A Study on the Financial Challenges Faced by Women Micro Entrepreneurs Under Kudumbashree in Kasaragod District, Kerala

Across the globe women enterprise development has acquired significant attention in recent years. Women have been taking increasing interest in recent years in income generating activities, self-employment and entrepreneurship. This is seen in respect of all kinds of women both in urban and rural areas. In developing countries large percentage of rural women are engaged in micro enterprises in order to support their household. Women who try to enter into entrepreneurship, whether big or small are generally exposed to various environmental constraints. Starting and operating business involves considerable risk and effort on the part of the entrepreneur, particularly in the light of highest failure rate. Perhaps, this rate is even higher in the case of women entrepreneurs who have to face not only the usual business problems but also their family problems. Survival of women micro enterprises is a challenge. At the micro level, many individuals or group of individuals belonging to Kudumbashree (the Poverty Eradication Mission of Kerala state) units tend to respond to increasing demand for self-employment by starting new firms. While the new firms entering the market in rural area are large in number only a few tend to survive over a longer period, and there is little knowledge of the attributes that leads to non-survival of these enterprises. Finance is the most crucial factor that enables an enterprise to survive and sustain. When there is insufficient finance challenges will be more. The study aimed at analyzing the financial challenges faced by women micro entrepreneurs operating under Kudumbashree in Kasaragod district, Kerala. It was found that insufficient initial capital, non availability of credit during operation and problems of collateral security are the most important challenges faced by women micro entrepreneurs under Kudumbashree in Kasaragod district.