Motivational factors of entrepreneurs to start the unit ( Analysis of data)
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1 211 Chapter - 5 Motivational factors of entrepreneurs to start the unit ( Analysis of data) In this chapter, an attempt has been made by the researcher to examine the major dominant motivational factors to start the unit and the data relating to the motivational factors are analysed Introduction The industrial entrepreneurship at any time is dependent upon a variety of complex factors financial, institutional, cultural, personal and environmental. Among these, the personal and the cultural factors of the individual entrepreneurs play a key role in designing the entrepreneurship development as well as the successful running of the unit. The industrial activity of these entrepreneurs is also affected by the global situation and the monetary and political trends. Different theorists belong to different schools of thought like Schumpeter, McClelland, Hagen,Kunkal to the psychological, Max Weber, Cochron, Hoselitz, Stokes to the sociological and Gustav Papanek, Harris, Kirzner to the economic viewpoints. According to R.A.Sharma, a majority of the new entrepreneurial class was prompted to enter into industry mainly because of three factors.
2 They had a strong desire to do something independent in life; 2. They possessed technical knowledge or trading or manufacturing experience in the same or related line; 3. Governmental and Institutional assistance became available to those would have perhaps otherwise not taken up entrepreneurial activity. All these influencing factors have been broadly grouped into ten. They are: 1. Family members 2. Friends 3. Experience in the line 4. Surplus funds from Agriculture 5. Surplus funds from Business 6. High demand for the products 7. Availability of raw materials 8. Government s Assistance 9. Availability of cheap labour 10. To avail; backward area concessions Researchers have found the following entrepreneurship among the persons: 1. Socio economic factors 2. Entrepreneurial characteristics factors that tend to influence
3 213 P.N.Sharma identified nine motivating factors which are as follows: 1. Educational background 2. Occupational experience 3. Desire to work independently in manufacturing line 4. Desire to branch out to manufacturing 5. Family background 6. Assistance from Government 7. Assistance from financial institutions 8. Availability of technology / raw material 9. Other factors demand of the particular product, utilization of excess money earned from contractual estate business started manufacturing to facilitate trading / distribution business since the product was in short supply, unstable policy of the foreign government for non-residents, and no chance for further promotion. The above nine factors were grouped into two major categories internal and external. First five motivating factors were termed as internal and the last four factors as external. The internal motivating factors like education, occupational experience, family background, the desire to do something independently together make the personality of the entrepreneur. These factors generate an inclination to adopt entrepreneurial activity. The presence of internal factors is no doubt a necessary condition for entrepreneurial activity to take place. But entrepreneurial ideas cannot fructify without a propitious environment which provides support in terms of financial assistance, technology and raw
4 214 material and infrastructural facilities. These facilities or assistance are the external motivating factors and serve as a spark in the lightening of the entrepreneurial ideas. The factors also provide a momentum to the entrepreneurial activities. Business experience provides confidence to the entrepreneur who helps reduce the element of uncertainty regarding demand of the product, technology, raw material, etc. Further, traders / merchants generally have surpluses to provide initial finance required by the financial institutions as promoters contributions. Most important is the fact that traders / merchants are already sensitive to market incentives, and used to taking risk in the trading / business fields. Relationship between occupational experience of the entrepreneur and nature of enterprise promoted also suggests that occupational experience is an important motivating factor. Technically or professionally qualified entrepreneurs considered educational qualification as the main motivating factor. Most of the technically qualified persons had established enterprises in the fields of their specialization which shows that such entrepreneurs were prompted by their qualification or specialization to undertake the industrial activity. Desire to work independently in manufacturing line came out as another important motivating factor. An entrepreneur in this category expressed a desire to have important share in the decision making and control in the overall working of an organization.
5 215 Table 5.1: Motivational factors of the respondents to start the units Yes Factor. Motivational Factors No. No N % N % F.1 To fulfill the ambition of my parents % % F.2 To keep myself busy and engaged % % % % To improve my economic status and social F.3 prestige. F.4 I have not educated to seek a job % % F.5 Because I could not get a job % % F.6 Because I wanted to be independent % % F.7 To fulfill own ambition % % % % I felt that a job will not provide me enough F.8 money Interpretation The above table reveals that out of 1000 respondents, for the Factor 1, 74.4% said yes and 25.6% said no. For the Factor 2, 68.8% said yes and 31.2% said no. For the Factor 3, 56% said yes and 44% said no. For the Factor 4, 37.2% said yes and 62.8% said no. For the Factor 5, 47.6% said yes and 52.4% said no. For the Factor 6, 61.6% said yes and 38.4% said no. For the Factor 7, 51.6% said yes and 48.4% said no. For the Factor 8, 60.4% said yes and 39.6% said no, as their opinions about the motivational factors.
6 216 Chart 5.1
7 217 Table 5.2: Subsidiary factors of motivation Yes Sl No Subsidiary factors No N % N % SF.1 Family Members % % SF.2 Friends % % SF.3 Experience in the line % % SF.4 High Demand for the product % % SF.5 Availability of raw materials % % SF.6 Surplus funds from agriculture % % SF.7 Surplus funds from business % % SF.8 Government assistance % % SF.9 Availability of cheap labour % % % % To avail backward area SF.10 concessions. Interpretation The above table explains the opinions about subsidiary factors that encouraged them to start the unit. Out of 1000 respondents, For Subsidiary Factor 1, 78.8% said yes and 21.2% said no. For Subsidiary Factor 2, 68.4% said yes and 31.6% said no. For Subsidiary Factor 3, 46% said yes and 54% said no. For Subsidiary Factor 4, 42% said
8 218 yes and 58% said no. For Subsidiary Factor 5, 34.8% said yes and 65.2% said no. For Subsidiary Factor 6, 24.4% said yes and 75.6% said no. For Subsidiary Factor 7, 26.4% said yes and 73.6% said no. For Subsidiary Factor 8, 22.8% said yes and 77.2% said no. For Subsidiary Factor 9, 25.6% said yes and 74.4% said no. For Subsidiary Factor 10, 33.6% said yes and 66.4% said no as the subsidiary factor.
9 219 Chart 5.2
10 220 Table 5.3: Assistance required for running the unit Respondents opinion Assistance required for No. of respondents Percentage Favourable Govt. Policy Training Facilities Incentives & Concessions Others running the unit Total Interpretation The above table reveals that out of 1000 respondents, 62.8% of them said favourable government policies, 15.2% of them said training facilities, 16% of them said incentives and concessions and 6% said others as their choices of assistance required for running the unit.
11 221 Chart 5.3
12 222 To conclude, in this chapter, an attempt has been made by the researcher to examine the major dominant motivational factors to start the unit and the data relating to the motivation factors have been analysed.
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