CHAPTER - I1

Literature Review And Kesearc

CHAPTER I1

Literature Review And Research Methodology

I n this chapter, an attempt i s made to review some o f the

important studies i n India pertaining t o sources, characteristics

and development of entrepreneurs. Further, the objectives o f the

research and methodology adopted are stated.

Sources of Entrepreneurship:

According t o ~ a r n b ' the dominant presence of Marwaris,

Parsis, and Gujarati traders in the entrepreneurial field is due to

factors l ike control over managing agencies, community solidarity,

business connections and marriage networks.

The status accorded to business i n Gujarat has been

identified by Mr. pandit2 to be the chief reason for entrepreneurial

growth in the region.

~ c h a r ~ a ~ criticized this observation on the basis tha t

importance of the factors like geographic and political

environment, religion, economic activities, etc., have not been

considered but treated to be mere consequences.

5hoji4 drew attention to the business alliances and the

consequent group solidarity as influencing factors of growing

entrepreneurship activity amongst the members of Natukottai

Chettiars.

ling^ attributes the lack of entrepreneurship i n Bengalis to

the low esteem accorded by them to business occupations and the

discriminating policies of the British i n the lgth century.

~ u h a ~ considered exigencies of the situation t o be the reason

for the success of Parsis rather than their minori ty position o r work

ethics.

Conducive climate has been identif ied by Dwijendra rip at hi'

to be a crucial factor for the development of entrepreneurship. He

enumerated various factors, which inhi b i t such development viz. ;

lack of political unity, dominance of self-containing regional

markets etc.

Milton singer8 explained the effect of past experience,

education, access to capital equipment etc., as determinants of

entrepreneurial growth in India.

According to ~ggarwal' the cultural sub patterns of

aspiration have to be taken into account while studying the

motivation for achievement.

According to V. R. Gaikwad and R. N. ~r ipathy" bold,

dashing and pragmatic personality, managerial competency, high

motivation, dominate socio-economic power enjoyed by the family

and contacts at higher social and Government level lead to

entrepreneurial development.

James ~erna" maintained that changes in social structure as

a result of education, and not profit motives as compelled young

entrepreneurs from trading community to change form traditional

occupation and remain independent from families.

R.A. sharma12 noticed two streams in entrepreneurial

growth. In the familiar spheres of the entrepreneurial growth, the

entrepreneurship was dispersed among various communities and

in other spheres it was thinly spread among socially well-known

communities. Strong desire to do something independent in life,

technical knowledge and/or manufacturing experience, financial

assistance from institutional sources, business experience in the

same or related lines, accommodation in the industrial estates and

heavy demand are the factors that induced the new and small

entrepreneurial class. The emerging new entrepreneurial class

was more open than old.

As V. ~ o u i s ' ~ put it, earlier jobs in a similar unit prepared

individuals for independent venture.

A .P. ~ p a d h a y a ~ a ' ~ f m d that success of entreprenellrs was

due to incentives offered by development agencies, family

upbringing from particular c and craff,. providing agention t o

financial function and formal education.

A study conducted i n Hyderabad and Secunderabad by

~ . ~ . ~ h r i s t o p h e r ' ~ revealed that characteristics associated w i th

entrepreneurship were growth, formal education, urban

background, and experience in industry, ambition and willingness

"c take risk.

Manohar ~ e s h p a n d e ' ~ has observed occupational mobi l i ty

away from primary traditional occupations in a study of

entrepreneurship in Telengana region of Andhra Pradesh. Social

factors l ike caste, family occupation, and father's occupational

status were found to be important to gain entry into industry.

A study of 54 manufacturing units was conducted by

~a fz ige r " in the Visakpatnam city of Andhra Pradesh . Among

other things he found that the economic status of t he father was

closely related to entrepreneurial success.

V. Lakshmana ~ a o " studied fifty-one entrepreneurs in t w o

coastal: districts of Andhra Pradesha He found that a major i ty of t h e

entrepreneurs were natives and belonged t o upper castes having

previous experience in the same field. However, their level of

education and economic status were low.

B . E . V . V . N . M U ~ Z ~ ~ ' ~ studied the socio-economic profiles,

ambitions, influencing factors of entrepreneurs in two selected

towns of Andhra Pradesh, and observed the loosening of the hold

of caste on occupations. AS a result, enterprising farmers and

artisans were turning to occupations other than caste -

occupations. The leading ambitions of the entrepreneurs are

securing self-employment, fulfilling self/parent's/wifefs desire. The

compelling reasons of entrepreneurs are to make use of technical,

professional and creative skills. The facilitating factors are

encouragement by friends/relatives/family members, contacts with

business people, and success stories of entrepreneurs, previous

experience, and property inherited/acquired.

N. P. Singh and Rita senguptaZ0 in their survey of 45

potential women entrepreneurs observed that (I) married women

were more attracted towards entrepreneurship due to getting

male help and support; (2) the need for achievement was

moderate; and (3) majori ty of them were from middle-income

group.

~ . ~ . s i n g h ~ ' suggested a change in t he accepted

definition of entrepreneurship wi th i ts focus on r isk taking as far

as women are concerned. The authors found tha t women enter

business for different reasons, bu t predominantly t o keep

themselves busy. Nevertheless, i t is observed tha t major i ty of

them come from service families or married t o persons i n

business.

Ashis ~ u p t a ~ ~ studied Indian entrepreneurial culture by

interviewing more than ninety prominent Indian business owners,

owner - managers and managers of whom some were f i rst and

others second or third generation, some trained in

business and engineering schools, while a few had no formal

training. His contention was that it was far f rom certain tha t

cultural and religious influences give rise to an aspect of

entrepreneurial behaviour and what is certain is t he diversity of

back grounds, motives and strategies tha t run through the nature

of entrepreneurship.

Raymond Lee owens and Ashis PJandyz3, undertook a survey

of entrepreneurs and non-entrepreneurs belonging to Mahisyan

upper caste during 1967-68 in Howrah and concluded as follows:

( a ) Small scale frrms are backwardly linked to well

developed large - scale industries,

(b) Industrialization is characterized by a blend of

modern and tradit~on ways of doing things,

(c) Secondary industrialization opens UP

entrepreneurship to groups other than the traditional

elite's who have sources of capital,

(d) When formerly low-placed groups are involved in

secondary industrialization, a measure of social

equ~ty would be achteved,

(e) Psychological characteristics associated with entry and

success in business vary with the nature of rewards,

antecedent cultures and history of entering groups,

( f ) Entry into enterprise requires one set of skills, motives

and social back ground, while entrepreneurial

competence requlres another set.

R. M . ~ . ~ a w a h a r ~ ~ studied n ine Science and Technology

EDPS conducted by t he Science Park and concluded: (I) Higher

the educational qualification lesser me ~ ~ s s i b i l i t y of taking up

entrepreneurial career; (2) Persons in the age group of 25 and less

showed highest success rate; (3) 80 Percent of the units were

below the investment level of Rs. 1 mill ion and; (4) 60 percent of

the units were engaged in consumer goods production.

~ a n n a l a l ~ ~ studied a sample of industrial estates i n Andhra

Pradesh, and concluded: (i).Single propietership is not only

popular but also successful followed by partnership, (ii). Most of

the entrepreneurs are in the age group of 31-40 years, (iii).

Parent's background in industry, trade and contract works is higly

conducive for entrepreneurial career and (iv). Engineering

industries seem to thrive in the industrial estates, constituting as

many as 62 O/O of the sample.

$

~ . ~ a d h u m u r t h ~ ~ ~ (1997) in his study of 80

entrepreneurs from Warangal, Visakpatnam and Hyderabad found

tha t (I) agriculture and business families are the main sources of

entrepi-eneurial supply, (2) most of them are graduates, (3) most

of them at the age between 26 to 30 years have started their

entrepreneurship career; (4) engineering graduates are having

experience before starting; (5) the main n~ot ivat ionai factors t o

choose entrepreneurial career are desire for independent life,

personal fame, innovation and encouragement by several

agencies.

Sukhpal singh2' in his study of refugees f rom Pakistan as

entrepreneurs found that the factors influencing the success of

entrepreneurs are determination t o adjust in new environment,

previous experience and knowledge, measures adopted by

Government t o facilitate rehabilitation. He suggested that not only

family background; personal motivation and conducive

environment bu t also Government policies and programmes wil l

promote entrepreneurship. Table 11.1 summarizes sources, positive

factors and negative factors of entrepreneurship as given by the

above researchers.

*?,; t;\:-. ,--;;"* , - 1 .'* ,, - , , , " , . . , . , . , " , 1 I Negative 7

Marwaris, Parsis and Gujaratis

---- Business connections marriage net works, controls over managing 1 1 agencies, and community / solidarity. 1

I 1 i

jandit 1 Gujaratis 1 Status given by business 1 I 1

jhoji 1 Nattukotai j Business alliances and f 1

I

:ling 1 Bengalis

consequent group 1

Exigencies of the situation Conducive climate

unity, and j dominance of 1

solidarity.

lilton Singer I Past experience, education

; Low esteem to

1 1 and access to capital

.-. / equipment aggarwal 1 Cultural sub-patterns of

aspiration J,R.Gaikwad Dominate Socio-economic I R.N,Tripathy power enjoyed by family. li.A.Sharma From various Desire to be independent in

communities life, financial assistance, business experience, heavy demand and technical Knowledge.

self containing 1 regional I

1 markets. I --.....--A

1

institutions, and family up brining .

ames Berna

4. U. Despande

I/. Loujs

4. P. Upadyaya

--

Changes in social structure through education. Caste, family, father's occupation and status. -- Experience in the similar field, --

____i

j

----.--- 4 I

I

I

, - 1 Incentives offered by I

-.-

iddle income

Characteristics Of Entrepreneurs:

N.P. Singh and Rita sengupta2' i n their survey of 45

potential women entrepreneurs observed that the need for

achievement was moderate. Though initial motivation is low, they

tend to become high achievers once they get on,

According to V. R. Gaikwad and ~ . ~ . ~ r i p a t h y ~ ' bold, dashing

and pragmatic personality, managerial competency, and high

motivation, are the characteristics of entrepreneurs.

A study conducted in Hyderabad and Secunderabad by

~ . ~ . ~ h r i s t o p h e r ~ ~ revealed that characteristics associated with

entrepreneurship were formal education, urban background, and

expe,rience in industry, ambition and willingness to take risk,

The East-West Center Technology and Development

institute3' made a comparative study of the findings of different

researchers. The findings of above studies along with those of the

authors stated above are placed in Table 11.2. Table 11.3 p r e ~ e n t s

the most frequent characteristics analyzed from Table 11.2

. - a , , ~

"-,>;:;[-., , , , " , , ~. , '

. . . ~ - . . . . " . " - 2 . . ,. ' . r . ; * : ,

1. Confidence 2. Perseverance, determination 3. Energy, diligence 4. Resourcefulness 5. Willingness t o take calculated risks 6. Need to achieve 7. Flexibility s. Creativity 9. Optimism 10. ~ n d e ~ e n d e n c e 11. Foresight 12. Dynamism, Leadership 13. Courage

Developing Entrepreneurship:

Selection :

Asghari ~ o h i n u d d i n ~ ~ reviewed the Indian experience

on selection methods of potential entrepreneurs and

suggested a method involving a combination of various

techniques to assess the social back ground, personal

qualities and technical abilities of individuals. The author

pointed out that the majority of the selection procedures are

costly and require considerable professional expertise.

Vinayshil ~ a u t h a r n ~ ~ discussed the concept and

constraints of science and technology entrepreneurship. He

advocated the need to develop an entrepreneurship index, a

measure of individual's strengths and weaknesses t o make

entrepreneurship development a more selective, intensive

and purposive process rather than tha t of a mass

application.

Prayag ~ e h t a ~ ~ has highlighted certain

important values and examined the relevance of these

values to entrepreneurial behaviour. He opined that proper

understanding of the cultural content of values and the

behaviour based on them; help people develop insights in to

areas requiring self-development.

S. V. S. ~ h a r r n a ~ ~ has detailed the research studies

on entrepreneurial characteristics and their usefulness in

identifying and selecting potential entrepreneurs, t o

formulate a strategy to develop entrepreneurship through

interventions. The author opined that to arrive a t a

universally applicable and invariant portrait of an

entrepreneur might not be possible. But, he held a view tha t

i n every society some possess entrepreneurial qualities t o a

greater degree than others and these people can be

encouraged to take up entrepreneurial activity.

Gnana ~ a n n a n ~ ~ advocated training no t only for

potential and existing entrepreneurs but also for persons

who are directly or indirectly associated in promoting

entrepreneurship like: (a) Policy-makers, (b) Government

executives, (c) Field personnel, (d) Personnel of the support

systems, and (e) Workers of voluntary organizations. He

prepared a course content of the training for both the

groups.

Development Programmes:

P.N. singh3' provided an overview of

entrepreneurship development in India, focusing on factors

considered to be important for nurturing entrepreneurship.

The author, based on a few illustrative cases of successful

entrepreneurs, presented a model for entrepreneurship

development.

~ . ~ s t h a n a ~ ' reviewed the experiences o f EDPs i n

India and abroad. The author, while suggesting a model

programme raised some important issues regarding (a)

structure and composition of EDPs, (b) areas of operation,

(c) fixing of priorities (d) follow-up (e) spatial dispersal o f

EDPs, (f) training of trainers, and (g) pattern of financing

new ventures.

Udai Pareek and Manohar ~adka rn i~ ' , suggested a

trainir-ig model emphasizing that training has t o include not

merely training to acquire skills bu t t o transform a person

into a new role-the role of conceiving ideas and translating

them into practices.

V.G. pate14' under a World Bank Research project

studied the three Gujarat innovations, ( i ) The Technicians

and New Entrepreneurs Scheme of Finance (TSNES), (ii)

Entrepreneurship Development programme (EDP) and (iii)

The Sheds Construction Programme for Industrial

Infrastructure, to assess the effectiveness of such innovative

policies and programmes i n new entrepreneurship formation.

It was concluded: (i) Programmes are effective, accelerating

the development of small scale industries; (ii) Potential

industrial entrepreneurship is lying latent i n a var iety of

castes, communities and occupational grbups; (iii) Success

in the ventures is the result of enterprise and cahpetence

rather than financial position of tpe entreprenmr; and (iv).

EDPs can address those with inMequate entrepreneurial and

managerial capacities and industrial information and self-

confidence.

Ravi ~ . z u t s h i ~ ' discussed the need to mould

entrepreneurs who are better equipped to create hi-tech

enterprises. I n order to nurture entrepreneurship among

persons with science and technical education, the author

suggested a programme package consisting of

entrepreneurial awareness, skill development, prototype

design and project work, and confidence building etc.

B.G. Shah and T. Venkateswara ~ a o ~ ~ highlighted the

need to equip potential entrepreneurs with necessary

enFerprise - building and enterprise management skills. The

author, discussing the concept and methodology of t raining

in managerial skills, opined that thougo much ekperience

was accumulated on motivation management

development, l i t t le work was done on enterprise - building

skills like persistence, de te rmina t i~p and the abijity t o solve

Oyoblems.

Nagendra P . ~ i n c ~ h ~ ~ attempted at redefining the inter-

related facets of EDP and explained the methodology of

entrepreneurship development, process and design. The

author reviewed the Indian experiences and examined

several alternatives for initiating EDP for different target

groups.

~ . ~ . ~ a t h a k ~ ~ presented a EDP model for a

comprehensive training package on the basis of t h e

experience of Gujarat model.

Problems:

Somnath ~ h a t t o p a d h ~ a ~ ~ ~ reviewed various motivation

development strategies and their effectiveness. The author

advocated redefining training inputs so as t o offer them as

integrated, viable, balanced programmes adjusted t o the

structural mil ieu of the society.

V.G. ~ a t e l ~ ~ r n a d e a historical review of t he experiences

of EDP in India with a detailed account of EDP strategy and

performance evaluation. The author concluded tha t careful

selection of potential entrepreneurs, individual-specific

counseling, t imely availability of finance to new

entrepreneurs, institutional and organizational arrangements

and effective co-ordination among supporting agencies are

necessary for the success of EDPs.

Ajit ~ a n i t k a r ~ ~ advocated the adoption of 'extension

approach' by the support systems. A number o f reasons

were listed for the low success rate of entrepreneurship

training programmes. The prominent among which was the

unsympathetic and often hostile response of the support

system. Based on the experience of organizing two extension

motivation programmes in the North Eastern States of India,

he concluded, human component of the support system had

to be sensitized to influence the external environment.

V.G at el^^ found that poor involvement of the

institutions as atso of the trainers, and the faulty selection o f

the geographical area and target group had contributed

largely to the failure of EDPs.

E. Desingu setty4' had discussed the problems

and prospects of promoting entrepreneurship in small

industry. The problems were classified as individual, group

and institutional. The author called for suitable support

systems for each class of problems.

M.M.P. ~khour i " , while examining the policies,

programmes and progress made by SSI i n ten Asian

countries highlighted to concept o f integrated

entrepreneurship development and i ts close linkages t o the

SSI development. The author made a comparative study of

the stimulatory, supporting and sustaining activities of

entrepreneurship development in seven Asian countries. The

policy implementation gaps in entrepreneurship development

were highlighted with empirical evidence.

Table 111.4 presents in brief the above research

findings.

Author t View mints 1 Selection : ----- -I____1__"- ----"-- i Asghari Mohinuddin i Suggested selection methods of potential i 1 entrepreneurs to assess their social I

I background, personal qualities and technical ;

Vinayshil ~ a u t h a m

--- Prayag Mehta

/ development of an individual S.V.S. Sharma

4 1 Usefulness of identifying entrepreneurial ] ristics to formulate the strategy to

entrepreneurship

' ~ d a i pareek *gEetraining to transform a person into /

influencing success of EDPs Need to mould entrepreneurs in Science and

Manohar Nandkarni - 1- Technology by skill development, prototype design, project work and confidence building

a n& role. Reviewed EDPs in-India and found the factors-

etc. - Suggested rnethodi~igy ui6n,j!

lasized on ente enterprise building skills like stence, determination and the ability to solve

/ different target groups. 1 Comprehensive EDP

Nagendra P. Singh

1 I Model

ems. Various alternatives for initiating EDP for

Sournath Chattopadhyaya

l---+--

Reviewed various motivational development strategies, and programmes, which are integrated, viable and adjusted to the structural milieu of society.

Problems: V.G. Patel

.---- -- ----. -

E. Desingu setty

V.G. Patel

I M.M.P. Akhouri

/it Kanitkar --

EDPs failures due to faulty selection, poor involvement of trainees and trainers. --- ---- Need for support systems to solve individuag groups and institutional problems in promoting entrepreneurship Effective coordination among supporting agencies, individual specific counseling, availability of finance are necessary for success of EDPs. Highlighted the concept of integrated entrepreneurship development. Need for adoption of extension approach by the support systems.

Comparative Studies:

John A. Hernady and John ~ b o u d ~ ~ i n their at tempt to

differentiate entrepreneurs from men-in-general, used

Kadder Occupational Interest Survey (OIS), Gordon's Survey

of Interpersonal Values (SIV), and Edwards Personal

Preference Scale (EPPS) in their study. They found tha t

entrepreneurs, compared to men-in-general, are higher on

scales in the need for achievement, independence, and

leadership.

Raymond Lee owens and Ashis IVandys2 , undertook a

survey of entrepreneurs and non-entrepreneurs belonging t o

Mahisyan upper caste during 1967-68 in Howrah and

concluded :

(a) Psychological charqcteristics associated with entry and

success in business vary with the nature of rewards,

ante~pdenr t u l f p r ~ s and histoy of entering groups;

(b) Entry into enterprise requirqq a sbt of 4klfl5, Motives, and

social back ground, w h~ le entreprene~rii$-

requires another set.

~ . ~ a v i c h a n d r a ~ ~ attempted a comparative study of the

successful and unsuccessful entrepreneurs, i n Hyderabad, in

terms of social, educational and psychological characteristics,

with a view to arrive at a profile of a potentially successful

entrepreneur.

These few comparative studies presented here suggest

that entrepreneurs are different to non-entrepreneurs.

Summary:

It is evident tha t the sources of entrepreneurs were first

l imited to trading community, families/groups affected by changes

in social structure and individuals with need for achievement. The

factors that influence entrepreneurs are Government polices,

education, socio-ti?xmor'r$ changes etc.

The important characteristics of entrepreneurs are

confidence, persaverance, determination, energy, resourcefulness

abil ity t o take calculated risks, need t o achieve, diligence,

creativity and flexibil i ty.

Studies were made on selection methods, development

programmes and factors influencing their effectiveness. The

selection methods have t o assess the social background, personal

qualities and technical abilities of individuals. An enterprising index

may be developed. Understanding cultural values and personality

characteristics will also help to choose persons and design

programmmes for their development.

Figure 11.1 presents an analytical model of dynamics of

entrepreneurship in India,

It is observed that training is necessary not only for potential

entrepreneurs but also for others associated in promoting

entrepreneurship and enterprises. The EDP should be an

integrated one including skill development, person development

and project development. They are adjusted to milieu of society.

The problems i n entrepreneurship development are classified

as individual, group and institutional, Poor involvement of trainers

and institutions, faulty selection of the place and people, improper

inputs, and insensitive human component in support system are

factors responsible for the failures of EDP. Careful selection of

trainee's individual specific counseling and coordinated support of

organization is essential.

Comparative studies reveal the differences in entrepreneur

and non-entrepreneurs.

This focuses the attention of researche&, policy makers and

entrepreneurial agencies to the need for finding differences

between entrepreneurs and potential entrepreneurs. In this

context, it is observed by many that, outgoing collegiate students

can be developed into potential entrepreneurs wi th proper

awareness and motives. This emphasizes the need for grooming

entrepreneurial personalities of the students during the different

stages of education.

Research Problem: What are the differences between the

students and entrepreneurs? How can students be developed into

potential entrepreneurs by means of educational interventions?

Objectives:

The objectives of the study are

(i). To identify the Socio-economic profile, life-style, personality

traits, influencing factors in the choice of occupation of

students and entrepreneurs.

(ii). To compare the above profiles of students with those of

entrepreneurs and analyze the differences.

(iii). To examine the role of educational interventions in the

process of promoting entrepreneurial spirit and awareness

among students.

(iv). To suggest measures to be taken by edbtatlonal lnskit~klons

in orienting students towards entrepreneur5hib.

Figure 11.2 shodt; the dnalyt i tal mo&i Uskd /or

carrying out t he Study.

Hypotheses Of The Study:

HI: The perceptions of Arts, Science and Technology students

are different with regard to life-style, personality traits,

choice of occupation and factors influencing the choice of

occupation.

H2: The perceptions of students preferring entrepreneurial

occupation are different to those preferring jobs with regard

to life-style, personality traits and factors influencing the

choice of occupation.

H3: There are significant differences between students and

entrepreneurs with regard to life-style, personality traits and

factors influencing the choice of occupation.

Methodology:

The methodology adopted is as follows.

Data Sources:

The data sources are primary and secondary as well. The

secondary data are collected From various research works,

publications of Government and Entrepreneurship Development

Institutes. The primary data include information obtained from

outgoing collegiate students and entrepreneurs of going

concerns.

Data collection:

The primary data are collected by personally administering

questionnaire wi th the help of investigators. The questionnaire is

developed using rational - construct criterion. Earlier research

studies are referred and tested i tems are included in the

questionnaire. Questionnaire used for the study has four

sections.

Section-A consists of demographic variables like age, sex

income, family size and other factors, which are important t o

identify sources of supply of entrepreneur.

Section-8 consists of l i fe style instrument, which has 63

i tems as given below. A 5-point scale is used for measurement.

( i ) . Task-oriented 6 I tems (v) Innovative 13 Items

(ii) Risk-oriented 7 I tems (vi). Frustrated 5 I t ems

(iii) Social 9 I tems (vii). Homeliness 9 I t e m s

(iv) Intellectual 11 I tems (viii) Future oriented 3 Items

Besides this, section-5 consists of questions like goals in

life, t ime utilisation pattern, leisure t ime activity, !-ecreation

activities and reading habits etc.

Life style has become an important aspect to marketers to

know about the potential customers. The studies reveal the

behavioral personality of the individuals. William D. Wells and

George ~ u b a r ~ ~ (1966) studied the life style concepts in

Marketing Research; Fred D. Reynold, Melvin R. Crase and

William D. ~ e l l s ~ ~ (1977) had investigated the modern feminine

l ife styles for the benefit of marketers; William ~ a z e r ~ ~ (1963)

examined the life style concepts and their implication t o

marketing; Anna Linton and Simon broadbent5' (19751, had

made international l i fe style comparisons; and Susan P. D O U ~ ~ S

and Christine ~ . u r b a n ' ~ (1977) had also studied l ife-style

analysis to profile women in international market.

Section-C lists the personality traits l ike sympathetic,

sociability, charitability, happy, achievement oriented, co-

operative, courageous, hard work, sentimental, religious, firm,

optimist, self-confident, sincere, peace loving etc., t o identi fy

entrepreneurial characteristics.

The entrepreneurial characteristics are drawn from

the following studies. Joseph A. churnp peter's^^ study on " The

Theory of Economic Development", Akhouri, M.M.P and

Battacharjee, s.K~'., (1979)'s study of "Policy Implication of

Identification and Selection of Small Scale Entrepreneurs",

Mansfield Richard's, McCelland. D.C, Spencer Lyle and Santiago

30se 's~~ study of "Identification and Assessment of Competencies

and other Personality Characteristics of Entrepreneurs in

Developing Countries"; East - West Center Honolulu's report62 on

"Working Profile of Entrepreneurs"; and "Handbook for New

Entrepreneurs" by Entrepreneurship Development institute of

~ n d i a ~ ~ . The measurement scale used in this section is l l - p o i n t

scale.

Section-D lists the various factors influencing occupational

choices to prefer either entrepreneurship or a job. The Factors

influencirlg the choice of occupation as entrepreneurship include

"Success stories of entrepreneurs"., "Contacts with business

pmple"., "Owing to the lack of job opportunity"., "Ambition of

family members".," Inspiration o f relatives/friends"., "Influence

of EDP1s"., "Desire to gain higher social status"., "Desire t o earn

more money"., "Desire to utilize creative talents"., ' Life

ambition"., "Desire to lead an independent life and freedom to

take decision" .

The factors influencing choice of job as occupation

are "Lot of competition to perform entrepreneurship",

"Entrepreneurship is risky", "Entrepreneurship demands

sleepless nights", 'It is imposed by rules and restrictions of

government", "Won't permit me to spend with Family", "I l ike to

work within stipulated timings", "Lack of financial resources",

"Lack of confidence", "Donlt f ind good opportunities and

avenues", "Starting a business is easy but managing is difficult."

etc. The measurement scale used is a 5-point scale.

The influencing factors are drawn from the studies of

B.E.V.V.N Murthy, M. Chandra Sekhar and M. Gangadhar R ~ o ~ ~

(1986) "Entrepreneurial Process and Promises", Rao T.V and

Prayag ~ e h t a ~ ~ (1978) "Psychological Factors in

Entrepreneurship in Developing Entrepreneurshipff, Ch.

~ e n k a t e s w a r u l u ~ ~ (1996) "The Socio-Psychological Factors o f

Entrepreneurshipff and K. ~ a d h u m u r t h y ~ ~ (1997) "Some Aspects

of Entrepreneurship Development in Developing Economies with

Specific Reference to India".

Sample

The sample I for the study includes outgoing collegiate

students from Sri Venkateswara University (SVU) and Sri

Padmavati Mahila Visva Vidalayam (SPMVV), which are the

prominent institutes in Chittor District for many disciplines of

study.

Stratified random sampling method is used. Students are

stratified on the basis of study viz. Arts, Science and Technology*

From Arts discipline M.B.A., M.Com and M.A (Economics) groups

are chosen, since they are related to business education.

Similarly, from the Science discipline M.Sc (Home science),

M.C.A and M.Sc (computers) are chosen, and from Technology

discipline B.Tech and 0.Pharmacy are chosen for study. From the

population of each discipline, 100 students are chosen by lottery

method. Questionnaires are distributed in all, t o 300 students.

The response rate being 69%, the resulted sample size is 207.

The sample I1 of the study includes entrepreneurs

running their business i n Chittor District of Andhra Pradesh (A.P).

Simple random sampling method is used here. From t he l is t of

entrepreneurs by lottery method 70 are chosen and the

questionnaire is administered. Since the response rate is 5I0/o

the sample size i s 37.

Data Analysis

The questionnaire data are analyzed through computers by

making use of SPSS, Ms-Excel and FoxPro packages. The

statistical analysis includes computation of percentages, means,

and standard deviations, test ing of mean differences, rank

correlation and factor analysis.

Limitations of the study:

The following l imitations are observed in the present study.

(I). The reFponses f rom the students are more aspirational t han

actual. They are found to be less clear about thei r fu tu re goal

and activities. As such responses relat ing t o l i fe style and

personality trai ts may be socially acceptable ones.

(11). I n the case of entrepreneurs, due t o their busy schedule, it

i s doubtful whether they could devote full attention t o the

questionnaire and give more authentic information.

However, care i s taken t o see t ha t responses are authentic

in case of both the students and entrepreneurs. Trained

investigators are utilized to assist the respondents, wi thout

influencing their views on the i tems of t he questionnilire. They

expleined the importance of the study t o the subjects and made

them fill the questionnaire properly.

NOTES

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