Determinants of Profitability of the Microenterprises led by Women Micro Entrepreneurs: Evidence from Mumbai Slums

The rural and cottage industries play an important role in rural areas, resource utilisation is enhanced, employment is generated especially for traditional artisans and the weaker sections of society (Industrial Development & Progress after Independence, 2010). MSMEs’ greater labour intensity means that job creation entails lower capital costs than in larger firms which are particularly important for developing countries and economies with high unemployment. The SMEs play a major role in economic growth in the OECD area, providing the source for most new jobs. Over 95 percent of OECD enterprises are SMEs, which account for 60 percent-70 percent of employment in most of the countries. Productivity, growth and consequently economic growth are strongly influenced by the competition inherent in the birth and death, entry and exit of smaller firms. These SMEs are located in the top 5 percent-10 percent of all growing firms. At present, SMEs contribute between 25 percent-35 percent of world exports of manufactures and account for a small share of foreign direct investment. More than 95 percent of enterprises across the world are SMEs, which accounts for approximately 60 percent of private sector employment. Japan has the highest proportion of SMEs among the industrialised countries, accounting for more than 99 percent of total enterprises (EIU 2010). MSMEs have emerged as a highly dynamic and vibrant sector of Indian economy in last 5 decades. The sector besides

Small business are said to be the backbone of the United States economy. It said that small businesses contribute to growth and vitality in the specific area of the United States economic development. Small businesses play a huge role in how the business world is shaped. Entrepreneurs are smart, creative and innovative however, those same entrepreneurs need to have some knowledge that the study of microeconomics focuses on. With the study of microeconomics, their product or future business will succeed in an economic view point.

Entrepreneurship is the activity of creating a new business or enterprise. It is an essential and significant action in the growing job market (Bednarzik, 2000). Entrepreneurship has become important to all the countries whether they developed or developing ones. It is a basis of economic growth and employment creation (Thurik, Carree, Van Stel, Audretsch, 2008). It involves opportunity recognition or creation, collecting resources to track the opportunity, and managing actions that bring a new venture into existence. Some ventures are complete start-ups, while other ventures are pursued within an existing organization (Enz and Harrison, 2010). Entrepreneurs accept the personal financial risks that drive with having their own business. On the other hand, entrepreneurs benefit directly from the

Entrepreneurship is difficult to define throughout its history research. Even nowadays, this concept is still a debatable point (Rajendra, et al., 2017). Based on four decades of research, Gartner (1988) concludes that entrepreneurs are founders of new firms. Shane and Venkataraman (2000) consider entrepreneurship as “a new venture’s risk-taking endeavor seeking an opportunity” and Fortunato (2014) adds innovative value into the concept of entrepreneurship. Thus, research on the definition of entrepreneurship continue. According to those diverse views, I will interpret six unique entrepreneurial characteristics and theoretically analyze each one. Risk taker, need for achievement and proactivity as my strengthens will be illustrated with my experience. Innovativeness, internal locus of control and tolerance for ambiguity are my weaknesses, thus I will describe relevant successful Entrepreneurs’ experiences.

The setting of this research is in India, where it would mainly focus on the rural and urban communities that have been affected by industrialization.

In reality, it is generally perceived that small scale fund plans have met constrained triumphs. The capacity of a lady to change her life through access to money related administrations relies on upon her individual circumstance, capacities, environment and the status of ladies as a gathering. Control of capital is one and only measurement of an intricate procedure of strengthening. Tragically, advantages of smaller scale credit are undermined by inconveniences confronted by ladies in getting to data, informal communities, and different assets they have to prevail in business. An investigation of the effect of miniaturized scale credit plots in Bangledesh uncovered consequences of just 21% of respondents getting to be enabled. Out of financial variables investigated, they inferred that ladies institutional cooperation, media presentation and family arrive property were the more critical necessities for ladies strengthening than accessibility of credit. A few faultfinders have contended that the greater part of microfinance projects are organized so as to have their most noteworthy effect in helping ladies perform conventional parts better. They contend that by accentuating the advantages that ladies' families get from their entrance to credit and ensuring this does not meddle altogether with their customary obligations, microfinance foundations may strengthen conventional sex parts as opposed to change

Mumbai has experienced rapid growth due to a massive migration of rural populations coming into the city driven by a promise of a “city of dreams” where “no one goes hungry”. While Mumbai has become a center for outsourcing by international business organizations many of these rural migrants end up finding employment in the informal economy. Development patterns in the

They measured informal sector based on migration unemployment and difference in development in the two sectors of the economy. This model further explains that the urban-rural migration phenomenon is due to difference between the urban-rural income expectations. High volume of urban-rural migration is taking place in developing countries and less developed countries, leading to high level of unemployment in urban areas; such areas are study areas for this model. This model states that out migrants move to urban areas expecting higher incomes however their main source of the income is retained in rural areas i.e. agricultural land. But other literature suggests that these migrants settle in urban areas and are employed in the urban sector. The model was extensively followed in the 1960’s, but with the advent of globalisation it became an equally urban phenomenon. The main reason behind this is that globalisation along with technological advancement made it easy for people to engage in the informal sector. Hence people increasingly entered the informal sector in urban areas. Most of them due to low skills and no or little education acquired casual jobs with wages less than the minimum

There are about 80 to 100 million seasonal migrants’ workers in India who primarily move from rural to urban areas in search of employment and better livelihood. Majority of these seasonal migrant

This paper examines managerial economics and practices of women-owned small business (WOSB) firm that is located in the Washington Metropolitan Area that I was previously employed. It provides brief description of the firm’s organizational structure; discusses some agency problems and how those problems might be controlled; describes the job dimensions with an eye towards improvement designs; and describes the firm’s compensation packet for executives and employees. Finally, the name of the firm will not be identified, however, a fictive name will be used and the company will be identified as Company X for narrative purposes.

The 16% successful return entrepreneurs who were depicted in Handapangoda (2012) survey have been maintaining their business ventures by investing the cash savings which were initiated during their stay in Middle East. For most migrants out of this 16%, the income earned through the business was the only income for the family, thus the contribution served as the ‘de facto breadwinner role’.

In the business world of entrepreneurs in South Africa there are some that are well established and known and some who are still emerging. In my research essay I will be discussing a well-known entrepreneur, an emerging entrepreneur and an entrepreneur from an Asian tiger country. This discussion will include the characteristics of a successful entrepreneur, the risks they face or have faced and the market and macro environment factors that impact on the running of their selected enterprises for each of them; the well-known entrepreneur I have chosen is Anton Rupert, the emerging entrepreneur is Siyabulela Xusa and the Asian tiger entrepreneur is Ricky Wong.

This study is based on survey responses from 1606 Kosovan entrepreneurs who completed questionnaire in face-to-face interviews during December-January 2002-2003, 2003-2004, 2004-2005 (thereafter 2002, 2003 and 2004). SME surveys were conducted by Riinvest Institute for Development Research and one of the authors had a leading role in this research project. Samples were selected randomly from the business register kept at the Statistical Office of Kosova and the Ministry of Trade and Industry (2005). Interviews were conducted by experienced and trained final year students from the Faculty of Economics at the University of Prishtina and monitored carefully by the Riinvest research team. Respondents were key informants, mainly the owner or the general of companies. The response rate was very high with an average of 96.4 percent. The exclusion of these observations might lead to sample selection bias, but in our case this is not a concern as the non-response rate is very small (around 3.6 per cent of total cases) and also our sample remains still representative (see, Cameron and Trivedi, 2005).

Entrepreneur defined as an individual who organizes or operates a business or businesses. Entrepreneurs play very important role in socio-economic welfare of the country. The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a women enterprise is defined as “an enterprise is owned and controlled by a women having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to women”.

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.