Rural Non-Farm Micro-Entrepreneurship or Not: Gender Issue in Decision Making

Abstract

The expansion of female intensive sectors due to globalization and trade liberalization engenders ample employment and income opportunities for female and thus female entrepreneurship. Despite an increase in the female entrepreneurship in recent decade, females are still outnumbered in entrepreneurial activities by the male. The determinants that influence the decision to become an entrepreneur substantially differ across gender. Present study provides empirical evidences towards individuals’ entry into rural non-farm micro-entrepreneurship focusing on gender issue. Based on primary data collected in Assam, the study found that the probability of becoming a micro-entrepreneur is more for being a female in the female intensive industry. The results reveal the existence gender differences with respect to magnitude and direction in the determinants of micro-entrepreneurship development. The influence of educational attainment is not found significant for female’s probability to become a handloom micro-entrepreneur. Financial inclusion of rural people coupled with proper utilization of credit accessed is crucial in handloom micro-enterprise development.

Keywords: Rural, Non-farm, Micro-entrepreneurship, Gender, Handloom, Assam

JEL Classification: L26, O17, O18, J16