Just like any worker in an office space, self-employed workers must have a safe space in which to work, access to the correct equipment and adequate training. According to statistics from the Periodic Labour Force Survey, which was evaluated in a 2020 report by Women in Informal Employment: Globalising and Organising (WIEGO), at least 17.19 million women in India work from home. In 2007, India officially recognised home-based workers as a distinct group.
A home-based worker is an individual who produces goods or services for an employer from their own home or chosen location, irrespective of whether the employer provides equipment or resources. These workers work both contractually and informally in local businesses, such as weaving, sewing, zari (embroidery)work, carpentry, bangle making, papad (papadum) making, Agarbatti (incense stick) rolling, paper goods making, packing, labelling, as well as for larger firms via sub-contractors. They are hired on a piece-rate basis for a company, trader or subcontractor.
Woes of a Self-Employed Worker
One of the primary consequences of being a home-based worker is that their economic contributions get invisibilised. It becomes challenging to account for them and create and execute policies that affect them when their work is rendered invisible. It is important to note that self-employed women workers provide financial support to their families and assist with domestic responsibilities. However, they have no access to social security or any form of protection, which results in their perpetual struggle with poverty and instability.
They are unable to secure regular employment, better payment terms and fair terms of work due to their lack of bargaining power. Also, they frequently assume the responsibility for production risks and expenses. They are exposed to a variety of hazards, such as inadequate working conditions, abuse, violence and gender-based inequalities. Let us explore this further.
Challenges Faced towards Self-Employment of Women Workers
Lower wages
Home-based workers are frequently forced to work for extremely low wages because there are no laws to protect them and they have no bargaining power. The wage disparity between formal and informal employment, as well as between men and women, is significant.
For example, the garment sector in India is characterised by the majority of men being employed full-time and receiving regular monthly compensation, while a greater number of women are employed as piece-rate worker. According to a 2020 WIEGO research, the average hourly wage of male home-based worker is INR 48, while women earn INR 24.
Absence of social security
Despite being the most vulnerable informal workers, home-based workers rarely receive social protection in most nations. Social security often includes insurance, healthcare, retirement, pensions and maternity benefits. Informal women workers pay more for healthcare and other expenses for themselves and their families without social security. This reduces their savings and ability to pay for other necessities. Many programmes that include these components are poorly executed, overburdened with paperwork and inaccessible.
Lack of access to training
Home-based workers have no access to skills training where they learn by doing or upgrade their skills. They are not trained to be aware of their problems to be empowered and confident to take action and change their situation for the better.
Poor housing conditions
Many women workers, especially those living in cities, struggle to find affordable housing and workspaces because of their low incomes. The workers’ well-being and work suffer due to the overcrowded or substandard housing conditions they live in. Poor insulation, ventilation and dampness in these houses lead to decreased productivity and health problems.
Furthermore, adding another fan or light bulb will result in increased energy costs. Women home-based workers face additional challenges due to the lack of basic amenities such as tap water. Many home-based workers live in rental properties without proper legal contracts. Being susceptible to eviction is a risk they face.
Dangers
Hazardous contaminants and toxins are present in a significant number of the raw materials that are supplied to home-based workers, particularly those that involve plastic, incense sticks, e-waste and tobacco. Women employed in the informal sector are frequently subjected to greater levels of discrimination, violence and abuse. Their invisibility in the workforce, the absence of legal provisions for the establishment of anti-sexual harassment committees and the absence of unionisation provide them with limited to no opportunities to report harassment or abuse and secure protection.
Burdens of Household responsibilities
In India, women are frequently confined to domestic duties and child care as a result of the widespread socio-cultural norms, particularly after marriage. They are disproportionately burdened by these duties. Also, their decision-making capabilities and mobility are restricted by the standards of patriarchy. The absence of an Anganwadi for caregiving increases their obligations. Thus, women workers find it hard to juggle work and household.
Making Self-employment Visible
The Ministry of Labour needs to be made aware of the issues faced by self-employed women. States should recognise the rights of self-employed workers to social protection and should put more pressure on employers to include them in their social security programs. Housing policies for these workers should consider the fact that the home serves as their workplace. Since home-based work is carried out at home, community-based training programmes and opportunities for skill improvement need to be introduced.
Smile Foundation’s self-employment programme for women
Smile Foundation’s Swabhiman programme is dedicated to self-employment of women by fostering self-reliance and economic independence through entrepreneurship development. Recognising the unique challenges faced by self-employed women in India—such as low wages, lack of social security, and limited access to training—Swabhiman aims to bridge these gaps by providing comprehensive support and resources to women who aspire to be entrepreneurs.
Through Swabhiman, Smile Foundation focuses on promoting self-employment as a sustainable and empowering solution for women who are often trapped in low-paying, informal jobs. The programme offers a range of training sessions and workshops designed to enhance entrepreneurial skills, such as financial literacy, business planning and market strategies. By equipping women with the knowledge and skills needed to start and manage their businesses, Swabhiman enables them to move from being invisible contributors in the informal sector to recognised entrepreneurs driving their own economic growth.
Swabhiman also emphasises creating a supportive ecosystem that addresses the multifaceted needs of aspiring women entrepreneurs. This includes facilitating access to micro-finance, connecting them with local markets, and providing mentorship from successful women leaders in business. Additionally, the programme advocates for better housing conditions and safe working environments, understanding that these factors are crucial for the success of home-based businesses.