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A Study on the Factors Influence Women Entrepreneurs in Tiruchirappalli District

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The main objective of project is study factors influencing women entrepreneurs in Tiruchirappalli district, analyzing the socio economic cultural factors, government policy factors, family status factors, personal characteristic factors, financial factors, motivational factors, market and network factors. In this study researcher tried to identify the factors influencing women entrepreneurs, so that areas of improvement can be identified and necessary steps can be given for implementation. The research design adopted in this study comes under descriptive design. A descriptive study is undertaken in order to ascertain and be able to describe the characteristics of factors influencing women entrepreneurs in Trichy district. The sampling method used for this study is simple random sampling. In this study the researcher has adopted, independent sample t-test, multivariate analysis, correlation, regression, factor analysis comes under the data analysis. The study provides a comprehensive review of the 26 critical factors influencing the growth of women entrepreneurs particularly in Trichy as the factors are derived from the global literature on women entrepreneurship. These would aid in better positioning the significance of these critical factors towards the success of the entrepreneurs in Trichy and in general.

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A Study on the Factors Influence Women Entrepreneurs in Tiruchirappalli District

  1. 1. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 78 | P a g e R.V.S. College of Arts & Science, Karaikal A Study on the Factors Influence Women Entrepreneurs in Tiruchirappalli District S. Hemavathy1 , Dr. Sheeba Julius2 ABSTRACT: The main objective of project is study factors influencing women enterpreneurs in thichirapalli district, analyzing the socio economic cultural factors, government policy factors, family status factors, personal characteristic factors, financial factors, motivational factors, market and network factors. In this study researcher tried to identify the factors influencing women entrepreneurs, so that areas of improvement can be identified and necessary steps can be given for implementation. The research design adopted in this study comes under descriptive design. A descriptive study is undertaken in order to ascertain and be able to describe the characteristics of factors influencing women entrepreneurs in Trichy district. The sampling method used for this study is simple random sampling. In this study the researcher has adopted, independent sample t-test, multivariate analysis, correlation, regression, factor analysis comes under the data analysis. The study provides a comprehensive review of the 26 critical factors influencing the growth of women entrepreneurs particularly in Trichy as the factors are derived from the global literature on women entrepreneurship. These would aid in better positioning the significance of these critical factors towards the success of the entrepreneurs in Trichy and in general. KEYWORD: women enterpreneurs, entrepreneurship development, self-employment. According to J.A. Schumpeter, “Women who innovates, imitates, or adopts a business Activity is called women entrepreneur”. Thus women entrepreneur are those women who initiate, organize and operate business enterprise and want to prove their mettle in innovative and competitive jobs. She also want to oversee and control every aspects of her business for it is overall success. The Indian economy has been witnessing a drastic change since mid-1991, with new policies of economic liberalization, globalization privatization initiated by the Indian government. India has great entrepreneurial potential. At present, women involvement in economic activities is marked by a low work participation rate, excessive concentration in the unorganized sector and employment in less skilled jobs. 1.1 Women Entrepreneurs in India are broadly divided into the follow categories: a) Affluent entrepreneurs b) Pull factors entrepreneurs c) Push d) Self- employed entrepreneurs e) Rural entrepreneurs a) Affluent entrepreneurs: Affluent r entrepreneurs are women entrepreneurs who hail from rich business families. They are the daughters, daughters-in laws, sisters, sisters-in laws 1 Ph.D., Research Scholar, Bharatiar University, Coimbatore, Tamil Nadu, South India – 641 046. 2 Assistant Professor & Research Supervisor, Department of Commerce, A.D.M. College for Women, Nagapattinam, Tamil Nadu, South India – 611 001.
  2. 2. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 79 | P a g e R.V.S. College of Arts & Science, Karaikal and wives of people in the society. Many of them are engaged in beauty parlour, interior decoration, book publishing, film distribution and the like. The family supports the above type of entrepreneur in carrying out their responsibilities. b) Pull factors: Women in towns and cities take up entrepreneurship as a challenge to do something new and to be economically independent. These are coming under the category of pull factors they belong to educated women who generally lake up small and medium industries where risk is low. Under this category, women usually start service centers schools, food catering centers restaurants, grocery shops etc. c) Push Factors: There are some women entrepreneurs who accepts entrepreneurial activities to overcome financial difficulties. The family situation forces them either to develop the existing family business or to start new ventures to improve the economic conditions of the family. Such categories of entrepreneurs are termed as push factors. d) Self Employed Entrepreneurs: Poor and very poor women in village and town rely heavily on their own efforts for sustenance. They start tiny and small enterprises like brooms making wax candle making providing tea and coffee to offices, ironing of cloths knitting work tailoring firm etc., such women are called self –employed entrepreneurs. e) Rural Entrepreneurs: Women in rural areas/villages start enterprise which needs least organizing skill and less risk. Dairy products, pickles, fruit juices pappads and jagger making are coming under this category of rural entrepreneur. 1.2 Categories of women entrepreneurs:  Women in organized & unorganized sector  Women in traditional & model industries  Women in urban & rural areas  Women in large scale and small scale industries  Single women and joint venture 1.3 Supportive measures for women’s economic activities and entrepreneurship:  Direct & indirect financial support  Yojna schemes and programmes  Technological training & awards  Federations and associations 1.4 Direct & indirect financial support:  Nationalized banks  State fince corporation  State industrial development corporation  District industries centers  Differential rates schemes  Mahilaudyug needhi scheme  Small industries development bank of India (SIDBI)  State small industries development corporation (SSIDCs)
  3. 3. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 80 | P a g e R.V.S. College of Arts & Science, Karaikal 1.5 Scope of the study: The outcome of this paper can be used by researchers, government, non-governmental organizations, civil society, and local community to formulate effective policy that motivate women to become entrepreneurs. This will have a positive effect on women participation on the economic development of India. 1.6 Objectives of the study: 1. To find out the demographic information of the women entrepreneurs. 2. To identify the information regarding the business done by the women entrepreneur. 3. To measure the factors influencing women entrepreneur with respect to socio economic & cultural factors, government policy & rules factors family status factors, personal characteristics factors, financial and fund support factors motivational factors, market& network factors. 1.7 Hypotheses framed:  There is significant difference in the mean score of influencing factors among the women entrepreneurs.  There is significant difference between the influencing factor sore across the independent variables. 1.8 Review of Literature: Franck, Anja K (2012) examine the factors which motivate women’s informal micro- entrepreneurship in Malaysia. Design/methodology/approach - The qualitative analysis employed in this paper is based upon empirical findings from field work conducted in the state of Penang on the north-western coast of Peninsular Malaysia. In total, 39 hawkers (petty traders) were interviewed using an interview guide which contained open-ended questions regarding work-life history, labor market choices and conditions of work. The paper presents two selected case stories, as well as the general findings across the whole sample. Findings - In contrast to the view that women’s informal micro-entrepreneurship is motivated only by "involuntary exclusion from the labor market" or "poverty", this paper has found that women’s micro-entrepreneurship can be motivated by a wide range of factors including: to earn an income; interest in doing business; increased flexibility and autonomy; possibility to combine with family obligations; and re-negotiating spatial practices. Conclusive with previous studies it also argues that necessity and choice may be "co-present" in the motives to enter into entrepreneurship. Research limitations/implications - The limited sample of this study has implications for the generalizability of results. Further studies into the women’s micro- entrepreneurial activities in Malaysia are therefore encouraged. Social implications - women’s micro-entrepreneurship is increasingly being promoted as a way to create growth and development (particularly through micro-credit schemes). Increasing knowledge around motivational factors, performance and conditions of work for women informal micro- entrepreneurs is therefore important when trying to establish appropriate policies. Originality/value - There are very few studies in the Malaysian context which focus upon women’s informal micro-entrepreneurship in general and hawking in particular. This study
  4. 4. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 81 | P a g e R.V.S. College of Arts & Science, Karaikal therefore presents new knowledge around women’s informal micro-entrepreneurship in Malaysia. Gundry, Lisa K, Ben-Yoseph, Miriam; Posig, Margaret (2002) The study of phenomenon related to women’s entrepreneurship has been augmented by the tremendous growth in the formation and development of women-owned businesses during the past 2 decades. Following the last comprehensive review of research on women-owned firms that was conducted in the mid-1990s, this paper examines major areas of inquiry related to entrepreneurial capabilities, motivations and the acquisition of resources to launch and grow the business. The most contemporary research is synthesized to provide implications for entrepreneurship education, and recommendations to guide further scholarship and practice in this area are presented. Research Methodology 2.1 Research design: The research design used in this is descriptive Research. 2.2 Nature of data: The primary and secondary data sources are used for the collection of information for the study. 2.2.1 Primary data: The primary data include data collected from the women entrepreneurs in trichy. 2.2.2 Secondary data: Secondary data was collected from internet and used for preparing industry profile. Review of literature from secondary sources such as websites and online database PROQUEST. 2.3 Universe: Universe of the study comprises of all the women entrepreneurs, in Trichy district. The list of total women entrepreneurs in Trichy district was collected from TIDISSIA which contained 400 women entrepreneurs. 2.4 Sample size: The sample size was 220 women entrepreneurs in Trichy. The sample size was calculated using the formula N = (Z*S) 2 , where; Z=1.96, S = 0.378, e = 0.05 e 2.5 Sampling method: The sampling method used for this study is Simple Random Sampling. Because the researcher used lottery method to select the 220 entrepreneurs from the universe. 2.6 Data analysis: Independent sample t-test, MANOVA for factors influencing women entrepreneurship and its dimensions.
  5. 5. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 82 | P a g e R.V.S. College of Arts & Science, Karaikal Result The independent sample t-test of factors influencing women entrepreneurship and its dimensions (see table 1) shows that the significant value for independent sample t-test of government policy factor score is 0.027 which is less than 0.05, personal characteristic factor score is 0.001 and factors influencing women entrepreneur score is 0.012.Therefore we reject the null hypothesis. Ho. Hence, women entrepreneurs with business license have higher score of government policy factor, personal characteristic factor, and influencing factor when compared to women without license. The multivariate analysis of variance for influencing factors as dependent variable and other dimensions as independent variables (see table 2) indicates that significance value for Wilks’ Lambda value is 0.000 for the marital status of the respondent and 0.002 for qualification of the respondent, and 0.000 for the other income of the respondent and 0.030 for spouse qualification of the respondent which is less than 0.05. i.e., MANOVA is significant for the independent variables, status, qualification, other income, and spouse qualification. . Findings Demographic information: A summary of the participants’ background is reported. It is clear from that most of the respondent those who have participated in the survey are between the age group of 36 to 45. However, most of the respondents are completed their professional training and their monthly income below 10,000. Rational information: Most of the respondents are living in nuclear family and their spouse are completed their school. Majority of the respondents business was owned personally and established their business by themselves, aim to make a profit, and running their company at micro level. Most of the respondents are having their employees between 2 to 5, mostly operating in manufacturing sector. Majority of the respondents targeted only local market, and do not having the license. Factors influencing women entrepreneurs: Factors influencing women entrepreneur varies highly according to the changes in socioeconomic cultural factor, government policy factor, financial factor, personal characteristic factor, motivational factor, market network factor. And family factor has low positive significant correlation with socio-economic cultural factor, government policy factor, financial factor, family status factor, motivational factor, market network factor. Factors influencing women entrepreneur is affected by changes in personal characteristic factor, family status factor, government policy factor, motivational factor, financial factor, market network factor. The study reveals that the construct factors influencing women entrepreneurship varies for Indian situation and it contains 19 items belonging to 8 factors instead of 26 items belonging to 7 factors in an International situation. Socio-economic cultural factors: Socio-economic cultural factor score influence on women entrepreneurs is low. The Socio-economic cultural factor for of divorced respondents was the highest and married respondents were the lowest. The Socio-economic cultural factor score for respondents with UG qualification was the highest and school qualification was the lowest. The Socio-economic cultural factor score for women entrepreneur operating in service sector was the highest and trade sector was the lowest.
  6. 6. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 83 | P a g e R.V.S. College of Arts & Science, Karaikal Government policy and rule factors: Women entrepreneurs with Business license have higher w=score of government policy factors, when compared to women without Business license. Influence on women entrepreneurs the government policy factor score is low. The government policy factor score for respondents with PG qualification was the highest and school qualification was the lowest. The government policy factor score for women entrepreneur operating in manufacturing sector was the highest and service sector was the lowest. Family status factors: Women entrepreneurs with Business license have higher score of family status factors, when compared to women without Business license. The mean score for family status factor score is low. Family factor has low positive significant correlation with Socio-economic cultural factor, government policy factor, financial factor, family status factor, motivational factor, market network factor. The family status factor of single respondents was the highest and marred respondents were the lowest. The family status factor is for ownership of owned personally was the highest and owned with partners was the lowest. The family status factor score for women entrepreneur operating in service sector was the highest and trade sector was the lowest. Personal characteristics factors: Women entrepreneurs with Business license have higher score of personal characteristic factor, when compared to women without Business license. The mean score for personal characteristic factor score is low. The personal characteristic factor score for respondents with PG qualification was the highest and school qualification was the lowest. The personal characteristic factor score for women entrepreneur operating in service sector was the highest and trade sector was the lowest. Financial resources factors: Women entrepreneurs with Business license have higher score of financial resources factor, when compared to women without Business license. The mean sore for financial resources factor sore is very high. The financial factor is for other sources of income, others respondents were the highest and business respondents were the lowest. The financial factor score for women entrepreneur operating in service sector was the highest and trade sector was the lowest. Motivational factors: Women entrepreneurs with Business license have higher score of motivational factor, when compared to women without Business license. The mean score for motivational factor score is moderate. The motivational factor of single respondents was the highest and divorced respondents were the lowest. The motivational factor is for score for respondents with UG qualification was the highest and professional qualification was the lowest. The sector of business, for women entrepreneur operating in service sector was the highest and other sector was the lowest. Market and informational network factors: Women entrepreneurs with Business license have higher score of market and network factor, when compared to women without Business license. The mean score for market and network factor score in moderate. The market and informational network factor for score for respondents with PG qualification was the highest and school qualification was the lowest. The market and informal network factor for other sources of income, other respondents was the highest and business respondents was the lowest. The market and informal network factor is for spouse qualification, others respondents was the highest and professional respondents was the lowest.
  7. 7. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 84 | P a g e R.V.S. College of Arts & Science, Karaikal Suggestions  An Awareness programme should be conducted on a mass scale with the intention of creation awareness among women about the various areas to conduct business.  Organize training programmes to develop professional competencies in managerial, leadership, marketing financial, production process, profit planning, maintaining books of accounts and other skill. This will encourage women to undertake business.  Vocational training to be extended to women community that enables them to understand the production process and production management.  Women in business should be offered soft loans & subsides for encouraging them into industrial activities. The financial institutions should provide more working capital assistance both for small scale venture and large scale ventures.  Making provision of micro credit system and enterprise credit system to the women entrepreneurs.  Educational institutes should tie up with various government and Non-government agencies to assist in entrepreneurship development mainly to plan business project.  Women should try to upgrade themselves in the changing times by adapting the latest technology benefits. Women must be educated and trained constantly to acquire the skill and knowledge in all the functional areas of business management. This can facilitate women to excel in decision making process and develop a good business network.  Increase the ability of women to participate in the labor force by ensuring the availability of affordable child care and equal treatment in the work place. More generally, improving the position of women in society and promoting entrepreneurship generally will have benefits in terms of women’s entrepreneurship. Conclusion and Future Work The study provides a comprehensive review of the 26 critical factors influencing the growth of women entrepreneurs particularly in Trichy. As the factors are derived from the global literature on women entrepreneurship, it is hoped that the recommendations made in this study provide useful guidelines to women entrepreneurs, government, associations, and BGOs and other relevant stakeholders. It is also hoped that additional research will be undertaken to build upon this work. Empirical evidence and /or case studies on successful women entrepreneurs based on the factors proposed are possible research areas. These would aid in better positioning the significance of these critical factors towards the success of women entrepreneurs in Trichy and in general. Reference [1] Achar, Ananthapadhmanabha. World conference Proceedings: 1-2A. Washington: International council for small business (ICSB). (2008). [2] Altinay, LeventAltinay, Eser. International Journal of Entrepreneurial Behaviour & Research 14.1 (2008): 24-46. [3] Aramand, Majid; Terhune, Todd. International council for small Business (ICSB). World conference Proceedings: 1-29.
  8. 8. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 85 | P a g e R.V.S. College of Arts & Science, Karaikal [4] Basu, AnuradhaGoswami, Arati. International Journal of Entrepreneurial Behaviour & Research 5.5 (1999): 251+. [5] Boyd, Nancy G, Vozikis, George S Entrepreneurship Theory and Practice 18.4 (Summer 1994): 63. [6] De Pillis, Emmeline, Reardon, Kathleen K. Career Development International 12. 4 (2007): 382- 396. [7] E Holly Buttner, Moore, Dorothy P. Journal of Small Business Management 35. 1 (Jan 1997): 34- 46. [8] Elijah-Mensah, Angela; Saffu, Kojo. World conference proceedings: 1-39 International council for small business (ICSB). (2010). [9] Franck, Anja K, International Journal of Gender and Entrepreneurship 4.1 (2012): 65-78. [10] Gundry, Lisa K, Ben-Yoseph, Miriam; Posig, Margarent, New England Journal of Entrepreneurship 5.1 (Spring 2002): 39-50. [11] Kyobe, Michael, Journal of Global Information Management 17.2 (Apr-Jun 2009): 30-56. [12] Lee, Jean. Women in Management Review 11.2 (1996): 18-29. [13] Law, Philip; Hung, Jennifer. Journal of GRCA: Human Resource Costing & Accounting 13.1 (2009): 29-45. [14] Madsen, Henning; Neergaard, HelleJohn P. Ulhoi International Journal of Entrepreneurial Behaviour & Research 14.2 (2008): 70-84. [15] Minniti, Maria. The European Journal of Development Research 22.3 (jul 2010): 294-312. [16] Mitra, Reshmi. Journal of Developmental Entrepreneurship 7.2 (Aug 2002): 217-237 [17] Potter, JonathanProto, Alessandra. OECD Papers 6.12 (2007): 1,3-4,8-10,14-76,78-135. [18] Ramana, Chivukula Venkata; Raman, K J; Aryasri, Ramachandra A. South Asian Journal of Management 16.4 (Oct-Dec 2009): 111-126. [19] Syde Zamberi Ahmad. International Journal of Gender and Entrepreneurship 3.2 (2011): 123-143. [20] Zinger, J TerenceLeBrasseur, Golland; Zanibbi, Louis R, Journal of Developmental Entrepreneurship 6.2 (Aug 2001): 129-150. [21] www.proquest.com [22] www.scribd.com [23] www.oecd.org [24] www.youthkiawaaz.com [25] www.emeraldinsight.com
  9. 9. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 86 | P a g e R.V.S. College of Arts & Science, Karaikal Table 1: Independent sample t-test of factors influencing women entrepreneurship and its dimensions t-test for Equality of Means t df Sig. (2-tailed) Mean Difference Soceconculfac Equal variances assumed 1.085 218 .279 .09297 Equal variances not assumed 1.387 94.995 .169 .09297 Govtpolfac Equal variances assumed 2.233 218 .027 .32880 Equal variances not assumed 2.215 63.404 .030 .32880 Familystatusfac Equal variances assumed 1.741 218 .083 .16621 Equal variances not assumed 1.675 61.250 .099 .16621 Perscharachfac Equal variances assumed 3.245 218 .001 .41138 Equal variances not assumed 3.362 66.843 .001 .41138 Finanfac Equal variances assumed -1.018 218 .310 -.07634 Equal variances not assumed -1.246 87.001 .216 -.07634 Motivfac Equal variances assumed 1.536 218 .126 .19459 Equal variances not assumed 1.407 58.203 .165 .19459 MarketNetworkfac Equal variances assumed 1.601 218 .111 .24289 Equal variances not assumed 1.658 66.786 .102 .24289 Influenfac Equal variances assumed 2.475 218 .014 .19436 Equal variances not assumed 2.580 67.391 .012 .19436
  10. 10. International Journal of Advanced Scientific Research & Development (IJASRD) ISSN: 2394 – 8906 www.ijasrd.org, Pp: 78 – 87 Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 87 | P a g e R.V.S. College of Arts & Science, Karaikal Table 2: Multivariate analysis of variance for influencing factors as dependent variable and other dimensions as independent variables: Effect Value F Hypothesis df Error df Sig. Intercept Pillai's Trace .858 164.478a 7.000 190.000 .000 Wilks' Lambda .142 164.478a 7.000 190.000 .000 Hotelling's Trace 6.060 164.478a 7.000 190.000 .000 Roy's Largest Root 6.060 164.478a 7.000 190.000 .000 Age Pillai's Trace .154 1.100 28.000 772.000 .330 Wilks' Lambda .854 1.096 28.000 686.477 .336 Hotelling's Trace .162 1.091 28.000 754.000 .342 Roy's Largest Root .073 2.020b 7.000 193.000 .054 Status Pillai's Trace .308 2.296 28.000 772.000 .000 Wilks' Lambda .720 2.342 28.000 686.477 .000 Hotelling's Trace .353 2.375 28.000 754.000 .000 Roy's Largest Root .198 5.450b 7.000 193.000 .000 Qualification Pillai's Trace .166 2.470 14.000 382.000 .002 Wilks' Lambda .837 2.531a 14.000 380.000 .002 Hotelling's Trace .192 2.591 14.000 378.000 .001 Roy's Largest Root .173 4.720b 7.000 191.000 .000 Course Pillai's Trace .018 .491a 7.000 190.000 .840 Wilks' Lambda .982 .491a 7.000 190.000 .840 Hotelling's Trace .018 .491a 7.000 190.000 .840 Roy's Largest Root .018 .491a 7.000 190.000 .840 Income Pillai's Trace .121 .861 28.000 772.000 .674 Wilks' Lambda .882 .865 28.000 686.477 .668 Hotelling's Trace .129 .869 28.000 754.000 .662 Roy's Largest Root .088 2.437b 7.000 193.000 .021 Otherincome Pillai's Trace .243 3.777 14.000 382.000 .000 Wilks' Lambda .766 3.876a 14.000 380.000 .000 Hotelling's Trace .294 3.974 14.000 378.000 .000 Roy's Largest Root .247 6.752b 7.000 191.000 .000 Family Pillai's Trace .104 1.504 14.000 382.000 .106 Wilks' Lambda .898 1.502a 14.000 380.000 .107 Hotelling's Trace .111 1.500 14.000 378.000 .108 Roy's Largest Root .077 2.103b 7.000 191.000 .045 Spouse Pillai's Trace .216 1.575 28.000 772.000 .030 Wilks' Lambda .798 1.580 28.000 686.477 .030 Hotelling's Trace .235 1.581 28.000 754.000 .029 Roy's Largest Root .119 3.273b 7.000 193.000 .003

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