IJMDS. Vol.1, No.2 July-2013

Volume 1, Number 2, July, 2013 ISSN 2321-1423
International Journal of Management and Development Studies
(A Double-blind Peer Reviewed Quarterly Journal)
Satvinder Kaur Trends in Production and Productivity of Pulses in Punjab
N. Savitha
A. Sangamithra
Enrolment of Health Insurance Schemes for Industrial Workers in
Coimbatore – An Awareness Profile
S. Amutha Awareness of Medicinal Plants in Tamil Nadu Among the Post
Graduate Teachers of Biology in Tiruchirappalli District
M.V.K. Srinivasa Rao
B. Omnamasivayya
The Key Success Factors and Profitability: A Case Study on
Micro Small and Medium Enterprises
V. Darling Selvi Environmental Concern of Indian Paper Industry
Srinivasulu Bayineni
S. Mahaboobu Basha
Development of Micro, Small and Medium Enterprises
(MSMEs): The Engine of Economic Growth
K. Rajaselvi
P. Chellasamy
The Level of Satisfaction of the Policyholders on the Service
Offered By Public and Private Life Insurers in Nilgiris District
Mushtaq Ahmad Bhat
Aaijaz Ahmad Bhat
Relationship Marketing in Indian Banks: An Empirical
Assessment
Tadele Mamo
Tewodros Tefera
Factors Affecting Milk Market Outlet Choices of Urban and Peri-
urban Dairy Producers in Welmera Woreda, West Shewa zone of
Oromia Regional State, Ethiopia
S. Ramanathan
M. Jaya
Perception analysis on Job Satisfaction and Motivation of
Employees in Indian I.T. Industry
R.Nirmala Devi
D.Vijayalakshmi
The Determinants of Corporate Leverage A Study on Indian
Chemical Sector
H.S.Praveen kumar
G.Ravi
Finances and Fund Flow in Chitradurga Zilla Panchayat in
Karnataka state
Sanchit Kishan
Sri Sathyanarayanan G
Anand Narayanamoorthy
Badri Toppur
Business Process Optimization in Fuel Stations

(A Double-blind Peer Reviewed Quarterly Journal)
Editor
Balu. A
Associate Editors
A. Udhayakumar, Government Arts College, Tiruvannamalai, India
R. Sangeetha, Loyola College, Chennai, Tamil Nadu, India
Editorial Advisory Board
R. Dayanandan, Hawasa University, Ethiopia
R. Shashi Kumar, Bangalore University, Bangalore
R. Azhagaiah, Kanchi Mamunivar Centre for Post-Graduate Studies, Pondicherry
P. Mariappan, Bishop Heber College, Tiruchirappalli, Tamil Nadu
S. Amutha, Bharathidasan University, Tiruchirappalli, Tamil Nadu
A. Pandu, Pondicherry University Community College, Pondicherry
C. Subburaman, Annamalai University, Tamil Nadu
M. Jaya, Asan Memorial College of Arts and Science, Chennai, Tamil Nadu.
Manager-Production and Circulation
A. Anthony Muthu
Copyright
Copyright of material published in the journal rests with the authors concerned. The views
expressed here are of the authors and not of the publisher.
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without written permission by the publisher.

A Double-blind Peer Reviewed Quarterly Journal
Volume 1 Number 2 July 2013
Contents
Articles
Trends in Production and Productivity of Pulses in Punjab Satvinder Kaur 1
Enrolment of Health Insurance Schemes for Industrial
Workers in Coimbatore – An Awareness Profile
N. Savitha &
A. Sangamithra
9
Awareness of Medicinal Plants in Tamil Nadu Among the
Post Graduate Teachers of Biology in Tiruchirappalli District
S. Amutha 19
The Key Success Factors and Profitability: A Case Study on
Micro Small and Medium Enterprises
M.V.K. Srinivasa Rao &
B. Omnamasivayya
27
Environmental Concern of Indian Paper Industry V. Darling Selvi 38
Development of Micro, Small and Medium Enterprises
(MSMEs): The Engine of Economic Growth
Srinivasulu Bayineni &
S. Mahaboobu Basha
49
The Level of Satisfaction of the Policyholders on the
Service Offered By Public and Private Life Insurers in
Nilgiris District
K. Rajaselvi &
P. Chellasamy
59
Relationship Marketing in Indian Banks: An Empirical
Assessment
Mushtaq Ahmad Bhat &
Mr.Aaijaz Ahmad Bhat
71
Factors Affecting Milk Market Outlet Choices of Urban and
Peri-urban Dairy Producers in Welmera Woreda, West Shewa
zone of Oromia Regional State, Ethiopia
Tadele Mamo &
Tewodros Tefera
85
Perception analysis on Job Satisfaction and Motivation of
Employees in Indian I.T. Industry
S. Ramanathan &
M. Jaya
99
The Determinants of Corporate Leverage A Study on Indian
Chemical Sector
R. Nirmala Devi &
D.Vijayalakshmi
104
Finances and Fund Flow in Chitradurga Zilla Panchayat in
Karnataka state
H.S.Praveen kumar &
G.Ravi
114
Business Process Optimization in Fuel Stations Sanchit Kishan,
Sri Sathyanarayanan G,
Anand Narayanamoorthy &
Badri Toppur
120

International Journal of Management and Development Studies, Vol.1, No. 2, July 2013 1
Trends in Production and Productivity of Pulses in Punjab
Satvinder Kaur
Abstract: This study aims to examine the trends in area, production and yield of pulses related
to the period from 1970-71 to 2010-11 for India in general and Punjab in particular. Despite
being the cheapest as well as richest source of protein, enriching the soil fertility, increasing the
soil organic matter and improving the soil structure and having a significant positive impact on
green house gas emissions, the area under pulses and production and yield of pulses
continuously decreasing since 1970’s. Both the Agriculture Development Model (Green
Revolution) of mid-sixties which transform the country's image from a food grain deficit nation
to a self-sufficient and stable economy and New Economic Policy of early 1990’s have not been
proved beneficial for the pulse crop. The results show that at the all India level, the production
of pulses grew at a dismal rate of 0.6 per cent per annum whereas pulse production revealed a
negative growth of 7.75 per cent per annum in Punjab during the study period. The main
attributed factor of declining tendency of pulses is found to be significant fall in area under the
crop with poor and marginal increase in the yield rates. The results concluded that the pre-
reform period (1970-71 to 1990-91) was far better than the post-reform period (1991-92 to
2010-11) as far as growth of area and production of pulses in Punjab is concerned. The study
suggests for diversify the cropping pattern through development of agro-industrial pulse products
and pulse processing industries in the state and encouragement to the farmers to increase allocation of
area under the crop. More so, assignment of quota for pulse crop to each Punjab’s farmer under assured
procurement and minimum support price programme will ensure a gradual and painless reduction in
area under wheat and paddy.
Introduction
Pulses are the cheapest as well as richest source of protein for the mass of the people in India.
The importance of pulses as food, fodder and manure, is immense. Most pulses contain a higher
percentage of protein as compared to even superior cereals like wheat and rice which have only
11.8 per cent and 8.5 per cent of protein content, pulses like gram, urad and masur contain 17.1,
24.0 and 25.1 per cent respectively. They are not only rich in protein but also in carbohydrate,
fibre, vitamin B and low in fat which is mostly of the unsaturated kind. Apart from the
nutritional aspect of the pulses, they occupy an important place in the crop sequence, inter-
cropping and as a crop mixture in different regions of the country. Pulses enrich the soil fertility
by fixing atmospheric nitrogen in the root nodules and improve soil structure. The tap root
system opens the soil into deeper strata and heavy leaf protein increases the soil organic matter
and improves the soil structure. The inclusion of pulse crops in rotation with cereal and oilseed
crops is considered to have a significant positive impact on green house gas emissions, given the
absence of fertilizer 'N' in pulse crop production.
India is the world's largest pulse producer accounting for 27-28 per cent of global pulse
production and harvests between 12-15 million tones of pulses each year. There were 23282 (000’
hectares) of area under pulses in 2009-10 as against 22543 (000’ hectares) in 1991-92 and 1970-71 and
the production was 14661, (000’ metric tonnes), 12015 (000’ metric tonnes) and 11818 (000’metric
tonnes) respectively for these years, whereas the yield rates are 629 (kg/hectare), 532 (kg/hectares) and

Satvinder Kaur
2 International Journal of Management and Development Studies, Vol.1, No. 2, July 2013
524 (kg/hectares) for the same years. The principal growing states are Karnataka, Tamil Nadu,
Madhya Pradesh, Andhra Pradesh, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Rajasthan. In
general, pulses are grown in two seasons, one in the warm, rainy period (May-October) and other
in the cool, dry season (November-April). They are largely cultivated in dry-lands during the
winter seasons.
Despite being the largest producer of the largest varieties of pulses, the demand for
consumption of pulses is growing. The causes behind increase in demand of pulses are
continuous and sharp increase in population and its characteristics of cheapest source of diet and
protein. On the supply side, its yield is static, growth is slow and a number of marketing
problems are there. Due to this demand supply imbalance, the country is importing a large
amount of pulses to meet the growing domestic needs. During 2007, India imported 2.79 million
tonnes of various pulses, especially from the countries like China, Canada, Australia and
Myanmar. This has led to a spurt in the prices of pulses (Honalli, 2009).
Punjab has played a vital role in transforming the country's image from a foodgrain
deficit nation to a self-sufficient and stable economy due to use of modern technology (Economic
Survey of Punjab, 2009-10). Agriculture sector continues to be an important driver in the state
economy. The progress made by the agriculture sector in the state of Punjab since adoption of
Agriculture Development Model of 1966-67 commonly known as green revolution, is so well
known that one need not cite any statistics to prove this point. The total food grain production in
Punjab has significantly increased over the last few decades, especially in the post green
revolution period. The notable achievement is reflected in the five-fold increase in the index of
production of cereals during the period 1960-61 to 1982-83 (Grewal and Rangi, 1983). The state
with only 1.54 per cent of geographical area produced 12.36 per cent of food grains, about 18.77
per cent of wheat and 12.61 per cent rice in the country (Statistical Abstract of Punjab, 2010-11).
But the future may not held the production possibilities realised earlier since these achievements
are indeed creditable but there is no reason for complacency. Pulses which are an important part
of farming household consumption lost its ground since the introduction of new technology. The
new technology shifted the cropping pattern from mixed crops towards the mono-culture (wheat-
paddy cycle) crops. The government policies like of the announcement of procurement prices and
minimum support price played a positive part for such increase. The proper marketing facilities
also played an important role for wheat and rice revolution in Punjab. The diverse cropping
pattern existing in the early Sixties is now restricted to a few specialized crop enterprises. The
cereal crops in particular have come to claim a large percentage of the total cropped area whereas
the area under pulses has declined. The area under cereals increased from 45.65 per cent in 1960-
61 to 73.80 per cent in 1991-92 and 82.26 per cent in 2010-11 of the total cropped area. On the
other hand, the area under pulses declined from 19.08 per cent to 1.20 per cent and 0.25 per cent
during the same period respectively. Among cereals, rice during Kharif and wheat during Rabi
occupy a place of prominence in the cropping pattern of the state. This shift in the cropping
pattern took place as a consequence of relative profitability determined by various economic
forces especially relative yield, price and their stability (Chatha and Singh, 1985).

The production of pulses is not only stagnant but even decreasing in the state. Total
production of pulses recorded was only 23 thousand metric tonnes in 2007-08 whereas the total
production of foodgrains constitutes 26.81 metric tonnes in the state which was the second
highest after Uttar Pradesh. From the total area of 23.63 million hectares under pulses in the
country, area under pulses in Punjab was 28.6 thousand hectares for the same year, which is quite
low. There is a sharp fall in the area and production of pulses in Punjab since 1970-71. There were 414
(000’ hectares) of area under pulses in 1970-71 as against 90 (000’ hectares) in 1991-92 and 20 (000’
hectares) in 2010-11 respectively in Punjab. The production constitute 308 (000’ metric tonnes), 75 (000’
metric tonnes) and 17 (000’metric tonnes) in 1970-71, 1991-92 and 2010-11 respectively. As far as yield
rates are concerned it was 743 (kg/hectares), 833 (kg/hectares) and 850 (kg/hectares) for the same years.
The increase in productivity has been confined to cereals, but there has been declining trends in
pulses productivity in the state. Though some efforts to promote high yielding varieties of pulses
have been made since the early seventies, they do not seem to have succeeded much. The average
yield of pulses in India is 629 kg/hectare whereas in Punjab state it is 888 kg/hectare, which is
higher as compared to national average but quite low as compared to rice and wheat yields in the
state (Statistical Abstract of Punjab, 2010-11). The yield rates of pulses are higher in Punjab as
compare to India mainly because of adoption of New Agricultural Practices in the state. Moreover,
though the yield rates are higher there is decline in production of pulses in the state whereas even with
low yield rates compare to Punjab, increase in the production of pulses is observed at all India level. This
is due to the fact that area allocation is the major factor observed for increase in the production of a crop.
In case of pulses decline in area is much higher than increase in its yield rates in Punjab. In this backdrop,
an endeavour has been made in this paper to examine the trends in area, production and yield of pulses in
Punjab and to ascertain the factors associated with the observed trends.
Objectives
The most important objective of this paper is to attempt a detail analysis of pulse production in India in
general and Punjab in particular. More specifically the study is concentrated on the following objectives:
1. To analyse the trends in area, production and yield of pulses in India.
2. To study the trends in area, production and yield of pulses in Punjab.
3. To find the factors responsible or constraints hindering the growth of pulses in Punjab.
Data Base and Methodology
For the purpose of analysis, the study is restricted to the period 1970-71 (the year after immediate
effects/results of green revolution in Punjab) to 2010-11 for which the latest data is available. The total
study period is divided into three parts. Period I, i.e., 1970-71 to 1990-91- a pre-reform period, Period II
refers to 1991-92 to 2010-11- the post reform period and Period III from 1970-71 to 2010-11- the total
period of study. In order to achieve the objectives of the study the secondary data has been used which is
obtained from Statistical Abstracts of India and Statistical Abstracts of Punjab for various years. In order
to calculate the average annual growth rate of area, production and yield of pulses log-lin model has been
used which is found to fit best has been separately fitted for each of time periods for India and Punjab.
The equation for log-lin model is as under:

Satvinder Kaur
Yt = y0 (1+ r) t
Where r is the compound rate of growth of Y. in order to make the equation linear we take natural
logarithm on both sides of equation no. (ix)
ln yt = ln yo+ t ln(1+ r)
Now letting β1=ln yo and β2 = ln (1 + r)
lnYt = β1 +β2t + ui
Where
ln yt = logarithm of regress and or dependent variable
β1 = the intercept.
β2 = Coefficient of time.
ui = Disturbance term.
After getting value of β2 , ACGR has been calculated by the use of equation ------------(1)
= ( β2 − 1) ∗ 100. -------------------------- (1)
Results and Discussion
The information about the average annual growth rates of area, production and yield of pulses in
India and Punjab during Period I- the pre reform period, Period II- the post reform period and Period III-
the entire study period in India and Punjab is given in Table 1. The annual average growth rate of area
under pulses registered static from 1970-71 to 2010-11 in India which is a matter of serious
concern of pulse availability, soil fertility and agricultural diversification. The empirical results of
the study also revealed that the area under pulses recorded a poor exponential growth rate of only
0.03 per cent and remains stagnant between 1960 to 2000 (Selvaraj and Ramasamy, 2002).
However, both yield and production grew at a dismal rate of only 0.60 per cent per annum. It is
clearly revealed that increase in production of pulses is only attributed to increase in yield of the
crop rather than any significant role of area in the country.
Table 1: Compound Growth Rates of Area, Production and Yield of Pulses in India and Punjab
from 1970-71 to 2010-11
Period Year India Punjab
Area Yield Production Area Yield Production
Period I 1970-71 to
1990-91
0.20**
(1.51)
0.90*
(2.75)
1.10*
(2.78)
-5.82*
(-9.71)
-0.69**
(1.07)
-6.68*
(-7.90)
Period II 1991-92 to
2010-11
-0.23**
(-1.76)
0.40*
(2.11)
0.60**
(1.70)
-9.22*
(-19.32)
0.20**
(0.72)
-9.01*
(-19.11)
Period III 1970-71 to
2010-11
0.00**
(-0.82)
0.60*
(8.03)
0.60*
(5.72)
-7.96*
(-32.63)
0.20**
(0.80)
-7.75*
(-30.23)
Source: The values are computed on the basis of the year wise data on area, production and yield of pulses in India
and Punjab collected from Statistical Abstract of India and Statistical Abstract of Punjab, Various issues.
Note: Figures in parentheses indicates t-values, *significant at 5 per cent level, **insignificant at 5 per cent level

The table further indicates that in Punjab, the values of growth rate are registered to be
negatively high and significant for area i.e., 7.96 per cent per annum over the entire period of
study. The values of growth rate of yield shows a positive but insignificant growth rate of 0.20
per cent per annum. However, the growth rate for production of pulses is found to be negative
and significant i.e., 7.75 per cent per annum. The results clearly indicate that the decline in area
with marginal increase in yield rates leads to decrease in production of pulses in the state. The
poor performance of pulses since 1970-71 in Punjab is mainly attributed to increase in the area
under wheat and rice after adoption of Agricultural Development Model in Punjab. The high
profitability and yield rates of wheat and rice in comparison to pulses encourage farmers to grow
these crops in fertile land with use of all yield raising inputs and improved cultural practices.
The government policies like of the announcement of procurement prices and minimum support
price played a positive part for such increase. The proper marketing facilities also played an
important role for wheat and rice revolution in Punjab.
At the same time the continuous decline in the production of pulses must be taken to be
an indicator of the basic weakness in the production techniques of pulses at the farm level. The
primitive farm management practices of the average pulse grower have made pulse crops into
low-value or inferior crops. As pulses are generally grown as mixed crops, for fuel and fodder or
as the second crop, the farmer gives secondary importance to the pulse crop, i.e., from the point
of view of cultural practices and devote poor attention to the pulses cultivation. More so, they
are vulnerable to a number of diseases and pests which further make their cultivation
uneconomic on comparative grounds with other crops and caused to decrease in area under
pulses. Several fungal bacterial and viral diseases cause heavy damages to pulse crops. Pests like
borer, jassids, thrups, bugs and others mostly feed on these crops and reduce their productivity
(Bhushan and Sobti, 1992). Furthermore, there is no assured procurement and announcement of
minimum support prices of pulse crop by the government. The present system of marketing of
pulses is also full of number of malpractices. It is dominated by large number of middlemen who
exploit both consumers and producers. The commission agents are the buyers themselves who
sell the produce to the retailers, as there is no assured procurement by government agencies. The
producers share in consumer's rupee stands very low. There is no effective mechanism for
facilitating the transfer of latest research findings and technologies developed by Research
bodies/institutions and fields. In order to encourage farmers to increase area under pulses, awareness
can be amplified by government, research bodies and agricultural universities by providing importance of
pulses in nutritional diet and to improve soil fertility and soil structure.
Moreover, the values of average annual growth rate of area shows a dismal increase of 0.20 per
cent per annum during period I. Whereas it exhibited insignificant negative growth rate of 0.23 per cent
per annum during period II. The results clearly depicts that the introduction of New Economic Reforms in
the country negatively affected the allocation of area under pulses in India.
The table also portraits that for Punjab, declining tendency in area with highly significant
growth rate of 5.82 per cent per annum is observed during period I and 9.22 per cent per annum
during period II. So it may conclude that pulse acreage during 1970-71 to 2010-11 has declined

Satvinder Kaur
with significant rate in Punjab whereas the maximum decline is observed during post-reform
period. The decline in area under pulses in Punjab is mainly attributed to shift in cropping
pattern in the state. There was 3514 (thousand hectares) area under cereals in 1970-71 which
sharply rose to 5548 (thousand hectares) in 1991-92 and further increase to 6484 (thousand
hectares) in 2010-11. Moreover, among the category of cereals, the area under wheat was 2299
(thousand hectares) in 1970-71 increase to 3237 (thousand hectares) in 1991-92 and 3510
(thousand hectares) in 2010-11. Whereas significant increase in area under rice from 390
(thousand hectares) to 2069 (thousand hectares) and 2826 (thousand hectares) is observed during
the same periods respectively. However, the area under pulses sharply decline from 414
(thousand hectares) in 1970-71 to 90 (thousand hectares) in 1991-92 and only 20 (thousand
hectares) in 2010-11 (Statistical Abstract of Punjab, Various issues). Thus, the statistical results
clearly depicts that decrease in area under pulses is confined to shift in cropping pattern, i.e.,
increase in area under cereals mainly rice and wheat crops in Punjab. Grewal and Bhullar (1982)
in their article "Impact of Green Revolution on the Cultivation of Pulses in Punjab" have
examined that the area from Rabi pulses shifted to wheat and Kharif pulses to paddy under the
stimulus of expanding irrigation facilities, high-yielding varieties of seeds, support price policy
and public procurement system of wheat and paddy in the state. The study suggested that there is
a strong need to diversify the cropping pattern by shift some area out of cereals, more
specifically wheat and paddy to pulses. In order to encourage farmers to shift cropping pattern there is
need to develop agro-industrial pulse products and pulse processing industries in the state. It is worth
mentioning that practically, a massive reduction in area under wheat and paddy is neither desirable by
farmers, nor approved by centre and state governments. Therefore, assignment of quota for pulse crop to
each Punjab’s farmer under assured procurement and minimum support price programme will ensure a
gradual and painless reduction in area under wheat and paddy. Moreover, as already discussed, the
farmers are not willing to shift their area under pulses because of lack of assured procurement
policy and remunerative price by the government as it is in case of wheat and rice. In order to
increase area allocation and production of pulses in the state, there is need to remove malpractices
in the marketing of pulses so that farmers can be benefited from remunerative prices and assured
procurement of pulses in the state.
At all India level, the average growth rate in yield during all periods is found to be
positive and significant indicating increasing trend is prominent. On the whole, there is positive
but slow growth in yield of pulses in the country. This growth was comparatively high during
period I (0.90 per cent) than period II (0.40 per cent) and Period III (0.60 per cent).
As far as yield of pulses in Punjab is concerned the growth rate is negative during Period
I (0.69 per cent), however, observed to be insignificant. Whereas a poor and dismal increase of
0.20 per cent per annum is observed during Period II and Period III. In order to increase yield
rates of pulses in Punjab, high yielding varieties and short duration varieties of pulses should be
developed and provided by government to the farmers at subsidized rate.

After analysis and examining the growth rates of area and yield for India and Punjab for
different time periods, it is felt necessary to analyses the same for production. For India as a
whole, the growth rate of production for period I and period III is found to be positive and
significant i.e., 1.10 per cent and 0.60 per cent per annum. Moreover, the growth rate is observed
to insignificant during period II.
The above analysis demonstrate that, in general, the all India pulse production grew at a
dismal rate of 0.60 per cent per annum between 1970-71 to 2010-11, the growth of pulse
production decreased by 0.5 per cent per year during period II- the post reform period compare to
period I- pre reform period. A study by Tuteja (2006) also examine that the pre-reform period
(1980-90) was far better than the post reform period (1990-2000) as far as growth in area,
production and yield of pulses in India is concerned. Studies by Nadkarni (1986), Acharya
(1989) and Bhatia (1991) related to the period from 1970-71 to 1990-91 examined that the major
constraints affecting the growth in production of pulses in India are technological, viz, their
lower yield and lower responsiveness to irrigation and fertilizers and low level technology with
poor management under high risk situation.
It is further examine that for Punjab, the growth rate is found to be negative and significant during all the
periods under study which indicate that total production of pulses over years has decreased. It is also
found that the decline in production of pulses is observed to be highest (9.01 per cent) during Period II
followed by Period III (7.75 per cent) and Period I (6.68 per cent). So it may be concluded that the
production of pulses from 1970-71 to 2010-11 has declined whereas maximum decline is observed during
Period II, i.e., the post-reform period.
Conclusion
The compound growth rates of pulses worked out for the study period at all India level shows
that the growth in area under pulses is almost stagnant for the period 1970-71 to 2010-11
whereas growth in yield is less than one percent per annum. So far the production is concerned it
grew at a dismal rate of 0.6 per cent per annum during the entire study period. In case of Punjab,
the computed results depict a sharp falling tendency in area as well as production of pulses since
1970-71. During the period 1970-71 to 2010-11 the production revealed a negative growth rate of
7.75 per cent per annum. The major contributing factor of this negative growth rate is observed
to be area under pulses which decline at the rate of 7.96 per cent per annum, whereas the yield
revealed a positive though marginal increase of 0.20 per cent per annum. The study indicates that
the dismal increase in yield rates with poor acreage, i.e., decline in area under pulses attributed
to falling tendency of production of pulses in the state.
References
Acharaya, S.S. (1988), Agricultural Production, Marketing and Price Policy in India (A Study of Pulses),
Delhi: Mittal Publications.
Bhatia, M.S. (1991), ‘Economic Constraints in Increasing Pulses Production’, Agricultural Situation in
India, vol. XLVI, no.5, pp. 279-284.

Satvinder Kaur
Chatha, I.S. and Singh, J. (1985), ‘Causes of Stagnation in Production of Pulses and Oilseeds in Punjab’,
Agricultural Situation in India, no.1, pp.931-934.
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Nadkarni, M.V. (1986), ‘Backward Crops in Indian Agriculture: Economy of Coarse Cereals and Pulses’,
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Selvaraj, K.N. and Ramasamy, C. (2002), ‘Pulses, Oilseeds and Course Cereals: Why They Are Slow
Growth Crops’, Indian Journal of Agricultural Economics, vol. 57, no.3, pp. 289-313.
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Indian Journal of Agricultural Economics, vol. 61, no.2, pp. 218-237.

Enrolment of Health Insurance Schemes for Industrial Workers in
Coimbatore – An Awareness Profile
N. Savitha and A. Sangamithra
Abstract: One of the major insecurities for workers in the unorganized sector is the frequent incidences of
illness and need for medical care and hospitalization of such workers and their family members. Health
insurance is one way of providing protection to poor households against the risk of health spending
leading to poverty. However, most efforts to provide health insurance in the past have faced difficulties in
both design and implementation. The poor are unable or unwilling to take up health insurance because of
its cost, or lack of perceived benefits. The primary data was collected through interview schedule. The
convenient sampling method was adopted to take 1500 samples from both engineering and textile
industries in Coimbatore district. The findings of the study clearly establish the fact that, educational
status of the respondents plays a vital role in enrolling the health insurance schemes in Coimbatore city,
India. Greater awareness about the importance of health insurance and the demand for the health
insurance would be higher among educated respondents, especially among those who go beyond
secondary school and above and thereby, large number of such persons enrolls themselves for health
insurance. Next to educational status, current age of the respondents appear to be the major deciding
factor whether the respondents got enrolling themselves for health insurance or not. It is also
conspicuous to note that respondents whose family monthly income is better have higher likelihood of
enrolling themselves for health insurance as compared to those who belong to families in which monthly
income is low. Enrolling for health insurance are found to be higher and significant at a moderate level
among the females as compared to their male counterparts. Most of the workers reported that they are
not covered by any health insurance plans or medical claim packages. To develop a viable health
insurance scheme, it is important to understand people’s perceptions and develop a package that is
accessible, available, affordable and acceptable to all sections of the society. Government should come
out with a clear cut policy, where the public can be made to contribute compulsorily to a health insurance
scheme to ensure unnecessary out-of pocket expenditures and also better utilization of their health care
facilities.
Key Words: Industrial Workers, Health Insurance, Awareness, Enrollment, Coimbatore.
1.1 Introduction
In India, the unorganised sector has employed almost 93% of the total labour force of the economy. For
the betterment of the people the government has implemented a number of social security measures in
general and few measures in particular for occupational groups, but the failures of these schemes were
witnessed by practical implementation problems and as a consequence majority of targeted people were
still not covered by these social security measures. One of the major problems faced by the unorganised
workforce is the frequent incidence of illness and prerequisite medical care and hospitalisation to the
victims. Despite the enormous development in the health care facilities, aliments remain one the
significant determinant of human deprivation in India. To overcome these problems economists,
policymakers and econometricians of many developed and developing economies have identified
investment on health/health insurance is one way of providing securities to the uncovered beneficiaries of

household against the uncertain health expenses which leads not only the victim but also the whole
society into the vicious circle of poverty. On the other hand, almost every effort of government and
private sector to provide health insurance coverage to the needed have faced many discrepancies both in
design, targeted group and implementation. This specific social issue has attracted many researchers to
make enquire this field and make it as a specialization and found that many poor are still unwilling to
participate in the health insurance schemes due to lack of awareness, high cost and lack of perceived
benefits.
1.2 Statement of the Problem and Need for the Study
It is by now well established that most Indians pay large amounts out-of-pocket for covering their health
costs: three quarters of health spending in India comes from households’ out-of-pocket disbursements
(Berman 1998, Ellis et al., 2000). If one takes only primary curative care, household spending forms the
majority of this expenditure in India. In addition to just expenditure, the elaborate government health care
system believes the fact that the private health care sector has grown at a phenomenal rate and today form
an equally significant part of the health system in India. It has been observed that with the growth in
income, high purchasing power and the expansion of the middle class urban India has witnessed a
tremendous growth in the private health care system (Sundar 1992, World Bank 1993).
The health status of urban population is peculiar in character as majority of them are floating
population and the awareness of urban industrial workers about various health problems like curative,
maternal and child health differ widely due to differences in their socio-economic set up. The vulnerable
sections in the urban areas are suffering from morbidity problems especially diseases of poverty and are
not having enough access to health care services. Due to the low income, they provide first priority to
food and later only for treatment. Access to health care systems is deeply conditioned by one’s possession
and income (World Bank, 1998). Financial barrier is still a dominant problem for access to necessary
healthcare for majority of the Indians. To ensure universal and comprehensive healthcare to its citizens,
alternative healthcare financing strategies like health insurance are being widely accepted. However,
despite health insurance being an equitable and efficient solution, the health insurance coverage still
remains at an infant stage in our country.
It has to be recalled that India does not have a history of a high level of health insurance coverage
at once upon a time and the coverage falling to the present level so that we have enough lessons to list out
why the health insurance coverage is at very low level. In fact, so far there have been no significant
studies that have addressed this particular issue. From a demand side perspective, several studies indicate
that people are willing to pay for health insurance (Dror et al., 2007; Gumber and Kulkarni 2000;
Mathiyazhagan 1998; Sodani 2001). Moreover, the existence of a partially subsidized public healthcare
system, absence of proper awareness on risk pooling forms of health insurance, poor trust in insurance
companies and the inability of the people in the informal sector to deal with insurance companies are
some of the other plausible reasons for the low level of health insurance intake in India (Vellakkal, 2008).
Industrialization is necessary for prosperity and at times for the survival of a nation. The production is the
real wealth of a Nation. Only industrialization is not enough, real benefit is brought by continuous top
performance of the worker which is only possible by their good health. Industrial workers constitute only
a segment of general population and the factors that influence the health of the population also apply

Enrolment of Health Insurance Schemes for Industrial Workers in Coimbatore
equally to industrial workers. Health care financing of industrial workers is undoubtedly an issue that calls for
more research by experts and activists.
Now the healthcare market is witnessing several players offering health insurance schemes to
mitigate the expenditure that may arise due to unforeseen disturbance in the health of individuals.
Varieties of policies exist in the market that suits the differing needs of persons seeking to insure their
health. But are the workers really aware of such kinds of policies that are in force? How do they come to
know about such policies? Is it true that those who have become aware of such insurance programmes
have taken up policies to ensure that they incur less when they become sick? If no, what has forbidden
them? Has price of insurance remained a prohibitive factor? If yes, are the workers prepared to come
under an insurance cover the cost of which is the least? In order to seek solutions to these questions, the
present study has focused on the Enrolment of Health Insurance Schemes for the Industrial Workers in
Coimbatore city.
1.3. Objective of the study
Based on the enormous survey of earlier empirical studies related to Health Insu rance the
following objective was framed;
To study the Enrolment of Health Insurance Schemes for the Industrial Workers.
1.4. Research Methodology
To test the objective, the following methodology was adopted.
1.5. The Study Area
Coimbatore is one of the most industrially developed cities in Tamil Nadu and has the pride of being
called the “Manchester of South India”. Coimbatore is the third largest city in Tamil Nadu state in India;
it has more than 40,000 small, medium and large-scale industries, which serve the engineering needs of
the major parts of the country. The city is known for its dynamic people and excellent infrastructure. The
entrepreneurial spirit of the business community here is renowned across the country. The city is the
second largest software producer in Tamil Nadu, next to Chennai. The decision to select foundry and
textile industries is due to the fact that the industrial activity in Coimbatore region depends more on these
units and the workers of these units are prone to health hazards due to pollution. It is essential for them to
know the existing health insurance facilities. The present study relates to the health insurance
enrolment among industrial workers in urban Coimbatore.
2. Sampling Design
To collect the necessary information, 1500 employees (henceforth ‘respondents’) were approached with
predefined questionnaire in both foundry and textile industries for the equal representation. However,
while collecting the data, 53 respondents did not respond at the time of survey. Thus a total of 1447
respondents were selected for the final study. Due to the nature of selected issue and outcomes a
“convenient sampling method” was adopted. Questions relating to personal profile of the respondents and
the benefits availed from health insurance schemes and problems faced by the respondents were also
included in the schedule. After deriving the total sample size (i.e.1447), gathered information were coded
in SPSS package for further process. The study has employed percentage method to elicit the nature of

the respondents and their awareness regarding health insurance schemes. To test the pre-defined null
hypothesis, the study has also adopted a logistic regression model to determine the factors determining the
probability of enrolment in health insurance schemes among the selected industrial workers.
3. Collection of Data
For collecting the data, the respondents were interviewed personally and given a brief description about
the nature and purpose of the study. Data required for the study were collected through interview schedule
which was administered among the workers of foundry (engineering) and textiles industries in
Coimbatore. Apart from this, secondary data relating to textile industries were collected from South
Indian Mills Owners Association (SIMA), South Indian Textile Research Association (SITRA) and Small
Spinners Association (SSA). Foundry industries data are collected from Coimbatore District Small Scale
Industries Association (CODISSIA), The South Indian Engineering Manufacturing Association (SIEMA),
Coimbatore and District Industrial Center (DIC), Coimbatore. At the first stage, the name and the
addresses of the Industrial units were identified. In the next stage number of workers employed in textile
and foundry units were identified based on the number of units, and the total workers were chosen
randomly depending on the number of employees on the roll at the time of the study.
4. Theoretical background of the Logistic Regression Model (LRM)
iiiiiiii
i
i
i uMFIIndustryEducationFamilyNativityageCGen
P
P
Y 






 76543210 _
1

Where,
0 7
1
2
3
4
to - Parameters of estimates
- Gender - '0' for Male and '1' for Female
- C_age - Current age
Nativity - '0' for Rural and '1' for Urban
- Type of Family - '0' for Joint family and '1'
 





5
6
7
for Nuclear family
- Educational Status
- Type of Industry - '0' Textile industry and '1' for Foundry industry
- Monthly Family Income
u - Error termi



5. Earlier Studies Related to Health Insurance
The literature review is an important step in any research process. Review of earlier studies discloses the
works and studies done by individual researchers and institutions and help to establish the need for further
study. An attempt has been made in the study to review the earlier studies relating to the enrollment of
health insurance among industrial workers. Among the contributors, the most prominent studies and
findings were given by Gruber (1994), Laurence Levin (1995), Sheiner (1997), Liu and Christianson
(1998), Sapelli and Torche (2001), Janet Currie and Jonathan Gruber (2001), Robert Kaestner and Kosali
Ilayperuma Simon (2002), Kate Bundorf (2002), Dong et al. (2003), Johannes P.Jutting (2003), Abay
Asfaw et. al.(2004), Matthew and Christopher (2005), Finn and Harman (2006), Dror et. al.(2006), Pedro

Pita Barros et. al. (2008), Inke Mathauer and et. al.(2008), Kevin T Stroup et. al. (2009) and Rebecca
L.Thornton et. al.,(2010). With this strong conviction in the field of Health Insurance the present study
has been embarked.
6. Awareness about Health Insurance Schemes
The health insurance is a vital method of financing the spiraling costs of medical care. The high cost of
hospital services coupled with the unpredictability of health needs and the inadequacy of personal savings
is the primary reason for the growing importance of insurance as a means of financing health services.
Inspite of the growing importance of health insurance schemes the number of people covered by health
insurance is very less in India. It has been found that one of the major reasons for low health insurance
coverage in India is the lack of awareness of the health schemes by the people. Currently in India, only 2
million people (0.2 per cent of the total population of 1 billion) are covered under Mediclaim, the most
popular health insurance scheme in India, whereas in developed nations like U.S., about 75 per cent of the
total population are covered under one or the other insurance scheme. In this background, an attempt has
been made to know whether the industrial workers are aware of health insurance schemes or not.
(Ramanujam, 2009).
Table 1 shows that out of 1447 sample workers, 489 workers (33.8 per cent) were aware of health
insurance schemes while 958 workers (66.2 per cent) were unaware. It can be concluded that most of
them are not aware of the insurance policies covering health aspect and some are not aware of any
insurance schemes because of rural or semi-urban background, less education and less exposure to the
modern developments. Moreover, lack of publicity of various health insurance schemes happens to be an
important factor for this situation.
Table 1: Awareness of Health Insurance Schemes
Awareness about Health
Insurance Schemes
Frequency Percentage
Yes 489 33.8
No 958 66.2
Total 1447 100.0
7. Enrolment of the Health Insurance Schemes
The escalating cost of medical treatment today is beyond the reach of a common man. In case of a
medical emergency, cost of hospital room rent, the doctor's fees, medicines and related health services
can work out to be a huge sum. In such times, health insurance provides the much needed financial relief.
An investment in health insurance scheme would be a judicious decision. The health insurance scheme
could either be a personal scheme or a group scheme sponsored by an employer. Some of the existing
health insurance schemes currently available are individual, family, group insurance schemes, and senior
citizens insurance schemes, long-term health care and insurance cover for specific diseases.
Table 2 explains that out of 1447 sample respondents, a majority of
1034 workers (71.5 per cent) are not enrolled in the health insurance schemes and only 413 workers (28.5 per
cent) have enrolled in those schemes. The reason behind that is due to low level of literacy they are
unaware of the health insurance scheme and the wage level also determined not to take the health
insurance schemes.

Table 2: Enrolment of the Health Insurance Schemes
Enrolment of Health Insurance
Scheme
Frequency Percentage
Yes 413 28.5
No 1034 71.5
Total 1447 100.0
8. Types of Health Insurance Schemes
Unpredictability of health needs and inadequacy of personal savings together create the need for health
insurance. The insurance companies in India, mainly GIC and LIC provide various health insurance
schemes to the people. GIC provides the most popular health insurance scheme namely, Mediclaim and also
the Jan Arogya Bhima Policy. The Central Government provides a contributory health scheme to its
employees called the Central Government Health Scheme (CGHS) from 1954 and an insurance scheme
called Employees State Insurance Scheme (ESIS) from 1948, both schemes meant for the employees
working in the public sector enterprises in the country. Thus, the government role in organizing and
financing health insurance is limited to these two major schemes. In this context, an attempt was made to
know from the workers about the type of insurance coverage they are having.
Table 3 reveals that out of 413 sample respondents 150 workers have taken the private health
insurance schemes, 115workers taken the Government Schemes, 113 workers taken the Government
Insurance Schemes and 35 workers taken the Employees State Insurance Scheme which constituted
around 36.3 per cent, 27.8 per cent, 27.4 per cent and 8.5 per cent respectively.
Table 3: Types of Health Insurance Schemes
The Insurance Schemes Frequency Percentage
Government Schemes 115 27.8
Employees State Insurance Scheme 35 8.5
Government Insurance Scheme 113 27.4
Private Health Insurance 150 36.3
Total 413 100.0
9. Motivation for Joining the Health Insurance Schemes
The motivation for the health insurance schemes can be classified into seven categories such as Nobody,
Self, Media, Newspaper, Friends/Relatives, Insurance agent, Insurance Beneficiary and Employer.
Table 4 reveals that out of 413 sample workers, 95 workers (23 per cent) reported that their
employer is taking the health insurance for them, 84 workers were (20.3 per cent) motivated by insurance
agents, 80 workers (19.4 per cent) by media advertisement, 69 workers (16.7 per cent)by their friends and
relatives, 36 workers (8.7 per cent) reported they are taken insurance policy out of their own interest 34
workers (8.2 per cent) reported they are taken insurance policy through news paper advertisement, and 15
workers (3.6 per cent) reported that they have gathered the information from the insurance beneficiaries.
It can be observed that majority (23.2 per cent) of the workers were advised by their employers because

the employer is collaborating with the private insurance company and pay the premium amount from their
wages. For this reason both the insurance company and the employee are getting the benefits.
Table 4: Motivation for Joining the Health Insurance Schemes
Health Insurance Scheme Frequency Percentage
Nobody, Self 36 08.7
Media 80 19.4
Newspaper 34 08.2
Friends/Relatives 69 16.7
Insurance agent 84 20.3
Insurance Beneficiary 15 03.6
Employer 95 23.0
Total 413 100.0
10. Determinants of Enrolling for Health Insurance
Logistic regression measures the relationship between a categorical dependent variable and one or more
independent variables, which are usually continuous, by using probability scores as the predicted values
of the dependent variable. An attempt is made to find out the principle factors that are likely to affect the
respondents’ enrolment of health insurance. For this purpose, the respondents’ enrolment for health
insurance has been considered as dependent variable as dichotomous viz., whether the respondent enrolls
himself / herself for health insurance (by assigning a score of ‘1’) or not (score of ‘0’) and all the
independent variables as categories. In such a condition, adopting the logistic regression analysis is more
apt and therefore, such an analysis is carried out (Table 5).
Next to educational status, current age of the respondents appear to be the major deciding factor
whether the respondents got enrolling themselves for health insurance or not. For instance, compared to
those younger at age (15-29 years), respondents who ever at their most prime working ages (30-44 years)
have shown greater tendency to take a health insurance policy. This result is also turn out as highly
significant (p<0.001). Though such pattern is noticed among those who are in the late working ages, the
results did not turn out as statistically significant. It is also conspicuous to note that respondents whose
family monthly income is better have higher likelihood of enrolling themselves for health insurance as
compared to those who belong to families in which monthly income is low (Rs. 3000 or less). However,
the results have been turn out statistically highly significant (p<0.001) only the case of those whose
family income is moderate (Rs. 3001–6000). Another interesting point noted based on the logistic
regression analysis is that the odds of enrolling for health insurance are found to be higher and significant
at a moderate level (OR = 1.5; p<0.05) among the females as compared to their male counterparts.
Finally, though the elderly who reside in urban areas as well as in nuclear families and working in jobs
related to foundry industry have shown higher odds of enrolling themselves for health insurance than their
counterparts, the results did not turn out to be statistically significant.

Table 5: Logistic Regression Results on Respondents’ Enrolment of Health Insurance
Explanatory Variables Beta Odds Ratio
Level
of Sig.
Gender (Ref: Males)
Females
--
0.346
1.000
1.479
--
0.05
Current Age (Ref: 15-29 Years)
30 – 44 Years
45 + Years
--
0.792
0.210
1.000
2.208
1.233
--
0.001
0.312
Nativity Status (Ref: Rural)
Urban
--
0.112
1.000
1.119
--
0.409
Type of Family (Ref: Joint Family)
Nuclear Family
--
0.356
1.000
1.425
--
0.102
Educational Status (Ref: Illiterate)
Primary School
Secondary School
Higher Secondary School and above
--
1.297
2.343
2.875
1.000
3.659
10.414
17.733
--
0.01
0.001
0.001
Type of Industry (Ref: Textile Industry)
Foundry Industry
--
0.173
1.000
1.189
--
0.236
Monthly Family Income (in Rs.)
(Ref: 3000 or less)
3001 – 6000
6001 +
--
0.454
0.187
1.000
1.651
1.260
--
0.01
0.490
- 2 Log likelihood
Chi-square (df)
Significance Level
N
Cox & Snell R Square
Nagelkerke R Square
1566.691
163.907 (11)
0.001
1447
19.7
15.4
11. Conclusion
Despite considerable progress since independence, not only do health outcomes for Indians still fall short
of other, similarly placed countries, they are also unevenly distributed across the population and across
states. Health outcomes are especially poor for individuals and households at the lower end of the socio-
economic ladder. Indians are also extremely vulnerable to financial risks from illness, as indicated by
high levels of out-of-pocket spending, and this vulnerability appears to be increasing over time. Finally,
by most accounts, satisfaction with publicly-provided health care service is low. Though there is hope
that this may change as the National Rural Health Mission (NRHM) matures, and with the
implementation of the National Urban Health Mission (NUHM), we do not have enough evidence to
support this as yet. The private sector has its own problems and is generally poorly regulated and of
variable quality, ranging from high-end institutions to unqualified providers. These outcomes are reflected
in India’s slow progress towards achieving several of the Millennium Development Goals (MDG) to
which it is committed. In any assessment of progress towards the MDGs, India performs relatively well
on the poverty reduction and education –related goals, but not as well on goals related to health (Bibek
Debroy et al., 2010).

It has been clearly recognized that health insurance is one way of providing protection to poor
households against the risk of health spending leading to poverty. However, most efforts to provide health
insurance in the past have faced difficulties in both design and implementation. The poor are unable or
unwilling to take up health insurance because of its cost, or lack of perceived benefits. The findings
clearly establish the fact that educational status of the respondents plays a vital role in respondents
enrolling for health insurance. Greater awareness about the importance of health insurance and the
demand for the health insurance would be higher among educated respondents, especially among those
who go beyond secondary school and above and thereby, large number of such persons enroll themselves
for health insurance. Next to educational status, current age of the respondents appear to be the major
deciding factor whether the respondents got enrolling themselves for health insurance or not. It is also
conspicuous to note that respondents whose family monthly income is better have higher likelihood of
enrolling themselves for health insurance as compared to those who belong to families in which monthly
income is low. Enrolling for health insurance are found to be higher and significant at a moderate level
among the females as compared to their male counterparts. An interesting fact is, when the researcher
after explaining the benefits of health insurance schemes to the respondents, a majority of them (80 per
cent) reported that they are willing to join in health insurance schemes. Most of the workers reported that
they are not covered by any health insurance plans or medical claim packages. Workers must pay most of
their medical bills, though they reported that their employees will pay medical cost in the event that
injuries are sustained as a result of an accident in the work place.
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Awareness of Medicinal Plants in Tamil Nadu among the Post Graduate
Teachers of Biology in Tiruchirappalli District
S. Amutha
Abstract: Though we live in era of grey revolution, the formost important thing is our health. To
maintain health one must consciously aware of their health. All the time no one can depend on medicine.
By consuming daily food itself we can maintain our health. At this juncture a study of etanobotany (study
of medicinal plants) is inevitable for everyone. Hence it is the responsibility of the botany teachers to take
the gospel of etanobotany in different spheres to the students throughout the country. Though the
importance of biological science is realized, the method of teaching the same is crude in most of the
schools (Amutha, 2010). Botanic Gardens Conservation International has warned that 600 medicinal
plants around the world are at risk of extinction due to deforestation practices. (David Gutierrez 2008).
The medicinal plants find application in pharmaceutical, cosmetic, agricultural and food industry.
Different parts of several medicinal plants are used to cure specific ailments from ancient times. The
indigenous system of medicine namely ayurvedic, siddha, and unani have been in existence for several
centuries.There are many interesting and sometimes astonishing things to learn about medicinal plants.
Spreading and preserving the knowledge on medicinal plants and their uses are important for human
existence. The present study undertook a piece of research which can throw a light on the teachers of
botany to understand their level of awareness towards medicinal plants. Any research in any field must be
inclined to contribute to the upliftment of the society in different spheres. In that way, the present study
aims at creating awareness about medicinal plants by the botany teachers.
Key words: grey revolution, health, medicine, etanobotany,conservation, deforestation, pharmaceutical,
Cosmetic, agricultural , food industry, ailments, indigenous
Introduction
WHO (World Health Organisation) defined “a medicinal plant is any plant in which one (or) more of its
parts contains substance that can be used for therapeutic purpose (or) which is a precursor for synthesis of
useful drugs”. Herbal medicine plays a vital role in phytotherapy. Many of us are under stress which
affects the body in many ways. Polluted air we breathe leads to lung problem inturn it leads to mental
stress. One way of maintaining our health is to keep the environment clean and grow more herbs and
natural medicinal plants (Stelling, Keith, 1992).
Objectives of the study
The present study is committed to accomplish the following objectives:
1. To ascertain the level of awareness on medicinal plants by the post graduate Teachers of
Biology at Tiruchirappalli district.
2. To evolve recommendations for policy making.

S. Amutha
Research Questions
1. Are the post graduate Teachers of Biology taken for this study aware of different Medicinal
plants?
2. Do they know the use of all the medicinal plants listed in the tool?
Method and Procedure
The present study adopted descriptive method with survey technique for data collection. The
investigator after conceptualizing different medicinal plants which are very much available in Tamil
Nadu developed a Medicinal plants Awareness Questionnaire (MPAQ) consisting of 50 medicinal
plants which elicit the vernacular name, family name , usage of the plant parts and its medicinal use
with ‘Yes’ or ‘No’ responses. The tool has been given to the experts in the field of taxonomy for
obtaining their opinion. Based on their opinion 22 plants were discarded because it is available only in
the foreign countries. Thus remaining fifty plants were retained in the questionnaire. The questionnaire
was administered by the investigator with 70 post graduate botany teachers using simple random
technique. Based on the data collected through the questionnaire, their responses are tabulated,
analysed and interpreted as follows
Table 1 Medicinal Plants Awareness Questionnaire (MPAQ) for Male teachers
S.no Botanical name
Whether you know the plant
No
Yes
Vernacular
name
Family Part(s) used
Cure the
disease (or)
indication
Yes % No % Yes % No % Yes % No % Yes % No %
1 Aristolochia indica 27.27 72.72 51.51 48.48 24.24 75.75 24.24 75.75
2 Allium cepa 87.87 12.12 69.69 30.30 78.78 21.21 69.69 30.30
3 Allium sativum 90.90 9.09 75.75 24.24 72.72 27.27 60.60 39.39
4 Acalypha indica 78.78 21.21 57.57 42.42 66.66 33.33 66.66 33.33
5 Adhatoda vasic 33.33 66.66 18.18 81.81 51.51 48.48 45.45 54.54
6 Achyranthes aspera 57.57 42.42 24.24 75.75 48.48 51.51 21.21 78.78
7 Aegle marmelos 72.72 27.27 39.39 60.60 30.30 69.69 36.36 63.63
8 Annona squamosa 45.45 54.54 6.06 93.93 18.18 81.81 6.06 93.93

Awareness of Medicinal plants in Tamil Nadu among the Post Graduate Teachers of Biology
9 Abelmoshus esculantus 48.48 51.51 36.36 63.63 36.36 63.63 24.24 75.75
10 Andrographis paniculata 33.33 66.66 21.21 78.78 27.27 72.72 27.27 72.72
11 Abutilon indicum 63.63 36.36 60.60 39.39 60.60 39.39 36.36 63.63
12 Aloe vera 42.42 57.57 24.24 75.75 66.66 33.33 57.57 42.42
13 Cantharanthus roseus 72.72 27.27 33.33 66.66 57.57 42.42 57.57 42.42
14 Euphorbia hirta 72.72 27.27 66.66 33.33 63.63 36.36 39.39 60.60
15 Lowsonia inermis 66.66 33.33 51.51 48.48 60.60 39.39 30.30 69.69
16 Musa paradisica 78.78 21.21 63.63 36.36 51.51 48.48 51.51 48.48
17 Ocimum satium 72.72 27.27 51.51 48.48 57.57 42.42 60.60 39.39
18 Solanum trilobatum 57.57 42.42 54.54 45.45 48.48 51.51 48.48 51.51
19 Hemidemus indica 36.36 63.63 27.27 72.72 24.24 75.75 27.27 72.72
20 Coriandrum sativum 69.69 30.30 24.24 75.75 27.27 72.72 21.21 78.78
21 Zingiber officinale 63.63 36.36 42.42 57.57 51.51 48.48 27.27 72.72
22 Arachis hypogae 66.66 33.33 60.60 39.39 54.54 45.45 27.27 72.72
23 Carica papaya 42.42 57.57 21.21 78.78 30.30 69.69 30.30 69.69
24 Citrus limon 36.36 63.63 18.18 81.81 12.12 87.87 12.12 87.87
25 Coffea arabica 63.63 36.36 51.51 48.48 54.54 45.45 21.21 78.78
26 Curcuma longa 60.60 39.39 21.21 78.78 21.21 78.78 21.21 78.78
27 Datura innoxia 9.09 90.90 3.03 96.96 0 100 0 100
28 Solanum nigrum 0 100 33.33 66.66 36.36 63.63 36.36 63.63
29 Azadirachta indica 81.81 18.18 27.27 72.72 63.63 36.36 45.45 54.54
30 Coleus aromaticus 6.06 93.93 0 100 0 100 0 100
31 Alpina speciosa 0 100 0 100 0 100 0 100
32
Caridiospermum
halicacabum
36.36 63.63 27.27 72.72 24.24 75.75 27.27 72.72
33 Lantana camara 33.33 66.66 3.03 96.96 6.06 93.93 6.06 93.93

S. Amutha
34 Punica granatum 39.39 60.60 21.21 78.78 27.27 72.72 24.24 75.75
35 Racinus communis 63.63 36.36 54.54 45.45 51.51 48.48 48.48 51.51
36 Leucas aspera 72.72 27.27 21.21 78.78 54.54 45.45 27.27 72.72
37 Mimosa pudica 42.42 57.57 33.33 66.66 39.39 60.60 36.36 63.63
38 Piper longum 36.36 63.63 27.27 72.72 30.30 69.69 33.33 66.66
39 Commilina benghalensis 0 100 0 100 0 100 0 100 0
40 Zizibhus mauritiana 18.18 81.81 0 100 0 100 0 100
41 Atropa belladonna 0 100 45.45 54.54 45.45 54.54 3.03 96.96
42 Astragalus gummifer 6.06 93.93 3.06 96.96 3.03 96.96 3.03 96.96
43 Asteracantha longifollia 12.12 87.87 9.09 90.90 9.09 90.90 9.09 90.90
44 Apium graveolens 0 100 0 100 6.06 93.93 0 100
45 Acacia arabica 30.30 69.69 21.21 78.78 15.15 84.84 15.15 84.84
46 Acacia catechu 0 100 0 100 0 100 0 100 0
47 Acacia pennata 0 100 0 100 0 100 0 100 0
48 Agave americana 9.09 90.90 0 100 0 100 0 100
49 Ailanthus excelsa 6.06 93.93 0 100 0 100 0 100
50 Gloriosa superba 48.48 51.51 33.33 66.66 27.27 72.72 12.12 87.87
Table 2 Medicinal Plants Awareness Questionnaire (MPAQ) for female teachers
S.no Botanical name
Whether you know the plant
No
Yes
Vernacular
name
Family Part(s) used
Cure the disease
(or) indication
Yes No Yes No Yes No Yes No
1 Aristolochia indica 35.29 64.70 41.17 58.82 35.29 64.70 35.29 64.70
2 Allium cepa 88.23 11.76 76.47 23.52 82.35 17.64 88.23 11.76

3 Allium sativum 82.35 17.64 64.70 35.29 64.70 35.29 58.82 41.17
4 Acalypha indica 52.94 47.05 47.05 52.94 47.05 52.94 41.17 58.82
5 Adhatoda vasic 35.29 64.70 41.17 58.82 41.17 58.82 35.29 64.70
6 Achyranthes aspera 41.17 58.82 41.17 58.82 41.17 58.82 35.29 64.70
7 Aegle marmelos 52.94 47.05 52.05 47.05 35.29 52.94 47.05 52.94
8 Annona squamosa 11.76 88.23 17.64 82.35 100 0 5.88 94.11
9
Abelmoshus
esculantus
23.52 76.47 5.88 94.11 5.88 94.11 17.64 82.35
10
Andrographis
paniculata
47.05 52.94 41.17 58.82 41.17 58.82 29.41 70.58
11 Abutilon indicum 64.70 35.29 64.70 35.29 64.70 35.29 29.41 70.58
12 Aloe vera 58.82 41.17 52.94 47.05 52.94 52.94 47.05 52.94
13 Cantharanthus roseus 64.70 35.29 47.05 52.94 47.05 52.94 52.94 47.05
14 Euphorbia hirta 76.47 23.52 58.72 41.17 58.72 41.17 52.94 47.05
15 Lowsonia inermis 82.35 17.64 58.72 41.17 64.70 35.20 52.94 47.05
16 Musa paradisica 88.23 11.76 70.58 29.41 76.47 23.52 76.47 23.52
17 Ocimum satium 76.47 23.52 52.94 47.05 52.94 47.05 47.05 52.94
18 Solanum trilobatum 58.82 41.17 52.94 47.05 47.05 52.94 41.17 58.82
19 Hemidemus indica 52.94 47.05 47.05 52.94 47.05 52.94 41.17 58.82
20 Coriandrum sativum 58.82 47.05 58.52 41.17 52.94 47.05 41.17 58.82
21 Zingiber officinale 52.94 47.05 52.94 47.05 41.17 58.82 47.05 52.94
22 Arachis hypogae 64.70 35.29 58.82 41.17 52.94 47.05 41.17 58.82
23 Carica papaya 64.70 35.29 47.05 52.94 47.05 52.94 47.05 52.94
24 Citrus limon 17.64 82.35 11.76 88.23 52.94 47.05 41.17 58.82
25 Coffea arabica 52.94 47.05 52.94 47.05 47.05 52.94 41.17 58.82
26 Curcuma longa 58.82 41.17 52.94 47.05 52.94 47.05 52.94 47.05

S. Amutha
27 Datura innoxia 5.88 94.11 0 100 0 100 0 100
28 Solanum nigrum 0 100 5.88 94.11 0 100 5.88 94.11
29 Azadirachta indica 70.88 29.41 41.17 58.82 70.58 29.41 70.58 29.41
30 Coleus aromaticus 0 100 0 100 0 100 0 100
31 Alpina speciosa 0 100 0 100 0 100 0 100
32
Caridiospermum
halicacabum
64.70 35.29 52.94 47.05 41.17 58.82 52.94 47.05
33 Lantana camara 64.70 35.29 0 100 11.76 88.23 11.76 88.23
34 Punica granatum 70.58 29.41 41.17 58.82 47.05 52.94 47.05 52.94
35 Racinus communis 47.05 52.94 52.94 47.05 47.05 52.94 41.17 58.82
36 Leucas aspera 94.11 5.88 58.82 41.17 70.58 29.41 64.70 35.29
37 Mimosa pudica 5.88 94.11 11.76 88.23 5.88 94.11 0 100
38 Piper longum 58.82 41.17 47.05 52.94 47.05 52.94 47.05 52.94
39
Commilina
benghalensis
0 100 0 100 0 100 0 100
40 Zizibhus mauritiana 11.76 88.23 0 100 0 100 0 100
41 Atropa belladonna 0 100 41.17 58.82 52.94 47.05 11.76 88.23
42 Astragalus gummifer 41.17 58.82 0 100 0 100 0 100
43
Asteracantha
longifollia
0 100 0 100 0 100 0 100
44 Apium graveolens 0 100 0 100 0 100 0 100
45 Acacia arabica 64.70 35.29 0 100 0 100 0 100
46 Acacia catechu 0 100 0 100 0 100 0 100
47 Acacia pennata 5.88 94.11 0 100 0 100 0 100
48 Agave americana 0 100 0 100 0 100 0 100
49 Ailanthus excelsa 0 100 0 100 0 100 0 100
50 Gloriosa superba 35.29 64.70 25.52 76.47 17.64 82.35 23.52 76.47

It is understood from the above table that the botany teachers have less knowledge towards taxonomy. In
higher education it is mandatory for anyone to identify the plants by its characteristics. Unless the botany
teachers have thorough knowledge in taxonomy they cannot be in a position to teach taxonomy to their
students, simultaneously students also have less knowledge in taxonomy. The plants present in the tool
are commonly available in Tamil Nadu. Plants like Solanum nigrum, Alpina speciosa, Commilina
benghalensis, Atropa belladonna, Apium graveolens, Acacia pennata, Acacia catechu are not at all
known by the male teachers. Female teachers does not know the following plants Ailanthus excels ,Agave
Americana, Acacia catechu, Apium graveolens, Asteracantha longifollia, Atropa belladonna, Commilina
benghalensis, Alpina speciosa, Coleus aromaticus and Solanum nigrum. Alliun cepa are used as food in
our daily life. Aloe vera are used as food, cosmetics etc. It is even present in their garden but still the
teachers are not able to connect the subject knowledge in their daily life.
Based on the findings of the present study the following recommendations were made.
Recommendations
 Knowledge about medicinal plants and usage should be given right from secondary schooling.
 General awareness should be given to the teachers as well as the students about medicinal plants.
 Attitude should be developed to students as well as teachers towards medicinal plants.
 Central institute for medicinal & aromatic plants (CIMAP) should give carrier guidance and
educational guidance about medicinal plants through institutions.
 Informal training should be given to people to use commonly available medicinal plants in their
daily routine.
Conclusions
The world health organization (WHO) estimates that 80 percent of the world’s population use
herbal medicine for some aspect of primary health care. The knowledge of traditional plant use is a
valuable tool for developing awareness in any human being. As far as the subject botany is concerned it is
totally related to our daily routine. Hence the teachers should take cognizance of learning taxonomy and
the same can be imparted to their wards. Already some of the plants are extinct. Every teacher must take
initiatives to protect the rare species of plants and impart the values of plants to the student communities.
As a teacher of botany one can easily motivate people by increasing the positive attitudes towards the
growth of flora and by this way they can contribute to the society.
References
Amutha, S (2010). Empowerment of Science Teaching Competence of B.Ed trainees in the rural areas
through e-Content with a Metacognitive Instructional Design, Doctoral Thesis submitted to
Bharathidasan University, Tiruchirappalli.
David Gutierrez (2008). Medicinal Plants, Natural News retrieved from
http://www.naturalnews.com/023402_plants_medicinal.html

S. Amutha
Dzama, E. N. N. & Osborne, J. F. (1999). Poor performance in science among African students: An
alternative explanation to the African WorIdview thesis. Journal of Research in Science
Teaching, 36 (3), 387-405.
Stelling, Keith (1992) Consumer health retrieved from www.consumerhealth.org/articles/display.cfm?

The Key Success Factors and Profitability: A Case Study on Micro Small and
Medium Enterprises
M.V.K. Srinivasa Rao and B. Omnamasivayya
Abstract: The MSME sector in India contributes almost half of India’s GDP and is home to a swing of
business opportunities. Despite their significance, MSMEs fail within the first few months of operation.
Governments around the globe are increasingly promoting and supporting MSME growth as part of their
overall national development strategy. The KSF of MSMEs are background and access to resources of
the entrepreneur, strategic decisions taken by the firm, management, know-how, products and services,
the way of doing business, cooperation, resources, finance, external environment, customer service, the
past experiences of the manager. This study is attempted to test the hypothesis that there is no significant
co-relation between the availability and use of financial resources and profitability (ROI) of the MSMEs.
Entrepreneurs/ Owners of MSMEs perceive that More Ads, Good Salaries to employees, CRM,
Exploitation of Employees, Use of Technology and K.M. initiatives are perceived to be the K.S.F. of the
MSMEs performance/ profitability and inferred that there is a significant co-relation between the
availability and use of financial resources and profitability (ROI) of the Micro Small and Medium
Enterprises. Further, there is a significant difference that has been found in the influences of such
independent variables on the dependent variable. Few independent factors via, close supervision on
employees, creative ideas and thoughts, creating very good ambience and improving quality of the
product have been found no significance on organizational performance in the study.
1. Introduction
The development of Micro Small and Medium Enterprise Sector leads to greater utilization of local raw
materials, employment generation, encouragement of rural development, development of
entrepreneurship, mobilization of local savings, linkages with bigger industries, provision of regional
balance by spreading investments more evenly, provision of avenue for self-employment and provision of
opportunity for training managers and semi-skilled workers. Small and medium scale enterprises
contribute over 50 per cent of the employment opportunities and40per cent of GDP in Kenya. About
81per cent of all employment in Japan is in SMEs where the average enterprise employs nine staff as
opposed to four in the EU. In China, SMEs are accounted for about 60per cent of industrial output and
employ about 75per cent of the workforce. Despite their significance, recent studies show that 60per cent
of the SMEs fail within the first few months of operation. Studies also show that it is hard for the SMEs
to access finances from the financial institutions since they lack proper financial records as a requirement.
Governments around the globe are increasingly promoting and supporting MSME growth as part of their
overall national development strategy. They have created majority of new jobs in OECD countries since
the 1970s and their collective contributions to respective GDPs are about 30per cent in Australia and New
Zealand, 51per cent in the UK and USA, 57per cent in Canada and Japan, and 76per cent in Luxembourg.
In terms of entrepreneurial activity, MSMEs often occupy fragmented or niche markets which large firms
either cannot economically enter or are reluctant to enter (C.Wang et.al. 2008). The entrepreneurial
dimensions via, Innovativeness, risk taking, and pro-activeness competitive aggressiveness and autonomy

of MSMEs entrepreneurs can also influence the development of such enterprises besides several other key
factors.
2. The key Success Factors of M.S.M.E’s
The MSME sector in India contributes almost half of India’s GDP and is home to a swing of business
opportunities. Several Studies have been conducted on the Key Success factors of MSMEs during the last
ten years; there is still not much of a common body of well-founded knowledge about the same.
Moreover, researchers have been unable to achieve a consensus regarding the factors leading to firm
growth because Most of the research work in this area fails to provide convincing evidence of the
determinants of small firm growth as a basis for informing policy makers. Attempts to build models for
predicting the future growth of the firm have not been particularly successful. Moreover, the status of
being a growth firm may be rather temporary. There are three key influences on the growth rate of
MSMEs; they are the background and access to resources of the entrepreneur; the firm itself; and the
strategic decisions taken by the firm once it is trading. MSMEs can carve out value-adding niches for
themselves and play an important role at a time when global corporations revisit their established supply
and sourcing patterns as a response to the changed business climate and looking at supply chain areas and
Enterprise Resource Planning (ERP) solutions as the key factors for their survival and success (Parijat
Upadhyay and Pranab K Dan 2009). The main factors that can influence the sustainability and success of
MSMEs in underdeveloped countries like India and Bangladesh are features of MSMEs, management,
know-how, products and services, the way of doing business and cooperation, resources, finance, and
external environment (Mathew Philip 2010). Further, the Key Success Factors of MSMEs are customer
service, know-how of the business and the past experiences of the manager. Similarly the most failure
factors are lack of access to financial capital, inappropriate government structure and poor infrastructure
as well as corruption (Syed Wajahat Hussain Naqvi 2011).
3. Review of Literature
Mohammed (2011) has argued that MSMEs need to be more customer focus, monitor competitive trends,
and respond appropriately to market intelligence in order to survive given evidence of their financial,
technical and other constraints. Results show that the development of market orientation in this sector
rests more on the attitude of owners/ managers. More specifically, market orientation leads to superior
performance under ceaseless competitive conditions and better accounting practices have also been given
due consideration to ensure profitability. Mohamed Sulaiman et.al. (2010) have opined that
internationalization of Small and Medium Enterprises (SMEs) is an important factor of their profitability
and growth. The study has showed a significant relationship between internationalization and
performance. Market liberalization and digitization are encouraging large corporations and the SMEs to
operate beyond their national borders and compete with each other in foreign countries and new regions.
The Issues related to globalization, internationalization and liberalization have received a great deal of
attention in the recent research. Amarjit Gill et.al. (2010) have studied the relationship between working
capital management and profitability.

The Key Success Factors and Profitability: A Case Study on Micro Small and Medium Enterprises
A sample of 88 American firms listed on New York Stock Exchange for a period of 3 years from
2005 to 2007 was selected and have analyzed the relationship between the cash conversion cycle and
profitability, measured through gross operating profit. Further, they have mentioned that managers can
create profits for their companies by handling correctly cash conversion cycle and accounts receivables.
Osama and Fatima (2011) have investigated the relationship between working capital efficiency
and profitability on the 53 Jordanian manufacturing firms listed in Amman Exchange Market for the
period (2000-2006). There has been a negative significant relationship between profitability and the
average receivable collection period, average conversion inventory period and average payment period,
and also the cash conversion cycle. The study has also revealed a positive significance between the size of
the firm, growth of sales and current ratio and profitability. Finally, financial leverage correlated
negatively with profitability. Thus, firms have to manage its working capital efficiently to achieve the
optimal profitability. Grace and Tomola (2008) have empirically investigated the impact of bank loans,
age, and the size of business on the profitability of small and medium enterprises in Nigeria and found
that there has been a significant positive relationship between profitability and the size of business, loans.
The author has recommended relaxing the restrictive regulations and operations of commercial banks
which discourage borrowing for SMEs. Nelson Maseko and Onias Manyani (2011) has emphasized the
development of sound accounting systems in MSMEs in order to improve financial management in these
entities and has revealed that the majority of SMEs do not keep complete accounting records because of
lack of accounting knowledge and as a result there is inefficient use of accounting information in financial
performance measurement. The study has recommended that national regulators must develop specific
accounting guidelines, mandatory record keeping for MSMEs and develop accounting training
programmes for entrepreneurs in small businesses.
Danie Schutte and Pieter Buys (2011) have opined that there has been a little evidence on
disclosure practices of SMEs and their monitoring aspects. The study has suggested that the IFRS for
SMEs could become the preferred accounting framework for SMEs in South Africa.
Kesseven Padachi (2012) has opined that a large number of business failures have been attributed
to inability of financial managers to plan and control properly the current assets and the current liabilities
of MSMEs in particular. Financial management skills and strategies of small business are very different
from those of large ones. They must be learnt and implemented in order to get success in the business by
entrepreneur managers. Abdulkadir Madawaki (2012) has focused on the adoption process of
International Financial Reporting Standards (IFRS) on a developing economy, with particular reference to
Nigeria. He has further added that proper accounting practices as per IFSMS are necessary to attract
foreign direct investment, reduction of the cost of doing business, and cross border listing. In
implementing IFRS, Nigeria would face challenges including the development of a legal and regulatory
framework, awareness campaign, and training of personnel and has recommended strengthening
education and training, establishment of an independent body to monitor and enforce accounting and
auditing standards and the likes.

4. Need for the Study
The development of Micro Small and Medium Enterprise Sector is inevitable in underdeveloped countries
like India and leads to greater utilization of local raw materials, employment generation, and
encouragement of rural development, development of entrepreneurship, mobilization of local savings,
self-employment and many others. Their contribution for national economy is also significant. Recent
studies show that 60per cent of the SMEs fail within the first few months of operation. Studies also show
that it is hard for the SMEs to access finances from the financial institutions since they lack proper
financial records as a requirement. Better accounting system has its clear impact on the performance,
profitability of enterprises. In this context, there is a need to discover the most prominent or key success
factors for the development of MSMEs in terms of more profitability (ROI) and high quality global
financial reporting standards aimed at eliminating the incomparability factor while increasing the
transparency of financial statements and heightening disclosure. On the other side, in most of the
countries respective authorities have given relaxation for MSMEs from mandatory requirements of
accounting. In this scenario, the much needed in-depth study on the above issues is attracted the attention
of researchers. Hence, an attempt is made to study the K.S.F’s on the performance/ profitability of
MSMEs, Visakhapatnam.
5. Objectives of the Study
This research has certain objectives via, to review the existing literature on MSME Sector, to understand
the importance of the sector in the development of national economy, creation of self employment,
entrepreneurship and so on, to discover the factors (KSF) which can be more useful to enhance
profitability and to suggest better remedies to come out from the present common problems of MSMEs
and attain profitability.
6. Methodology
In Visakhapatnam, The total number of Micro and Small Scale enterprises (Registered at DIC) are 17,560
which includes 7,786 engineering Units followed by 3,016 Agro based industries, 1524 cotton textiles,
1,106 Electronic Units and rest of them belong to others categories. They are providing employment to as
many as 1,73,847 people directly. There are more number of unregistered Micro and Small enterprises
(estimated to be above 30,000 manufacturing and 90,000 service sector enterprises) that provide lively
hood to more number of people (above 7,00,000 directly and indirectly) in the city (BN Entrepreneurship
Research & Development Society, Visakhapatnam estimates). The total Number of Registered Medium
and Large Units are about 72, providing employment to 46,321 (Male-40,012, Female-6,309) people
(http://msmehyd.ap.nic.in). The data for this study has been collected from both primary and secondary
sources of data. A pilot study was conducted initially with 30 questionnaires. After few alteration, pre
structured questionnaire has been prepared and used to collect responses from 200 sample respondents.
Later 192 questionnaires have been identified to be proper after deducted eight of them [semi filled] and
used in the analysis.

Table 1: Sample of Enterprises Selected for the Study
No. of Enterprises Total
Manufacturing Services Both
Micro and Small
57
(86.36)
72
(57.14)
129
(67.19)
Medium
09
(13.64)
54
(42.86)
63
(32.81)
Total
66
(100.0)
126
(100.0)
192
(100.0)
Source: Field Study
Out of the sample, the proportion of service enterprises is more (about 67.19 per cent) and rest of
enterprises in the sample is under Medium category (about 32.81 per cent). Under Micro and Small
enterprises category, about 86.36 per cent are manufacturing enterprises, followed by service enterprises
(about 57.14 per cent). In the medium enterprises category the proportion of services is more (about 42.86
per cent), followed by manufacturing category (about 13.64 per cent).
7. Hypothesis
Ho1-There is no significant co-relation between the availability and use of financial resources and
profitability (ROI) of the Micro Small and Medium Enterprises
Ho2- Entrepreneurs/ Owner of MSMEs perceive that More Ads, Good Salaries to employees, CRM,
Exploitation of Employees, Use of Technology and K.M. initiatives are K.S.F. of MSMEs
profitability
 Ho2a- Entrepreneurs/ Owner of MSMEs perceive ‘Advertisement Campaigning’ is a K.S.F. of
MSMEs profitability
 Ho2b- Entrepreneurs/ Owner of MSMEs perceive ‘Concern to employee’ is a K.S.F. of MSMEs
profitability
 Ho2c- Entrepreneurs/ Owner of MSMEs perceive ‘Concern to Work’ is a K.S.F. of MSMEs
profitability
 Ho2d- Entrepreneurs/ Owner of MSMEs perceive ‘CRM’ is a K.S.F. of MSMEs profitability
 Ho2e- Entrepreneurs/ Owner of MSMEs perceive Technology (Information & Computerized
Accounting System) is a K.S.F. of profitability
 Ho2f- Entrepreneurs/ Owner of MSMEs perceive ‘Knowledge Management’ is a K.S.F. of
MSMEs profitability
8. Study Analysis
Three fourth of enterprises, selected for study were established 5 years ago, rest of them representing
about 25 per cent are recent establishments with less than 5 years of experience. About 62.50 per cent of
enterprises are sole trading establishments, followed by partnership firms (about 30 per cent) and others

(about 10 per cent). The entrepreneurs representing 85 per cent are below 55 years. About 90 per cent of
entrepreneurs are Hindu’s. Others constitute very less proportion via, Christians’ (about 7.5 Per cent),
Muslim’s and others (about 5 per cent). About 37.5 per cent of entrepreneurs are graduates, followed by
the entrepreneurs with below SSC qualification (about 35 per cent), post graduates and Technical
certificate holders (about 15 per cent each). One third of them are school dropouts who have studied
below secondary education. The entrepreneurs with lower qualifications are also highly successful in
managing their ventures. The motivating factors for starting enterprises have been obtained, as many as
42 per cent of the entrepreneurs are motivated by their family members. About 18 per cent of the
entrepreneurs have been motivated by their friends and relatives. Most of the entrepreneurs (about 47.54
per cent) are obtained credit from commercial banks followed by money lenders (about 21.31 per cent),
financial institutions (about 18.03 per cent) and other agencies. About 42.50 per cent of entrepreneurs
have started with their own capital followed by banks (about 32.50 per cent) and friends and relatives.
The profitability of the enterprises has been obtained. About 65.84 per cent of the enterprises profitability
has been increasing. Only in 7.50 per cent of the enterprises the profitability has been decreasing. Among
one fourth of the enterprises profitability has been stable. The enterprises representing over 51.66 per cent
have taken less than two years to earn profits after commencement of the business and over 26.67 per cent
have taken three years to earn profits after commencement of business. About 34.27 per cent have opined
high prices of raw material are the main problem in obtaining raw material followed by scarcity (about
15.00 per cent), transportation (about 15.83 per cent) storage (about 11.84 per cent) and preservation
(about 99.17 per cent). About 11.66 per cent of the entrepreneurs haven’t faced any raw material
problems. Most of the entrepreneurs have marketing problem also (about 97 per cent). About 29.17 per
cent have the problem of absenteeism followed by skill shortage (about 22.50 per cent), employee
turnover (about 22.50 per cent) and low productivity (about 6.67 per cent). In finance, the main problems
are: high interest rates (about 32.50 per cent), meager assistance from banks and financial institutions
(about 43.33 per cent).
8.1 Testing Hypothesis
The co-relation between availability and use of financial resources via, own funds, loans from commercial
banks and financial institutions and profitability (ROI) has been calculated (Table 2).
The correlation between loans taken from financial institutions, commercial banks by MSMEs
and their profitability (ROI) has been -525,-380 respectively. This negative correlation is significant at
0.001 levels. So, it is inferred that there is a significant negative correlation between the use of loans from
commercial banks and financial institutions and ROI of MSMEs. Between Own funds and ROI, the
correlation is 0.130 which is significant at 0.05 level. There is a significant co-relation between the
availability and use of financial resources and profitability (ROI) of the Micro Small and Medium
Enterprises. Hence, Ho1 is rejected.

Table 2: Correlation between Financial Resources and Profitability
Own funds
Loans from
Commercial
Banks
Loans from
Financial
Institutions ROI
Own funds Pearson Correlation 1 -.017 -.006 .130
Sig. (2-tailed) .911 .978 .082*
N 179 48 24 179
Loans from
Commercial
Banks
Pearson Correlation -.017 1 .146 -.380**
Sig. (2-tailed) .911 .527 .004
N 48 55 21 55
Loans from
Financial
Institutions
Pearson Correlation -.006 .146 1 -.525**
Sig. (2-tailed) .978 .527 .008
N 24 21 24 24
ROI Pearson Correlation .130 -.380**
-.525**
1
Sig. (2-tailed) .082 .004 .008
N 179 55 24 192
Source: Author Compilation, *p<0.05, **p<0.001
9. Regression Analysis
Organizational performance in terms of ROI can be perceived to be influenced by several independent
variables via more advertisements, very good customer relationship management, more salaries to
employees, work orientation, close supervision on employees, more sales, reduce in expenditure, creative
ideas and thoughts, very good ambience, new technology, more support from Govt. quality improvement,
Knowledge Management.
Table-3(a):Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .632a
.399 .355 .09617
Table-3(b): ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 1.092 13 .084 9.084 .000a
Residual 1.646 178 .009
Total 2.738 191
p< 0.001** level

The adjusted R square .355 reveals that there is about 36 percent combined influences of 13
independent variables on the dependent variable - organizational performance (in terms of ROI) of their
respective enterprises (Table-3). There is a significant difference that has been found in the influences of
such independent variables on the dependent variable (F- 9.084, significant at 0.01 levels) (Table-3b).
Table-3(c):Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) .232 .067 3.434 .001**
By giving more
advertisements
.046 .010 .314 4.464 .000**
By Very good customer
relationship mgt
.022 .012 .127 1.909 .058*
By giving more salaries to
employees
.039 .011 .244 3.462 .001**
By extracting more work
from employees
-.006 .002 -.165 -2.553 .012*
With close supervision on
employees
.004 .014 .020 .271 .787
By increasing more sales .021 .011 .120 1.958 .052*
By reducing expenses -.024 .012 -.135 -1.998 .047*
Creative ideas and thoughts -.003 .013 -.015 -.213 .832
By creating very good
ambience
.005 .013 .032 .432 .666
By using new technology .066 .012 .376 5.717 .000*
By getting benefits more
support from govt.
-.049 .012 -.309 -4.125 .000*
Improving quality of the
product
.005 .016 .024 .311 .756
By adopting proper
Knowledge management
.048 .011 .315 4.302 .000*
p<0.05*, p<0.001**

IJMDS. Vol.1, No.2 July-2013

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