Management Program for Women Entrepreneurs in India: Business Plans and Group Processes as Catalysts for Enterprise Creation by Women

Transcription

1 Management Program for Women Entrepreneurs in India: Business Plans and Group Processes as Catalysts for Enterprise Creation by Women Ganesh N Prabhu #1, Anjana Vivek *2 # Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore , India 1 gprabhu@iimb.ernet.in * VentureBean Consulting, 676, 6 th C Main, JP Nagar 3 rd Phase, Bangalore , India 2 anjana@venturebean.com Abstract We draw on our joint experience of leading a six week management program exclusively for women entrepreneurs every summer since 2004 at a top business school in India, to present an effective method of catalyzing enterprise creation by women. Apart from giving soft skills training and covering all functional areas of management, this program also required participants to prepare and present a business plan of their proposed or current enterprise. Aspiring entrepreneurs gained new confidence through the business plan process and found role models, motivators and counsellors within their batch of sixty participants. Visits to businesses of women entrepreneurs, panel discussions with successful women, and group processes within the batch enabled participants to incubate new business ideas. Networking and collaboration was high, with friendships, shared experiences and mutual support developed during the program and continued through a yahoo group process. Alumni across the six batches have interacted and found new synergies including potential business partners across batches. This unique program in India has serendipitously found an effective method to catalyze entrepreneurship among women and we indentify some effective informal processes that enriched the formal program. We also provide detailed guidelines and processes for programs that can effectively catalyse entrepreneurship among women. Keywords women entrepreneur, India, management education I. INTRODUCTION In India, women are under-represented in business schools, with the ratio being about 1:4 in the top business schools. The rising cost of formal business education in India has possibly affected women from middle classes joining business schools as parents may be reluctant to risk taking educational loans that are considerably larger than their annual family income. Women are also considerably less represented in executive education programs held at the top business schools in India. Given their greater family commitments, it is possible that that many women may find self employment in business more suitable than full-time jobs, due to the greater flexibility that self employment may allow [1]. However, many Indian women who aspire to start a business or social enterprise lack the resources and time to acquire a formal business degree before starting the enterprise. This can hinder their business planning and also their ability to secure loans or equity to start an enterprise. Women already in business without any formal business education may find it difficult to develop business plans that enable their growth through access to banks to reach a larger and more lucrative market. This often means that such women led businesses may not expand to their true growth potential. Women entrepreneurs can benefit from a short but adequate business and entrepreneurship course [1] that equips them to prepare their business plan for their new business idea, or helps them grow their existing enterprise, or helps them increase its current efficiency and effectiveness. It is with these considerations that the Indian Institute of Management Bangalore, consistently rated as one of the top two business schools in India, initiated a moderately priced six week Management Program for Women Entrepreneurs that is designed exclusively for both aspiring and existing women entrepreneurs in This unique program has been held every summer, with about sixty women in each batch. The program has catalysed the creation of many new enterprises by alumni as well as enabled the growth of many enterprises led by women. This paper describes the design, structure and processes used in the program conducted every summer at the Indian Institute of Management Bangalore as well as some indicative outcomes. We hope that this paper will enable other business schools to start programs exclusively for women. II. PROGRAM DESIGN This section describes the basic design considerations used to develop the initial Management Program for Women Entrepreneurs and the changes that were made over time based on program feedback and faculty experience. A. Program Duration The first program held in 2004 was planned as a six week program with three weeks of full-time classes and a mid course three week break for business plan preparation. Based on the experience of the first program the class duration was increased to four weeks in 2005 while the break for business plan preparation was reduced to two weeks. This format has continued in the program till now. Four weeks of classes was assessed to be the minimum duration required to adequately cover all the topics that are essential for participants to develop a business plan and manage its implementation. The Proceedings of the International Conference of Business and Industrial Research, March 17-18, 2010, Bangkok Page 1

2 duration of six weeks is possibly the maximum duration that potential participants are able to take a break. This duration also has implications for the cost and fee of the program. B. Program Calender The entire program is held only in the mid April to end of May period every year and is scheduled to be within the school vacation period so that participants with school going children can manage domestic support more easily to attend the program. Women are usually reluctant to attend a full time program during the school term. Since this is also the summer internship period for the full-time business school students, the faculty are relatively free to teach in the program. The business school classrooms are free and the student hostels are also available for residential participants. Thus all facilities used for the program have no opportunity cost in this period. It is also important to note that this program does not use any of the higher priced executive education rooms and facilities in the business school even during the slack vacation period. C. Program Costs Since the program is held during a slack period in the business school calendar, the business school classroom facilities are provided free to this program with minor running costs absorbed by the business school. The business school student hostel facilities are made available at a nominal rental and are charged directly to residential participants. Thus many participants from the city opted to stay in the hostels instead of travelling to campus every day. Catering facilities are also available at a nominal cost from the business school restaurant which operates with a slack during the vacation period. Apart from catering, the major costs faced in running the program are faculty costs and course materials and the program is priced at a level that covers all these direct costs leaving a small surplus a price that is about one-sixth the full price of an executive program of similar duration in the business school. The low pricing is considered essential, as a full priced program will have few takers, especially among aspiring women entrepreneurs. While the low price does not require any subsidy on direct costs, it has enabled the program to get a class size of sixty or more, which is twice as large as a typical class size in full-priced programs. In 2009, the program was run in two parallel sections of sixty-seven participants each. This is welcome as it has increased the potential reach of the program and its impact while spreading its fixed costs. D. Program Faculty One of the internal concerns of running a low priced program for women entrepreneurs in a business school, is that it effectively takes away faculty time from running higher priced regular programs. Given the shortage of full-time faculty in most of the top business schools in India, this can be a serious concern that may result in most business schools opting out running such a program, even if there is sufficient demand. At the Indian Institute of Management Bangalore also this is a concern but it is adequately addressed in two different ways. First, the program is held during the vacation period when the full-time faculty are relatively free and are not forced to choose between teaching in this program and in other executive programs that can potentially generate more revenue for the school. Most full-time faculty who teach in this program do so willingly and are keen to continue teaching in this program. This is evidenced by their willingness to adjust their vacations to suit the program. Second, there is relatively low dependence on the full-time faculty of the business school to teach in this program. Several guest faculty and part time faculty teach in the program and they are also highly rated by program participants. In 2009, only one-third of the sessions were taught by full-time faculty of the Indian Institute of Management Bangalore this too has considerably reduced the opportunity cost argument against the program. E. Program Structure The women entrepreneur program is structured in three parts. The first part of is of two and half weeks full-time classroom sessions that are designed to cover all the essential topics that are relevant for developing a business plan. Within the first part some business planning sessions are run in a workshop mode to help all participants articulate and choose a new business idea that is promising and has a good fit with their unique skills and competencies. Some participants also choose to partner others to develop their business plans. This is followed by the second part - a two week break with no classes for all participants to collect the field data required to develop their business plan. Most participants return to their home towns to collect data from potential customers. The third part consists of one and half weeks of which the first full week has classes on some special topics as well as skill based sessions on topics like negotiations and communications that help the participant implement their business plan. During this week the program coordinating faculty spend time on one-toone consultations with participants on the business plan. In the first two days of the last week all participants submit and present their business plan and this is followed by the valedictory session where awards are given by a panel of two judges one from industry and one from the program faculty to the best business plans presented to each judging panel. Attending 90% of all classroom sessions and presentation of the business plan as well as a copy of the report are all essential requirements for the award of a program completion certificate to all eligible participants at the valedictory session. III. PROGRAM CONTENT This section describes the program content that is currently delivered in the women entrepreneurs program. The content has undergone minor revision over time based on program feedback as well as faculty experience. The current timetable and structure of the program is shown in Table 1. The program content is classified in the sections that follow as core management content, specialised management content, entrepreneurship content and entrepreneurial skills content. A variety of pedagogy is used in these sessions, ranging from case analysis, role plays, games, simulations, video cases, self assessment exercises, group exercises and lectures. All the Proceedings of the International Conference of Business and Industrial Research, March 17-18, 2010, Bangkok Page 2

3 teaching faculty are experienced academics or successful practitioners who try to bring greater realism to their classes. TABLE I CURRENT TIMETABLE AND STRUCTURE Day Morning Afternoon Wed Introductory Video Case Crafting your Vision Thu Management Accounting 1 Industry Analysis Fri Marketing & Sales 1 Business Planning 1 Sat Field Visit to Women Entrepreneur Units day Holiday Mon Business Economics Management Accounting 2 Tue Marketing & Sales 2 Business Planning 2 Wed Costing & Pricing Working Capital Mgmt. 1 Thu Economic Environment Marketing & Sales 3 Fri Working Capital Mgmt. 2 Entrepreneurial Orientation Sat Panel: Joys and Challenges of MPWE Alumni Seminar Entrepreneurship day Holiday Mon Business Strategy 1 Business Planning 3 Tue Corporate Finance Managing People Wed Operations & Supply Chain 1 Business Strategy 2 Thu Operations & Supply Chain 2 Business Planning 4 Fri Managing Bankers Product Development Business Plan Preparation (16 days) Mon Networking Skills Communications Tue Product Management Legal Aspects & Taxation 1 Wed Services Marketing Legal Aspects & Taxation 2 Thu Valuation and Venture Capital Financial Planning Fri Financing Alternatives Business Plan Consultation Sat Business Negotiations day Holiday Mon Business Plan Presentations Business Plan Presentations Tue Business Plan Presentations Business Plan Presentations Wed Work/Life Balance for Women Awards and Valedictory A. Core Management Content The core management content covers all the management topics that are typically covered in the core part of an MBA program. This entire content is covered in the first part of the program preceding the break, as all these topics are relevant for participants to develop their business plan. The topics covered (with number of 150 minute sessions in brackets) are: Business Economics (1), Economic Environment (1), Industry Analysis (1), Business Strategy (2), Marketing and Sales (3), Operations and Supply Chain Management (2), Management Accounting (2), Costing and Pricing (1), Corporate Finance (1), Working Capital Management (2), Managing People (1). Total 17 sessions of 45 sessions. B. Specialised Management Content The specialised management content covers management topics that are typically covered in the electives part of an MBA program but are considered as relevant for entrepreneurs. This content is covered over both parts of the program as some of it may not be directly relevant for the participant to develop their business plan. The topics covered are: Product Development (1), Product Management (1), Services Marketing (1), Financial Planning (1), Legal Aspects and Taxation (2). Total 6 sessions of 45 sessions. Management Program for Women Entrepreneurs in India C. Entrepreneurship Content While all the sessions mentioned above do focus on the entrepreneur and small business issues while covering the content, the entrepreneurship sessions cover some specific issues that are relevant to entrepreneurs. These are typically not covered in MBA programs unless they have a focus on entrepreneurs. This content is delivered over both parts of the program based on their relevance for developing the business plan. The topics covered are: Video on Entrepreneurship (1), Crafting your Vision (1), Entrepreneurial Orientation (1), Business Planning Workshop (4), Business Plan Consultation (1), Managing Bankers (1), Financing Alternatives (1), Valuation and Venture Capital (1). Total 11 of 45 sessions. D. Entrepreneurship Skills Content Apart from academic content, it is important for aspiring entrepreneurs to develop the appropriate skills to be effective in the field. The sessions listed below are for building skills, awareness and experience among participants with a specific focus on networking. Topics covered are: Communications (1), Business Negotiations (1), Entrepreneurial Networking Skills (1), Panel on Joys and Challenges of Entrepreneurship (1), Alumni Seminar (1), Field Visit to Women Entrepreneurs (1), Business Plan Presentations (4), Work / Life Balance for Women Entrepreneurs (1). Total 11 sessions of 45 sessions. IV. PROGRAM DELIVERY PROCESSES This section describes some of the program delivery processes that made the women entrepreneurs program more effective. Apart from content, it is essential to create processes that catalyse the initiation of participants into entrepreneurship and help them draw the best from the management program. A. Creation of a Group Every batch of the program has created a yahoo group through which they share news and discuss issues during and after the program. This is a useful mode for participants to stay in touch and benefit from any opportunities that may arise. The program coordinators are also members of these yahoo groups and forward any information and announcements that are likely to be of value to the alumni. While in earlier years, the yahoo group was created after the start of the program, in the 2009 program the yahoo group was created by program coordinators about two months before the start of the program and participants joined the yahoo group as soon as they registered for the program. This enabled many of them to introduce themselves to each other, share photos and start interacting even before they met each other. This interaction seems to have led to greater anticipation among participants before the start of the program, as they soon found many other likeminded participants in the program. An all MPWE alumni yahoo group has also been created for developing contacts across the six batches however not all alumni have joined this group possibly because many do not want to be in an group where they personally do not know others well. Proceedings of the International Conference of Business and Industrial Research, March 17-18, 2010, Bangkok Page 3

4 B. Motivators, Role Models and Counsellors Visits to women entrepreneur units, a seminar with alumni of past programs, and a panel discussion with successful women entrepreneurs provided the space for participants to ask the questions about the entrepreneurial experience that went beyond the classroom coverage. These sessions were usually seen as highly motivating by most participants. Since each batch included both existing and aspiring entrepreneurs, every batch had some successful entrepreneurs who could become role models to aspiring entrepreneurs in the group. Each batch also had achievers from different walks of life and they too provided inspiration to others. More experienced participants often took time out to motivate and counsel aspiring entrepreneurs who were struggling with their business ideas as well as personal and family issues in moving into an entrepreneurship career. Some participants also found industry specific advice from those who were in their proposed line of business. Some participants formed smaller work groups among friends and worked together for refining and improving their business plans and their presentations. These positive processes were more pronounced within the group that was staying in the campus hostels as they had more time to interact with each other outside the classroom. The informal support for each other continued during the business plan presentations, even as the competed for the business plan awards. The valedictory session also provided a space for participants to share experiences and empathise with others. C. Role of Faculty In general, faculty have shown keen interest in teaching in this program. One of the challenges of teaching entrepreneurs in general is that they tend to be very demanding in class and usually seek very specific advice on their business which in many cases may be unfamiliar to the faculty. Most of the faculty teaching currently in the program have done several cycles of the program and are now comfortable in dealing with the demands of this group. The class process is typically seen by faculty as richer in this program compared to the class process in other programs. Participants running businesses (about a third of the batch), raise issues based on their enterprise experience, while the aspiring entrepreneurs bring in a fresher perspective to the class discussions by drawing from their life experiences. Women faculty, who lead as many as 28 of the 45 sessions in the program, also shared a more empathetic relationship with program participants. In many cases their interaction has continued well beyond the program. D. Role of Informal Interactions The program has several occasions for participants to celebrate and interact more informally. A networking lunch with alumni in the second week allows current participants to get to know alumni better. A special dinner of the batch with the teaching faculty is held in the third week before the break for business plan preparation. A farewell dinner is held after the business plan presentations in the last week. All these are occasions for participants to interact at a more personal level. Participants also met in small groups informally in different cities to share notes during the two week break for business plan preparation. These informal interactions are important, as personal equations among participants were often the starting point for joint new venture creations. Program faculty also helped interested participants link up with others known to them in related fields during or after the program. V. PROGRAM PUBLICITY Given the low program fee, it is not possible to release advertisements for the program in major newspapers. This section describes the modes used to publicise the program at a low cost so that potential entrepreneurs could be reached effectively and yet the fee for the program could be kept low. A. Role of Media The media in India has had a major role in informing and promoting the women entrepreneurs program as well as celebrating its impact. The program brochure was posted on the institute website and announced as a press release to all newspapers. Many local papers released the announcement as a news item at no charge, while others found the program interesting enough to write about it as a feature article or as a news item. These newspaper and magazine articles, as well as occasional local radio and TV coverage [2],[3],[4],[5],[6],[7], effectively reached more potential participants than advertising alone could, without any major costs. Based on contact information provided by the program coordinators, many alumni of the program, especially those with innovative or unique businesses, were interviewed by the media due to the news value of their ventures. These alumni mentioned the program as an important catalyst for their business initiatives. B. Book Release on Alumni Start-up Cases In 2009 a book on start-up cases by the program alumni [8], was released in free-to-read online mode at a self publishing site in India. The book was written by a student summer trainee based on interviews with alumni. Written in an easyto-read journalistic style, it was meant to be accessible to any reader. The book was released in a major forum for women entrepreneurs and physical copies were also sold in book fairs. The book has generated interest in the program and potential entrepreneurs who read it are inspired to join the program. C. Distribution of Brochures in Conferences Another effective publicity mode that has resulted in many participants is the distribution of a one page program brochure at major entrepreneurship and family business conferences in India. Word of mouth publicity about the program was high as such conferences usually had researchers and consultants who personally knew potential participants who could benefit from the program. The program has also been announced in major industry seminars that had sessions for women entrepreneurs. D. References by Alumni The most effective publicity mode has been the personal references by alumni to their friends and relatives urging them to register for the program. Alumni have sent mails to all their Proceedings of the International Conference of Business and Industrial Research, March 17-18, 2010, Bangkok Page 4

5 contacts and many have spent time answering questions from prospective participants. Alumni usually mention the program on their websites and whenever they speak at seminars and business meetings. They have also used Facebook or Linkedin to publicise the program more broadly. Referencing by alumni gives a higher level of authenticity for prospective participants. In 2009, a small incentive was created to encourage such referencing. However some alumni who actively referenced participants refused to claim their incentive on the grounds that they wanted to give back to the program that had benefited them so much, and they wanted others also to get the same benefit. Some alumni have also donated funds to cover the business plan prizes and initiated means based scholarships for those who deserved support. VI. PROGRAM IMPACT The most important impact of this program is the confidence that it provides to participants for starting a new enterprise either immediately or in the near future. While sample sizes in survey responses among alumni have not been large enough to conduct statistical tests, they have revealed that among the prospective entrepreneurs, not all alumni start an enterprise soon after completing the program this may be due to funding, business and family considerations but typically all participants have built their confidence to do so sometime later. Many alumni have reported starting their enterprises two to three years after their program. Those who have not yet started an enterprise have found that they could take greater responsibilities and were more effective in their current jobs due to the program and some have even found better job opportunities after the program. Alumni who were already in business before the program, have reported taking new initiatives in their current business or starting new businesses. Alumni from family businesses have also reported taking a greater role in their family business and have started new product lines within their existing business. The high brand image of the business school has also had a positive impact on all the alumni of the program. This has enabled alumni to secure funding and research grants to build their business. Business plan award winners in the program have been able to leverage their award to secure venture capital funding. Alumni from business families have indicated that they are now taken more seriously in their family business discussions and have therefore been able to take over some business or positively impact their family s businesses. There are also some unintended positive impacts of the program. In some cases, seeing the value that the participant has brought into the business after the program, other male partners who have not had any formal management education, have registered for other long duration programs at the business school. Since entry into the MBA program at the business school is highly prestigious and extremely competitive, some participants had registered for this program just to get the feel of studying in a top business school. After the program, such participants have gained confidence to start a business even though this was not their intention while joining the program. Some alumni have developed greater interest in studying management and have joined other business schools for a formal MBA degree after the program. Lastly this program has been able to reach participants who typically do not seek formal management education in India before they start an enterprise, but may benefit considerably from it. These include dancers who start dance schools, artists who set up art studios, musicians who start music schools, independent film makers, doctors and research scientists. As a consequence, the diversity of the class in this program is far higher than any other program in the business school thus enriching the class experience for both faculty and participants. VII. CONCLUSIONS This unique program developed in India has found an effective method to catalyse entrepreneurship among women. We believe that an entrepreneurship program designed specifically for women has greater potential to catalyse entrepreneurship among women than a mixed group program. Such a program addresses the unique issues faced by women entrepreneurs as well as creates support within the batch for motivating start-ups by women. Such a program is also likely to have greater support from all stakeholders of the business school and can therefore be conducted on a larger scale. This article can serve as a useful guideline for developing similar management programs for women entrepreneurs in business schools. Such programs can effectively promote capacity building among existing and aspiring women entrepreneurs. ACKNOWLEDGMENTS We acknowledge the research support of the NS Raghavan Center of Entrepreneurial Learning at the Indian Institute of Management Bangalore. We acknowledge the assistance of Parul Bajaj in conducting a survey among the alumni in 2008 and the candid responses of all the alumni in building this paper. We also acknowledge the insights from the cases on innovative start-ups by alumni written by Sria Majumdar. REFERENCES [1] N. Rajani, Management training needs of women entrepreneurs Anthropologist, vol.10, no.4, pp , [2] A. Rai, Management courses help women entrepreneurs cash in on opportunities Mint Management-courses-help-women.html [3] D. Arwind, Breaking the glass ceiling, Hindu, February 9, 2009, [4] Making real entrepreneurs out of women Hindu July 10, 2008, [5] S. Gottipati, B-schools give women entrepreneurs new lease of life, Moneycontrol, August 16, 2008, news/business/b-schools-give-women-entrepreneurs-newleaselife/ 17/10/ [6] C. Unnithan, B-schools target women entrepreneurs Business Standard, July 15, 2008, storypage.php?autono= [7] P. Dutta, Homemakers make a b-line at IIMB, IBNlive TV, April 19, 2006, html [8] S. Majumdar, Inspiring Women to Start Innovative Enterprises, Pothi.com, August 2009, Proceedings of the International Conference of Business and Industrial Research, March 17-18, 2010, Bangkok Page 5