A STUDY ON PROBLEMS OF ENTREPRENEURS AT

DHARMAPURI DISTRICT
Research Supervisor External Examiner
Dr. M. SURYAKUMAR, Dr.G.RAJU,
Assistant Professor Professor Head & Dean
Periyar Institute of Management Studies (PRIMS) Department of Commerce
Periyar University Salem - 11. School of Business Management & Legal Studies
University of Kerala, Kariavattam University (PO)
Thiruvananthapuram – 695 581.

Research Scholar
J. MOHAMMAD NABI
Periyar Institute of Management Studies (PRIMS)
Periyar University Salem - 11.
 INTRODUCTION AND DESIGN OF THE STUDY
1.1 INTRODUCTION

Entrepreneurs have taken hold across the world and have undeniably impacted the
world of business forever. Over the last two decades entrepreneurship has emerged as arguably
the most patent force the world has ever experienced. Economic development has become the
main concern of the government. However, this concern is gradually shifting from government
role to free enterprise role in view of global changes, which comprise of globalization,
liberalization and privatization. In the coming years, development is to be caused by
individuals alone and not merely by the government. This paradigm shift in development is
only possible through an effective entrepreneurship.
Conti....
Entrepreneurship was considered to be one of the most important determinants in the
process of industrialization, creating employment opportunities and accelerating
economic growth. The entrepreneur was the central figure in the process of
development. It introduced new combinations of factors thereby channelizing the
economy's resource along productive lines. The entrepreneurial activities stimulated
progress and formed the mainspring of economic development. The availability of
entrepreneurs therefore, was the pre-condition of economic growth. Small Scale
Industries constituting about 90% of the total registered units not only enhanced
employment but also broadened the industrial base and enabled entrepreneurship to
spread to more regions and layers of society.
 Conti….
ENTREPRENEURIAL DEVELOPMENT

Economic development is the outcome of human activity. At the centre of

this process stands man: as organizer of community's resources, as worker and as
user of goods produced. The role of the organizer makes all the difference in the
final outcome from his activities. Unless entrepreneurial skills and competencies
of the community are utilized in a useful manner, they are bound to remain
unproductive and retard the development process of the economy. However, the
nature and degree of contribution varies with the society depending on the
challenges it offers and the environment it provides.
REVIEW OF LITERATURE

In this research more than 90 reviews from various domain newspapers,

magazines, periodical journal, website documents etc., have been collected

Around 50 reviews has taken for the review of literature, the research gap

has found and framed as title for the research. A STUDY ON PROBLEMS OF

ENTREPRENEURS AT DHARMAPURI DISTRICT .

STATEMENT OF THE PROBLEM

1. In the process of entrepreneurship, entrepreneur has to face various problems associated

with entrepreneurship. The attitude of male reservation creates difficulties and problems at all levels,
i.e. family support, training, banking, licensing and marketing. The Entrepreneurs in rural areas have
to suffer still more.

2. Problems cited pertain mostly in obtaining finance, delays in the process of getting loan
and providing collateral security, often as a consequence of insensitivity to the particular situation of
women, or due to gender biases.

3. Most women, however, find marketing to be their main problem, In spite of Government
Policies and Schemes offering development programmes and funding, the lies a line of gap that
shows deviation in plan and execution, this of difference requires a systematic and depth analysis
into the cause for and solutions to the problems faced by entrepreneurs in Dharmapuri District.
SIGNIFICANCE OF THE STUDY
1. To provide information service to government policy makers to offer programs and
initiatives nationally, regionally and locally on problems and needs of entrepreneurs

2. To provide growth-minded business owners with the tools they need to take them to the next
level

3. To explore entrepreneurs responsibilities in nation’s growth and development.

4. Its potential contribution to knowledge in the field of social relevance or national

5. Importance; through this study the researcher as found out the real problem faced by the
Entrepreneurs and what the need to overcome such problems. In this respect the Government
and policy makers may take an appropriate policy for promoting Entrepreneurs in the
country.
OBJECTIVES OF THE STUDY

1. To Study the Working pattern and performance of Entrepreneurs in general

particularly in Dharmapuri District.

2. To Study the socio-economic status of Entrepreneur in Dharmapuri District.

3. To assess the factors that influencing funding gap, market sustainability,

technological updation with relevance to Entrepreneurs.

4. To identify the factors influence the Entrepreneurs problems.

5. To assess the suitable mechanism for resolving Entrepreneurs problems.

HYPOTHESES OF THE STUDY
H01: There is no significant difference between year of establishment and level of success.

H02: There is no significant difference between size of enterprise and level of Economic constraints

implied lack of investment for promoting the business and paucity of working capital for

successful running of business

H03: There is no significant difference between type of sector and level of success.

H04: There is no significant relationship between business area and level of success.

H05: There is no significant relationship between current position in the company and level of

success.

H06: There is no significant relationship between educational background and level of success.

H07: There is no significant relationship between age and level of success.

 LIMITATIONS OF THE STUDY

1. This study is based on primary data and therefore it carries all the limitations
of not being compared and verified.

2. This study is restricted to the selected units of entrepreneurs in the

Dharmapuri district only.

3. This study assumes that the information and data provided by entrepreneurs as

authentic.
 RESEARCH METHODOLOGY

A research is conducted with the main purpose of contribution of

something new and unique to the prevailing stock of knowledge in any field by
developing a new concept or effecting advancement in the suggestion of existing
concepts. It can be properly accomplished through any study only through pre
planned and well defined steps applying perfectly applicable methods in each
steps there by facilitating the collection, analysis, and drawing conclusion
smoothly and meaningfully. With a view to effectively carry out the study
conceptually and methodologically structured research design is a must.
Conti....
Universe Population

= 10138

Sample Size

= 630

www.surveysystem.com/sscalc.html

Sampling Technique

= Stratified Sampling Method

S.No Taluks of Dharmapuri Total Population Sample Size Population
District
1 Dharmapuri 98

2 Harur 101

3 Karimangalam Total Population - 10138 93

Sample Size - 630
4 Nallampalli 83

5 Palacode 76

6 Pappireddipatti 89

7 Pennagaram 90

Total 630
 Taluks of dharmapuri District
• Dharmapuri
• Harur
• Karimangalam
• Nallampalli
• Palacode
• Pappireddipatti
• Pennagaram
 STASTISTICAL TOOLS
1. Percentage,

2. Chi-square test,

3. Fried Man’s test,

4. ANOVA,

5. Regression analysis,

6. Correlation analysis,

7. Factor analysis,

8. GARRETT Ranking.
SUMMARY OF FINDINGS
 The 465 (73.8%) entrepreneurs are Male and the rest 165 (26.2%) entrepreneurs are Female.
Thus, majority of the entrepreneurs are Male.

Out of 630 entrepreneurs, 42 (6.7%) entrepreneurs are within the age of up to 30 years; 287
(45.6%) entrepreneurs age ranges from 31 to 40 years; 252 (40%) entrepreneurs age ranges
between 41 and 50 years and the remaining 49 (7.8%) entrepreneurs are above the age of 50
years. Thus, most of the entrepreneur’s age ranges from 31 to 40 years.

 57 (9.0%) entrepreneurs are with uneducated; 211 (33.5%) entrepreneurs are with school level;
176 (27.9%) entrepreneurs are with UG /PG educational qualification and the rest 186 (29.5%)
entrepreneurs are with Professional educational qualification. Thus, most of the entrepreneurs
are with School level educational qualification.
 Conti…..
66(12.1%) entrepreneurs have government employees previous experience, 87 (13.8%) entrepreneurs previous experience
Agricultural Back ground, 147 (23.3%) entrepreneurs previous experience belongs to private industry and the rest 130
(20.6%) entrepreneurs previous experience others. Thus, most of the entrepreneur’s previous experience belongs to private
industry.

179 (28.4%) entrepreneurs parents occupation belongs to governmental organization, 280 (44.4%) entrepreneurs parents
occupation belongs to Agricultures, 171 (27.1%) entrepreneurs parents occupation belongs to Private industry. Thus, most of
the entrepreneur’s parent’s occupation belongs to Agricultures.

Chi-Square Test

High level of Entrepreneurial Constraints is observed among up to 31 –40 years age (16.40%). Low level of Entrepreneurial
Constraints is observed among age group Above 50 Years (20.40%). The calculated Chi square value is greater than table
value (3.946) and the result is significant at 5% level. Hence, the null hypothesis is accepted. There is no association between
Age and Level of Entrepreneurial Constraints.
Conti….
High level of Entrepreneurial Constraints is observed in experienced at 6 – 10 years (25%). Low level of
Entrepreneurial Constraints is observed in experience at(23.20%). The calculated Chi square value is less than table
value (13.379) and the result is significant at 5% level. Hence, the null hypothesis is rejected. There is an association
between Experience and Level of Entrepreneurial Constraints.

High level of General Constraints is observed Monthly income among 50001 - 100000 (20.30). Low level of General
Constraints is observed Monthly income Above 100000 (21.10). The calculated Chi square value is greater than table
value (4.806) and the result is significant at 5% level. Hence, the null hypothesis is accepted. There is no association
between Monthly Income and Level of General Constraints.

High level of Knowledge Constraints is observed in age level at Above 50 years (32.7). Low level of Knowledge
Constraints is observed in age level at 41 - 50 years (23.00). The calculated Chi square value is less than table value
(67.072) and the result is significant at 5% level. Hence, the null hypothesis is rejected. There is an association between
Age and Level of Knowledge Constraints.
 Conti….
Correlation Analysis

Previous Experience and influencing factor to start the business are positively correlated. Entrepreneurs who
have private industry experience high level of start the business. The co-efficient of determination (r2) shows that
Previous Experience responsible for 5% of the variation in the level of influencing factor to start the business.

Nature of the company and influencing factor to start the business are positively correlated. The co-efficient of
determination (r2) shows that Nature of the company responsible for 1% of the variation in the level of
influencing factor to start the business.

Profit making money and influencing factor to start the business are positively correlated. The co-efficient of
determination (r2) shows that Profit making money responsible for 1% of the variation in the level of influencing
factor to start the business.
Conti….
Garrett Ranking Test

From the Garrett Ranking test, it is found that majority of the entrepreneur major problems
faced by a running business from their Financial, Marketing, Political, Raw materials etc.,

From the analysis it is inferred that majority of the entrepreneurs are of opinion that they
have No time for training / upgrading skills for a new technologies, Liquidity and other
financial problems, Gaining the acceptance/respect of people.

 From the analysis it is inferred that majority of the entrepreneurs important motivating
factors to take up Entrepreneurship they need To full the ambition of myself / parents/
husband, To take up family business / traditional job, Due to employment.
SUMMARY OF SUGGESTIONS
Entrepreneurs could be trained and educated in order to make themselves successful with
regard to access to capital, marketing of their products, creation of assets, selecting the form
of enterprise and the nature of industry.

It is always accepted the major problem of entrepreneurs is to combine family and work life
and financial problems. Therefore, common setup that could encourage them to successfully
run both family and work can be targeted.

Lack of self confidence is another major problem of entrepreneurs as revealed in the study.
Therefore, government and other agencies can take up the task of providing personality
development courses to boost up self confidence among to entrepreneurs.
Conti….
 Economic constraints implied lack of investment for promoting the business and paucity of working capital for
successful running of business. It is the duty of the Government to offer necessary financial assistance in time for
entrepreneurs for successfully running their business units. Further, in order to avoid financial problems,
entrepreneurs have to learn the procedures to be followed for availing loan at the earliest from the banks and financial
institutions. Moreover, it is advised to rural entrepreneurs not to avail loan from money lenders by paying exorbitant
rate of interest.

 Reduce their social constraints, entrepreneurs have to inculcate the habit of moving along with their workers, improve
ability to extract work from team members, enhance their planning and decision making ability, and learn to maintain
proper books of accounts and management of company assets.

 Raise their knowledge level; entrepreneurs have to improve their writing skills, oral communication skills,
interpersonal skills by undergoing soft skill training programmes organized by various private educational training
centres.
Conti….
 To improve their communication skills entrepreneurs have to undergo training programme on spoken English.
Further, training programmes organized by Government apart from inculcating the basic principles to be
followed before promoting a business, type of business to be promoted, procedures to be followed for availing
loan may train entrepreneurs on developing communication skills, which is said to be vital element for their
success.

 To improve the business skills like planning, improving decision making capacity, to maintain cordial
employee and employer relationships, to improve marketing knowledge entrepreneurs may make use of
academician’s assistance or by attending management training programmes organized by well-renowned
educational institutions.

 To improve the entrepreneur’s technical skills, District Industries Centres may inculcate training programmes
on communication skills, interpersonal skills, listening skills, team management skills among rural
entrepreneurs.
CONCLUSION
An entrepreneur has to perform various functions and discharge diversified responsibilities
for attaining industrial development, and consequently economic development. The major
functions of an entrepreneur are innovating, risk taking, planning, organization, and management
and he has to discharge these functions for attaining the industrial efficiency while managing the
enterprise, and this in turn facilitates the promotion of entrepreneurial efficiency and that of the
entrepreneurial capabilities and potential. Entrepreneurial development is influenced by the
economic and non-economic factors such as the availability of raw material, quality of labour,
technology, market potentiality, capital, profit and infra-structure, and on the ambitions and
aspirations of the entrepreneurs to undertake the industrial activities that are economically sound,
and the facilitating factors like the skills acquired, technical/professional education, experiance
Conti….
and self-confidence, and that of the social factors such as mobility and values ascribed by the
society and the urge to attain economic power and social status. The socio-economic and
cultural conditions and background of the entrepreneurs also influence the entrepreneurial
development and the quality of entrepreneurship.
Though the entrepreneurs are having a favourable attitude towards business, there is some
reluctance in to take up business. Entrepreneurs capable of achieving excellence in any field
they pursue, more so in entrepreneurship. All they need is proper reinforcement from the family
members, government and society at large so that they can excel as successful entrepreneurs and
significantly contribute in nation building. The District Industries Centre and other
Entrepreneurial Training Institutes should take necessary steps to see that their programmes
reach.
SCOPE FOR FURTHER RESEARCH
1. The present study can be carried out to A study on problems of Entrepreneurs
at Dharmapuri district and skill sets required by entrepreneurs for redressing
the issues. Study of similar nature may be carried out on ascertaining the
problems faced by first generation entrepreneurs and to steps to be initiated
on resolving their issues. Recently Central Government has introduced Goods
and Services Tax Bill.

2. Thus an attempt can also be made to ascertain the problems faced by MSME
entrepreneurs on filing the returns and to ascertain their expectations from
Government on resolving the issues involved in filing of returns.
Conti….
3. Each and every entrepreneur follows a unique technique for their success.
Thus, an attempt may be made by budding researchers on ascertaining unique
selling mechanisms followed by successful entrepreneurs of Tamil Nadu.
Thank You