CHAPTER-I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

Entrepreneurs have taken hold across the globe and have undeniably impacted the

world of business forever. Over the last two decades entrepreneurship has emerged as

arguably the most patent force the world has ever experienced. Economic development

has become the main concern of the government. However, this concern is gradually

shifting from government role to free enterprise role in view of global changes, which

comprise of globalization, liberalization and privatization. In the coming years,

development is to be caused by individuals alone and not merely by the government. This

paradigm shift in development is only possible through an effective entrepreneurship.

The spirit of enterprising makes man an entrepreneur. Such a spirit has

transformed him from a nomad to a cattle rearer, to a settled agriculturist, to a trader and

to an industrialist. Now, entrepreneurs are persons who initiate, organize, manage and

control the affairs of a business unit and they combine all factors of production to supply

goods and services, whether the business pertains to agriculture, industry, trade or

service. The entrepreneur is a central figure of economic activity and a propeller of

development under free enterprise. Agricultural and industrial developments are caused

by entrepreneurship. The development or underdevelopment is the reflection of abndance

or scarcity of entrepreneurship in any society.

1
 An Entrepreneurs innate mental flexibility, their vision for long-term planning and

the ability to tolerate ambiguity and changes better than men are a valuable asset for

every venture and also their capacity to negotiate in marketing the product to prospective

investors, suppliers and customers. These are the present day requirement of the complex

business world.

1.1.1 ENTREPRENEURIAL DEVELOPMENT

The word 'entrepreneur' had its origin way back in twelfth century. But the earliest

usage of the term 'entrepreneur' is recorded in the French military history of seventeenth

century. It is derived from the French word, 'entreprendre', which denotes 'to undertake'.

Schumpeter [1936] envisages the entrepreneur as an innovator, whose job Is to introduce

"new combinations" such as the introduction of a new goods, a new method of

production, the opening of a new market, and the discovery of new raw material supply

sources or the reorganization of an industry.

Economic development is the outcome of human activity. At the centre of this

process stands man: as organizer of community's resources, as worker and as user of

goods produced. Of these roles, the role of the organizer makes all the difference in the

final outcome from his activities. Unless entrepreneurial skills and competencies of the

community are utilized in a useful manner, they are bound to remain unproductive and

retard the development process of the economy. However, the nature and degree of

contribution varies with the society depending on the challenges it offers and the

environment it provides.

2
1.1.1. ENTREPRENEURIAL DEVELOPMENT AND SMALL SCALE

ENTREPRENEURS

The entrepreneurs of the small industry have a prominent role in a developing

economy, as the success of these industrial enterprises depends largely upon the

capabilities and the talents of the entrepreneurs and there by promotes the

industrialization process. To make the small scale industry more dynamic in accelerating

industrial development for facilitating larger employment generation and output

expansion, there is an imperative need to promote the entrepreneurial talents as

inadequate supply of entrepreneurs, constrains the process of rapid industrialization and

that of sustaining the economic development. Industrialization has been considered as

one of the strategies for accelerating the process of economic development particularly in

the developing countries, and this in turn depends on the availability of a large number of

innovative and dynamic entrepreneurs and it is necessary to promote the entrepreneurial

base in the economy through expansion and diversification of the entrepreneurial talents

since they generate employment opportunities and thereby reduce the regional

imbalances and the concentration of economic power. Small industry development has

been aimed at bringing about decentralized development and promoting balanced

economic growth, reducing regional disparities, while generating additional employment

opportunities and to facilitate the redistribution of income and assets, minimizing the

levels of inequalities in a developing economy. The small enterprises are more labour

intensive and they use the appropriate techniques of production in order to achieve

3
efficiency. The development of these enterprises industry facilitates the growth and

development of the entrepreneurial talents particularly in a developing economy.

1.3 DEFINITION OF MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA

(A) MANUFACTURING ENTERPRISES

(i) Micro Manufacturing Enterprises:

The investment in plant and machinery does not exceed Rs.25 lakhs (Rupees twenty five

lakhs only).

(ii) Small Manufacturing Enterprises:

The investment in plant and machinery is more than twenty five lakhs rupees but not

exceeding Rs. 5 crores (Rupees five crores only).

(iii) Medium and large scale Manufacturing Enterprises:

The investment in plant and machinery is more than Rs. 5 crores but not exceeding Rs.10

crores (Rupees ten crores only).

(B) SERVICE ENTERPRISES

(i) Micro Service Enterprises:

The investment in equipment does not exceed rupees 10 lakhs.

(ii) Small Service Industries:

The investment in equipment is more than 10 lakhs (Ten lakhs rupees) but does not

exceed rupees 2 crores.

(iii)Medium and large scale Service Enterprises:

The investment in equipment is more than rupees 2 crores but does not exceed rupees 5

crores.

4
1.1.4. AN OVERVIEW OF THEORETICAL MODELS OF

ENTREPRENEURSHIP

Schumpeter Joseph. A assigned much prominence to the role of the entrepreneurs

in his theory of economic development He has considered that economic development

occurs as a discrete change or system in equilibrium which was brought about by

entrepreneurs through innovation6. The innovation may be in the form of the introduction

of a new product, discovery of new supply of raw material, and new form of

organization. He has made a distinction that the innovator discovers new methods and

new materials, while the imitator utilizes these methods and materials. He has stated that

the entrepreneurs are men of vision, drive, and possess talent and utilize the opportunities

up to the optimum level

Innovation theory (Joseph A. Schumpeter, 1934, 1982) According to this model,

development is not an automatic of spontaneous process rather it must be deliberately and

actively prompted by some agency within the system. It is an ‘entrepreneur who provides

economic leadership that changes the initial conditions of the economy and causes

discontinuous dynamics changes. By nature he is neither technician nor a financier but an

“innovator” who cause change and reshape the scenario.

Group level pattern theory (Young, 1971) this theory postulated that instead of

individuals, groups with higher differentiation have the capacity to react. He designed

‘reactiveness’ or ‘solidarity’ as the degree to which members of the group create,

maintain and project. Differentiation is defined as the diversity. Some members of the

solidarity group excel at combining resources like labour, capital etc. in new ways and

5
they become entrepreneurs. This theory of change is based on society’s incorporation of

reactive sub group. A group will become reactive as per young’s theory, when the three

conditions coincide. That is, firstly, when a group experience low status recognition;

secondly, when the denial of access to important social networks and thirdly, when the

group has better institutional resources than other groups in society at the same level.

Managerial Skills and Leadership Theory (Hoselitz, B.F. 1952) According to

this theory if a person is to become an industrial entrepreneur she/she must have

additional personality traits. According to him, managerial skill and leadership are the

important facets of entrepreneurship. Hoselitz's(1963) analysis of entrepreneurship

naturally suggests a method for the development of entrepreneurship which depends upon

allowing the development of personalities whose predominant orientation is in the

direction of productivity, working, creation, and creative integration along with

establishment of social institutions which create a favourable environment for the

establishment and existence of independent individual entrepreneur. He/she creates their

own commodities despite uncertainty about its acceptability.Therefore, entrepreneurs

tend to assumes more risks.

Achievement motivation theory: (McClelland 1961) like Hoselitz (1963), McClelland

(2006, 2009) describes the innovative characteristics of entrepreneurial role. McClelland,

like others, identified two characteristics of entrepreneurship. First is doing things in a

new and better way. This is synonymous with the innovative characteristics given by

Schumpeter (1934). Second is decision making under uncertainly, i.e. risk as identified

6
by Cantillon (1755) McClelland’s major contribution lies in extending our understanding

of casual sequence of entrepreneurial behaviour.

McClelland has explained the entrepreneur’s interest in profitability in terms of a need

for achievement. For people with high need for achievement, profit is a measure of

success and competence. McClelland, attributes the inculcation of the achievement

orientation of child rearing practices which stress standards of excellence, maternal

warmth, self-reliance, training and low father dominance. The casual sequence of

entrepreneurial behaviour as extended by various researchers (McClelland,1965; Lee &

Lim, 2008).

In Input Completing and Gap Filling Theory (Liebenstin, 1968)distinguishes two broad

types of entrepreneurial activity namely the ‘routine’ entrepreneurship which is

associated with managerial function of the business and the entrepreneurship which is

basically of Schumpeterian (1934) type. He identified “gap filling as an important

attribute of entrepreneurship. In economic theory, the production function is considered

to be well defined and completely known. But theory is silent about the keeper of the

knowledge of production function, where and to whom in the firm this knowledge is

supposed to be available is never stated. In reality there exist larger gaps in knowledge

about the production function. It is the entrepreneurial function to make up the

deficiencies or to fill the gaps.

An Upsurge of Interest (Baptista & thurik, 2004; Arend, 1999 and Henderson, 2002).

Most of the researches on entrepreneurship gained momentum in the last two decades due

to its implications for issues such as unemployment, and impeded economic growth and

7
development. Most of the research on entrepreneurship concentrates on analyzing the

firm creation process that too when the decision to create the firm has already been taken.

It has been observed that in all studies no attention has been paid to those internal

processes and external factors which give a push to people in that direction. This aspect is

refers to entrepreneurial orientation From this point of view the important thing is not an

individual’s will to create a new firm, but what is that particular thing which made the

person to have that kind of orientation and zeal to opt for that kind of activity which has

been covered under the title of entrepreneurship.

Entrepreneurial orientation construct is often described in entrepreneurship literature as

the mind set of firms engaged in the pursuit of new opportunities (Lumpkin & Dass 1996;

Wiklund, 1999; Wiklund & Shepherd, 2003). The impact of entrepreneurial orientation

on performance in different contexts, for different types of firms, was analysed by

Wiklund & Shepherd (2005); Hughes and Morgan, (2007), but without serious

attentionpaid to the factors and conditions which produce this specific mind-set.

Entrepreneurial mind-set can be described as multidimensional concept which is affected

by two institutions, namely formal institutions (training institutes/school etc.) which

would contribute to creating opportunities and informal institutions (family, parents,

friends etc.) would contribute to shape society for exposure and individual’s perception

for these opportunities (Welter 2007). Personality, exposure factors and family therefore

have collective contribution to admiration of entrepreneurial activities in adolescents

(Busenitz et. al. 2000)

8
 The rapid changes occurring in society as a result of globalization and due to

various problems (unemployment, financial crisis, Job adjustment), which society is

facing are not just effecting life style but also the ways through which people earn their

livelihood. Although everyone is making constant efforts to combat with the problems

arising in their fields but the most suitable way to get rid of these kind of problems is the

development of entrepreneurial orientation, which is more than the mere creation of

business and is the dynamic process of vision and change which requires an application

of energy and passion toward the creation and implementation of new ideas and creative

solutions. Entrepreneurial development programmes appears to be as an important facet

which has the potential to revolutionize the way business is conducted at every level and

in every country. In present scenario entrepreneurship appears to be a major attraction for

young generation especially, for those who are highly motivated in converting their

creative talent into production resources. It is in this context that there is a serious need to

tap its main reservoir which is entrepreneurial development.

1.1.5. ENTREPRENEURIAL FUNCTIONS

An entrepreneur has to perform various functions and discharge diversified

responsibilities for attaining industrial development, and consequently economic

development. The major functions of an entrepreneur are innovating, risk taking,

planning, organization, and management and the entrepreneur has to discharge these

functions for attaining the industrial efficiency while managing the enterprise.

9
INNOVATION

An entrepreneur must be an innovator also. An innovator is one, who utilizes the

inventions in order to make new combinations and thereby produce newer and better

goods which increase the profitability of the enterprise. The entrepreneurs have to deal

with the innovative activities of introducing new technology in production, creating new

market sources, new forms of organizations, new combinations of factors of production,

new methods and process of manufacture and the formation of monopolies, and

alternative market forms, new methods in marketing and distribution. These innovative

activities have to be sustained by the entrepreneur so as to minimize the cost of

production while maximizing the economic yields, in order to sustain the economic

activities for promoting the entrepreneurial development.

RISK BEARING

Entrepreneur has to possess the risk bearing quality so as to deal with the

uncertainties. Risk taking propensity of the entrepreneurs mostly depends on the cultural

environs and that of the economic conditions that prevail in the economy. The

entrepreneur has to face several risks connected with the market fluctuations, competition

changes in technology, changes in capital investment requirements, occurrence of trade

cycles, incurring of heavy losses, uncertainty in the demand for products due to changes

in the preferences of consumers, and frequent changes in governmental policies and that

of the social environment.

10
PLANNING

An entrepreneur while planning for setting up the enterprise, he has to assess the

resource potential and conduct the feasibility study for commencing the project,

considering the input requirements, investment requirements, and by conducting the cost

benefit analysis considering the different variables. He has to perform several activities

relating to planning, such as selection of the product line, by estimating the demand

potential and the location of industry considering the locational advantages of raw

materials and infrastructure and that of the market and the form of organization,

assessment of the fixed and working capital requirements, and identifying the

institutional and non-institutional funding agencies, find out the ways and means to

minimize the cost of production, considering the technological changes, analyse the

marketing opportunities and evolve the appropriate marketing strategies and fulfil the

formalities that are required in accordance with the changes in the government policies.

MANAGEMENT

An entrepreneur has to discharge several functions related to management such as

the financial management, personnel management, marketing management. An

entrepreneur's main objective is to aim at the sound financial management of the

enterprise/industry, since it is the most important factor that contributes for the growth of

the industry.

He has to make efforts in procuring the required capital for meeting the daily obligations,

to run the production on a continuous basis. He has to raise the resources adequately for

the fixed capital and for meeting the requirements for expansion of the unit, so as to make

11
the industry/Unit economically viable. In addition, he has to forecast the long-run

financial requirements for effecting modernization and expansion of the unit, in order to

sustain the growth of industry for enhancing the production and supplies in accordance

with the growing demand for the product He has to adopt proper accounting system and

reporting ensuring transparency for maintaining proper financial management.

An entrepreneur has to aim at improving the productivity of the employees by

maintaining proper industrial relations, adopting good personnel management techniques

and strategies, such as guaranteeing of employment, reasonable hours of work, ensuring

safe and better working conditions and fair wages. An entrepreneur has to adopt good

marketing management strategies to cope with the changing customers’ requirements and

changes in demand, and plan the supplies accordingly through the maintenance of the

quality of the product, and organizing the distribution network efficiently.

1.1.6. ENTREPRENEURIAL DEVELOPMENT - FACTORS

Entrepreneurial development is influenced by the economic and non-economic

factors such as the availability of raw material, quality of labour, technology, market

potentiality, capital, profit and infra-structure, the availability of raw material and its

supply enlarge the economic opportunity and consequently promote the development of

the entrepreneurs. The emergence of entrepreneurship and the promotion of

entrepreneurial activity are also influenced by the availability of labour and its quality,

particularly the supply of skilled and semi-skilled labour. The availability of qualitative

labour supplies facilitates the division of labour and increases the dexterity of labour

which improves the production and the productivity of the industrial units. This in turn

12
attracts the new entrepreneurs to undertake and diversify the entrepreneurial activities in

order to attain higher levels of industrial growth.

The pace of development of technology also promotes the entrepreneurial

development. Technological innovations widen the economic opportunities and thereby

enhance the quality of entrepreneurial development. Changes in technology bring about

changes in the entrepreneurial ability and the development of technological innovation

and reduce the cost of production, particularly the changes in the production process

minimize the wastage and improve the quality of product. This may also lead to the

reduction of the entrepreneur's risks and create a conducive atmosphere for the

sustainability of the entrepreneurial development.

Entrepreneurial development is influenced by the availability of capital that is

required to sustain the development of an industry and to meet the requirements for the

expansion of the industrial activities. The increase in investment increases the

profitability and facilitates the process of additional capital formation and thereby results

in the sustenance of industrialization with the increase in the income and employment.

Enhancement of industrialization activities facilitates the furtherance of entrepreneurial

activities which promote the entrepreneurial development. Therefore, the supply of

entrepreneurship depends largely on the availability of capital.

The availability of power and transport and the provision of industrial estates and

well developed communications, basic amenities including water supply motivate the

entrepreneurs to promote the industrial enterprises. The potentiality of market

opportunities influences the entrepreneurs to undertake the industrial activities.

13
Competition, the size and form of market, also influence the development of

entrepreneurial activities and the quality of entrepreneurs. Developed markets and the

expanding market opportunities create a congenial atmosphere to sustain the

entrepreneurial development. The new entrepreneurs try to capitalise the expanding

avenues and opportunities and this facilitates the furtherance of entrepreneurial

development

Entrepreneurship is also promoted by the profitability of the industrial enterprises.Higher

level of profits facilitates the growth of entrepreneurship and that of the entrepreneurial

activities which induce the prospective entrepreneurs to commence the various industrial

units and to make an entry into new ventures while expanding the existing industrial

activities. With the commencement of new ventures the entrepreneurial capabilities to

undertake risk taking and innovative activities associated with creativity increases which

facilitate the furtherance of the entrepreneurial development while materializing the

attainment of higher level of profits along with the development of new industrial

activities.

Entrepreneurial development depends on the ambitions and aspirations of the

entrepreneurs which urge them to undertake the industrial activities that are economically

sound and widen their perspective, while increasing the resourcefulness of the

entrepreneurs. The socio-economic and cultural conditions and background of the

entrepreneurs also influence the entrepreneurial development and the quality of

entrepreneurship.

14
 Entrepreneurial development is also influenced by the facilitating factors like the

encouragement and the co-operation from big business houses and friends and relatives,

skills acquired, technical/professional education, experience and self-confidence, and that

of the social factors such as mobility, security, compelling reasons, and values ascribed

by the society, dissatisfaction in early jobs and materialization of the ideas and skills so

as to attain economic power and social status.

1.1.7. HISTORY OF ENTREPRENEUR DEVELOPMENT IN INDIA

Development of entrepreneurs in Indian context means creation of entrepreneurs

to start an enterprise. As pointed out by Deshpande (1982), before independence the

opportunity for an individual to start an enterprise in India depended on his

socioeconomic background. Entry into industrial activity was greatly influenced by the

caste to which a person belonged. Father’s place of work was the training ground for

entrepreneurs. Because of this Indian industries were cottage and small. Medium and

large scale manufacturing units entered the industrial scenario with the textile

manufacturing units started during the latter half of the 19th century. Until 1948 the idea

of entrepreneur development was absent because of the British rule. The first Industrial

Policy Statement in 1948 provided the guidelines for industrial and entrepreneur

development. The industrial development became the responsibility of the government.

The government of India established Small Industries Development Organisation

under the Ministry of Industries in the year 1954. Under- Small Industries Development

Organisation, Small Industries Service Institutes are created throughout India to offer

services such as product development, product testing, finance, marketing, consulting,

15
training and economic information to develop small scale industries. In the year 1970 the

Small Industries Service Institutes have started the entrepreneur development training. In

the year 1954 the National Institute of Small Industry Extension Training was started at

Hyderabad in the state of Andhra Pradesh to train the officers of the Small Industries

Development Organisation. This institute has started the entrepreneur development,

training in the year 1970. The Centre for Entrepreneurship Development inthe state of

Gujarat has started the entrepreneur development training inthe year 1970. Thus the

entrepreneur development training has become a movement in India in the year 1970.In

the latter years, the Entrepreneurship Development Institute of India, the Technical

Consultancy Organisations, the Entrepreneurship Development Cells, the Science and

Technology Entrepreneurs Parks, the District Industries Centers, the industries

associations and non-governmental agencies have started the entrepreneur development

training.

1.1.8. ENTREPRENEURIAL DEVELOPMENT PROGRAMME

The entrepreneur development training is popularly known as Entrepreneurship

Development Programme in India. The training involves motivation and selection of

trainees, structured class room lectures, factory visits and in plant training in industries,

assistance and counselling to establish business units. The success rate of the training is

measured based on the number of trainees who start their business units after the training.

The national average rate of success is 32 percent for the programmes sponsored

by All India Financial Institutions. The success rate of the Entrepreneurship Development

Programmes organized by Small Industries Service Institutes is 25 percent. The training

16
organizations are also of the view that measuring the performance of the

Entrepreneurship Development Programmes only based on the start-up rate is erroneous

because the programmes help in transforming the social, economic and cultural scenario

to widen the scope of the source for supply of entrepreneurial human resource.

The current model of entrepreneur development adopts scientific procedures for

selection of trainees (Raval et al 1987). But there is considerable scope and need for

refinement, modification and empirical evaluation as indicated by Mohiuddin (1987). The

trainees and trainers have pointed out the absence of avenues or mechanism for practice

during training (Deshingkar 1990). As pointed out by Patel (1987) shortage of

entrepreneur trainers is one of the problems in entrepreneur development. About 68

percent of the trainees do not start industries even after two years of training. About 48

percent of the trainees give up the idea of starting their industries. All these data indicates

that the Entrepreneurship Development Programme is to be improved or new approaches

are to be developed.

Entrepreneurial development programmes (EDPs) have been designed in orderto

promote the supply of entrepreneurs for accelerating industrial development, prevent the

industrial monopolies, to provide more self-employment opportunities that are productive

to promote balanced regional growth and, to extend the benefits of economic progress to

less developed areas, while preventing the concentration of economic power, to develop

the entrepreneurial talents and skills in different strata of the society and to promote the

human resources development. It has also been designed to build up socialistic pattern of

society in order to develop a congenial environment for the entrepreneurs by preventing

17
social and economic ills, to facilitate the optimum utilization of resources and to take up

new and promising industrial activities venturing, inorder to enhance the economic

prosperity for bringing about the desired social change to sustain industrial development

and that of the economic development. Entrepreneurial development programmes (EDPs)

have been formulated and adopted by several agencies to augment the supply of new

entrepreneurs, and to promote their talents. These programmes are formulated by the

agencies connected with the government such as the entrepreneurial development cell

under the ministry of industrial development, National Industrial Development Council

(NIDC), National Small Industrial Corporation (NSIC), National Institute for

Entrepreneurship and Small Business Development (NISBUD), to provide the training

for the entrepreneurs in acquiring the entrepreneurial talents and to cope with the

emerging challenges in sustaining the industrial development. These programmes are also

designed by the financial agencieslike Industrial Development Bank of India (IDBI),

Industrial Credit and Investment Corporation of India (ICICI), Industrial Reconstruction

Corporation of India (IRCI). Industrial Finance Corporation of India (IFCI) the small

Industrial Development Bank of India (SIDBI) and the Nationalized and Commercial

Banks. In addition the entrepreneurial development programmes are also formulated by

the Entrepreneurship Development Institutes (EDI) at the all India and State level, Centre

for Entrepreneurial Development (CED) National Productivity Council (NPC),

Management Development Institutions (MDIs), Technical Consultancy Organizations

(TCOs), District Industries Centres (DICs), Small Industries service Institutes (SISIs),

India Investment Centre (IIC), Administrative Staff College of India. Small Industry

18
Extension and Training Institute (SIET), State Financial Corporations (SFCs), Rural

Entrepreneurship Development Institutes, Indian Institutes of Technology (IIT),

Integrated Training Centre (ITC), Entrepreneurship Development Board (EDB) and

Agro-Industries Corporations at various states.

Entrepreneurial Development Programme are also formulated by the other

organizations such as National Alliance of Young Entrepreneurs (NAYE), Self-

employment women Associations (SEWA), and Indian Council of Women

Entrepreneurs. Federation of Indian Chambers of Commerce and Industry (FICCI),

Indian Institute of Management (IIM) and the Indian Institute of marketing management

(IIMM) and others. Entrepreneurial Development programmes are also designed and

provided by the international agencies like the International labour organization (ILO),

Organization for Economic Corporation and Development (OECD). United Nations

DevelopmentProgramme (UNDP) International Finance Corporation (IFC) and World

Association of Women Entrepreneurs (WAWE) and Associated Country Women of the

World (ACWW).

1.1.9. ENTREPRENEURIAL DEVELOPMENT MODELS

Entrepreneurial Development models have been formulated in order to identify

and select the prospective entrepreneurs so as to give training for these first generation

entrepreneurs to carry out the various industrial activities successfully. Entrepreneurial

Development programme models have been designed to promote the entrepreneurial

development at several stages. The Entrepreneurial Development programme models that

has been formulated by the Entrepreneurial Development Institute of India and its aims at

19
providing the right type of entrepreneurial training and the provision of follow-up-

support for the entrepreneurs to sustain the industrial activities.

Entrepreneurial Development programme models of Entrepreneurial Development

Institute of India indicates that the careful selection of the entrepreneurs has to be done in

order to identify the potential entrepreneurs by assessing the technical and managerial

capabilities, and potentialities of the entrepreneurs and the risk-taking capabilities,

aptitude and the social background. To augment the supply of entrepreneurs for

promoting the entrepreneurial qualities, this Entrepreneurial Development programme

models intends to provide training for the entrepreneurs to acquire capabilities by

promoting the awareness in the entrepreneurs.

The model has been formulated to offer training in the aspects connected with

project planning and in decision making regarding product choice, market expansion, the

utilization of subsidies and other incentives offered by the government and in the

maintenance of cordial relations with employees/workers and in managing the industrial

unit successfully.

The Entrepreneurial Development programme models contemplates the offering of

post-training for the entrepreneurs in the various aspects by considering the success and

achievement in order to strengthen and sustain the industrial activities by the

entrepreneurs. This Model further intends to provide the entrepreneurial counseling and

opportunity guidance and management appreciation programme to facilitate the industrial

development.

20
Entrepreneurial development programme Model of small industries Extension and

training (EDModel of SIET) intends to promote the prospective and successful

entrepreneurs and try to fill the gap between the supply of entrepreneurs and demand for

these entrepreneurs. This Entrepreneurial development programme Model is an integrated

Model formulated for the promotion of entrepreneurs covering the aspects that are

grouped as stimulatory, supportive, and sustained. In this Entrepreneurial development

programme -Model of SIET, the Entrepreneurial education has been assigned priority in

the stimulatory stage to increase the entrepreneurial opportunities through the

identification of potential entrepreneurs in a given area, and motivating them by

providing the economic insights, and assist these entrepreneurs in selecting new industrial

activities/ areas by preparing the project feasibility reports for these industrial activities.

This model aims at the setting up of the local entrepreneurial promotional agencies with

the necessary executives and personnel for providing the entrepreneurial motivation and

counselling and the creation of entrepreneurial forums to discuss the achievement and

success and the problems of the entrepreneur, in order to recognize the promising and

prospective entrepreneurs for increasing the supply of the entrepreneurs so as to facilitate

the development of industrial activities.

The ED-Model of SIET also envisages in training the entrepreneurs pertaining to

the supportive activities related to the establishment of the industrial unit, particularly in

the mobilization of finances and the availability of infrastructural facilities including

buildings. This model aims at the extension of consultancy services for the entrepreneurs

in the selection of technology and suitable plant and machinery and the possibilities of

21
acquiring the raw materials and in the utilization of power, water and other common

facilities and on the available tax reliefs and concessions and the marketing expansion

possibilities, for improving the entrepreneurial activities so as to develop the quality of

entrepreneurship. This ED model further envisages to train the entrepreneurs in

sustaining the activities related to the efficient management of the industry, in order to

maintain the profitability so as to promote the entrepreneurial development by

considering modernization and diversification of the industries of these entrepreneurs in

order to improve the entrepreneurial supply while, ensuring the quality.

The theories of the entrepreneurial development, functions and factors that

promote entrepreneurial development, and the policies I models adopted for augmenting

the entrepreneurial efficiency to facilitate industrialization and particularly the sustenance

of the development of small industry, reveal that there is close relationship between

entrepreneurial development and industrial development. Therefore, the first hypothesis

of the study that there is no relation between entrepreneurial development and industrial

development is rejected. Hence, there is relationship between entrepreneurial

development and industrialization.

1.2. STATEMENT OF THE PROBLEM

In the process of entrepreneurship, entrepreneur has to face various problems

associated with entrepreneurship. The attitude of male reservation creates difficulties and

problems at all levels, i.e. family support, training, banking, licensing and marketing. The

Entrepreneurs in rural areas have to suffer still more. They have to face not only

resistance or reservation from men but also from elderly women who are ingrained in the

22
attitude of inequality. Problems cited pertain mostly in obtaining finance, delays in the

process of getting loan and providing collateral security, often as a consequence of

insensitivity to the particular situation of women, or due to gender biases. Most women,

however, find marketing to be their main problem, In spite of Government Policies and

Schemes offering development programmes and funding, the lies a line of gap that shows

deviation in plan and execution, this of difference requires a systematic and depth

analysis into the cause for and solutions to the problems faced by entrepreneurs in

Dharmapuri District.

1.2. SIGNIFICANCE OF THE STUDY

 To provide information service to government policy makers to offer programs

and initiatives nationally, regionally and locally on problems and needs of

entrepreneurs

 To provide growth-minded business owners with the tools they need to take them

to the next level

 To explore entrepreneurs responsibilities in nation’s growth and development.

 Its potential contribution to knowledge in the field of social relevance or national

importance; through this study the researcher as found out the real problem faced

by the Entrepreneurs and what the need to overcome such problems. In this respect

the Government and policy makers may take an appropriate policy for promoting

Entrepreneurs in the country. Its impact will reflect in the social development of

the nation. If the Entrepreneurship is really motivated it generates employment

opportunities and also improves the standard of living of the people in general.
23
1.3. OBJECTIVES OF THE STUDY

 To Study the Working pattern and performance of Entrepreneurs in general

particularly in Dharmapuri District.

 To Study the socio-economic status of Entrepreneur in Dharmapuri District.

 To assess the factors that influencing funding gap, market sustainability,

technological updation with relevance to Entrepreneurs.

 To identify the factors influence the Entrepreneurs problems.

 To assess the suitable mechanism for resolving Entrepreneurs problems.

1.4. HYPOTHESES OF THE STUDY

H01: There is no significant difference between year of establishment and level of

success.

H02: There is no significant difference between size of enterprise and level of Economic

constraints implied lack of investment for promoting the business and paucity of working

capital for successful running of business. It is the duty of the Government to offer

necessary financial assistance in time for entrepreneurs for successfully running their

business units. Further, in order to avoid financial problems, entrepreneurs have to learn

the procedures to be followed for availing loan at the earliest from the banks and

financial institutions. Moreover, it is advised to rural entrepreneurs not to avail loan from

money lenders by paying exorbitant rate of interest.

Reduce their social constraints, entrepreneurs have to inculcate the habit of moving along

with their workers, improve ability to extract work from team members, enhance their

24
planning and decision making ability, and learn to maintain proper books of accounts and

management of company assets.

Raise their knowledge level; entrepreneurs have to improve their writing skills, oral

communication skills, interpersonal skills by undergoing soft skill training programmes

organized by various private educational training centres.

Reduce their entrepreneurial constraints, entrepreneurs must train themselves to mingle

with co-workers, improve their thinking ability, improve their listening ability or caliber

and constantly keep them updated on latest development that took place on their business.

Reduce the entrepreneurial constraints the entrepreneurs have to understand their risk

taking capacity, improve their self-confidence by attending more number of leadership

oriented training programmes and should improve their analytical ability by undergoing

more number of training programmes organized by various academic institutions.

To improve their communication skills entrepreneurs have to undergo training

programme on spoken English. Further, training programmes organized by Government

apart from inculcating the basic principles to be followed before promoting a business,

type of business to be promoted, procedures to be followed for availing loan may train

entrepreneurs on developing communication skills, which is said to be vital element for

their success.

To enrich their personal entrepreneurial skills like self-control, innovative thinking

entrepreneurs may maintain good rapport with senior entrepreneurs in their locality and

seek their assistance on how to improve their personal entrepreneurial skills. Further,

25
entrepreneurs have to undergo various soft skill training programmes organized by

reputed educational institutions and private training centres.

To improve the business skills like planning, improving decision making capacity, to

maintain cordial employee and employer relationships, to improve marketing knowledge

entrepreneurs may make use of academician’s assistance or by attending management

training programmes organized by well-renowned educational institutions.

To improve the entrepreneur’s technical skills, District Industries Centres may inculcate

training programmes on communication skills, interpersonal skills, listening skills, team

management skills among rural entrepreneurs..

1. H03: There is no significant difference between type of sector and level of

success.

2. H04: There is no significant relationship between business area and level of

success.

3. H05: There is no significant relationship between current position in the company

and level of success.

4. H06: There is no significant relationship between educational background and

level of success.

5. H07: There is no significant relationship between age and level of success.

1.5. LIMITATIONS OF THE STUDY

1. This study is based on primary data and therefore carries all the limitations of not

being compared and verified.

2. This is restricted to the selected units of entrepreneurs in the Dharmapuri district

26
 3. This study assumes that the information and data provided by entrepreneurs as

authentic.

1.6. PERIOD OF THE STUDY

The research covered four years, carried out from 2016 to 2018 .During this study

period the data was collected from the primary sources, covering three districts

Dharampauri of Tamil Nadu State. The secondary data’s covers the Industry profile and

Review of relevant literature. Analysis and interpretation of the data were also done

during this stipulated period. Thus the data’s were rough drafted and here presented the

current synopsis.

1.7. RESEARCH METHODOLOGY

A research is conducted with the main purpose of contribution of something new

and unique to the prevailing stock of knowledge in any field by developing a new

concept or effecting advancement inthe connotation of existing concepts. It can be

properly accomplished through any study only through pre planned and well defined

steps applying perfectly applicable methods in each steps there by facilitating the

collection, analysis, and drawing conclusion smoothly and meaningfully. With a view to

effectively carry out the study conceptually and methodologically structured research

design is a must.

1.7.1. RESEARCH AREA OF THE STUDY

DHARMAPURI DISTRICT

The Dharmapuri district was then a part of the Salem district. During the British

rule in the country and even till 1947 Dharmapuri was one of the Taluks of Salem

27
District. The Dharmapuri district was formed as a separate district on 02/10/1965 with its

headquarters at Dharmapuri.

According to 2011 census, Dharmapuri district had a to population of 1, 506,The current

average literacy of the district was 91.2% compared to the national average of 72.99%.

The district had a total of 3,75,873 households. There were a total of 7,51,170 workers,

comprising 191,080 cultivators, 2,17,062 main agricultural labourers, 11,308 in house

hold industries, 233,546 other workers, 98,174 marginal workers, 10,248 marginal

cultivators, 50,283 marginal agricultural labourers, 4,033 marginal workers in household

industries and 33,610 other marginal workers. The population of the district is roughly

equal to the nation of Gabon or the US state of Hawaii.

Taluks(7), Dharmapuri, Harur, Karimangalam, Nallampalli, Palacode, Pappireddipatti,

Pennagaram, and Blocks(8) Dharmapuri, Harur, Karimangalam, Morappur, Nallampalli,

Palakcode, Pappireddipatti, Pennagaram Town panchayats (10) Harur Kadathur,

Kariamangalam, Marandahalli, Palakkodu, Papparapatti, Pappireddipatt,i Pennagaram, B.

Mallapuram, Kambainallur, Villages (62) Adagapadi,Adiyamankottai, Akkamanahalli,

Andihalli, Annasagaram, Balajangamanhalli, Boalanahalli, Budanahalli, Dhalavaihalli,

Dhinnahalli, Dokkubodanahalli, Echanahalli Elagiri, Errabaiyanahalli, Haledharmapuri,

K. Thoppur (R.F.) Kadagathur, Kammampatti, Konangihalli, Konanginaickanahalli,

Kondagarahalli, Kondampatti, Krishnapuram, Kukkalmalai Kumbalapadi, Kuppur,

Laligam, Mademangalam, Maniathahalli, Mittareddihalli, Mookanur Mookkanahalli,

Mukkalnaickanahalli, Naduhalli, Nagarkoodal, Naickanahalli, Nallampalli, Nallanahalli,

Nathathahalli, Nekkundhi, Noolahalli, Pagalahalli, Palavadi, Palayam, Pangunatham,

28
Pappinaickanahalli, Pulidikarai, Settikarai, Sivadi, Somenahalli, Thadangam

Thippireddihalli, Thoppur, T.Kanigarahalli, Ungaranhalli, Vathalamalai, Vellalapatti,

Vellegoundan Palayam, Vellolai, Veppilaimuthempatti, Virupatchipuram.

1.7.2. Sampling Frame

Universe: Instead of obtaining information from each and every unit of the universe,

only a small representative part is studied and the conclusions are drawn from that basis

for the entire universe or whole population.

Sampling Unit: The sampling unit was limited to selected areas of Dharmapuri district.

1.7.3. Sample Size and Sample design:

The study “A Study on Problems of Entrepreneurs at Dharmapuri District of Tamil

Nadu is taken. It is focused on the problems of Entrepreneurs in the study area. The total

number of units collected from the records of the District industries centre. The whole

source of data from whom the information to be collected that is the universe was

29
specified. Once the universe was identified, total numbers of respondents adequate

enough to represent the universe were selected. The researcher adopted stratified random

sampling method in the collection of data for the study purpose.

1.8. DATA COLLECTION

1.8.1. Primary data

The primary data has been used in this study for carrying out the analysis in

conformity with the objectives of the study to draw the inference. Primary data needed

for the study has been collected from entrepreneurs of the Small scale industrial units in

Dharmapuri districts of Tamil Nadu in order to examine the efficiency and performance

of the entrepreneurs by using a well-designed question. The researcher’s direct access

with the entrepreneurs has been used, to obtain the adequate information regarding their

efficiency and performance and constraints faced by entrepreneurs.

1.8.2. Secondary data

The secondary data has been collected from the publications, websites, which are

been needed for the study. In addition, information and data needed for the study has also

been collected from various government agencies such as District Industries Centre,

Tamil Nadu Industrial Investment Corporation Ltd. [TIIC], Entrepreneurship

Development Institute.

1.8.3. Pilot Study

After the formulation of the questionnaire cum interview schedule, Pilot study was

conducted. A sample of 50 respondents from the population was selected. Based on the

Interview schedule and also based on the suggestions of the respondents, relevant

30
modifications were done to the instrument. Then the schedule cum questionnaire

instrument was finalized.

1.9. Tools used

The collected data have been analyzed with the help of statistical tools like percentage,

Chi-square test, Non parametric Fried Man’s test, ANOVA, Regression analysis,

Correlation analysis, Factor analysis, and GARRETT Ranking.

1.10. SCHEME OF CHAPTERS

Chapter 1: Introduction and design of the study

This chapter presents a brief introduction of the study, statement of the problem,

objectives of the study, Methodology Limitations and chapter scheme of the study.

Chapter 2: Review of Literature

The Second Chapter deals with the review of related concepts and the already existing

literature on this research topic. This chapter also deals with the various empirical studies

of various authors. It will be useful to have a comprehensive understanding of the

research topic under discussion.

Chapter 3: An overview of Entrepreneurs and Entrepreneurial Development

The Third Chapter briefly presents profile of the study area. The theoretical framework of

entrepreneurs perception and resistance about adoption of training and development

programmes, challenges faced by entrepreneurs. for entrepreneurs to update their

knowledge.

31
Chapter 4: Data Analysis

The Fourth Chapter provides the analysis and interpretation of the study. In this chapter

the collected data from the respondents were statistically analyzed and presented in the

form of tables and bar charts.

Chapter 5: Summary and conclusion

The Fifth Chapter includes findings, suggestions and conclusion for improving the of

entrepreneurship as well as recommendations for future studies.

CHAPTER SCHEME

Chapter-I: Deals with Introduction and Design of the study.

Chapter-II: Presents the Review of Literature.

Chapter-III: Presents the Concept and Developmental Issues of Women Entrepreneurs.

Chapter-IV: Gives data analysis and interpretation.

Chapter-V: Summarises the key findings of the study and offers suitable suggestions to

promote women entrepreneurship.

32
 CHAPTER-II

CONCEPTUAL FRAMEWORK AND REVIEW OF LITERATURE

2.1. INTRODUCTION

An attempt has been made to study the earlier studies which were very popular in the

field of entrepreneurship. Having determined the research problem and its worthiness, the

researcher had decided to make an empirical study of the problem. There had been a

continuous research in the field of entrepreneur which proves to be very useful and

provides an insight into the objectives of the study. A brief account of important studies

pertaining to women entrepreneurs are presented as follows, Though Hence literature

review is given under different heads as Studies on Entrepreneur, Studies on

Entrepreneurship, Studies on Entrepreneurship development, Studies on Women

Entrepreneurship

In almost all Research studies conducted in the above fields, the importance of

imparting training to potential entrepreneurs to enable them for successful venture

launching were stressed. There have been several studies on entrepreneurs. It was

Cantillion (1755) who coined the term “Entrepreneurship” in French. The term

“Entrepreneur” was variously translated into English as “Merchant”, “Adventurer”, or

“Employer”, though the precise meaning is “the undertaker of the project”. In the 16th

Century the Frenchmen who undertook military expedition were also referred to as

“Entrepreneur”. John Stuart Mill (1848) popularized the term in England. According to

the Social Science Encyclopedia by Adam Kuper and Jessica Kuper (1985), the term

“Entrepreneur” seems to have been introduced in economic theory. Economists,

33
sociologists, psychologists and other social scientists have increasingly recognized

entrepreneurship as a profession in recent time. Different scholars studied the

development of entrepreneurship from different perspectives.

Entrepreneurship was considered to be one of the most important determinants in

the process of industrialization, creating employment opportunities and accelerating

economic growth. The entrepreneur was the central figure in the process of development.

He introduced new combinations of factors thereby channelizing the economy's resource

along productive lines. The entrepreneurial activities stimulated progress and formed the

mainspring of economic development. The availability of entrepreneurs therefore, was

the pre-condition of economic growth. Small Scale Industries constituting about 90% of

the total registered units not only enhanced employment but also broadened the industrial

base and enabled entrepreneurship to spread to more regions and layers of society.

David McClelland and David G Winter (1969)1 in their book Motivating

Economic Achievement revealed that individuals with personality characteristics, which

are indicative of high need for achievement are likely to behave entrepreneurially. He

regarded the following as unique characteristics of high, need achievement (i) a

performance for moderate risks and a propensity to work harder in such situation (ii) a

belief that one’s personal efforts will be influential in the attainment of some goal and

pleasure derived from this belief. (iii) A tendency to perceive the probability of success in

attaining a goal as being relatively high, (iv) a need for feedback regarding success or

1
David McClelland and David G Winter(1969), Motivating Economic Achievement,Free Press-Collier-
Macmillan,New York and London, pp.409

34
failure of one’s efforts (v) the capacity to plan ahead and to be particularly aware of the

passage of time and (vi) interest in excellence for its own sake.

Cochran (1965)2has tried to characterize an entrepreneur as a model personality in

society. He represents certain ascertainable levels of education, social status and types of

cultural conditioning that produce roughly definable model personality. According to

him, an individual’s performance as a businessman is influenced by three factors, (i) his

own attitude towards occupation, (ii) the role expectations held by sanctioning groups,

and (iii) the operational requirements of the job. Society's values are the most important

determinants of these factors.

Ganesan, R., Dilbagh Kaur and R.C. Maheshwari (2002) 3 in their article stated

that, Entrepreneurship as a strategy to promote enterprise can be successful only if the

same is duly imparted and conscientiously induced. This argument holds strong

particularly when such a strategy is being tried on Entrepreneur. In the present context

many of the theories dealing with entrepreneurship has seen a divergence from practice.

It is seen that many entrepreneurs are motivated on their own to start their own

enterprises. Many of these entrepreneurs actually do not receive any structured

entrepreneurial input. They learn the same through trial and error. Keeping these views

on entrepreneurship, this article deals with the problems, which these self-motivated

entrepreneurs con front, and then highlights the prospects and the future challenges. The

article establishes the role entrepreneurial training can play in making the ventures

2
Cochran, T.C. (1968), “Entrepreneurship”, International Encyclopedia of Social Sciences, Macmillan and Free
Press, Vol. 5
3
R. Ganesan, Dilbagh Kaur and R.C. Maheshwari “Entrepreneurs Problems and Prospects”, Journal of
Entrepreneurship, SAGE Publications, Vol. 11, No. 1, 75-93 (2002)

35
initiated by these self-motivated women self-sustaining. The article identifies the concern

areas of these women who are in business and also proposes what kind of entrepreneurial

training would be ideal. The authors feel that when more women initiate businesses

without such formal training, one should probably then start investing resources into

making them stand on their own. The article has also identified certain special factors and

problems women in business generally confront and the gendered root of such problems.

The suggestion is that these problems could be taken care of through investing in building

network and alliances.

Mitra, Reshmi (2002)4 This article examines factors that influence the growth of

women-run firms in order to understand why so many of them remain small. The study

proposes an integration of gender-related factors into generalized stages of growth

models in order to broaden our understanding of growth patterns in women-run

enterprises. A typology of women entrepreneurs is proposed and tested using a sample of

Indian entrepreneurs. Differences in the factors influencing growth in women-owned

firms are investigated in order to suggest how the main constraints can be addressed.

Beena and Sushma (2003)5 revealed that probably in this country, Entrepreneur

potential has not been tapped. So, many more Entrepreneur should be encouraged to take

4
Mitra, Reshmi, “Article: The growth pattern of women-run enterprises: An empirical study in India”, Journal of
Developmental Entrepreneurship, August 2002.
5
C.Beena and B.Sushma-“entrepreneurs managing petty business: A study from
motivational perspective”- Southern Economist Vol.42, No: 2, Mar 15, 2003.
36
up small business activities. Entrepreneur involving in such kind of activities will become

self sufficient, self - dependent and more confident in facing life challenges and hurdles.

These entrepreneurs should be registered with the government so that they can be given

help during the time of need.

Jeevanantham (2003)6 in her research work suggested that women should be

given career guidance in people’s polytechnics which will shape them as entrepreneurs.

As far as the state and central government are concerned a scheme should be evolved for

extending additional concessions for women entrepreneurs for setting up industrial units.

Poonam Sinha (2003)7 in a study based on a sample of 400 men and

entrepreneurs revealed that the main motivating factor to start an enterprise was to earn

money by both men and women entrepreneurs. The units set up by them were mostly

micro enterprises. Traditional activities such as handicrafts and handloom still dominate

the type of activities undertaken by the entrepreneurs. The units of both men and women

entrepreneurs were suffering from inadequate income generation. Majority of

entrepreneurs managed finance through their own sources. The study concluded that

Entrepreneurof the region have enough potential to take up entrepreneurship as a career.

Determined efforts from women entrepreneurs supported by congenial climate can bring

about substantial results.

6
A. Jeevanantham, “Development of Women Entrepreneurship in Trichirappalli
District” - 2003, Bharathidasan University, Trichy.
7
Poonam Sinha, Associate Faculty Member, Indian Institute of Entrepreneurship, Guwahati, “Women
entrepreneurship in the North East India: Motivation, social support and constraints.” Indian Journal of
Industrial Relations Vol 38, No.4, April 2003.p 425 - 441.

37
 Sindhu S. Narayan and P.S. Geethakutty (2003)8 entrepreneurship has been

recognized as an essential ingredient of economic development. Very high literacy rate

and lack of employment opportunities paved way for many unemployed youth including

women to take up small-scale business units. In this study entrepreneurial success index

(ESI) was developed to measure the level of success of women.

Watson (2003)9 examined the failure rates among female-controlled businesses in

Australia. The analysis of the study highlighted that the rate of failure in female-

controlled businesses is relatively higher than male-controlled businesses. However, the

difference is not significant after controlling the effects of the industry.

Mahtab. S. Bamji, PVVS Murthy, M. Vishnuvardhan Rao and Devyani

Dangoria (2004)10 discussed in their study that to improve the health care outreach in

villages, an experiment was carried out in five non-Integrated Child Development

Scheme (ICDS) villages (total population 4 400) of the Narsapur Mandal of Medak

district of Andhra Pradesh (AP). Local women (one per village) with an education level

equivalent to seventh grade, were trained in aspects of preventive and curative health

care, and nutrition. These women advise the community, particularly women, on health,

nutrition, sanitation and family planning. They register all pregnant women, ensure

antenatal check-up, compliance with taking of iron folic acid tablets, record blood

8
Sindhu S. Narayan and P.S. Geethakutty, “level of entrepreneurial success among women entrepreneurs in
agribusiness”, Journal of Tropical Agriculture, Vol. 41, pp. 41-44, 2003.
9
Watson J (2003), “Failure Rates for Female-Controlled Businesses: Are They Different?”, Journal of
Small Business Management, Vol. 41. No. 3, pp. 262-277.
10
Mahtab.S. Bamji, PVVS Murthy, M. Vishnuvardhan Rao and Devyani Dangoria, “Impact of Women
Health and Nutrition Entrepreneurs and Mobilizers on Health and Nutrition of Rural Children and Mothers’
Knowledge and Health-related Practices”, Regional Health Forum WHO South-East Asia Region Volume
8 Number 1, 2004

38
pressure, identify at–risk pregnant women and treat minor ailments for which the

community pays them. Records of deaths with age and cause, and births with birth weight

(wherever possible) are maintained. ‘Dais’ (traditional birth attendants) are also being

trained so that both groups of women can work in tandem. While no monthly stipend is

paid, a daily wage is given for days of training and small incentive money of Rs.5/- for

each vital event reported. The positive outcomes after three years were: remarkable

improvement in mothers’ knowledge of nutrition, and practices related to maternal diet,

and child feeding; increase in institutional deliveries; reduction in perinatal and neonatal

mortality, (infant mortality also declined after three years), and reduction in morbidity

and in the incidence of vitamin A deficiency (Bitot’s spots) in preschool children. There

was only marginal improvement in child nutrition, and no improvement in the incidence

of low birth weight, which was around 20%.

Shiv Ganesh, Rebecca Gill (2004)11 this paper is a critical examination of the

“free agent” metaphor for entrepreneurialism as it is expressed in the discourse of women

entrepreneurs in a Northwestern state in the U.S. We argue that the free agent metaphor

serves to highlight empowering aspects of entrepreneurship, but hides several constraints.

The free agent metaphor is especially evident in our participants’ stories about the

reasons they chose to become entrepreneurs. Here, they identify themes of autonomy,

confidence, opportunity and self-expression. The constraints hidden by the free agent

metaphor as evident in the women’s’ description of their entrepreneurial experiences are

gendered, and include discrimination, management and work-family balance issues. We

11
Shiv Ganesh, Rebecca Gill, “I Wanted to Have the Choices:” Women Entrepreneurs and the Free Agent
Metaphor”, Preliminary Programme, Internal Communication Association, 31st May 2004.

39
conclude the paper by discussing the implications of our findings for understandings of

empowerment and studies of hegemony.

Jamie Cistoldi Lee (2004)12 This article highlighted a case study of a non-

governmental organization in Costa Rica that initiated a pilot program in 2002 to expand

information and communication technology to 100 women nationwide through a free

computer class. This program was developed in order to increase women's access to and

control over technology. It was important to analyze the success of this and other

programs from the perspective of the participants and to understand how such programs

changed behaviours in the public and private sphere, on the micro and macro levels. The

article specifically assesses how and in what ways this program altered job experiences

for the women participants, modified their role within the family, reformulated the

individual's perspective of self, and empowered the students. The data was collected over

several months of field work and included over 20 in-depth, semi-structured interviews

and two focus groups with 33 respondents. Qualitative methods were used to analyze the

individual experiences of the students in the program to better understand the successes

and failures of this type of program in the context of development for women in the Third

World.

Andrea Smith-Hunter (2004)13 This article begins with a look at women

employment over the years and the historical place of women entrepreneurship in today’s

12
Jamie Cistoldi Lee, “Access, Self-Image, and Empowerment: Computer Training for Women
Entrepreneurs in Costa Rica”, Gender, Technology and Development, SAGE Publications, Vol. 8, No. 2,
209-229 (2004)
13
Andrea Smith-Hunter, “Women Entrepreneurship Across Racial Lines: Current Status, Critical Issues,
and Future Implications”, Journal of Hispanic Higher Education, SAGE Publications, Vol. 3, No. 4, 363-
381 (2004).

40
economy. It continues by analyzing data statistically on women entrepreneurs in the

United States across racial lines, with a particular focus on Hispanic women

entrepreneurs. The article ends by examining the critical issues that are important for

women entrepreneurs in today’s environment as well as the future implications of these

issues.

Kamalakannan (2005)14 in his issue explained the role of financial institutions in

development of women entrepreneurs. The problems of women entrepreneurs are listed.

He suggested, solving the problem of finance loan by the financial institutions,

commercial banks and non government organisations engaged in financing and

promoting entrepreneurship among women.

Swaminathan and Buvaneswaran (2005)15 concluded that if women are to

evolve management styles, they need to become more assertive, more forceful in their

exercise of legitimate power and authority. This will entail not only the empowerment of

women in family business but society in general.

Arundhati Chattopadhyay (2005)16 In India, very few women entrepreneurs are

in the big enterprises. They are mainly concentrated in the Small Scale Industries (SSIs).

The various constraints in business and the family burden restrict them to start the

business in large scale.

14
K.Kamalakannan - “The role of financial institutions in development of women entrepreneurs”
Kurukshetra, April, 2005, vol.53: No:6.
15
M.Swaminathan and V.Buvaneswaran, “Empowering of women entrepreneurs in rural family business”
SMART Journal of Business Management Studies Vol 1, No.2 July - Dec 2005.
16
Arundhati Chattopadhyay, National Productivity Council, New Delhi. “Women and Entrepreneurship”,
Yojana Vol: 49, Jan 2005.

41
 Prema Basargekar (2007)17 discussed in their research that to analyzes the

evolution of various concepts and definitions of entrepreneurship with special reference

to women. It provides the present scenario of women entrepreneurs in India and the

various challenges, which they are facing in the changing global scenario. It then focuses

on marketing challenges faced by women entrepreneurs, and the various strategies used

by them and related organizations to overcome the challenges.

Shankar, M. M. and Vijayalakshmi, M. E., (2007)18 The concept of

entrepreneurship has gained worldwide popularity in recent years. Women are becoming

entrepreneurs at a faster rate as compared to men. It is estimated that women

entrepreneurs presently comprise 10% of the total number of entrepreneurs in India, and

this figure is found to be increasing every year. If the prevailing trend continues, it is

likely that in another five years, women will comprise 20% of the entrepreneurial force.

The women-owned enterprises in India have increased to 7%, with Tamil Nadu recording

the highest growth of 18%. With this background, the research examines the motivating

factors of women entrepreneurs in Chennai, the capital city of Tamil Nadu. The various

motivators were categorized into 'Pull' and 'Push' factors. The study uses a descriptive

research model, with the help of non-probability sampling design and a convenience

method for sampling data collection. Data were collected from 47 respondents. It was

found that many of the women entrepreneurs in this study were motivated by the 'pull'

factors.

17
Prema Basargekar, “Women Entrepreneurs: Challenges Faced”, The ICFAI Journal of Entrepreneurship
Development, Vol. 4, No. 4, pp. 6-15, 2007.
18
Shankar, M. M. and Vijayalakshmi, M. E., “A Study on the Motivating Factors of Women Entrepreneurs
in Chennai”, The Icfai Journal of Management Research, Vol. 6, No. 2, pp. 46-54, 2007.

42
 Kilby (1969)19maintained that socio-cultural factors impeded the development of

entrepreneurial characteristics in Lagos. L.E. Grayson concluded from his research that

these being potent and latent entrepreneurial capabilities, as in India, Pakistan, Kenya and

Nigeria, entrepreneurial class can be 'forcibly' created by exogenous circumstances.

Development of contacts, breaking away from the vicious circle of isolation and

widening the horizon of experience can foster entrepreneurship in African countries.

A number of social scientists have contended that entrepreneurship is the key variable

that links the socio-cultural milieu with the rate of economic development. Recently,

even economists have shifted the emphasis from the rate of capital formation to the

growth of high-level manpower capability, such as entrepreneurs, as the major

determinant of the rate of economic growth. There are several research studies on the

various factors that have promoted entrepreneurship in different societies.

Young (1971)20in his study, Micro Sociological Interpretation of

Entrepreneurship, concluded that entrepreneurial activity is generated by particular

family traits, backgrounds and experiences and as a member of certain ethnic groups that

reflected their general cultural values in the professions they chose. These personality

characteristics are the forceful reflections of these antecedent conditions and these

constitute an independent factor, which mediates structural factors and consequent

economic growth.

19
Kilby, Peter (1969), Industrialization in an Open Economy, Nigeria, University Press,Cambridge,Ch. 10, Section
IV.
20
Young, F.W. (1971), A Micro Sociological Interpretation of Entrepreneurship, quoted from Peter Kilby.
Entrepreneurship and Economic Development, Free Press, New York

43
 Kailash Chander (2001)21 pointed out the importance of entrepreneurship for the

socio-economic development of any nation and had laid emphasis on more and more

entrepreneurs to enter electronics industry whose development was of prime importance

for every nation entering the 21" century.

Anwar (2002)22from the social point of view opine that the wide-spread

unemployment in India is one of the chief reasons for the socio-economic problems.

Unemployment implies frustration and anger of the unemployed, which may find

expression in agitation and outlet even in violence. Unemployment among the Indian

educated youth is also an alarming problem which has become more pronounced in

recent years. Therefore, efforts should be made to provide employment through the

promotion of income generating subsidiary occupations, development of cottage and

small scale industries, modernization of agriculture. He also emphasized on the role of

entrepreneurship in the current era of economic liberalization, privatization and

globalization. In modern era entrepreneurs will have to be innovative, research and

development oriented, and industrial activities should be conducted to keep pace with

international standards. This calls for committed entrepreneurs with regard to adoption

and adaptation of innovative methods of production, technology transfer and coping with

competition with foreign markets.

21
Kailash Chander(2001) "Emergence of industrial Entrepreneurship" in Entrepreneurship and Small Business
Management Ed. By B.S.Bhatia& G.S.Batra, Deep & Deep Publications Pvt. Ltd., New Delhi.
22
Saikh, Anwar (2002), “Evaluation of Entrepreneurship Development Programmes“,Seminar Research Paper,
Wadia College.

44
 Carter, Gartner, and Shaver & Gatewood (2003)23explored and compared the

reasons that nascent entrepreneurs and non-entrepreneurs start enterprises and make

career choices. The results of their research indicated that the main reasons individual's

start enterprises are self- realization, financial success, roles, innovation, recognition and

independence.

Srivatsava et.al. (1988)24 visualized two stages for entrepreneurshipdevelopment

model viz., horizontal model and vertical model. The horizontal model suggests the

setting up of a central agency, the District Entrepreneurial Centre, to make a

comprehensive study of business potentials of that area. This agency would also make an

estimate of financial and institutional requirements of prospective entrepreneurs. It also

prescribes a detailed study of technological set-up of production system to facilitate the

division of it into separate sub-systems to cater to the needs of the core system of

production. Smaller units may be established for each sub-systems of production.

Vertical model prescribes a pattern of a big mother industry and the feeder units.

However, within this system, all the feeder units are centres of production, and supply

their output to mother industry.

The model conceptualized by Sahney (1989)25 related to women entrepreneurship

development. He observed that women possessed many traits required for entrepreneurial

success, like sense of responsibility, devotion of duty, sincerity of purpose, determination

23
Carter, N. M., Gartner, W. B., Shaver K. G., ＆ Gatewood E. J., (2003). The career reasons of nascent
entrepreneurs. Journal of Business Venturing, Vol 18 Issue 1, pp-13-39.
24
Srivatsava, A.K., R.C. Mishra and N.S. Bisht (1988)Developing Entrepreneurship: A Strategic Layout,Man
and Development, Vol. 10, No.3, pp.117-124.
25
Sahney, M., (1989) Women Entrepreneurship On the Go, Financial Express, Oct. 14, p.7.

45
and capability of hard work, what they lack is the opportunity. Hence he suggested that

steps should be taken to boost entrepreneurship among women by establishing Women's

Wings in the District Industries Centres and publicity in government owned electronic

media should be given in support of inculcating entrepreneurship in Indian women.

Sadhak (1989)26 put forward a Resource Linked Integrated Model. The contention

of this model was that while initiating entrepreneurship development, local conditions

like socio-economic situation, local social,political and economic institutions, locally

available manpower and above all, natural resources should be taken into account so that

the trained entrepreneurs would be capable of exploiting local resources. He also

suggested that separate EDP institutes for backward and non-backward areas should be

developed.

Selvam (1990)27 suggested a conceptual model, which envisaged that

entrepreneurship education should be made a part of the curriculum. The main features of

the model include: (i) The process of education shouldbe such that it facilitates learning

and helped in converting what is learned into a tool of action; (ii) Such an education

results in entrepreneurial traits that could be acquired if entrepreneurial attitude is present

in an individual; and (iii) Such an attitude, when encountered with positive social and

economic factors, culminates in an entrepreneurial culture, spread of entrepreneurial

culture among all sections of the society leading to formation of an entrepreneurial

26
Sadhak, H., (1989)The Role of Entrepreneur in Backward Area, Delhi: Daya Publishing House, 1989.
27
Selvam, M., (1990). Expanding Entrepreneurial Base, Laghu Udyog Samachar, Vol. 15,No.4, pp. 3-8.

46
society, wherein there are adequate entrepreneurs and also all required infrastructural

facilities.

Akhouri and Mishra (1990)28 suggested that entrepreneurial education should

become a part of school curriculum so that entrepreneurial culture, including values,

attitudes, motivation and competencies could be infused among the people at an early

stage in their lives and suggested a two-stage model. In the early stage of education, the

entrepreneurship education containing more inputs related to entrepreneurial spirit,

comparatively moderate inputs of motivation and very little inputs for competencies in

the beginning years of school life should be given to germinate entrepreneurial culture. In

the higher secondary stage, themaximum inputs related to competencies might be offered,

followed by moderate stressing on motivation and comparatively much less coverage of

entrepreneurial spirit.

Ramamurthy and Krishnakumar (1990)29 conducted a study in thetwin cities of

Hyderabad and Secunderabad with the objective of drawing a profile of entrepreneurs in

small-scale industrial units. The study also made an attempt to examine the impact of

family background and educational qualifications of the entrepreneurs on the

development of entrepreneurship. The primary data was used to collect the information

through questionnaires. It was observed that most of the entrepreneurs possessed

technical qualifications and came from families of people in service or practicing the

28
Akhouri, M.M.P., and S.P. Mishra (1990)Entrepreneurship Education: A Conceptual Base, Approacti and
Metiiodology, Indian Management, Vol. 29, Nos. 11 & 12, pp. 53- 65.
29
Ramamurthy, S., Mary V. Jessica and T. Krishna Kumar(1990).Entrepreneur's Profile:Some Aspects,Khadi
Gramodyog, Vol. 36, No. 10, July 1990.

47
same profession. This might be due to the fact that people possessingtechnical skill for

handling machinery and also for technical expertise they hired people with past

experience. It was also observed that educational qualification did not have an influence

on capacity utilization. It was suggested that people with a personal urge were to be

selected and trained and these entrepreneurs performed the task of transforming the

potential into effective productivity. They concluded that the entrepreneurs having

undergone Entrepreneurial Development Programmes met with greater success with the

objective of fuller and better utilization of all resources.

Upadhyaya (1990)30 underlined the importance of training inentrepreneurship

development. He observed that human beings were an integral part of the society

subjected to the total environment and hence man should not only adjust himself to the

situation, but also control the situation in a dynamic way and try to exploit it fully so that

it might give the desired result. He suggested that this was possible through training and

the Entrepreneurial Management Training Programme was one such training to be given

under these four phases: The first phase includes identification and selection of an

Individual to become entrepreneur. The second phase involves providing education to the

selected potential entrepreneur for his all-round development. Under third phase, an

individual is exposed to various areas of risk, uncertainties, hazards and tensions in order

to gain the actual work experience. And the last phase concentrates on training and

retraining for enriching the entrepreneurial qualities through various teaching andlearning

techniques.
30
Upadhyaya, R., (1990)Entrepreneurship Development Through Training Programme, in Uddin et.al., (ed.,) pp.
156-161.

48
 Wood and Young (1993)31 analyzed the type of education that wasneeded for

successful entrepreneurship. They surveyed 100 of the most successful entrepreneurs and

executives in business world to determine when, how and in what areas an entrepreneur

needed to be educated. The survey revealed the importance of entrepreneurial education

at an earlystage of student's curriculum. Further, they emphasized that importance of

creativity was not included in the present curriculum. To conclude, the models of

entrepreneurship development highlight the lack of entrepreneurial content of Indian

education at different levels. These models envisage the imparting of entrepreneurial

spirit in and adoption by Indian youth.

Harris and Rowe (1970)32 listed impediments to entrepreneurialdevelopment in

Africa, such as the difference between the social world in which an entrepreneur lives

and the economic world in which he has to operate, undeveloped, institutionalized ways

of gaining knowledge, recruiting skills and borrowing money; absence of commercial

experience, lack of inter-regional mobility; oligopolistic market conditions, scarcity of

viable projects, absence of business environment, management deficiency, poor standard

of financial management and little propensity to innovate.

Kilbey Peter(1971)33 in his book, “Entrepreneurship and Economic Development”

states that most of the self- employed persons are associated with a business only because

31
Wood, Jacqueline N., Young, John E., (1993). Entrepreneurshi'ps Requisite Areas of Development: A Survey of
Top Executives in Successful Entrepreneurial Firm, Journal of Business Venturing (March); Elsevier Science
Publishing Co., Inc; 655 Avenue of America, New York,
32
Harris, John R., (1970).Nigerian Entrepreneursliip in Industry, in Eicher and Liedbiolus(ed.,) Growth and
Development in Nigerian Economy, East Lausin: Michigan University Press, p.310.
33
Kilbey, Peter(1971),Hunting the Heffalump in Entrepreneurship and Economic Development The Free Press,
(Ed), New York, pp.1-30.

49
the yare unable to find other forms of employment. Personal and family funds were the

important sources of initial capital and for expansion they re- invested their earnings. It is

also observed that rural entrepreneur is not likely to exhibit any entrepreneurial qualities

but urban entrepreneur demonstrate entrepreneurial qualities to some extent. Regarding

economic development, social scientists recognize the importance of entrepreneurship as

a major determinant for economic and social progress. Kurbalvi discussed the issues in

promotion of small business enterprises in Botswana. The study is of descriptive nature.

The analysis states that the potential contribution of small enterprises in generating

employment and income in rural areas of Africa is increasingly recognized. SBEs played

an important role in creating employment opportunities for the qualified unemployed.

There were about 56000 small enterprises operating in Botswana with over 125000

employees in the formal and informal sectors. There has been an alarming trend in the

ownership of SBEs by foreigners. The government in order to fulfill the goals of vision

2016 has embarked on the citizen economic empowerment programme to enable the

citizens of Botswana tomeaningfully participate in every aspect of the economy in the

fulfilment of socialjustice. SBEs had proved to be the best option in making a livelihood.

Deshpande (1984)34, in his study, Entrepreneurial Development in Marathwada,

have observed that backwardness of the Marathwada was mainly due to the absence of

the right type of entrepreneurs in the region. The objectives of his study were to: trace the

socioeconomic origin of entrepreneurs; entrepreneurial role; the different stages of

development of an industrial unit and locate the exact problem of small entrepreneurs at
34
Deshpande, M.U. (1984), Entrepreneurship of Small-Scale Industries, Deep and Deep Publication, New Delhi, p.
271.

50
the various stages. The study suggested guidelines for the healthy growth of the small

industrial units in an underdeveloped region. For the purpose of the survey of the small-

scale industrial units in the Marathwada region, three centers, i. e. Aurangabad, Jalana,

and Bhir were selected. The deliberate selection of these three centers had been effected

with a broad spectrum of representative samples from places that have varied commercial

and industrial backgrounds and uniqueness.

The author concluded that the government efforts to create favourable conditions

for the development of industrial sectors in these underdeveloped regions are paying

dividends. Government incentives like central subsidy, development of the industrial

areas and provision of infrastructure have initiated an accelerated process of

industrialization and encouraged some people to take up entrepreneurship. It appears that

the backwardness of the Marathwada region was mainly due to the absence of the right

type of entrepreneurship. The study indicates that the emergence of entrepreneurship is

not strictly a psychological or socio psychological phenomenon but it is also conditioned

by political environment, the administrative system and commitment to economic

development. The author suggested that a team of industrialists, psychologists,

economists and management experts should help the development agencies. This team is

expected to evaluate not only the economic feasibility of the proposed units but also that

of the prospective entrepreneurs.

Klofsten (2000)35 took up Sweden to be the study area of his research. He found

that in the country, there were many initiatives to stimulate individuals to act in an
35
Magnus Klofsten, (2000) "Training entrepreneurship at universities: a Swedish case", Journal of European
Industrial Training, Vol. 24 Issue: 6, pp.337-344,

51
entrepreneurial manner, including professorships in entrepreneurialism at universities,

new courses and training programmes. Firms such as Ericsson, Telia and Saab had

established “innovation units” to stimulate new ideas and utilize the energy and ideas of

their employees. The article tried to describe and analyse an initiative: the

Entrepreneurship and New Business Development Programme (the ENP programme) for

the training of individuals in the start-up of new technology or knowledge intensive

enterprises. The model was developed by the centre for innovation and Entrepreneurship

at Linkoping University and a private network of enterprises. The article began with a

comprehensive discussion on characteristics of the entrepreneurs and its implications in

the training of the individuals. It focused on entrepreneurship training at universities in

general and the training of start-ups within the milieu in particular. The first conclusion

of the study was that it was possible to stimulate entrepreneurial behaviour in many ways

and the same would lead to positive outcomes for example, an improvement in the

quality of new projects and firms. In order to prove the point, author came up with a

successful model for the training of entrepreneurial behaviour in individuals. The model

that was developed was settled to stimulate technology-based and knowledge-intensive

businesses, but it was probably applicable to other types of environments in which it was

desirable to stimulate start-ups. Some of the previous studies pointed out that despite of

high positive talk about entrepreneurship, certain barriers still existed, both on the supply

side and in the execution of entrepreneurship training. The barriers ranged from clashes

in internal priorities and questions about necessary competence to the credibility of the

one supplying the training. The second conclusion was to create an acceptance for these

52
types of activities both in the university world in the form of support from the

university’s administration and in the target group for which the programme was

designed. To succeed, proposal for 13 success factors, were given which included not

only pedagogical, milieu and competence aspects, but also target-group related aspects.

Over the years a large number of articles have been written on business support and

business training, the two main categories of support that were highlighted in the paper

were, configuration orientation and process orientation. Configuration orientation (the

one most studied) dealt with static arrangements, like the description of facilities,

budgets, organizational charts, localization, and institutional links. Process orientation

referred to a support of more “hands-on” nature that investigated and took into

consideration, for example, a firm’s actual need for management support, the

heterogeneity of the population of firms and the needed to learn by doing. The third

conclusion was that process orientation was preferred over configuration orientation in

the training of entrepreneurship because the former’s dynamism and pedagogy one was

able to meet the individual participant’s need of support in a better way. The paper

generated a number of implications for continued research and practice. The most

important task for those intending to carry out research in entrepreneurial behaviour or to

stimulate individuals practically to behave entrepreneurially was to create an

understanding of the mechanisms underlying the criteria for success. Particular attention

was needed to be paid to those mechanisms at work behind an individual’s real need for

entrepreneurship training. The research questions that arose from the paper were what

methods could be used to determine an individual’s need for such stimulation? What

53
methods could be used to determine whether an individual was an effective recipient of

such stimulation? What stimulation was needed? Who determined what type of

stimulation was necessary? What follow-up could one make to determine whether

training was successful? And what time-interval should be used in such a follow-up? This

way the paper opened up various areas of research for the interested researchers.

Graevenitz et.al. (2010)36 showed through his study that entrepreneurship

education was ranked high on policy agendas in Europe and the US, but little research

was available to assess its impact. The interest was found to decline somewhat although

the course had significant positive effects on students’ self-assessed entrepreneurial

skills. While many studies found positive effects, others cautioned that entrepreneurship

in general may not create growth in industrialized countries. Academic entrepreneurs

were likely to employ more people than their non-academic counterparts and founders

with university education apparently made higher investments in their business than non-

academic entrepreneurs. the paper had to make three contributions: to develop a new

conceptual perspective to emphasize on entrepreneurship learning, to study the effects of

a large-scale compulsory entrepreneurship course at a major German university, using a

pre-test–post-test design and to address the welfare implications of the results for future

evaluation of entrepreneurship education. The study was completed on the basis of three

hypotheses: the variance of beliefs after the course is greater than the variance of beliefs

before the course; if signals are consistent then beliefs after the course would be stronger,

stronger pre-course signals lead to stronger beliefs after the course; and if students
36
Von Graevenitz G, Harhoff D, Weber R (2010). The effects of entrepreneurship education. Journal of
Economic Behaviour and Organisation,Vol 76 pp: 90-112.

54
received consistent signals, then those among them who had received signals before the

course would change their beliefs less. The setting for data collection was the Department

of Business Administration, in the Munich School of Management where students were

surveyed through written or an online survey. The hypotheses were tested using learning

model, and the model showed that Bayesian updating had effects on students’ beliefs

about their entrepreneurial aptitude. Authors found a statistically significant increase in

the variance of beliefs, once non-normality of the distributions was allowed by using

Levene’s robust test or Brown and Forsythe’s median test. Another result indicated that

strength and consistency of students’ signals affected intentions to become entrepreneurs

as predicted. The third result showed that marginal effect was generally highly significant

and negative for all groups of students who changed their beliefs. The probity regression

result with consistent and strong pre-course signals indicated that the strength and

consistency of signals that students received, affected changes in students’ intentions to

become entrepreneurs as predicted by Hypothesis 3. The framework outlined in the paper

opened up several avenues for future work mentioning to further test the present

theoretical framework, authors intended to reapply the framework to other

entrepreneurship courses and seek to establish whether the framework also described

effects of other types of education, which were intended to help students discover their

proclivity for a specific type of work. Secondly, an integration of the framework with the

theory of planned behaviour was likely to be helpful in further identifying exactly which

benefits and costs that entrepreneurship education could affect. Finally, the integration of

55
uncertainty into models of skill formation over the life cycle held out the promise of a

theory of learning about own aptitude.

Authors Dodescu & Badulescu (2011)37 presented a paper on women

entrepreneurship taking the area of western Romania for the case study. Their paper

consisted of importance and objectives of entrepreneurial education and training,

entrepreneurship model and presentation of AntrES (The Entrepreneurship and the

Equality of Chances) programme and an inter-regional model of Women Entrepreneurial

School, a project financed by the European Structural Fund. The paper proved that

entrepreneurship education and training were with the motive to acquire knowledge and

skills, to identify talents, to undo the risk-adverse bias of many analytical techniques and

to encourage new start-ups and entrepreneurial ventures. Writers found that despite these

aims some entrepreneurship programmes did not address the real needs of entrepreneurs

and there were sometimes significant differences between the perceptions of the training

providers and the entrepreneurs’ expectations and needs. The problem directed to assess

the effectiveness of an entrepreneurial training programme and to evaluate the measure of

covering the real needs of potential entrepreneurs. The paper made a mention of Vroom’s

model where he had proved that performance (P) is a multiplicative function of

motivation (M) and ability of the person (A): P=f (M*A). Van Vuuren using Vroom’s

model developed Entrepreneurship Training Model and proved that entrepreneurial

performance (E/P) depended on performance motivation, entrepreneurial skills and

business skills: E/S = f [M*(E/S*B/S)]. Many more models were developed taking these
37
Anca DODESCU & Alina BADULESCU(2011) Women Entrepreneurship in the Western Romania. Research
Results and Policy Recommendations, Theoretical and Applied Economics, Volume 18, No.1 (554) pp. 25-48

56
two models as the basis for development in the area of entrepreneurship, where

developers added variables like critical thinking, self-learning, creativity, knowledge,

business plan utilization etc. Further, the authors explained the AntrES programme that

was financed by European Union Social Fund covering the area of western Romania with

a target of 1800 women and implemented through six partner universities with the

objective to promote equality in the field of entrepreneurship, by promoting women

involvement, especially in rural areas, to initiate and develop their own business, in the

context of sustainable development of their communities. The target groups were divided

in three groups – first 288 wishing to develop their own business, next 1440 wishing to

set up their own business and last 72 the students of Economics, trained to spread

awareness and spread the positive attitude towards the entrepreneurship. The project

development resulted in setting up an inter-regional educational research, training and

communication network database on female entrepreneurship, action learning,

preparation of business plans and putting them into practice, leading to increase in the

number of Small and Medium Enterprises (SMEs). This proved positive and further lead

to direct and indirect job creation, poverty reduction, fostered regional development,

women development and positive changes in the lives of 1800 target group of West

Romania.

S.S.Khanka (2009)38in his book Entrepreneurship Development illustrates the

personal characteristics of successful entrepreneurs as hard work, desire for high

achievement, high optimism, independence, foresight, good organizing capacity, and

38
Dr. S. S. Khanka,(2009) Entrepreneurial development: S Chand publication. P-5

57
innovativeness. According to the author, success of a small enterprise is, to a great extent,

attributed to the success of the entrepreneur himself.

Schaumburg-Muller et.al. (2010)39 presented a workshop report on

Entrepreneurship Development arranged by the Centre for Business and Development

Studies at CBS and the Danish Ministry of Foreign Affairs in September 2010. The

objective of the workshop was to use the participants’ joint knowledge and experiences to

discuss and provide conclusions on what role entrepreneurship development has played

and can play to stimulate growth and employment in Africa. Entrepreneurship

development was understood as the promotion and development of activities and

processes that foster and support productive entrepreneurship in the society. The

workshop had twenty participants with long standing insight to the challenges of

entrepreneurship development and employment growth in Africa from international

organizations, development cooperation partners, universities and private enterprises and

organizations. Overall conclusion from the workshop was that entrepreneurship

development needed a holistic approach which must include economic, social and

cultural attitudes toward entrepreneurs and entrepreneurship. From a policy and systemic

perspective, the points were: changes in regulatory business institutions and international

trade policies; the need for entrepreneurs to take initiatives and have sustainable business

models. The workshop found that an appropriate definition of a growth oriented

entrepreneur is a person who could cope up with the challenges and had a plan to develop

his business. Through study it was found that individual initiatives were formulated
39
Schaumburg-Muller, H., Jeppesen, S., & Langevang, T. (2010). Entrepreneurship Development in Africa:
Report from a Workshop 6-8 September 2010. Frederiksberg: Centre for Business and Development Studies, CBS.

58
according to the specific country conditions and the local context, they were integrated in

an overall policy to develop entrepreneurship and create employment where policies

facilitate system changes in key policy areas etc. Certain recommendations that were

given were: vertical strengthening of the educational system to include broad acceptance

of entrepreneurial skills and development; support the financial system to provide

flexible and timely credit etc.

Valarmathi (2010)40have done a study on “Challenges to Entrepreneurial

Development in India”. Some of the major challenges the researcher short listed were

lack of easy finance, shortage of raw materials, historical and social restrictions. The

researcher also observed that lack of technical knowledge and availability are among the

major challenges. He suggests that an environment should be created for the success of

women entrepreneurs also. It should be ensured that the entrepreneurs have access to the

right skills and capital. The researcher came to the conclusion that government sponsored

development activities have benefited only a small selection of women. A large majority

of them are still unaffected by them.

Anyadike Nkechi et.al.(2012)41has conducted a study in Nigeria to investigate the

connection between entrepreneurship and employment generation in Nigeria; assessing

the level of unemployment in Nigeria and how far entrepreneurship has thrived, and also

examines the major problems of entrepreneurship and thus proposing some possible

strategies that can promote effective entrepreneurship that will help control
40
Valamathi, A (2010), “Challanges to Entrepreneurial Development of India”, The Economic Challenger, Lata
Khothari, Ajmar, pp. 40-43
41
Anyadike, N., Emeh, I. And Ukah, F.O. (2012). Entrepreneurship development and employment generation
in Nigeria: Problems and Prospects. Available in http://www.universalresearch journals.org/ujegs.

59
unemployment and thus generate employment for the Nigerian youths especially. The

methodology used for the research is exploratory research. The data has been collected

through secondary sources. The researcher has identified the problems of

entrepreneurship in employment generation in Nigeria are absence of infrastructural

facilities, low standard of education, inadequate working capital, lack of adequate

training and other economic, social and political factors. The prospects of

entrepreneurship development in employment generation in Nigeria he mentioned that all

these cited problems notwithstanding, plausibility of entrepreneurship development to

generate employment abound hence the government fully appreciates the opportunities

entrepreneurship creates for employment generation, their contributions to economic

growth and development as well as the constraints and difficulties in their operating

environment. The government has established various support institutions and relief

measures specially structured to render assistance and succour to minimize the

constraints, which entrepreneurship typically face if not to eliminate them. The support

institutions established by the government range from specialized banks designed to

focus on the funding of Small and Medium Enterprises to agencies and departments all

meant to give a flip to the fortunes of Small and Medium Enterprises. It is also pertinent

to note that government policies behind the establishment and operations of the Small

and Medium Enterprise support institutions had not been effective and productive. From

all indications of observed lapses inherent in them, the policies were either defective in

their formulation and conceptualization, or were not truly and religiously implemented.

Our investigations also revealed that part of the reason why the policies were not

60
effective could be explained by the fact that the operators, managers or proprietors of the

Small and Medium Enterprises were neither consulted nor involved in the formulations of

the policies, which were expected to solve their problems; hence, there were apparent

misplacements of priorities and emphases. The major recommendations of the study are

that the federal government should accelerate the power sector reforms and reestablishing

the power sector to end the looming energy crisis in Nigeria. This is to encourage

entrepreneurial activities in the country as power is a major factor in the economy, in

terms of enterprise activities. The Religious, Ethnic and Political violence and crisis

should be controlled by all means necessary as it displaces people and cause serious harm

on their means of livelihood; many companies have left Nigeria because of violence in

certain areas of the country. Therefore, by all means necessary, any act of violence should

be checkmated. There should be a process of or a program geared towards training youths

in Nigeria in the act of entrepreneurship. This is in lieu of the assertion that knowledge is

power. We are aware that there you win Nigeria, there is National Directorate of

Employment and the inculcation of Entrepreneurial Development Course in all Higher

Institutions’ Curriculum in Nigeria but more still need to be done as these platforms are

just being institutional. They ought to be proactive and pragmatic. If they cannot fit in the

prescription, a new one can be created to take their place. There should be a government

regulated means of entrepreneurial development sponsorship devoid of politics and the

likes that have crippled those erstwhile attempts to encourage entrepreneurship

development in Nigeria in terms of financial sponsorship as lack of access of to finance is

61
one of the major problems of entrepreneurship development in Nigeria (Anyadike

Nkechi, 2012).

Akanwa and Akpanabia (2012)42, examined the need for promoting employment

in Nigeria through the development of entrepreneurship. The work relies mostly on

secondary data from scholars/ authors in the field. They concluded that, government and

its agencies should deliberately encourage entrepreneurial culture and skill in Nigeria in

order to attack and eventually reduce the high level of unemployment situation in the

country so that the nation will boost its economic development.

Baba (2013),43 carried out research work on the challenges of Entrepreneurship

development in Nigeria and way forward. He is of the view that in this era of shrinking

economic activities, government should endeavour to provide the necessary

infrastructures required for skills acquisition among itscitizenry because without

technological skills, entrepreneurial spirit which drives economic development through

job creation will be lacking. He concluded that entrepreneurship is essential for rapid and

sustained economic growth but there is urgent need to change the mind-set of the average

Nigerian especially the youths towards embracing self-employment and de-emphasize the

search for white collar jobs that are non-existent.

Okoye, Iloanya and Udunze (2014)44, recommend that government should

genuinely recognize the essence of entrepreneurship to economic development by

42
Akanwa, P.U. & Akpanabia, N.H. (2012). Entrepreneurship Development as panacea for unemployment
Reduction in Nigeria. reikojournals.org
43
Baba, G.K. (2013). The Challenges of Entrepreneurship Development in Nigeria and way forward. Journal of
Business and Organizational development. Available in www.cenresimpub.org retrieved on 10th March, 2017.
44
Okoye-Nebo, C. Iloanya, K. & Udunze, U. (2014). Youth unemployment and Entrepreneurship Development:
Challenges & Prospects in Nigeria. Kuwait Chapter of Arabian. Journal of Business and Management Review

62
providing the enabling environment for the youths to be gainfully employed for economic

development. On the contrary the government doesn’t recognize the importance of

entrepreneurship to economic development and do little or nothing to improve

entrepreneurial development.

Rajesh K. Pillania, Madhurima Lall, Shikha Sahai (2010)45 Entrepreneurship

has again gained currency across the globe and female-entrepreneurship has become an

important component. India is one of the fastest emerging economies and the importance

of entrepreneurship is realised across the spectrum. This research is a preliminary

investigation in which the researchers identified 43 motives for starting business amongst

women entrepreneurs. Principal component matrix was used for factor analysis and

Varimax rotation with Kaiser normalisation was used for rotation, which yielded eight

factors. The eight factors were labelled as Independence, Flexibility, Achievement,

Money, Opportunity, Escape, Family Support and Recognition from other. The motives

were further classified into push and pull elements (Turner, 1993) on which Wilcoxon-

signed rank test was performed, the statistical test revealed that relatively pull motives

attract women entrepreneurs more than the push motives for starting business.

Murthy Psr (2010)46 an emerging economic force that policymakers cannot

afford to ignore. There are however a number of constraints to women owned businesses

that need to be addressed. In overcoming these obstacles, there are actions to be taken by

government, financial institutions and employers’ organizations by working closely with

45
Rajesh K. Pillania, Madhurima Lall, Shikha Sahai, “Motives for starting business: Indian women
entrepreneurs perspectives”, International Journal of Indian Culture and Business Management, Vol. 3,
No.1, pp. 48–67, 2010.
46
Psr, Murthy, Challenges Faced by Women Entrepreneurs in Globalized Era (July 29, 2010). Available at
SSRN: http://ssrn.com/abstract=1650583 or http://dx.doi.org/10.2139/ssrn.1650583

63
women business associations. It is important for entrepreneurs to join hands with

mainstream employers’ organizations so that these obstacles, challenges and problems

can be turned into legitimate policies. Globally, women are enhancing, directing, and

changing the face of how business is done today. Ultimately, female business owners

must be recognized for who they are, what they do, and how significantly they impact the

world’s global economy. It is estimated that presently women entrepreneurs comprise

about 10% of the total entrepreneurs in India. It is also clear that this percentage is

growing every year. If prevailing trends continue, it is not unlikely that in another five

years, women will comprise 20% of the entrepreneurial force in India. Women

Entrepreneurs may be defined as the women or a group of women who initiate, organize

and operate a business enterprise. Government of India has defined women entrepreneurs

as an enterprise owned and controlled by a women having a minimum financial interest

of 51% of the capital and giving at least 51% of employment generated in the enterprise

to women. Like a male entrepreneurs a women entrepreneur has many functions. They

should explore the prospects of starting new enterprise; undertake risks, introduction of

new innovations, coordination administration and control of business and providing

effective leadership in all aspects of business. Women in business are a recent

phenomenon in India. By and large they had confide themselves to petty business and

tiny cottage industries. Women entrepreneurs engaged in business due to push and pull

factors. Which encourage women to have an independent occupation and stands on their

on legs A sense towards independent decision-making on their life and career is the

motivational factor behind this urge. Saddled with household chores and domestic

64
responsibilities women want to get independence Under the influence of these factors the

women entrepreneurs choose a profession as a challenge and as an urge to do something

new.

Fridah Muriungi Mwobobia (2012)47 made an attempt to identify the challenges

facing small scale women entrepreneurs in Kenya and initiatives put in place to counter

the challenges. The study employed desktop research. MSEs Baseline survey, recorded

that 612,848 women in Micro and Small Enterprises (MSEs) in Kenya, accounting for

47.4 per cent of all those in MSEs. The study showed that women tended to operate

enterprises associated with traditional women’s roles, such as hairstyling. The small and

micro enterprises (SMEs) play an important role in the Kenyan Economy such as creating

jobs however they face serious challenges such as lack of finance, discrimination,

problems with the city council, multiple duties, poor access to justice, lack of education,

among others. The study established that many stakeholders from both public and private

sector are helping empower women entrepreneurs in Kenya: such as formation of women

enterprise fund, establishing of women’s university of science and technology, formal

and informal financial support, and donor initiatives among others have been put in place.

The study recommends that women in entrepreneurs need to be accepted and supported

financially, legally and more capacity building should be made available. Further

research is recommended in this area.

47
Fridah Muriungi Mwobobia, “The Challenges Facing Small-Scale Women Entrepreneurs: A Case of
Kenya”, International Journal of Business Administration, Vol 3, No 2 (2012).

65
Rangarajan R and Lakshmi R (2012)48 discussed entrepreneur is a person who accept

challenging role to meet her personal need and become economically independent. There

are economical, social, religious, cultural and other factors existing in the society which

is responsible for the emergence of the entrepreneurs. The development of women

entrepreneurship is very stumpy in India, especially in the rural and down-trodden areas

as well. Entrepreneurship amongst women has been a recent concern. Women have

become aware of their existence, their rights and their work situation. As the male

domination is higher in rural and down - trodden areas, women are being treated as

slaves. The attitude of society towards down-trodden women and the constraints in which

they have to live and work are not very conducive. With this we delve in to investigate

the challenges and problems faced by women in down-trodden areas. A sample of 110

women was taken for the study. As a result of this research, it has been found that even

though they are facing incalculable problems from many ways to do their business, they

are earning for their livelihood and leading life in a pathetic situation. It would be better

if the government and the NGO organization initiate steps to organize workshops in order

to accumulate their efficiency and give proper guidance to make their lifestyle still better.

48
Rangarajan R and Lakshmi R, “A Study On The Challenges And Problems Faced By Entrepreneurs”,
SRM Management Digest, Vol.1, No.1 (2012).
66
67
 CHAPTER-III

AN OVERVIEW OF ENTREPRENEURS AND

ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

3.1. INTRODUCTION

Entrepreneurship is a tool of economic development. Entrepreneurs are playing a

vital part in the development process. At the present era small scale industries assume a

critical part in industrialization for developing country. In Indian economy the small-

scale industry sector contributes a major part more than five decades. Small entrepreneur

is one of the most important contributions to the economic development of a country.

Khadi & village industries like SSI possess on essential place in the Indian economy in

generating income and employment to rural labour force especially to those living below

the poverty line. Small scale industries utilize local raw material and manpower and

develop local initiatives and coordinate the development of promotion and small scale

industries need low capital investment for the era of income and employment.

“Entrepreneur is one of the most inputs in the economic development of a country.

In India both Government and private sector work cooperate for entrepreneurial

development, the small scale industrial sector is completely left for private entrepreneurs.

Nobody can deny this reality that the improvement of small scale sector is mainly due to

entrepreneurship. “Age of mammoth associations are gone and the future lay with small

and dynamic, effective productions groups that could respond rapidly to customers’

needs. Small scale industry assumes an important role in a country’s economy. These

68
effects provide the base industrial development and economic growth in the country.

These industries, more important for entrepreneurs of small means whose access to

industrial credit is limited, require lesser skill and smaller capital but provide more

employment opportunities. Although most such units were in government control, they

stayed denied of the industrial credit which were likewise in government control at that

time economist are of the view that one of the reasons of increase in the poverty level in

the country is the stagnation in small industry due to the lack of institutional credit and

other essential infrastructure”.

Entrepreneur is a person who is having the capacity to bear risks. He is forecasting

prospects of an enterprise and also organizing various factors of production. He is

expected to manage various affairs of the business and to innovate or imitate new things.

With confidence and competence he should meet unforeseen and adverse situation.

Entrepreneurship refers to refers to a process of actions an entrepreneur (person)

undertakes to establish his/her enterprise. It is an original and innovative response to the

surroundings.

Entrepreneurship is so a cycle of actions to any the interests of the enterpriser. One

of the qualities of entrepreneurship is that the ability to find an investment chance and to

prepare an enterprise, thereby contributing to real economic growth. It involves taking of

risks and making the necessary investment under conditions of uncertainty and

innovating, planning and taking decisions so as to increase production in agriculture,

business, industry, etc.

69
3.2. SOME DEFINITIONS OF AN ENTREPRENEUR ARE LISTED BELOW:

Stems: from the French word ‘entrependre’ which means one WHO undertakes or

one WHO is a‘go-between’

Richard Cantillon: An enterprise may be a one that pays an exact worth for a

product to sell it at AN unsure worth, thereby making decisions about obtaining and

using the resources while consequently admitting the risk of enterprise.

J.B. Say: An entrepreneur is an economic agent who unites all means of

production- land of one, the labour of another and the capital of yet another and thus

produces a product. By commerce the merchandise within the market he pays rent of

land, wages to labour, interest on capital and what remains is his profit. He shifts

economic resources out of a district of lower and into a district of upper productivity and

bigger yield.

Schumpeter: in keeping with him entrepreneurs area unit innovators WHO use a

method of shattering the established order of the prevailing merchandise and services, to

set up new products, new services.

Peter Drucker: An enterprise searches for amendment, responds to it and exploits

opportunities. Innovation may be a specific tool of AN enterpriser thus a good enterpriser

converts a supply into a resource.

Kilby: Emphasizes the role of AN imitator enterpriser WHO doesn't initiate

however imitates technologies innovated by others.

Are very important in developing economies. Albert Shaper: Entrepreneurs take

initiative, accept risk of failure and have an internal locus of control

70
3.3. CONCEPT OF ENTREPRENEURSHIP

Entrepreneurship is a composite skill, the resultant of mix of many qualities and traits.

These include imagination, readiness to take risks, ability to bring together ant put to use other

factors of productions, capital, labour, land, as also intangible factors such as the ability to

mobilize scientific and technological advances.

Enterprise

Entrepreneur Entrepreneurship

Person Object
Process of
Action
Chart: 3.3.1.Concept of Entrepreneurship

From the classical economic to the post-Keynesian analysts, the topic of the

entrepreneur has been surveyed, and observations, theories and pronouncements

advances. Not only were pure economists such as Marx, Weber, Sombard and Veblen.

In general, contemporary economists agree that the entrepreneur is a business

leader and that his role in fostering economic growth and development is pivotal one. At

present, however, there's no agreement at to what constitutes the essential activity that

makes the enterpriser a vital figure. While some economists have identified the

coordination of production resources, the provision of capital or the introductions of

innovations, Professor James R. Ompus of the International Institute of Entreprenology,

the Critical Factor in National Development has this to say:

71
In all crisis situations, there is one critical factor. There is one consider every scenario

which will be cited as being the straw that skint the camel’s back! In listing some of

today’s possible critical factor, such familiar words and phrases as: limited natural

resources… food... energy all would emerge.

Basically An enterprise may be a writer for fixing a business or AN enterprise. He

has the initiative, skill for innovation and who looks for high achievements. He is a

amendment chemical action} agent of change and works for the great of individuals. He

puts up new inexperienced field comes that make wealth, open up many employment

opportunities and leads to growth of other sectors

The word "entrepreneur" is derived from a French root ‘entreprendre’, meaning,

"to undertake". The term "entrepreneur" seems to have been introduced into economic

theory by Cantillon (1755) but Say (1803) first accorded the entrepreneur prominence. It

was Schumpeter however, who really launched the field of entrepreneurship by

associating it clearly with innovation. Drucker’s definition of entrepreneurship, namely a

systematic, professional discipline, brought a new level of understanding to the domain

(Maurer,Shulman, Ruwe & Becherer 1995:526). Sharma and Chrisman (1999:12)

identified two clusters of thought on the meaning of entrepreneurship. One group focused

on the characteristics of entrepreneurship (e.g. innovation, growth, uniqueness) while a

second group focused on the outcomes of entrepreneurship (e.g. the creation of value).

The word "entrepreneur" comes from a French root ‘entreprendre’, meaning, "to

undertake". The term "entrepreneur" looks to possess been introduced into theory by

Cantillon (1755) however Say (1803) 1st accorded the enterpriser prominence. It was

72
Joseph Schumpeter but, WHO very launched the sector of entrepreneurship by

associating it clearly with innovation. Drucker’s definition of entrepreneurship, namely a

systematic, professional discipline, brought a new level of understanding to the domain

(Maurer,Shulman, Ruwe & Becherer 1995:526). Sharma and Chrisman (1999:12) known

2 clusters of thought on the which means of entrepreneurship. One cluster targeted on the

characteristics of entrepreneurship (e.g. innovation, growth, uniqueness) whereas a

second cluster targeted on the outcomes of entrepreneurship (e.g. the creation of value).

 He may be a one that develops and owns his own enterprise

 He may be a moderate adventurer and works beneath uncertainty for

achieving the goal.

 He is innovative

 He peruses the deviant pursuits

 Reflects strong urge to be independent.

 Persistently tries to do something better.

 Dissatisfied with routine activities.

 Prepared to withstand the hard life.

 Determined but patient

 Exhibits sense of leadership

 Also exhibits sense of competitiveness

 Takes personals responsibility

 Oriented towards the future.

73
  Tends to persist in the face to adversity

A number of definitions are given of an entrepreneur-The economists read him as

a fourth issue of production together with land labour and capital. The sociologists feel

that sure communities and cultures promote entrepreneurship like as an example in

Republic of India ar saying} that Gujaratis and Sindhis are terribly enterprising. Still

others feel that entrepreneurs area unit innovators whoreturn up with new ideas for

merchandise, markets or techniques. To put it terribly merely an enterpriser is somebody

WHO perceives chance, organizes resources needed for exploiting that opportunity and

exploits it. Computers, mobile phones ,washing machines, ATMs, Credit Cards, Courier

Service, and Ready to eat Foods are all examples of entrepreneurial ideas that got

converted into products or services

3.4. TYPES OF ENTREPRENEURS:

Entrepreneurs can be classified into four groups depending upon the driving

motivational factors to venture into business.

a. Natural Entrepreneurs

Those who take business as profession on their own either by self planning or motivated

through money factor and also for keeping themselves busy are natural entrepreneurs.

b. Generated entrepreneurs:

Those who have been encouraged and trained through specialized training programmes

such as the Entrepreneurship Development Training Programme to set up independent

business are termed as generated entrepreneurs.

74
c. Forced entrepreneurs

Those who are compelled by circumstances such as the death of father or husband

with responsibilities falling on them to take over the existing business and.

3.5. FACTORS INDUCING THE ENTREPRENEURS:

The Commercialization and modernization of the economy gradually eliminated

many of the avenues of employment to women in agriculture and industries and thus

enabled them to find ways of supplementing their family income. As a result of this, a

section of urban women has emerged as potential entrepreneurs.

Entrepreneurs are not only a product of their ambitions, but also of the aspirations

of their family members, friends and relatives. Sometimes certain compulsions also lead

them to the entrepreneurial positions. It is inferred that the low income group has given

equal importance to both earn money thereby supplementing in husband’s income and fill

in leisure time.

Scarcity of suitable employment opportunities, non - flexibility of working hours,

limitations on mobility and a desire for economic and social independence forced more

and more women, especially over the last decade, to look for newer avenues of income

generation and self expression through careers in business and industry.

3.6. PULL AND PUSH FACTORS

Some recent researchers indicate that several peoples are becoming entrepreneurs

especially the middle class peoples due to the pull and push of traditional and changing

values under the pull factor entrepreneurs choose a profession as a challenge, as

adventure with an urge to do something new and to have independent occupation. Under

75
the push factors, women take up business enterprises to get over financial difficulties

when responsibility is thrust on them due to family circumstances. Entrepreneurs

ventured into their business because of some compulsions. The compulsions cited were:

death of husband who was on business, unemployment, to supplement meager income at

home, to adopt better lifestyle and to settle children. This group distinctively falls under

‘push’ category of entrepreneurs who resorted to entrepreneurial profession because of

some compulsions.

Pull factors refer to situations or opportunities being too attractive to be ignored by

the perceiver, while the push factors denote a response born out of extraneous

compulsions. While neat, unalloyed cases of pull or push factors are hard to come by in

real life situations- there is almost always a mixture of the two-the distinction may,

nevertheless, be useful as a frame of reference, For they connote, in essence, positive and

negative responses to specific situations

As such, both in the rural and urban sectors women especially belonging to the

middle class are trained towards entrepreneurship to fulfill their aspirations both

economically and socially.

In India, entrepreneurship can be considered as “necessity entrepreneurship “rather

than “opportunity entrepreneurship”. Usually have smaller networks and less

geographical mobility than entrepreneurs, more so in the case of young, married women

who need to take care of their families. These women can use their skills and available

local resources to start their own enterprises. However, the location of the enterprise and

76
the strength of relationship with contacts are very important as it determines the

entrepreneur’s ability to acquire and employ the resources available in her community.

3.7. CORRELATION OF ENTREPRENEUR AND ENTREPRENEURSHIP

The entrepreneur is the person who bears risks, unites various factors of

production & carries out creative innovations. On the contrary entrepreneurship is the set

of activities performed by an entrepreneur. It is about understanding that an organization

will function effectively when it has the right mix of people, backgrounds and

experiences. In way an entrepreneur precedes entrepreneurship. Again then who is an

entrepreneur? The following table helps us to study the relationship of entrepreneur and

entrepreneurship.

3.8. THE RELATIONSHIP BETWEEN ENTREPRENEUR AND

ENTREPRENEURSHIP

TABLE 3.8.1

RELATIONSHIP BETWEEN ENTREPRENEUR AND ENTREPRENEURSHIP

Entrepreneur Entrepreneurship

Administrator Administration

Aimer Aim

Delegator Delegate

Inspirer Inspiring

Educator Education

Leader Leadership

77
 Nurturer Nurturing

Risk taker Risk –taking

Creator Creation

Programmer Action

The term businessperson is usually used interchangeably with entrepreneurship.

But conceptually, they are different yet they are just like the 2 sides of a coin. Experience

shows that entrepreneurship as an economic function is not a single point but rather a

range of behaviour. There are six critical dimensions that distinguish entrepreneurial

behaviour from more administratively - oriented behaviour.

 Strategic orientation

 Commitment to opportunity

 The resource commitment process

 The concept of control over resources

 The concept of management

 Compensation policy

3.9. OPPORTUNITY MATRIX

78
 Desired future state involves growth or change

Yes No

Entrepreneur Satisfied manager Ye

Frustrated potential Bureaucratic

No
entrepreneur functionary

Self-Perceived power to achieve goal

Figure 3.9.1. Opportunity Matrix

In Matrix defining entrepreneurship one can see how the present position

influences whether one is entrepreneurial or not. It stands clear that particular skills,

talents and attitudes towards risk influence the perception as to whether an outcome is

feasible. Training, knowledge, and self – confidence contribute to such perceptions.

The importance of this figure cannot be overemphasized since individuals

place themselves in their particular box for rational reasons relating to their own lives;

however for the firms desiring to build entrepreneurial spirit, action is required.

Creating a dream intention gives entrepreneurs energy and desire to become

involved in its implementation and to be willing to change. During the formulation of the

dream, everyone participates (including the leaders), & this allows people to start seeing

each other in a different light.

79
3.10. Link between Entrepreneur and Intrapreneur

Intrapreneur is the key person in the organization who strives to make the

organization excel in all fields.

TABLE 3.10.1

LINK BETWEEN ENTREPRENEUR & INTRAPRENEUR

Entrepreneur Intrapreneur

1. An Entrepreneur is the 1. An Intrapreneur is not the

owner of his Enterprise owner, but a key person.

2. He is Independent 2. He is partially independent

3. He raises finance from 3. He does not own responsibility

various sources to raise capital

4. He is the chief of the 4. He is a key player of the

organization organization

5. He may not be educated & 5. He is educated & skilled

skilled person

6. He is the organizer 6. He is the strategist

7. He strives to earn max 7. He strives to make the

profit organization excel in all fields

8. He is the visualiser 8. He is the pragmatic visionary,

80
 Entrepreneur Intrapreneur

innovator & creative one in the

organization

9. He bears full risks of his

9. He does not bear full risks
business

10. He operates & develops the

10. He is the promoter
business

11. He operates with in builds the

11. He operates from outside
work culture

According to Peter Drucker “Entrepreneurship is neither a science nor an art. It

is a practice. It has a knowledge base. Entrepreneur is considerably less risky, if the

entrepreneur is methodical & does not violate elementary and well- know miles”.

However the researcher in addition to what Peter Drucker stated feels that there are

some common aspects which will never perish & they are risk taking, creativity,

independence rewards. These commodities will continue to be the driving force behind

the notion of entrepreneurship.

Many definitions of entrepreneurship can be found in the literature describing

business process and can be viewed from different conceptual perspectives. The earliest

definition, dating from the 18th century, used it as economic term describing the process

81
of bearing risk of buying at certain prices and selling at uncertain prices. Later the

definition was broadened to the concept of bringing together the factors of production.

Early this century, the concept of innovation was added to the definition of

entrepreneurship.

3.11. Schumpeter’s statement of precise meaning:

The entrepreneur in an advanced economy is an individual who introduce

something new in the economy – a method of production not yet tested by experience

in the branch of manufacturing, a product with which consumers are not yet familiar, a

new source of raw material or of new markets. According to him entrepreneur is an

innovator.

Hoselitz opinion: Whereas according to Hoselitz there is a category called

Imitator entrepreneurs which plays a major role in the developing or underdeveloped

countries. In these countries the financial, technological, economical, social resources are

not abundant and they are limited but the demand is plenty. As a result there is a huge

scope for imitated products. Hence Hoselitz feels that Imitator entrepreneurs have a

rich scope in creating opportunities in these countries.

Definition: -

“Industrial units with a capital investment of not more than Rs.1 crore are treated as small

scale industries”. Small scale industries can be defined on the basis of

(I). Size of employment

82
(ii). Investment level

(iii). National income

As per above basis definition of small scale industry:-

 Small Scale Industry (SSI): - Include every one of those endeavours having an

investment in fixed assets in plant and machinery whether hung on proprietorship

terms or by lease or by hire purchase, not exceeding Rs.60 lacks. Following the Abid

Hussian Committee (1997) Recommendation, the Government of India raised the

(ceiling on investment in plant and machinery for SSI and auxiliary undertaking to

Rs. 3 crore. This definition of SSI and ancillary undertaking has since been

reconsidered according to the government order dated 24December 1999. According

to the order the industrial undertaking in which the investment in plant and

machinery, regardless of whether held on ownership terms or on lease/hire purchase

premise does not exceed Rs. 1 crore is regarded as small-scale industrial

undertakings.

 Ancillary Units: fixed investment of ancillary units are not exceeding Rs.75 lacks

occupied in: The manufacture of parts, sub-assembles, components, intermediaries or

trolling, Rendering of services supplying 30% of their production or services as the

case might be to various units for production of different articles. Given that the unit

implied in (a) & (b) might not be subsidiary of or owed or controlled by some other

industrial undertakings. AnIndustrial undertaking which is involved with or is

proposed to be occupied with the manufacture or production of parts, components,

83
 subassemblies, tooling or intermediates or the rendering of services is defined as

ancillary undertaking. The ancillary undertaking is required to supply not less than

50percent of its production or services, as the case might be to one or more other

industrial undertakings. The investment in plant and machinery, whether held on an

ownership premise or on lease or on hire purchase.49

 Tiny Units: - allude to endeavors having fixed investments in plant and machinery

not exceeding Rs.5 lacks.

 Small scale service establishment: - means enterprise engaged in personal or

household services in rural areas and towns with the population not exceeding Rs.5

lacks and having fixed investment in plant and machinery not exceeding Rs.2 lacks.

 Household Industries: - cover artisans, skilled craftsman and technicians who can

work in their own houses if their work requires less than 300 sq. feet space, less than

5 workers and no pollution is caused.

SSI in India was first evolved in 1950 and officially defined based on the size of

gross investment in fixed assets (plant and machinery, land, building etc.) and in addition

as far as the quality of the workforce in the unit concerned. This paradigm experienced a

few changes over a period of time. In the late fifties, a shift from a workforce-based

definition to an investment-based definition was effected. In 1966, the original amount

invested in plant and machinery was embraced as the sole standard for characterizing a

unit small-scale or otherwise. Different ideas, namely ancillary and tiny were presented in

1960 and 1977 individually. Small-scale Service Establishments (SSSEs) started in 1985
49
https://www.indiafilings.com/learn/what-is-an-industrial-undertaking/accessed on 27/3/2017 at 8.00 pm

84
and later it modified as Small-scale Service and Business (industry related) Enterprises

(SSSBES) in 1991. In 1988 the government of India included the term Women

Entrepreneur's Enterprise it shows the 51 percent equity held by women and later in 1991

it was reformed.

3.11. Classifications of SSI

This sector covers a wide range with two plainly identifiable segments, is.,

present day small-scale industries, including tiny units and power looms and conventional

Small Industry industries like Khadi and Village Industries, Handlooms, Handicrafts

Sericulture and Coir industry. Both the segments have their own exceptional attributes as

far as capital/labour intensity, locational, orientation, manufacturing process and skill

requirement

85
3.11.1 Traditional Industries

Traditional Industries include:

1) Khadi and Village Industries

2) Handlooms

3) Handicrafts

4) Coir

5) Sericulture

3.11.2 Modern Units

1) Small-scale industrial undertakings

86
2) Export oriented SSI units

3) Ancillary industrial undertakings

4) Small-scale service and business enterprises

5) Power looms.

3.12. IMPORTANCE AND ROLE OF SMALL SCALE INDUSTRIES

The Small Scale Industrial (SSI) sector assumes a key role in the Indian economy

regarding its contribution to the country’s industrial production exports, employment and

the creation of an entrepreneurial base. This part has seen a high development rate since

1947 regardless of heavy competition from the large-scale sector. The quick growth of

the small-scale industries has an incredible influence in our national economic policies.

The development of the small sector has additionally upgraded the production of non-

durable consumer goods of mass utilization. The yielding time frame or the development

period is quicker in the small-scale industrial units scattered around the country and are

generally set up to fulfil the local demand for goods, which may later take into the overall

economic and worldwide prerequisites. In Indian economy Small-scale industries

contribution is huge and additionally establishment of small units required less capital

and it also provide a numerous employment opportunities to skilled, semi-skilled and

unskilled labours.

With the turn of the country, there has been lot of change in economic front all

around the world and specifically in India. As everyone was driving towards world

87
economy the government’s liberalization and economic reforms program aims at rapid

and substantial economic growth and integration with the global economy in a

harmonized manner. Following are the reasons for the growing importance of small scale

industries.

 Have reduced the industrial licensing requirements.

 Removed restrictions on investment and expansion.

 Facilitated easy access to foreign technology and foreign direct investment.

 Relaxation in the aforesaid location restriction.

 Reduced transactions rates in banks.

 Larger organizations are stressing on out sourcing.

 Credit capital available from banks at lower interest rate.

 Industrial reforms.

 Prevailing scarcity for the promotion of large scale industries.

These encouraging governmental policies and economic scenario have greatly

influenced the emergence of small scale sector today. Here by the role of small scale

industries has widened in following.

 Foreign exchange earner: SSI helps in reducing pressure on balance of payments.

These industries have a substantial share in the export of textile, garments, carpets,

surgical instruments, leather, sports and engineering goods. These also save foreign

exchange, producing goods from local resources.

88
 Employment: Countries like India have abundant manpower, so labour intensive

techniques of production are more suitable. These provide immediate large scale

employment and have a comparatively higher labour capital ratio. These industries

do not require high level of technology so even unskilled and semi-skilled workers

are used for productive purpose.

 Resource efficiency: SSI process locally produces raw materials, so beneficial for

countries like ours which are rich in agricultural, forest and mineral resources. SSI

uses indigenous machinery and raw material which in turn, helps in the growth of

engineering and other sectors.

 Entrepreneurial development: These units implant entrepreneurial talents in

initiators. Small scale units act as training ground for entrepreneurs. The skills and

knowledge gained by the enterprise in small enterprise can be used to transform it

into big one. This stimulates growth of industrial entrepreneur.

 Low capital: Less investment is required as it has shorter gestation period. So project

becomes viable early.

 Social benefits: Small scale industries bring about equitable distribution of national

income. The national growth and equity objectives are fulfilled. Development of

these enterprises strengthens extended family social system instead of dispersing

them.

 Mobilization of national resources: Diversification of industrial structure which often

leads to increased utilization of national resources. It is also expected to bring about

89
 the dispersal of industries in rural and semi-urban areas with the advantage of

equitable distribution of national income.

 Economic Development: SSI checks the expansion of monopolies. They meet

demand of mass consumption goods. They bring about integration of rural economy.

They even help in attainment of self-reliance.

Although this era of globalization and liberalization, small scale industries are

fearful of the multinational and foreign firms which are providing variety of products

with international brand names and technical superiority. These small scale enterprises

will even find it hard to counter the intensive marketing effort of these weal’s-their firms.

3.13. Contribution of Small Scale Industries in India

Small Scale Industries in India appreciate an alternate position in perspective of

their contribution to the socio-economic development of the country. The accompanying

point underlines their contribution:

 Small industries in India account for 95 per cent of the industrial units in the country.

They contribute almost 40 per cent of the gross industrial value added and 45 per cent

of the total exports for the country.

 Small industries are the second largest employers of human resources, next to

agriculture. They produce more number of employment opportunities against per unit

of capital invested contrasted to large industries. So they are thought to be more labour

escalated and less capital concentrated. This is leverage for a labour surplus country

like India.
90
 Small industries in the country supply a vast variety of products which include mass

consumption goods, readymade garments, hosiery goods, stationery items, soaps and

detergents, utensils, leather, plastic and rubber goods, processed food and vegetables,

wood and steel furniture’s, paints, varnishes, safety matches and so on. Among the

complex items manufactured are electric and electronic goods like televisions, electro-

medical equipment’s, calculators, electronic teaching aids like overhead projectors,

drugs air conditioning and pharmaceuticals, agricultural tools and equipment’s and few

other engineering goods. A remarkable mention ought to be made on handlooms,

handicrafts and other products from traditional village industries in perspective of their

export value.

 The contribution of small industries to the balanced regional growth of our country is

significant. Small industries which produce simple goods utilizing simple technologies

and rely on local resources both raw material and labour can be set up anywhere in

India. Since they can be broadly spread with no area limitations, the advantages of

industrialization can be procured by every region. They, thus, contribute significantly

to the balanced development of the country.

 Small industries provide plenty of opportunity for entrepreneurship. The hidden skills

and talents of people can be channelled into business ideas which can be transformed

into reality with little capital investment and almost no formalities to start a small scale

industry.

 Small industries also enjoy the advantage of low cost of production. Locally available

resources are less expensive. Establishment and running expenses of small industries
91
 are on the lower side because of low overhead costs. Truth be told, the minimal effort

of production which small industries offer is their focused power.

 Because of the small size of the organizations, expedient decisions can be taken

without consulting many individuals like it occurs in large organizations. New

business opportunities can be captured at the right movement.

 Small industries are best suited for customized production. i.e., designing the product

as per the taste of the customers. The latest trend in the market is to go in for

customized production of even non-traditional products such as computers and other

such products. They can manufacture according to the needs of the customers as they

use simple and flexible production methods.

 Small industries have in-built strength of flexibility and a personal touch and therefore

maintain good personal relations with both customers and employees. The

Government does not have to involve in the functioning of a small scale unit. New

business openings can be captured at the right time, thus providing healthy competition

to big business which is good for the economy.

3.14. THE GOVERNMENT PROMOTIONAL FRAMEWORK AND

ASSISTANCE TO SMALL SCALE INDUSTRIES

Small scale industrial sector promoted by State and Central Governments in

India. International Perspective Planning team (1953-54) recommend to set up a various

institutions at national level to empower small scale industry. There is SIDO (Small

Industries Development Organization) which has been previously named as CSIO

92
(Central Small Industries Organization). Amid the most recent four decades, this

institution has developed as the core promotional agency at the national level with a

professional staff of more than 13,000 in the year 1993. It consists of 28 SISIs (Small

Industries Service Institutes), 30 branch SISIs, 37 extension centers in specific products

and 74 workshops as on1993. However, over the years, some of these have been wound

up because of their financial problems in continuing the business. These institutions

provide technical and management consultancy services, arrange training programmes,

conduct techno-economic study, prepare project profiles as demanded and help to prepare

specific project reports and organize related training programmes. In addition, there are

two PDTC (Prototype Development and Training Centers) to develop new technologies

and upgrade the existing technology. There are many other technical institutions that are

working with SIDO, which are more specialized in the fields of tool designing,

Electronics and Measuring instruments, Prototype development and Hand tools, etc.,

Four CTRs (Central Tool Rooms) in Bangalore, Calcutta, Delhi and Ludhiana, have been

set up under bilateral assistance programs. In backward areas rural industries and village

and cottage industries majorly focused by government of India and policies framed to

encourage the small scale industrial sector. Small scale enterprise lead to create an

employment opportunities and promote the export activities and empower the balanced

regional development of the nation, Governments both at the central and state level have

been actively participating in promoting SSIs by offering support in different forms as

listed below:

93
  Institutional support in respect of credit facilities

 Provision of training facilities

 Supply of machinery on hire purchase

 Provision of developed sites for construction of sheds

 Assistance for domestic and export marketing

 Special incentives for setting up of enterprises in backward areas

 Technical and financial assistance for technological up-gradation

All these are mainly concerned with the promotion of small scale industries.

Some of the institutions, support measures and programmes meant for the development

of small scale industries and to offer the above mentioned supports are listed below:

 The Rural Small Business Development Centre (RSBDC),

 National Bank for Agriculture and Rural Development (NABARD),

 National Small Industries Corporation (NSIC),

 Small Industries Development Bank of India (SIDBI),

 National Commission for Enterprises in the Unorganized Sector (NCEUS),

 Women Entrepreneurship Development (RWED),

 World Association for Small and Medium Enterprises (WASME),

 District Industries Centers (DICs),

 Integrated Rural Development Programme (IRDP),

 World Association for Small and Medium Enterprises (WASME)

94
 Prime Minister Rojgar Yojana (PMRY),

 Scheme of Fund for Regeneration of Traditional Industries(SFURTI),

 Schemes to provide skills - Training of Rural Youth for Self Employment

(TRYSEM),

 Schemes to strengthen the gender - Development of Women and Children in Rural

Areas (DWCRA)

Industrial Agency Administrative Department / Ministry

These are the Ministries and Departments in the country to empower/support

SSIs: Ministry of Industry-Small Scale Industries, Small Industries Development

Organization, Department of Small Scale, Agro and Rural Industries, and Ministry of

Textiles.

National Small Industries Corporation (NSIC) is an imperative establishment set

up in 1955. Fundamentally it encourages supply of imported machinery on simple

finance terms, gives marketing assistance, operates PDTC (Prototype Development and

Training Centres) in particular fields like injection moulding industries, leather

manufacturing equipment’s, machine tools, etc., NIESBUD (National Institute of

Entrepreneurship and Business Development) has been set up to train and promote

personnel, industrial managers and entrepreneurs. Other national level institutions that are

supporting the small scale sector are NRDC (National Research Development

Corporation), NPC (National Productivity Council), BIS (Bureau of Indian Standards),

95
CDC (Consultancy Development Centre) and ETDC (Electronics Test and Design

Centre).

The central financial institutions have additionally set up the EDII

(Entrepreneurship Development Institute of India) at the national level to empower

entrepreneurship. All the previously mentioned establishments are to a great extent

implied for the modern small scale industry. Ministry of industry form a separate

commission for empowering Khadi and village industries, Moreover, for the handlooms,

handicrafts, sericulture, and other non-modern small units, there are separate divisions to

energize them. At the state level, the Governments have set up institutions as follows:

SIDCs (Small Industry Development Corporations) to extend framework in the form of

industrial plots and industrial sheds, SFCs (State Financial Corporations) to support long

term credit needs, and State Exports Promotion Corporations to provide marketing

assistance for exports from the small scale sector. TCOs (Technical Consultancy

Organizations) that give technical, financial and marketing support to the sector. CEDs

(Centre for Entrepreneurship Development) and IEDs (Institute of Entrepreneurship

Development) have been set up to promote entrepreneurship through training. At District

level, in 1978, the Central Government propelled a programme for establishing District

Industries Centres to provide under a one roof clearance, a wide range of support

services, licences, and certificates required by the SSI promoters. There are more than

400 centres, covering many districts.

The Non-government Promotional Structure

96
 There are three national associations representing entire industries in the country.

These associations are FICCI (Federation of Indian Chambers of Commerce and

Industries), CII (Confederation of Indian Industries) and ASSOCHAM (Association of

Chambers of Commerce and Industries). These affiliations represent fundamentally the

interests of large scale industries. In spite of the fact that these affiliations have

participation of the small sector as well and represent most part the policy related

interests of small scale industrial sector. The exclusively small industry related

associations are enhanced geographically and sector wise, these should have been

connected with FASSI (Federation of All India Small Scale Industries), FOSMI

(Federation of Small and Medium Industries) and furthermore ICSI (Indian Council of

Small Industries). However these institutions are weak in character because of their

working for cross purposes and lack of vibrant perspective for small scale sector

expansion. They have almost no linkages with the small industry in general and their

local associations in specific. Another institution that is concerned with the small and

medium enterprises is WASME (World Assembly of Small and Medium Enterprises).

There are only a few of the local associations that are involved in providing specific

individual level services to the small industries.

3.16. Development of Small Scale Industries during Five Year Plan Periods

It has been demonstrated that the SSIs have received a step motherly treatment at

the hands of the British rulers and have been made to disintegrate. But the national

movement, ever since its commencement, has made every effort to protect and organize

97
them. Small scale industry plays an important role for socio economic development of a

nation, so the Government of India frame a policy to evolved a programme for the

development of these industries as an integral part, development of other sectors of the

economy.

This approach was first laid down in the Industrial Policy Resolution (IPR) of

1948 and was later adopted as the basis for policy in the First Five Year Plan. The same

was reiterated and further elaborated in the IPR of 1956.

Development of Small Scale Industries during Pre-Plan Era

In the first phase of development of SSIs, the accent was laid on providing

favourable climate conducive to the setting up of new units as well as the modernization

and nationalization of existing small-scale units. Manufacturing units in this sector have

been protected from competition from the better organized large-scale units by providing

subsidies and preferential excise duties as well as by imposing restriction on the

production pattern in large scale units.

During the pre-plan era Industrial Policy Resolution 1948 and the Ford

Foundation Team recommendations towards SSIs are the major events. First five year

plan framed by the basis of Industrial Policy Resolution (IPR) 1948. Industrial Policy

Resolution recommended Production Programme to ensure both Small Scale Industries

and Large Scale Industries (LSI) make their contributions to the cumulative requirement

of the nation. Four regional institutions at Gauhati, Faridabad, Poona and Madura setting

98
up by the recommendation of Ford Foundation International Planning Team to develop

the Small Scale Industries.

First Five Year Plan (1951-1956)

The First Five Year Plan had two-fold objectives. Primarily, it aimed at

correcting the disequilibrium in the economy caused by the war and the partition of the

nation and next it planned to start at the same time a procedure of all-round balanced

development which would ensure raising the national income and enduring improvement

in lifestyle requirement over the period.

Second Five Year Plan (1956-1961)

The foremost aim of the Second Five Year Plan was to enhance the national

income by around 25 per cent over the plan period and generate the employment

opportunities for around 10 to 12 million people. In the reasoning and the definition of

the Second Five Year Plan additionally the village and small industries assumed an

overwhelming part. Industrial Policy Resolution (1956) based on the recommendations of

the Karve Committee expressed that lack of technical and financial assistance and

appropriate working accommodation were among the genuine impairments of small

producers.

The State has been taking after a strategy of supporting SSIs by confining the

volume of production in the large-scale sector by differential taxation. The point of the

state policy will be to guarantee that the decentralized sector obtains adequate vitality to

99
be self-supporting and its development is incorporated with that of large-scale industry.

An exertion has been made with the establishment of industrial estates to support these

deficiencies.

The progress amid the first and second plans of village and small industries were

explored in the middle of the second plan by a number of working groups. During the

First Five Year Plan, agriculture got all the significance and during the Second Five Year

Plan large-scale industries got the prominence. The thinking of the policy makers at that

time was to consider SSIs as a supporter to LSIs. SSIs were to assume the strong part by

giving the prerequisites of the employees of the large-scale sector i.e., to state SSIs role

was restricted just to the production of consumer goods.

Third Five Year Plan (1961-1966)

During this period credit facilities which were an essential requirement of all

village and small industries had to be organized on a larger scale. A substantial provision

had been made for loans under State Aid to Industries Act to meet the need for long and

medium term capital as well as working capital.

Impressive development was also made in giving credit facilities to Small

Industries from institutional agencies. In compatibility of the proposals of the Rural

Industries Planning Committee which was constituted in April 1962, rural industries

projects were taken up in selected rural areas.

100
Table 3.1 Actual Expenditure in Third Five Year Plan (1961-1966)

S.No Sector Planned Actual Percentage of Actual

Expenditure Expenditure Expenditure to

In crores `In crores planned Expenditure

`In crores

1 Agriculture 1068 1089 1.96

2 Industries 1520 1726 13.55

3 Village and Small 254 240 (-) 9.09

Industries

4 Total 7500 8577 14.36

Source: Commerce Annual Number on Industries, 1968, pp.306.

It is clear from the above table that the real consumption crossed the planned

expenditure in both agriculture and industrial sectors, yet on the account of Small Scale

Industries sector, actual expenditure is not as much as the planned expenditure.

Fourth Five Year Plan Period (1969-1974)

The goals and approach in the fourth five year plan were drafted by keeping in

view the extensive range of industries that are secured by Village and Small Industries.

This segment had been intended to accomplish the targets of widening employment

101
opportunities, and mobilizing the resources of capital, skill especially in the countryside,

and providing more equitable distribution of national income.

The number of units (SSIs) registered on voluntary basis with the Industries

Directorates of the States and Union Territories became increased from nearly 2 lakhs in

1969 to about 3.18 lakhs in 1972 and the total employment in these units was estimated

to be at 41.4 lakh persons. Moreover list of 77 items was added to those restrained for

incompatible development of the small-scale sector bringing the total to 124. Also there

was a generous increment in the stream of institutional credit for these industries. The

Credit Guarantee Scheme directed by the Reserve Bank of India was additionally

amplified and liberalized. An aggregate of 183 credit institutions including all the major

commercial and cooperative banks and the SFCs have joined the scheme.

Fifth Five Year Plan (1974-1979)

The fifth five year plan emphasized that small industries had a critical part to

play in the elimination of poverty, removal of disparities in income, wealth and regional

imbalances. The sector had distinct potential for giving progressively extensive

employment opportunities with moderately smaller capital investment. Amid the Fifth

Five Year Plan, the accentuation was on the development of SSI and their part as

ancillaries to large undertakings. The joined development programmes of the Centre,

States and Union Territories were relied upon to create additional jobs for 15-16 lakh

persons. The progress made during this plan period was not urging because of different

variables but rather essentially because of inflation and political disturbances. But that as

102
it may the progress made in the field of providing infrastructural facilities to SSI sector

was satisfactory.

The fifth five year plan could not proceed with its full term because of the

progressions that occurred at the Union Government in January 1977. The plan was

rejected by the Janata Government in 1977 and in its place the Rolling Plan was

introduced.

Another important development during this period had been the introduction of

District Industries Centres (DICs). It was an umbrella for the growth of SSIs. The District

Industries Centre programme was propelled in first May 1978 by the Government of

India as a point of convergence for promotion of small, cottage and village industries to

give all services and support to the decentralized sector under a solitary roof at pre-

investment, investment and lost-investment stages.

All the help required for developing existing enterprises or assisting the new ones

under one roof at the district level itself were provided so that the deferrals and troubles

confronted by the industrialists and entrepreneurs were illuminated locally. Under this

plan of DIC, the entrepreneurs were to get all unique help from one agency. During 1981-

82 380 districts covered by DIC scheme out of the more than 420 districts in the country.

Sixth Five Year Plan (1980-1985)

Promotion of SSIs continued to be an important element in the development

strategy because of its favourable capital output ratio and the high employment intensity.

103
The credit guarantee scheme for SSIs is offered by RBI. For priority sector or target

lending through the commercial banks was raised from 33 per cent to 40 per cent.

Be that as it may, some of the long-term goals set for the Small Scale Industries

sector are still to be accomplished. The growth and development of this segment had

been obliged by several components like lack of technological advancement, accessibility

of raw materials, lack of marketing channels, availability of credit facility and in adequate

managerial skills, etc.

Seventh Five Year Plan (1985-1990)

The SSI sector had played a vital role in the development of the economy and

still there was scope for increase in production and productivity by this sector. To

facilitate modernization and achieve rapid growth in this sector, the upper limit on the

investment on plant and machinery had been raised with respect to small scale units from

20 lakhs to 35 lakhs and in the case of auxiliary industries from 25 lakhs to 45 lakhs.

Promotion of industries in this dispersed sector primarily fell within the responsibility of

the State Governments. The Centre, however, supplemented their efforts. Inside the

general objective of food, and work efficiency laid down in the Seventh Five Year Plan,

this sector contributed towards enhancing the occupational profile of rural, semi-urban

economic and weaker sections of urban communities through development of small scale

industries.

Eighth Five Year Plan (1992-1997)

104
 The plan proposed a growth rate of 5.6 percent per annum on an average during

the plan period. The level of country’s investment proposed to be at 798 crores and

Public Sector outlay was proposed to be at 4,34,100 crores. Acceptance of significance of

industrialization had been a basic tenet of policy in India during all these years since the

execution of the Second Five Year Plan. But, for this, the country would not have had the

capital goods base, the highly diversified nature of the industrial sector and the skills and

the technical know-how all that it possesses today.

The outlay on VSIs was 4778 crores (34,075 crores for large and medium

industries),a departure in 8th plan was in respect of the significant distribution of

investment in both the public and private sectors in view of the shift in economic policy,

placing greater reliance in the market. The private sector was expected to shoulder a

greater responsibility in investment.50

After going through the approach paper on Eighth Plan, it appears that the Eighth

Five Year Plan was less fussy about targets and more about such industrial restructuring

as could automatically make for better use and enlargement of resources in industrial

sector through the spurt of private enterprises and initiatives including foreign

investment.

Ninth Five Year Plan (1997-2002)

50
D.G.Rudra Murthy(1995), Institutional finance for the development of small scale industries in Karnataka,
Ph.D thesis submitted to Gnanabharathi, Bangalore University.

105
 Ninth plan perceived that the most serious issue confronting the small scale

sector was the insufficient accessibility of credit and proposed various activities in such

manner like strengthening the financial and managerial base of State Financial

Corporation and Small Industries Development Organizations to empower them to

provide better services to the small scale sector. In any case, there had been lack of viable

coordination among the different support organizations setup over the timeframe for the

promotion and development of these industries. The productive activities in over 67% of

firms were obliged because of inadequate physical infrastructure. Small scale industries

needed to rely on the State Electricity Board for meeting their power requirements, yet

these in turn did not supply the customary and sufficient power.

With respect to road transport is concerned, poor conditions of roads and entry

points had the most enduring adverse effects on SSI sector. Following the reception of

the import liberalization policy during the 1990s, tariff material like steel, copper and

many non-ferrous metals, several chemicals, plastics, papers, etc., Stayed high in contrast

with tariff on manufactured goods. This in turn had made the issue of significant

inversion in tariff structure, which particularly hurt small firms since they were more

labour intensive and had high material to output ratios. Rivalry wound up noticeably

expanded under the WTO regime and represented a risk to many obsolete and

uncompetitive small scale units which may prompt the closure of several of them.

Following the removal of quantitative confinement, many SSIs particularly in the

106
consumer goods sector found it difficult to survive as more imported product would find

an simpler access to the Indian market.

Due to the absence of marketing organization, their products contrasted

ominously and the amount of items from multinational organizations and large scale

Indian industries. Poor infrastructural facilities and competitive strength, moderate

technical up gradation, ignorance of WTO provisions, lack of global exposure and flow

of exorbitant credit were the principle elements responsible for the low performance

recorded in these industries. From the statistical report that the expenditure had been

385.45 crores against the expense of 600 crores. During ninth plan it is clear that

insufficient performance of small scale industries.

Tenth Five Year Plan (2002-2007)

During the Tenth Five Year Plan the segment wise share of industry in the GDP

started increasing after consistent decrease. The commitment of manufacturing likewise

kept up an expanding pattern subsequent to falling in the first year of the Tenth Plan.

The Annual Survey of Industries (ASI) is the vital source of data for the

registered units and no reliable data were available for the unorganized units from the

ASI. In this situation, the Central Statistics Organization (CSO) has been using the

limited Index of Industrial Production (IIP) to project growth of both the organized and

the unorganized units at a two digit level for manufacturing. Cotton, textiles, paper and

paper products, metals and alloys, machinery and transport equipment, and other

107
manufacturing industries scored substantial rate of growth, while beverages, tobacco

products, chemicals and chemical products maintained notable rates of growth. After

recording negative growth in the first two years of the Plan period, cotton textiles made

remarkable growth in the last three years, which created a level playing field between the

small-scale and large industries. The performance of the textile industries other than

cotton was striking. The performance of the capital goods industry was another positive

feature in view of the implication it had about the rising investment in manufacturing.

Quantitative limitations on trade had already been dynamically eliminated before the

Tenth Five Year Plan period. In 1991-1992 implementation of economic reforms reduce

the import tariffs on non-agricultural products. The process was carried forward strongly

and peak tariffs on non-agricultural products were brought down from 30% in 2002 03 to

10% in the Union Budget for 2007 08. The Foreign Direct Investment (FDI) policy was

also successively liberalized during the Tenth Five Year Plan.51

Eleventh Five Year Plan (2007-2012)

In order to accomplish an average growth rate of 9% per annum in GDP during

the Eleventh Five Year Plan, it has been anticipated that, exclusively, industry and

manufacturing should develop at an average growth rate 9.8% per annum in GDP.,

Innovation and Entrepreneurship hold the key to enhancing the role of SMEs in

improving the Indian economy. As their importance is not well realized, countrywide

programmes on entrepreneurship and innovation have been launched in the shape of a

51
http://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v3/11v3_ch7.pdfaccessed on 31/3/2017 at 7.15 pm

108
national movement. Recognition for innovation and entrepreneurship in the clusters and

education institutes has been given.

Self Help Groups (SHGs) of Women and their associations and networks, etc.,

have been encouraged with increased micro financing and revolving credit during the

11th five year plan. The potential of the organized sector linking up for quality and

international attainability has been brought to the light and encouraged.

A strong requirement for preparing sectoral technology profiles of the SMEs has

been felt. These technology profiles will help in critically addressing technology needs in

line with the business requirements of the sector. To begin with, 10 SME sectors namely

Food and allied industries, Wood and wooden products, Paper, Leather and leather goods,

Rubber goods, Plastic goods, Glass and ceramics, Electrical machines, appliances ,

apparatuses, Bicycle parts, tricycles and Sports goods can be taken up for technology

profiling. There is another strong need for creating awareness about IPR (Intellectual

Property Rights) amongst the SMEs. Patenting should be encouraged by offering

financial support and subsidies. Similarly, quality assurance, eco-labelling, bar coding of

products should also be encouraged. There are a large number of engineering and

professional societies in the country. They are content with interactions with the big

companies, who support them by way of corporate membership and sponsorship of

events. There is a need to bring a paradigm change in this approach so that these

professional societies would evolve, during the 11th Plan, specific programmes which

109
will go a long way in enhancing the scientific and technological capabilities of the

SMEs.52

Twelth Five Year Plan (2012-2017)

The proposals of the Working Group are thought to be essential to support the

growth of the MSME sector during the12th Five Year Plan period. The Group might

want to point out the accompanying aspects in the proposals given wherein the execution

of which will be fundamental for the ski-jumping of MSME Sector in the worldwide

market place.

Finance

SME exchanges operations for facilitating access to Equity Finance

Technology

Scheme for attainment and up-gradation of technology

Infrastructure

Developing clusters of excellence, setting up of 100 Tool Rooms and PPDCs

(Process cum Product Development Centers).

Marketing
http://planningcommission.nic.in/aboutus/committee/wrkgrp11/wg11_subsme.pdfaccessed on 10/4/2017 at 3.00
52

pm

110
 Procurement policy for Goods/services from MSEs by the Government Depots

and Central PSUs (Public Sector Undertakings). B2B (Business to Business)

International portal. Enabling global footprints of MSMEs. Leveraging Defence Offset

Policies in favour of MSMEs.

Skill Development

Skill Development and Capacity Building Programmes are aiming at

encouraging youngsters/First Generation Entrepreneurs by up-scaling PMEGP (Prime

Ministers Employment Generation Programme) and other programmes.53

Institutional Structure

Strengthening of Institutions MSaME-DIs, EDIs and KVI Institutions

Application of E-tools in promotional and regulatory matters for facilitating easy entry.

Real time Statistical and Policy Analysis through strengthening of Database.

The Working Group proposed six umbrella schemes identifying with six

verticals, i.e Skill and Entrepreneurship Development, Credit and Finance, Technology

and Innovation, Marketing and Infrastructure, and Institutional Structure.

53
http://www.dcmsme.gov.in/WG.pdfaccessed on 10/4/2017 at 6.30 pm

111
 CHAPTER – IV

4.1. DATA ANALYSIS AND INTERPRETATION

4.1.1. INTRODUCTION

In this chapter an attempt has been made to identify the factors that influence the

level of success by the entrepreneurs in the study area. For this purpose a field survey

method was employed to collect first hand information from 630 sample respondents.

The respondents have been chosen randomly from Dharamapuri districts of the

Tamilnadu. The data thus collected were arranged into simple tabular form. The level of

success in their business perceived by the selected sample respondents is considered as a

dependent variable. The Independent variables selected for the study are Year of

Establishment, Size of Enterprise, Type of Sector, Business Area, Current Position in the

Company, Educational Background and Age.

The data were analyzed by using simple statistical tools like Percentage, Average,

Standard Deviation, Co-efficient of Variation, Two-way tables, Chi-Square test,

ANOVA, Correlation Analysis and Multiple Regression Analysis. The above mentioned

statistical tools have been analysed and discussed in the following pages.

4.2. ENTREPRENEURIAL CONSTRAINTS

112
 To identify the significant constraint that affects entrepreneurial growth, Factor

Analysis is employed. The following table consolidates the major constraints that are

faced by rural entrepreneurs. Kaiser-Meyer-Olkin (KMO) and Bartlett’s Test of

Sphericity has been used as pre-analysis testing for suitability of the entire sample for

factor analysis. The result of KMO and Bartlett’s Test is found greater than 0.70. Hence,

the collected data is fit for employing factor analysis. Further, the large values of

Bartlett’s sphercity test (315.94, df: 15, Sig=0.000) and KMO statistics (0.793) indicated

the appropriateness of factor analysis i.e., the sample was adequate.

Table 4.2.1.

KMO and Bartlett's Test

Kaiser-Meyer-Ol kin Measure of Sampling

.793
Adequacy.

Bartlett's Test of Approx. Chi-Square 315.194

Sphericity Df 15

Sig. .000

Table 4.2.2

Constraints of Rural Entrepreneurs

Entrepreneurial Constraints 1 2

Entrepreneurial -.564 .233

General .821 .192

113
 Knowledge .110 -.501

Social .216 .641

Psychological .021 -.598

Economic .853 .0480

Eigen Values 1.809 1.084

% of Variance 30.158 18.061

Cumulative % of Variance 30158 48.218

Inference:

Two factors are identified by locating Eigen values greater than unity.

Entrepreneurial constraints which have a component loading of 0.5 and above are said to

be major constraints faced by rural entrepreneurs that affects their long-term growth or

leads to failure in their business. From the rotated component matrix it can be seen that

“Economic Constraints” and “General Constraints” have a component loading of 0.5 and

above. Hence, these two constraints form first factor.

In the second factor, “Social Constraints” is found to be significant.

Factor one and factor two contributes 30.158 per cent and 18.061 respectively

towards entrepreneur’s constraints. The total cumulative percentage of entrepreneurial

constraint’s explained by these two factors accounts for 48.218 per cent.

114
 The following table, consolidated from factor analysis, displays the major

constraints faced by rural entrepreneurs. The rural entrepreneurs must took necessary

steps to over the following constraints in order to survive in their business.

Table 4.2.3

Major Constraints of Rural Entrepreneurs

Constraints Component Loading

Economic 0.853

General 0.821

Social 0.641

115
 Table 4.2.4

Gender of the Entrepreneurs

Gender Numbers Percentage

Male 465 73.8

Female 165 26.2

Total 630 100.0

Inference:

Four hundred and Sixty five (73.8) entrepreneurs are Male and the rest

165 (26.2) entrepreneurs are Female. Thus, majority of the entrepreneurs are Male.

Chart No 4.2.4

Gender
500
465
450

400

350

300
Numbers
250

200
165
150

100

50

0
Male Female

116
 Table 4.2.5

Age of the Entrepreneurs

Age Numbers Percentage

Up to 30 years 42 6.7

31 – 40 years 287 45.6

41-50 years 252 40.0

Above 50 years 49 7.8

Total 630 100.0

Inference:

Out of 630 entrepreneurs, 42 (6.7) entrepreneurs are within the age of up to 30 years; 287

(45.6) entrepreneurs age ranges from 31 to 40 years; 252 (40) entrepreneurs age ranges

between 41 and 50 years and the remaining 49 (7.8) entrepreneurs are above the age of

50 years. Thus, most of the entrepreneur’s age ranges from 31 to 40 years.

117
 Chart No 4.2.5

Age
350

300

250

200 Numbers

150

100

50

0
Up to 30 years 31 – 40 years 41-50 years Above 50 years

118
 Table 4.2.6

Educational Qualification of the Entrepreneurs

Particulars Numbers Percentage

Uneducated 57 9.0

School Level 211 33.5

UG / PG 176 27.9

Professional 186 29.5

Total 630 100.0

Inference:

Fifty seven (9.0) entrepreneurs are with uneducated; 211 (33.5) entrepreneurs are

with school level; 176 (27.9) entrepreneurs are with UG /PG educational qualification

and the rest 186 (29.5) entrepreneurs are with Professional educational qualification.

Thus, most of the entrepreneurs are with School level educational qualification.

119
 Chart No 4.2.6

Educational Qualification Of The Entrepreneurs

250

200

150 Numbers

100

50

0
Uneducated School Level UG / PG Professional

120
 Table 4.2.7

Previous Experience of the Entrepreneurs

Particulars Frequency Percentage

Government 76 12.1

Agriculture 87 13.8

Private 147 23.3

Industry 190 30.2

Others 130 20.6

Total 630 100.0

Inference:

Seventy six (12.1) entrepreneurs have government employees previous experience,

87 (13.8) entrepreneurs previous experience Agricultural Back ground, 147 (23.3)

entrepreneurs previous experience belongs to private industry and the rest 130 (20.6)

entrepreneurs previous experience others. Thus, most of the entrepreneur’s previous

experience belongs to private industry.

121
 Chart No 4.2.7

Previous Experience of the Entrepreneurs

200
190

180

160
147
140
130

120

100 Frequency
87
80 76

60

40

20

0
Government Agriculture Private Industry Others

122
 Table 4.2.8

Parental Occupation of the Entrepreneurs

Items Frequency Percentage

Government 179 28.4

Agriculture 280 44.4

Private Industry 171 27.2

Total 630 100.0

Inference:

One hundred and seventy nine (28.4) entrepreneurs parents occupation belongs to

governmental organization, 280 (44.4) entrepreneurs parents occupation belongs to

Agricultures, 171 (271) entrepreneurs parents occupation belongs to Private industry.

Thus, most of the entrepreneur’s parent’s occupation belongs to Agricultures.

Parental Occupation Of The Entrepreneurs

300

250

200
Frequency

150

100

50

0
Government Agriculture Private Industry

123
 Table 4.2.9

Marital Status of the Entrepreneurs

Particulars Frequency Percentage

Single 193 30.6

Married 437 69.4

Total 630 100.0

Inference:

Four hundred and thirty seven (69.4) entrepreneurs are married and the rest

193 (30.6) entrepreneurs are unmarried. Thus, majority of the entrepreneurs are married.

Chart No4.2.9

500
450
400
350
300
Frequency
250
437
200
150
100 193
50
0
Single Married

124
 Table 4.2.10

Family Type of the Entrepreneurs

Family Type Frequency Percentage

Nuclear Family 298 47.3

Joint Family 271 43.0

Extended Family 61 9.7

Total 630 100.0

Inference:

Two hundred and ninety eight (47.3) entrepreneurs belong to nuclear family, 271

(43.0) entrepreneurs belong to joint family and the remaining 61 (9.7) entrepreneurs

belong to extended family. Thus, majority of the entrepreneurs belong to nuclear family.

Chart No 4.2.10

Family Type
350

300

250

200 Frequency

150

100

50

0
Nuclear Family Joint Family Extended Family

125
 Table 4.2.11

Life Span of your establishment of the Entrepreneurs

Particulars Frequency Percentage

Upto 10 Years 131 20.8

11– 15 Years 318 50.5

Above 15 Years 181 28.7

Total 630 100.0

Inference:

One hundred and thirty one (20.8) entrepreneurs have up to ten years of establishment of

their business, 318 (50.5) entrepreneurs establishment of their business ranges from 11 to

15 years, and the rest 181 (28.7) entrepreneurs establishment of their business ranges

above 15 years. Thus, most of the entrepreneur’s establishment of their business ranges

from 11 to 15 years.

126
 Chart No 4.2.11

Life Span Of Your Establishment Of The Entre-

preneurs

350

300

250 Frequency

200

150

100

50

0
Upto 10 Years 11– 15 Years Above 15 Years

127
 Table 4.2.12

Monthly Income of the Entrepreneurs

Monthly Income Frequency Percentage

Below 15000 82 13.0

15001 – 30000 160 25.4

30001 – 50000 140 22.2

50001 –100000 172 27.3

Above 100000 76 12.1

Total 630 100.0

Inference:

Eighty Two (13.0) entrepreneurs average monthly income ranges Below 15000,

160 (25.4) entrepreneurs average monthly income ranges from 15001 to 30000, 140

(22.2) entrepreneurs average monthly income ranges 30001 to 50000, 172 (27.3)

entrepreneurs average monthly income ranges between 50001 to 100000 and the rest 76

(12.1) entrepreneurs average monthly income ranges above 100000. Thus, most of the

entrepreneur’s average monthly income ranges from 50001 to 100000.

128
 Chart No 4.2.12

Monthly Income
200

180

160

140

120
Frequency
100

80

60

40

20

0
Below 15000 15001 – 30000 30001 – 50000 50001 –100000 Above 100000

129
 Table 4.2.13

Experience of the Entrepreneurs

Experience Frequency Percentage

Up to 5 years 79 12.5

6-10 years 52 8.3

11-15 years 318 50.5

Above 15 years 181 28.7

Total 630 100.0

Inference:

Seventy nine (12.5) entrepreneurs have up to five years of experience, 52 (8.3)

entrepreneurs experience ranges from 6 to 10 years, 318 (50.5) entrepreneurs experience

ranges between 11 and 15 years and the rest 181 (28.7) entrepreneurs experience ranges

above 15 years. Thus, most of the entrepreneurs experience ranges from 11 to 15 years.

130
 Chart No 4.2.13

Experience
350

300

250

200 Frequency

150

100

50

0
Up to 5 years 6-10 years 11-15 years Above 15 years

131
 Table 4.2.14

Nature of the Company of the Entrepreneurs

Nature of the Company Frequency Percentage

Manufacturing 128 20.3

Retailing 393 62.4

Service 109 17.3

Total 630 100.0

Inference:

One hundred and twenty eight (20.3) entrepreneurs are Manufacturing industries,

393 (62.4) entrepreneurs run Retailing business, and 109 (17.3) entrepreneurs run a

Service industries. Thus, most of the entrepreneurs belong to retailing business.

Chart No 4.2.14

Nature of the Company

450

400

350

300

250 Frequency

200

150

100

50

0
Manufacturing Retailing Service

132
 Table 4.2.15

Form of the Company of the Entrepreneurs

Form of the Company Frequency Percentage

Sole proprietorship 103 16.3

Partnership 324 51.4

Family Business 133 21.1

Limited company 70 11.1

Total 630 100.0

Inference:

One hundred and three (16.3) entrepreneurs are sole traders, 324 (51.4)

entrepreneurs run partnership form of business, 133 (21.1) entrepreneurs run family

business and 70 (11.1) entrepreneurs run limited company form of business. Thus, most

of the entrepreneurs run partnership form of business.

133
 Chart No 4.2.15

Form of the Company

350

300

250

200 Frequency

150

100

50

0
Sole proprietorship Partnership Family Business Limited company

134
 Table 4.2.16

First generation entrepreneur

First generation entrepreneur Frequency Percentage

Yes 385 61.1

No 245 38.9

Total 630 100.0

Inference:

Three hundred and eighty five (61.1) entrepreneurs are first generation

entrepreneur and the rest 243 (38.9) entrepreneurs are not first generation entrepreneur.

Thus, majority of the entrepreneurs are first generation entrepreneur.

Chart No 4.2.16

First generation entrepreneur

400
350
300
Frequency
250
200
150
100
50
0
Yes No

135
 Table 4.2.17

The major problems you currently face in running your enterprise

Mea
Resp
Total n Ran
Factors 1 2 3 4 5 6 7 onde
score scor k
nts
e

Raw 3032 48.1

61 89 82 130 87 92 89 630 IV
Materials 8 4

Electricity 2532 40.1

28 27 73 102 121 115 164 630 VII
0 9

Labour 2840 45.0

34 52 87 110 149 131 67 630 VI
0 8

Technical 2846 45.1

68 56 60 114 120 91 121 630 V
3 8

Financial 4118 65.3

296 129 67 45 42 37 14 630 I
9 8

Marketing 3311 52.5

74 157 127 61 54 73 84 630 II
9 7

Political 3179 50.4

69 120 134 68 57 91 91 630 III
6 7

136
Total no of

Responden 630 630 630 630 630 630 630

Inference:

From the Garrett Ranking test, it is found that majority of the entrepreneur major

problems faced by a running business from their Financial, Marketing, Political, Raw

materials etc.,

Table 4.2.18

The problems you are facing while in running the business

Res
pon Total Mean
Factors 1 2 3 4 5 6 Rank
dent score score
s

27
Combining family 50 53 70 61 123 630 24079 38.22 VI
3
and work life
Liquidity and other 13 11 12
139 74 39 630 34997 55.55 II
financial problems 8 8 2
Gaining the
15 16 12
acceptance/respect 69 92 32 630 33314 52.88 III
2 2 3
of people
Being a
11 12 13
woman/Gender 89 105 65 630 32036 50.85 IV
5 3 3
discrimination

137
No time for
10
training / upgrading 234 93 91 74 37 630 37132 58.94 I
1
skills
Low budget for PR
18
and marketing 49 79 66 90 162 630 26183 41.56 V
4
activities
Total no of 63 63 63 63
Respondents 630 0 0 0 630 0

Inference:

From the analysis it is inferred that majority of the entrepreneurs are of opinion

that they have No time for training / upgrading skills for a new technologies, Liquidity

and other financial problems, Gaining the acceptance/respect of people.

Table 4.2.19

The important motivating factors to take up Entrepreneurship

1 2 3 4 5 6 7 8 Respond sco Mea Ra

ents re n nk
Factors score
Education / 1 1
6 9 8 5 4 6 329 52.34
previous 3 0 630 IV
1 8 1 0 0 2 78 67
experience 8 0
Governments
policies / 1 1 1
3 4 6 6 5 295 46.84
assistance / 0 3 2 630 VI
3 8 7 4 4 13 67
incentives / 0 5 9
subsides
Success stories of 3 4 6 6 5 9 1 1 630 258 41.00 VII
role models 1 0 1 5 8 0 6 2 35 83

138
 2 3
1 1 1
To keep myself 2 1 3 6 8 238 37.84 VII
0 4 6 630
busy and engaged 4 3 7 5 6 42 5 I
0 2 3
To full the
1 1
ambition of 8 7 5 6 3 4 362 57.60
5 0 630 I
myself / parents/ 7 8 7 7 5 3 92 67
6 7
husband.
To be
1 1
authoritative / 4 8 6 8 6 6 317 50.32
1 0 630 V
independent / 5 7 9 8 2 4 07 83
5 0
creative
To take up family 1 1
8 5 6 4 6 4 362 57.52
business /4 3 630 II
4 4 1 6 1 2 42 67
traditional job 9 3
1 1
Due to 7 5 5 7 6 7 330 52.49
3 0 630 III
employment 6 6 0 4 4 9 70 17
1 0
6 6 6 6 6 6 6 6
Total no of
3 3 3 3 3 3 3 3
Respondents
0 0 0 0 0 0 0 0

Inference:

From the analysis it is inferred that majority of the entrepreneurs important motivating

factors to take up Entrepreneurship they need To full the ambition of myself / parents/

husband, To take up family business / traditional job, Due to employment.

Table 4.2.20

139
 The factor influence your business

Mean
 Factors
Rank Rank
Social status 11.04 1
Gain social recognition 10.92 2
Financial subsidiary for rural entrepreneurs and other Govt
10.32
support 3
Entrepreneurship training institutions 9.07 4
Cheap Raw material availability 8.86 5
Profit making money 8.58 6
Did not want to work for others 8.46 7
Own Interest 8.31 8
To make my own decisions 8.15 9
Successful existing rural entrepreneur’s 8.07 10
Friends and relatives 7.83 11
Threat of losing my job 7.71 12
Family encouragement 7.35 13
Want for control and freedom 7.32 14
Self-achievement 7.3 15
No good job opportunities 6.71 16

Inference:

From the Friedman rank test, it is ascertained that majority of the entrepreneur

influencing factors to start a business in that Social status followed by Gain social

recognition, Financial subsidiary for rural entrepreneurs and other Govt support,

Entrepreneurship training institutions and the like.

140
 Table 4.2.21

Problems faced by the entrepreneurs

Mean
 There are Problems
Rank  
A question of self confidence (believing in your abilities) 12.64 1
Start up finance 9.2 14
Lack of information / advice on how to start an enterprise 10.09 8
Finding the right contacts for your business venture 9.9 9
Awareness/Access to business support 9.02 17
Management skills 9.5 12
Entrepreneurial skills 9.58 10
Lack of intercultural and language skills for foreign markets 9.56 11
Combining family and work life 10.18 6
Being a woman, gender discrimination 8.84 19
Identifying a suitable product 12.47 2
Fixing brand name of getting trade mark 9.06 16
Identifying a suitable location 10.24 5
Preparation of project report 10.45 4
Getting registration 11.5 3
Contact with officials 9.02 17
Power connection 9.2 14
Family resistance 10.14 7
Gender based discrimination 9.41 13

Inference:

141
From the Friedman rank test, it is ascertained that problems face by the entrepreneur in

that A question of self-confidence (believing in your abilities)followed by Identifying a

suitable product, Getting registration, Identifying a suitable location and the like.

Table 4.2.22

The important factors which keep you successful in your present job

Mean
 Important Factors
Rank  Rank

Self confidence 6.74 1

Dynamic and creative 5.75 6

Human relations 6.44 3

Hard work 5.83 5

Honesty and integrity 5.63 9

Frustration tolerance 5.69 8

Authoritative 6.41 4

Achievement motivation 5.62 10

Age / Maturity 5.7 7

Special skills / Experience 5.59 11

Educational Qualification 6.6 2

142
Inference:

From the Friedman rank test, it is ascertained that important factors to successful

entrepreneur in their Self-confidence followed by Educational Qualification, Human

relations, Authoritative and the like.

Table 4.2.23

Age * Level of Entrepreneurial Constraints

Level of Entrepreneurial Constraints

Age Low Moderate High Total

Upto 30 years 8 28 6 42

19.0% 66.7% 14.3% 100.0%

31 – 40 years 59 181 47 287

20.6% 63.1% 16.4% 100.0%

41-50 years 43 174 35 252

17.1% 69.0% 13.9% 100.0%

Above 50 years 10 35 4 49

20.4% 71.4% 8.2% 100.0%

Total 120 418 92 630

19.0% 66.3% 14.6% 100.0%

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 3.946a 6 .684(NS)

143
P=0.684>0.05 (NS) – Not significant at 0.05 level

Null Hypothesis

H0: There is no association between Age and Level of Entrepreneurial Constraints

It is inferred from the above table that the high level of Entrepreneurial Constraints is

observed among up to 31 – 40 years age (16.40). Low level of Entrepreneurial

Constraints is observed among age group Above 50 Years (20.40). The calculated Chi

square value is greater than table value (3.946) and the result is significant at 5% level.

Hence, the null hypothesis is accepted. There is no association between Age and Level of

Entrepreneurial Constraints.

144
 Table 4.2.24

Educational Qualification * Level of Entrepreneurial Constraints

Educational
Level of Entrepreneurial Constraints Total
Qualification
Low Moderate High

Uneducated 9 41 7 57

15.8% 71.9% 12.3% 100.0%

School Level 42 137 32 211

19.9% 64.9% 15.2% 100.0%

UG / PG 34 110 32 176

19.3% 62.5% 18.2% 100.0%

Professional 35 130 21 186

18.8% 69.9% 11.3% 100.0%

Total 120 418 92 630

19.0% 66.3% 14.6% 100.0%

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 4.685 6 .585(NS)

145
H0 : There is no association between Educational Qualification and Level of

Entrepreneurial Constraints

It is inferred from the above table that the high level of Entrepreneurial Constraints is

observed among UG/PG (18.20). Low level of Entrepreneurial Constraints is observed

among School level of educational qualification (19.90). The calculated Chi square value

is greater than table value (4.685) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Educational Qualification and

Level of Entrepreneurial Constraints.

146
 Table 4.2.25

Monthly Income * Level of Entrepreneurial Constraints

Level of Entrepreneurial Constraints

Monthly Income Low Moderate High Total
Below 15000 12 57 13 82
14.6% 69.5% 15.9% 100.0%
15001 – 30000 31 105 24 160
19.4% 65.6% 15.0% 100.0%
30001 – 50000 32 90 18 140
22.9% 64.3% 12.9% 100.0%
50000 –100000 28 122 22 172
16.3% 70.9% 12.8% 100.0%
Above 100000 17 44 15 76
22.4% 57.9% 19.7% 100.0%
Total 120 418 92 630
19.0% 66.3% 14.6% 100.0%

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 6.791 8 .559(NS)

H0: There is no association between Monthly Income and Level of Entrepreneurial

Constraints

147
It is inferred from the above table that the high level of Entrepreneurial Constraints is

observed Monthly income among Below 15000 (15.90). Low level of Entrepreneurial

Constraints is observed Monthly income among 30001 - 50000 (22.90). The calculated

Chi square value is greater than table value (6.791) and the result is significant at 5%

level. Hence, the null hypothesis is accepted. There is no association between Monthly

Income and Level of Entrepreneurial Constraints.

148
 Table 4.2.26

Experience * Level of Entrepreneurial Constraints

Level of Entrepreneurial Constraints

Experience Low Moderate High Total

Below 5 years 18 48 13 79

22.8% 60.8% 16.5% 100.0%

6-10 years 10 29 13 52

19.2% 55.8% 25.0% 100.0%

11-15 years 50 230 38 318

15.7% 72.3% 11.9% 100.0%

Above 15 years 42 111 28 181

23.2% 61.3% 15.5% 100.0%

Total 120 418 92 630

19.0% 66.3% 14.6% 100.0%

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 13.379 6 .037(S)

P=0.037<0.05 (S) –significant at 0.05 level

H0: There is no association between Experience and Level of Entrepreneurial Constraints

149
It is inferred from the above table that the high level of Entrepreneurial Constraints is

observed in experienced at 6 – 10 years (25.00). Low level of Entrepreneurial Constraints

is observed in experience at(23.20). The calculated Chi square value is less than table

value (13.379) and the result is significant at 5% level. Hence, the null hypothesis is

rejected. There is an association between Experience and Level of Entrepreneurial

Constraints.

150
 Table 4.2.27

Age * Level of General Constraints

Level of General Constraints

Low Moderate High Total

Age Upto 30 years Count 21 17 4 42

% within Age 50.0% 40.5% 9.5% 100.0%

31 – 40 years Count 133 120 34 287

% within Age 46.3% 41.8% 11.8% 100.0%

41-50 years Count 115 119 18 252

% within Age 45.6% 47.2% 7.1% 100.0%

Above 50 years Count 29 15 5 49

% within Age 59.2% 30.6% 10.2% 100.0%

Total Count 298 271 61 630

% within Age 47.3% 43.0% 9.7% 100.0%

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 13.933a 6 .030

P=0.030<0.05 (S) –significant at 0.05 level

151
H0: There is no association between Age and Level of General Constraints

It is inferred from the above table that the high level of General Constraints is observed in

age level at 31 – 40 years (11.8). Low level of General Constraints is observed in age

level at above 50 years (59.20). The calculated Chi square value is less than table value

(13.933) and the result is significant at 5% level. Hence, the null hypothesis is rejected.

There is an association between Age and Level of General Constraints.

152
 Table 4.2.28

Educational Qualification Level of General Constraints

Level of General
Constraints
Low ModerateHigh Total
Educational Uneducated Count 6 41 10 57
Qualification % within
Educational 10.5% 71.9% 17.5% 100.0%
Qualification
School Count 32 137 42 211
Level % within
Educational 15.2% 64.9% 19.9% 100.0%
Qualification
UG / PG Count 30 117 29 176
% within
Educational 17.0% 66.5% 16.5% 100.0%
Qualification
ProfessionalCount 29 127 30 186
% within
Educational 15.6% 68.3% 16.1% 100.0%
Qualification
Total Count 97 422 111 630
% within
Educational 15.4% 67.0% 17.6% 100.0%
Qualification

Value Df Asymp. Sig. (2-

sided)
Pearson Chi-Square 2.586a 6
.859
H0: There is no association between Educational Qualification and Level of General

Constraints

It is inferred from the above table that the high level of General Constraints is observed

among School level (19.90). Low level of General Constraints is observed among UG /

PG level of educational qualification (17.00). The calculated Chi square value is greater

153
than table value (2.586) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Educational Qualification and

Level of General Constraints.

154
 Table 4.2.29

Monthly Income * Level of General Constraints

Level of General
Constraints
Monthly Income Low Moderate High Total
Below 15000 Count 13 56 13 82
% within Monthly
15.9% 68.3% 15.9% 100.0%
Income
15001 – 30000 Count 25 106 29 160
% within Monthly
15.6% 66.3% 18.1% 100.0%
Income
30001 – 50000 Count 17 101 22 140
% within Monthly
12.1% 72.1% 15.7% 100.0%
Income
50001–100000 Count 26 111 35 172
% within Monthly
15.1% 64.5% 20.3% 100.0%
Income
Above 100000 Count 16 48 12 76
% within Monthly
21.1% 63.2% 15.8% 100.0%
Income
Total Count 97 422 111 630
% within Monthly
15.4% 67.0% 17.6% 100.0%
Income

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 4.806a 8 .778

H0: There is no association between Monthly Income and Level of General Constraints

It is inferred from the above table that the high level of General Constraints is observed

Monthly income among 50001 - 100000 (20.30). Low level of General Constraints is

155
observed Monthly income Above 100000 (21.10). The calculated Chi square value is

greater than table value (4.806) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Monthly Income and Level of

General Constraints.

156
 Table 4.2.30

Experience * Level of General Constraints

Level of General Constraints

Experience Low Moderate High Total
Below 5 years Count 7 56 16 79
% within
8.9% 70.9% 20.3% 100.0%
Experience
6-10 years Count 8 33 11 52
% within
15.4% 63.5% 21.2% 100.0%
Experience
11-15 years Count 48 226 44 318
% within
15.1% 71.1% 13.8% 100.0%
Experience
Above 15 years Count 34 107 40 181
% within
18.8% 59.1% 22.1% 100.0%
Experience
Total Count 97 422 111 630
% within
15.4% 67.0% 17.6% 100.0%
Experience
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 11.625 6
a
.071

H0: There is no association between Experience and Level of General Constraints

It is inferred from the above table that the high level of General Constraints is

observed in experienced at Above15 years (22.10). Low level of General Constraints is

observed in experience at Above 15 years(18.80). The calculated Chi square value is

greater than table value (11.625) and the result is significant at 5% level. Hence, the null

157
hypothesis is accepted. There is no association between Experience and Level of General

Constraints.

Table 4.2.31

Age * Level of Knowledge Constraints

Level of Knowledge Constraints

Age Low Moderate High Total

Upto 30 years Count 5 24 13 42

% within Age 11.9% 57.1% 31.0% 100.0%

31 – 40 years Count 58 139 90 287

% within Age 20.2% 48.4% 31.4% 100.0%

41-50 years Count 58 132 62 252

% within Age 23.0% 52.4% 24.6% 100.0%

Above 50 years Count 10 23 16 49

% within Age 20.4% 46.9% 32.7% 100.0%

Total Count 131 318 181 630

% within Age 20.8% 50.5% 28.7% 100.0%

Asymp. Sig. (2-

Value Df sided)

Pearson Chi-Square 67.072a 6 .000

158
H0: There is no association between Age and Level of Knowledge Constraints

It is inferred from the above table that the high level of Knowledge Constraints is

observed in age level at Above 50 years (32.7). Low level of Knowledge Constraints is

observed in age level at 41 - 50 years (23.00). The calculated Chi square value is lessthan

table value (67.072) and the result is significant at 5% level. Hence, the null hypothesis is

rejected. There is an association between Age and Level of Knowledge Constraints.

159
 Table 4.2.32

Monthly Income * Level of Knowledge Constraints

Level of Knowledge
Constraints
Monthly Income Low Moderate High Total
Below 15000 Count 15 38 29 82
% within Monthly
18.3% 46.3% 35.4% 100.0%
Income
15001 – 30000 Count 33 75 52 160
% within Monthly
20.6% 46.9% 32.5% 100.0%
Income
30001 – 50000 Count 32 72 36 140
% within Monthly
22.9% 51.4% 25.7% 100.0%
Income
50001 –100000 Count 35 92 45 172
% within Monthly
20.3% 53.5% 26.2% 100.0%
Income
Above 100000 Count 16 41 19 76
% within Monthly
21.1% 53.9% 25.0% 100.0%
Income
Total Count 131 318 181 630
% within Monthly
20.8% 50.5% 28.7% 100.0%
Income

Asymp. Sig. (2-

Value Df sided)

Pearson Chi-Square 5.013a 8 .756

H0 : There is no association between Monthly Income and Level of Knowledge

Constraints

160
It is inferred from the above table that the high level of Knowledge Constraints is

observed Monthly income among Below 15000 (35.40). Low level of General

Constraints is observed Monthly income among 30001 - 50000(22.90). The calculated

Chi square value is greater than table value (5.013) and the result is significant at 5%

level. Hence, the null hypothesis is accepted. There is no association between Monthly

Income and Level of Knowledge Constraints.

161
 Table 4.2.33

Experience * Level of Knowledge Constraints

Level of Knowledge Constraints

Experience Low Moderate High Total
Below 5 years Count 22 37 20 79
% within Experience27.8% 46.8% 25.3% 100.0%
6-10 years Count 7 28 17 52
% within Experience13.5% 53.8% 32.7% 100.0%
11-15 years Count 69 154 95 318
% within Experience21.7% 48.4% 29.9% 100.0%
Above 15 years Count 33 99 49 181
% within Experience18.2% 54.7% 27.1% 100.0%
Total Count 131 318 181 630
% within Experience20.8% 50.5% 28.7% 100.0%

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 6.081a 6 .414

H0: There is no association between Experience and Level of Knowledge Constraints

It is inferred from the above table that the high level of Knowledge Constraints is

observed in experienced in 6 – 10 years (32.70). Low level of Knowledge Constraints is

observed in experience at Below 5 years (27.80). The calculated Chi square value is

greater than table value (6.081) and the result is significant at 5% level. Hence, the null

162
hypothesis is accepted. There is no association between Experience and Level of

Knowledge Constraints.

Table 4.2.34

Age * Level of Social Constraints

Level of Social Constraints

Age Low Moderate High Total
Upto 30 years Count 21 17 4 42
% within Age 50.0% 40.5% 9.5% 100.0%
31 – 40 years Count 133 120 34 287
% within Age 46.3% 41.8% 11.8% 100.0%
41-50 years Count 115 119 18 252
% within Age 45.6% 47.2% 7.1% 100.0%
Above 50 years Count 29 15 5 49
% within Age 59.2% 30.6% 10.2% 100.0%
Total Count 298 271 61 630
% within Age 47.3% 43.0% 9.7% 100.0%
Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.762a 6 .256

H0: There is no association between Age and Level of Social Constraints

It is inferred from the above table that the high level of Social Constraints is observed in

age level at 31 - 40 years (11.8). Low level of Social Constraints is observed in age level

at above 50 years (59.20). The calculated Chi square value is greater than table value
163
(7.762) and the result is significant at 5% level. Hence, the null hypothesis is accepted.

There is no association between Age and Level of Social Constraints.

Table 4.2.35

Educational Qualification * Level of Social Constraints

Level of Social
Constraints
Educational Qualification Low ModerateHigh Total
Uneducated Count 32 25 0 57
% within
Educational 56.1% 43.9% 0.0% 100.0%
Qualification
School Level Count 90 119 2 211
% within
Educational 42.7% 56.4% 0.9% 100.0%
Qualification
UG / PG Count 75 55 46 176
% within
Educational 42.6% 31.3% 26.1% 100.0%
Qualification
Professional Count 101 72 13 186
% within
Educational 54.3% 38.7% 7.0% 100.0%
Qualification
Total Count 298 271 61 630
% within
Educational 47.3% 43.0% 9.7% 100.0%
Qualification
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 92.658a 6 .000

H0: There is no association between Educational Qualification and Level of Social

Constraints

164
It is inferred from the above table that the high level of Social Constraints is observed

among UG / PG (26.10). Low level of Social Constraints is observed among uneducated

(56.10). The calculated Chi square value is less than table value (92.658) and the result is

significant at 5% level. Hence, the null hypothesis is rejected. There is an association

between Educational Qualification and Level of Social Constraints.

Table 4.2.36

Monthly Income * Level of Social Constraints

Level of Social Constraints

Monthly Income Low ModerateHigh Total
Below 15000 Count 44 30 8 82
% within Monthly
53.7% 36.6% 9.8% 100.0%
Income
15001 – 30000 Count 68 71 21 160
% within Monthly
42.5% 44.4% 13.1% 100.0%
Income
30001 – 50000 Count 74 57 9 140
% within Monthly
52.9% 40.7% 6.4% 100.0%
Income
50000 –100000 Count 79 79 14 172
% within Monthly
45.9% 45.9% 8.1% 100.0%
Income
Above 100000 Count 33 34 9 76
% within Monthly
43.4% 44.7% 11.8% 100.0%
Income
Total Count 298 271 61 630
% within Monthly
47.3% 43.0% 9.7% 100.0%
Income

165
 Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 67.072a 8 .000

H0: There is no association between Monthly Income and Level of Social Constraints

It is inferred from the above table that the high level of Social Constraints is observed

Monthly income among Below 15000 (35.40). Low level of Social Constraints is

observed Monthly income among 30001 - 50000 (22.90). The calculated Chi square

value is less than table value (67.072) and the result is significant at 5% level. Hence, the

null hypothesis is rejected. There is an association between Monthly Income and Level of

Social Constraints.

Table 4.2.37

Experience * Level of Social Constraints

Experience Low Moderate High

Below 5 years Count 45 29 5 79
% within Experience57.0% 36.7% 6.3% 100.0%
6-10 years Count 21 25 6 52
% within Experience40.4% 48.1% 11.5% 100.0%
11-15 years Count 156 131 31 318
% within Experience49.1% 41.2% 9.7% 100.0%
Above 15 years Count 76 86 19 181
% within Experience42.0% 47.5% 10.5% 100.0%
Total Count 298 271 61 630
% within Experience47.3% 43.0% 9.7% 100.0%

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

166
Pearson Chi-Square 6.736a 6 .346

H0: There is no association between Experience and Level of Social Constraints

It is inferred from the above table that the high level of Social Constraints is observed in

experienced in 6 – 10 years (11.50). Low level of Social Constraints is observed in

experience at Below 5 years (57.00). The calculated Chi square value is greater than table

value (6.081) and the result is significant at 5% level. Hence, the null hypothesis is

accepted. There is no association between Experience and Level of Social Constraints.

Table 4.2.38

Age * Level of Psychological Constraints

Level of Psychological
Constraints
Age Low Moderate High Total
Upto 30 years Count 5 10 27 42
% within Age 11.9% 23.8% 64.3% 100.0%
31 – 40 years Count 52 50 185 287
% within Age 18.1% 17.4% 64.5% 100.0%
41-50 years Count 48 45 159 252
% within Age 19.0% 17.9% 63.1% 100.0%
Above 50 years Count 6 8 35 49
% within Age 12.2% 16.3% 71.4% 100.0%
Total Count 111 113 406 630
% within Age 17.6% 17.9% 64.4% 100.0%

Chi-Square Tests
Asymp. Sig. (2-
Value Df sided)
Pearson Chi-Square 3.278a 6 .773

167
H0: There is no association between Age and Level of Psychological Constraints

It is inferred from the above table that the high level of Psychological Constraints is

observed in age level at Above 50 years (71.40). Low level of Psychological Constraints

is observed in age level at 41 - 50 years (19.00). The calculated Chi square value is

greater than table value (3.278) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Age and Level of Psychological

Constraints.

Table 4.2.39

Educational Qualification * Level of Psychological Constraints

Level of Psychological
Constraints
Educational Qualification Low ModerateHigh Total
Uneducated Count 11 8 38 57
% within
Educational 19.3% 14.0% 66.7% 100.0%
Qualification
School Level Count 43 40 128 211
% within
Educational 20.4% 19.0% 60.7% 100.0%
Qualification
UG / PG Count 25 37 114 176
% within
Educational 14.2% 21.0% 64.8% 100.0%
Qualification
Professional Count 32 28 126 186
% within
Educational 17.2% 15.1% 67.7% 100.0%
Qualification
Total Count 111 113 406 630

168
 % within
Educational 17.6% 17.9% 64.4% 100.0%
Qualification

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 5.417a 6 .491

H0 : There is no association between Educational Qualification and Level of

Psychological Constraints

It is inferred from the above table that the high level of Psychological Constraints is

observed among Professional (67.70). Low level of Psychological Constraints is observed

among School level (20.40). The calculated Chi square value is greater than table value

(5.417) and the result is significant at 5% level. Hence, the null hypothesis is accepted.

There is no association between Educational Qualification and Level of Psychological

Constraints.

169
 Table 4.2.40

Monthly Income * Level of Psychological Constraints

Level of Psychological
Constraints
Monthly Income Low Moderate High Total
Below 15000 Count 9 9 64 82
% within Monthly
11.0% 11.0% 78.0% 100.0%
Income
15001 – 30000 Count 26 31 103 160
% within Monthly
16.3% 19.4% 64.4% 100.0%
Income
30001 – 50000 Count 26 27 87 140
% within Monthly
18.6% 19.3% 62.1% 100.0%
Income
50000 –100000 Count 29 33 110 172
% within Monthly
16.9% 19.2% 64.0% 100.0%
Income
Above 100000 Count 21 13 42 76
% within Monthly
27.6% 17.1% 55.3% 100.0%
Income
Total Count 111 113 406 630
% within Monthly
17.6% 17.9% 64.4% 100.0%
Income

Chi-Square Tests
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 12.868a 8 .116

H0 : There is no association between Monthly Income and Level of Psychological

Constraints

170
It is inferred from the above table that the high level of Psychological Constraints is

observed Monthly income among Below 15000 (78.00). Low level of Psychological

Constraints is observed Monthly income above 100000 (27.60). The calculated Chi

square value is greater than table value (12.868) and the result is significant at 5% level.

Hence, the null hypothesis is accepted. There is no association between Monthly Income

and Level of Psychological Constraints.

171
 Table 4.2.41

Age * Level of Economic Constraints

Level of Economic Constraints

Age Low Moderate High Total
Upto 30 years Count 8 19 15 42
% within Age 18.9% 45.2% 35.7% 100.0%
31 – 40 years Count 51 154 82 287
% within Age 17.8% 53.7% 28.6% 100.0%
41-50 years Count 48 136 68 252
% within Age 19.1% 54.0% 26.9% 100.0%
Above 50 years Count 9 29 11 49
% within Age 18.4% 59.2% 22.4% 100.0%
Total Count 116 338 176 630
% within Age 18.4% 53.7% 27.9% 100.0%

Chi-Square Tests
Asymp. Sig. (2-
Value Df sided)
Pearson Chi-Square 2.528a 6 .865

H0: There is no association between Age and Level of Economic Constraints

It is inferred from the above table that the high level of Economic Constraints is observed

in age level at up to 30 years (35.70). Low level of Economic Constraints is observed in

age level at 41 - 50 years (19.10). The calculated Chi square value is greater than table

value (2.528) and the result is significant at 5% level. Hence, the null hypothesis is

accepted. There is no association between Age and Level of Economic Constraints.

172
 Ta2le 4.2.42

Educational Qualification * Level of Economic Constraints

Level of Economic
Constraints
Moderat
Educational Qualification Low e High Total
Uneducated Count 9 35 13 57
% within Educational
15.8% 61.4% 22.8% 100.0%
Qualification
School Level Count 35 122 54 211
% within Educational
16.6% 57.8% 25.6% 100.0%
Qualification
UG / PG Count 37 86 53 176
% within Educational
21.0% 48.9% 30.1% 100.0%
Qualification
Professional Count 35 95 56 186
% within Educational
18.8% 51.1% 30.1% 100.0%
Qualification
Total Count 116 338 176 630
% within Educational
18.4% 53.7% 27.9% 100.0%
Qualification
Chi-Square Tests
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 5.131a 6 .527

H0: There is no association between Educational Qualification and Level of Economic

Constraints

It is inferred from the above table that the high level of Economic Constraints is observed
among UG / PG and Professional (30.10). Low level of Economic Constraints is
observed among UG / PG (21.00). The calculated Chi square value is greater than table
value (5.131) and the result is significant at 5% level. Hence, the null hypothesis is

173
accepted. There is no association between Educational Qualification and Level of
Economic Constraints.

174
 Table 4.2.43
Monthly Income * Level of Economic Constraints

Level of Economic
Constraints
Monthly Income Low Moderate High Total
Below 15000 Count 13 41 28 82
% within Monthly Income 15.9% 50.0% 34.1% 100.0%
15001 – 30000 Count 32 86 42 160
% within Monthly Income 20.0% 53.8% 26.3% 100.0%
30001 – 50000 Count 25 77 38 140
% within Monthly Income 17.9% 55.0% 27.1% 100.0%
50000 –100000 Count 33 93 46 172
% within Monthly Income 19.2% 54.1% 26.7% 100.0%
Above 100000 Count 13 41 22 76
% within Monthly Income 17.1% 53.9% 28.9% 100.0%
Total Count 116 338 176 630
% within Monthly Income 18.4% 53.7% 27.9% 100.0%
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.361a 8 .968

H0: There is no association between Monthly Income and Level of Economic Constraints

It is inferred from the above table that the high level of Economic Constraints is observed

Monthly income among Below 15000 (34.10). Low level of Economic Constraints is

observed Monthly income level at 15001 – 30000(27.60). The calculated Chi square

value is greater than table value (2.361) and the result is significant at 5% level. Hence,

the null hypothesis is accepted. There is no association between Monthly Income and

Level of Economic Constraints.

175
 Table 4.2.44

Experience * Level of Economic Constraints

Level of Economic Constraints

Experience Low Moderate High Total
Below 5 years Count 15 46 18 79
% within Experience19.0% 58.2% 22.8% 100.0%
6-10 years Count 14 28 10 52
% within Experience26.9% 53.8% 19.2% 100.0%
11-15 years Count 54 162 102 318
% within Experience17.0% 50.9% 32.1% 100.0%
Above 15 years Count 33 102 46 181
% within Experience18.2% 56.4% 25.4% 100.0%
Total Count 116 338 176 630
% within Experience18.4% 53.7% 27.9% 100.0%

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.930a 6 .243

H0: There is no association between Experience and Level of Economic Constraints

It is inferred from the above table that the high level of Economic Constraints is observed

in experienced in 11-15 years (32.10). Low level of Economic Constraints is observed in

experience at 6 - 10 years (26.90). The calculated Chi square value is greater than table

value (7.930) and the result is significant at 5% level. Hence, the null hypothesis is

accepted. There is no association between Experience and Level of Economic

Constraints.

176
 Table 4.2.45

Experience * Level of Psychological Constraints

Level of Psychological
Constraints
Experience Low Moderate High Total
Below 5 years Count 20 8 51 79
% within Experience 25.3% 10.1% 64.6% 100.0%
6-10 years Count 6 9 37 52
% within Experience 11.5% 17.3% 71.2% 100.0%
11-15 years Count 62 64 192 318
% within Experience 19.5% 20.1% 60.4% 100.0%
Above 15 years Count 23 32 126 181
% within Experience 12.7% 17.7% 69.6% 100.0%
Total Count 111 113 406 630
% within Experience 17.6% 17.9% 64.4% 100.0%

Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 12.347a 6 .055

H0: There is no association between Experience and Level of Psychological Constraints

It is inferred from the above table that the high level of Psychological Constraints is

observed in experienced in Above 15 years (69.60). Low level of Psychological

Constraints is observed in experience at 11 -15 years (19.50). The calculated Chi square

value is greater than table value (12.347) and the result is significant at 5% level. Hence,

the null hypothesis is accepted. There is no association between Experience and Level of

Psychological Constraints.

177
 Table: 4.2.46

The success of entrepreneurship

curtail the success of

entrepreneurship
Experience Low Moderate High Total
Below 5 years Count 20 48 11 79
% within Experience 25.3% 60.8% 13.9% 100.0%
6-10 years Count 12 29 11 52
% within Experience 23.1% 55.8% 21.2% 100.0%
11-15 years Count 51 229 38 318
% within Experience 16.0% 72.0% 11.9% 100.0%
Above 15 years Count 43 105 33 181
% within Experience 23.8% 58.0% 18.2% 100.0%
Total Count 126 411 93 630
% within Experience 20.0% 65.2% 14.8% 100.0%

Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 14.437a 6 .025

H0: There is no association between Experience and Level of curtail the success of
entrepreneurship

It is inferred from the above table that the high level of curtail the success of

entrepreneurship is observed in experienced at 6 – 10 years (21.20). Low level of curtail

the success of entrepreneurship is observed in experience at below 5 years (25.30). The

calculated Chi square value is less than table value (14.437) and the result is significant at

5% level. Hence, the null hypothesis is rejected. There is an association between

Experience and Level of curtail the success of entrepreneurship.

178
 Table: 4.2.47

Age *Curtail the success of entrepreneurship

curtail the success of entrepreneurship

Age Low Moderate High Total
Upto 30 years Count 9 27 6 42
% within Age 21.4% 64.3% 14.3% 100.0%
31 – 40 years Count 36 192 59 287
% within Age 12.5% 66.9% 20.6% 100.0%
41-50 years Count 47 149 56 252
% within Age 18.7% 59.1% 22.2% 100.0%
Above 50 years Count 5 39 5 49
% within Age 10.2% 79.6% 10.2% 100.0%
Total Count 97 407 126 630
% within Age 15.4% 64.6% 20.0% 100.0%

Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 11.913a 6 .064

H0: There is no association between Age and Level of curtail the success of

entrepreneurship

It is inferred from the above table that the high level of curtail the success of

entrepreneurship is observed in age level at 41 – 50 years (22.6). Low level of curtail the

success of entrepreneurship is observed in age level at up to 30 years (21.40). The

calculated Chi square value is greater than table value (11.913) and the result is

significant at 5% level. Hence, the null hypothesis is accepted. There is no association

between Age and Level of General Constraints.

179
 Table: 4.2.48

Educational Qualification*curtail the success of entrepreneurship

curtail the success of entrepreneurship
Educational Qualification Low Moderate High Total
Uneducated Count 10 40 7 57
% within
Educational 17.5% 70.2% 12.3% 100.0%
Qualification
School Level Count 42 137 32 211
% within
Educational 19.9% 64.9% 15.2% 100.0%
Qualification
UG / PG Count 37 108 31 176
% within
Educational 21.0% 61.4% 17.6% 100.0%
Qualification
Professional Count 37 126 23 186
% within
Educational 19.9% 67.7% 12.4% 100.0%
Qualification
Total Count 126 411 93 630
% within
Educational 20.0% 65.2% 14.8% 100.0%
Qualification
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 3.020a 6 .806

H0: There is no association between Educational Qualification and Level of curtail the
success of entrepreneurship
It is inferred from the above table that the high level of curtail the success of

entrepreneurships observed among UG / PG (17.60). Low level of curtail the success of

entrepreneurships observed among UG / PG (21.00). The calculated Chi square value is

180
greater than table value (3.020) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Educational Qualification and

Level of curtail the success of entrepreneurship

Table: 4.2.49

Monthly Income* curtail the success of entrepreneurship

curtail the success of entrepreneurship

Monthly Income Low Moderate High Total

Below 15000 Count 14 55 13 82

% within Monthly Income17.1% 67.1% 15.9% 100.0%

15001 – 30000 Count 25 103 32 160

% within Monthly Income15.6% 64.4% 20.0% 100.0%

30001 – 50000 Count 17 98 25 140

% within Monthly Income12.1% 70.0% 17.9% 100.0%

50000 –100000Count 26 108 38 172

% within Monthly Income15.1% 62.8% 22.1% 100.0%

Above 100000 Count 15 43 18 76

% within Monthly Income19.7% 56.6% 23.7% 100.0%

Total Count 97 407 126 630

% within Monthly Income15.4% 64.6% 20.0% 100.0%

Chi-Square Tests

181
 Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 13.206a 6 .040

H0: There is no association between Monthly Income and Level of curtail the success of

entrepreneurship

It is inferred from the above table that the high level of curtail the success of

entrepreneurship is observed Monthly income above 100000 (23.70). Low level of curtail

the success of entrepreneurship is observed Monthly income Above 100000 (19.70). The

calculated Chi square value is less than table value (13.206) and the result is significant at

5% level. Hence, the null hypothesis is rejected. There is an association between Monthly

Income and Level of curtail the success of entrepreneurship.

Table: 4.2.50

The assistance given by the government

Cumulative

Details Frequency Percent Valid Percent Percent

Yes 211 33.5 33.5 33.5

No 419 66.5 66.5 100.0

Total 630 100.0 100.0

Inference:

Two hundred and eleven (33.5) entrepreneurs are happy with the assistance given by

the government and the rest 419 (66.5) entrepreneurs are not happy with the assistance
182
given by the government. Thus, majority of the entrepreneurs are not happy with the

assistance given by the government

Table: 4.2.51

Entrepreneurial Performance

 Opinion HDS DS N S HS Mean Rank Rank

Employees support 43 31 56 227 273 4.95 3

Sourcing of Finance 22 60 95 233 220 4.59 4

Government assistance 33 28 139 257 173 4.25 6

Family members support 49 29 179 221 152 3.81 8

Getting of Power 62 36 109 175 248 4.45 5

Favorable Environment 23 37 75 220 275 5.03 1

Support from banking finance 17 25 88 229 271 5.02 2

Entrepreneurial Training 83 52 126 216 153 3.9 7

Inference:

From the Friedman rank test, it is ascertained that majority of the entrepreneurs

past and present entrepreneurial performance in that Favourable Environment followed

by Support from banking finance, Employees support, Sourcing of Finance and the like.

183
4.3. CORRELATION ANALYSIS

In order to examine the nature and quantum of association of variables with factor

influence to start the business correlation analysis is used. Variables considered for Chi-

square have been considered for Correlation test too. Out of twenty-three variables

selected for correlation analysis, eighteen variables have been found to be significant.

Nature of the Company, Did not want to work for others, Want for control and freedom,

To make my own decisions, Threat of losing my job, Own Interest, Cheap Raw material

availability, Friends and relatives, Financial subsidiary for rural entrepreneurs and other

Govt support, Family encouragement, Entrepreneurship training institutions, Successful

existing rural entrepreneur’s, Gain social recognition and No good job opportunities are

found to be significant at one per cent level. Age, Monthly Income and Experience found

to be significant at five per cent level

184
 Table 4.3.1

Variables associated with start the business- Correlation Analysis

Variables R r2

Age 0.097* 0.009

Gender -0.038 0.001

Monthly Income 0.113* 0.013

Previous Experience 0.099* 0.010

Educational Qualification 0.042 0.002

Family Type -0.052 0.003

Nature of the Company 0.274** 0.075

Social status -0.001 0.000

Self-achievement 0.007 0.000

Profit making money 0.653** 0.426

Did not want to work for others 0.741** 0.549

Want for control and freedom 0.673** 0.453

To make my own decisions 0.614** 0.377

Threat of losing my job 0.795** 0.632

Own Interest 0.710** 0.504

Cheap Raw material availability 0.812** 0.659

Friends and relatives 0.800** 0.641

Financial subsidiary for rural entrepreneurs and other Govt support 0.780** 0.608

185
 Family encouragement 0.812** 0.659

Entrepreneurship training institutions 0.735** 0.541

Successful existing rural entrepreneur’s 0.811** 0.658

Gain social recognition 0.788** 0.621

No good job opportunities 0.855** 0.732

* Significant at five per cent level ** Significant at one per cent level

Age

Age and emloyability skills are positively correlated. Entrepreneur who are in the

age group between 31 to 40 years have high level associated with influencing factor to

start the business. The co-efficient of determination (r2) shows that age group holds

responsible for 0.9per cent of the variation in the level ofStart the business.

Monthly Income

Monthly Incomeand Start the business are positively correlated.The high level of

influencing factor to start the business is observed among 50001 to 100000. The co-

efficient of determination (r2) shows that Monthly Income holds responsible for 5per cent

of the variation in the level ofinfluencing factor to start the business.

Previous Experience

Previous Experience and influencing factor to start the business are positively

correlated. Entrepreneurs who have private industry experience high level of start the

business.The co-efficient of determination (r2) shows that Previous Experience

responsiblefor 5per cent of the variation in the level of influencing factor tostart the

business.
186
Nature of the company

Nature of the company and influencing factor to start the business are positively

correlated. The co-efficient of determination (r 2) shows that Nature of the company

responsible for 1per cent of the variation in the level of influencing factor tostart the

business.

Profit making money

Profit making money and influencing factor to start the business are positively

correlated. The co-efficient of determination (r2) shows that Profit making money

responsible for 1per cent of the variation in the level of influencing factor tostart the

business.

Did not want to work for others

Did not want to work for others and influencing factor to start the business are

positively correlated. The co-efficient of determination (r2) shows that Did not want to

work for others responsible for 1per cent of the variation in the level of influencing factor

tostart the business.

Want for control and freedom

Did not want to work for others and influencing factor to start the business are

positively correlated. The co-efficient of determination (r2) shows that Did not want to

work for others responsible for 1per cent of the variation in the level of influencing factor

tostart the business.

187
To make my own decisions

To make my own decisions and influencing factor to start the business are

positively correlated. The co-efficient of determination (r 2) shows that level of To make

my own decisions holds responsiblefor 61.4 per cent of the variation in the level of

influencing factor to start the business.

Threat of losing my job

Threats of losing my job and factor to influence to start the business are positively

correlated. The co-efficient of determination (r2) shows that level of Threat of losing my

job holds responsiblefor 79.5 per cent of the variation in the level of influencing factor to

start the business.

Own Interest

Own Interest and factor to influence to start the business are positively correlated.

The co-efficient of determination (r2) shows that level of Own Interest holds

responsiblefor 71 per cent of the variation in the level of influencing factor to start the

business.

Cheap Raw material availability

Cheap Raw material availability and factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level Cheap Raw

material availability holds responsiblefor 81.2 per cent of the variation in the level of

influencing factor to start the business.

188
Friends and relatives

Friends and relativesand factor to influence to start the business are positively

correlated. The co-efficient of determination (r2) shows that level of and factor to

influence to start the business holds responsiblefor 80 per cent of the variation in the level

of influencing factor to start the business.

Financial subsidiary for rural entrepreneurs and other Govt support

Financial subsidiary for rural entrepreneurs and other Govt supportand factor to

influence to start the business are positively correlated. The co-efficient of determination

(r2) shows that level of Financial subsidiary for rural entrepreneurs and other Govt

support holds responsiblefor 78 per cent of the variation in the level of influencing factor

to start the business.

Family encouragement

Family encouragementand factor to influence to start the business are positively

correlated. The co-efficient of determination (r2) shows that level of Family

encouragement holds responsiblefor 81.2 per cent of the variation in the level of

influencing factor to start the business.

Entrepreneurship training institutions

Entrepreneurship training institutions and factor to influence to start the business

are positively correlated.The co-efficient of determination (r2) shows that level of

Entrepreneurship training institutions holds responsiblefor 73.5 per cent of the variation

in the level of influencing factor to start the business.

189
Successful existing rural entrepreneur’s

Successful existing rural entrepreneur’sand emloyability skills are positively

correlated. The co-efficient of determination (r 2) shows that level of Successful existing

rural entrepreneur holds responsiblefor 81.1 per cent of the variation in the level of

influencing factor to start the business.

Gain social recognition

Gain social recognition and factor to influence to start the business are positively

correlated. The co-efficient of determination (r2) shows that level of Gain social

recognition holds responsiblefor 78.8per cent of the variation in the level of influencing

factor to start the business.

No good job opportunities

No good job opportunities and factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level of No good

job opportunities holds responsiblefor 85.5 per cent of the variation in the level of

influencing factor to start the business.

190
4.4. MULTIPLE REGRESSION ANALYSIS

Table 4.4.1

Determinants of factor to start the business- Multiple Regression Analysis

Regression Standard t
Variables
coefficient error Value

Age -0.0001 0.0002 0.2818

Gender 0.0003 0.0003 0.1676

Monthly Income 0.0002 0.0003 0.2649

Experience -0.0002 0.0003 0.2294

Educational Qualification 0.0002 0.0007 0.3827

Family Type 0.0008 0.0003 0.0113

Nature of the Company 0.0000 0.0002 0.4774

Social status -0.0004 0.0003 0.1045

Self-achievement -0.0000 0.0002 0.4523

Profit making money 0.0845** 0.0000 0.0000

Did not want to work for others 0.0564** 0.0000 0.0000

Want for control and freedom 0.0563** 0.0000 0.0000

To make my own decisions 0.0563** 0.0000 0.0000

Threat of losing my job 0.0704** 0.0000 0.0000

Own Interest 0.0422** 0.0000 0.0000

Cheap Raw material availability 0.0986** 0.0000 0.0000

191
Friends and relatives 0.0704** 0.0000 0.0000

Financial subsidiary for rural entrepreneurs

0.0564** 0.0000 0.0000
and other Govt support

Family encouragement 0.0845** 0.0000 0.0000

Entrepreneurship training institutions 0.0422** 0.0000 0.0000

Successful existing rural entrepreneur’s 0.0845** 0.0000 0.0000

Gain social recognition 0.0564** 0.0000 0.0000

No good job opportunities 0.1408** 0.0000 0.0000

* Significant at five per cent level ** Significant at one per cent level

Constant : 85.673

Std. Error of Estimate : 5.866

R2 : 0.188

R2 : 0.221 **

Profit making money;

The regression coefficient indicates that Profit making money are positively

influences factor to start the business.

Did not want to work for others

The regression coefficient indicates that Did not want to work for othersare

positively influences factor to start the business.

Want for control and freedom

The regression coefficient indicates that Want for control and freedom are
192
positively influences factor to start the business.

To make my own decisions

The regression coefficient indicates that To make my own decisionsand numeracy

skillare positively influences factor to start the business.

Threat of losing my job,

The regression coefficient indicates that Threat of losing my job are positively

influence factor to start the business.

Own Interest

The regression coefficient indicates that Own Interestare positively influences

factor to start the business.

Cheap Raw material availability

The regression coefficient indicates that Cheap Raw material availabilityare

positively influences factor to start the business.

Friends and relatives

The regression coefficient indicates that Friends and relativesare positively

influences factor to start the business.

Financial subsidiary for rural entrepreneurs and other Govt support

The regression coefficient indicates that financial subsidiary for rural

entrepreneurs and other Govt supportare positively influences factor to start the business.

Family encouragement;

The regression coefficient indicates that Family encouragements are positively

influences factor to start the business.

193
Entrepreneurship training institutions

The regression coefficient indicates that Entrepreneurship training institutionsare

positively influences factor to start the business.

Successful existing rural entrepreneur

The regression coefficient indicates that Successful existing rural entrepreneurare

positively influences factor to start the business.

Gain social recognition

The regression coefficient indicates that Gain social recognitionare positively

influences factor to start the business.

No good job opportunities

The regression coefficient indicates that No good job opportunities are positively

influences factor to start the business.

194
 Table: 4.4.2

The Type of products

Valid Cumulative

Frequency Percentage Percentage Percentage

Foods and Beverages 136 21.6 21.6 21.6

Construction materials
136 21.6 21.6 43.2

Health products 119 18.9 18.9 62.1

Handicrafts 125 19.8 19.8 81.9

Textile 72 11.4 11.4 93.3

Automobile 42 6.7 6.7 100.0

Total 630 100.0 100.0

Inference:

Out of 630 entrepreneurs, 136 (21.6) entrepreneurs are dealing with Construction

materials andFoods and Beveragesproducts; 125 (19.8) entrepreneurs dealing handicrafts

products; 72(11.4) entrepreneurs are dealing textiles and the remaining 42 (6.7)

entrepreneurs are dealing with automobile industries.

195
 Table: 4.4.3

Raw material availability

Raw material availability

Valid Cumulative

Frequency Percent Percent Percent

Local 190 30.2 30.2 30.2

Within the state 220 34.9 34.9 65.1

Outside the state but

169 26.8 26.8 91.9
within the country

Outside the country 51 8.1 8.1 100.0

Total 630 100.0 100.0

Inference:

One hundred ninety (30.2) entrepreneurs use the source of availability of raw

materials in local areas, 220 (34.9) availability of raw materials within the state, 169

(26.8) availability of raw materials Outside the state but within the country, 51 (8.1)

availability of raw materials Outside the country. Thus, most of the entrepreneurs use the

sources of raw materials available within the state.

196
 Table: 4.4.4

Market Your Products

Valid Cumulative

Particulars Frequency Percent Percent Percent

Local 85 13.5 13.5 13.5

Within the state 259 41.1 41.1 54.6

Outside the state but within the

145 23.0 23.0 77.6
country

Outside the country 141 22.4 22.4 100.0

Total 630 100.0 100.0

Inference:

Eighty five (13.5) market their products in local areas, 259 (41.1) market their

products within the state, 145 (23.0) market their products Outside the state but within the

country, 141 (22.4) market their products Outside the country. Thus, most of the

entrepreneurs market their products within the state

197
 Table: 4.4.5

The Target Market

Cumulative

Particulars Frequency Percent Valid Percent Percent

Yes 248 39.4 39.4 39.4

No 382 60.6 60.6 100.0

Total 630 100.0 100.0

Inference:

Two hundred and forty eight (39.4) entrepreneurs changes their target market and

the rest 382 (60.6) entrepreneurs are not changes their target market. Thus, majority of

the entrepreneurs are not changes their target market.

198
 Table: 4.4.6

Marketing Your Products

Cumulative

Particulars Frequency Percent Valid Percent Percent

Yes 383 60.8 60.8 60.8

No 247 39.2 39.2 100.2

Total 630 100.0 100.0

Inference:

Three hundred and eighty three (60.8) entrepreneurs facing difficulties marketing their

products and the rest 247 (39.2) entrepreneurs are not facing difficulties marketing their

products. Thus, majority of the entrepreneurs are facing difficulties marketing their

products.

199
 Table: 4.4.7

Problems Faced in Marketing

Cumulative

Particulars Frequency Percent Valid Percent Percent

Transportation 155 24.6 24.6 24.6

Distribution 95 15.1 15.1 39.7

Competition 380 60.3 60.3 100.0

Total 630 100.0 100.0

Inference:

One hundred and fifty five (24.6) entrepreneurs problems faced in marketing their

products in transportation,95 (24.6) entrepreneurs problems faced in marketing to

Distribution their products and the rest 380 (39.2) problems faced in marketing their

products in Competition. Thus, majority of the entrepreneurs are facing Competition is

the major problems.

200
4.5. Regression Weights:

Table: 4.5.1

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P

Experience <--- Level of Entrepreneurial Constraints -.228 .112 -2.047 .041*

Experience <--- Level of General Constraints .001 .004 .360 . ***

Experience <--- Level of Knowledge Constraints -.042 .016 -2.554 .011*

Experience <--- Level of Social Constraints .024 .007 3.433 ***

Experience <--- Level of Psychological Constraints .860 .178 4.834 ***

201
 Estimate S.E. C.R. P

Experience Level of Economic Constraints 25.83

<--- .068 .003 ***
8

***The probability of getting a critical ratio as large as 14.474 in absolute value is less

than 0.001. In other words, the variance estimate for VAR00002 is significantly different

from zero at the 0.001 level (two-tailed).

These statements are approximately correct for large samples under suitable assumptions.

Table: 4.5.2

CMIN

Model NPAR CMIN DF P CMIN/DF

Default model 190 .000 0 .000 .000

Saturated model 190 .000 0

Independence model 19 11427.198 171 .000 66.826

202
 Table: 4.5.3

Baseline Comparisons

NFI RFI IFI TLI

Model CFI
Delta1 rho1 Delta2 rho2

Default model 1.000 1.000 1.000 1.000

Saturated model 1.000 1.000 1.000

Independence model .000 .000 .000 .000 .000

Table: 4.5.4

RMR, GFI

Model RMR GFI AGFI PGFI

Default model .000 1.000 1.000

Saturated model .000 1.000

Independence model 525456.168 .341 .268 .307

Table: 4.5.5

RMSEA

203
 Model RMSEA LO 90 HI 90 PCLOSE

Independence model .0396 .0390 .0403 .000

Table: 4.5.6

AMOS-Summary Statistics for Model Fit

Model fit index Recommended values Observed values

Chi-square/degrees of freedom <=3.00 0.000

GFI >=0.90 1.000

AGFI >=0.80 1.000

CFI >=0.90 1.000

RMSEA <=0.08 0.0396

TLI >=0.95 1.000

CFI- comparative fit index, GFI- Good Fit Index, AGFI-Adjusted Goodness of Fit,

RMSEA-Root Mean Square Error of Approximation, SRMR-Standardized Root Mean

Residual, NPAR-Number of Parameters, LOC-Locus of Control, EFA-Exploratory

Factor Analysis, CFA-Confirmatory Factor Analysis, AFI-Absolute Fit Indices, IFI-

Incremental Fit Indices, NFI-Normed Fit Index, PFI-Parsimony Fit Indices, RFI-

Reporting Fit Indices and TLI-Tucker-Lewis Index.

*Source for model fit index and recommended values “Application of structural equation

modelling in educational research and practice” by MyintSweKhine (Ed.).

204
Results of SEM analysis indicate that the model offers a good fit to the data. Six fit

indices which are commonly used in SEM to test the model fit are Chi-square/degrees of

freedom, GFI, AGFI, CFI, RMSEA, TLI are summarized in the table 6.

Chi-square/degrees of freedom is less than or equal to 3 (0.000), GFI, CFI and AGFI are

greater than or equal to 0.90 and 0.80 (1.000, 1.000, 1.000), RMSEA is less than or equal

to 0.08 (0.0396) and TLI is greater than or equal to 0.095 (1.000) which clearly shows

that all goodness of fit statistics is in the acceptable ranges.

205
 CHAPTER - V

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

 Constraints of Rural Entrepreneurs

 In the second factor, “Social Constraints” is found to be significant. Factor

one and factor two contributes 30.158 per cent and 18.061 respectively

towards entrepreneur’s constraints. The total cumulative percentage of

entrepreneurial constraint’s explained by these two factors accounts for

48.218 per cent.

 The Four hundred and Sixty five (73.8) entrepreneurs are Male and the

rest

165 (26.2) entrepreneurs are Female. Thus, majority of the entrepreneurs

are Male.

 Out of 630 entrepreneurs, 42 (6.7) entrepreneurs are within the age of up to

30 years; 287 (45.6) entrepreneurs age ranges from 31 to 40 years; 252

(40) entrepreneurs age ranges between 41 and 50 years and the remaining

49 (7.8) entrepreneurs are above the age of 50 years. Thus, most of the

entrepreneur’s age ranges from 31 to 40 years.

206
 Fifty seven (9.0) entrepreneurs are with uneducated; 211 (33.5)

entrepreneurs are with school level; 176 (27.9) entrepreneurs are with

UG /PG educational qualification and the rest 186 (29.5) entrepreneurs are

with Professional educational qualification. Thus, most of the entrepreneurs

are with School level educational qualification.

 Seventy six (12.1) entrepreneurs have government employees previous

experience, 87 (13.8) entrepreneurs previous experience Agricultural

Back ground, 147 (23.3) entrepreneurs previous experience belongs to

private industry and the rest 130 (20.6) entrepreneurs previous experience

others. Thus, most of the entrepreneur’s previous experience belongs to

private industry.

 One hundred and seventy nine (28.4) entrepreneurs parents occupation

belongs to governmental organization, 280 (44.4) entrepreneurs parents

occupation belongs to Agricultures, 171 (271) entrepreneurs parents

occupation belongs to Private industry. Thus, most of the entrepreneur’s

parent’s occupation belongs to Agricultures.

 Four hundred and thirty seven (69.4) entrepreneurs are married and the

rest

193 (30.6) entrepreneurs are unmarried. Thus, majority of the entrepreneurs

are married.

 Two hundred and ninety eight (47.3) entrepreneurs belong to nuclear

family, 271 (43.0) entrepreneurs belong to joint family and the remaining

207
 61 (9.7) entrepreneurs belong to extended family. Thus, majority of the

entrepreneurs belong to nuclear family.

 One hundred and thirty one (20.8) entrepreneurs have up to ten years of

establishment of their business, 318 (50.5) entrepreneurs establishment

of their business ranges from 11 to 15 years, and the rest 181 (28.7)

entrepreneurs establishment of their business ranges above 15 years. Thus,

most of the entrepreneur’s establishment of their business ranges from 11 to

15 years.

 Eighty Two (13.0) entrepreneurs average monthly income ranges Below

15000, 160 (25.4) entrepreneurs average monthly income ranges from

15001 to 30000, 140 (22.2) entrepreneurs average monthly income ranges

30001 to 50000, 172 (27.3) entrepreneurs average monthly income

ranges between 50001 to 100000 and the rest 76 (12.1) entrepreneurs

average monthly income ranges above 100000. Thus, most of the

entrepreneur’s average monthly income ranges from 50001 to 100000.

 Seventy nine (12.5) entrepreneurs have up to five years of experience, 52

(8.3) entrepreneurs experience ranges from 6 to 10 years, 318 (50.5)

entrepreneurs experience ranges between 11 and 15 years and the rest

181 (28.7) entrepreneurs experience ranges above 15 years. Thus, most of

the entrepreneurs experience ranges from 11 to 15 years.

 One hundred and twenty eight (20.3) entrepreneurs are Manufacturing

industries, 393 (62.4) entrepreneurs run Retailing business, and 109

208
 (17.3) entrepreneurs run a Service industries. Thus, most of the

entrepreneurs belong to retailing business.

 One hundred and three (16.3) entrepreneurs are sole traders, 324 (51.4)

entrepreneurs run partnership form of business, 133 (21.1)

entrepreneurs run family business and 70 (11.1) entrepreneurs run limited

company form of business. Thus, most of the entrepreneurs run partnership

form of business.

 Three hundred and eighty five (61.1) entrepreneurs are first generation

entrepreneur and the rest 243 (38.9) entrepreneurs are not first generation

entrepreneur. Thus, majority of the entrepreneurs are first generation

entrepreneur.

 Garrett Ranking test

 From the Garrett Ranking test, it is found that majority of the

entrepreneur major problems faced by a running business from their

Financial, Marketing, Political, Raw materials etc.,

 From the analysis it is inferred that majority of the entrepreneurs are of

opinion that they have No time for training / upgrading skills for a new

technologies, Liquidity and other financial problems, Gaining the

acceptance/respect of people.

 From the analysis it is inferred that majority of the entrepreneurs

important motivating factors to take up Entrepreneurship they need To

209
 full the ambition of myself / parents/ husband, To take up family

business / traditional job, Due to employment.

 Friedman Rank Test

 It is ascertained that majority of the entrepreneur influencing factors to

start a business in that Social status followed by Gain social recognition,

Financial subsidiary for rural entrepreneurs and other Govt support,

Entrepreneurship training institutions and the like.

 It is ascertained that problems face by the entrepreneur in that A

question of self-confidence (believing in your abilities)followed by

Identifying a suitable product, Getting registration, Identifying a

suitable location and the like.

 It is ascertained that important factors to successful entrepreneur in their

Self-confidence followed by Educational Qualification, Human

relations, Authoritative and the like.

 From the Friedman rank test, it is ascertained that majority of the

entrepreneurs past and present entrepreneurial performance in that

Favourable Environment followed by Support from banking finance,

Employees support, Sourcing of Finance and the like.

 Chi-Square Test

210
o High level of Entrepreneurial Constraints is observed among up to 31 – 40

years age (16.40). Low level of Entrepreneurial Constraints is observed

among age group Above 50 Years (20.40). The calculated Chi square value

is greater than table value (3.946) and the result is significant at 5% level.

Hence, the null hypothesis is accepted. There is no association between Age

and Level of Entrepreneurial Constraints.

o High level of Entrepreneurial Constraints is observed among UG/PG

(18.20). Low level of Entrepreneurial Constraints is observed among

School level of educational qualification (19.90). The calculated Chi square

value is greater than table value (4.685) and the result is significant at 5%

level. Hence, the null hypothesis is accepted. There is no association

between Educational Qualification and Level of Entrepreneurial Constraints

o High level of Entrepreneurial Constraints is observed Monthly income

among Below 15000 (15.90). Low level of Entrepreneurial Constraints is

observed Monthly income among 30001 - 50000 (22.90). The calculated

Chi square value is greater than table value (6.791) and the result is

significant at 5% level. Hence, the null hypothesis is accepted. There is no

association between Monthly Income and Level of Entrepreneurial

Constraints.

o High level of Entrepreneurial Constraints is observed in experienced at 6 –

10 years (25.00). Low level of Entrepreneurial Constraints is observed in

experience at(23.20). The calculated Chi square value is less than table
211
 value (13.379) and the result is significant at 5% level. Hence, the null

hypothesis is rejected. There is an association between Experience and

Level of Entrepreneurial Constraints.

o High level of General Constraints is observed in age level at 31 – 40 years

(11.8). Low level of General Constraints is observed in age level at above

50 years (59.20). The calculated Chi square value is less than table value

(13.933) and the result is significant at 5% level. Hence, the null hypothesis

is rejected. There is an association between Age and Level of General

Constraints.

o High level of General Constraints is observed among School level (19.90).

Low level of General Constraints is observed among UG / PG level of

educational qualification (17.00). The calculated Chi square value is greater

than table value (2.586) and the result is significant at 5% level. Hence, the

null hypothesis is accepted. There is no association between Educational

Qualification and Level of General Constraints.

o High level of General Constraints is observed Monthly income among

50001 - 100000 (20.30). Low level of General Constraints is observed

Monthly income Above 100000 (21.10). The calculated Chi square value is

greater than table value (4.806) and the result is significant at 5% level.

Hence, the null hypothesis is accepted.

o There is no association between Monthly Income and Level of General

Constraints.
212
o High level of General Constraints is observed in experienced at Above15

years (22.10). Low level of General Constraints is observed in experience at

Above 15 years(18.80). The calculated Chi square value is greater than

table value (11.625) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Experience and

Level of General Constraints.

o High level of General Constraints is observed in experienced at Above15

years (22.10). Low level of General Constraints is observed in experience at

Above 15 years(18.80). The calculated Chi square value is greater than

table value (11.625) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Experience and

Level of General Constraints.

o High level of Knowledge Constraints is observed in age level at Above 50

years (32.7). Low level of Knowledge Constraints is observed in age level

at 41 - 50 years (23.00). The calculated Chi square value is less than table

value (67.072) and the result is significant at 5% level. Hence, the null

hypothesis is rejected. There is an association between Age and Level of

Knowledge Constraints.

o High level of Knowledge Constraints is observed Monthly income among

Below 15000 (35.40). Low level of General Constraints is observed

Monthly income among 30001 - 50000(22.90). The calculated Chi square

value is greater than table value (5.013) and the result is significant at 5%
213
 level. Hence, the null hypothesis is accepted. There is no association

between Monthly Income and Level of Knowledge Constraints.

o High level of Knowledge Constraints is observed in experienced in 6 – 10

years (32.70). Low level of Knowledge Constraints is observed in

experience at Below 5 years (27.80). The calculated Chi square value is

greater than table value (6.081) and the result is significant at 5% level.

Hence, the null hypothesis is accepted. There is no association between

Experience and Level of Knowledge Constraints.

o High level of Social Constraints is observed in age level at 31 - 40 years

(11.8). Low level of Social Constraints is observed in age level at above 50

years (59.20). The calculated Chi square value is greater than table value

(7.762) and the result is significant at 5% level. Hence, the null hypothesis

is accepted. There is no association between Age and Level of Social

Constraints.

o High level of Social Constraints is observed among UG / PG (26.10). Low

level of Social Constraints is observed among uneducated (56.10). The

calculated Chi square value is less than table value (92.658) and the result

is significant at 5% level. Hence, the null hypothesis is rejected. There is an

association between Educational Qualification and Level of Social

Constraints.

o High level of Social Constraints is observed Monthly income among Below

15000 (35.40). Low level of Social Constraints is observed Monthly

214
 income among 30001 - 50000 (22.90). The calculated Chi square value is

less than table value (67.072) and the result is significant at 5% level.

Hence, the null hypothesis is rejected. There is an association between

Monthly Income and Level of Social Constraints.

o High level of Social Constraints is observed in experienced in 6 – 10 years

(11.50). Low level of Social Constraints is observed in experience at Below

5 years (57.00). The calculated Chi square value is greater than table value

(6.081) and the result is significant at 5% level. Hence, the null hypothesis

is accepted. There is no association between Experience and Level of

Social Constraints.

o High level of Psychological Constraints is observed in age level at Above

50 years (71.40). Low level of Psychological Constraints is observed in age

level at 41 - 50 years (19.00). The calculated Chi square value is greater

than table value (3.278) and the result is significant at 5% level. Hence, the

null hypothesis is accepted. There is no association between Age and Level

of Psychological Constraints.

o High level of Psychological Constraints is observed among Professional

(67.70). Low level of Psychological Constraints is observed among School

level (20.40). The calculated Chi square value is greater than table value

(5.417) and the result is significant at 5% level. Hence, the null hypothesis

is accepted. There is no association between Educational Qualification and

Level of Psychological Constraints.

215
o High level of Psychological Constraints is observed Monthly income

among Below 15000 (78.00). Low level of Psychological Constraints is

observed Monthly income above 100000 (27.60). The calculated Chi square

value is greater than table value (12.868) and the result is significant at 5%

level. Hence, the null hypothesis is accepted. There is no association

between Monthly Income and Level of Psychological Constraints.

o High level of Economic Constraints is observed in age level at up to 30

years (35.70). Low level of Economic Constraints is observed in age level

at 41 - 50 years (19.10). The calculated Chi square value is greater than

table value (2.528) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Age and Level of

Economic Constraints.

o High level of Economic Constraints is observed among UG / PG and

Professional (30.10). Low level of Economic Constraints is observed

among UG / PG (21.00). The calculated Chi square value is greater than

table value (5.131) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Educational

Qualification and Level of Economic Constraints.

o High level of Economic Constraints is observed Monthly income among

Below 15000 (34.10). Low level of Economic Constraints is observed

Monthly income level at 15001 – 30000(27.60). The calculated Chi square

value is greater than table value (2.361) and the result is significant at 5%
216
 level. Hence, the null hypothesis is accepted. There is no association

between Monthly Income and Level of Economic Constraints.

o High level of Economic Constraints is observed in experienced in 11-15

years (32.10). Low level of Economic Constraints is observed in experience

at 6 - 10 years (26.90). The calculated Chi square value is greater than table

value (7.930) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Experience and

Level of Economic Constraints.

o High level of Psychological Constraints is observed in experienced in

Above 15 years (69.60). Low level of Psychological Constraints is

observed in experience at 11 -15 years (19.50). The calculated Chi square

value is greater than table value (12.347) and the result is significant at 5%

level. Hence, the null hypothesis is accepted. There is no association

between Experience and Level of Psychological Constraints.

o High level of curtail the success of entrepreneurship is observed in

experienced at 6 – 10 years (21.20). Low level of curtail the success of

entrepreneurship is observed in experience at below 5 years (25.30). The

calculated Chi square value is less than table value (14.437) and the result

is significant at 5% level. Hence, the null hypothesis is rejected. There is an

association between Experience and Level of curtail the success of

entrepreneurship.

217
 o High level of curtail the success of entrepreneurship is observed in age

level at 41 – 50 years (22.6). Low level of curtail the success of

entrepreneurship is observed in age level at up to 30 years (21.40). The

calculated Chi square value is greater than table value (11.913) and the

result is significant at 5% level. Hence, the null hypothesis is accepted.

There is no association between Age and Level of General Constraints.

o High level of curtail the success of entrepreneurships observed among UG /

PG (17.60). Low level of curtail the success of entrepreneurships observed

among UG / PG (21.00). The calculated Chi square value is greater than

table value (3.020) and the result is significant at 5% level. Hence, the null

hypothesis is accepted. There is no association between Educational

Qualification and Level of curtail the success of entrepreneurship

o High level of curtail the success of entrepreneurship is observed Monthly

income above 100000 (23.70). Low level of curtail the success of

entrepreneurship is observed Monthly income Above 100000 (19.70). The

calculated Chi square value is less than table value (13.206) and the result

is significant at 5% level. Hence, the null hypothesis is rejected. There is an

association between Monthly Income and Level of curtail the success of

entrepreneurship.

 Two hundred and eleven (33.5) entrepreneurs are happy with the assistance given

by the government and the rest 419 (66.5) entrepreneurs are not happy with the

218
 assistance given by the government. Thus, majority of the entrepreneurs are

not happy with the assistance given by the government

 CORRELATION ANALYSIS

 Age

o Age and emloyability skills are positively correlated. Entrepreneur who are

in the age group between 31 to 40 years have high level associated with

influencing factor to start the business. The co-efficient of determination

(r2) shows that age group holds responsible for 0.9per cent of the variation

in the level ofStart the business.

 Monthly Income

o Monthly Incomeand Start the business are positively correlated.The high

level of influencing factor to start the business is observed among 50001 to

100000. The co-efficient of determination (r2) shows that Monthly Income

holds responsible for 5per cent of the variation in the level ofinfluencing

factor to start the business.

 Previous Experience

o Previous Experience and influencing factor to start the business are

positively correlated. Entrepreneurs who have private industry experience

high level of start the business.The co-efficient of determination (r2) shows

that Previous Experience responsiblefor 5per cent of the variation in the

level of influencing factor tostart the business.

 Nature of the company

219
 o Nature of the company and influencing factor to start the business are

positively correlated. The co-efficient of determination (r 2) shows that

Nature of the company responsible for 1per cent of the variation in the level

of influencing factor tostart the business.

 Profit making money

o Profit making money and influencing factor to start the business are

positively correlated. The co-efficient of determination (r 2) shows that

Profit making money responsible for 1per cent of the variation in the level

of influencing factor tostart the business.

 Did not want to work for others

o Did not want to work for others and influencing factor to start the business

are positively correlated. The co-efficient of determination (r 2) shows that

Did not want to work for others responsible for 1per cent of the variation in

the level of influencing factor tostart the business.

 Want for control and freedom

o Did not want to work for others and influencing factor to start the business

are positively correlated. The co-efficient of determination (r 2) shows that

Did not want to work for others responsible for 1per cent of the variation in

the level of influencing factor tostart the business.

 To make my own decisions

o To make my own decisions and influencing factor to start the business are

220
 positively correlated. The co-efficient of determination (r2) shows that level

of To make my own decisions holds responsiblefor 61.4 per cent of the

variation in the level of influencing factor to start the business.

 Threat of losing my job

o Threats of losing my job and factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level

of Threat of losing my job holds responsiblefor 79.5 per cent of the

variation in the level of influencing factor to start the business.

 Own Interest

o Own Interest and factor to influence to start the business are positively

correlated. The co-efficient of determination (r2) shows that level of Own

Interest holds responsiblefor 71 per cent of the variation in the level of

influencing factor to start the business.

 Cheap Raw material availability

o Cheap Raw material availability and factor to influence to start the business

are positively correlated. The co-efficient of determination (r2) shows that

level Cheap Raw material availability holds responsiblefor 81.2 per cent of

the variation in the level of influencing factor to start the business.

 Friends and relatives

o Friends and relativesand factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level

of and factor to influence to start the business holds responsiblefor 80 per

221
 cent of the variation in the level of influencing factor to start the business.

 Financial subsidiary for rural entrepreneurs and other Govt support

o Financial subsidiary for rural entrepreneurs and other Govt supportand

factor to influence to start the business are positively correlated. The co-

efficient of determination (r2) shows that level of Financial subsidiary for

rural entrepreneurs and other Govt support holds responsiblefor 78 per cent

of the variation in the level of influencing factor to start the business.

 Family encouragement

o Family encouragementand factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level

of Family encouragement holds responsiblefor 81.2 per cent of the variation

in the level of influencing factor to start the business.

 Entrepreneurship training institutions

o Entrepreneurship training institutions and factor to influence to start the

business are positively correlated.The co-efficient of determination (r2)

shows that level of Entrepreneurship training institutions holds

responsiblefor 73.5 per cent of the variation in the level of influencing

factor to start the business.

 Successful existing rural entrepreneur’s

o Successful existing rural entrepreneur’sand emloyability skills are

positively correlated. The co-efficient of determination (r 2) shows that level

of Successful existing rural entrepreneur holds responsiblefor 81.1 per cent

222
 of the variation in the level of influencing factor to start the business.

 Gain social recognition

o Gain social recognition and factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level

of Gain social recognition holds responsiblefor 78.8per cent of the variation

in the level of influencing factor to start the business.

 No good job opportunities

o No good job opportunities and factor to influence to start the business are

positively correlated. The co-efficient of determination (r2) shows that level

of No good job opportunities holds responsiblefor 85.5 per cent of the

variation in the level of influencing factor to start the business.

 MULTIPLE REGRESSION ANALYSIS

 Profit making money;

o The regression coefficient indicates that Profit making money are positively

influences factor to start the business.

 Did not want to work for others

o The regression coefficient indicates that Did not want to work for othersare

positively influences factor to start the business.

 Want for control and freedom

o The regression coefficient indicates that Want for control and freedom are

positively influences factor to start the business.

223
 To make my own decisions

o The regression coefficient indicates that To make my own decisionsand

numeracy skillare positively influences factor to start the business.

 Threat of losing my job,

o The regression coefficient indicates that Threat of losing my job are

positively influence factor to start the business.

 Own Interest

o The regression coefficient indicates that Own Interestare positively

influences factor to start the business.

 Cheap Raw material availability

o The regression coefficient indicates that Cheap Raw material availabilityare

positively influences factor to start the business.

 Friends and relatives

o The regression coefficient indicates that Friends and relativesare positively

influences factor to start the business.

 Financial subsidiary for rural entrepreneurs and other Govt support

o The regression coefficient indicates that financial subsidiary for rural

entrepreneurs and other Govt supportare positively influences factor to start

the business.

 Family encouragement;

224
 o The regression coefficient indicates that Family encouragements are

positively influences factor to start the business.

 Entrepreneurship training institutions

o The regression coefficient indicates that Entrepreneurship training

institutionsare positively influences factor to start the business.

 Successful existing rural entrepreneur

o The regression coefficient indicates that Successful existing rural

entrepreneurare positively influences factor to start the business.

 Gain social recognition

o The regression coefficient indicates that Gain social recognitionare

positively influences factor to start the business.

 No good job opportunities

o The regression coefficient indicates that No good job opportunities are

positively influences factor to start the business.

 REGRESSION WEIGHTS:

 ***The probability of getting a critical ratio as large as 14.474 in absolute value is

less than 0.001. In other words, the variance estimate for VAR00002 is

significantly different from zero at the 0.001 level (two-tailed).

 These statements are approximately correct for large samples under suitable

assumptions.

225
 o CFI- comparative fit index, GFI- Good Fit Index, AGFI-Adjusted

Goodness of Fit, RMSEA-Root Mean Square Error of Approximation,

SRMR-Standardized Root Mean Residual, NPAR-Number of Parameters,

LOC-Locus of Control, EFA-Exploratory Factor Analysis, CFA-

Confirmatory Factor Analysis, AFI-Absolute Fit Indices, IFI-Incremental

Fit Indices, NFI-Normed Fit Index, PFI-Parsimony Fit Indices, RFI-

Reporting Fit Indices and TLI-Tucker-Lewis Index.

 *Source for model fit index and recommended values “Application of structural

equation modelling in educational research and practice” by MyintSweKhine

(Ed.).

 SEM analysis

 SEM analyses indicate that the model offers a good fit to the data. Six fit indices

which are commonly used in SEM to test the model fit are Chi-square/degrees of

freedom, GFI, AGFI, CFI, RMSEA, TLI are summarized in the table 6. Chi-

square/degrees of freedom is less than or equal to 3 (0.000), GFI, CFI and AGFI

are greater than or equal to 0.90 and 0.80 (1.000, 1.000, 1.000), RMSEA is less

than or equal to 0.08 (0.0396) and TLI is greater than or equal to 0.095 (1.000)

which clearly shows that all goodness of fit statistics is in the acceptable ranges.

5.2 SUGGESTIONS

226
 The present research is definitely not the first attempt in the area of entrepreneurs

nor is it going to be the last. Keeping this in view some indications that could help the

future research as may be undertaken.

 Entrepreneurs could be trained and educated in order to make themselves

successful with regard to access to capital, marketing of their products, creation of

assets, selecting the form of enterprise and the nature of industry.

 It is always accepted the major problem of entrepreneurs is to combine family and

work life and financial problems. Therefore, societal setup that could encourage

them to successfully run both family and work can be targeted.

 Lack of finance is identified as one of the major problems of entrepreneurs.

Hence, government should provide financial assistance to the entrepreneurs.

 Lack of self confidence is another major problem of entrepreneurs as revealed in

the study. Therefore, government and other agencies can take up the task of

providing personality development courses to boost up self confidence among to

entrepreneurs.

 Yet another major problem of entrepreneurs was lack of access to information

technology. In order to be successful in business not only nationally but also

internationally they need to be educated on information technology.

 Economic constraints implied lack of investment for promoting the business and

paucity of working capital for successful running of business. It is the duty of the

Government to offer necessary financial assistance in time for entrepreneurs for

227
 successfully running their business units. Further, in order to avoid financial

problems, entrepreneurs have to learn the procedures to be followed for availing

loan at the earliest from the banks and financial institutions. Moreover, it is

advised to rural entrepreneurs not to avail loan from money lenders by paying

exorbitant rate of interest.

 Reduce their social constraints, entrepreneurs have to inculcate the habit of

moving along with their workers, improve ability to extract work from team

members, enhance their planning and decision making ability, and learn to

maintain proper books of accounts and management of company assets.

 Raise their knowledge level; entrepreneurs have to improve their writing skills,

oral communication skills, interpersonal skills by undergoing soft skill training

programmes organized by various private educational training centres.

 Reduce their entrepreneurial constraints, entrepreneurs must train themselves to

mingle with co-workers, improve their thinking ability, improve their listening

ability or calibre and constantly keep them updated on latest development that

took place on their business.

 Reduce the entrepreneurial constraints the entrepreneurs have to understand their

risk taking capacity, improve their self-confidence by attending more number of

leadership oriented training programmes and should improve their analytical

ability by undergoing more number of training programmes organized by various

academic institutions.

228
 To improve their communication skills entrepreneurs have to undergo training

programme on spoken English. Further, training programmes organized by

Government apart from inculcating the basic principles to be followed before

promoting a business, type of business to be promoted, procedures to be followed

for availing loan may train entrepreneurs on developing communication skills,

which is said to be vital element for their success.

 To enrich their personal entrepreneurial skills like self-control, innovative thinking

entrepreneurs may maintain good rapport with senior entrepreneurs in their

locality and seek their assistance on how to improve their personal entrepreneurial

skills. Further, entrepreneurs have to undergo various soft skill training

programmes organized by reputed educational institutions and private training

centres.

 To improve the business skills like planning, improving decision making capacity,

to maintain cordial employee and employer relationships, to improve marketing

knowledge entrepreneurs may make use of academician’s assistance or by

attending management training programmes organized by well-renowned

educational institutions.

 To improve the entrepreneur’s technical skills, District Industries Centres may

inculcate training programmes on communication skills, interpersonal skills,

listening skills, team management skills among rural entrepreneurs.

5.3 CONCLUSION

229
 Today major changes are occurring in the way of the entrepreneurs who prepare

themselves for starting their own venture. More formal training, greater economic

opportunities and changing social attitudes are all influencing the entrepreneurial

environment.

The successful entrepreneurs became the role models to others. They can share the

knowledge with others and can guide other women entrepreneurs those who are starting

new enterprises. They can become big industrialists and take part in global economy. The

social inequalities can be removed by keeping a good relationship with neighbours and

the society. By this they can bring the economic prosperity and form the socialistic

pattern of society.

The entrepreneur of the twenty - first century is quite different from her

counterpart of one or two decades ago. In this century, women are becoming a formidable

force in the world of entrepreneurship. The 1980s was a decade of gaining lost ground,

the 2000s was a decade of full equality in terms of financing, funding, representation and

market presence; the new millennium is seeing women entrepreneurs solidifying their

position and beginning to dominate certain industries and business. Many people’s have

long believed that their place is at the head of a company. Now in the twenty - first

century this belief has become a reality for thousands of them.

An entrepreneur has to perform various functions and discharge diversified

responsibilities for attaining industrial development, and consequently economic

development. The major functions of an entrepreneur are innovating, risk taking,

230
planning, organization, and management and he has to discharge these functions for

attaining the industrial efficiency while managing the enterprise, and this in turn

facilitates the promotion of entrepreneurial efficiency and that of the entrepreneurial

capabilities and potential. Entrepreneurial development is influenced by the economic

and non-economic factors such as the availability of raw material, quality of labour,

technology, market potentiality, capital, profit and infra-structure, and on the ambitions

and aspirations of the entrepreneurs to undertake the industrial activities that are

economically sound, and the facilitating factors like the skills acquired,

technical/professional education, experience and self-confidence, and that of the social

factors such as mobility and values ascribed by the society and the urge to attain

economic power and social status. The socio-economic and cultural conditions and

background of the entrepreneurs also influence the entrepreneurial development and the

quality of entrepreneurship.

Though the entrepreneurs are having a favourable attitude towards business, there is

some reluctance in to take up business. Entrepreneurs capable of achieving excellence in

any field they pursue, more so in entrepreneurship. All they need is proper reinforcement

from the family members, government and society at large so that they can excel as

successful entrepreneurs and significantly contribute in nation building. The District

Industries Centre and other Entrepreneurial Training Institutes should take necessary

steps to see that their programmes reach.

5.4 SCOPE FOR FURTHER RESEARCH

231
 The present study has been carried out to A study on problems of Entrepreneurs at

Dharmapuri district and skill sets required by entrepreneurs for redressing the issues. Study

of similar nature may be carried out on ascertaining the problems faced by first

generation entrepreneurs and to steps to be initiated on resolving their issues. Recently

Central Government has introduced Goods and Services Tax Bill. Thus an attempt has

been made to ascertain the problems faced by MSME entrepreneurs on filing the returns

and to ascertain their expectations from Government on resolving the issues involved in

filing of returns. Both Central and State Governments have offered numerous training

programmes for the promotion and development of entrepreneurs. Hence, a study may be

carried out among entrepreneurs to ascertain their perception towards effectiveness of

training programmes on promotion of entrepreneurship. Each and every entrepreneur

follows a unique technique for their success. Thus, an attempt may be made by budding

researchers on ascertaining unique selling mechanisms followed by successful

entrepreneurs of Tamilnadu. Each and every entrepreneur contributes to a certain extent

for the development of society, where he/she belongs to. Hence, a study may be carried

out to ascertain the factors and motives of social entrepreneurs. Few entrepreneurs prefer

to continue their family business. Hence, a study may be carried out to ascertain the

reason beneath the continuance of family business and entrepreneurial traits that are

learned from the family business may be ascertained.

232