From challenges to competencies: informal female entrepreneurship in emerging economies

What is it about?

This research examines the competencies of the informal female entrepreneurs (IFE), which are crucial for societal development to promote social diversity. In addressing this, we explore the challenges faced by the IFE in sustaining their business. With the theoretical lens from Abilities-Motivation-Opportunity AMO) and Human capital theory and using qualitative research approach, we interviewed 14 IFE based in India to get insights into their entrepreneurial complexities. The results evidence that IFE’s are prone to various challenges surrounding the aspects concerned with Personal challenges, Business Challenges and Societal and Government related challenges. Further, the study found that IFEs capabilities as Ability enhancing competencies as - Technical Skills, Problem Solving, Communication, Adaptability. Motivation enhancing competencies - Self Motivation, Resilience, Optimism and Opportunity enhancing competencies- Local Friendly, Networking and Resourcefulness. The stakeholders (government, community, financial institutions, customers and family) need to partner in addressing the challenges faced by IFEs, further stakeholders should promote the development of various capabilities identified in IFE so that they can thrive in the entrepreneurial ecosystem.The study underscores the importance of understanding and leveraging the capabilities of IFE for economic empowerment, gender equality, and social inclusion, aligning with global development goals. As an implication, we propose actions for the various stakeholders in developing IFEs to meet social diversity.

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