A Study on Awareness and Attitude towards Entrepreneurship Development in Telengana

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International Journal of Research and Development - A Management Review (IJRDMR)

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ISSN (Print): 2319–5479, Volume-5, Issue–3, 2016 119

A Study on Awareness and Attitude towards Entrepreneurship Development in Telengana

P.Dolly Diana

St. Martin‟s Institute of Business Management Dhulapally, Secundrabad.

Abstract : The entrepreneurship Development is first affecting factor on country’s GDP. The entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies.

Entrepreneurship and innovation are two of the most pervasive concepts of our times, yet there are still gaps in our understanding of the interactions between entrepreneurship and innovation, particularly in developing countries. In the developing world successful small businesses are the primary engines of job creation, income growth and poverty reduction. Entrepreneurship helps in the process of economic development in the following ways. Entrepreneurship is the ability to seek out opportunities and turn them to profitable businesses.

Key words: entrepreneurship, stimulating economy, innovation, developing countries, economic development

I. INTRODUCTION

Entrepreneurs generate employment both directly and indirectly. Directly by creating self employment and indirectly by starting many industrial units and offer jobs to millions. An increasing number of entrepreneurs are required to meet the increasing demand for goods and services. The growth of industry and business leads to a lot of public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. When the new entrepreneurs grow at a faster rate in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions.

Developing a large number of entrepreneurs helps in dispersing the economic power amongst the population.

It helps in weakening the harmful effects of monopoly.

Entrepreneurs are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. When the price of the goods decreases the consumers get the power to buy more goods for their satisfaction.

It increases the standard of living of the people. An entrepreneur brings economic development through innovation and also helps in increasing productivity and capital formation of a nation.

Institutional support for Entrepreneurship in India The National Alliance of Young Entrepreneurs (NAYE) organized a series of workshop and Conferences for the development entrepreneurship. A good number of institutions have launched some special programmes for to provide financial and managerial support for fresh and dynamic entrepreneurs to build their units in the area of their assistance through these institutions. The institutions are

The National Small Industries Corporation (NSIC) Small Industries development Organization (SIDO) SBI‟s Shree Shakti Scheme for the development of Women entrepreneurs Entrepreneurship Development Institute of India (EDII)

National Institute for Entrepreneurship and small business development (NIESBUD)

National Science and Technology Entrepreneurship Development Board(NSTEDB)

Innovation and Entrepreneurship Development Center (IEDC).

Beneficial schemes for Entrepreneurs in India Government of India operates many schemes for the benefit of existing and prospective entrepreneurs.

Schemes for entrepreneurs help the MSMEs to upgrade their technology, to develop their market, to acquire international and National quality standards, to adopt energy saving measures to enter export market etc. The schemes aim to increase the competitiveness of the MSMEs by adopting these measures.

MAIN SCHEMES OF MINISTRY OF MSME

Name of

Schemes

Salient features Eligible beneficiaries 1.Prime

Minister‟s Employment Generation Programme

25% subsidy for entrepreneurs of urban area, 35%

subsidy for entrepreneurs of rural area, 5% of project cost as beneficiaries‟

Educated unemployed youth.

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contribution &

balance 95% loan from banks

2.ISO-9000/ISO- 4001

Certification Fee Reimbursement Scheme

Reimbursement of expenses incurred in acquiring ISO- 9000/ISO- 14001 Certification, at 75% of the cost or Rs.75,000

whichever is less.

Individual MSEs including those

engaged in business/

services.

3. Market

Development Assistance Scheme.

To encourage participation in international trade fairs for export promotion.

Individual micro &

small enterprises.

4.Credit

Appraisal and Rating

Tool(CART)

Reimbursement of performance and credit rating fee through reputed credit rating Agencies

Individual micro &

small Enterprises

5. Integrated Infrastructure Development Scheme

To facilitate provision of building up infrastructure with necessary facilities for manufacturing and related service enterprises with reservation of 50%

for rural areas.

State govts., industry Associations

6. National Awards

To encourage and appreciate the outstanding efforts of MSMEs in three categories (i) Entrepreneurship, (ii) Quality up gradation and (iii) Research and Development

Associations of MSEs/

SSIs, Universities/

Institutes.

7. Rajeev Gandhi Udyami Mitra Yojana

To provide

handholding support to potential first generation entrepreneurs.

Financial

assistance @ Rs.4000/- per trainee for service enterprises and @ Rs.6000/- per trainee for manufacturing enterprises would be provided to Udyami Mitras as handholding charges

EDIs, NSIC, SIDC, KVIC, SPVs, MSME-DI ,

Objectives of the study

 To study the level of awareness about entrepreneurship Development

 To analyze their attitude towards starting business and becoming a successful entrepreneur.

 To identify the affecting factors or reasons that stays as a barrier or constraint to become an entrepreneur.

Research methodology

It is a fact finding study which is used to determine the descriptive information of a subject. It is simplest form of research. Both primary data and secondary data are used in this study. The sample size is 100 employed youths.

Data Analysis

Table 1 Basic attitude or expectation on starting a new business

Choice of Respondents Percentage (%) To make high profit 18

To become a boss 14 To earn a living by doing something

28 To work the hours I want 6 Use my abilities & skills 34

Total 100

The above table reveals that majority of respondents starting a new business for to use their own abilities and skills.

Table 2 Important quality for an entrepreneur Choice of Respondents Percentage (%) Ability to manage 26

Creativity & Innovation 30 Honesty & Sincerity 6 Confidence, Persistence&

Determination

28 Face loss & Uncertainties 10

Total 100

From the above table it is clear that majority of the respondents given their opinion is that Innovative skill, confidence, Persistence &Determination are most important quality for an entrepreneur

Table 3 Prerequisite for starting a new business Choice of Respondents Percentage (%)

Capital 65

Communication skill 5 Management skill 10 Readiness to work for long hours

5 Ability to face risk 15

Total 100

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The above table shows that majority of the respondents agreed with that capital and investment is most

important prerequisite for starting a new business.

Hypothesis Testing Chi square Test

H0: There is no significant relationship between gender and attitude towards entrepreneurship.

H1: There is significant relationship between gender and attitude towards entrepreneurship

Value DF Asymp .Sig.

(2 –sided)

Exact Sig.

(2- sided)

Exact Sig.

( 1- sided) Pearson Chi-square 6.359(b) 1 .012

Continuity Correction (a) 4.826 1 .028

Likelihood Ratio 6.182 1 .013

Fisher‟s Exact test .021 .015

Linear-by-Linear 6.232 1 .013

Association N of Valid cases

100

From the table Pearson chi-square value is 0.012 which is less than the hypothesis value 0.05. Hence null hypothesis H0 is rejected and alternative hypothesis accepted. Therefore there is significant association between gender and attitude towards starting business.

FINDINGS OF THE RESEARCH STUDY

 The findings reveal that the level of awareness about entrepreneurship Development is quite relatively high at present days.

 Majority of the respondents posses favorable attitude towards starting a business of their own and become a successful entrepreneur in future.

 The study shows that majority of respondents strongly agreed that lack of sufficient money or Investment or capital as their foremost blocking barrier in starting a business venture.

 The research found that most of the respondents have opted food industry (like Hotel, Restaurants, Eateries and sophisticated chat outlets) as the most interesting area or field on which they would start a business in future.

 The survey shows that almost 90% of the female respondents have not interest in starting a business due to personal, societal and cultural constraints.

 Most of respondents settled to the fact that the concept of entrepreneurship became familiar by seeing or hearing the inspiring stories of the people who succeed in the entrepreneurship.

 70% of the respondents agreed that „Creative &

Innovative ideas‟ as the most indispensable characteristic feature of an entrepreneur.

 Almost all Male respondents preferred to commence technical, engineering, finance and hotel industry. And all female desired to take on cosmetic, fashion designing and food industry as the most attractive business activity,

CONCLUSION

The entrepreneurship Development concept is widely spreading among the energetic and vibrant, and in coming year‟s entrepreneurship as a career would surely beat the right note in the Indian economy. The opportunities, scope and rapid growth in these entrepreneurial activities would surely enhance the performance of the nation‟s economic development, welfare and prosperity.

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