A study on the Success and Failure factors of Micro ... - IRD India

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A study on the Success and Failure factors of Micro entrepreneurs

1D. Indira, ²K.V.S.Raju

1MBA Dept, GRIET, Bachupally, Hyderabad., ²GRIET, Hyderabad What is Entrepreneurship?

Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire. It has been defined as the

"...capacity and willingness to develop, organize, and manage a business venture along with any of its risks in order to make a profit."While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of businesses have to close, due to a "...lack of funding, bad business decisions, an economic crisis -- or a combination of all of these"^] or due to lack of market demand. In the 2000s, the definition of

"entrepreneurship" has been expanded to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them, whereas others do not and, in turn, how entrepreneurs use these opportunities to develop new products or services, launch new firms or even new industries and create wealth.

MSME Act

The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex body for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India. The current Minister of Micro, Small and Medium Enterprises is Kalraj Mishra since 26 May 2014.

History of MSME:

It was built around the vocational training centre that was transferred from Kurukshetra, in July, 1948 to the 1100 acres of swampy land on the Delhi-Ambala highway as one of several enterprises intended to provide employment and training for displaced persons following the partition of India This training center was under Small Industries belonged to subhash mukherjee Development Organization (SIDO) and used to provided training to extension officers (industries of State Governments as well as managers and technician entrepreneurs both in modern small scale and traditional village industries. During the Year 1986-87 the center

trained 200 technicians, 85 women under core women training programme and 57 SIDO officers.

Functions of MSME:

The Micro, Small & Medium Enterprises Development Institute (MSME-DI), Hyderabad (formerly SISI), established in the year 1956, is a field level Institute of the O/o. Development Commissioner (MSME), under the Ministry of MSME, Government of India. The O/o.

DC(MSME) is the apex body for formulating MSME policies in the country and it implements promotional activities through its country-wide network of MSME- DI, their branches, MSME Field Testing Stations, Prototype Development Centers and Tool Rooms.

MSME-DI, Hyderabad assists existing and prospective entrepreneurs by providing techno-managerial consultancy services and training in various areas. Br.

MSME-DI, Visakhapatnam (MSME-DI,

Visakhapatnam), with an attached Workshop, was established in the year 1984. The upgraded facilities at MSME Testing Station, Sanatnagar, Hyderabad (MSME-TS, Sanathnagar) provide testing facilities in Mechanical, Chemical and Metallurgical fields. MSME- TS are under the administrative control of MSME-DI, Hyderabad.

MSME-DI extends its services in two States of Andhra Pradesh & Telangana. Designated Nodal Officers in the Institute function in close co-ordination with the District level agencies to provide services to the MSME sector in the districts

Manufacturing Sector

Enterprises Investment in Plant &

Machinery

Micro Enterprises Does not exceed twenty five lakhs rupees.

Small Enterprises More than twenty five lakhs rupees but does not exceed five crore rupees.

Medium Enterprises

More than five crore rupees but does not exceed ten crore rupees.

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Small Scale Industries

A small-scale industry is a project or firm created on a small budget or for a small group of people. A small- scale industry produces its goods using small machines, less power and hired labor. It is located within a single place and produces goods meant for few people.

The Ministry of Small Scale Industries (SSI) is a defunct Indian government ministry. It was merged with the Ministry of Agro and Rural Industries to form the Ministry of Micro, Small and Medium Enterprises. The ministry was tasked with the promotion of micro and small enterprises (MSEs).

The Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) was created in October 1999. In September 2001, the ministry was split into the Ministry of Small Scale Industries (SSI) and the Ministry of Agro and Rural Industries (ARI). The Ministry of Small Scale Industries merged with the Ministry of Agro and Rural Industries to form the Ministry of Micro, Small and Medium Enterprises in 2007

The Small Industries Development Organization (SIDO) was under the control of the ministry, as was the public sector undertakings National Small Industries Corporation Limited (NSIC).

Small-scale industries are easy to start and manage given the minimal scale of production. They are set up to cater for the basic needs of the people within their locality. An example of a small-scale industry is a laundry or small kiosk created to cater to the individual needs of the people in the area in which it is located.

These businesses require little starting and operating capital. They require cheap labor that is easily found and their target market is the host community. Such companies also realize a small annual turnover and, as a result, pay fewer taxes. The classification of the industry as large or small scale depends on the rate of production and the number of employees. An industry with a low rate of production and fewer employees is a small-scale industry. Most governments implement policies that strengthen the small-scale industry sector because of the role the industries play in economical development. The industries help in alleviating poverty through provision of employment and other products.

Need for the Study

India being a developing country has a large chunk of the population living below the poverty line.

Entrepreneurship is not only a means of livelihood for an entrepreneur but also to the people associated with the business. Being a low investment and highly flexible business, street vending has the potential for earning reasonable profits.

Despite, the employment provided by the informal sector, it tends to be perceived as antisocial, anti- developmental, dirty, anesthetic, unhygienic and so forth. This negative attitude and consequent neglect has

meant that this sector is ignored by conventional town planning and treated as unplanned urban growth.

However the reality is that this sector comprises of self employed persons who are trying to earn their living with dignity and honesty. They are poor but hard working. They are an integral part of the economy.

However, literatures (Bhowmik 2001; Anjaria 2006, Ela Bhatt 2010) have stated many problems of street vendors regarding their social protection, working condition, credit accessibility, and their public space utilization.

This study seeks to address the success and failure factors of microentrepreneurs.Every entrepreneur is not successful and at the same time they are some common factors to success. This research attempts to identify those common factors to success and failure.

Business is a process in which a person or an organization purchases and sells goods in anticipation of profit. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.

A street vendor is also a businessman investing money, he is undergoing the process of selling goods in exchange for a profit. This definition is in tune with the process of business hence a street vendor is also a businessman. In fact according to national policy on street vending 2009 a street vendor has been recognized as a micro entrepreneur.

Statement of the Problem

Street vending has gained importance due to several reasons such as poverty, illiteracy and lack of gainful employment in the formal sector which drives the productive labor from rural areas and smaller towns to the cities for work and livelihood.

The people who possess no skills and lack the educational background do not find employment opportunities in the organized sector. Further, permanent/protected jobs in the organized sector are shrinking, hence such workforce is being attracted to street vending business.

For these people, there is no option left except to work in the informal sector as an avenue for survival. This has led to a rapid growth of the informal sector in most metropolitan cities. In this way a section of the urban poor are absorbed into gainful employment.

Further the number has increased due to large scale layoffs in organized industry. Many retrenched workers are able to feed their families by taking up street vending. The study conducted by NASVI revealed that around 20 percent of the hawkers covered in Mumbai were once permanent employees in the organized sector.

Hawkers not only provide a market for manufacturers, but also help sustain employment in Industry.¹³

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The contribution of street vendors is not considered by urban authorities, the municipality and the police. They consider street vendors as obstacles to traffic and involve in harassment of this section.

Starting an enterprise and running it requires lot of skills. It calls for sacrifice in terms of money and time.

Street vendors are mostly uneducated and do not undergo any formal training to carry out business.

Street vendors should be provided with training to upgrade their technical and business skills so as to increase their income as well as to look for alternatives.

The present study aims at exploring the existing system of functioning of street vendors. It is intended to understand the mode of operation of street vendors. The focus areas is to explore the atmosphere in which the street vendors are operating.

It tries to analyze whether the revenues are sufficient to earn profits. It tries to identify the problems encountered by street vendors. It tries to find out the type of people who do these business in terms of social status. It intends to educate street vendors about critical success factors through its findings. It is to know to what extent

street vending as a business is helping in alleviating the social status of people involved in it.

Importance of the Study

It is estimated that about 10,000,000 (10 million) street vendors are operating in the country.¹⁴ Urban vending is not only a source of employment but also provides affordable services to most of the urban population. The role played by the hawkers in the economy and in the society is remarkable.

Street vendors being a part of the unorganized sector have little or no access to credit from formal sector financial institutions particularly for their economic activities without which they will have to depend on private money lenders borrowing at higher interest rates.

Hardly few studies are available on street vendors. The literature review reveals that earlier studies have focused more on the problems of street vendors, there are no studies found on the comprehensive research on street hawkers. It is proposed to make an indepth study on street vendors.

Review of Literature There have been several studies, which seek to identify

the critical success factors for small businesses.

However, according to Castragiovanni (1996), there appears to be little research which has specifically looked at factors dealing with small business survival. It is important to define these factors for any new business, as the owner should be concerned about the chances for success (Lussier, 1996). Our country depends upon information relative to the success or failure of businesses for maintaining a stable economy. (Gaskill, Van Auken, & Manning, 1993). This paper is not focused upon the failure of small businesses, however, failure data must be mentioned to indicate how this data can be translated into survival information, and to discuss discrepancies in the existing data. It is a fact that failure and success are somewhat bound together, even though at opposite ends of a continuum.

Objectives of the Study

1. To analyze the factors affecting the success of micro and small sector industries.

2. To analyze the factors affecting the failure of micro and small sector industries.

3. To suggest for the factors determining success of micro and small sectors industries based on analysis.

RESEARCH METHODOLOGY

Introduction:

Research is the process of systematic and in-depth study or search for any particular topic, subject or area of investigation, backed by collection, compilation, presentation and Interpretation of relevant details or data. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.

Research must be based on fact observable data forms a sound basis for research inductive investigation lead better support to research finding for analyzing facts a scientific methodology of analysis must be developed and result Interpreted logically.

It is necessary for the researcher to know not only the research method or techniques but also the methodology. Thus, when We talk of research methodology We not only talk of the research methods but also consider the logic behind the methods We use in the context of our research study and explain why We are using a particular method or technique and why We are not using others so that research results are capable of being evaluated either by the researcher himself or by others.

Research problems would result in certain conclusions by means of logical analysis which the decision-maker may use for his action or solution.

Data Collection

Data collection is one of the most important aspects of research. For the success of any project accurate data is very important and necessary. The information collected through research methodology must be accurate and relevant.

Methods of data collection:

 Primary Data

Data collected by a researcher is known as primary data.

It is collected by a person for his own use obtained from findings. This is permitted to manufacturing concerns only. The primary data was collected through:

 Questionnaire

 By personal Interaction with entrepreneurs

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 By observation

The Questionnaire method consists of multiple choice answers to simplify the data collection, and for better understanding of respondent’s opinion.

Data analysis – Tools and Techniques used – Methods of presentation of data

The research approach:

Survey Method

The research instrument:

Questionnaire The respondents:

Entrepreneurs Sampling:

Sample means statistical method of obtaining representative data or observations from a group (lot, batch, population, or universe).The sample size is 20 and the sampling technique adopted is random sampling.

Random sampling:

In this method the sample units are chosen randomly in from top level entrepreneurs to low level entrepreneurs.

Statistical tools used:

 Simple percentage analysis A. Simple percentage analysis:

Simple percentage can also be used to compare the relationship distribution of two or more items. For calculations the simple percentage the following formula used.

Percentage of the respondents = Number of respondents/Total respondents*100

Questionnaire:

The questionnaire consisting of 31 questions and have five options for each.

Period of study:

The time period of the study is 15 days.

6.1 Success and failure factors of micro- entrepreneurs

Introduction

In the present study the variables pertaining to the factors of success and failure are analyzed, the distributions related to the variables like careful spending, writing accounts, and seriousness in business, family background and zeal are assessed. Cross tabulations are used to understand the relationship between the key variables. Correlation is calculated to draw the relationship between the variables. Inferential statistics like chi square is used to test the statistical significance of the values obtained.

The research related to success and failure factors affecting entrepreneurs is a never ending area with lot of potential and relevance to budding and existing businessman. It identifies the various elements influencing business and highlights on the main issues that have to be focused by the businessman in order to be successful. However the factors affecting entrepreneurial success of street vendors has not been researched by many especially in the Indian context, some foreign researchers had explored this area such as Teilhet-Waldorf (1978), Moser (1980),Loprayoon (1991),Norapallop (1993), Sirisamphand (1994), Nirathron(1996), Nophirun(1997).

In the present study it is attempted to understand through the views of street vendors as to what they consider as the main elements of success and failure in their field and the findings are presented.

6.2 Success factors of Street Vendors

A more comprehensive attempt has been made to understand various other factors the street vendors believe lead to success .It was an open ended question and respondents answers have been grouped into various categories for the purpose of analysis viz.

1)Environmental factors- All those factors which are not in the control of the street vendor are grouped as environmental factors.. The following factors have been included in this group viz.

Season, absence of competition, locality, availability of goods at doorstep, selecting good business, low risk, low investment, no tax , no establishment exp, huge demand, weekends, having municipal permission, different cultural settings and luck

2) Skills of the person- The factors which a person possesses either by training, observation or by experience. The following factors have been included in this group viz.Good communication, skills to run the business, experience, time mgmt, mgmt skills, people mgmt, financial mgmt, talent in pricing

3)Product related factors-Are those factors associated with the product and affect its sales. The following factors have been included in this group viz. quality, Price, flexibility, tasty, variety, neatness, fresh stock, quantity.

4) Personal Traits- Are those factors that are related to the personality of an individual. By personality we mean the behavioral pattern of an individual. Personality is a result of inherited characters, parents ,friends, environment around him and experiences. The following factors have been included in this group viz.

commitment, patience, hard work, smart work, careful spending, hope, not having bad habits, making friends, family support, dedication and interest

5)Business tactics- Are the characteristics related to the business acumen of the entrepreneur

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These attributes again are attained due to inheritance ,observation, practice and training. The following factors have been included in this group viz. grabbing competitors customers, changing product based on market, customer satisfaction, careful material purchasing, no bargaining, goodness with colleagues,

more investment, low rates, attracting customers, building goodwill, understanding market conditions, treating customers politely, keeping less stock, minimizing wastage, service, go home after selling all goods, step by step improvement, daily presence, customer relations.

Table 6.2 Success factors of Street Vendors

Frequency Percent Valid Percent Cumulative Percent

Valid Environmental factors 96 12.0 23 12.0

Skills of the person 36 4.5 9 16.5

Product related 110 13.8 26 30.3

Personal Traits 88 11.0 21 41.3

Business Tactics 94 11.8 22 53.0

No answer 376 47.0 100.0 100.0

Total 800 100.0 100.0

Note: Responses are not mutually exclusive

Table 6.2 reveals that Environmental factors , Product related, Personal Traits, Business Tactics each have been given equal weight age by the respondents in terms of success factors. Skills of the person has been given little less weight age in terms of its contribution to success.

This is in consolidation of the views expressed by various respondents who felt anybody could succeed in this trade by virtue of its inherent features of being low investment, high flexibility and low risk is in conformity with these results. Great skills are not required in this business is the opinion expressed by the respondents.

Narumol Nirathron (2006) found that the economic performance of the self-employed generally involves two factors: personal factors (such as entrepreneurial skills) and environmental factors (such as supportive government policy). Babb (1989) pointed out that environmental factors are more important than personal factors for the less privileged self-employed vendor who faces many constraints.²

6.3 Other factors influencing success – Planning, Hardwork, Careful spending

One of the questions asked was what according to them influences success. Three options were given and a fourth option giving them an opportunity to answer all the three in one choice was given. Thus for this purpose the respondents were grouped into four categories namely

1) Planning 2) Hard work 3) Careful spending 4) All the above

Table 6.3 Factors influencing success Reasons affecting

success

Frequency Percent Valid Percent Planning

Hard work Careful spending All answers No answers Total

178 494 248 22 88 800

22.25 61.75 31.00 2.75 11.00

25 69 35 3 100.0

Source: Compiled from primary source

Table 6.3 shows that 69 percentage of respondents have expressed that hard work plays an influential role in success of the business, followed by Careful spending (35.00) and Planning (25).There was a meager percent of 3.00 who expressed that all the factors were needed to succeed.

It can be concluded from the above analysis that as it is a field related work which calls for long standing in odd climatic conditions street vendors feel that those who are hard working in nature can succeed. Moreover in any profession hard work in one dimension or the other affects success. Similarly financial management in terms of careful spending is one of the prime factors which minimizes costs, maximizes profits and helps in wealth accumulation. This fact has been reiterated by this study.

At the same time street vendors in their level of knowledge and experience had understood the importance of planning as a future direction to business activities and gave it due weight age.

6.4 Other Factors For Success- Careful spending Generally prudent financial management is essential for any enterprise, the attribute careful spending is analyzed to understand the extent of influence it can have on street vending business.

The respondents are analyzed based on the factor careful spending and their opinion about its role in success.

They are categorized into two groups namely 1) Yes

and 2) No

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Table 6.4 : Careful spending as a factor influencing Street vendors economic performance Frequency Percent Valid Percent Cumulative Percent

Valid yes 708 88.5 88.5 88.5

no 52 6.5 6.5 95.0

no answer 40 5.0 5.0 100.0

Total 800 100.0 100.0

Table 6.4 shows that 88.5 percent of the respondents felt that careful spending plays an influential role in the success of the business and a meager of 6.5 felt that it does not play an influential role. Thus it can be concluded that street vendors although most of them uneducated recognize the importance of money and its prudent management.

6.5 Other Factors For Success- Writing accounts The respondents are analyzed based on the factor of whether they are writing accounts or not and their opinion about its role in success. They are categorized into two groups namely 1) Yes and 2) No Table 6.5 Writing accounts by Street Vendors

Valid yes 288 36.0 36.0 36.0

no 452 56.5 56.5 92.5

no answer 60 7.5 7.5 100.0

Total 800 100.0 100.0

Table 6.5 shows that 56.5 percent of the respondents expressed the opinion that they are not writing accounts.

It probably is because it’s a small business there is a huge number who are illiterate and lack training. In fact from observation it is found that many sole traders do not maintain accounts. The reasons cited are carelessness, laziness, lack of awareness and so on.

6.6 Other Factors For Success- Seriousness in business

Seriousness in doing business leads to persistent trials by an individual to succeed. Hence it is assumed to play an influential role in success. The respondents are analyzed based on the factor of whether they are serious in doing business or not and their opinion about its role in success. They are categorized into two groups namely 1) Yes and 2) No

Table 6.6 Seriousness in business

Valid yes 574 71.8 88 71.8

no 78 9.8 12 81.5

no answer 148 18.5 100.0 100.0

Total 800 100.0

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Table 6.6 depicts that 71.8 percent of the respondents expressed the opinion that they are serious in doing business. A meager of 12 percent is not serious about doing business. Hence it can be concluded that street vending is being taken up as a serious career for livelihood. This can also be related to one the finding of the present study that 50 percent of street vendors are having more than 5 years of experience.

6.8 Family background of Street Vendors

The attribute family background of the respondents is studied. The respondents are analyzed based on their family background. They are categorized into two groups namely 1) Yes and 2) No

Table 6.8 : Family background of Street Vendors

Valid very poor 44 5.5 5.5 5.5

poor 216 27.0 27.0 32.5

lower middle class

260 32.5 32.5 65.0

middle class

242 30.3 30.3 95.3

no answer 38 4.8 4.8 100.0

Total 800 100.0 100.0

Table 6.8 shows that there is an equal percent of respondents belonging to poor ( 27), lower middle class(32.5) and middle class categories. An interesting observation is that there is a very small percent (5.5) which is very poor. This shows that the percent of very poor respondents is very less. This is in contrast with the studies conducted by Narumol Nirathron (2006), Bhowmik(2001),Debdulal Saha(2008) which found that most vendors belong to low-income groups.

6.9 Other Factors For Success- Zeal of the Street Vendor

Zeal is the condition of having strong interest in doing something. It is assumed that individuals having strong inner appetite will have more possibility to succeed. On this basis the respondents are analyzed based on the factor of zeal to do business. They are categorized into two groups viz. 1) Yes and 2) No

Table 6.9 : Zeal of the Street Vendor

Valid yes 624 78.0 87 78.0

no 90 11.3 13 89.3

no answer 86 10.8 100.0 100.0

Total 800 100.0

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Table 6.9 exhibits that 87 percent of the respondents are having strong zeal to do business. The percent of the respondents who are not having zeal is only 13.This shows that the majority of the respondents are having zeal to do business. Muhammad Yunus, founder of the Grameen Bank in Bangladesh, asserted that all low- income people have survival skills and are thus capable of being self-employed. With hard work and perseverance, these people will be able to survive.

However, not all would be able to manage beyond the survival level. To be able to achieve higher than subsistence level, factors other than hard work count

(Yunus, 1998).¹ 6.10 Association between Success factors- Personal

Traits and Success factors- Business Tactics

It has been studied to understand the relationship between two factors leading to success viz. Personal Traits and Business Tactics. The data related to Success factors- Personal Traits and Success factors- Business Tactics is presented in table 6.10

Table 6.10 : Success factors Personal Traits and Success factors Business Tactics

Success Factors Business Tactics Total

Yes No No answer

Personal Traits

Yes Count 14 96 0 110

% within Succ fac Personal Traits 12.7% 87.3% .0% 100.0%

No Count 94 238 0 332

No answer Count 0 0 358 334

% within Succ fac Personal Traits .0% .0% 100.0% 100.0%

Total Count 108 334 358 800

% within Succ fac Personal Traits 13.5% 41.8% 44.8% 100.0%

Table 6.10 depicts that percent of respondents opting for both these factors as crucial factors affecting success are a meager 12.7.Percent of respondents opting for only personal traits as a crucial factor for success is a high 87.3. Percent of respondents opting for only business tactics as a crucial factor for success is 28.3.This shows that more number of respondents opine that personal traits are more influential in success than business tactics. (Loprayoon, 1991; and Nirathron, 1996) indicated that Personal characteristics such as self- confidence, risk-taking and Creativity plays a crucial role in the economic performance of self-employed people.

In the present study the factors taken in personal characters are Commitment, patience, hard work, smart

work, careful spending, hope, not having bad habits, making friends, family support, dedication and interest.² Testing the relationship between the success factors Personal Traits and Business Tactics

Hypothesis testing

We evaluate the accuracy of hypothesis by determining the statistical likelihood that the data reveal true differences

Hypothesis: H₀- Success factors Personal Traits and Success factors Business Tactics are not related

H₁- Success factors Personal Traits and Success factors Business Tactics are related

Results of Chi-Square Test Chi-Square Tests

Value df Asymp. Sig.

(2-sided) Pearson Chi-Square 409.838^a 4 .000 Likelihood Ratio 556.104 4 .000 Linear-by-Linear

Association

391.792 1 .000 N of Valid Cases 800

a. 0 cells (.0%) have expected count less than 5.

The minimum expected count is 7.43.

Significance level: Let α =0.05 Calculated value= 409.838a d.f= 4

Critical test value= 9.49

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Interpretation: The calculated value is greater than the critical value, the null hypothesis is rejected

That means we accept the alternate hypothesis which states that Success factors Personal Traits and Success factors Business Tactics are related, we can judge that the values are statistically significant.

6.11 Association between Successes factors- Personal Traits and Success factors- Skills of the person. The data related to Success factors- Personal Traits and Success factors- Skills of the person is presented in table 6.11

Table 6.11: Success factors Personal Traits and Success factors Skills of the person

Succ fac Skills of the person Total

Yes No No answer

Succ fac Personal Traits

Yes Count 8 102 0 110

No Count 42 290 0 332

% within Succ fac Personal Traits .0% .0% 100.0% 100.0%

Total Count 50 392 358 800

% within Succ fac Personal Traits 6.3% 49.0% 44.8% 100.0%

Table 6.11 reveals that the percent of respondents opting for personal traits as a crucial success factor and not opting for business tactics as a crucial success factor is a high 92.7 percent. The percent of respondents not opting for personal traits as a crucial success factor and opting for business tactics as a crucial success factor is a low 12.7 percent whereas the percent not opting for both these factors influencing success of business is high at

87.3 percent. The percent of respondents opting for personal traits and business tactics both as crucial success factors is a low 7.3 percent. This shows that there exists a negative correlation between these factors.

It can be understood from the above analysis that as these two factors are close in nature the respondents have opted only one of them instead of both.

6.12 Failure factors

The various factors leading to failure are grouped into different categories viz.

1) Environmental factors- Including holidays, competitors, place, extreme weather conditions, police torture, high rates, no customers, lack of permanent place, theft of products, lack of luck and fate

2) Product related factors- Including poor quality, lack of hygiene, tasteless, improper material, input cost, no brand value, perishable goods, less margin

3) Personal Traits- Disinterested in business, less hard work, bad habits, lack of commitment, cheating habit, careless spending, lack of physical fitness, impatience, irresponsible, lack of seriousness, careless, drinking, lack of experience

4) Business tactics- Poor pricing strategy, lack of planning, lack of talent, not treating customers properly, lack of time mgmt, If ware is not sold on that day, improper relations with customers, improper people management, poor marketing, unable to build customer loyalty, poor demand forecasting, lack of knowledge in business, unable to attract customers, lack of flexibility Table 6.12 : Failure factors based on choice of one option

Valid Environmental factors 82 10.3 31 10.3

Product related factors 44 5.5 17 15.8

Personal Traits 82 10.3 31 26.0

Business Tactics 58 7.3 22 33.3

No answer 534 66.8 100.0 100.0

Total 800 100.0

Table 6.11 reveals that Environmental factors and Personal Traits each have been given equal weight age by the respondents of 31 percent in terms of failure factors. Product related factors and Business Tactics are 17 percent and 22 percent.It can be seen that while examining Product related factors and Business Tactics

they are seen to be more influential and preferred in terms of success factors whereas they are less influential in the case of failure factors. Thus it can be interpreted that Environmental factors such as holidays, competitors, place, extreme weather conditions, police torture, high rates, no customers, lack of permanent

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place, theft of products, lack of luck and fate and Personal Traits such as disinterested in business, less hard work, bad habits, lack of commitment, cheating habit, careless spending, lack of physical fitness, impatience, irresponsible, lack of seriousness, careless, drinking, lack of experience are described to be more influencing once failure in this business. In the case of unsuccessful vendors, some research studies indicated contributing factors such as lack of family support, lack of capital, and having dependent children (Loprayoon, 1991; and Nirathron, 1996).²

6.12 Failure factors

The data related to respondents opting various factors leading to failure with more than one option by each respondent is presented in table 6.12

Table 6.12 : Failure factors based on choice of more than one option

Failure factors Frequency Percent Valid Percent Environmental

factors

94 52

11.8 6.5

31 17

Product related factors

Personal Traits Business Tactics No answer Total

98 62 530 836

12.3 7.8 66.8

32 20 100.0

Note: Responses are not mutually exclusive

Table 6.12 shows that similar situation is prevailing in the case of failure factors opted more than one category by each respondents with Environmental factors and Personal Traits corresponding to 31 and 32 percent. In the case of Product related factors and Business Tactics the preference of respondents is lesser (17 percent and 20 percent respectively) when compared to Environmental factors and Personal traits

6.13 Association between Failure factors- Personal Traits and Failure factors- Business Tactics

The data related the respondents of the variables related to Failure factors- Personal Traits and Failure factors- Business Tactics is presented in table 6.13

Table 6.13 : Failure factors Personal Traits and Failure factors Business Tactics

Failure fac Business Tactics Total

Yes No No answer

Failure fac Personal Traits

Yes Count 6 92 0 98

% within Failure fac Personal Traits 6.1% 93.9% .0% 100.0%

No Count 56 116 0 172

% within Failure fac Personal Traits 32.6% 67.4% .0% 100.0%

% within Failure fac Personal Traits .0% .0% 100.0% 100.0%

Total Count 62 208 530 800

% within Failure fac Personal Traits 7.8% 26.0% 66.3% 100.0%

Table 6.13 depicts that the percent of respondents opting for only personal traits as a failure factor is a high 94, the percent opting for both personal traits and business tactics as failure factors are a low 6.The percent opting for business tactics as a failure factor is around 33.

It can therefore be concluded from the above analysis that personal traits are more influential as a failure factor than business tactics.

Testing the relationship between Failure factors ,Personal Traits and Business Tactics Hypothesis testing

The following hypothesis is formulated to determine the statistical likelihood that the data reveal true differences Hypothesis: H₀- Failure factors Personal Traits and Failure factors Business Tactics

H1- Failure factors Personal Traits and Failure factors Business Tactics

Results of Chi-Square Test

Chi-Square Tests

Value df Asymp.

Sig. (2- sided) Pearson Chi-Square

Likelihood Ratio Linear-by-Linear Association N of Valid Cases

436.538^a 525.870 393.067 800

4 4 1

.000 .000 .000

a. 1 cells (11.1%) have expected count less than 5. The minimum expected count is 3.80.

Significance level: Let α =0.05 Calculated value= 436.538^a d.f= 4

Critical test value= 9.49

Interpretation: The calculated value is greater than the critical value, the null hypothesis is rejected

(11)

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That means we accept the alternate hypothesis which states that Failure factors Personal Traits and Failure factors Business Tactics are related, we can judge that the values are statistically significant.

CONCLUSION:

Success factors of Street Vendors - Environmental factors , Product related, Personal traits, Business tactics-Environmental factors , Product related, Personal Traits, Business Tactics each have been given equal weight age by the respondents in terms of success factors. Skills of the person has been given little less weight age in terms of its contribution to success. This is in consolidation of the views expressed by various respondents who felt anybody could succeed in this trade by virtue of its inherent features of being low investment, high flexibility and low risk is in conformity with these results.

Failure factors- From the analysis it is found that Environmental factors and Personal Traits each have been given equal weight age by the respondents of 31 percent in terms of failure factors. Product related

factors and Business Tactics are corresponding to 17 percent and 22 percent respectively. Thus it can be interpreted that Environmental factors such as holidays, competitors, place, extreme weather conditions, police torture, high rates, no customers, lack of permanent place, theft of products, lack of luck and fate and Personal Traits such as disinterested in business, less hard work, bad habits, lack of commitment, cheating habit, careless spending, lack of physical fitness, impatience, irresponsible, lack of seriousness, careless, drinking, lack of experience are described to be more influencing once failure in this business.

REFERENCES

[1] Babb, Florence E. (1989). Between Field and Cooking Pot: The Political Economy of Market Women in Peru. Revised ed. Texas: University of Texas Press

[2] Ilo (2006),Fighting Poverty from the Street, A Survey of Street Food Vendors in Bangkok Narumol Nirathron, PhD

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