneurship?

• To fulfill your dreams

• To work for yourself and to be in control of

your life

• To empower others and to be an

inspiration

• To contribute to the economic growth of

the nation

• To get financial independence

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Risks & Challenges

• It’s a Patriarchal Society!• Most women have to balance raising a family with

running their business• Financial Challenges in running a business coupled

with lack of easy credit• Hard to sell in a predominantly male dominated

market• Networking is crucial to the business but not all

women find it easy• Most women are both less aggressive and less

assertive which hinders their deal making ability• Destroy the wealth created otherwise also in case of

failures and impact the family relations.

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Venture Capital

Entrepreneurship Phases

Discontinuation of business

Potential Entrepreneurs

IntentionsNascent

EntrepreneurNew

EntrepreneurEstablished

Entrepreneur

5*Global Entrepreneurship Monitor 2013 Global Report

State of Women in Enterprises

• 3 million MSMEs in India with full or partial ownership, which

represent 10% of all MSMEs in India

• These contribute 3.09% of industrial output and employ over 8

million people

• 78% of women enterprises belong to service sector

• 98% of these businesses are micro-enterprises

• Over 51% of the MSMEs are located in the states of Kerala,

Karnataka, Tamil Nadu and West Bengal 6

Source: IFC report on Improving Access to Finance for Women owned businesses in India

Support Programs for Women Entrepreneurship

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INR 2.31trillion of financing was

extended to women owned

MSMEs in 2012 through various

schemes

Source: IFC report on Improving Access to Finance for Women owned businesses in India

Woman Entrepreneur Support

Programs in IndiaS.No Scheme Agency/Bank Details

1TREAD scheme for women

Ministry of Small and Medium Enterprises

30 percent of total project cost as government grant, 70 percent by the appraising institution

2Bharatiya Mahila Bank

Bharatiya Mahila Bank

Working capital and term loan up to INR 20 Cr. Specific Loan schemes for setting up home catering, beauty salons and day-care centers. Since the bank do not insist on collateral, the loans of up to INR 1 Cr are insured with Credit Guarantee Fund Trust for MSMEs

3ALEAP and CGTSI

Andhra BankCredit facility up to Indian rupees 10 million without collateral security or third party guarantee for a tenure of five years.

4Akshaya Mahila Arthik Sahay Yojna

Bank of BarodaMovable and immovable asset-based term loans and working capital limits. 8

S.No Scheme Agency/Bank Details

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Schemes for professional and self-employed women

Oriental Bank of Commerce

Term Loan - Maximum Indian rupees 500,000including working capital limit of Indian rupees 100,000 for Five to seven year tenure

6Dena Shakti Scheme

Dena BankTerm loans and working capital limits with a ceiling of Indian rupees 2 million

7Stree Shakthi Package

State Bank of India

Interest concessions of 5 percent based on business enterprise for self-employed women

8 Cent Kalyani Central Bank Loans up to Indian rupees 10 million without any collateral security or third party guarantee.

9Marketing Fundfor Women (MFW)

SIDBI

Provides assistance to women entrepreneurs andorganizations involved in marketing products manufactured by women entrepreneurs to increase their reach in domestic and international markets.

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Programs in India


Programs - Global

• Goldman Sachs 10,000 Women is a global initiative that fosters economic growth by providing

women entrepreneurs around the world with a business and management education, mentoring

and networking, and access to capital. To date, the initiative has reached over 10,000 women from

across 43 countries through a network of 90 academic and non-profit partners.

• Women 2.0 is the world’s largest community-driven media brand designed for the next

generation of technology leaders. It creates content, community and events for aspiring and

current innovators in technology

• Golden Seeds is an angel investment group with more than 245 investors focused on the

opportunities of women-led businesses

• Project Eve – offers mentorship, networking, and support to other women to help bring more

women into the business world

• VC funds targeting women entrepreneurs - Forerunner Ventures, Belle Capital, Illuminati

Ventures, Isabelle Capital, The Women’s Venture Capital Fund and Pipeline Angels

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Role of Venture Capital in FosteringWomen Entrepreneurship

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What is Venture Capital

• Money invested in non-traditional startup

ventures by experienced investors/institutions

• What do the investors get ?

• A stake in equity

• A say in the decisions of the company

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VC Focused sectors

• Opportunity for Innovation

• Scaling up-Global level

• Value multiplication

• Unorganized to Organized

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Capital Supply Chain

Promoters Friends and family

Seed Funding

Angel Funding

Early Stage Funds

Growth Funds

Inception

Prototype testing

Product roll out

Rapid Growth

Expansion

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VCs at a glance

• The global VC investment in the year 2013

totaled USD 48.5 bn

• Global VC hotbeds – USA, Europe, China, Israel and India

• India ranks fourth in the global VC rankings and accounts for 3.7%

• India has seen the highest participation from angels and incubators

next only to Canada

• Survey shows that 62% of the Indian entrepreneurs believe access to

VC funding has improved

• Year 2013 saw a few good exits- just between four companies

Justdial, Redbus, GlobalLogic and Prizm, over US$ 2 billion of market

value was affected

• Impact investing generated around $100 million (roughly Rs 530 crore)

of capital in India in 2012 and is said to be growing at 30% per annum

15Sources : E&Y Global VC Insights and Trends Report 2013; Tech Crunch; Wikipedia

Startup Mood*

• The average age group of entrepreneurs is seen to be

25-34 yrs

• Startup Mood in India :

• 42% believe that there are opportunities to start a business

• 56% believe they have the capabilities to start a business

• 40% fear failure

• 23% would want to start a business in next 3 years

• 62% see entrepreneurship as a good career choice

• 70% feel that entrepreneurs enjoy high status

• 61% feel that successful entrepreneurs receive media

attention

16*Global Entrepreneurship Monitor 2013 Global Report

Is Venture Capitalist a Boss

Or a team player?

Knowledge Capital

• VCs v/s crowd funding : VCs not only invest

their money but also their valuable time

• Entrepreneurs these days need thought leaders and operational

experts to guide them to success

• VCs guide to ensure superior product development and in testing

the marketability of the product

• Most VCs invest in sectors that they have an expertise in, which

immensely benefits the startup

• Guidance in early Stages of business transformation

• VCs guide the startups to create their most value asset – the

IP18

Human Capital

– Hiring and retaining the right talent is one of the major

challenges faced by a startup

– A funded company scores higher on credibility

– Most funded startups have ESOPs as their cornerstone to

attract and retain talent

– Studies have shown that post VC investment,

• Employment growth in a company is 6 times

higher

• Employees compensation increases due to better

cash flows

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Networking

• VCs have a good network of other VCs, successful

entrepreneurs and technology/business strategy experts

• Entrepreneurs can benefit immensely from these connections

• VCs facilitate connections that could help startups get their

potential clients or potential investors

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Financial Capital

• VCs provide the much needed risk capital to entrepreneurs

• Support experimentation and risk taking

• VCs at later stages help sustain the business

• 90% of the startups fail due to poor cash flow management,

according to Dunn & Bradstreet

• VC also bring in financial discipline to a startup by guiding

them to stick to their budgets and to optimize their sales

cycle

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Case Study – Kiran Muzumdar Shaw

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• Chairman and Managing Director of Biocon Limited

• Was recently awarded the Othmer Gold Medal, for outstanding contributions to the progress of science and chemistry in 2014

• Mazumdar studied Malting and Brewing in Australia in 1974 and was the only woman enrolled in the brewing course, and the top of her class

• She worked as a trainee brewer in Carlton and United Breweries, Melbourne and as a trainee at Barrett Brothers and Burston, Australia.

• However, when she investigated the possibility of further work in Bangalore or Delhi, she was told that she would not be hired as a master brewer in India because "It's a man's work.”She began to look abroad, and was offered a position in Scotland.

• She was offered the job of establishing Biocon’s operations in India, which she accepted and started with a seed capital of INR 10,000 in 1978. She owned 70% of the venture

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• Initially, she faced credibility challenges because of her youth, gender and her untested business model

• Funding was a problem: no bank wanted to lend to her, and some requested that her father be a guarantor

• She also found it difficult to recruit people to work for her start-up. Her first employee was a retired garage mechanic

• As well, she faced the technological challenges associated with trying to build a biotech business in a country with a shaky infrastructure

• The company's initial projects were the extraction of papain and isinglass

• Within a year of its inception, Biocon India was able to manufacture enzymes and to export them to the United States and Europe, the first Indian company to do so

• At the end of her first year, Kiran Mazumdar used her earnings to buy a 20-acre property, dreaming of future expansion.

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Entrepreneurs should always remember!

“I always believed

in myself”

Tyrone Bogues

Shortest NDA Basket

Ball Player

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Questions?

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Education

Women entrepreneurship