2. CHALLENGES FACED BY RICE
MILL ENTREPRENEURS IN
SRIKAKULAM &
VIJAYANAGARAM DISTRICT
UNDER THE GUIDANCE OF
DR.
3. INTRODUCTION
India lives in rural areas, while urban areas have developed significantly in the last 20 years,
rural areas have not seen much progress. Rural development will increase for a strong Indian
economy.
Economic development promotes the strength and health of the country's trade, depends on
the speed and equality of its development and the extent of social benefits and index of
administrative capacity. Therefore, the growth of our economy depends on the strength of
entrepreneurs.
Rural entrepreneurship promotes rural employment by empowering self-starters and
improving economic conditions in rural areas.
4. ENTREPRENEURSHIP
The changing global situation creates the most important need to respond to the needs of the
global market. Today's business development concept leads not only to a global vision of
industrial development and business services, but also a solution to unemployment and social
and economic development of the country.
Rural entrepreneurs play an important role in determining the economic development of a
country.
Rural business expansion helps mobilize and use local resources and prevents migration of
skilled labor from rural to urban areas, creating opportunities for self-employment.
However, entrepreneurs faces various challenges in rural areas due to lack of fundamental
factors such as economic stability, entrepreneurship, illiteracy, poor infrastructure, lack of
government support and poor governance issues.
5. STATEMENT OF THE PROBLEM
Entrepreneurs in rural areas face many problems such as lack of infrastructure and rural
development.
Agricultural and rural enterprises occupy an important position between farmers and users of
agricultural products, and their expansion can be a catalyst for rural development at all levels.
Rural entrepreneurs often provide large employment opportunities by using local resources as
there is progress in the development of the manufacturing sector.
The government is looking for rural entrepreneurship as a good base and concept to speed up
the rural development process.
The development and prosperity of the rural areas is an important factor for the development
of the entire country.
6. AIM AND OBJECTIVES OF THE STUDY
The purpose of this study is to examine the challenges faced by mill owners in selected districts
of Andhra Pradesh. Therefore, the aim of the study is to focus on the challenges faced by
entrepreneurs mainly from the rice mill industry in selected rural areas of Andhra Pradesh.
The main objective of the research is to identify the challenges faced by the rice mill owners in
the districts of Srikakulam and Vijayanagaram, Andhra Pradesh.
The secondary objectives of the study is
To understand whether the Rice Mill Owners have enough storage space of their own & FCI
Warehouses
To analyse the extent of getting funds easily with support of Banks & Government agencies
To apprehend whether the Rice Mill owners are technically trained to conducted repairs when
needed
7. RICE MILL INDUSTRY IN ANDHRA
PRADESH
In Andhra Pradesh there are two regions with low productivity i.e. yield in the range of 1500-
2000 kg/hectare.
The average paddy area of these two districts is 3.32 hectares, which is 7.9% of the state's
paddy area in the current decade.
The average rice production in these two regions is 6.32 tons, which is 5.4 percent of the
average rice production in the state during the current decade.
The Krishna-Godavari delta region and the river region (Nellore) are rice producers.
The study was conducted in East Godavari and Nellore districts as they account for 25% of the
cultivated area and 31% of the rice production in the state.
Rice varieties are well organized and rice is distributed through Public Distribution System (PDS)
and private channels.
8. SCOPE OF THE STUDY
This study investigates how different conditions affect the rice milling industry in selected
districts.
This study is based on information and data collected through structured questionnaires from
various rice milling companies, associations and unions.
It is a study of all the important factors that affect the competitiveness of rice millers.
This study is based on information and data collected through structured questionnaires from
various rice milling companies, associations and unions.
9. RESEARCH METHODOLOGY
Research Design : Descriptive research design.
Sources of data : Primary Data & Secondary Data.
Pilot Survey : 50 respondents
Reliability Value : 0.96
Sampling Technique: Stratified Random Sampling.
Sample Size : 277 (28% of 979 rice mills)
Analytical Tools : Frequency Table, ANOVA, Factor Analysis, Structural Equation Model
10. LIMITATIONS
Focused only on Private Sector rice mills in selected districts of Andhra Pradesh
There is a chance that the respondents would have provided biased opinion.
The study is focused only in Andhra Pradesh and other states were not considered
Findings and recommendations is more focused to the rice mill industry in the same State.
Sample is limited to 277 only.
11. ANALYSIS AND FINDINGS
From the overall analysis it is noted that most of the respondents (41.5%) of them were in married
joint family, 37.9% were from Single joint family, 11.2% were in nuclear family, 9% were single and
0.4% were divorced / widow.
Based on the analysis it is noted that 41.9% of the respondents mentioned that their family size is 2 –
5 members, 35% mentioned that their family size is between 6 – 9, 14.1% have stated that their
family size is between 10 – 13, 5.1% said that it was 1 and remaining mentioned their family size is
more than 14. Hence, most of the respondents stated that their family size is between 2 – 9.
From the analysis it is noted that 38.3% have mentioned that they have passed higher secondary,
27.4% of them have mentioned that they have passed high school, 20.9% stated that they have
completed graduation, 9.7% have mentioned that they have completed diploma courses and
remaining 3.6% stated that they have completed postgraduation.
The analysis shows that 78.3% of the respondents have mentioned that they live in their own house,
15.5% mentioned that they live in their parent’s house, 5.4% were in rented house and remaining
were in sharing accommodation.
12. The table reveals that most of the respondents (834% have mentioned that they own the rice
mill, 15.9% have mentioned that it is on lease and remaining has stated that it has been sublet.
It has been noted from the analysis that 44.4% of the respondents mentioned that the size of
the rice mail is small whereas nearly an equal value which is 44% have mentioned that their rice
mill size is considered to be medium and remaining has stated that the rice mill size is large.
The analysis reveals that 45.1% of the respondents have mentioned that their rice mill capacity
is between 1 – 2 tons, 24.9% have mentioned that their mill capacity is less than 1 tons, 19.5%
have mentioned that their rice mill capacity is between 3 – 4 tons, 6.9% has stated that the rice
mill capacity is between 4 – 5 tons and remaining 3.6% have stated that the rice mill capacity is
more than 5 tons.
13. It is widely noted that the motivational factors are mainly influenced by the demographic
variables of the entrepreneurs based on the total ownership, milling capacity etc. Hence, the
major influences considered are self-motivation, being more independent, considering rice mill
operation as an alternative to the agriculture. Hence from overall analysis it is noted that the
Size of the rice mill entrepreneurs is having significant influence on their perception towards the
Factors of motivational aspects of entrepreneurship development in the district.
14. Factor Analysis
Based on the factor analysis the Factor Loadings, Composite Reliability and AVE (Average
Variance Extracted) values of the measurement Model for challenges faced by the rice mill
owners in the stated districts. All the measurement items have sufficient factor loadings
indicating One-dimensionality of the model. The convergent validity of the model was
established as the AVE of each latent construct is above the acceptable limit of 0.5. Besides,
Composite Reliability is also achieved as the CR values exceed the acceptable level of 0.60 for all
the latent constructs in the model. The construct validity of the measurement model was
achieved when all fit indices exceed the required level as discussed earlier.
15. Structural Equation Model
Fit Index Value Acceptance level
Chi square 91.26
GFI 0.903 >0.900
AGFI 0.855 >0.800
CFI 0.912 >0.900
RMSEA 0.065 0.05 - 0.08
The above table shows the fit indices of the measurement model. The reported fit indices of GFI are 0.903,
AGFI is 0.855, CFI is 0.912 and RMSEA is 0.065 all beyond the acceptable limits, indicating construct validity.
16. Test of Hypothesis
Factors Estimate Results
Rice Mill Owners have enough storage space of their own & FCI Warehouses 0.917 Hypothesis is accepted
Rice Mill Owners get funds easily with support of Banks & Government agencies 0.539 Hypothesis is rejected
Rice Mill owners are not technically trained to conducted repairs when needed 1.476 Hypothesis is accepted
There is no unity in rice mill owners 1.000 Hypothesis is accepted
Not all rice mill owners own their own logistic they have to depend on third party
logistics 1.366 Hypothesis is accepted
17. Conclusion
The rural sector plays an important role in the Andhra Pradesh situation where there is chronic
unemployment among the educated youth, especially in the rural areas.
Collaboration among the entrepreneurs are considered as a good solution to this problem.
Rural enterprises can overcome the economic decline in rural and underdeveloped areas, reduce
poverty in the area, use natural resources efficiently, improve living standards, and achieve freedom
and high development capacity in accordance with the needs of the times.
Organizations and individuals promoting rural development recognize entrepreneurship as a
development strategy that can accelerate the process of rural development.
Development agencies see rural development as a great job opportunity, politicians see it as a key
strategy to end rural unrest, farmers see it as a way to improve farm income, women see it as a job
opportunity close to home that creates independence and freedom.
Independent, educated and unemployed youth believe that this is the only way to own property and
the country recognizes it as an effective way to develop the country by contributing to GDP.
