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Entrepreneurial barriers and success factors of women in utility Entrepreneurial barriers and success factors of women in utility Document Transcript

  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)310ENTREPRENEURIAL BARRIERS AND SUCCESS FACTORS OFWOMEN IN UTILITY SERVICE BUSINESSES*Mrs.R.Malarvizhi & Dr.Y.Lokeswara Choudary***Research Scholar, School of Management, SRM University, Chennai-203.**Asst.Professor & Research Guide, Indian Maritime University, (A CentralUniversity),ECR, Uthandi, Chennai-119.1. ENTREPRENEURSHIP: CONCEPTThe concept of entrepreneurship and its theory have evolved over more than twocenturies. However, in the long transition during which a society evolves from tribalism toself-sustained economic growth, the closely woven political, social and economic strands ofthe social fabric change their pattern and their relationships. So also, the concept ofentrepreneurship in plural and socially stratified societies like India is more difficult andintriguing. However, in this paper an attempt is made to brief out the ideas and philosophiesof various authorities on the vital and dynamic concept like entrepreneurship. The word‘entrepreneur’ first appeared in the French language and was applied to leaders of militaryexpeditions in the beginning of sixteenth century. Later on, it was extended to cover otheractivities like agriculture, engineering, etc. in fact, Richard Cantillon, an Irishman living inFrance, was the first person to use the term ‘entrepreneur’ to refer to economic activities. Hedefined entrepreneur as “the agent who purchase means of production in order to combinethem to produce a product to sell prices that are uncertain at the moment at which he commitshimself to his cost”.2. THEORIES OF ENTREPRENEURSHIPMax Weber’s social change Theory of Entrepreneurship: The core aspect of the Weberiantheory of social change consists in his treatment of the protestant ethic and the spirit ofcapitalism. He said that the inducement of profit results in greater number of businessenterprises and complete re organization of the industry occur.Everett E.Hagen’s Theory of Social Change: Hagan made an attempt to formulate a theoryof social change, which explains how a traditional society becomes one in which continuousINTERNATIONAL JOURNAL OF MANAGEMENT (IJM)ISSN 0976-6502 (Print)ISSN 0976-6510 (Online)Volume 4, Issue 2, March- April (2013), pp. 310-320© IAEME: www.iaeme.com/ijm.aspJournal Impact Factor (2013): 6.9071 (Calculated by GISI)www.jifactor.comIJM© I A E M E
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)311technical progress takes place. He supports the idea that economic growth occurs intur wovenwith political and social change. Besides, he rejected the idea that the solution to economicunder development lies in imitating Western technology.Thomas Cochran’s Sociological Theory of Entrepreneurial Supply: Cochran propoundeda sociological theory of entrepreneurial supply. The basic assumption is that fundamentalproblems of economic development are non-economic. He emphasizes that cultural values,role expectation and social sanctions are the key elements that determine the supplyentrepreneurs.Psychological Drive Theory: Kilby observed that psychological drive for pecuniary (desireto maximize profits) is an exogenous factor taken to be given which is supposed to beoperative in all societies. He further was of the opinion that profit motive combined with aparticular definition of entrepreneurial role provides the highly elastic supply ofentrepreneurial services.3. BUSINESS ENVIRONMENT AND ENTREPRENEURSHIPA prerequisite for nurturing Entrepreneurship is the creation of a favourable businessenvironment. This goal is at the heart of India’s economic liberalization initiatives. The keyparameters of a conducive business environment include smooth flow of information; ease ofstarting a business and obtaining various clearances and permits; ease of filling taxes; anefficient legal system; enabling legislations and regulations; absence of corruption; andworld-class infrastructure facilities.4. REVIEW OF LITERATURETara (2001) has examined the issue in institutionalizing microfinance in India. Thestudy period was from 1995 to 2001. The study emphasizes the evaluation of the relevance of‘microfinance perspective’ to poverty improvement. The findings of the study suggest thatentrepreneurship is a reasonably a good solution to help low-income women, including thosewho are transitioning off welfare, to become more economically self-sufficient. Manimegalai(2000) has analyzed the performance of Self-Help Group (SHG) after describing theobjective, composition and functions of a SHGs. The author found that the SHG women arewidely engaged in retail marketing of agricultural and rural products both at village and urbancenters. Parthasarathy and kalyani (1995) studied the economic impact of women’s thrift andcredit society. This study was focused on access to credit, cost of credit, savings, productionand quality of life. The studies indicated the performance and the approaches of creditprogrammers in India. Dadhichi (2001) has conducted a research on the evaluation of theperformance of SHG entrepreneurs, who were sponsored by Oriental Bank Group Project(OBGP). The study concluded that women who had taken subsidiary occupations improvedtheir incomes, which resulted in their economic and social empowerment. Repayment patternof the people is high because of the positive incentive for higher loans repayment.5. RESEARCH METHODOLOGYStatement of the problem: Entrepreneurship is something should be taken up with passionand courage. It also requires some special skills like doing things preplanned, innovative wayand with lot of care and professionalism. The present study is focused on entrepreneurial
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)312barriers and success factors in utility services business in Chennai city. The present study isselected to focus on wide range of utility services engaged by women as an entrepreneurialventures and study comprehensive issues associated with those and identifying successvariables. Hence, it is further a value addition to the existing literature and gives broadunderstanding on entrepreneurial barriers and success factors in utility services business inChennai city.OBJECTIVES OF THE STUDY1. To identify the issues and challenges of women entrepreneurs in utility servicebusinesses.2. To study the factors motivating the women, to start a business.3. To find out the success factors of women entrepreneurs in the sample area.4. To assess the relationship between demographical variables of women and problemsfaced and success in business.Conceptual frame workScope of the study: The study covers only the entrepreneurs operating in Chennai. All theseentrepreneurial firms are owned and operated as sole proprietorship concerns. In utilityservices competition ods emerging from corporate brands, but still , this business isdominated by reasons like cost economies and proximity to the residents. In addition, thetrust factor is less on corporate entities with regard to personalized utility services. Word of
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)313mouth advertisements are better worked in utility services business rather than media ads.The study covers ten types of utility services like Child care and Day care , Beauty carecenters, LIC agency , Tailoring and decorative paintings, Playschool/ nursery school, Currierservices, Small savings agency, DTP, Xerox and Typing centres, Telephone, STD and CellRecharge and Catering and event management. These are all requires lot of specialized skilland passion to take up and do in a professional way. These services can have direct reflectionfrom the customers. The study covers the whole Chennai.Methodology: The study adopted both descriptive and exploratory research methods. Dataextraction from the women entrepreneurs in the utility services business is collected througha structured questionnaire and personal interview method. For the purpose of survey, womenentrepreneurs are met in person and tried to explain the need for the study. In some occasions,SHG groups also involving in such businesses, but not included in the study. The referenceswere taken from women associations, banks, training centers, district revenue office, blockdevelopment cell, and utility service providers associations. The sample is collected from theentire city, by notifying the prominent places in the city. The equal distribution is not ensuredand location importance or priority is not given. The time, cost and proximity to the topic isconsidered while collecting the data. Modern utility cum health care services centres like Spa,ultra modern saloons are exempted from the study. In a similar way franchisee pre schools,nursery schools and day care centers are exempted due to influence of brand and corporateimage.Sources of data: The data required for the study is collected from both primary andsecondary sources. The primary data collection is done through structured questionnaireprepared on the basis of review of literature and the variables were selected from those. Thesecondary data is collected from both print and electronic media.Data collection tools and reliability: The data required for the analysis is collected from thewomen entrepreneurs in the sample area through a structured questionnaire. The structuredquestionnaire is prepared on the basis of review of literature and in consultation with thewomen entrepreneurs in the utility services business. Initially, a rough draft of thequestionnaire is prepared pilot study is conducted with 70 questionnaires. The reliability ofthe instrument is tested through Corn Bach, Alpha and the value is recorded at 0.92 and foundreliable. The individual sections also tested through the same and presented in the followingtable.Sample frame and method: The sample size is determined by using the scientific menthod,by using the pilot study standard deviation of the sample of 70 respondents, by allowing thestandard error at 5% level. The sample size was determined by using the following formula.Sample Size (N)= (ZS/E)2=478.Frame work of study:: The data collected from the women entrepreneurs through astructured questionnaire is tabulated by using MS-Excel spread sheets and uploaded in toSPSS master data sheet and labeled the variables in a clear manner. Later the descriptivestatistical tool frequency analysis is made to calculate and grouping the entrepreneurs on thebasis of demographical variables. Similarly, for the questions following likert’s scale meanvalues are calculated to measure the significance. In part two of the analysis, inferentialstatistical tools is used to establish the relationship between the demographic variables andthe barriers faced, entrepreneurial gaps, success factors, motivating factors of womenentrepreneurs in the utility services business in the sample area.
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)3146. DATA ANALYSIS AND RESULTS DISCUSSIONTable 6.1: Distribution of sample on the basis of Demographical profile of the women inutility services industryWork experience. Trainingstatus N %Nature of business N %No work experience134 28.0Unregisteredproprietorship116 24.3Not in the relevant field 62 13.0 Registered Proprietorship 72 15.1Basic training is given 34 7.1 Unregistered Partnership 29 6.1Intensive training is taken 87 18.2 Registered Partnership 35 7.3Work is relevant to study 161 33.7 Private Ltd 162 33.9Total 478 100.0 SHG Model 64 13.4Total 478 100.0Year of establishment Reason for starting businessBefore 2000 36 7.5 Employ and engage my self 97 20.32000-2005 38 7.9 Financial empowerment 117 24.52006-2010 254 53.1 Gain business knowledge 177 37.0After 2010 150 31.4 Use the learning skills 49 10.3Total 478 100.0 Employment avenue 38 7.9Annual turnover No of employees workingBelow Rs.50000 284 59.4 No employees 307 64.2Rs.50001-Rs.100000 166 34.7 Below 5 137 28.7Above Rs.100000 28 5.9 Above 5 34 7.1Total 478 100.0 Total 478 100.0Type of business Sources of working capitalChild care and Day care124 25.9Savings and businessrevenue56 11.7Catering and event management 103 21.5 Spouse and family funds 66 13.8Tailoring and decorativepaintings91 19.0Friends and relatives154 32.2Beauty care centers 91 19.0 Private finance 164 34.3Others 69 14.4 Banks 38 7.9Total 478 100.0 Total 478 100.0Initial capital invested Location of businessBelow Rs.25000 181 37.9 Commercial area 149 31.2Rs.25001-Rs.50000 174 36.4 Residential area 194 40.6Rs.50001-Rs.75000 83 17.4 Township 135 28.2Above Rs.75000 40 8.4 Total 478 100.0Total 478 100.0Based on the table 6.1, it is observed that, majority of the women entrepreneurs are selectingthe business relevant to their study (33.7 percent); The number of women ventured intobusiness is between 2006-2010. It can be called as golden period for women entrepreneurial
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)315ventures. One key observation is 60 percent of the utility service businesses run by womenentrepreneurs are reported very low level of annual turnover of below Rs.50000 among thesample. Child care and day care centres occupy the major choice of utility service firms in thesample area. 34 percent of the firms registered as private limited firms and 64 percent of thefirms have no employees, and started with an intention to gain business knowledge. This is apeculiar demographical profile of the women in entrepreneurs in the sample area.Table 6.2: Showing the relationship between the nature of business and the dimension ofwomen entrepreneurial success in utility services industry along with ANOVA resultsDimension of womenentrepreneurial successNature of businessURP RP UPR RPR PVTL SHGF-valuePvalueEntrepreneurialclimateMean21 23 20 20 20 20 5.7810.000**SD(3.23) (2.02) (3.10) (3.60) (1.80) (1.80)EntrepreneurialGapsMean66 62 72 67 67 67 9.9560.000**SD(4.92) (3.87) (5.16) (5.78) (5.65) (5.65)SupportivemeasuresMean85 71 64 77 86 86 8.6030.000**SD (17.16)(28.07)(14.14)(23.65)(15.76)(15.76)Motivation Mean61 62 57 59 59 59 13.8230.000**SD(5.13) (1.19) (3.02) (5.34) (2.59) (2.59)Success factors Mean32 33 31 31 29 29 10.4440.000**SD(2.49) (2.29) (3.33) (3.02) (2.46) (2.46)Suggestions toimprove thesuccess rateMean71 71 60 64 65 65 8.0320.000**SD(4.89) (4.48)(15.48)(12.18)(10.50)(10.50)URP-UnregisteredproprietorshipRP-RegisteredProprietorshipUPR-UnregisteredPartnershipRPR-RegisteredPartnershipPVTL-Private LtdSHGModelSince p value is less than 0.001, the null hypothesis there is no relationship between thenature of business and the women entrepreneurial success in utility services industry isrejected at 1% level of significance. Hence, it is inferred that, hypothesis there is arelationship between the nature of business and the women entrepreneurial success in utilityservices industry. Based on the mean value, it is observed that, registered proprietorship firms
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)316are highly motivated entrepreneurs and gave many suggestions for the success of the womenin utility services industry. High level of entrepreneurial gaps is observed among unregisteredpartnership firms. Private limited firms and SHG model firms are getting more supportingmeasures form different sources among the sample. The over all success is observed at highamong the registered proprietorship firms among the sample.Table 6.3: Showing the relationship between Type of business and the dimension ofwomen entrepreneurial success in utility services industry along with ANOVA resultsType of business runningCCDC CEM TDP BCC OTF-VALUEPVALUEEntrepreneurial climate Mean22 21 20 20 22 7.146 .000SD(3.20) (2.61) (3.00) (2.78) (3.20)Entrepreneurial Gaps Mean67 67 68 70 67 15.056 .000SD(7.64) (5.35) (5.02) (5.01) (7.64)Supportive measures Mean75 75 78 88 75 7.956 .000SD(19.87) (25.07) (22.27) (17.15) (19.87)Motivation Mean59 59 60 64 59 11.281 .000SD(4.29) (2.90) (3.97) (7.16) (4.29)Success Factors Mean31 31 31 32 31 3.324 .011SD(2.71) (3.23) (3.35) (3.10) (2.71)Suggestions to improve the successrateMean65 65 70 64 65 3.678 .006SD(12.47) (10.96) (8.71) (12.55) (12.47)CCDC- Child care and Day care; CEM- Catering and event management; TDP- Tailoring anddecorative paintings; BCC- Beauty care centers; OT- OthersBased on the p value, the null hypothesis, there is no relationship between Type ofbusiness and the dimension of women entrepreneurial success in utility services industry isrejected (p value is less than 0.001). Hence, it is inferred that, there is a relationship betweenType of business and the dimension of women entrepreneurial success in utility servicesindustry. Based on the mean value, it is noted that the beauty care centres are having highlevel of motivation, supportive measures and success along with the entrepreneurial gapsamong the sample area. It is concluded that the beauty care centres re the prime utility servicebusiness sin the sample area.
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)317Table 6.4: Association between work experience and success rate among the women inutility services industryWork experience / Training statusLevel of successCHI-value P valueLow Average HighNo work experience Count34 41 59109.565 0.000**% within Workexperience25.4% 30.6% 44.0%% within Level ofsuccess 18.5% 25.6% 44.0%Not in the relevantfieldCount15 20 27% within Workexperience24.2% 32.3% 43.5%% within Level ofsuccess 8.2% 12.5% 20.1%Basic training is given Count5 28 1% within Workexperience14.7% 82.4% 2.9%% within Level ofsuccess 2.7% 17.5% .7%Intensive training istakenCount37 17 33% within Workexperience 42.5% 19.5% 37.9%% within Level ofsuccess 20.1% 10.6% 24.6%Work is relevant tostudyCount93 54 14% within Workexperience57.8% 33.5% 8.7%% within Level ofsuccess 50.5% 33.8% 10.4%Since the p value is less than 0.001, the null hypothesis there is no association between workexperience and success rate among the women in utility services industry is rejected at 1%level of significance. Hence, it is inferred that, there is an association between workexperience and success rate among the women in utility services industry. Based on meanvalue high level of success is observed among the no work experience category of womenentrepreneurs among the sample. Further it is inferred that the entrepreneurs engaging workrelevant to study observed low and average level of success rate in the business.
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)318Table 6.4: Association between Nature of business and success rate among the women inutility services industryNature of businessLevel of successLow Average HighCHI-valueP valueUnregisteredproprietorshipCount26 45 4593.140 0.000**% within Nature ofbusiness22.4% 38.8% 38.8%% within Level ofsuccess14.1% 28.1% 33.6%RegisteredProprietorshipCount14 42 16% within Nature ofbusiness19.4% 58.3% 22.2%% within Level ofsuccess7.6% 26.3% 11.9%UnregisteredPartnershipCount0 16 13% within Nature ofbusiness.0% 55.2% 44.8%% within Level ofsuccess.0% 10.0% 9.7%Registered Partnership Count 17 4 14% within Nature ofbusiness48.6% 11.4% 40.0%% within Level ofsuccess9.2% 2.5% 10.4%Private Ltd Count 88 36 38% within Nature ofbusiness54.3% 22.2% 23.5%% within Level ofsuccess47.8% 22.5% 28.4%SHG Model Count 39 17 8% within Nature ofbusiness60.9% 26.6% 12.5%% within Level ofsuccess21.2% 10.6% 6.0%Since p value is less than 0.001, the null hypothesis, there is no Association between Natureof business and success rate among the women in utility services industry is rejected at 1%level of significance. Hence, it is inferred that, there is an Association between Nature ofbusiness and success rate among the women in utility services industry. Based on the meanvalue, it is observed that, unregistered proprietorship firms are observed high level of successin utility services industry.
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)319Table 6.5: showing association between Reason for starting business and success rateamong the women in utility services industryReason for starting abusiness Level of successLow Average HighCHI-value P valueEmploy and engage myselfCount24 48 25127.632 0.000**% within Reason for starting abusiness24.7% 49.5% 25.8%% within Level of success 13.0% 30.0% 18.7%Financial empowerment Count 31 30 56% within Reason for starting abusiness26.5% 25.6% 47.9%% within Level of success 16.8% 18.8% 41.8%Gain business knowledge Count 116 45 16% within Reason for starting abusiness65.5% 25.4% 9.0%% within Level of success 63.0% 28.1% 11.9%Use the learning skills Count 9 14 26% within Reason for starting abusiness18.4% 28.6% 53.1%% within Level of success 4.9% 8.8% 19.4%Employment avenue Count 4 23 11% within Reason for starting abusiness10.5% 60.5% 28.9%% within Level of success 2.2% 14.4% 8.2%Since p value is less than 0.001, the null hypothesis, there is no association betweenReason for starting business and success rate among the women in utility services industry isrejected at 1 % level of significance. Hence, it is concluded that, there is an associationbetween Reason for starting business and success rate among the women in utility servicesindustry. Based on the mean value, it is noted that, high level of success is observed amongthe women engaged business with an intention to get financial empowerment among thesample.7. SUMMARY AND CONCLUSIONA prerequisite for nurturing Entrepreneurship is the creation of a favorable businessenvironment. This goal is at the heart of India’s economic liberalization initiatives. The keyparameters of a conducive business environment include smooth flow of information; ease ofstarting a business and obtaining various clearances and permits; ease of filling taxes; anefficient legal system; enabling legislations and regulations; absence of corruption; andworld-class infrastructure facilities. The present study finds that, majority of the womenentrepreneurs are selecting the business relevant to their study(33.7 percent); The number ofwomen ventured into business is between 2006-2010. It can be called as golden period forwomen entrepreneurial ventures. One key observation is 60 percent of the utility servicebusinesses run by women entrepreneurs are reported very low level of annual turnover ofbelow Rs.50000 among the sample. Child care and day care centres occupy the major choice
  • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)320of utility service firms in the sample area. 34 percent of the firms registered as private limitedfirms and 64 percent of the firms have no employees, and started with an intention to gainbusiness knowledge.Registered proprietorship firms are highly motivated entrepreneurs and gave manysuggestions for the success of the women in utility services industry. High level ofentrepreneurial gaps is observed among unregistered partnership firms. Private limited firmsand SHG model firms are getting more supporting measures form different sources amongthe sample. The over all success is observed at high among the registered proprietorship firmsamong the sample. High level of success is observed among the no work experience categoryof women entrepreneurs among the sample. Further it is inferred that the entrepreneursengaging work relevant to study observed low and average level of success rate in thebusiness. Unregistered proprietorship firms are observed high level of success in utilityservices industry. And finally, high level of success is observed among the women engagedbusiness with an intention to get financial empowerment among the sample.8. REFERENCES[1] Burcher (2002), “Use and applicability of capacity planning methods." Production andInventory Management Journal American Production and Inventory Control SocietyInc. 2002.[2] Jonsson and Mattsson(2001) “The Implication of Planning Environments on theSuccess of Manufacturing Planning and Control Methods” Proceedings of the TwelfthAnnual Conference of the Production and Operations Management Society, POM-2001, March 30-April 2, 2001, Orlando Fl.[3] Silver (1998), “Reengineering materials management – A case study on an Indianrefinery” Business Process Management Journal, Vol. 7 No. 5, 2001,pp. 394-408. #MCB University Press, 1463-7154.[4] Bell, C.L. and Stukhart, G. (1986), “Attributes of materials management system’’,Journal of Construction Engineering and Management, Vol. 112 No. 1, pp. 14-21.[5] Talwar R. (1993), “Business re-engineering a strategy driven approach’’, Long RangePlanning, Vol. 26 No. 6, pp. 22-40.[6] Hammer M. and Champy, J. (1993), Re-engineering the Corporation a Manifesto forBusiness Revolution, Harper Business, New York, NY.[7] Short (1990), “The new industrial engineering: information technology and businessprocess redesign”, Thesis published in Solan Management Review, summer 4, Vol.31,No.4.[8] Saranya R and Muthumani S, “Employee Retention Strategy is the Way of Victory inthe Modern it Industry for Women - A Study”, International Journal of Management(IJM), Volume 3, Issue 2, 2012, pp. 192 - 197, ISSN Print: 0976-6502, ISSN Online:0976-6510.[9] D.Shanthi Revathi and Dr. Jayasree Krishnan, “Problems and Opportunities of WomenEntrepreneurs Faced in the Globalized Economy”, International Journal of Management(IJM), Volume 3, Issue 1, 2012, pp. 77 - 81, ISSN Print: 0976-6502, ISSN Online:0976-6510.