International Research Journal of Management &...

International Research Journal of

Management & Humanities

Volume 1,Issue 2, December 2013 (Bi-annual referred Journal of Siddharaja Guruji Charitable Trust,Sivakasi)

ISSN No: 2347-3274

International Research Journal of Management & Humanities Volume 1, Issue 2, December 2013

Editor in Chief

Mr.P.C.Sudharsanan

Associate Editor

Er.R.Nirmalan

Dr.S.RAJARAM

Associate Professor / MBA

Research Centre for Consumerism

Kalasalingam University,

Krishnankoil

Dr. Elizabeth Jackson New Castle University

U.K.

Dr.Charles Harvie University of Wollongong,

Australia

Dr.Sanjana Brijball Parumasur University of KwaZulu-Natal

Durban

Dr. Muhammad Ziaulhaq Mamun Institute of Business Administration

University of Dhaka

Monowar Mahmood

Kazakhstan Institute of Management

Kazakhstan

Kishore G. Kulkarni

University of Denver

Denver

Dr. Hamid Saremi

Vice- chancellor of Islamic Azad University

Quchan Iran

Prof. R Srinivasan

Indian Institute of Science

Bangalore

Dr.B.Senthil Arasu NIT

Trichy

Dr.P.C.Sekar Madurai Kamaraj University

Madurai

Dr. Vikas Madhukar Amity Business School

Gurgaon

Dr. S.L. GUPTA

Birla Institute of Technology

Noida

Dr.Satyabhusan Dash Indian institute of management

Lucknow

Dr. Radha Raghuramapatruni

GITAM University

Visakhapatnam

Arun Mittal

Birla Institute of Technology

Noida Campus

Dr. Surendra Kumar

Babu Banarasi Das University

Lucknow

Dr.P. Saritha Srinivas Yogi Vemana University

Kadapa

From the Editor’s Desk

India's economy is projected to grow at a slower-than-expected rate of 5.3 percent this

year, according to a United Nations report which said the country's slowdown may have

bottomed out. The UN World Economic Situation and Prospects 2014 (WESP) report said a mild

recovery in investment as well as stronger export growth will help in the gradual GDP pick-up. It

said the Indian economy, which accounts for over 70 percent of total output in South Asia,

slowed further in 2013. The growth was held back by weak household consumption and sluggish

investment, the report added. Full-year growth decelerated to 4.8 percent in 2013 from 5.1

percent in the calendar year 2012.

"While India's slowdown may have bottomed out, the recovery is likely to be slower than

previously expected. Economic activity is forecast to expand by 5.3 percent in 2014 and 5.7

percent in 2015," the report said. It said the gradual pick-up in GDP growth is likely to be

supported by good monsoon, recovery in investment and stronger export growth on the back of

improved global conditions. The report further said that global economic growth is expected to

increase over the next two years with continuing signs of improvement. The global economy is

projected to grow at a pace of 3 percent in 2014 and 3.3 percent in 2015, compared to an

estimated growth of 2.1 percent in 2013.

"The euro area has finally ended a protracted recession. Growth in the United States

strengthened somewhat. A few large emerging economies, including China and India, managed

to backstop the deceleration they experienced in the past two years and veered upwards

moderately. These factors point to increasing global growth," the report said. It said the central

government is unlikely to meet its target of reducing the deficit to 4.8 percent of GDP in the

current fiscal year 2013/14, since growth is below projections and the depreciation of the rupee

pushes up the subsidy bill.

On consumer price inflation, the report said India will witness a slight dip in inflation at 9

percent in 2014 from 9.7 percent in the previous year. Inflation could dip further to 8.1 percent in

2015, it said. "While the Reserve Bank of India is expected to maintain its focus on inflation, it is

unlikely to raise policy rates considerably given the ongoing weakness in investment and growth.

should inflationary pressures ease in 2014 and the external financial environment stabilize, the

RBI is likely to loosen monetary conditions," the report added.

As an Editor, I am very happy to bring Second Issue of First volume in International

Research Journal of Management and Humanities by our Siddharaja Guruji Charitable Trust.

THE EDITOR

International Research Journal of Management & Humanities Volume 1, Issue 2, December 2013

Siddharaja Guruji Charitable Trust holds the copyrights to

all articles contributed to its publications.

All rights reserved. No part of this publication may be reproduces,

stored in a retrieval system, transmitted in any form, or by any means,

electronic, mechanical, photocopying, recording, or otherwise,

without the prior permission of Siddharaja Guruji Charitable Trust,Sivakasi

The views expressed in the articles are personel views of

Individual authors and do not represent those of

Siddharaja Guruji Charitable Trust, Sivakasi

Copyright 2013

All Rights Reserved

Publisher and Editor Mr.P.C.Sudharsanan on behalf of Siddharaja Guruji Charitable Trust,Sivakasi. Printed at New Shenbagam Offset, 163,Satchiyapuram, Sivakasi(west)-626124.

www.siddharaja.org

CONTENTS

Organizational Leadership Trust Dr.S. Sathya Narayanan, B.Palaniselvan

1

A Study Of Rural Women Empowerment In Kadapa District Dr. P. Saritha

5

Sustaining Competitive Advantage In Organized Retail Outlets In Tamil Nadu Dr B. Senthil Arasu, J .John Irudaya Sudhakar

14

Energy, Electricity And Economics Of The State Of Chhattisgarh Ms. Bhuvana Venkatraman

20

Governing Vibrants Of Entrepreneurs

Mrs.S.Sowmiya

27

Health Insurance Sector In India C.Babu Sundararaman, Dr.V.Sachithanantham

39

Operational Performance Of Cooperative Sugar Mills In Tamilnadu An Overview Mr. S. Muralitharan, Dr.T.Srinivasan

45

An Overview Of Hr Process - With Reference To Employee Engagement Dr.C.Swarnalatha, Ms.Uma Maheswari

57

Motivational Factors Influencing Industrial Corporate Entrepreneurship In India M.Banumathi, Dr.C.Samudhrarajakumar

60

A Peak Into The Drivers For Green Marketing

M. Ramkumar, Dr.K.Soundararajan

67

Empowerment Of Women Entrepreneurs Through Ownership And Freedom: With

Special Reference To Madurai, Tamilnadu

Dr. Sonia Selwin, Dr. Anthea Washington

74

A Study On Test Anxiety And Academic Performance Among Engineering Students

At Sivakasi

Miss.S.Kamalaveni, Mr.T.Balakrishnan, Mrs.C.Revathi

87

International Research Journal of Management & Humanities ISSN NO. 2347-3274

Volume I, Issue 2 December 2013 1

Introduction

Leadership trust plays a vital role in

an organization growth. Trust effects all

relationships between individuals. It is

present every where among parents, couples,

children, teachers and students, managers

and employees.

Further more, George and Jones

(1998) suggest that trust is important to team

working as it promotes co-operation. Hay

(2002) says that trust is important to develop

relations between teams.

MCErilyetal, (2003) developed the

notion of trust as an organization principle

by specifying that trust influences

organizational outcomes. Dirks and femin

(2001) claim that perceptions of extra rare

behavior, without trust knowledge and trust

are useless.

Definition of Trust

Various definitions of trust have

emerged based on the Individual researchers

perspective for instance. Belief that those on

whom we depend will meet our expectations

of them (Shaw, 1997)There is inspiring trust

in the leader and what he/she is trying to

accomplish as well as the leader trusting

other people to do what needs to be done.

Leaders need to be congruent and ethical in

word and deed (Charlton, 2000)

The willingness of a party to be

vulnerable to the actions of another party

based on the expectation that the other will

perform a particular action important to the

trustor, irrespective of the ability to monitor

or control that other party (Mayer et al,

1993)

Dimensions of Leadership

The dimensions of our research

focuses on seven important factors, Namely

Managerial Trust and Distrust, This

dimension speaks about his/her sharing of

work related problems, professionalism,

competence level, his way of guidance for

my career, Tolerance towards failure, this

Reliability towards work. His/her way of

trusting and delegating the work, some times

he/she protects my interests and personal

approach.

The second dimension focuses on the

supervisors trust on the subordinates, which

speaks about the individuals’ presence in the

mind of the supervisor.

Dr.S. Sathya Narayanan* B.Palaniselvan **

ORGANIZATIONAL LEADERSHIP TRUST

Leadership is the pivotal force in an organization. Strong, convincing leadership is

very much important for organizational accomplishments. In spite of having good

leadership trust between superior & subordinate plays a vital role in an organizational

growth. Leadership which is born and this is kept alive by the follower trust called as Trust

leadership.



The third dimension is vice versa of

the second, which most concentrates on the

subordinates trust on the supervision.

This dimension completely speaks

about the level of the subordinates trust on

the supervisor.

The next dimension portrays about

Managerial trust worthy behavior. This

dimension completely tells about the

personality of the superior.

The next three dimensions speaks

about the perceived ability of the superior,

which plays a vital role in trusting,

propensity to trust which is nothing but the

tendency to trust on the part of the

subordinates.

The last dimension speaks about the

trust Reciprocity which is nothing but to do

with perceived interdependence.

Various Models

There are various models proposed

by different authors (Hweeboon Tan & K.H.

Lcin), implicating that, the Ability of the

Co-workers, Benevolence and Integrity

leads to trust in co-workers is term towards

trust in organization which leads to

commitment & performance.

Another Model by Camcald well &

Linda A. Hayes, speaks on Leadership

Behavior, which is the function of

Relationship development, Resource

utilization & Image Management which

leads to Interpersonal Trust worthiness,

which leads to variable decision to trust. In

this proposed by the Researcher to uses on

the factors lending to trust, which in term

leads to loyalty, Job satisfaction and service

quality which finally leads to retention.

Conclusion

To our knowledge, this is the study

that examines the leadership trust – distrust.

It also highlights the trust reciprocity that is

supervisors trust on the sub-ordinates and

the trust on supervisor.

The behavioral pattern of the leader

exhibits his trust worthy behavior. The

other areas which is been highlighted on the

perceived ability, propensity to trust and

leadership perceived interdependence.

References

a) Arbuckle, J.L., & Wothike, W

(1999). Amos 4.0 user’s guide.

Chicago, IL:SPSS

b) Boyett, J.(2006). The Science of

Leadership : Weapons of Influence –

Reciprocity.

c) http://www.jboyett.com/files/Weapo

ns_of_Influence-Reciprocity.pdf

d) Brockner, J., Siegel, P.A., Daly,

J.P., Tyler, T., & Martin, C. (1997).

When trust matters: The moderating

effect of outcome favorability.

Administrative Science Quarterly,

42, 558-583.

http://dx.doil.org/10.2307/2393738

e) Bromily, P., & Cummings,

L.L.(1996). Transaction cost in

organizations with trust. In Bies,R.,

Lewicki,R., & Sheppard, B.(Eds.).

Research on negotiation in

organizations. Greenwich, CT:JA.

f) Butler, j.K. (1991). Toward

understanding and measuring

conditions of trust: Evolution of a

condition of trust inventory. Journal

of Management, 17, 643-663

http://dx.doi.org/10.1177/014920639

101700307.



g) Cardona, P., & Elola, A. (2003).

Trust in Management : The Effect of

Managerial Trustworthy Behavior

and Reciprocity. Working Paper.

WP No.496. IESE Business School,

University of Navarra.

h) Das, T.K., & Teng, B. (2004). The

Risk-Based View of Trust : A

Conceptual Framework. Journal of

Business and Psychology, 19(1), 85-

116.

http://dx.doi.org/10.1023/B:JOBU.0

000040274.23551.1b

i) Dirks, K. T., & Ferrin, D.L. (2002).

Trust in leadership: Meta-analytic

findings and implications for

research and practice. Journal of

Applied Psychology, 87, 611-628.

http://dx.doi.org/10.1037/00219010.

87.4.61

j) Facteau, J. D., Dobbins, G. H.,

Russell, J. E. A., Ladd, R. T., &

Kudisch, J.D. (1995). The influence

of general perceptions of the training

environment on pretraining

motivation and perceived training

transfer. Journal of Management,

21, 1-25.

http://dx.doi.org/10.1177/014920639

502100101

k) Field, A. (2005). Discovering

statistics using SPSS (2nd

ed.).

London : Sage.

l) Gabarro, J. J. (1978). The

development of trust influence and

expectations. In Athos, A. G. and J.

J.

m) Gabarro (Eds.). Interpersonal

behavior: Communication and

understanding in relationships : 290-

303. Englewood Cliffs, NJ:

Prentice-Hall.

n) Goldsmith, E.B. (1991). Resource

Management for individuals and

families. New York: West

Publishing Company.

o) Gouldner, A.W. (1960). The norm

to reciprocity: A preliminary

statement. American Sociology

Review, 25, 161-179.

http://dx.doi.org/10.2307/2092623

p) Hair J. F., Anderson, R.E., Tatham,

R. L., & Black, W. C. (1998).

Multivariate Data Analysis (5th

Edition).

q) Upper Saddle River, NJ : Prentice –

Hall, Inc.

r) Hinkin, T.R. (1995). A review of

scale development practices in the

study of Organizations. Journal of

Management, 21,967-988.

http://dx.doi.org/10.1177/014920639

502100509

s) Hosmer, L. T. (1995). Trust : The

connecting link between

organizational theory and

philosophical ethics.

t) Academy of Management Review,

20, 379-402.

http://dx.doi.org/10.5465/AMR.1995

.9507312923

u) Ironson, G. H., Smith, P. C.,

Brannick, M. T., Gibson, W. M., &

Paul, K. B. (1989). Construction of

a job in general scale.: A

comparison of global, composite and

specific measures. Journal of

Applied Psychology, 74, 193-200.

v) http://dx.doi.org/10.1037/0021-

9010.74.2.193



w) Josephson, M.(1993) Ethics corps: A

training program for teaching ethics

in the 90s. Notebook Materials.

Marina Del Rey, CA: Josephson

Institute for the Advancement of

Ethics.

x) Josephson, M. (1994). Making

ethical decision using the six pillars

of character. Wes Honson (Ed.)

with Dan McNeill. Marina Del Rey,

CA : Josephson Institute for the

Advancement of Ethics.

y) Kee, H. W., & Knox, R.E. (1970).

Conceptual and methodological

consideration in the study of trust.

z) Journal of Conflict Resolution, 14,

357-366.

http://dx.doi.org/10.1177/002200277

001400307

aa) Kline, P.(1999). The handbook of

psychological testing (2nd

ed).

London : Routledge.

bb) Kline, R. (2005). Principles and

Practice of Sructural Equation

Modeling (2nd

ed.). New York: The

Guildford Press

cc) Konovsky, M.A., & Pugh, S.

D.(1994). Citizenship behavior and

social exchange. Academy of

Management Journal, 37, 656-669.

http://dx.doi.org/10.2307/256704

Biography

* Faculty of Business management, Majan

College, Muscat, Sultanate of oman.

** Faculty of Business Management, AAA

College of Engineering & Technology,

Sivakasi.

http://dx.doi.org/10.2307/256704



Introduction

In the history of human

development, woman has been as

important as man. In fact, the status,

employment and work performed by

women in society is the indicator of a

nation’s overall progress. Without the

participation of women in national

activities, the social, economical or political

progress of a country will be stagnated.

The hands that rock the cradle, may though,

as the myth goes have not yet ruled the

world. The fact is that most of the women’s

domestic role is combined with economic

activities and utilization of their skill and

labour to earn the extra income for the

family, which makes the difference

be tween a reasonably decent survival and

humiliating poverty. Women constitute half

of the humanity, even contributing two-

thirds of world’s work hours. She earns

only one-third of the total income and

owns less than one-tenth of the world’s

resources. This shows that the economic

status of women is in pathetic condition

and this is more so in a country like India.

Among total Indian population of 1027.10

million, women constitute 495.73 million.

Therefore, “women constitute nearly 50

per cent of population, perform two-thirds

of the work and produce 50 per cent of

food commodities consumed by the

country. They earn one third of

A STUDY OF RURAL WOMEN EMPOWERMENT IN KADAPA DISTRICT

In the history of human development, woman has been as important as man. In

fact, the status, employment and work performed by women in society is the indicator

of a nation’s overall progress. Without the participation of women in national activities,

the social, economical or political progress of a country will be stagnated. Rural women

in India constitute 77 per cent of the female population. They share abundant

responsibility and perform a wide spectrum of duties in running the family,

maintaining the house hold activities like rearing, feeding, attending to farm labour,

tending domestic animals and the like, even then they suffer from being both

economically and socially invisible. The primary objective of the paper is to study the

extent of rural women empowerment through various income generating activities.

Kadapa district is one of the pioneering districts for the implementation of the DWACRA as

pilot project in the Andhra Pradesh state along with Srikakulam and Adilabad. Presently,

there are 21 Mandals in Kadapa district consists of 35338 SHGs. Of these, Kodur mandal

has been selected for this study, because of these SHGs are very successfully running their

business in this mandal. There are 8000 SHG members from 922 SHG groups in Kodur

Mandal. Among them 240 members were selected as sample respondents for the study based

on convenient sampling technique.

Dr. P. Saritha *



remuneration and own 10 per cent of the

property or wealth of the country”.

Women are regarded as the “better half” of

the society and at par with the men. But in

reality, our society is still male dominated

and women are not treated as equal

partners both inside and outside the four

walls of the house. In fact they are treated

as weak and dependent on men. As such

Indian women enjoy an unfavourable status

in society.

Rural women in India constitute

77 per cent of the female population.

They share abundant responsibility and

perform a wide spectrum of duties in

running the family, maintaining the house

hold activities like rearing, feeding,

attending to farm labour, tending domestic

animals and the like, even then they

suffer from being both economically and

socially invisible. Within the framework

of democratic policy, our laws,

development policies, plans and

programmes have aimed at women’s

advancement in different spheres. Since

independence a number of innovative

schemes have been launched for the up

liftment of women in our country. A

major development in the empowerment

of women is the 73rd constitutional

amendment to Panchayat Raj Act which

specifies one-third of the posts of

‘Sarpanch’ and Chairman of the block

level assemblies (Samithi) and the

district assembly (Zilla Parishad) to be

women. This is expected to bring radical

change in women’s status and will

generally increase their political

participation. The government is putting

lot of efforts to empower the women,

hence there is need to know the extent of

empowerment of rural women.

Empowerment

Empowerment is a multi-

dimensional process, which should enable

women or group of women to realize their

full identity and power in all spheres of

life. It consists of greater access to

knowledge and resources, greater

autonomy in decision making to enable

them to have greater ability to plan their

lives, or to have greater control over the

circumstances that influence their lives

and free from shocks imposed on them

by custom, belief and practice.

“Empowerment comes from Women’s

groups who seek to empower themselves

through greater self-reliance”. They have

the right to determine their own choices in

life. They also seek to gain control and

access to resources”. Empowerment is

process, which helps people to gain

control of their lives through raising

awareness, taking action and working

in order to exercise greater control.

Empowerment is the feeling that activates

the psychological energy to accomplish

one’s goals.

Self Help Group

Self Help Groups have emerged

as one of the major strategies for

women’s empowerment and various

schemes of the Government of India

have shown that strong women’s groups

could contribute substantially to the

development and convergence of services

and activities. Experience with various

programmes and projects has highlighted



the benefits of formation of women’s

groups for building confidence and

focusing on developmental tasks.

Different groups in various states all over

the country have focussed on skill

development and awareness generation,

promoting economic development

through income generating activities,

inculcating thrift and credit management

activities among poor women. A self help

group (SHG) is a voluntary association of

persons with common interest, formed and

managed democratically without any

political affiliation (Ramesh, 1996).

Objectives of the Study

The present paper is mainly

focusing the rural women entrepreneurship

and economic elevation in Kadapa district.

To study the extent of rural women

empowerment through various income

generating activities

To study the socio-economic profiles of

rural women involved in income

generating activities

To study the relationship between

empowerment and personal

characteristics of rural women

To identify the constraints in

empowerment of rural women.

Significance of the study

Very few studies are available

related to measurement of level of

empowerment of women and contributing

factors for it. This study has been

designed mainly to focus on extent of

empowerment of rural women through

income generating activities and

constraints that are experienced by rural

women in their empowerment. The earlier

studies have concentrated on development

of rural women, of late there is a shift

from development to empowerment of

women, through income generating

activities. The present study is likely to

provide valuable information to the

government and non- government

agencies about the extent of

empowerment of the rural women

through income generating activities and

the factors influencing the empowerment.

Research Methodology

Kadapa district is one of the

pioneering districts for the implementation of

the DWACRA as pilot project in the Andhra

Pradesh state along with Srikakulam and

Adilabad. Formation of SHG is not the

criteria but nurturing them into self managed

grass roots organisations of the poor to

manage their affairs. Presently, there are 21

Mandals in Kadapa district consists of 35338

SHGs. Of these, Kodur mandal has been

selected for this study, because of these SHGs

are very successfully running their business in

this mandal. There are 8000 SHG members

from 922 SHG groups in Kodur Mandal.

Among them 240 members were selected as

sample respondents for the study based on

convenient sampling technique. The study is

compiled with the help of the primary data

and was collected with the help of

questionnaire. This is purely descriptive

study. Therefore, no complicated models and

tools were used. Only simple average is used

for the analysis.



Demographic Characteristics of the

Respondents

Age of the Sample Respondents

Age and socio-economic activities

are inter-related. The young and middle

age group people can actively participate in

the socio-economic activities, which is true

in the activities of SHGs in the study area.

Table 1.0 shows the age-group of sample

respondents of the study.

Table 1.0

AGE OF THE SAMPLE RESPONDENTS Age (in Years) SHG

MEMBERS

% OF

RESPONDENTS

1 18-30

(Young

age)

84 35.0

2 31-50

(middle age)

152 63.3

3 Above 50

(Old age)

4 1.7

Total 240 100

As seen in Table 1.0, majority of

the respondents (63.3%) were between

31-50 years of members, while 35.0 per

cent were young and remaining were old

aged. Thus, the middle aged women are

participated more in SHGs and

entrereneurship activity.

Education

Education is one of the inputs for

empowerment. It enables the women to

gather information from different sources

nad helps them to analyse properly and think

innovatively to start the business. The

education levels of the selected women

SHGs for the study are represented in the

Table 2.0.

Table 2.0

EDUCATION LEVEL OF THE

SAMPLE RESPONDENTS EDUCATION SHG

MEMBERS

% OF

RESPONDENT

S

1 Illiterate 20 8.3

2 Functionally

L iterate

92 38.4

3 Primary school 38 15.8

4 High

Schoo

72 30

5 College

Education

18 7.5

Total 240 100

The education level of the

respondents showed that 38.4 per cent of

them were functionally literate, 3 0 per

cent of the respondents had education up to

SSC, 15.8 per cent received primary

school education, 8.3 per cent were

illiterate and only 7.5 per cent w e r e

college level education.

Marital Status

Marital status is also one of the

factor for women entrepreneurship as of

family support is most important for them

to develop the economy and empower

themselves. Table 3.0 gives marital status

of the sample respondents.

Table 3.0

MARITAL STATUS OF THE SAMPLE

RESPONDENTS

Marital status of respondents

MARITAL

STATUS

SHG

MEMBERS

% OF

RESPONDENT

S

1 Unmarried 30 12.5

2 Married 160 66.7

3 Widow 50 20.8

Total 240 100



indicated that majority (80 per cent) of

them were married, 20.8 per cent were

separated, and rest of (12.5%) the

respondents were unmarried and widows.

Family Type

In India the type of the family is

also more important to start the business by

the women. Generally, there two types of

families in Indian society. Table 4.0

indicates the type of family of the sample

respondents.

Table 4.0

FAMILY TYPE OF THE SAMPLE

RESPONDENTS

Most of the (85.8%) women had

nuclear family and remaining 14.2 per cent

of women belonged to joint family. Most of

the women participated from the Nuclear

family type because because less family

support from the elders and family head.

Land Ownership

Land ownership also another imact

factor of the women entrepreneurship in

rural India. Table 5.0 shows the Land

ownership of the sample respondents.

Table 5.0

LAND OWNERSHIP OF SAMPLE

RESPONDENTS

LAND

OWNERS

SHG

MEMBERS

% OF

RESPON

DENTS

1 Land less 134 55.8

2 Land

owners 106 44.2

a. Marginal

Farmers

28 11.7

b. Small

farmers

32 13.3

c. Semi-

medium

Farmers

12 5.0

d. Medium

Farmers

28 11.7

e. Big

Farmers

6 2.5

Total 240 100

More than half of the respondents’

families were land less (55.8%) and

remaining 44.2 per cent were

landowners. Among the land owners,

13.3 per cent were small farmers

followed by equal per cent [11.7%] were

belonging to marginal and medium

farmers, and only 5 and 2.5 per cent of

land owners belonged to the semi-

medium and big farmers category,

respectively.

Income Generating Activities

Generally, women participated in

entrepreneurship for generating income

for their livelihood and development of

the family and the society. Under income

generating activities, women are

undertaking different professions like

agriculture, manufacturing home foods,

tailoring, making handicrafts, day care

centres and the like. Table 6.0 represents

Family Type SHG

MEMBERS

% OF

RESPOND

ENTS

1 Nuclear 206 85.8

2 Joint 34 14.2

Total 240 100



income generating activities of the

sample respondents in the select study

area.

Table 6.0

INCOME GENERATING ACTIVITIES

OF THE SAMPLE RESPONDENTS

It is clear from the table, among

the total respondents, 38.4 per cent have

stated “manufacturing” as their income

generating activity followed by 15.8 per

cent each have stated “agriculture” and

trading and rest of (30 per cent) them

have stated service sector as their income

generating activities. Thus, the study

revealed that majority of the respondents

are belonged to manufacturing of home

foods and handicrafts.

In SHGs, the women produce

different types of products and distribute

them to different areas. They are in need

of different channels for distributing the

products through out district and other

places. Table 7.0 gives marketing media

for the product in the study area.

Media for Marketing the

Table 7.0

MARKETING MEDIA FOR THE

PRODUCT

It is clear from the table that, among

the total respondents, 29.2 per cent market

their products through NGOs and

executives. 50 per cent of the respondents

(25 per cent each) have market through

newspapers and door to door sales/direct

marketing. 12.5 per cent of the respondents

have sale their products through exhibitions,

whenever and wherever they are conducted

and rest of them have market through

vehicles to near villages and town.

Reasons for Joining SHGs

The main aim of the SHGs is to

promote savings, family support and to get

credit for the productive and consumption

purposes. Table 8.0 gives reasons for

joining the women in SHGs

Table 8.0

REASONS FOR JOINING SHGS REASON SHG

MEMBERS

% OF

RESPOND

ENTS

1 Lack of job

to family

head

60 25

2 Habit of

Savings

20 8.3

MEDIA SHG

MEMBERS

% OF

RESPONDEN

TS

1 Newspaper/Pamp

hlets

6

0

2

5

2 Vehicles 20 8.3

3 Direct Marketing 60 25

4 Exhibition 30 12.5

5 NGOs 70 29.2

Total 240 100

ACTIVITY SHG

MEMBERS

% OF

RESPONDEN

TS

1 Agriculture 38 15.8

2 Manufacturing 92 38.4

3 Trading 38 15.8

4 Service Sector 72 30

Total 240 100



3 Improve

Economic

Status

70 29.2

4 Motivation

from the

Family

30 12.5

5 Encouragem

ent of NGOs

40 16.7

6 To be

Independent

20 8.3

Total 240 100

It is observed from the table that 29.2

per cent of the respondents are joined for

improve economic status, 25 per cent of the

sample respondents are joined for the lack of

job to family head, 16.7 per cent of the

sample respondents are joined because of

encouragement of NGOs, 8.3 per cent of

sample members were joined as a saving

habit and to be independent.

Income of the Sample Respondents

Income is the major determinant of

the standard of living of the people in the

society. Table 9.0 depicts the income level

of the SHG members before joined and after

joining in the SHGs.

Table 9.0

INCOME LEVEL OF THE SAMPLE

RESPONDENTS

Monthly

Income

Rs.

Before Joined

SHGs

After Joined

SHGs

No.o

f

Res

pon

den

ts

%of

Res

pp

on

den

ts

No.o

f

Res

pon

den

ts

%of

Res

pon

den

ts

1

Les

s th

an

1500

128 53 24 10

2

1501-3

000

44 19 64 27

3 3001

-4000

24 10 56 23

4

4001-5

000

6 2 12 5

5

5001-6

000

2 1 28 12

6

6001-7

000

28 12 32 13

7

Ab

ove

7000

8 3 24 10

Total 240 100 240 100

It is observed from table,



most of the sample respondents (53 per cent)

were earned less than 1500 rupees when they

before joined Self Help Groups but after

joined SHGs, they earned from Rs.1500-

4000. After joining SHGs, more sample

members earned income in between Rs.

6001-Above 7000.

Problems in Running the Enterprise

The rural women are facing different

problems in running the enterprise because

of lack of awareness and less literacy rate.

Table 10.0 indicates the problems in

running the enterprise.

Table 10.0

PROBLEMS IN RUNNING THE

ENTERPRISE

From the table 10.0, it is find that

most of the sample respondents i.e., 25 per

cent of the sample respondents have been

facing lack of capital problem, 20.8 per cent

of the sample respondents have been facing

the problem of lack of training in running

their business. From the table it is also

observed that the sample members facing

different problems like mutual

understanding, more competitors, language

problem, geographical constraints.

Findings of the study

The major findings of the study are as

follows :

Majority of the respondents (63.3%)

were between 31-50 years of

members.

The education level of the

respondents showed that 38.4 per

cent of them were functionally literate,

3 0 per cent of the respondents had

education up to SSC, 15.8 per cent

received primary school education,

8.3 per cent were illiterate and only

7.5 per cent w e r e college level

education.

Most of the (85.8%) of the women

had nuclear family and remaining 14.2

per cent of women belonged to joint

family.

More than half of the respondents’

families were land less (55.8%) and

remaining 44.2 per cent were

landowners.

The study revealed that majority of the

respondents are belonged to

PROBLEMS SHG

MEMBERS

% OF RESPONDENTS

1 More Paper formalities 30 12.5

2 Lack of understanding with group

members

20 8.3

3 Lack of training 50 20.8

4 No cooperation with family members 40 16.8

5 Lack of capital 60 25

6 More competitors 20 8.3

7 Other Reasons 20 8.3

Total 240 100



manufacturing of home foods and

handicrafts.

Among the total respondents, 29.2 per

cent market their products through

NGOs and executives. 50 per cent of the

respondents (25 per cent each) have

market through newspapers and door to

door sales/direct marketing.

29.2 per cent of the respondents are

joined for improve economic status, 25

per cent of the sample respondents are

joined for the lack of job to family head.

After joining SHGs, more sample

members earned income in between

Rs. 6001-Above 7000.

The sample members facing different

problems like mutual understanding,

more competitors, language problem,

geographical constraints.

References

a) BADIGER, C., GAVIMATH, V. S.

AND KATARKI, P. A., 1994,

Impact of non-farm income raising

demonstration on knowledge and

adoption pattern of rural women.

Karnataka Journal of Agricultural

Sciences, 6(1&2) : 60-62.

b) CHOUDHARY, 1996, Empowering

strategies for rural women in India.

Kurukshetra, 44(3) : 18-22.

c) GIRIAPPA, S., 1997, Women

empowerment and decision

making analysis in rural

enterprises. Paper Presented at

International Conference on Gender

Equity through Women’s

Empowerment, 23-29 December,

Lucknow.

d) GOVINDAPPA, G. T., 1999, Rural

women entrepreneurship- constraints

and strategies. Kurukshetra, 48(2) :

11-14.

e) DRDA REPORTS,Field Survey

Biography

* Assistant Professor, Department of

Business Management, Yogi Vemana

Univerrsity, Kadapa.



Introduction

Retailing in India has a way long history

starting from mantis, sandy and melas to

modern organized retailing converting every

one towards organized retailing. one of the

top five retail markets in the world .

Analysis predicts that retailing is a big

business in developing countries. The Indian

Consumer market is estimated to grow at 13

% annual from $322 billion in 2006 to 07

rising up to $590 billion in 2011-12. Fueled

by Indian growing education and asp

rational middle class demanding a better

retail environment and more global brands

and style leading to a big change in market

share from 4% in 2006 -2007 to grow at a

SUSTAINING COMPETITIVE ADVANTAGE IN ORGANIZED RETAIL OUTLETS

IN TAMIL NADU

The sunrise sector retailing is under high competition and growth pace, finds hard to

shine as expected, projected by experts, though the sector has opened new wings and

avenue for future market is yet to be fully operational.Gone are the days where customers

are treated as simple. Where people and customer do come to companies door steps seeking

there service. The success of competition and mantra for enduring success lies in customer

delight; today customers are for choice and fully acknowledge that they rule the

market.Manufacture are left with no choice other than to cater their wimps and give the

customer complete control of market trends, especially for modern retail outlets, effective

understanding of shoppers needs and satisfying there expectation is the only key for success

and to increase footfall .Indian consumers have high degree of value ,it’s store operators to

strategically design and implement program to attract and retain customers.As many

suggested that 4 P are the sole determinants of competitive advantage ,has proved week and

in addition to it many factors should be considered Hence the change in shopping behavior

and purchase patter, expectation from store are tropical challenge for retailers .Its retailers

to deciding what to sell- what does customers expects and – what is offered, Most retailers

have come to realize the importance of customer service and are being proactive in

removing barriers to their ability to deliver a superior shopping experience. It’s time to

redefine and re-engineer the concept of shopping experience which had at present a high

and sophisticated one than the traditional one. Where value proposition creates a shared

understanding needed to form a long term relationship that meets the goals of both the

consumers and company This papers attempts to study the retails competitive advantage

through understanding the expectations of shoppers and determinants of competitive

advantage, A structured mechanism to satisfy the expectation of customer is needed to

overcome this problem, to face changing consumer behavior and to attract& retain

customers.

Dr B. Senthil Arasu * J .John Irudaya Sudhakar **



45% to 50% expected to be 16% share by

20112.

Indian retail industry is estimated to be

worth around US$ 500 billion currently.

Home to, India offers immense scope of

growth and opportunities in this arena. As of

now, almost 90 per cent of the Indian retail

sector is controlled by tiny family-run shops

i.e. the unorganized segment. Thus,

organized retailers have a lot of room for

further penetration in this flourishing

economy. In 2010, larger format

convenience stores and supermarkets

accounted for about 4 per cent of the

industry, and these were present only in

large urban centers. Now the trend is

changing, and such concepts are

mushrooming in smaller cities and towns as

well. Organized retail segment is expanding

at 20 per cent a year, driven by the

emergence of shopping centers and malls

and growing middle class

The retail sector in india in terms of

modern retail outlets and its performance

has become difficult .Where it need to re

define and reposition itself to the

expectation of of the consumers ,designing

and developing strategies that suit and

attract customers, Where only the store that

creates a long term competitive advantage

may serve and attract customers.

Strategic developers who develop

strategies have changed there focus towards

customers and customer expectation as

number of contact points between a

company and its customers are increasing

,making this area an important to sustain in

this market

In this perspective the theme idea is to

expand how customer expectation study on

will help in delivering competitive

advantage for the retail sector and modern

retail outlets

As many feel that 4 p of marketing are

the sole determinants of competitive

advantage ,has today outdated and many

other variables should also be considered in

developing competitive advantage.

Understanding Consumer Needs

The consumers’ dreams of a good life by

flicking through all new demands created by

marketers who extend into more aspects of

our life, in search of profits by creating an

endless stream of new wants and turn them

into needs

Consumer shops for identity gain

respects and recognition, status where

shopping is made in the way we know

ourselves and each others forcing the

retailers to take a decision on various

aspects for sustainment. Hence retailing

demands a thorough understanding of local

customs, consumer taste and culture. By

making their shopping an

1. A Sort of pleasure in her shopping

experiences,

2. The Convenience of buying

everything from one shop,

3. The Speed and Efficiency in

shopping and process in,

4. Getting more and more information,

5. Better Quality and Hygiene, and

6. Getting Discounts.

Indian Consumer Changing Behavior

Today consumers are taking care of their

needs rather than there wants. its more

important that loyal customers are primary

sources of cash flow in situation where

decisions is taken in uncertainty , consumers



becoming more price sensitive and less loyal

– expecting favorite products and brands at

reduced price and setting for less prefer

alternatives . While business houses scan

those customers they in turn cross verify

them more carefully as they lost trust in their

investment. Almost everybody is cutting

back their spending in various methods

retailers have to respond fastly to changing

minds which can create opportunities to fill

the gap and remain competitive.

The Emerging Sectors

Retailing, the largest sectors in the

global economy, in India it has reached a

point of inflection forcing the grocery store

to slowly giving way to international

formats of retailing. The traditional food and

grocery segment has seen the emergence of

supermarkets/grocery chains convenience

store and fast-food chains .

The emergence of new sectors has been

accompanied by changes in existing formats

as well as the beginning of new formats like:

Hyper marts, Supermarkets, Mini

supermarkets, Convenience stores,

Discount/shopping.

Though traditional grocers, introduce

self-service formats as well as value-added

services such as credit and home delivery to

redefine them. Modern retailers find its

headway among customers. However, the

boom in retailing has been confined

primarily to the urban markets in our

country.

Growth Drives in Indian Retailing

TThhee IImmppoorrttaanntt ffaaccttoorrss ccoonnttrriibbuuttiinngg ttoo

tthhee ggrroowwtthh ooff rreettaaiill iinndduussttrryy aass ffoolllloowwss..

The emergence of India as the

destination for the BPO and the call

centres.

The Rising affluence among the middle

class families in the Indian society.

A continuous rise in the number of dual

income families

The convenience of carrying out all the

shopping requirements at one place.

A reasonable price for the good quality

and the branded articles

Growth of Retailing in India

Retailing in India - A Forecast

The future of the organized retail

trade in India is very bright. According to

the recent research studies it have been

projected to grow at a rate of about 37% in

the year 2007 and at a rate of 42% in the

year 2008. It would capture a share of 10%

of the total retailing trade by the end of the

year 2010.

According to the Union Minister for

Commerce and Industry, Shri Kamal Nath,

the organized retail sector was expected to

grow to a value of Rs. 2,00,000 crore

(US$45 billion) and it might generate about

10 to15 million jobs in next 5 years of 2007

to 2012. This could take place in two forms.

About 2.5 million of these people might be

associated directly with the retailing trade

and the rest 10 million people might be

gainfully employed in the related sectors

that would be pulled up through the strong

forward and backward linkage effects.

However, to compete in this sector

the aspirant should have complete and up-to-

date market information for planning and for

decision making. The second most important

requirement was is to manage the costs very



carefully in order to earn at least normal

profits in face of stiff competition.

RReettaaiilliinngg iinn IInnddiiaa -- TThhee PPrreesseenntt SScceennaarriioo

As could be clearly seen, the share of

the retail in India had been found to be

superior to those of its competitions. Such as

China and Brazil. The retail sector is a

growing sector in India and the prospect for

further growth is quite huge. There had been

many factors that had stimulated the growth

of the shopping centers and the multiplex-

malls in a large number. Some of them

could be stated as follows:

1. A rise in the purchasing power of the

Indians

2. The development of the retail trade

was welcomed by the farmers

3. An average Indian had become

conversant in the use of credit cards

and had

started preferring the credit cards

rather than carrying money in cash

4. A visit to a retail store had become

more comfortable and smoothing for

the present younger - generation

Problems for organized retail outlets

Poor supply chain management

Un organize supply base

Rental

Location

Inability to compete with

traditional retail

Poor supply chain management

Being a developed countries and

attempting to use western formats face the

problem of poor supply chain management

.Poor infrastructures, lack of storage and

warehousing facilities have been a

contributing to increasing price of operation

in developing countries and in non metros.

Where more logistics operators need to

come and professional service need to be

updated.

Unorganize supply base

As the market is scattered and distance

between point of production and sales is

different organizing them is always a tough

task .With un organized and un professional

supply base, the industry need more

advancement in material handling leading to

increasing operation cost resulting in

frequent stock out and frequent change in

pricing pattern.

Rental

Availability of Limited and structured

real estate influences the Sky high rentals

and other cost are unsustainable, forcing

operators to rethink on expansion decision,

indirectly inflating price and making stores

unattractive .

Location

Organized retail outlets in developing

countries and non metros are facing this

problem of unattractive and unstructured

location, with limited parking space

,crowding of all malls and store in one area

is hindering the growth of organized retail

outlets .

Inability to compete with traditional retail

The service gap and customer

expectation is also widening, where

organized retail outlet are unmatchable with

traditional outlets, kirana offer convenience

credit ,cost effective, personalized service

which is a long process in organized

retailing.



Other Strategies for competitive advantage

in Modern Retail Outlets

1. Study the Customer Thoroughly

To be effective ,You need to understand

where your customers are and what they are

searching in your store which will bring you

out of the vicious circle .Innovative CRM

activities is the need of the hour with

different product range for changing

customer needs. Value for money products

will sell. Store has to move beyond studying

queuing at following counters and shelf

space display and utilization. It has to focus

more on customers, their spending patterns,

their pick rates, lost sale analysis, customer

classification for identifying valuable

customers, rewarding loyalty and referrals,

profile shifts and many such areas.

2. Minimize Expectation Gap

To survive retailers must work to identify

and close there expectation gap to win as

much of there market share .Its easy because

all you need to do is give them what they

want

3. Effective portfolio management

The first comer in a location has the

opportunity to occupy these markets and

nurture them to growth. Such opportunities

in the vastly middle and lower middle class

Indian economy would be too costly to miss

out. Hedging risks, would be most logical if

retailers try a adaptable portfolio of stores,

keeping in view the demographic trends and

their geographic locations

4. Profit-oriented scalable model

The opportunity thrown up by the fast

emerging consumer boom can be best

converted to a profitable business

proposition using a scalable model.

Effectively utilizing spending patterns and

other similar aspects, which are healthy for

the retailing industry. A holistic customer

satisfaction model covering aspects of

comfort, convenience, consumption and a

host of other in-store and out-store

experiential factors needs to be evolved

specific to each store.

5. Shopper centric recreation

Shoppers today are more interested

in attaching many recreational activities

while they shop many leading malls and

other modern outlets have focused on this

area to attract all segments of shoppers and

creating an mind set for their interest

towards the

Conclusion

The profitability of any business

models depended upon the profitability of

the stores and adoption of suitable

competitive strategies may satisfy the

customer and face , changing behavior in

that sector, and compete with the

opportunity thrown open by the fast

emerging consumer. A study on sustaining

competitive advantage in organized retail

outlets in Tamil Nadu is an attempt to find

the impact of behavior on marketing. The

study reveals that they expect price,

convenience, recreation and value to be

there most influencing in decision making.

Hence all other factors should be taken into

consideration while developing competitive

advantage for retail outlets.

References

Books:

Philip Kotler, Marketing

Management Analysis, Planning and



Control, Prentice Hall of India, 1993,

P.19.

Memoria Joshi, Principles and

Practices of Marketing in India,

Kitab Mohal, Allahabad, 1984, P.60.

Leon G. Schiffman, Leslie Lazzar

Kaunk, Consumer behaviour,

Printiee Hall of India (pvt) Ltd.,

1994, P.54.

Philip Kotler, Garey Armstrong,

Principles of Marketing, Fifth

Edition, P.62.

C.R.Kothri, “Research

Methodology”, Methods and

Techniques, Wishwa Prakeshan

Publication, New Delhi, Second

Edition, 1990.

Journals:

1. Lomba (2001) “The art of retailing”

Tata Mcgrath hill

2. Shalyation S & Bharathi Shankar

(2004) “Retailing industries:

challenges and opportunities”,

Marketing master mind, May.

3. Changing Gears “Retailing in India”

The Economic Times, Intelligence

Group.

Websites:

www.researchandmarkets.com

www.shoppershop.com

www.pantaloon.com

Biography

*Associate Professor, Department of

Management Studies, National Institute of

Technology, Trichy.

**Research Scholar, Manonamium

sundaranar University, Tirunelveli.



Introduction

ENERGY is an essential input for

economic development and improving the

quality of life. India is world's 6th largest

energy consumer, accounting for 3.4% of

global energy consumption. Due to India's

economic rise, the demand for energy has

grown at an average of 3.6% per annum

over the past 30 years.

Chhattisgarh State is fortunate that it

has surplus electricity and has immense

possibilities of coal based thermal power

generation. At the national level one finds

several States suffering from serious power

crises. Looking to abundant availability of

coal in the state, Chhattisgarh would be

developed as a 'Power Hub' of the nation

from where power would be exported to

other needy States. Chhattisgarh has over 40

billion tonnes of coal reserves amounting to

16 per cent of India's total coal reserves. It

therefore has an edge over other states as it

can use these reserves for power generation.

Chhattisgarh already has surplus electricity

generation capacity. Being strategically

located in central India, the electricity

generated in the state can be easily be

transmitted to any of India's four regional

electricity grids.

Agriculture, social capital

requirements for industrial developments

and industrial growth are the various aspects

of economic development of a state.

Chhattisgarh, a newly born state, is

progressing by leaps and bounds. The state

also has mega industries in sectors including

steel, power, mining, aluminium and

cement.

The state has experienced a modest,

but consistently positive growth in Gross

State Domestic Product (GsDP). During

2007-08 Chhattisgarh recorded a 9.14%

growth in GsDP. Almost all sectors in

Chhattisgarh showed huge volatility in

growth rates last year. While the agricultural

sector grew at a rate of 6.26 percent (higher

than targeted 3 percent), the industrial and

services sector grew at rate of 14.70 percent

(higher than targeted 7.5 percent). The

service sector grew at 7.78 percent (higher

than targeted 7percent).

Power Hub: Chhattisgarh is potential power

hub with surplus energy generation, which

can attract more industries. One of the few

States in India having uninterrupted, quality

power supply. The density of population is

much lower than the country population

density. Hence free land is available for

industrialization. Lot of land available for

industrial set-ups at reasonable rates

compare to other states.

Steel industry is one of the biggest

heavy industry of Chhattisgarh. Bhilai Steel

Plant, Bhilai operated by SAIL with a

capacity of 5.4 million tonnes per year, is

regarded as a significant growth indicator of

the State. Chhattisgarh accounts for 15%

of the total steel produced in the country.

The state’s domestic product for

2010 was estimated at 60,079 crores of

rupees. The economy of the state has grown

ENERGY, ELECTRICITY AND ECONOMICS OF THE STATE OF CHHATTISGARH

Ms. Bhuvana Venkatraman *

http://en.wikipedia.org/wiki/Economy_of_India



so rapidly in the recent past with a high

growth rate of 11.49.% in GDP for 2009-

2010. The key reason behind this success

rate is due to agriculture and industrial

sector. In the year 2002, out of the entire

land area of 13787000 hectares, the net

irrigated region of Chhattisgarh was around

10, 72, 000 hectares. This indicates the

extensive contribution of agriculture towards

the economy of Chhattisgarh.

Power Sector

About 90% of the villages are

electrified in Chhattisgarh. With regard to

power production, the state is in a

comfortable and financially profitable

position. The CSEB is in a strong position

to meet the electricity requirements of the

new state and it is financially sound also.

The liberal policy for captive

generation of the state has fetched more

number of private company into power

sector apart from NTPC and CSEB. NTPC

has a thermal capacity of 2100 MW at Sipat,

Bilaspur while CSEB’s units have a thermal

capacity of 1240 MW and hydel capacity of

130 MW. As per the report of the study by

the power finance corporation limited, New

Delhi, Chhattisgarh has the potential of

61000 MW of additional thermal power in

terms of availability of coal for more than

100 years and more than 2500 MW hydel

capacity.

There are many factors that

contribute to the economic development of a

country or for a state. If a power plant or an

industry is established regional development

takes place. If a power plant is set up then

associated peripheral development also takes

place like a colony, employment,

transportation, college, hospitals, etc. All

these factors indicate the economic

development of a particular region. Also it is

worthwhile mentioning here that the as coal

mines are located in Chhattisgarh ( in and

around Bilaspur) the transportation cost

and other cost of generation is definitely less

in the state as compared to the cost of

generation of power in other states . This

will be a boon to investors setting up power

plants . Further the lower cost of production

for CSEB directly results into the lower

power tariff for the consumers when

compared to other states.

When an industry is established in a

given locality, there are definite chances of

growth in the region due to the following

factors:

Schools and educational institutions

are established thereby leading to increase in

literacy rate of the local population,

employment opportunities created through

such institutions of both skilled, trained and

unskilled labour, increase in the per capita

income of that region further leading to the

overall growth and development of the

region, city, district and state.

Hospitals once established creates

larger number of employment opportunities,

infrastructure facilities of the locality,

transportation facilities would be enhanced

due to hospital, healthy environment,

healthy population, less in infant mortality

rate, etc.

While celebrating the 11th

anniversary of the state, chief minister , Dr.

Raman singh quoted few lines for the daily

news paper THE HITAVADA dated

28.11.11 that Chhattisgarh is the first state

to provide uninterrupted quality and cheap

power on 24x7 basis, to both urban and rural



reas. In the next five years, the likely

capacity addition of 30,000 MW with an

investment of rs. 1,50,000 crores. In the

next 3 years, Korba will generate 10,000

mw of power and become the energy capital

of india. in the coming 3 years, the

electricity companies of the state will invest

17,000 crores in generation, transmission

and distribution infrastructure. The per

capita energy consumption increased from

354 units to 1500 units. Farmers are being

provided with 6000 units free electricity per

annum, 2.8 lac pumps energized. About

97.08% of the villages are electrified. PLF

of thermal power stations has increased from

66% to 90%. Dr. shyama Prasad mukherjee

TPS, Korba achieved meritorious award in

all india ranking.

The growth in the Power Sector i.e.

Building of a Thermal power plant brings in

associated developmental activities . As per

a report as on 21.11.11 to the news daily

THE HITAVADA, Chhattisgarh state power

generation company limited (CSPDCL), a

public sector unit of Chhattisgarh

government, has targeted to complete its two

large thermal power plants at the cost of rs.

9500 crore by 2012. With the commission

of these two power plants in service, the

generation capacity of the company will be

increased from 1924 mw to 3424 mw.

CSPDCL officials informed that as per

direction of chief minister Dr Raman singh,

the construction of 1000 mw capacity

thermal power plant at the cost of rs. 6318

crore in Madwa Tendubhata of Jangir-

Champa district is in full swing. Apart from

this, construction of 500 mw capacity korba

west thermal power project is also underway

at war footing. The estimated cost of this

project is around rs. 3156 crore. Chief

minister has instructed the officials to

complete these projects by 2012. Company

has completed the hydraulic test of boiler in

Korba West Thermal Power Project.

On March 3, 2001, in the meeting of

Chief Ministers on Power Sector Reforms,

the Prime Minister welcomed the then Chief

Minister Ajit Jogi’s offer of Chhattisgarh

becoming the Power Hub of India. This

offer is now becoming a reality : NTPC has

already started construction on its 2640 MW

Sipat Super Thermal Plant and another 600

MW plant in Korba. In response to our

invitation, Government of Gujarat is putting

up a 500 MW generation plant in Korba.

Several other States are also interested.

Power will be wheeled to the respective

States. Private sector MoUs total another

1500 MW , and more projects are in the

pipeline.

In Chhattisgarh, NTPC has an

installed thermal capacity of 2100 MW at

Sipat, Bilaspur while CSEB's units have a

thermal capacity of 1240 MW and hydel

capacity of 130 MW. Apart from NTPC and

CSEB, there are a number of private

generation units of large and small capacity.

The State Government has pursued a liberal

policy with regard to captive generation

which has resulted in a number of private

players coming up.

As per a study made by the Power

Finance Corporation Ltd New Delhi, the

State has potential of 61,000 MW of

additional thermal power in terms of

availability of coal for more than 100 years

and more than 2,500 MW hydral capacity.

To tap this vast potential, substantial



addition to the existing generation capacity

is already under way.

The state has a conducive

environment, government support is

available and above all policy is also

supportive.

The state has an advantage of

partition from Madhya Pradesh with respect

to mainly the power sector. Because of its

geographical partition the state of

Chhattisgarh has the greatest advantage of

getting the locations of all power plants in

its new location. That is why we can see the

difference of the power position which is

very worst in Madhya Pradesh. Earlier

before the state formation Madhya Pradesh

did not have lot many problems as it faces

now in the present situation. When the

Chhattisgarh state was divided all the power

plants located in Madhya Pradesh came to

the present Chhattisgarh and so is the quick

name for the state as power hub in just 13

years of birth of the state.

Present State and Condition of Electricity

and Power in Chattisgarh State

Power supply from CSPGCL ,

central sector plants, renewable energy

plants and short term power purchases from

captive stands at around 3600 MW, which is

more than adequate to meet the present

demand of 3300 MW. Since January, 2008,

Chhattisgarh has been one of the few states

to supply 24x7 power to not only urban

consumers but also rural agricultural users.

Also rooftop solar plants with a

capacity of more than 20 MW have been

installed. Most of the government office

buildings (including the Raj Bhawan and the

Vidhan Sabha), hospitals, and households

(about 1500) have been electrified using

solar power.

India’s first geo thermal power plant

coming up in Chhattisgarh. The chief

minister is aggressively pursuing the

implementation of the geothermal power

project in the state. Recently, state

government granted permission for

installation of a geothermal power plant at

Tattapani, district Balrampur, Surguja to the

National Thermal Power Corporation. This

will be first geothermal power plant in the

country. The new plant is expected to

generate 300 MW power. The initial

years there had been no development

in the installed capacity generation

of power and as such the state has

started to grow only after 2006-07 in

terms of capacity installation and ou t

of the total installed thermal power

generation capaci ty in the country,

Chhattisgarh contributes a

considerable portion even though the

Chhattisgarh region has a widespread

deposit of low grade coal which is

predominantly used in thermal power

plants across the country. Further

increase in capacity installation may

be due to the state’s concentration,

demand and scope for power. The

generation of thermal power in the

state of Chhatt isgarh in the year

2001 and 2012. Needless to say, we

find the significant growth in units

generated over the years. Out of the

total generation of power in 2000 of

the state 7372.45 MkWh, thermal

power contribution is the major at

7138.66 MkWh and the total

generation of power in 2012 stood



at 12982.778 MkWh and contribution

of thermal power is 12636.65 MkWh.

So it is now clear that the

contribution of thermal power

generation in the state is more as

compared to other means of power

generation for the total generation of

power. Reason behind this is the

easy availabili ty of coal to generate

thermal power.

CSPDCL has provided 93,405 new

below poverty line (BPL) , 98116 LT and

18,458 agriculture pump set connections. In

addition to the above, under the Rajiv

Gandhi Grameen Vidyutikaran Yojana,

CSPDCL has electrified 271 villages while

intensive electrification works have been

undertaken in 1376 villages of the state.

Also , CSPDCL has reduced transmission

and distribution losses by 3.18%. over the

past year.

Chhattisgarh has also made progress

in improving services through initiatives

such as the Mukhya Mantri Shahri

Vidyutikaran Yojana, which is aimed at

strengthening urban infrastructure,

introduction of a spot billing system in 68

towns, and installation of any time payment

machines across the state (ATP).

The state has made significant

progress in augmenting the transmission

system also. With an objective to provide “

Power for All”, about 1,25,000 single and

three phase service connections and 250 HT

connections would be released. CSPDCL is

also focusing on reducing T&D losses. For

2012-13, a provision of Rs 1.5 billion rupees

has been made for various loss reduction

schemes.

Under the Restructured Accelerated

Power Development And Reforms

Programme (R-APDRP), 22 towns are

covered for providing power to 6,70,000

households through the installation of 9201

distribution transformers. The

implementation of R-APDRP part a has

been delayed due to the failure of the

selected implementation agency. Therefore,

the additional time taken to award the

contract to a new agency has affected the

programmes’ schedule. Works are now

likely to be completed by October,2013.

The unavailability of experienced manpower

has been a major hindrance in this regard. It

is expected that part B of the programme to

be completed as per schedule.

Chhattisgarh is an investment

friendly state as many giant industries are

established in the state and continued

availability of power further draws such a

huge investment by these companies. Also

it is clear that almost all industries have their

own captive power plant for their use.

Availability of coal and water in abundant is

a major requirement for thermal power

generation makes the new state with such an

tremendous industrial growth. These major

industries bring in huge investments leading

to marked development in the state and

thereby creating lot of direct and indirect

employment opportunities, increasing the

standard of living of the people of the state

and so on.

The percentage of consumption of

industrial sector to the total consumption

from 2000 to 2012 has shown a decreasing

trend but in absolute quantity terms the

consumption has nearly tripled from 3100

Mkwh to 7053 Mkwh.



We can deduce that the growth in LT

consumers have shown a steady increase in

the decade i.e around 9-10% compounded

growth every year whereas medium and

heavy industrial growth in numbers have

shown a large compounded percentage 25-

26% i.e increase is from 510 to 1805 in the

period of 10 years and that indicates state’s

investment potential. The growth in this

sector shows a high growth potential.

Challenges of Electricity Generation,

Distribution And Collection of Revenues

About 30% of the generated energy

is lost or remains unbilled or uncollected.

Fly Ash Management has become one of the

most challenging tasks for the power sector.

While stringent environmental norms for fly

ash utilization by the thermal plants are

being formulated, proper enforcement of the

same still remains a major issue. Issues like

inadequate fuel availability, political

influence in the sector and the poor financial

condition of the distribution companies are

further deteriorating the growth of this

industry. Also it is found that there is a gap

between cost of power supply and the cost

of recovery leading to financial problems

and poor financial position of the discoms.

Basically for establishing power plants one

has to face lot of challenges like :- Forest

clearance,Allotment of coal,Land

acquisition,Unavailability of trained skilled

labour to work in power plants.

Conclusion

The state ‘s vision is to provide 24x7

quality and affordable power to all. The

state is taking every step to achieve this

target.

It is very clear that the power sector of the

state has contributed considerably in its

economic development. As we see that with

one power plant being established allied

industries and developments also takes place

simultaneously leading to the total state

development. When investors come from

other states to Chhattisgarh for setting up of

power plants for generation purposes

definitely state will be at an advantageous

position only. The revenue from this sector

also reflects the development of the state.

Corporate social responsibility activities

taken up by power companies be it central

NTPC, state utility CSEB, captive power

plants – the steel industries, cement

industries, aluminium industries,

Independent power producers – Jindal,

GMR ,etc also can be taken into account as

contribution of power sector to the

chhattisgarh’s state economy. Through

these activities lot of social developments,

land developments, community

developments takes place in remote areas

leading to the overall development of the

state. Moreover a Power plant of 500MW or

600 MW capacity generation will generate

an employment of more than a million man

days working during construction and

provide employment to around 1000 persons

directly and 20000 indirect employment on

commissioning and running.

By considering the various

advantages of the state in terms of land

availability, labour availability, and mainly

coal availability and the facility of wheeling

the coal from one place to another within the

state itself the best source of energy

generation will be thermal coal based



generation of electricity which makes the

state POWER HUB OF THE NATION.

References

a) “Kalki” electricity special issue

08.04.12.

b) The hitavada, Raipur, Tuesday,

January 8, 2013. Pg 1 and 6.

c) http://www.eximguru.com/budget-

speech-2012-2013.aspx

d) http://en.wikipedia.org/wiki/Econom

y_of_India

e) http://www.oifc.in/sectors/infrastruct

ure/power

f) http://hyperphysics.phy-

astr.gsu.edu/hbase/electric/powerp.ht

ml

g) Mr. Raj Singh Niranjan "guide to

electricity Laws in India" published

by Universal Publications. it remains

the best commentry on the India

Power Sector.

h) Powerline, vol 17,

no.1,September,2012.

i) THE DIFFERENT BENEFITS OF

ENERGY POWER, AUTHOR

ADMIN, 21ST

JULY, 2010.

j) http://www.chhattisgarhonline.in/Ab

out/profile/Economy/index.html

k) The official website of chhatisgarh

govt. details regarding the intro part

of state as in the website

modification was 18.12.12 at 10.52

l) www.ibef.com

m) http://www.mapsofindia.com/chhatti

sgarh/economy/agriculture.html

n) The hitavada, 21st November, 2011.

o) The hitavada, 28.11.11.

p) Union minister speech, pranab

mukherjee on union budget 2012-13.

(16.03.12).

q) The hitavada, 17.02.13.

r) Chhattisgarh @2022 vision

document, prepared by confederation

of Indian Industry, Raipur.

s) Central chronicle, pg 18, dtd 18.7.12.

t) Central chronicle, july 24, 2012,

Tuesday.

Biography

* Assistant Professor P.G. Dept of

Commerce, St Thomas College,

Ruabandha, Bhilai, Chhattisgarh.

http://www.eximguru.com/budget-speech-2012-2013.aspx

http://www.eximguru.com/budget-speech-2012-2013.aspx



http://www.oifc.in/sectors/infrastructure/power

http://www.oifc.in/sectors/infrastructure/power

http://hyperphysics.phy-astr.gsu.edu/hbase/electric/powerp.html



http://en.wikipedia.org/wiki/Electricity_generation

http://www.chhattisgarhonline.in/About/profile/Economy/index.html

http://www.chhattisgarhonline.in/About/profile/Economy/index.html

http://www.ibef.com/

http://www.mapsofindia.com/chhattisgarh/economy/agriculture.html

http://www.mapsofindia.com/chhattisgarh/economy/agriculture.html



Introduction

Entrepreneurship is assumed to be a

major source of innovation, job creation and

growth (Thurik, 1996; Audretsch and

Thurik, 2000 and 2001; Carree, Van Stel,

Thurik and Wennekers, 2001; Audretsch,

Carree, Van Stel and Thurik, 2002).

Entrepreneurship is associated with

innovation and creating something that does

not have prior existence, it is often treated as

equivalent to new venture creation and, as a

consequence, business ownership (Vesper,

1980; Gartner, 1989). Entrepreneurship has

traditionally been defined as the "creation of

new enterprises and the entrepreneur as "an

organizer of an economic venture, especially

one who organizes, owns, manages, and

assumes the risk of a business" (Webster's

Third New International Dictionary,

1961).Nevertheless, entrepreneurship can

also be present within large organizations or

outside the business environment. Indeed,

entrepreneurial behavior in its broader sense

has become more important in our society

(Gavron, Cowling, Holtham and Westall,

1998) where people face a more uncertain

Work environment, with multiple job shifts

during a career, greater prospects of

becoming self-employed, and where tasks

increasingly require qualities such as

independence, initiative and creativity

(Bridge, O’Neill and Cromie, 1998; Gibb

and Cotton, 1998). These entrepreneurial

qualities enable individuals to cope up with

and contribute to rapid social and economic

change (OECD/CERI, 1989; Gibb and

Cotton, 1998).

Entrepreneurship is universal in any

human activity. Entrepreneurship has been

defined as a creative human act involving

the mobilization of resources from one level

of productive use to a higher level. First

generation entrepreneurs quite often start

small business with small investments and

then, once established, some of them switch

over to larger firms, and some get vanished.

But the young and new venture creators start

the enterprise only with large investment,

GOVERNING VIBRANTS OF ENTREPRENEURS

This paper explores relation of entrepreneurship and entrepreneurial traits. For that

some of the vibrant traits of entrepreneurs were taken for analysis based on basic

demographic variables. Entrepreneurial traits like initiative, opportunity seeking,

information seeking, self-confidence, use of influence strategy, adaptability, perseverance,

goal orientation, risk taking and ambiguity were taken and data were collected from 545

entrepreneurs. The Correlation Coefficient had been used to identify the foremost traits of

entrepreneurs and their relations with entrepreneurship based on the demographic variables.

The study supports that entrepreneurial traits has had an impact on the improvement of

business. The findings also highlight the relationship of the variables on entrepreneurial

traits.

Mrs.S.Sowmiya*



because of the competitiveness in the market

and entrepreneurship involves a willingness

to take responsibility and the ability to put

the mind to a task end see it through. An

ingredient of entrepreneurship is sensing

opportunities through various risks and

seeing as a change agent.

Entrepreneurship is the practice of

starting new organizations or revitalizing

mature organizations, particularly new

businesses generally in response to

identified opportunities. Entrepreneurship is

often a difficult undertaking, as a vast

majority of new businesses fail.

Entrepreneurial activities are substantially

different depending on the type of

organization that is being started.

Entrepreneurship ranges in scale from solo

projects (even involving the entrepreneur

only part-time) to major undertakings

creating many job opportunities. Many

"high-profile" entrepreneurial ventures seek

venture capital or angel funding in order to

raise capital to build the business. Angel

investors generally seek returns of 20-30%

and more extensive involvement in the

business.[1]

Many kinds of organizations

now exist to support would-be

entrepreneurs, including specialized

government agencies, business incubators,

science parks. and some NGOs.

The Entrepreneur

Entrepreneurs have many of the

same character traits as leaders. Similarly to

the early great man theories of leadership;

however trait-based theories of

entrepreneurship are increasingly being

called into question. Entrepreneurs are often

contrasted with managers and administrators

who are said to be more methodical and less

prone to risk-taking. Such person-centric

models of entrepreneurship have shown to

be of questionable validity, not least as

many real-life entrepreneurs operate in

teams rather than as single individuals. Still,

a vast but now clearly dated literature

studying the entrepreneurial personality

found that certain traits seem to be

associated with entrepreneurs:

David McClelland (1961) described the

entrepreneur as primarily motivated by an

overwhelming need for achievement and

strong urge to build.

Collins and Moore (1970) studied 150

entrepreneurs and concluded that they are

tough, pragmatic people driven by needs

of independence and achievement. They

seldom are willing to submit to authority.

Bird (1992) sees entrepreneurs as

mercurial, that is, prone to insights,

brainstorms, deceptions, ingeniousness

and resourcefulness. They are cunning,

opportunistic, creative, and unsentimental.

Cooper, Woo, & Dunkelberg (1988) argue

that entrepreneurs exhibit extreme

optimism in their decision-making

processes. In a study of 2004

entrepreneurs they report that 81%

indicate their personal odds of success as

greater than 70% and a remarkable 33%

seeing odds of success of 10 out of 10.

Busenitz and Barney (1997) claim

entrepreneurs are prone to overconfidence

and over generalizations.

Cole (1959) found there are four types of

entrepreneur: the innovator, the calculating

inventor, the over-optimistic promoter, and

the organization builder. These types are not

http://en.wikipedia.org/wiki/Entrepreneurship#cite_note-0



related to the personality but to the type of

opportunity the entrepreneur faces.

Review of Literature

The Journal of Developmental

Entrepreneurship (JDE) Published by

Norfolk State University the Journal of

Developmental Entrepreneurship (JDE)

provides a forum for the dissemination of

descriptive, empirical, and theoretical

research that focuses on issues concerning

microenterprise development among

economically disadvantaged groups. In

developed nations, the economically

disadvantaged are usually minorities and

women, while in less developed nations the

economically disadvantaged can be the

majority of the population. An interesting

initiative which has just started.

Studies on entrepreneurship covering

various biographical, social and general

characteristics

McCrory (1956) studied 14 and 3

small-scale firms in Chopur and Moradabad

towns respectively, in Uttar Pradesh.

Though he considered family background in

crafts as a needed source of good industrial

entrepreneurs, he observed that in the initial

stages such a background did not enable

craftsmen entrepreneurs to protect their

working capital and overcome a crisis in the

industry. They lost their working capital in a

variety of ways-through illness, a slump in

the market, failure of a machine to sell,

competition, deception of a partner, theft,

etc.

Singh (1964) studied the role played

by entrepreneurship in development

activities of farmers. The successful

agricultural entrepreneurs had a positive

rating of their economic progress, liking for

their present occupation, preference for

agriculture as a profession for their sons if

they so desired, a favourable attitude

towards modernization and individual

farming for the growth of agriculture in this

country in contrast to traditional and

unsuccessful agricultural entrepreneurs, thus

clearly indicating the role played by

entrepreneurship in development activities

of farmers (Singh, 1964).

Raymond Lee Ovens and Ashis

Nandy (1971) have found the manner in

which entrepreneurs identify the forces that

push a community towards greater

entrepreneurial initiation and success. They

found that in Howrah, it is a case of

secondary industrialization in which most

small-scale firms are backwardly linked to

well-developed large-scale units. There is a

highly efficient blending of modern and

traditional ways of doing things and groups

other than traditional elitists who were in a

position to enter entrepreneurship. Again

entrepreneurship is not a unitary behaviour

of experience. The characteristics of

entrepreneurs have been identified by

Christopher (1974) as perseverance and hard

work, risk taking ability, high aspiration,

willingness to learn, dynamism and

creativity, adaptability, innovativeness, good

salesmanship, ability to win friends and

overcoming crises, initiative, self-

confidence, will power, determination to

succeed, pleasing personality, composure

and tactfulness, high integrity,

responsibility, excellence in work and

perception of time. Those entrepreneurs who

were ambitious to learn more and who

followed business ethics were highly

successful in their business.

http://www.sba.muohio.edu/PageCenter/JDE/

http://www.sba.muohio.edu/PageCenter/JDE/



Ramakrishnan (1975) studied 94

small-scale new (emerged after 1965) units

in 11 modern industries in Delhi city. He

divided the units into three categories as

those, which succeeded in the industry,

those that dropped out after production

began and those, which failed to commence

production itself. He considered social status

and occupational background of the

entrepreneurs' families as some of the

determinants of this mobility. He gave

importance to education also.

Vinod Agarwal (1974) reported that

western education imparted in India lacked

entrepreneurial content. The human element

associated with business enterprises,

initiative, assignments and be successful,

thus enhancing their self-concept. The

higher the self-concept and self-esteem, the

greater will be their contributions to the

goals of the organization especially then the

system rewards them for their contributions.

Thus, it is concluded that studies relating a

entrepreneurs and self-concept would be

added to the understanding of self esteem.

Venkatapathy (1989) studied the cognitive

concept of self and concluded that the two

distinct types of entrepreneurs viz., First

Generation Entrepreneurs (FGE) and Second

Generation entrepreneurs (SGE)

significantly different with regard to their

perception of self. Venkatapathy(1991)

reported that the perception of cognitive self

shows markedly significant difference

between FGE and SGB.

The study reports that self-esteem

accounts for entrepreneurial behaviour more

than n-ach in task specific situations (Arkes

and Garske, 1982). In America it is reported

that entrepreneurs do have significantly

greater self-esteem compared to non-

entrepreneurs. No such distinction is seen

between entrepreneurs and non-

entrepreneurs in Korea, Thailand and China

(Stimpson et.al. 1990). However, studies in

the Indian context especially either with the

potential or franchising entrepreneurs is

missing.

University degree holders registered

with employment service have lower self-

esteem Rowley and Feathers (1987)

revealed that younger groups of unemployed

are reported to suffer more due to lower self-

esteem than older groups. People who left

full time jobs through dismissal seem to

suffer no worse than those who gave

external causal attributions for their

unemployment and displayed higher self-

esteem than those who gave internal causal

attributions.


Design

The present study is descriptive in

nature. The study is centered in collecting

and compiling the individual characteristics

impact on the entrepreneurial spirit and

success in the business. The study cover the

metropolitan city of Chennai, includes the

entrepreneurs of budding and experienced

from different businesses.

Objectives of Study

The present study was undertaken

with the following objective.

1. To find out the relationship between the

entrepreneurial traits based on

demographic variable.

Sampling Design

The study is mainly based on

primary data which was collected from the

600 businessmen who are doing business in



various parts of Chennai, Tamilnadu,

INDIA. The entrepreneurs were chosen by

the convenient sampling method. The study

areas were selected randomly and

respondents were chosen conveniently from

Chennai. The sample distribution is made

equally between urban and semi urban areas.

Of the total respondents, 545 samples were

taken for the final study. The remaining

questionnaires were rejected due to

insufficiency of data filled in by the

entrepreneurs.

Discussions and Findings

Table1: Distributionof The Sample On The

Basis Of Gender

Gender Frequency Percentage

Male 328 60.18

Female 217 39.82

Total 545 100.00

Source: Primary data.

It is observed from the table that the

distribution of sample between male and

female is 60.18:39.82.It shows that majority

of the respondents in the sample are

businessmen. It also indicates the need for

encouraging women entrepreneurs. This

requires a lot of initiatives from the gross

root level in the society. The best model

may be including the entrepreneurship

studies in the academic curriculum which

emphasis the awareness, need, importance

and management of business units

successfully. This initiative may help in

building entrepreneurial courage among the

youth to take up the job of establishment and

management of small business and to take

up to the greater heights. The initiatives

taken in this direction may yield long run

results to the society at large.

TABLE 2: Distributionof The Sample On

The Basis Of Age

Age Group

(In Yrs)

Frequency Percentage

20-30 79 14.50

30-40 171 31.38

40-50 198 36.32

Above 50 97 17.80

Total 545 100


It is noted from the above table , that

the age composition of the sample consists

of 36.33 of the business men are belongs to

40-50 years age group. 31.38 percentage of

businessmen belongs to 30-40 years age

group. The least percentage of 14.5 percent

of business men belongs to 20-30 years age

group. It is quite appreciable to have a

matured people managing the business. On

the other hand it there is a need to have

encourage youth to enter in to

entrepreneurship to have the balanced

growth and dependence on the various

occupations in a society. In addition youth

have got lot of opportunities to deal with

technical service businesses. A huge amount

of business can be performed by the youth in

technical line where the low level of

investments yields huge returns. It also helps

in generating employment to the youth and

improving technical skills among the youth.

Developing technical awareness and techno

profile of the country helps to grow faster

than normal rate. These initiatives may help



to have better standard of life among the

individuals in a knowledge society.

Table 3: Distributionof The Sample On The

Basis Of Educational Qualification

Qualification Frequency Percentage

Up to HSC 59 10.83

UG 120 22.02

PG 285 52.29

Professional 81 14.86

Total 545 100


It is observed from the table.3 that

52.29 Percentage of the sample respondents

having Post Graduation Qualification among

the businessmen, only 10.83 Percentage

represents the higher secondary

qualification. It is inferred that majority of

the business men is qualified and doing

business either as ancestral or as a self

employment. It helps in understanding the

changes in business environment and take

necessary steps to develop business and to

face competition in the market. Education is

a weapon to resolve darkness in the minds of

individual and flashes a light in new

dimension to think and succeed in their life.

It is appreciable to have a majority of

business men as educated and with

determining business in a dynamic way. It

indicates the entrepreneurial traits of the

business men in the sample area.

Table 5 Showing Correlation Co-Efficients

Between Entrepreneurial Traits

VA

RIA

BL

ES

Init

iati

ve

Tra

its

Op

po

rtu

nit

y

seek

ing

tra

its

Info

rmati

on

seek

ing

tra

its

Sel

f-co

nfi

den

ce

tra

its

Use

o

f in

flu

ence

stra

teg

y t

rait

s A

dap

tab

ilit

y

trait

s P

erse

ver

an

ce

trait

s G

oal

ori

enta

tion

Tra

its

Ris

k t

ak

ing t

rait

s

Am

big

uit

y t

rait

s

Init

ia

tiv

e

tra

its

1.00

00

Op

po

rtu

nit

y

seek

i

ng

tra

its

0.3

60

7*

*

1.0

00

0

Info

rm

ati

on

seek

ing

trait

s 0.3

34

7*

*

0.5

55

3*

*

1.0

00

0

Sel

f

con

fid

e

nce

trait

s 0.2

174*

*

0.3

249*

*

0.5

739*

*

1.0

000

Use

of

infl

uen

ce

stra

tegy

trait

s 0.4

086**

0.4

152**

0.5

996**

0.5

032**

1.0

000

Ad

ap

ta

bil

ity

trait

s

0.3

382*

*

0.3

589*

*

0.3

580*

*

0.0

604

0.3

323*

*

1.0

000

0

Per

sever

ence

trait

s

0.3

050**

0.2

840**

0.2

680**

0.1

716**

0.3

651**

0.7

146*

*

1.0

000

Go

al

ori

enta

tio

n t

rait

s

0.2

58

3**

0.2

06

9**

0.2

06

9**

0.1

62

7**

0.2

32

4**

0.5

462**

0.6

350**

1.0

000

Ris

k

tak

ing

tra

its

0.1

20

3*

*

0.1

58

9*

*

0.1

01

6*

0.0

64

4

0.1

94

1*

*

-0.0

116

-0.0

080

0.1

541**

1.0

000

Am

big

uit

y t

rait

s

0.0

67

9

0.0

13

7

0.0

11

6

-0.0

30

1

0.0

62

6

-0.0

335

-0.0

593

0.1

230**

0.6

121**

1.0

000



Note:

1. * *- Indicates Significant at 1%

Level.

2. * - Indicates Significant at 5% Level.

From the above correlation co-

efficient matrices it is inferred that there

exists relationship between the initiative

traits and entrepreneurship with 100%, the

relationship between initiative traits and

opportunity seeking traits exists with

36.07%. There exists a relationship between

initiative traits and information seeking

traits with 33.47%, opportunity seeking

traits with 55.53%. The relation ship

between initiative traits and self confidence

traits is recorded with 21.74%, opportunity

seeking traits with 32.49% and information

seeking traits with 57.39% among the

business men. The relationship between

initiative traits and use of influence strategy

traits, opportunity seeking traits, information

seeking traits, self confidence traits is

recorded at 40.86%, 41.52%, 59.96% and

50.32% respectively among the business

men. Initiative traits and adoptability traits,

opportunity traits, information seeking traits,

self confidence traits and use of influence

strategy traits is recorded at 33.82%,

35.89%, 35.80%,6.04%and 33.23%

respectively. There is a relationship between

initiative traits and perseverance traits

opportunity seeking traits, information

seeking traits, self confidence traits use

influence strategy traits, adaptability traits

with 30.50%, 28.40%, 26.80%, 17.16%,

36.51%, and 71.46% respectively. There is a

significant relation ship between initiative

traits and goal orientation traits, opportunity

seeking traits, information seeking traits,

self confidence traits use influence strategy

traits, adaptability traits with 25.83%,

20.69%20.69%, 16.27%, 23.24%,

54.62%and 63.50% respectively. There is

significant relationship between initiative

traits and risk taking traits, opportunity

seeking traits use of influence strategy traits

and goal orientation traits with 12.03%,

15.89%, 19.41% and 15.41% respectively

and a negative relationship is recorded

between initiative traits and adaptability

traits and risk taking traits with 1.16% and

0.080%, respectively, it is negligible. Finally

the relationship between ambiguity traits

and initiative traits, opportunity seeking

traits, information seeking traits use of

influence strategy traits is recorded as not

significant and the relationship with

adaptability traits, self confidence traits and

risk taking traits are recorded negative. A

positive and significant relationship is

observed between ambiguity traits and goal

orientation traits, perseverance traits with

12.30% and 61.21%respectively among the

business men.

Hypothesis(H0): There is no significant

difference between gender with regard to

the dimension of entrepreneurial traits

TABLE 6: Table showing gender

differences with regard to entrepreneurial

traits



Dim

ensi

on

of

En

trep

reneu

rial

trai

ts

Gender

t-valu

e

P-v

alu

e

Male Female

Mea

n

SD

Mea

n

SD

Init

iati

ve

14.0

6

3.6

7

15.4

1

3.4

4

4.3

1

.000

**

Op

po

rtu

nit

y

seek

ing

14.2

1

4.3

5

15.8

8

4.5

1

4.3

2

.000**

Info

rmat

ion

seek

ing

15.8

0

5.0

2

15.4

3

4.9

4

0 .8

3

.407

Sel

f

con

fid

ence

16.4

1

4.6

9

15.7

2

4.6

0

1.7

0

.090

Use

o

f

infl

uen

ce

stra

tegy

15.9

9

5.5

0

16.3

6

5.0

0

0.7

9

.428

Ad

apta

bil

ity

17.4

4

3.4

0

18.0

6

3.5

6

2.0

4

.042

Per

sever

ance

15.9

8

3.8

2

17.1

3

3.6

2

3.5

1

.000**

Go

al

Ori

enta

tio

n

17.0

2

3.4

2

17.9

6

3.3

4

3.1

7

.002*

*

Ris

k

tak

ing

19

.56

3.4

3

20

.47

3.1

7

3.1

2

.00

2*

*

Am

big

uit

y

24

.41

4.3

1

24

.98

3.7

7

1.6

1

.10

9

Ov

eral

l

En

trep

reneu

ri

-al

Tra

its

170.9

0

24.8

3

177.4

2

22.6

9

3.1

1

.002**

Source: Primary data

Note:* *- Indicates Significant at 1% Level.

* - Indicates Significant at 5% Level.

Since P- Value is less than 0.01, the

null hypothesis is rejected at 1% level of

significance. The difference between the

gender with regard to the dimension of

Initiative traits, opportunity seeking traits,

perseverance traits, goal orientation traits,

risk taking traits and overall entrepreneurial

traits are exists among the businessmen.

Based on the mean value the initiative traits,

opportunity seeking traits, perseverance

traits, goal orientation traits, risk taking

traits and overall entrepreneurial traits are

high among the women when compare to

men in the sample. It is due to inherited

nature of women to have high level of

commitment in their selected endeavors. In

additional the change in the business

environment in favour of women

entrepreneurs is encouraging women to take

up risky assignments and to prove

themselves as successful in business.

Since P-value is greater than 0.05,

the null hypothesis is accepted at 5% level

of significance. There is a significant

difference between gender with regard to the

dimension of information seeking, self

confidence, use of influence strategy,

adaptability and ambiguity traits among the

businessmen. Based on the mean value the

information seeking traits and self

confidence traits are high among the male

when compare to female among the sample

respondents. It is due to the contacts and the

going to different places frequently gives lot

of general and business information. Where

as adaptability , use of influence strategy

and ambiguity traits are high among the

female when compare to male among the



sample respondents. It may is due to shift of

family and new culture adaptation due to

marriage gives some amount of confidence

in dealing with new people and tactics to

handle different situations in the regular

family life.

Major Findings

1. The distribution of sample between male

and female is 60.18:39.82.It shows that

majority of the respondents in the

sample are male and conducting

business. It also indicates the need for

encouraging women entrepreneurs.

2. The age composition of the sample

consists of 36.33 of the business men are

belongs to 40-50 years age group. 31.38

percentage of businessmen belongs to

30-40 years age group. The least

percentage of 14.5 percent of business

men belongs to 20-30 years age group. It

is quite appreciable to have a matured

people managing the business.

3. 52.29 Percentage of the sample

respondents having Post Graduation

Qualification among the businessmen,

only 10.83 Percentage represents the

higher secondary qualification. It is

inferred that majority of the business

men is qualified and doing business

either as ancestral or as a self

employment.

4. Entrepreneurs initiated their ventures

with less than three lakh Rupees. It

represents their SMEs may not requires

huge amount of capital investment.

Majority of the SMEs are labor intensive

units. An entrepreneur should have high

level and emotional balance,

interpersonal skills and personality to

deal with people in an organization. It is

inferred that the success of SMEs

depends on the soft skills of an

entrepreneur that the capital and

Technology factors.

5. The distribution of entrepreneurs among

the sample clearly indicated the even

distribution of the entrepreneurs at all

levels in their business. It is inferred that

the growth in number of entrepreneurs is

constantly growing along with the

growth of the economy. It is appreciable

factors in the growth of entrepreneurship

in the country. Entrepreneurship has the

capacity to solve majority of the

economic issue of a society like

production, supply, employment

generation, controlling inflation and

attaining self sufficient in the production

of goods and services received by an

economy.

6. Since P- Value is less than 0.01, the null

hypothesis, There is no significant

difference between gender with regard to

the dimension of Initiative traits,



traits and overall entrepreneurial traits

among the businessmen is rejected at 1%

level of significance. The difference

between the gender with regard to the

dimension of Initiative traits,



traits and overall entrepreneurial traits

are exists among the businessmen.

Conclusion

Entrepreneurship is a personal desire

and inner passion. It can be groomed but

cannot be initiated. Entrepreneurial

awareness can be a promotional strategy



to boost up the entrepreneurship among

the individuals in a society. The

strategies followed in the development

of entrepreneurial spirit among the youth

in a society should be in a position to

bring out the maximum characteristics

and it must be explored to bring out their

talents. This exercise can able to mould

good entrepreneurs and to in turn they

can be role models to others in

conducting the business. The success

achieved by them can be a land mark or

a benchmark and eye opener to other

entrepreneurs. The route map for this

should start from the school education.

Each individual should have awareness

of entrepreneurship and its level of

importance to the modern society.

References

a) Brockhaus, R.H. and P. Horwitz,

1986. The psychology of the

entrepreneur, in: Sexton, D.L. and

R.W.Smilor (eds.), The Art and

Science of Entrepreneurship,

Cambridge, Mass: Ballinger

Publishing Company, 25-60.

b) Boter, H., & Holmquist, C. 1996.

Industry characteristics and

internationalization processes in

small firms. Journal of Business

Venturing, 11: 471-487.

c) Baum, J. R. and Locke, E. A. (2004)

‘The Relationship of Entrepreneurial

Traits, Skill, and Motivation to

Subsequent Venture Growth’,

Journal of Applied Psychology

89(4): 587–98.

d) Caird, S., 1992 Problems with the

identification of enterprise

competencies and the implications

for assessment and development,

Management Education and

Development 23 (1), 6-17.

e) Carland, J. A. & Carland, J. W. 1991

an empirical investigation into the

distinctions between male and

female entrepreneurs and managers.

Small Business Journal, 9(3), 62-72.

f) Carree, M.A., Stel, A.J. van, Thurik,

A.R. and A.R.M. Wennekers, 2002.

Economic development and business

ownership: an analysis using data of

23 OECD countries in the period

1976-1996, Small Business

Economics 18,

g) Chell, E., J.M. Haworth and S.A.

Brearley, 1991. The Entrepreneurial

Personality: Concepts, Cases and

Categories, London: Routledge.

h) Cromie, J. and S. Johns, 1983. Irish

entrepreneurs: some personal

characteristics, Journal of

Occupational Behaviour 4, 317-324,

i) E.Chell, J.Hawroth and S.Brearley,

the Entrepreneurial Personality:

Concepts, Cases and Categories

(London: Routledge, 1991).

j) Frese, M., Brantjes, A. and Hoorn,

R. (2002) ‘Psychological Success

Factors of Small Scale Businesses in

Namibia: The Roles of Strategy

Process, Entrepreneurial Orientation

and the Environment’, Journal of

Developmental Entrepreneurship

7(3): 259–82.

k) Gibb, A.A., 1987. Enterprise culture:

Its meaning and implications for

education and training, Journal of



European Industrial Training 11 (2),

3-38.

l) Gibb, A.A., 1993. The enterprise

culture and education. Understanding

enterprise education and its links

with small business,

entrepreneurship and wider

educational goals, International

Small Business Journal 11 (3), 11-

34.

m) Gibb, A.A., 1998. Entrepreneurial

core capacities, competitiveness and

management development in the 21st

century, Keynote speech at the

Internationalizing Entrepreneurship

Education and Training 8th annual

conference, July 26-28th, European

Business School, Oestrich-Winkel

Germany.

n) Hisrich, R. D. (1990)

‘Entrepreneurship/Intrapreneurship’,

American Psychologist 45(2): 209–

22.

o) Kourilsky, M.L., 1990.

Entrepreneurial thinking and

behavior: what role the classroom?

In: C.A. Kent (ed.), Entrepreneurship

Education: Current Developments,

Future Directions, New York:

Quorum Books, 137-153.

p) Kihlstrom, Richard and Jean-Lacque

Laffont. 1979. A General

Equilibrium Entrepreneurial Theory

of Firm Formation Based on Risk

Aversion. The Journal of Political

Economy. 87(4): 719-749.

q) Lafuente, A. and Salas, V. (1989)

‘Types of Entrepreneurs and Firms:

The Case of New Spanish Firms’,

Strategic Management Journal

10(1): 17–30.

r) Masters, R. & Meier, R. 1998. Sex

differences and risk taking

propensity of entrepreneurs. Journal

of Small Business Management,

26(1), 31-35.

s) McClelland, D.C, 1965a. Need

achievement and entrepreneurship: a

longitudinal study, Journal of

Personality and Social Psychology

(1), 4, 389-392.

t) McClelland, D.C., 1965b.

Achievement motivation can be

developed, Harvard Business Review

43 (6), 6-24.

u) Miner, J. B., Smith, N. R. and

Bracker, J. S. (1994) ‘Role of

Entrepreneurial Task Motivation in

the Growth of Technologically

Innovative Firms: Interpretations

from Follow-Up Data’, Journal of

Applied Psychology 79(4): 627–30.

v) P.F.Drucker, Innovation and

Entrepreneurship

(London:Heinemann,1985),

w) Risk taking propensity among

entrepreneurs, small business

owners, and managers. Journal of

Business and Entrepreneurship, 7(l):

15-23.

x) Remus, W. 1986. Graduate students

as surrogates for managers in

experiments on business decision

making. Journal of Business

Research, 14, 19-25.

y) Sexton, D. L., & Bowman, N.

B.1983. Comparative

entrepreneurship characteristics of

students: Preliminary results. In J.



Hornaday, J. Timmons & K. Vesper

(Eds.), Frontiers of entrepreneurship

research (213-232).

z) Schumpeter, J.A., A Theory of

Economic Development, New York:

Oxford University Press, 1934

aa) S.Cromie, 1987. Motivation as

Aspiring Male and Female

Entrepreneurs’, Journal of

Organizational Behaviour vol-8;

251-261.

bb) Thurik, A.R. 1996. Small firms,

entrepreneurship and economic

growth. In: P.H. Admiraal (ed.),

Small Business in the Modern

Economy, Oxford: Basil Blackwell

Publishers, 126-152.

cc) Wayne H. Stewart, Jr., Clemson

University Joann C. Carland and

James W. Carland, 1999. Is risk

taking propensity an attribute of

entrepreneurship? A comparative

analysis of instrumentation,

Academy of Entrepreneurship

Journal, Volume 5, Number 2.

dd) Wiklund, J. (1999) ‘The

Sustainability of the Entrepreneurial

Orientation-Performance

Relationship’, Entrepreneurship

Theory and Practice 24(1): 37–48.

ee) Wiklund, J. and Shepherd, D. (2005)

‘Entrepreneurial Orientation and

Small Business Performance: A

Configurational Approach’, Journal

of Business Venturing 20(1): 71–91.

Biography


Business Administration, Annamalai

University.



Introduction

India has approximated median

denomination inhabitants of 250 million of

which only 70 million are insured. Insurance

in India is now a US$ 7.5 billion industry

and is poised to grow at a rate of 20% per

year as the industry is privatized and opened

to the participation of foreign companies. In

spite of the fact that insulated from direct

foreign investment in its insurance sector

until recently, India has set amelioration in

course through the Insurance Regulatory

Development Act (IRDA) which was made

official by the Indian Parliament in late

1999. After studying this lesson, the

professional will be able to grasp the current

trends that are going to affect the Health

Insurance sector and its impact on the health

status of the society. In the present paper I

tried to explain the role of IRDA, and its

influence on the Insurance sectors. The

professional can rate highly the role of

Health Insurance sector in improving the

quality of health and emblematic of people

life it is controlled to contribute in future

course of time.

There is an ocean of transformation

come to pass and going to occur in the

Health Insurance sector, both sublunary and

sovereign. Globally, with noteworthy

reference to the increasing cost etc., many

large insurance companies are planning to

buy up hospitals and run on their won. The

experiments are going on. As a result of

which many private organizations, corporate

sector leaders drafted plans to enter in to

Health Insurance field. There is little or no

surprise to note that the Mediclaim is

absolutely not the answer to the health care

needs of the one billion people of this

country. And Apollo Group under the great

visionary chairmanship of Dr. Pratap C.

Reddy, who also pioneered the idea way

back in 1980's, is preparing to make its

presence felt substantially. Given the

pressure on the Public health care

distribution system and the general shortage

of resources being capable by government,

private health care and in turn the Private

Insurance companies have large business

potential.

What the country today lacks is a far-

reaching health care policy to improve the

infrastructure in the health sector. This will

lead to an improvement in the health care

segment and will also enable Insurance

companies to extend health insurance cover

to a larger segment of the population. If

there are insufficient numbers of quality

hospitals where the policyholders can be

treated, then the number of policies issued

will have to be limited. The health care

infrastructure can also grow to some extent

on the performance of the health Insurance

sector, both directly and indirectly.

Health insurance current scenario

The New health Insurance players can

look towards a substantial portion of the

200-300 million strong middle classes for

health insurance business. This will in turn

provide a fillip to the growth of the health

HEALTH INSURANCE SECTOR IN INDIA

C.Babu Sundararaman* Dr.V.Sachithanantham**



care delivery system, both qualitatively and

quantitatively. The poor who are not in a

position to pay the premiums demanded by

the private players will have to be looked

after by the public health care system till

they graduate to the premium paying stage.

The government can help in relieving some

burden on the poorer sections of the society.

It is important to note that the private

companies should be very cautious in

preparing the organization and the executive

channels to take care not to allow any

possibility of formation or development of a

nexus between the doctors and the

policyholders. The involvement of

experienced and qualified personnel at

various levels of organization would be very

useful, and much more so if it is a medical

doctor. It is also necessary to develop

systematic structures to provide preventive

health care and also too early detection of

disease processes, to the policyholders. This

aspect can help the insurer to contain the

futuristic expenditure, as well as the risk

management.

Since after the nationalization few

decades ago, and now opening up of the

Insurance sector to private players,

particularly with foreign players (partial

participation) the people of India

particularly the middle class (about 200-300

million strong) are looking for a bright

future and security through the insurance

sector. This futuristic hope and expectations

are more evident in the field of health

Insurance sector, mainly due to the

escalating medical care. Hence Health

Insurance and its need for appropriate

development in all respects is a must now

and for future. The role of IRDA is going to

be very important in monitoring the

activities of insurance at large.

% of growth of health insurance over the

years

Year Amount

(Rs. In crores)

% of growth

2006-2007 3210 14.45

2007-2008 5110 59.20

2008-2009 6634 29.82

2009-2010 8305 25.68

2010-2011 11480 38.22

2011-2012 13345 16.24

Projections for health insurance portfolio

All figures Rs. Crores

Year If

growth

is 12%

If

growth

is 20%

If

growth

is 30%

If

growth

is 60%

2011-

12 13345 13345 13345 13345

2012-

13 14946 16014 17348 21352

2013-

14 16740 19217 22553 34163

2014-

15 18749 23060 29319 54661

2015-

16 20999 27672 38115 87458

2016-

17 23519 33207 49549 139932

2017-

18 26341 39848 64414 223892



IRDA and health insurance

We to-day ready to face such

challenging situation, provided we act fast

and keep pace. Keep up to date. The medical

science is subliminal self growing and

developing fast and very fast. And as such

the concepts and functioning of Health

Insurance also varies. The current trend in

the practice of medical profession, e.g.

Defensive medicine is going to tell upon the

Health Insurance sector too. However the

IRDA is going to be an effective regulator of

all activities and also acts as a guiding

principle in almost every activity.

It is only appropriate to consider here,

that the opening up of the insurance sector

has raised high hope among people both in

India and abroad. There are high

expectations about how private insurer will

fulfill the aspirations of the customers

(clients or the insured) in India by catering

to all types of Health insurance including

Managed Health care. But the pace at which

the privatization modalities, viz., granting of

licenses and starting of the insurance

operation in the last one year has begun to

dilute those expectations. Some of the major

Health insurance players of the world like

Cigna; Aetna and others are still watching

the Indian Insurance market from the fence.

Others, who have got the license for the

general insurance, are not too keen or

enthusiastic about the Health insurance,

particularly about the Managed Health Care.

If the insurance reforms do not cater to the

acute need of the customers for Health care,

the rationale for opening the insurance

sector to competition may be at state.

Hence it is necessary that both the

IRDA and the private Insurance should

move in quickly to promote the Health

Insurance among the needy. Considering the

current trends, that are expected to take

shape shortly, the private players are

expected to consider seriously The Managed

Health care systems to look after their

clients. As a result the third party

Administrators (TPAs) are now going to

become a main stay of the Health Insurance

Industry. The IRDA has notified the draft

regulations are briefly as follows.

1. Third party administrators will be

allowed to enter into agreement s with more

than one insures for reducing health

insurance services; but as TPAs they are

barred from becoming directors of an

insurance company, insurance agents, or an

intermediary.

2. The TPA will be required to start

with a minimum working capital of Rs. One

Crore.

3. The license will be renewed every

Third year by the IRDA.

4. TPAS would also have to maintain

and report to the IRDA on transaction

carried out on behalf of the insurer. But this

would not include trade secrets, including

identity and addresses of policyholders.

5. The IRDA has also drawn up a

code of conduct' for the TPAs refraining

them from trading in information,

submitting wrong information to insures and

making advertisement s without prior

approval of the insurer among other things.

6. A TPA also has to undergo a

training of minimum three months in the

field of Health insurance and have access to

competent medical professionals to advise

the insurance companies and the client on

various matters.



7. The TPA has to spell out the scope

of services that it will deliver, while getting

in to an agreement with an insurance

company. The above draft guidelines are

open for suggestions till, to develop the

guidelines keeping in view to develop them

further to the local requirement, and the final

regulations will be published after wards.

Health care in India

The IRDA is shortly coming out with

norms for the policyholder’s protection and

also TPAs for the Rs. 90,000 crore Health

Insurance Sector by the end of April 2011

(vide supra). According to IRDA chairman,

TS Vijayan, the regulators are in the process

of drafting several norms and it would be

Coun

try

Per capita

income GNP

Per capital total

health

expenditure

% of GNP Public sector Health

expenditure per

capital

% of Total Health

Expenditure public

sector

Private sector Health

Expenditure per capital

% of T.H.E.

Private sector

1 2 3 4

3/2

5 6

5/3

7 8

7/3

Ko

rea

2,3

70

148

.37

5.1

17.8

7

12

130

.49

88

Ma

lay

s

ia

1830

58.5

1

3.5

44.9

7

77

13.5

3

23

Th

ail

an

d

810

32.7

9

3.8

9.9

4

30

22.3

8

73

pa

pu

a

720

26.1

8

3.8

23.6

8

91

2.4

9

9

Ph

ilip

pi

n

560

14.0

9

2.4

3.7

6

27

10.3

3

7.3

Ind

on

esi

490

10.4

2

2.4

3.9

37

6.5

2

63

Sri

lan

k

a 40

0

9.1

8

2.3

5.3

2

58

3.8

5

42

Ch

ina

30

0

11

.04

4

2.1

3

19

8.9

1

81

Ind

ia

29

0

12

.51

4.3

4.6

3

37

7.8

7



ready by the end of April 2011. Although

TPAs initially wanted marketing rights of

insurers, he said there has been some

amount of understanding between the

insurers and TPAs to develop the health

insurance sector. As mentioned

earlier, the IRDA sources said that the health

insurance sector in India was estimated at

Rs. 90,000 crore and is, expected to grow by

ten percent every year. The TPAs,

which may be hospitals or other agencies,

can accelerate this growth rate by assisting

insurers through faster claim settlement,

quality hospital services etc. The

following data indicates the status of select

Asian Countries, with reference to their

National incomes and their Health

expenditure both in public and private

sectors. The data shows the need for an

insight in to the Health care expenditures of

those countries and also the necessary steps

that may have to be taken to improve the

health status of their people. The data may

also suggest the improvements that can be

envisaged through The Health Insurance

sector. It is also hoped that the efficient and

active Health Insurance management may

bring down the per capita expenditure on

Health, both at an individual and group

level.

National Income and Health expenditure

of Select Asian Counties (in US Dollars)

Conclusion

India's Health Insurance sector aims

to harmonize the Indian economic and

accounting system with international

standards of capital adequacy, prudential

regulations, and accounting and disclosure

standards. In the past few years, the

worldwide trend of consolidation and

convergence has also begun to manifest

itself in the Indian insurance industry. New

technology has had significant impact on

India's health insurance sector as new

private sector hospital and foreign

collaboration hospitals offer customers the

option for better health.

References

a) Ahluwalia, Isher J., Industrial Growth in

India: Stagnation since the mid-sixties,

Oxford University Press, New Delhi,

1995.

b) Ahluwalia, Montek S., India's Economic

Reforms: An Appraisal, in Jeffrey Sachs

and Nirupam Bajpas (eds.), India in the

Era of Economic Reform, Oxford

University Press, New Delhi, 2000.

c) Bhagwati, J., and Srinivasan, T.N.,

Outward-Orientation on Development:

Are the Revisionists

d) Davis, Jeffrey, Rolando Ossowski,

Thomas Richardson, and Steven Barnett,

Fiscal and Macroeconomic Impact of

Privatization, IMF Occasional Paper

194, (2000).

e) Dev, Mahendra S., and Jos Mooli, Social

Sector Expenditures in the 1990s:

Analysis of Central and State Budgets,

Economic and Political Weekly, March

2, 2002.

f) Dreze, Jean, and Amartya Sen,

Economic Development and Social

Opportunities, Oxford University Press,

New Delhi (1995).

g) Ministry of Finance Economic Survey

2001-02, New Delhi 2002.

h) Parikh, Kirit S, "Social Infrastructure: an

important Physical Infrastucture",



Chapter 7 of India Development Report,

Oxford University Press 2002.

i) Planning Commission, Report of the

Advisory Group on Tax Policy and Tax

Administration for the Tenth Plan, 2001.

j) Reddy and S.S. Tarapore (editors),

Oxford University press

Biography

* Assistant Professor, Dept. of Business

Administration, DDE, Annamalai

University.

**Associate Professor, Dept. of Bunisess

Administration, DDE, Annamalai

University.



Introduction

India, was a major importer of sugar

at the time of independence which at the

beginning of the first five year plan was

having only called capacity of 15 lakh tons

of sugar production, is today one of the best

producers of sugar in the world . India’s

sugar production is next to oil and the EU

and the co-operatives are the major

contributors to it.India, the original home of

sugar and sugarcane still retains supremacy

in the sugar industry. The growth of the

sugar industry is full of tales of adventure

and conquest. India is the second major

sugar producing country in the world, the

first being Brazil. Historically, it is thought

that the modern process of sugar

manufacture was introduced in the west as

early as in 1853. During 2003-04, the Indian

co-operative sugar factories produced 21.45

lakh tones and 263.43 lakh tones during

2012 -2013 period.

The sugar industry is providing

employment to 50 million sugar cane

farmers and their families in rural India. 7.5

per cent of the rural population is directly or

indirectly connected with the sugar industry.

Five lakh out of these skilled and semi-

skilled workers are employed directly with

the sugar factory. The industry, with a the

total turnover of around Rs.30, 000crores,

contributes Rs.1, 800crores annually to the

national exchequer and treasuries of the

various state governments by way of excise

duty and purchase tax on sugarcane.Sugar

Industry in Tamil Nadu is an important

agro-based industry next to textile industry.

It plays a vital role in the economic

development of the State and particularly in

the rural areas. There are 43 sugar mills

functioning at present in Tamil Nadu, of

Mr. S. Muralitharan* Dr.T.Srinivasan**

OPERATIONAL PERFORMANCE OF COOPERATIVE SUGAR MILLS IN

TAMILNADU AN OVERVIEW

The sugar industry is providing employment to 50 million sugar cane farmers and their

families in rural India. The sugar industry in Tamil Nadu is an important agro-based

industry next to textile industry. It plays a vital role in the economy development of the state

and particularly in rules areas. The operational problems lead to sickness in co-op sugar

mills. Therefore, the present study focuses on the operational performance with respect to

the sugar cane crushed, fluctuations during the crushing season, sugar recovery rate and

sugar production in the co-operative sugar mills Tamil Nadu. Hence the present study has

greater significance and its findings will be of great value to the policy framers, mill

administrators and different stakeholders.



which 16 are in the co-operative sector,

and25 in the private sector.

Apart from this, the Tamil Nadu

Sugar Corporation Limited, a public sector

company set up in 1974 under the

Companies Act, is running two public sector

Sugar Mills. The total crushing capacity of

the 43 factories in Tamil Nadu is 1, 47,800

tones crushing per day (TCD) and about 229

lakh tones per annum.During 2003-2004

crushing season, 166.45 lakh tons of cane

was crushed and 16.44 lakhs tons of sugar

was produced with an average recovery of

9.92%. In addition, private mills produced

2.08 lakh tons of sugar from imported raw

sugar. During 2012-2013 crushing season all

the mills crushed about 254.55 lakhs tons of

cane and produced 23.79 lakh tons of sugar

with an average recovery of 9.35 per cent.

The utilization of crushing capacity

for 2003-2004 seasons was to be 58%

against 64 per cent of 2012-2013seasons. In

the 2003-2004 seasons the crushing was

undertaken only in 14 co-operative and two

public sector sugar mills. The cane crushed

was 28.05 lakh tones with an output of 2.78

lakh tons of sugar. For the 2012-2013

crushing season, it is envisaged that out of

the 18 co-operative/ public sector sugar

mills, only 16 sugar mills could crush. As on

15.03.2013 these mills have crushed 2.75

lakhtons of cane and produced 23.79

lakhtons of sugar with an average recovery

of 9.96%. In Tamil Nadu, Sugarcane is

cultivated in around 3.50 lakh hectares

which is 5% of the total cultivable area.

During 2012-13 sugar seasons, the

sugarcane crop is cultivated in 3.95 lakh

hectares in the State and the total estimated

sugarcane production is 422.20 LMT. The

cane drawls rate expected for the 2012-13

sugar season was 50-55%. For the 2013-14

sugar seasons, it is planned to increase the

sugarcane production to 500 LMT and to

increase the cane drawl rate to 60-65%.

Statement of the problem

Majority of the co-operative sugar

mills in Tamil Nadu were making profits

until 1992-93. However these mills started

incurring losses from the year 1993-94 due

to various factors. These mills are facing

difficulties like, the operational constraints,

shortage of sugar cane, obsolete

technologies, low recovery rate, under

capacity utilization, shrinkage in the area of

sugarcane, time loss and financial

constraints like payment of state advised

high cane price, high interest burden, high

cost of production, reduction in sugar selling

price and taxes on sugar mills. Shortage of

sugarcane is one of the major problems of

co-operative sugar mills. As per the crushing

capacity, almost every sugar mill requires

sugarcane at least for 172 days. But at

present it is known from the field survey that

the availability is sufficient only for 120

days. Therefore the co-operative sugar mills

are not able to utilize their capacity to the

fullest level.

Most of the co-operative sugar mills

are not properly maintaining their

machineries. In addition they adopt only the

traditional technology which gives only poor

result. Updating latest technologies in co-

operative sugar mills is absolutely absent.

The cane growers are very much reluctantto

grow high yielding varieties due to the fear

of attack of red-rot disease. Hence they

provide only the conventional varieties of

sugar cane which resulted in low recovery



and also increased the cost of production. In

addition to these constraints there is yet

another reason which affects the output of

co-operative sugar mills. That is the

declining supply of sugar cane by the

growers. The cane growers normally do not

get sale proceeds within the stipulated

period from the co-operative sugar mill.

Therefore they shift to other cash crops.

Absence of adequate experienced technical

personnel has adverse impact on the

productivity of co-operative sugar mills.

Normally, for maintenance and for related

purposes, the production is stopped. Only

two per cent of the total time should be

availed for these purposes as per the norms

of Indian Sugar Mills Association (ISMA).

But in practice eight to 10 per cent of

available time is wasted on various grounds.

Hence these operational problems lead to

sickness in co-operative sugar mills.

Therefore the present study focuses on

operational performance of the co-operative

sugar mills of Tami Nadu.

Need for the Study

The performance of co-operative

sugar mills has wider ramifications for many

different stakeholders like cane growers

(397854), regular employees (4927) and

seasonal employees (2934), numerous

customers, ancillary units, members in

supply chain and the general public in

different degrees. Hence the present study of

performance analysis has greater

significance are the findings of the study are

supposed to be of greater value topolicy

framers, mill administrations, and other

stakeholders.

Objectives of the Study

The following are the specific objectives of

the study:

1. To review the background of co-

operative sugar mills in India and Tamil

Nadu

2. To evaluate the operational performance

of co-operative sugar mills in Tamil Nadu.

3. To offer suitable suggestions for

improving the operational performance of

those co-operative sugar mills.

Methodology

The present study is mainly

analytical in nature and hasanalysedthe

operational performance of co-operative

sugar mills under review.

Universe

There are 16 co - operative sugar

mills functioning in Tamil Nadu. Name,

location, installed capacity and date of

commencement are presented in the

following table 1.

TABLE - 1

Details of Co-operative Sugar Mills in Tamil

Nadu

Name of the

sugar mill Location

Year of Establishme

nt

Daily

crushing

Capacity (M.T/Day)

1

Ambur

Co-op

sugar

mill

Vadapud

upet,

Vellore

(D.t)

1960-

61 1400

2

Amaravat

hy Co-op

sugar

mill

Krinapur

am,Tripu

r (D.t)

1959-

60 1250



3

Chengalr

ayan Co-

op sugar

mill

Periyasev

elai,Villu

puram

(D.t)

1980-

81 3000

4

Cheyyar

Co-op

sugar

mill

Anakkka

voor,Thir

uvannam

alai (D.t)

1990-

91 2500

5

Dharmap

uri Co-op

sugar

mill

Palacode,

Dharmap

uri (D.t)

1971-

72 2000

6

Kallakurc

hi -I Co-

op sugar

mill

Moongilt

huraipatt

u,Villupu

ram (D.t)

1966-

67 2500

7

Kallakurc

hi -II Co-

op sugar

mill

Kachirap

alayam,V

illupuram

(D.t)

1997-

98 2500

8

M.R.K

Co-op

sugar

mill

Sethiyath

ope,Cudd

alore

(D.t)

1989-

90 2500

9

Madurant

akam Co-

op sugar

mill

Padalam,

Kanchee

puram

(D.t)

1960-

61 2500

10

N.P.K.R.

R Co-op

sugar

mill

Thalaina

yar,Naga

pattinam

(D.t)

1986-

87 3500

11

Salem

Co-op

sugar

mill

Mohanur,

Nammak

kal (D.t)

1963-

64 2500

12

Subrama

niyasiva

Co-op

sugar

mill

Gopalapu

ram,Dhar

mapuri

(D.t)

1991-

92 2500

13

National

Co-op

sugar

mill

B.Mettup

atti,Madu

rai (D.t)

1966-

67 2500

14

Triupattu

r Co-op

sugar

mill

Kethanda

patti,Vell

ore (D.t)

1977-

78 1250

15

Tiruttani

Co-op

sugar

mill

Thiruvala

ngadu,Tir

uvallur

(D.t)

1984-

85 2500

16

Vellore

Co-op

sugar

mill

Ammund

i,Vellore

(D.t)

1976-

77 2500

TOTAL

37400

Source: Department of sugar, 2012

Sampling

The co-operative sugar mills are

classified under three categories, namely,

Small, Medium and Large based on their

size. The mill that has a capacity of 2000

TCD is taken as a small size mill. The mill

that has a crushing capacity between 2001

and 2999 TCD is taken as medium size

mill.A mill that has 3000 TCD capacity is

treated as a large size mill. There are four

mills thatcomeunder the small size category

out of which,Amaravathy sugar mill dose

not provided the required data. Hence this

mill does not select for the study. Of the

remaining three mills twocome under large

size namely, Chengalrayan and N.P.K.R.R

sugar mills. Both these mills have been

selected for the study period.There are 10

mills coming under medium size, out of

which Kallakurchi-I and National sugar

mills havenot provided the required data.

Hence these two mills were not taken in to

the presentstudy. 50 per cent of the

remaining eight medium size sugar

millswere purposefully selected for the



present study. Hence, four mills were

selected from medium size mills.The

selected sample mills are presented in the

following table 2.

TABLE – 2

Sample Design

TOTAL CO-OP SUGAR

MILLS SAMPLE MILLS

Small size Small size

1

Ambur Co-op sugar

mill

Ambur Co-

op sugar

mill

2

Amaravathy Co-op

sugar mill

Dharamapur

i Co-op

sugar mill

3

Dharamapuri Co-op

sugar mill

Tirupattur

Co-op sugar

mill

4

Tirupattur Co-op

sugar mill

Medium size

Medium

size

5

Cheyyar Co-op

sugar mill

Kallakurchi

Unit-II Co-

op sugar

mill

6

Kallakurchi Unit-I

Co-op sugar mill

Salem Co-

op sugar

mill

7

Kallakurchi Unit-II

Co-op sugar mill

subramaniy

asiva Co-op

sugar mill

8

M.R.K Co-op sugar

mill

Vellore Co-

op sugar

mill

9

Madurantakam Co-

operative sugar mill

10

Salem Co-op sugar

mill

11

subramaniyasiva

Co-op sugar mill

12 National Co-op

sugar mill

13

TirutanniCo-op

sugar mill

14

Vellore Co-op sugar

mill

Large size Large size

15

Chengalrayan Co-op

sugar mill

Chengalraya

n Co-op

sugar mill

16

N.P.K.R.R Co-op

sugar mill

N.P.K.R.R

Co-op sugar

mill

Hence the present study

covers only nine co – operative sugar mills.

Period of the Study

The present study analyses the

operational performance of selected co-

operative sugar mills, for which the

secondary data was collected for 10 years

from 2003 -2004 to 2012-13.

Collection of Data

The required secondary data was

collected fromthe records of the selected co-

operative sugar mills.

Tools used for analysis

The researcher has applied the

following tools for analysing the collected

data: Mean, Simple percentage, Standard

deviation, Co-efficient Variation, Annual

Growth Rate, andCompound Growth Rate.

Limitation of the study

1. The study concerned only nine operating

co - operative sugar mills in Tamil Nadu.

2. The study mainly focused on the

operational performance of co-operative

sugar mill in Tamil Nadu. The financial

performance of the selected co- operative

sugar mills was not analyzed.



3. The study does not reflect any general

phenomenon of private and public sugar

mills In Tamil Nadu.

Operational Performance Of Co- Operative

Sugar Mills Analysis And Findings

The operational performance of co-

operative sugar mills were analysed under

four different headings namely;

1. Sugar Cane Crushed

2. SugarCane Crushing Season

3. Sugar Recovery Rate

4. Sugar Production

1. Sugar Cane Crushed

The position of the state of Tamil

Nadu with respect to the cane crushed by co-

operative sugar factories comparedto the all

India during 2003- 04 to 2012-13 is

presented in table 3.

Table-3

Sugar Cane Crushed In India-Relative

Position Of Tamil Nadu During 2003-04

To 2012-13(In 000 tonnes)

Y

e

a

r

All India Tamil Nadu

All

mil

ls

AG

R

Co

op

ill

s

AG

R

Sh

are

ofC

o-o

p

mil

ls

AG

R

All

mil

ls

AG

R

Co

op

mil

ls

AG

R

Sh

are

o

f C

o-o

p

mil

ls

AG

R

2003 -

04

13

25

11

-

57

13

6

-

43

.12

-

92

82

-

23

48

-

25

.30

-

2004 -

05

12

47

72

94

.16

43

99

8

77

.01

35

.26

81

.78

11

49

2

12

3.8

1

25

98

11

0.6

5

22

.61

89

.37

2005– 0

6

186672

149.6

1

76045

172.8

4

40.7

4

115.5

2

23185

201.7

5

5317

204.6

6

22.9

3

101.4

4

2006– 0

7

27

92

95

14

9.6

2

12

13

77

15

9.6

1

43

.46

10

6.6

8

27

45

2

11

8.4

0

75

94

14

2.8

2

27

.66

12

0.6

2

2007 -

08

24

99

06

89

.48

10

83

68

89

.28

43

.36

99

.78

22

97

0

83

.67

56

75

74

.73

24

.71

89

.31

2008 -

09

14

49

83

58

.02

60

48

0

55

.81

41

.72

96

.20

16

60

6

72

.29

42

68

75

.21

25

.70

10

4.0

3

2009 -

10

185

54

8

127

.98

794

26

131

.33

42.8

1

102

.62

143

28

86.2

8

31

95

74.8

6

22.3

0

86.7

6

2010 -

11

239807

129.2

4

101233

127.4

6

42.2

1

98.6

2

20310

141.7

5

3934

123.1

3

19.3

7

86.8

6

2011 -

12

256975

107.1

6

93968

92.8

2

36.5

7

86.6

2

25455

125.3

3

4390

111.5

9

17.2

5

89.0

4

2012

-13

248515

96.7

1

92729

98.6

8

37.3

1

102.0

4

26713

104.9

4

4724

107.6

1

17.6

8

102.5

4

Tota

l

2048984

834760

406.5

6

197793

44043

225.5

1

Mea

n

20

48

98

.4

83

47

6

40

.66

19

77

9.3

44

04

.3

22

.55

SD

57

10

6.3

3

24

53

9.8

9

3.1

0

64

96

.83

9

15

60

.54

3.5

0

CV

27.8

7

29.3

9

7.6

2

32.8

5

35.4

3

15.5

3



Source: Co-operative sugar, Vol. 46 No. 7,

March, 2013 p.47.

The average sugar cane crushed at

the national level was 204898.4 MTs. It was

observed that the sugarcane crushed had

increased at an average of 7.62 percent at

the all India level. The above table shows

the share of co-operatives in total sugar cane

crushing at the all India level during the

period of 2003-04 to 2012-13 which is a

fluctuating trend. Cane crushed by co-

operatives in Tamil Nadu during the period

of 2003-04 to 2012-13 also shows a

fluctuating trend. Compared to the sugar

cane crushed by co-operative sugar factories

at the all India level during 2003-04 (57136

million tons) the capacity increased up to

92729 million tons during 2012-13.

Therefore, the total sugar cane crushed in

India including private, public and

Co-operative sector cane crushed has also

showed uneven trend during the same

period. Co-operatives’ share in total sugar

cane crushed shows fluctuating trend both at

the all India and the Tamil Nadu level. The

table reveals that the sugar cane crushed by

the co-operative sector and their share to

total sugar cane crushed is fluctuating during

the study period.

3. Sugar Cane Crushing Season

During 2003- 04 to 2012-13 duration,

crushing season of sugar factories in the

state of Tamil Nadu as against the average

of India as a whole is presented in table 4.

TABLE-4

Duration Of Crushing Season Of Sugar

Mills In India -Relative Position Of Tamil

Nadu From 2003-04 To 2012-13

(Figures in days)

Y

e

a

r


All

mil

ls

AG

R

Co

op

mil

ls

AG

R

Sh

are

of

Co

-op

mil

ls

AG

R

All

mil

ls

AG

R

Co

op

mil

ls

AG

R

Sh

are

of

Co

-op

mil

ls

AG

R

2003 -

04

99

- 88

-

88.8

9

-

111

- 78

-

70.2

7

-

2004 -

05

97

97.9

8

80

90.9

1

82.4

7

92.7

8

143

128.8

3

85

108.9

7

59.4

4

84.5

9

2005-

06

125

128.8

7

113

141.2

5

90.4

0

109.6

1

234

163.6

4

170

200.0

0

72.6

5

122.2

2

2006

- 07

173

138.4

0

175

154.8

7

101.1

6

111.9

0

265

113.2

5

238

140.0

0

89.8

1

123.6

2

2007 -

08

149

86.1

3

155

88.5

7

104.0

3

102.8

4

214

80.7

5

179

75.2

1

83.6

4

93.1

3

2008 -

09

87

58.3

9

91

58.7

1

104.6

0

100.5

5

165

77.1

0

135

75.4

2

81.8

2

97.8

2

2009 -

10

109

125.2

9

117

128.5

7

107.3

4

102.6

2

142

86.0

6

108

80.0

0

76.0

6

92.9

6

2010 -

11

135

123.8

5

143

122.2

2

105.9

3

98.6

8

172

121.1

3

126

116.6

7

73.2

6

96.3

2



2011 -

12

137

101.4

8

137

95.8

0

100.0

0

94.4

1

202

117.4

4

141

111.9

0

69.8

0

95.2

9

2012-1

3

139

101.4

6

138

100.7

3

99.2

8

99.2

8

196

97.0

3

138

97.8

7

70.4

1

100.8

7

Aver

age

125

124

98.4

1

184

139

74.7

2

SD

26.8

3

31.2

3

8.3

4

46.7

9

47.3

1

8.5

8

CV

21.4

6

25.2

5

8.4

7

25.3

7

33.8

4

11.4

8

Source: Co-operative sugar, Vol. 46 No. 7,

March, 2013 p.54.

The purpose of the table 4 is to

examine the sugar cane crushing season of

sugar mills in India and Tamil Nadu. An

observation of the above table clearly

reveals that the number of days the sugar

mills operated during the study period, i.e.,

2003-04 to 2012-2013. It is noted that the

cane crushing has recorded a positive

growth though the growth is not uniform in

respect of all sugar mills in general and co-

operative sugar mills in particular at all

India and also at Tamil Nadu level. Both in

India and Tamil Nadu the average crushing

periods of co-operative sugar mills are less

when compared with all sectors sugar mills

in general. The co-efficient of variation

reveals that there is irregular growth in the

crushing seasons in all sectors sugar mills in

general and co-operative sugar mills in

particular. Co-operative sugar mills have

less consistency as compared with total

sugar mills in India as well as in Tamil

Nadu. The share of co-operatives in

crushing days at all India and Tamil Nadu

level during the period of 2003-04 to 2012-

13 shows fluctuating trend. It is an average

of 184 days in Tamil Nadu state for all sugar

mills as against 125 days all India average,

but it is only 139 days in co-operative sugar

mills of Tamil Nadu. Further, a relatively

short duration can be noticed in co-operative

sugar mills in the state during majority of

the years under review. The chief reason for

this phenomenon is the shortage of supply of

sugarcane to feed the crushing capacity of

the factories.

4. Sugar Recovery Rate

The recovery rate of sugar in the state of

Tamil Nadu as against the average of the all

India is presented in table 5.

TABLE - 5

Recovery Rate Of Sugar In Sugar Mills

In India-Relative Position Of Tamilnadu

During 2003-04 To 2012-13(In %)

Y

e

a

r


All

mil

ls

AG

R

Coop

mil

ls

AG

R

All

mil

ls

AG

R

Coop

mil

ls

AG

R

2003 -

04

10.2

2

-

10.5

3

-

9.1

4

-

9.4

1

-

2004 -

05

10.1

7

99.5

1

10.5

8

100.9

7

9.1

4

100.0

0

9.4

0

100.0

0



2005-

06

10.2

1

100.3

9

10.8

8

102.4

3

9.2

4

27.1

8

9.3

8

67.0

0

2006-

07

10.1

6

99.5

1

10.7

0

98.8

3

9.2

5

100.1

1

9.2

5

98.6

1

2007 -

08

10.5

5

103.8

4

11.2

0

100.8

0

9.3

2

100.7

6

9.3

5

101.0

8

200

8 -

09

10.0

3

95.0

7

10.8

5

101.9

0

9.6

2

103.2

2

10.0

0

106.9

5

2009 -

10

10.1

9

101.6

0

10.9

8

99.6

1

8.9

4

92.9

3

9.1

3

91.3

0

2010 -

11

10.1

7

99.8

0

10.7

2

97.8

2

9.0

9

101.6

8

9.1

5

100.2

2

2011 -

12

10.2

5

100.7

9

10.9

4

101.2

6

9.3

5

102.8

6

9.1

0

99.4

5

2012-1

3

10.2

1

99.6

1

10.0

2

91.9

5

9.3

2

99.6

8

9.1

8

100.8

8

Aver

age

10.2

2

10.7

4

9.2

1

10.2

5

SD

0.1

3

0.3

2

0.4

3

1.9

9

CV

1.2

9

2.9

9

4.6

7

19.4

2

Source:Co-operative sugar, Vol. 46 No. 7,

March, 2013 p.55.

An observation of table 5 gives an idea of

annual growth, ranges of sugar recover rate,

which are in between 10% and 11% in the

study period both for all sectors sugar mills

including Co-operative sugar mills in India

and in Tamil Nadu. The progress of

recovery rate of co-operative sugar mills in

India as well as in Tamil Nadu for the last

ten years i.e. during 2003-04 to 2012-13

shows a fluctuating trend.It is clear from the

table that during 2003-04 to 2012-13, the

sugar recovery rate of co-operative sugar

mills and other sector sugar mills in India

marginally decreased by -0.26 per cent. As

evident from the table, the average sugar

recovery rate in India, during 2003-04 to

2012-13 ranged between 10.03 per cent and

10.55 per cent in the case of Co-

operative sugar mills in India. In Tamil

Nadu, it is between 9 per cent and 10

percent. The recovery rate of all sugar

factories in Tamil Nadu during the same

period ranged between 8.94 per cent and

9.62 per cent. The comparative view of the

recovery rates reveals that the state of Tamil

Nadu registered relatively an impressive

recovery rate especially when compared to

the average of co-operative sugar mills in

the state.

5. Sugar Production

Table 6 presents the relative position of the

state with respect to the production of sugar

factories during 2003-04 to 2012-13.

TABLE -6

Sugar Production By Sugar Factories In

India –Relative Position Of Tamilnadu

During 2003-04 To 2012-13

(In 000 Tonnes)



Y

e

a

r

All India Tamil Nadu A

ll m

ills

AG

R

Co

op

ill

s

AG

R

Sh

are

of

Co

-op

ill

s

AG

R

All

mil

ls

AG

R

Co

op

ill

s

AG

R

Sh

are

of

Co

-op

ill

s

AG

R

2003 -

04

13546

-

6015

-

44.4

0

-

921

-

232

-

25.1

9

-

2004 -

05

12691

93.6

9

4653

77.3

6

36.6

6

82.5

7

1108

120.3

0

254

109.4

8

22.9

2

91.0

1

2005–06

19267

151.8

2

8271

177.7

6

42.9

3

117.0

9

2142

193.3

2

499

196.4

6

23.3

0

101.6

2

2006–07

28364

147.2

2

12991

157.0

7

45.8

0

106.6

9

2539

118.5

3

703

140.8

8

27.6

9

118.8

5

2007 -

08

26357

92.9

2

12137

93.4

3

46.0

5

100.5

4

2141

84.3

2

530

75.3

9

24.7

5

89.4

1

2008 -

09

14539

55.1

6

6561

54.0

6

45.1

3

98.0

0

1597

74.5

9

427

80.5

7

26.7

4

108.0

1

2009 -

10

18912

130.0

8

8724

132.9

7

46.1

3

102.2

2

1280

80.1

5

292

68.3

8

22.8

1

85.3

2

2010 -

11

24394

128.9

9

10856

124.4

4

44.5

0

96.4

7

1846

144.2

2

360

123.2

9

19.5

0

85.4

9

2011 -

12

26343

107.9

9

10281

94.7

0

39.0

3

87.7

0

2379

128.8

7

399

110.8

3

16.7

7

86.0

0

2012-1

3

25823

98.0

3

9738

94.7

2

37.7

1

96.6

3

2263

95.1

2

379

94.9

9

16.7

5

99.8

6

Aver

age

21023.6

0

9022.7

0

42.8

3

1821.6

0

407.5

0

22.6

4

SD

5962.4

5

2703.0

2

3.6

4

566.6

2

142.1

7

3.8

4

CV

28.3

6

29.9

6

8.5

0

31.1

1

34.8

9

16.9

6

Source:Co-operative sugar, Vol. 46 No. 7,

March, 2013 p.53.

Table 6 gives data relating to sugar

production by all mills together and co-

operative sugar mills in India and in Tamil

Nadu during the period 2003-04 to 2012-

13.The production of the sugar in India has

increased to 25823 thousand tons in 2012-13

from 13546 thousand tons in 2003-04 with

the CV rate of 28.36 and indicates strong

fluctuations. Sugar produced by all mills in

Tamil Nadu has increased to 2263 thousand

tons in 2012-13 from 921 thousand tons in

2003-04 with the CV rate of 31.11. The

performance of co-operative sugar mills

towards sugar production is showing

increasing trends both in India and in Tamil

Nadu. The CV of sugar production of Tamil

Nadu co-operative sugar mills has more

consistency as compared with the all India

co-operative sugar mills. Tamil Nadu has

more than that of the country’s rate of

growth. In fact, the performance of Tamil

Nadu co-operative sugar mills is good. The

sugar production has a phenomenal increase.



As far as changes in the sugar production are

concerned, it is noticed that the share of co-

operative sugar mills has significantly

improved. A further analysis shows that the

share of the co-operative sugar mills in India

ranged between 35 and 46 per cent but, in

the state of Tamil Nadu co-operative sugar

mills the share ranged between 20 and 30

per cent with respect to all mills sugar

production. It can also be observed that the

share of the Co-operative

sugar mills in the state and in India

production of sugar is more or less constant.

Summary of Findings, Suggestion and

conclusion

Findings

Then, the total sugar cane crushed in

India which is including private, public

and Co-operative sector cane crushed is

also showed uneven trend during the

same period. Co-operatives share in total

sugar cane crushed which shows

fluctuating trend both at all India as well

as at Tamil Nadu level. The revealed that

the sugar cane crushed of

Co-operative sector and share of Co-

operatives to total sugar cane crushed is

fluctuating during the study period.

The share of co-operatives in crushing

days at all India and Tamil Nadu level

during the period of 2003-04 to 2012-13

shows fluctuating trend. It is an average

184 days in Tamil Nadu states for all

sugar mills against 125 days all India

average, but it is only 139 days in co-

operative sugar mills of Tamil Nadu.

Further, a relatively short duration can

be noted in co-operative sugar mills in

the states during majority of the years

under review. The main reason for this

phenomenon is the shortage of

sugarcane to feed the crushing capacity

of the factories.

The recovery rate of all sugar factories

in Tamil Nadu during the same period

ranged between 8.94 per cent and 9.62

per cent. The comparative view of the

recovery rates reveals that the state of

Tamil Nadu registered relatively an

impressive recovery rate especially when

compared to the average of co-operative

sugar mills in the state.

A further analysis shows that the share

of the co-operative sugar mills in India

ranged between 35 to 46 per cent but in

the state Tamil Nadu cooperative sugar

mills share is ranged between 20 to 30

per cent with respect to all mills sugar

production. It can also be observed that

the share of the co-operative sugar mills

in state and in India production of sugar

is more or less constant.

Suggestions

At present co-operative sugar mills

are incurring heavy loss due to the

vulnerable government policies on the

sugarcane procedure and the most of the co-

operative sugar mills are not able to run in

an effective manner. Because of these

reasons the sugar mill are facing a huge

financial burden. Most of the sugar mills

operations are affected due to poor

maintenance, lack of availability of

sugarcane etc. Based on the present study,

the following suggestions are made to

improve the performance of the sugar mills.

They are,

1 Necessaries step has to betaken toincrease

the production of sugar cane.

2. To have control onmaintenance cost.



3. The crushing season should be increased,

4. To increase a recovery rate.

Conclusion

Thus, the study resolute the

operational performance ofthe Co-operative

sugar mills in Tamil Nadu, which is very

humble when compared to Indian sugar

industries. This is due to, in effective control

over the cost incurred during the production

and low recovery of sugar from the

sugarcane crushed. In order to have a better

control over the cost new techniques like

activity based costing can be followed. The

Recovery of sugar can be improved by using

modern machineries, avoidance of stoppage

of machineries and giving yearly loans to

the farmers. Hence, these measures will

improve the production as well as the profit.

Reference

a) Dietmar Achilles (2005), German

Position on EU Reform Proposal for

Sugar Market Regime, Co-operative

Sugar, Vol.36, No.10, June 2005.

b) GroverD.K, and GrewalS.S (1991),

The Problems of Sugar Industry In

India, ViharPublishers, Allhabad

c) HilageV.M. (1989), Performance of

sugar co-operative factories in

Southern Maharashtra, Ph.D. thesis

submitted to Shivaji University,

Kolhapur.

d) MonoharRaoP.J. 2005),Comparative

Performance of cane sugar Industry

in seven countries, Co-operative

Sugar, Vol.37, No.1, September

2005.

e) Pant D.K,SaraswatS.M and Ajay

Mishra (2005), Sugar Industry

Diversification for Value Addition,

Co-operative sugar, Vol.37, No.5,

January 2006.

f) PruthiS. (1995), TheHistory of

Sugar Industry in India, Reliance

publishing house, New Delhi.

g) Ramaswamy, C.,ChadrasekarnB.,

andDuraiR. (2005), Sugar Industry

– A Gamut Scope of it’sBy Products

as Crop Nutrient and Energy

Management,Co-operative Sugar,

Vol.37 No.8, April 2006.

h) Ram VicharSinha (1998), Sugar

Industry in India, Deep & Deep,

publication, New Delhi.

i) SirohiS.S. (2005), The Status of Co-

Operative Sugar Industry in India -

Past, Present and Future, Co-

operative Sugar, Vol.36, No.12,

August 2005.

j) SivaramanM. (2005),Intellectual

Property Rights and Indian

Agriculture, co-operative Sugar, Vol,

30, No11, July 2005.

Biography

* Research Scholar, Dravidian University,

Kuppam, Andhra Pradesh.

** Associate professor, commerce wing,

DDE, Annamalai University, Chidambaram.



In this modern and fast paced era , the

corporate scenario and T20 have become

superfast & rapid in terms of the results and

the outcome .Absolute Commitment ,

infinitely high levels expectations , quick

decision making skills and highly volatile

emotions emerging out of these great

expectations , with reference to the

advanced technology have all become the

thirst for the day. In this changing scenario,

HR personnel will have to accommodate a

tremendous amount of pressure to get itself

accustomed and adapted to this kind of

highly demanding situations . Having

realized these facts and with their all

wisdom and foresight, few corporate

companies have already started viewing and

considering HR as operational HR.

Hitherto, the challenges put-forth

against HR, would be, more on the

supportive functions such as Payroll

processing, Statutory benefit programs and

other employee welfare associated affairs ,

catering to their basic needs. Recently, there

is a sharp surge in the expectation levels of

all the stake holders and their expectations

have become very high. Under these

circumstances , it is incumbent on HR and

the department has to shoulder the utmost

responsibility to keep them all satisfied ,

rather we can say , happy and delighted .

For an effective and operational HR, the

term stakeholders in a broader perspective,

refers not only to the employees of the

Organization but it expands its inclusive

meaning to a cascaded chain of Vendors &

Suppliers, Clients & Customers and of

course the Employer by all its meaning.

The HR process in an Automobile

dealership

A common and more standardized

process flow is adopted in every automobile

dealership , with a slight degree of

alterations in recruiting their employees

.Say for instance , a globally renowned

brand like Volkswagen has got its own

Manpower Assessment Center which

conducts various skill matrix tests for the

screening the candidates , through their

Direct T&D team . After imparting the

necessary Training from the Manufacturers

end itself through their Training Academy ,

the employment offers issued will hold their

validity . The entire process of recruitment

varies from manufacturer to manufacture.

Many a number of factors like

slowdown in GDP , increasing inflation

rates , sharp hike in petroleum products ,

depreciation of Indian Rupee against Dollar

value , the hike in industrial raw materials ,

have contributed to a downward trend in the

automobile industry and the industry is

witnessing a steep sloping down effect in the

recent days . At this critical juncture , all the

automobile dealer franchisees have started

brain storming and working on concepts

Dr.C.Swarnalatha* Ms.Uma Maheswari**

AN OVERVIEW OF HR PROCESS - WITH REFERENCE TO EMPLOYEE

ENGAGEMENT



like cost effectiveness ,constructive

productivity and profitability .

While discussing about the term

”Productivity” , one may generally perceive

the same as Performance Evaluation or

making a lexical analysis of performance

statistics of any dealership franchisee , as a

whole .But in fact , it has become an

obsolete and timed out concept .Of late , the

trend has moved itself , one step ahead , as

we need to talk about individual productivity

and revenue generated per every individual

employee .

“Employee Engagement is the key

success formula to increase productivity”. I

came across reading an article which was

published in the popular magazine ,” People

Matter” in Jan20 13 on the topic “ HR

trends in the era of T20”.

The author has beautifully written

about 13 trends of HR and one among the

trend was “TRANSFORMING

MERCENARIES INTO MONKS” -where

he was explaining the role of employee

engagement .

Nancy Lockwood (2010) has defined

“Employee engagement is a key business

driver for organizational success. High

levels of engagement in domestic and global

firms promote retention of talent, foster

customer loyalty and improve organizational

performance and stakeholder value”.

A recent definition by Mallikarjun

(2012) states that – “Employee engagement

is the emotional bond between the employer

and the employee.” In addition to the

common monetary incentives like Salary

increments, seasonal annual Bonuses and

other perquisites, a conducive and cordial

atmosphere prevailing inside the

organization, also raises an ordinary

employee to the level of an Engaged

employee”

The Need for Employee Engagement & its

significance

For better employee performance

resulting in more productivity.

To achieve expected profits

For greater employee commitment and

job involvement.

For greater employee retention.

For better advocacy of the organization.

For quality outputs being produced.

For lesser employee turnover and

absenteeism.

For greater customer satisfaction.

For greater customer loyalty.

To establish successful organizational

change.

To shape a successful organizational

environment filled with confidence.

To satisfy employees in turn.

By its own virtue , Employee Engagement

,continues itself to be one among the top HR

challenges, as most of the companies are

still struggling and finding it hard to get the

Employee Engagement part right.

The Aon 2012 Trends in Global

Employee Engagement report, covering

more than 3100 organizations, found a

small improvement in engagement levels

overall, including in HR areas, but

concludes that companies are not

focusing on the issues that matter to

employees.

The 2012 Global Workforce study from

Towers Watson echoes the same

dilemma. Its survey of 32,000 full-time



workers showed just 35% of workers as

highly engaged.

According to the report, organizations will

need to focus on enabling workers with the

right set of tools, resources and support, and

creating workplaces that are energizing to

work in as they promote physical, emotional

and social well-being. Organizations will

need to put renewed focus on getting its

Employee Engagement practices right in

2013 .

Ford India’s employee engagement

Keeping our employees engaged with

our Company overall, and encouraging them

to stay connected with their peers and their

communities, is an essential component of

our people strategy here at Ford. We believe

it’s important to communicate with our

workforce in ways that are open and

transparent. We do so through a variety of

forums, from “town hall” meetings to

intranet surveys and chats, from joint

labor/management committees to diversity

councils. For example, we work closely with

our employees’ unions to develop

agreements and governance plans through a

collective bargaining process. Policies and

procedures involving information,

consultation and negotiations with

employees over changes in our operations

(e.g., reorganizations, plant shutdowns,

employee transfers and reductions) are

negotiated with the appropriate union. In

addition, joint labor-management

committees are set up at each plant to give

employees an opportunity to influence

working conditions and practices.

(Courtesy corporate.ford.com).

Case study on Employee engagement with

reference to VW

Volkswagen employees from the

Network Development team donned blue t-

shirts rather than traditional painter’s whites

for their volunteer day.

Back Row: Bryan Connor, Mike

DiStefano, Brian Kelly, Alan Veit, Marcus

Brodfuehrer, Erik Peterson and Mike

Dwyer.

Front Row: Bob Kim, Katja

Hungarter, Rachel Whitwell, Danielle

Piesco, Erik Louderback and Scott Harrison.

Our Volunteer Day program

provides paid time off for any of our

employees who take active, volunteer roles

in community programs, as well as state and

national charitable, service or relief efforts.

References

a) Courtesy from 13/2/2013 By

Rajeshwari sharma

http://www.shrmindia.org - Top HR

trends in 2013

b) http://www.volkswagengroupameric

a.com

Biography

* HOD-Management Studies and Deputy

Director Research, Regional office- Anna

University, Madurai.

** Deputy Manager – HR, Susee

Automobile, Madurai.

http://www.volkswagengroupamerica.com/

http://www.volkswagengroupamerica.com/



Introduction

Corporate Entrepreneurship through

the development of large scale industries

and small and medium-sized enterprises

(SMEs) continues to be at the forefront of

economic development. Corporate

Entrepreneurship contributes to

development in various ways, such as

procuring scarce resources, employing those

for production, innovating or initiating

production processes or new production

technology and expanding the horizons of

market.

An entrepreneur is a catalyst for

development; with him we proper and

without him we are poor (Tandon, 1975).

Entrepreneurs are recognized with equal

emphasis by academicians, anthropologists,

political scientists, economists, sociologists,

psychologists, historians and the

government to be major determinants of

economic growth. Entrepreneurship offers a

solution to the growing employment

problems and facilitates uniform distribution

of wealth and balanced regional

development. In the next 10 years, around 1

30 million people in India will be looking

for their first jobs. It is the Corporate

Entrepreneurs who can create those new

jobs and opportunities. (Gupta, 2001).

The creation of new independent

businesses accounts for nearly one-fourth to

one-third of the variation in economic

growth in many industrialized countries. To

support and encourage entrepreneurs is the

most important issue faced by any society.

If these people are de-motivated or if we

lose them, society will be the loser in the

long run. Before recognizing and

appreciating these entrepreneurs, one should

know how to identify them and understand

what motivates them (Cooper and

Dunkelberg, 1987).

Determinants of entrepreneurship

can be also studied according to the level of

analysis.There are three levels: micro, meso

and macro level of entrepreneurship. Micro

level studies deal with studying individual

entrepreneurs or businesses. Meso level

deals with studying firms or sectors of the

industry. Macro level deals with studying

the national economy. In a vast country like

M.Banumathi* Dr.C.Samudhrarajakumar**

MOTIVATIONAL FACTORS INFLUENCING INDUSTRIAL CORPORATE

ENTREPRENEURSHIP IN INDIA

Entrepreneurs provide stability and serve as an engine for economic growth. The industrial

development of a country and its different regions depends significantly on the presence of

an adequate number of entrepreneurs. Identifying the factors that influence an individual’s

choice to pursue independent business creation might, therefore, lead to insights that would

have an impact on economic growth and development. A large number of leading

industrialists in India have come from the is still industrially backward. A survey was

carried out among industrial entrepreneurs to find out the factors of the motivation in people

for starting their own businesses. The results of the survey convey that non-economic

factors have been the most influential motive for starting a business in India.



India where regions widely differ in the

availability of resources and entrepreneurial

capabilities, there is a great need for regional

studies on industrial entrepreneurship. The

marked differences among different regions

with respect to economic history, political

consciousness, socio-cultural heritage, and

soon, make a region-wise-approach a

necessity. Such an approach could help in

identifying the potentialities and problems

of certain regions and help in formulating

suitable policies to develop them

(Venkatraman, 1997).

The people of India (Culture) are

highly industrious and known for their

entrepreneurial and trading skills. They

have established a number of successful

industrial and business ventures in India and

abroad. For more than 300 years, merchant

traders have travelled from the villages in

India across northern and eastern India, as

well as to Russia and Central Asia.

However, the status if industrial

entrepreneurship within India is very bleak.

Hence, there is a requirement to study the

reasons for motivation among the industrial

entrepreneurs in India.

Literature Review

Motivation refers to factors within an

individual, other than knowledge, which

energize, direct and sustain behavior (Locke

and Latham, 1990). Motivation can be

extrinsic or intrinsic. Extrinsic motivation

has a stronger relationship with material

factors while in the case of intrinsic

motivation; the individual basically tries to

fulfill his aims in life. However, whatever

the case may be, motivation has an influence

on the actions of the entrepreneurs.

Corporate Entrepreneurship motivation is

described as the socio-psychological drive

among people that leads to economic

development of a country (Akhouri and

Mishra, 1990).New businesses are not

created by accident. The effort and time

involved in starting a business would

suggest that entrepreneurial actions are

clearly intentional. Entrepreneurial behavior,

such as becoming self-employed or starting

a business, is intentional and is thus

predicted by intentions towards behavior,

not by attitudes, beliefs, personality or

demographics. Intentions are assumed to

capture the motivational factors that

influence behavior. They are immediate

antecedents of actual behavior (Krueger, Jt.

and Carsrud, 1993).

Reasons for Starting business/Factors

studied or focused Research studies

Need for

independence

Friberg, 1976; Schein,

1978; Hofstede, 1980;

Smith and Miner;

1983; 51-71.

Innovation McClelland, 1961;

McClelland and

Winter, 1969; Shane

et al. 1991

(considered as

‘learning’); Birley and

Westhead, 1994:

Sheinberg and

Macmillion, 1988

(considered as need

for personal

development’).

Need for

material

incentives

(Financial

Success)

Friesberg, 1976;

knight, 1987:

Scheinberg and

MacMillion,1988



(Labelled as

‘perceived

instrumentality of

wealth’): Birely and

Westhead, 1994:

Desire to escape

or avoid a

negative

situation Need

for social

approval

Drive to fulfill

personal values

or norms (Self-

realization)

Desire to follow

family traditions

(Roles) Tax

considerations.

Collins and Moore,

1955: Cooper, 1971:

Friberg, 1976:

Maslow, 1943;

Hagen, 1962;

Shapero, 1975;

McClelland, 1961;

Bonjean, 1966;

Vroom, 1967: Nelson,

1968. Friberg, 1976;

Gilbert,

1997.Hofstede, 1980;

Shane et al. 1991

Shane et al. 1991.

Another study by Kolvereid (1996)

explored the reasons given for self-

employment versus organizational

employment. He proposed that there were

11 types of reasons for choosing between

self-employment and organizational

employment: security, economic

opportunity, authority, autonomy, social

environment, work load, challenge, and self-

realization, participation in the whole

process, avoiding responsibility, and career

choice. He found that individuals who were

self-employed were more likely to choose

economic opportunity, authority, autonomy,

challenge, self-realization and participation

in the whole process, compared to those

choosing organizational employment.

METHODOLOGY

This study is based on primary data

collected through a structural mailed

questionnaire from a sample of industrial

units in India. The sample was chosen to be

typically representative of the population in

terms of the characteristics under study.

Therefore, the results obtained could be

generalized. The target population was

business enterprises, that is, all those firms

which were registered and involved in

manufacturing. Three major sources were

used to identify the contact address of the

sample. The list of enterprises in India

available at the online database of the

Bureau of Investment Promotion,

Government of India, and various

directories, such as Directory of

Manufacturers, India Business Pages,

Industries’ Directory, India Industry,

Directory-2002.

With the above sampling frame, 617

firms were selected randomly and the

questionnaires were sent in four stages. The

details are given in Table 9.2. For the

purpose of analysis, the data collected were

coded.

Results And Disscussion

Out of 617 questionnaires sent, 38

questionnaires were returned by the Postal

and Telegraph department citing reasons

like non-existence of Motivational Factors

Influencing Industrial Corporate

Entrepreneurship in India.

Table 9.2Details of Questionnaire

Despatch

Stag

es

Questionn

aire

despatch

date

No. of

questionnai

res sent

Remain

der

dispatch

date

Stag 24 357 31



e I September,

2003

October,

2003

Stag

e II

16

February,

2004

93 26

March,

2004

Stag

e III

22 June,

2004

92 2 July,

2004

Stag

e IV

13 August,

2004

75 24

Septemb

er, 2004

The total No. of questionnaires sent on 617

the company, closure of business, non-

existence of address, and so forth. Of the

remaining 579 respondents to whom the

questionnaire was dispatched, 60 replies

were received. The filled questionnaires

provided all the requisite data for the study.

Hence, none of the filled questionnaire was

omitted due to incompleteness, illegible

handwriting or any other reasons. Based on

the literature survey, the reasons for starting

a new business can be broadly classified into

six categories: business opportunity,

business reasons, government, profit,

personal characteristics and social

objectives. In the following paragraphs each

one of these element is discussed in detail.

Business Opportunity

Corporate Entrepreneurs are able to spot

unique opportunities (Milton, 1989). They

are able to identify new opportunities, needs

or problem solutions (Corman et al. 1988).

Entrepreneurs have the ability to turn the

common business opportunities into unique

and unexpected prospects. People start

business to tap these opportunities.

Business Reasons

These are the reasons that occur because of

the entrepreneurs’ existing business. The

business can take the form of forward

integration, back-ward integration,

expansion, and diversification, promoting

business in other geographical regions,

availability of inputs, joint venture,

monopoly business and lack of competition.

Government

This refers to the government promotional

policies, incentives and infrastructure

facilities. This factor acts as an external

encouragement to start a company.

Personal Characteristics

It is actually individuals who start

businesses. Their personal characteristics

influence their intentions to start a business.

These personal characteristics can be:

Independence

This characteristic is an individual’s desire

for freedom, control and flexibility in the

use of his time. He has a need for autonomy

and desire for personal control (Carter et al.

2003) and he seeks to be his own boss

(Amit et al. 1996; Knight, 1987).

Recognition

An individual’s intention to have status,

approval and recognition from one’s family,

friends and from those in the community,

thus making a name, standing out in the

crowd.

Roles

An individual’s desire to follow family

traditions or emulate the example of others.

Self-Realization

Pursuing self-directed goals, realizing their

own ideas about how the organization

should evolve, utilizing their full range of

talents.



Innovation

An individual’s intention to accomplish

something new. Introducing original ideas

about products or services, pursuing

something new or different; desire to build

something of one’s own.

Stability

Security or stability for the family and

others and for both the current and future

generations. The objective is to have a

better future prospect and a secure life.

Profit

An individual’s intention to earn more

money, become wealthy, and meet financial

needs and goals and also to provide benefits

to the shareholders leads him to start a new

business.

Social Objectives

Social objectives that become a reason for

Corporate Entrepreneurs to start a new

business are to provide employment,

contribute to the community, region or

country in terms of general economic

development, and act as a source of revenue,

earning foreign exchange, and so forth.

The reasons for starting a business have

remained the same, irrespective of whether

such data has been collected through close-

ended or open-ended questions (Shaver et al.

2001). In the present study, the respondents

were asked an open-ended question ‘What

was the promoter’s motivation for starting

this firm? The responses provided were

coded and sorted into the six categories as

mentioned earlier. In response to this

question, a few respondents provided more

than a single reason. Figure 9.1 provides

details of the number of distinct answers to

the question. Around 32 percent of the

respondents gave more than two distinct

answers to the question.

Figure 9.1 Distinct Answers Provided

Table 9.3 depicts the reasons for starting the

venture. Entrepreneurs in India have started

businesses primarily because of their

personal characteristics. The predominant

motives were independence, autonomy,

accomplishment, achievement, and self-

actualization. This was followed by business

reasons, specifically with regard to the

availability of raw material and the

expansion and diversification policies of the

existing firms. Only 12 per cent of the

entrepreneurs started their business in India

because of the easy availability of business

opportunity in the state of India. Around 11

per cent of the entrepreneurs started

businesses because of their social

commitments and involvement.

Different schools of thought propose

different motivations or reasons for starting

a business. The economic view of

entrepreneurship suggests that entrepreneurs

are motivated by the objective of profit

maximization. Psychologists contend that

entrepreneurship is a matter of individuals

Sales

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr



and therefore consider issues, such as

personality characteristics. Sociologists

explain entrepreneurial motivation in terms

of such factors as religious belief, ethnicity,

class and caste identities. A combination of

all these approaches would give a holistic

picture of what motivates people. There are

a number of motivational characteristics that

have been found in the entrepreneurial

research and these include innovativeness,

independence, and respect for work,

economic considerations, affiliation, power,

self-actualization and achievement (Sharma,

1979). Indian researchers have used

motivation and personality traits

interchangeably. Most of the studies on

motivation in India are descriptive in nature.

The reasons for starting a business were

examined in a pioneering study (Scheinberg

and MacMillion, 1988) called the Society of

Associated Researchers of International

Entrepreneurship (SARIE) research. This

research listed 38 reasons, which were

classified into six broad categories for

starting a business.

Need for approval

Need for independence

Need for personal development

Welfare considerations (in terms of

contributing to the community)

Perceived instrumentality of wealth,

tax reduction

Following role models.

There is also an urgent need for inculcating

these attributes in individuals through

educational training programmes at the

school and college levels. This can also be

done through special programmes like the

motivation camps that are organized by the

Department of Science and Technology

(DST) to promote entrepreneurship in India.

The government should also take the

initiative to recognize and accredit the

contribution of entrepreneurship to the

society by providing rewards and titles to

them. Profiles of successful entrepreneurs

should be set before young adults for

motivating them to start their own business.

Well-established entrepreneurs should also

be involved as mentors for providing

guidance to aspiring entrepreneurs.

References

a) Akhouri, M.M. P. and S.P.Mishra,

1990. ‘Entrepreneurship Education;

A Conceptual Base, Approach and

Methodology’, Indian Management,

xxix-11 (November- December):

48—59.

b) Amit, R,K,R, MacCrimmon and J.

Ocesch. 1996. ‘The Decision to

Start a New Venture Values, Beliefs,

and Alternatives’, paper presented at

Babson Entrepreneurial Research

Conference, Babson College,

Wellesly, MA.

c) Birley, S. and P. Westhead, 1994. ‘A

Taxonomy of Business Start-up

Reasons and Their Impact Firm

Growth and size’. Journal of

Business Venturing, 9(1): 7-31.

d) Bonjean, C.M. 1996. ‘Mass, Class

and the Industrial Community: A

comparative Analysis of managers,

Businessmen, and Workers’,

American Journal of Sociology,

72(2): 149-162.

e) Carter, N.M., W.B. Gartner, K.G.

Shaver and E.J. Gatewood. 2003,’

The career reasons of nascent



Entrepreneurs ,’Journal of Business

Venturing, 18(1): 13-39.

f) Collins, D.F. and D.G. Moore. 1955.

The Enterprising Man. New York:

Double Day.

g) Cooper, A.C. and W.C. Dunkelberg,

1987,’ Entrepreneurial Research: Old

Questions, New Answers and

Methodological Issues,’ American

Journal of Small Business, 11(3): 11-

23.

h) Corman, Joel, Benjamin Perles, and

Paula Vancini, 1988.’ Motivational

Factors Influencing High technology

Entrepreneurship,’ Journal of small

Business Management, 26(1): 36-42.

i) Friberg, M. 1976. Is the Salary the

Only Incentive for Work? New

York; Free Press.

j) Gilbert, M.R.1977.’ Identify, Space

and Politics; A Critique of the

Poverty Debates’, in Jones,

J.P.H.J.Nast and S.M. Roberts (eds),

Thresholds in Feminist Geography;

Difference, Methodology and

Presentation, pp. 29-45. Lanham,

MD; Rowman and Littlefield.

Biography

* Assistant Professor, Management

Wing, DDE, Annamalai University.

** Professor, Management Wing, DDE,

Annamalai University.



Introduction to Green Marketing

Green marketing refers to all

marketing activities which are responsive

towards protecting the environment. There is

much avoidable confusion regarding the

term green marketing, as people loosely

identify it with various phenomena in the

present era. Some attribute it as being

responsive towards climate change and

global warming, while others believe being

in conformity with environmental standards

as green marketing. Another group of people

perceive recycling as inherent in green

marketing while the majority of consumers

and marketers alike simply identify green

marketing as something that involves of

promoting products emphasizing their

contribution towards environment (Baker,

1999).

Since marketing is seen as a process

whereby the marketing mix (Product price,

promotions &place) is used to respond to the

needs and wants of customers while

achieving business objectives many

marketers have seen green marketing as

Another way of satisfying consumer needs

under the same marketing mix. However a

closer look at the concept of green

marketing shows a distinct variation that has

transformed the traditional marketing

thinking (Kotler, 1997).

The term green marketing itself has

undergone many changes with different

terminology such as environmental

Marketing and ecological Marketing being

vaguely used. The word green marketing

began to come to the surface in the 1980's

since there was growing awareness of the

global community regarding the

environmental hazards and impending

holocausts. It was in this context that

environmentalists began to exert pressure on

business firms to minimize the

environmental pollution in the production of

goods and services. The firms too have

responded in equal measure by emphasizing

and incorporating these environmental

concerns in their business activities (Davies,

R. 2007).Today the concept of green

marketing entails certain fundamental

elements. Marketing products which are

M. Ramkumar* Dr.K.Soundararajan**

**

A PEAK INTO THE DRIVERS FOR GREEN MARKETING

The concept of green marketing has undergone tremendous transformation as a

business strategy since its first appearance in the 1980's. Business firms have realized the

importance of green marketing as a means of gaining competitive advantage over rivals in

the industry. Business strategy of a business is devised in response to the changing needs in

the market and Green marketing has received a tremendous boost with the revival of

environmental consciousness among consumers. Green marketing in fact represents a

paradigm shift strategy in many business firms since it has altered the manner in which a

business goes about in reaching out to the customers.



environmentally safe; developing and

marketing products to minimize

environmental hazards; produce, promote,

and package products in a manner befitting

so as to protect the environment are some

characteristics of Green marketing as the

term is understood in the present business

world context. Green marketing involves

establishing a link between the business and

customer; and this process entails a holistic

approach since business will naturally have

to integrate all its activities in line with

environmental concerns. As a strategy,

green marketing involves strategic options

such as Green products, Green packaging,

Green prices and Green communication.

Green products are recognized as

ecologically friendly products. Green

packaging which is the explicit phenomena

in most instances has to do with suitable

packaging that reduces environmental

damage. Firms have recognized the value of

green marketing as a step towards catering

to customer needs while appreciating the

significance to the growth and expansion of

a business. It has become fashionable for

companies to be touted being green as a way

of identifying themselves with customers.

Green marketing in fact represents a

paradigm shift strategy in many business

firms since it has altered the manner in

which a business goes about in reaching out

to the customers. Firms deploy number of

green marketing strategies to outsmart rivals

in the industry so as to gain competitive

advantage. There are pitfalls and limitations

in green marketing but overall as a

marketing strategy it has brought about

unique elements as strategy evolves in

different contexts. Green prices show the

reflection of environmental concerns in

monetary terms which are intrinsic and

transferable to the customer. Green

communication fosters a positive image and

coveys a business firm's concern towards the

environment and the public (Ottman, 1999).

Over the years marketing strategists

have come to terms with environmental

issues affecting the global community and

some have thought of responding to these

concerns as most of the environmental

issues have to do with consumption. The

term green marketing has begun to assume

importance as result of firms finding ways

and means of being receptive to

environmental concerns. Green marketing

basically refers to making sure that the

marketing activities of a business are geared

to be responsive to minimize environmental

hazards. This shows an increasing

recognition on the part of firms towards

cementing a positive relationship with the

customers who have shown alacrity for the

preservation of environment (Crane, 2000)

Drivers for green marketing

The reasons for green marketing to

become more talked about concern is as

follows

Increase in temperature

Over the period of more than a

century many changes in land usage have

evidently taken place all over the country.

The changes in urban areas may be in the

form of new structures development that can

contribute to radiation or alter wind

circulation. In other areas there can be

changes such as development of irrigated

lands into constructions, change in farming

practices, drying up or filling up of water



bodies and removal of vegetation. These

changes affect the radiation balance,

evaporation, soil moisture and wind flow.

The observed increase in temperature can

have a component due to land use change

and a component due to changes in

atmospheric composition caused by

emission and usage of products that are not

eco-friendly.

A brief view on latest climate change

talks

In latest climate change talks on

Doha Summit 2013 , Kyoto protocol on

climate change that is due to expire on

December 2012 was extended for 7 years

from 2013 to 2020.This period is called

"Second Commitment Period" Of Kyoto

protocol which is the only legal binding

treaty on climate change till date. The 27

members of European Union, Australia,

Switzerland and eight other industrialized

nations had agreed to 20% carbon emission

cuts from 1990 levels. These countries

represent about 15 percent of global

emissions. Four developed nations Japan,

NewZeland, Canada and Russia have

already backed out of the 1997 Kyoto

protocol. This extension of protocol locks in

only developed nations and excludes major

developing polluters such as china and India

as well as US which refuses to ratify it.

Since this agreement is for only 15% of

global emissions and every country has its

own target any way this will make little

difference to global pollution levels. India

had committed for voluntary reduction in

emission intensity of 20% -25% by 2020.

Combating climate change effects

The following are the methods of combating

climate change

(1) Cleaning up coal for which technology

exists. This can lead to lesser pollution.

Also, conversion of coal to gas is possible.

This would further reduce pollution. More

use of natural gas than coal because natural

gas contains only half the carbon of coal and

no sulphur.

(2) Renewable sources of energy would

ultimately tackle the problem of CO2

emission and pollution. Wind power and

solar energy are obvious choices. But there

are other renewable sources like photo

voltaic ( photo voltaics convert sunlight

directly into electricity). These sources

produce little or no pollution and involve no

safety risks. This power should be used in

manufacturing various products.

(3) Manufacturing fuel efficient vehicles is

another step. Using fuel efficient vehicles in

distribution of various products.

(4) Deforestation Reversal. This is a major

step to reduce CO2 concentration. It is

possible to reclaim more land to plant more

trees but requires help from social, political

and financial institutions. Reforestation

schemes can be linked with sales promotion

schemes for promoting various products.

(5) Modifying the ingredients used in

manufacturing to replace toxic ingredients

with natural and eco-friendly ingredients in

various industries such as electronics,

personal care, home care and food

industries.



Green Marketing Role for Moderating

Global Warming and Climate Change

Effects

All the above steps can be integrated

in Green Marketing. Green marketing

involves satisfying needs and wants of

customers for facilitating exchange by

producing product with less power

consumption or using renewable sources of

energy, less water consumption, evading

harmful ingredients in manufacturing,

reducing emission in distribution and linking

reforestation schemes in sales promotion or

public relation strategy of the firm. In

totality green marketing is marketing with

minimal detrimental impact on environment.

Thus by adopting green marketing strategy

firm can contribute to reduce global

warming.

Strategies for green products and service

While deciding the strategies for

products and service, the enterprise ought to

take into consideration the type, quality,

design, brand package, warranty, rejection

and service of green products. Based on the

information obtained through market

research, the enterprise should carry out

effective division and accurate positioning

of the consumption market, then select its

product mix with unique features. When the

package or decoration of products is

concerned, the effects on environment

should be considered, and the principle

which should be followed is "the package

should be recyclable and discomposed", and

it ought to be a green package.

Furthermore, according to the related

environmental standards and regulations, the

enterprise should be approved by the State's

designated accredited institutions and

granted with a green label and certificate. As

for the design of the product, a green design

is popularized so that more ecologically

harmless and cyclable green products can be

developed. During the period of pre-sales,

sales and after-sales, the enterprise should

not only meet the green demand of

consumers and provide green service, but

comply with the principle of saving

resources and reducing pollution. The waste

products should be recycled, dismounted

and reused. Only in this way can the

enterprise win the recognition of consumers.

Setting proper price to green products

When setting the price to green products,

the enterprise should consider the green cost

spent on environmental protection and the

green benefits the green products bring to

consumers. Green products can serve the

consumers' psychological needs for

innovation and worship of nature, whereby

consumers are willing to accept the green

products that are of a relatively higher price

but of benefits for environment and people's

health. To better attract consumers, the

enterprise can consider offering some

favourable terms concerning credit terms

and payment period to customers.

Green Price

The natural resources should pay,

alternative resource use may increase the

cost, green marketing increased

management costs, to comply with the new

green environmental protection legislation

will make the cost of sewage charges,

ecological disaster prevention or elimination

of pollution insurance expenses and so on,

and all this will enable enterprises to

increase a lot of cost. Consumers pay for



green the ability and willingness to pay is

limited, this is also one of the important

reasons that a lot of small enterprises cannot

participate in the green marketing. To

implement the "green marketing" strategy

should consider three aspects: profit, cost

and responsibility. Therefore, in the

promotion of "green marketing" strategy the

enterprise should be effective to integrate

resources, to reduce costs, and to achieve

both profit and enhancing the public image

of enterprise.

The enterprise can use the minds of

consumers "perceived value" to pricing:

Using people's innovation, seeking

difference, and advocating natural

psychology. According to the modern

concept of the "polluter pays" and

"environmental compensation for the use"

the enterprise can do the work of pricing

promotion. Green product price rising

amplitude depends not only on the green

product quality improvement and

environmental protection cost number but

also depends on the consumers of green

products price understanding. In industrial

developed country, the green product prices

rose by a big margin, consumers are willing

to accept. In developing countries like India

it should be with the general price level or

lower by the support of government.

Green Products

The competition in low carbon era is the

competition of low carbon technology. Only

use low carbon technology to promote low

carbon products development, energy

conservation and renewable resources, the

basic material of low carbon marketing

implementation will be guaranteed. Green

product includes the following several

aspects: first, the concept of green product

design. In product design, the core product,

form product and extended product should

satisfy the consumer with low carbon, low

energy consumption, green energy and other

green low carbon demand. Secondly,

consumption chain of green products. Green

product design and raw materials

acquisition, green production, green

consumption and green product tracking

services, green product recycling, reuse,

that form a whole cycle.

Green distribution channels

When selecting green distribution

channels, the enterprise should reflect the

levels and channel numbers of distribution,

the composition of distribution channels and

logistic management. The enterprise can

directly arrange its own marketing channels

to sell its green products through which the

reputation of a green brand of the

enterprise’s green products can be

established. In addition, green products can

be sold through retailers, but the selection of

retailers depends on whether they concern

about environmental protection; whether

they have the same green sense as the

enterprise and whether they have a good

green image. Finally, the transportation of

green products should be pollution-free; the

distribution centers and links ought to be

properly arranged and the special promotion

for green products should be conducted. On

channel strategy, enterprises should select

and build a low carbon products network of

distribution channels based on the strength

and the product attribute, and strengthen the

requirements in the members of marketing

channel to strengthen the awareness of low-



carbon. And in product transport processes

the enterprise should pay attention to

packaging use, recycling and energy saving

etc.. Network channels and other short

channel development should pay full

attention to reducing the circulation link,

using new technology to reduce circulation

cost and logistics cost, and delivering the

value to the ultimate consumer. Choose a

good reputation of the middleman, in order

to maintain the image of green products.

Establish green products franchise, with

environmental protection characteristic

landmarks to decorative products to attract

customers.

Green Promotions

In promotion strategy, it is supposed

to strengthen consumers' green consumption

moral guidance, train the marketing staff

with low carbon awareness, and establish a

high-quality green promotion team. Green

promotion is to carry out the various

promotional activities on the green product.

The core is through the transmission of

information to establish a corporate, product

image of green, and consolidate the market

position of the enterprise with consumer

needs. Carry out a number of promotional

activities to guide and encourage consumers

to accept the idea of low carbon, low carbon

products and low carbon consumption;

green advertising is a marketing mode,

overall consideration, and other promotions

such as sales promotion, public relations to

pursuit green promotion effect. Mass

advertising itself does not meet the "green"

principle which will result in waste of

resources, at the same time in advertising

design should have a unique "green"

creative, so people can naturally pay close

attention to environment.

Conclusion

Green marketing as a new marketing

idea, is the enterprise response to the state of

low carbon economy and the strategy of

sustainable development, but also conducive

to help enterprises to establish a unique

competitive advantage. Green marketing of

the enterprises carrying out smoothly, it is

inseparable among the government,

enterprises and consumers together. All of

these aspects together, it truly makes the

enterprises do the green marketing, so as to

achieve a low carbon economy and

sustainable development of the whole

society.

References

a) Crane, A. (2000). Facing the backlash:

green marketing and strategic

reorientation in the 1990s. Journal of

Strategic Marketing, 8(3), 277-296.

b) Davies, R. (2007). Why John Grant has

helped make sense of the green debate.

GREEN Marketing Manifesto, 47.

c) De Bakker, &Frank, G. A. (2009).

Corporate Culture and Environmental

Practice: Making Change at a High-

Technology Manufacturer. Organization

&Environment, 22(2).

d) Kotler, P. (1991). Marketing

Management: Analysis, Planning,

Implementation and Control. Journal of

Marketing Management, 7(4), 426-427.

e) Nathan, C Senthil; Mathi, K Malar,

International Journal of Marketing and

Technology 3.10 (Oct 2013): 109-125.



f) Ottman, J., &Miller, D. S. (1999). Green

Marketing. Electronic Green Journal.

Biography

* Assistant Professor, Management Wing,

DDE, Annamalai University.

** Associate Professor, Management Wing,

DDE, Annamalai University.



Rationale

Social Entrepreneurship is a blessing

in disguise especially for a developing

country like India because it provides the

best solutions for economic and social

problems. Many micro enterprises are born

out of the efforts of Social Entrepreneurship.

Madurai is no exception to this recent boon.

There has been a drastic increase in the

number of Women Entrepreneurs in India,

particular in the micro enterprises. Since the

birth of Grameen bank and Micro finance,

many women are motivated to take up

challenges of becoming an entrepreneur.

Women constitute half of the total world

population. Hence, their empowerment

would no doubt help in the development of

the nation as a whole. In Madurai too, many

women are involved in micro enterprises.

But the question is on how far they are

empowered through the ownership of

material possessions and the freedom they

supposedly enjoy. Though many studies

have been conducted on women

empowerment, rigorous studies linking

micro enterprises and empowerment and

ownership and freedom have not been made

in Madurai. It is noted that either Women

Entrepreneurship per se or Empowerment of

women as a separate phenomenon has been

studied. As far as the knowledge of the

researchers goes, there is minimum study

with the perspective on “Empowerment of

women” through “ownership and freedom”

in Madurai city linking both the areas. This

has prompted the researchers to undertake a

study on this topic. It is best at this point to

define the terms Empowerment, Women

Entrepreneurs, empowerment of women

entrepreneurs and Micro enterprises.

Dr. Sonia Selwin* Dr. Anthea Washington**

* B.Palaniselvan **

EMPOWERMENT OF WOMEN ENTREPRENEURS THROUGH OWNERSHIP AND

FREEDOM: WITH SPECIAL REFERENCE TO MADURAI, TAMILNADU

The researchers undertook a study on the empowerment of women entrepreneurs

through ownership and freedom with the following objectives. 1. To understand the

demographic profile of women entrepreneurs. 2. To assess the impact of ownership of

material possessions on the empowerment of women entrepreneurs. 3. To assess the impact

of freedom on empowerment of women entrepreneurs. 4. To find the significant difference

in the empowerment among various age groups of women entrepreneurs. 5. To provide

workable solutions on the basis of the study outflow. Data was collected using a semi

structured questionnaire in 13 blocks in Madurai District. Data analysis was done using

SPSS software. Different tests like percentage analysis, cross tab and ANOVA were used

to analyse the data. The results revealed that only few respondents were empowered but

most others were not empowered enough. The study concludes by providing workable

solutions which could be implemented to enhance the empowerment of women

entrepreneurs.



Review Of Literature – Definitions,

Concepts & Status

Empowerment- Definition

Empowerment is a state where a

person achieves something to his fullest

potential. Hur, 2006 explains three issues

basic to understand empowerment. First

“Empowerment is multidimensional in that

it occurs within sociological, psychological,

economic, political and other dimensions.

Second, empowerment occurs at various

levels, such as individual, group, and

community. Third empowerment is an

outcome that can be enhanced and

evaluated.

According to Nayar Sudha, 2008,

“Empowerment is a multidimensional social

process that helps people gain control over

their own lives. It is a process that fosters

power in people for use in their own loves,

their communities and in their society, by

acting on issues that they define important.

From the above, one can clearly

conceptualize empowerment as a process

that brings about ‘integral’ development in

an individual.

Entrepreneurs under study

The study by Archer, Geoffrey, 2008

depicts three distinct groups of

Entrepreneurs in microfinance. The first is

the MFI founders, who are termed as “Social

Entrepreneurs”. They are centered on a

“social value proposition”. The second are

the “Necessity Entrepreneurs” who are the

microfinance borrowers. They are forced to

start a business in order to survive. The

third is the “Device Manufacturer” from

whom products are purchased with

microfinance loans. They are said to be

“Commercial Entrepreneurs”. In this study,

the researchers have focused on the

Necessity Entrepreneurs. The women

entrepreneurs in Madurai under study have

mostly borrowed money to start their micro

enterprise.

Woman Entrepreneur

Vinza (1987) defines woman

entrepreneur as “a person who is an

enterprising individual with an eye for

opportunities and an uncanny vision,

commercial acumen, with tremendous

perseverance and above all a person who is

willing to take risks with the unknown

because of the adventurous spirit she

possesses.” This study focuses only on the

women who are currently running a

business. They have vision of flourishing in

the business and persevere to be successful

in their enterprise.

Empowerment of Women Entrepreneurs

Ranjula Bali Swain & Fan Yang

Wallentin (2007) show that women

empowerment takes place when women

challenge the existing social norms and

culture to effectively improve their well

being. It shows clear evidence that the

women participating in SHG have higher

empowerment.

Karuthiah, 2004 studied the impact

of SHGs on the social and economic status

of women in erode district. The results

indicated that the groups benefited in terms

of increased economic and social

empowerment.

Nayak & Mahanta, 2009 stated

,“Empowered women have political freedom

which in turn translates into decision making

capacity both at the community and national

level”.Tripathy (2005) emphasized on the

micro enterprise as a step towards rural



women empowerment. The basic

hypothesis was the empowerment process

begins with and is supported by economic

independence of women. A comparative

analysis was made between micro

entrepreneurs and non entrepreneurs and

housewives. It was found that the equity in

the food consumption pattern and asset

ownership in the family were better for the

micro entrepreneurs than for the non

entrepreneurs and housewives. Moreover,

the gender inequity in workload burden is

seen more prominent among the working

women than the housewives. Thus the

findings suggest that there is empowerment

of rural women through micro enterprises

All the above studies show that

women are empowered economically and

socially.

Micro enterprises

According to Manoharen Devi &

Vanathi (2008), Micro enterprises are

usually associated with women who are

economically derived, have received little or

no education and are forced to generate

income outside of the home. Women’s

micro enterprises spring largely from

economic necessity.

Muthuraj & Thilagavathi , 2008

unveils that “Development of micro

enterprise helps to create immediate

employment opportunities involving a

number of women at low investment level.

Besides it provides full utilization of capital

and also reduces the wastage of human

resources, particularly women.”

The micro enterprises under study

were run by women who are economically

weak, with not much education.

Self Help Groups

Manoharen & Vanathi, 2008 opine

that the SHGs are voluntary association of

people formed to attain a collective goal.

People who are homogeneous with respect

to social background, heritage caste or

traditional occupations come together for a

common cause to raise and manage

resources for the benefit of the group

members. The women who were members

of self help groups were studied. With this

background of the concepts, the objectives

of the study are stated below:

Objectives

The study was carried out with the following

objectives in mind.

1. To explore the demographic profile of

women entrepreneurs.

2. To assess the impact of ownership of

material possessions on the empowerment of

women entrepreneurs.

3. To assess the impact of freedom on

empowerment of women entrepreneurs.

4. To find if there is significant difference in

the empowerment among the various age

groups of women entrepreneurs.

5. To provide workable solutions to

improve the strategies of enterprising on the

basis of the study outflow.


The research design adopted was

descriptive in nature, presenting the

explored facts in the present context. The

sources of data were both secondary and

primary. The samples were selected by

using purposive random sampling method.

Ten women entrepreneurs were selected

randomly from 13 blocks of Madurai



district. The total sample size was 130. A

pre structured interview schedule was used

to analyze the empowerment of women

through micro enterprises. Data analysis was

carried out by using SPSS. Percentage

analysis and cross tab were used to find the

demographic profile and the economic

conditions of the women entrepreneurs.

Ownership empowerment index was also

calculated to find out the extent of economic

empowerment of women as a result of

purchasing things for themselves which

would strengthen the results. The freedom

index was calculated to find out the extent of

social empowerment the women possessed

as a result of freedom. The significant

difference among the four groups of

respondents regarding their empowerment

indices was analyzed with the help of

ANOVA test.

Analysis Of Data

Age Of The Respondents

In the present study, the age of the

respondents is confined to 18 - 20, 21 to 30,

31 to 40 and 41- 50 years, which are named

as group I, group II, III and IV respectively.

The distribution of respondents according to

their age is shown in Table 1.

TABLE 1

Age – wise Distribution of Respondents

Most of the respondents (65.4

percent) were between the ages 31 to 40.

And only 3.8 percent of the respondents

were between the age group of 18-20. This

shows the women are involved in

entrepreneurship are the ones who are old

enough to take their own decision for their

lives. The subsequent analyses were carried

out with respect to the above classification

of age of the respondents.

Nature Of Business

Table 2 reveals the nature of

business activities the women entrepreneurs

were involved in which includes production,

service, trading, finance, agriculture and

others.

TABLE 2

Nature of business undertaken

Most of the respondents were into

trading which constitute 28.46 percent to the

total respectively. The most important

nature of business undertaken by group I

and group II respondents were trading and

S.

No.

Age Number of

Respondents

Percentage

to the total

1 18 - 20 5 3.8

2 21-30 25 19.2

3 31-40 85 65.4

4 41- 50 15 11.5

Total 130 100.0

Nature of

business

Number of Respondents in

Tota

l

Gro

up

I

Gro

up

II

Gro

up

III

Gro

up

IV

Production 1 4 13 1 19

Service -- 4 12 2 18

Trading 2 5 24 6 37

Finance 1 6 8 2 17

Agriculture -- 2 13 3 18

Others 1 4 15 1 21

TOTAL 5 25 85 15 130



finance which constitutes 40 and 24 percent

to its total respectively. Among the groups

III and IV respondents, we clearly see that

they were also involved in trading which

constitute 28.23 and 40.00 percent to its

total respectively. The women entrepreneurs

were more interested in trading as it is easier

than other businesses.

Scope Of Marketing For The Products

Table 3 represents the scope of

marketing of the products produced by the

respondents. The scope of marketing was

confined to local, regional, national and

international market. The distribution of

respondents on the basis of this scope of

marketing is illustrated below.

TABLE 3

Market for the products

S

.

N

o

.

Market

Number of

Respondents in

Tota

l

Gro

up

I

Gro

up

II

Gro

up

III

Gro

up

IV

1 Local

market

2 7 37 4 50

2 Regional

market

1 8 23 7 39

3 National

market

2 9 21 3 35

4 Internatio

nal

market

-- 1 4 1 6

Total 5 25 85 15 130

In total, a maximum of 38.46 percent

of the respondents sold their products only

in local market, which was followed by

Regional and National market which

constitute 30.00 and 26.92 percent to the

total. The most important scope of market

among the group I and group II respondents

were Local and National market which

constituted 40 percent and 36 percent to its

total respectively. Group III and group IV

respondents were involved in local and

regional market since it constituted 43.53

and 46.67 percent to its total respectively.

Source Of Finance

The respondents mobilize their funds

to start the business from several sources. In

this study, the options were confined to own

funds, bank finance, friends and relative and

private finance. The distribution of

respondents on the basis of their source of

finance is illustrated in table 4.

TABLE 4

Source of finance

S.

No.

Source

Number of

Respondents in

Total

Gro

up

I

Gro

up

II

Gro

up

III

Gro

up

IV

1 Own

Funds

1 7 21 2 31

2 Bank

Finance

1 5 18 2 26

3 Friends

&

Relatives

1 6 14 3 24

4 Private

Finance

2 7 32 8 49

Total 5 25 85 15 130



The important source of finance

among the respondents are relatives &

friends and own funds which constitute 38

and 24 percent to the total respectively. The

most important source of other finance

among group I, III, IV respondents is

relatives & friends which constitute 40, 38

and 53 percent to its total respectively.

Among the group II respondents it is own

funds and private finance which constitutes

28 percent to its total.

Ownership Variables Among The

Respondents

The respondents have started their

enterprises to enrich their ownership. The

distribution of respondents on the basis of

ownership of variables is given in table 5.

TABLE 5

Ownership variables among the

respondents

Assets Response of women

entrepreneurs

Yes No

Gro

up

I

Gro

up

II

Gro

up

II

I Gro

up

I

V

Gro

up

I

Gro

up

II

Gro

up

II

I Gro

up

I

V

Tap

e

reco

rder

3

19

62

11

2

6

23

4

Tel

ev

isio

n

2

11

39

9

3

14

46

6

Watc

h

3

10

40

5

2

15

45

10

Gold

orn

am

e

nts

1

4

9

2

4

21

76

13

Savin

g

mon

ey

2

4

11

6

3

21

74

9

Inves

t

mon

ey

--

1

6

5

5

24

79

10

Ow

n

lan

d

1

8

14

3

4

17

71

12

Sofa

--

2

6

4

5

23

79

11

In total 73 percent of the respondents

own stereo set/ tape recorder. Regarding the

ownership of television, only 47 percent

respondent responded positively. Only 45

percent of the respondents possess watches

and only 12 percent of the respondents own

gold ornaments. Around 18 percent save

money. 9 percent of the total respondents

have invested their money. Only 9 percent

of the respondents own a sofa set. This

shows that the respondents are not very well

off.

Ownership Empowerment Index (Oei)

Among The Respondents

The following gives the summative

view of the ownership of various assets by

the respondents. The OEI is calculated by

the formula,



n

∑SOEVi T=1

OEI = ___________________

X 100

n

∑MSOEVi T=1

Where SOEV – Score On Ownership

Empowerment variable

MSOEV- Maximum score on

ownership empowerment variable

T = 1……n – number of variables

included to measure ownership

empowerment.

The points assigned “yes” & “no” on the

ownership of variables are 2 and 1

respectively. The OEI is confined to less

than 21 percent, 21 to 40, 41 to 60, 61 to 80

and above 80 percent. The distribution of

respondents on the basis of their OEI is

shown in table 6.

TABLE 6

Ownership Empowerment Index (OEI)

among the respondents

OEI in

percent

Number of Respondents

in

Total

Gro

up

I

Gro

up

II

Gro

up

III

Gro

up

IV

Less

than 21

3 15 24 7 49

21- 40 1 7 33 4 45

41- 60 1 2 18 2 23

61- 80 -- 1 6 1 8

Above

80

-- -- 4 1 5

Total 5 25 85 15 130

The above table shows that most (38

percent) of the respondents possesses the

OEI less than 21 percent followed by 35

percent who possess the OEI between 21 to

40 percent.

The number of respondents with an OEI of

above 60 percent constitutes 10 percent to

the total. The most important OEI among

the group I and group II respondents is less

than 21 percent which constitutes 60 percent

to its total. Among the group III and IV

respondents, these are 21 to 40 percent and

less than 21 which constitutes 39 and 47

percent to its total respectively. It is inferred

that the ownership empowerment is very

poor among the respondents. But it is

slightly higher among the group III

respondents compared to other three groups

of respondents.

Variables In Freedom Empowerment

The study has made an attempt to

measure the extent of freedom among the

respondents to do something as they like in

their way of life. The freedom variables are

confined to only six. The framed statements

are presented to the respondents. They are

asked to rate the statements according to the

frequency of occurrence in their life, namely

very high, high, moderate, low and very

low. The assigned score of these scales are

5,4,3,2 and 1 respectively. The mean marks

of the statements among the four groups of

respondents have been computed to exhibit

the level of freedom in each and every

aspect. One way analysis of variance have

been used to find out the significant


respondents as shown in table 7.



TABLE 7

Variables in freedom among the

respondents

Variables

in

freedom

Mean score

among the

respondents

F. S

tati

stic

s

Gro

up

I

Gro

up

II

Gro

up

III

Gro

up

IV

1

Not

takin

g

away

of

land a

nd

Jew

elry

2.1

417

2.0

862

2.3

144

2.2

678

0.4

517

2

All

ow

ed

to v

isit

nat

al

hom

e

2.2

308

2.6

817

3.3

417

3.7

086

3.1

132*

3

Work

outs

ide

hom

e

2.4

517

2.2

144

2.0

761

2.2

114

0.3

962

4

Les

ser

ver

bal

abuse

from

husb

and

2.9

182

2.8

183

2.4

503

2.0

814

0.6

818

5

Les

ser

physi

cal

abuse

from

husb

and

2.0

818

2.4

146

2.7

181

2.5

086

0.5

919

6

No

thre

ats

of

div

orc

e

2.4

519

3.9

096

2.8

184

2.5

676

2.9

108*

*Significant at five percent level

Table 7 explains the mean score of

the freedom variables and the respective ‘F’

Statistics. The higher perceived freedom

variables among the group I respondents is

‘lesser verbal abuse from husband’ and ‘no

threats of divorce’ since the respective mean

scores are 2.9182 and 2.4519. Among the

group II respondents, these two are ‘no

threats of divorce’ and ‘lesser verbal abuse

from husband’ since the mean scores are

3.9096 and 2.8183 respectively. Among the

group III respondents, these are ‘lesser

physical abuse from husband’ and ‘no

threats of divorce’ since its mean scores are

3.3417 and 2.8183 respectively. These

variables among the group IV respondents

are ‘visit to natal home’ and ‘no threats to

divorce’ since its mean scores are 3.7086

and 2.5676 respectively. Regarding the

freedom empowerment, the significant


respondents is identified in the case of ‘visit

to natal home’ and ‘no threats of divorce’

since the respective ‘F’ Statistics are

significant at five percent level.

Freedom Empowerment Index (Fei)

Among The Respondents:

The freedom empowerments among

the respondents are summated with the help

of the freedom Empowerment Index (FEI).

It is calculated by

n

∑SFEVi T=1

FEI = ___________________

X 100

n

∑MSFEVi T=1

Where SFEV – score on Freedom

Empowerment variables

MSFEV - Maximum score in Freedom

empowerment variables

T = 1…n – Number of variables in freedom

empowerment

The FEI is classified into less than

21, 21 to 40, 41 to 69, 61 to 80, and above



80. The distribution of respondents are on

the basis of their FEI is shown in table 8.

Table 8

Freedom Empowerment Index (FEI)

among the respondents

Most of the respondents (31 percent)

possess a FEI between 41 to 60 percent

followed by “less than 21 percent” 27

percent to the total. Only 2 percent of the

respondents are having an FEI of above 80

percent. The most important FEI among the

respondents of groups I and II is “less that

21 percent” which constitutes 40 percent and

44 percent to its total respectively. Among

the group III and IV respondents, these are

41 to 60 and less than 21 percent which

constitutes 34.12 and 40 percent to its total.

The analysis revealed that the freedom

empowerment among the respondents is to a

satisfactory level. It is identified that

freedom empowerment is higher among the

group III respondents.

Empowerment Index Among The

Respondents:

The empowerment index among the

four groups of respondents has been

examined with the help of mean score of

index. The significant difference among the

four groups of respondents regarding their

empowerment index is analyzed with the

help of One Way Analysis of Variance. The

resulted mean score and the respective ‘ F’

Statistics are shown in table 9.

Table 9

Empowerment index among the

respondents

* Significant at five percent level

The above table shows the

Ownership Empowerment Index and

Freedom Empowerment Index among the

various groups. It is seen that group III has

more Ownership empowerment when

compared to other groups as the mean score

is 34.24. Regarding the empowerment

S. No Freedom

Empowerment

Index (In percent)

Number of respondents in Total

Gro

up

I

Gro

up

II

Gro

up

III

Gro

up

IV

1 Less than 21 2 11 16 6 35

2 21 – 40 1 2 22 2 27

3 41 – 60 1 8 29 2 40

4 61 – 80 1 4 16 4 25

5 Above 80 -- -- 2 1 3

Total 5 25 85 15 130

S.

No

Empowerme

nt Index

Mean among the respondents in F

statistics

Group I Group II Group III Group IV

1 OEI 22.14 21.29 34.24 28.67 1.6069

2 FEI 0.0962 0.1408 0.1708 0.1944* 0.1443*



indices, there is no significant difference

among the four groups of respondents since

the F’ statistics is not significant at five

percent level. Further, the table shows that

group IV has more Freedom empowerment

index when compared to other groups.

Moreover, it is seen that there is a

significant difference among the groups of

respondents of different age groups.

Summary Of Findings, Suggestions And

Conclusion

FINDINGS

1. The study indicates that the women

entrepreneurs in the study area are

mostly middle aged (31-40). This is

because younger women find it very

difficult to start their own business as

they get married in their early 20s or mid

20s and can’t take their own decision.

As a new bride, they would want to take

care of the family, specially their kids

and will be submissive to what their

family members tell them. They are

busy with the family and do not have

time to think about business. As they

grow older, they realize that it is not

enough to just sit at home but they need

to work. This realization emerges in the

early 30s and this is the age where

women entrepreneurs get into

entrepreneurship. This is also the age

when they are bolder to face the

challenges of the world.

2. Around 28 percent of the respondents

are into trading and they mainly belong

to Group I respondents. Trading is the

easiest form of business where the

women entrepreneurs just need to

buy and sell the product. Though it is

risky, it does not involve so much risk as

in other businesses such as production or

agriculture. It is easy for them as they

can work at their own pace.

3. Around 38 percent of the women

entrepreneurs focus only on the local

market. Nevertheless, 30 percent of the

women entrepreneurs still manage to sell

in the regional level and 27 percent sell

in the national market. Most of the

women are comfortable selling in the

local market since they have easy access

to these markets. Some women get some

support from the government for

marketing the products. This is one of

the reasons women sell in other markets

as well. It is sad to see that very few

women entrepreneurs have access to the

international market. It is because the

quality of the product is not up to the

standard. Moreover, they do not have

knowledge on how to go about

marketing in other countries.

4. Most of the women entrepreneurs (38

percent) borrow money from their

relatives and friends to start their

business. The main reason being lack of

savings for investment. They are not

ready to borrow money from financial

bodies who charge high interest. The

procedures to apply for loans in the

banks are also tedious. Most of the time

the women entrepreneurs do not get the

loan as the bank makes too many

enquiries about their financial stability.

The repayment of the loan is a big

question the bankers often have. Since

many women entrepreneurs do not

succeed in their business, the bankers



feel that women are not capable of doing

a business and funds are not sanctioned

for them. Though there are many micro

finances, deserving women

entrepreneurs are not given the

opportunity to take loans, as some of the

women show fake documents for

starting a business, when in reality they

have no intention of starting a business.

There are many women who do not

repay their loans which again make the

procedures longer and very difficult for

the deserving entrepreneurs to avail

loans.

5. The important ownership empowerment

index among the respondents is less that

21 percent and is followed by 21–40

percent. It reveals that the Ownership

Empowerment is very poor among the

respondents. But it is slightly higher

among the group III respondents

compared to other three groups of

respondents. Regarding the ownership

empowerment index, there is no

significant difference among the four

groups of respondents.

6. It is seen that all women no matter what

age group they belong to “Do not” face

threats of divorce. This is because,

women entrepreneurs supplement

income to their family and so the

husbands dare not abuse her or divorces

her for fear of losing the money she

earns. The other freedom both groups I

and II respondents experience is “lesser

verbal abuse” from their spouses. This is

because they are earning well and they

have become more daring to oppose

their spouses if they are to abuse them

verbally. Group III respondents have

lesser physical abuse from their husband

and group IV respondents are allowed to

visit natal home. The analysis revealed

that the freedom empowerment among

the respondents is in a satisfactory level

but it is identified as higher among the

group III respondents. The freedom

empowerment is more as they have to

visit many places when they are

involved in business. They become

more independent and hence demand

freedom in various aspects.

7. Findings show that there is no significant


respondents with regard to the

ownership empowerment index.

However, there is a significant

difference in Freedom empowerment

index among the four groups of

respondents.

Suggestions

The study revealed that majority of

women entrepreneurs start entrepreneurship

career when they are in the age group of

31 - 40. This makes it imperative for the

Government and NGO to arrange

Entrepreneurial programs to this target

group so that they could get the necessary

guidance and be successful in their business.

Since most of the women are

involved in trading, the government can

develop entrepreneurial trainings focusing

on the business plans for trading businesses.

Apart from this, avenues available in other

types of businesses can also be made aware

to them so that they will have a broader

view about the other opportunities of

starting a business. Many women want to

be on their own and start their own business,



but the main problem they face is that they

are not aware of new business opportunities.

This is because they lack proper training and

experience in other fields of business.

Government, NGOs and financial

institutions can provide training for

prospective women entrepreneurs on the

different openings in entrepreneurship. This

would help women to not only stick on to

their traditional business but would give

them the confidence to venture into new

businesses as well.

The women entrepreneurs are mainly

focused on local markets. They need the

support of the government and NGOs to

break through into other markets for selling

their products. Internet is a great source of

marketing. Most of the women

entrepreneurs are not aware of the benefits

of using the internet. These women need be

educated and trained on using the internet

effectively which will no doubt help them to

expand their markets virtually. Apart from

the internet, the government can provide

networks and help them in social networking

to market their products. Further, the

government can buy the products of the

women entrepreneurs which would motivate

them to produce more. Websites could also

be sponsored by the Government and the

NGOs so that the products of the Micro

enterprises can be sold worldwide in order

to help them to become more economically

empowered.

Women find it very difficult to

obtain loans. Government and financial

institutions must make the procedures of

taking loans easier so that the women

entrepreneurs need not wait for a long time

to get their loans sanctioned. A separate

wing must be allocated which will deal with

the women entrepreneurs so that their

requirements will be dealt with quickly and

effectively. Though the government has

many funds available for the women

entrepreneurs, it does not reach them. Only

the acquaintances of people in charge for the

project or the people who have influence in

the government offices are aware of these

loans. It is suggested that the different

offers for subsidies and call for women

entrepreneurs for training be announced in

the TV or the radio. If such announcements

are made during soap operas which majority

of the women watches, they would be

greatly benefitted. Though the government

has developed many schemes for the Self

Help Groups we find that many does not

reach the groups and its members. So steps

should be taken to monitor that the funds are

channelized in a proper manner so as to

reach the target groups.

It is seen in the findings that

ownership empowerment index is very less

when compared to freedom empowerment

index. This shows that most of the women

do not own many products or land. It is

because they earn less profit. Since the

freedom empowerment is higher, women

can be motivated to start their own business

showing them the advantage of gaining

freedom empowerment if they are involved

in enterprise development. The government

must provide training programs which

would give guidance for the women

entrepreneurs to save and increase their

ownership empowerment. It needs to be

mentioned that it is just not the role of

Government alone to come up with

initiatives for the betterment of women



entrepreneurs. Corporate, philanthropists

and NGOs also can work together for

uplifting the status of women entrepreneurs.

Conclusion

Out of the numerous indicators of

empowerment, this paper is confined to the

Economic perspective. The other domains

like political, psychological, participation

etc. could be studied. Psychological

empowerment of women entrepreneurs

needs special attention as not much

emphasis is given on this dimension.

Further, comparison of women

entrepreneurs from other states could be

made. This may be complex due to the

extreme scarcity of information and the

complexity in the concepts as well but such

studies will be an invaluable asset to uplift

the women entrepreneurs. Study can be

conducted to find out if any particular

entrepreneurial skills help in empowering

women so that training could be given to

enhance such skills.

References

a) Archer, G.R. 2009, “Microfinance:

Social Entrepreneurship? Commercial

Entrepreneur-ship? Or Both?”,

Working Paper Series. [ONLINE]

Available at: http://dx.doi.org/10.2139/.

[Accessed 03 April 10].

b) Bali Ranjula and Fan Yang Wallentin,

2009. "Does Microfinance Empower

Women?", International Review

of Applied Economics , 23 (5), 541-556.

c) Hur, M. H. 2006. “Empowering in terms

of theoretical perspectives: Exploring a

typology of the process and

components across disciplines.”

Journal of Community Psychology,

34, no. 5 , 523-40.

d) Karuthiah, P. 2004, Self Help Groups- A

strategic tool in empowering women,

Department of Management Studies,

Manonmaniam Sundarar Univeristy.

e) Manoharen, P. K. & Vanathi, J. 2008,

Performance of Micro Enterprises

initiated by selected Self Help

Group Women in Coimbatore District.

In , Jerinabi .U , Micro Enterprises

for women; competitiveness, challenges

and prospects for new global

environment, New Delhi: Discovery

publishing house Pvt. Ltd.

f) Muthuraj, K. & Thilagavathi, P. 2008,

Role of SHGs in promoting micro

enterprises through Micro credit,

In , Jerinabi. U, Micro Enterprises for

women; competitiveness,challenges

and prospects for new global

environment, New Delhi :

Discovery publishing house Pvt. Ltd.

g) Nayar, S. 2008, Women’s Empowerment

in South Asia, New Delhi: Navying

Publishers & Distributors.

h) Nayak, Purusottam & Mahanta, B, n.d.,

Women Empowerment in Assam

(Online) Available at SSRN:

http://ssrn.com/abstract=1325103

(accessed 09 January 2009).

i) Vinza, M.D. 1987 , Women

Entrepreneurs in India, New Delhi,

Mittal Publications.

Biography

* Lecturer at Bahrain Training Institute,

Ministry of Education, Bahrain.

** Senior Lecturer, Muscat.

http://dx.doi.org/10.2139/

http://ssrn.com/abstract=1325103



Introduction

Test anxiety is defined as the

reaction to stimuli that is associated with an

individual’s experience of testing or

evaluating situations. Test anxiety is an

overwhelming feeling of disturbance and

distress among the students around the

world. It is a type of performance problem

just like when some people get nervous

speaking to large crowds or trying

something new. Test anxiety can be a

devastating problem for many college and

university students; because it may impair

their performance and well being in the long

run (Culler & Holahan, 1980; Rafiq, Ghazal

& Farooqi, 2007). Cassady and Johnson

(2002) found that cognitive test anxiety

exerts a significant stable and negative

impact on students’ academic performance.

Dusek (1980) describes test anxiety as “An

unpleasant feeling or emotional state that

has both physiological and behavioral

components and that is experienced in

formal testing or other evaluative situations"

(p.88). Hagtvet and Johnsen (1992 as cited

in Anastasi and Urbina, 1997) pointed out

that chronically high level of anxiety exerts

a negative effect on school learning and

intellectual development. They further argue

that overwhelming test anxiety interferes

with both the acquisition and the retrieval of

information by students of all grades across

the globe. Carver and Scheier (1984 as

cited in Zeidner, 1998) argues that “Test

anxious persons are likely to have strong

chronic doubts about either producing

adequate performance on exams, being

evaluated favorably by significant others or

being able to control their feelings so that

they do not feel overwhelmed by them”

(p.78). Test anxiety is a serious problem for

many students it has been described as the

most powerful obstacle to learning in an

educational setting (Matthew, & Scott,

2000). Hambree (1988 as cited in Everson

and Millsap 1991) stated that it has been

linked to fear of negative evaluation, dislike

of testing and less effective study skills and

has been identified as one of the factors that

impair academic performance.

Miss.S.Kamalaveni* Mr.T.Balakrishnan** Mrs.C.Revathi***

A STUDY ON TEST ANXIETY AND ACADEMIC PERFORMANCE AMONG

ENGINEERING STUDENTS AT SIVAKASI

The current research investigates gender differences in test anxiety level and

academic performance of engineering students. A sample of Engineering 120 students (60

males and 60females) was drawn from the Engineering College within the age range of 17-

24 years. Purposive sampling technique was used. The findings of this research have

implications for helping professionals and academia in addressing the test anxiety of the

students in higher education so that timely and effective counseling and therapeutic

interventions could be introduced in Engineering colleges and universities.



Review of Literature

Ergene (2003) stated in his study that

compound treatments, which combine skills,

focused approaches with behaviour or

cognitive approaches were the most

effective. In the study done by However,

Barrett, and Turner (2001; Gregor, 2005)

few trials of universal and evidence based

programs for preventing anxiety in young

people have been found to date. They

defined the concept of universal programs as

interventions, which can be used for the all

population, with their risk status

disregarded. The majority of research thus

far is focused mainly on adult contributors.

Another of Ergene’s (2003) assertion is that

there is an intense demand for the formation

of helpful test anxiety reduction methods for

primary, middle and high school students as

most of the current programs are designed

for college and university

students.Furthermore, another factor that

should be considered in the treatment of test

anxiety as noted by Zeidner (2007), is that

research on anxiety interventions may be

considerably benefited by the perception of

test-anxious individuals’ profile. Indeed,

examining the related significant predictors

of anxiety make the test anxiety theories and

approaches more comprehensible, which

probably lead to the development of the best

anxiety-reduction methods (Reeve,

Bonaccio & Charles, 2008).

Methodology

This study was to learn how or to

what extent test anxiety and expectancy for

success influence academic performance in

Engineering Students. Many students suffer

from anxiety when facing difficult academic

tasks. Additionally, we have to indentify the

factor influencing the test anxiety in

academic performance. The Objective of

study is to determine the relationship

between text anxiety and academic

Performance of the students. To measure the

text anxiety and academic performance

based on the gender perspective.

The procedure used by researcher to

do their work of describing, explaining and

predicting phenomena is called as

Methodology. A method comprises the

procedures used for generating, collecting

and evaluating data. Methods are the ways

of obtaining useful for assessing

explanations. The research design adopted

for this study is Descriptive Research

Design. It is a method of research it is a fact-

finding investigation describing, recording,

analyzing and interpreting conditions that

exist. The sampling technique is used in

drawing samples from a population usually

in such a manner that the sample will

facilitate determination of some hypothesis

concerning the population. The sampling

technique used for this study is Purposive

Sampling. The purposive sample was

composed of 120 Engineering students (60

male students and 60 female students) who

met the inclusion criteria and participated in

this research. The sample was drawn from

engineering colleges around sivakasi. The

teachers cooperated in the collection of the

data from the research participants

according to the above-mentioned criteria.

Survey was conducted among

students through the questionnaire; the

individual opinion was collected from the

respondents. The sample size is 120. Their

age range is between 17 to 24 years. The



study was conducted by using both primary

and secondary data sources. However the

study relied on the primary data for the

analysis. Primary source of data is obtained

by the researcher directly from the

respondent which has not been collected

previously. Primary data are first hand

information collected through various

methods such as observation and

interviewing. The primary data was

collected through questionnaire by

surveying the mentioned sample unit.

The secondary data, on the other

hand are those which have already been

collected by someone else and passed

through the statistical process”. The

researcher collected secondary data

information’s through the company

broachers’, journals, magazines, books and

related websites. Relevant statistical tools

such as Percentage analysis ,Garrett ranking

analysis and Chi-square are used and

interpretation is done on the basis of

analysis.

Findings of Study

Demographic Profile

In the present analysis, 44% of the

respondents’ are belonging to the age group

of 26-30years, 36% are belonging to the age

group of 21-25 years and 20% are belonging

to the age group of 16-20 years.

50% of the respondents are Female

and 50% of the respondents are Male.

Respondents opinion towards the

influence of Test anxiety at Academic

performance

The above table inferred that 36% of the

respondents have opined that they are

influenced by the test anxiety often, 29% are

facing the sometime and 21% are facing

almost never.

Factors Prevailing During Test Anxiety

Using Garrett Ranking

During the survey, the respondents

were requested to rank the elements which

causes their test anxiety, and for which,

Garrett ranking method was used. The

respondents’ first rank carried the score of 8,

second rank with the score of 7and so on.

Percent Position = 100(Rij- 0.5)/Nij

i= Factor; j=Individual

Particulars No. Of

Respondents

Percentage

1 Almost

Never

25 21

2 Sometime 35 29

3 Often 43 36

4 Always

never

17 14

Total 120 100



Table: 1

Table Showing Factors Prevailing During

Test Anxiety

CHI-SQUARE TEST

H A0 : There is no significant

association between Gender and their

opinion towards test anxiety

HA1 : There is significant

association between Gender and their

opinion towards test anxiety.

The Gender wise classification of

respond

ents and

their

opinion

towards

test

anxiety

is given

in table

2, and

in order to find out the association, chi-

square test is applied.

TABLE.2

Degree of freedom = 3 Table value = 7.81

Calculated value = 15.231

As the calculated value of chi-square is

greater than table value with 3 degree of

freedom at 5% of significance, the above

null hypothesis H01 is rejected.

Element Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8

Fear 25 19 15 12 14 13 12 10

Memory status 14 17 20 10 7 13 16 23

Forgetting 16 11 15 19 12 17 20 10

Pressure 15 18 14 15 17 12 13 16

Health condition 10 13 7 17 20 18 16 19

Stress 14 12 21 14 13 13 19 14

Nervousness 16 14 18 16 19 17 12 8

Physical

discomfort 10 16 10 17 18 17 12 20

Total 120 120 120 120 120 120 120 120

Gender

Factors prevailing during test anxiety

Almost

never

sometime often Always

never

Total

Male 19 10 25 6 60

Female 6 25 18 11 60

Total 25 35 43 17 120



Conclusion

The study conclude that we live in a

test taking society and that when students

are anxious before and during tests, test

anxiety has a significant and effective

impact on their performance. To effectively

manage test anxiety students can be helped

by teachers, parents and educational

administrators through use of cognitive &

effective and behavioral strategies . it is

further suggested that the students should

be fully informed by the faculty and

administration of departments about the

nature of courses, duration of the semester

and level of commitment necessary for the

successful completion of the course. T he

students with higher test anxiety must be

indentified and treated in order to increase

their academic performance.

References

a) Business Research Methods, 9th

edition, Cooper ,Donald , New York

Tata McGraw Hill 2006.

b) Marketing Research text & case, 3rd

edition, Rajendranargundar, The

Mcgraw hill companies.

c) Arora P.N “Statistics for

Management”, Sultan Chand &

Sons, New Delhi, 1st edition2003.

d) Akca, F. The relationship between

test anxiety and learned helplessness.

Social Behaviour and Personality,

2011, 39(1), 101-112.

e) Aysan.F., Thompson.D., & Hamarat,

E. Test anxiety, Coping Strategies,

and Perceived health in a group of

high school students: A Turkish

sample. The Journal of Genetic

Psychology, 2001, 162(4), 402-411.

f) Depreew, E. A.M (1984) A profile of

test anxious student. Applied

psychology 33(2), 221-332

g) Bensoussan, M. (2012). Alleviating

Test Anxiety for Students of

Advanced Reading Comprehension.

RELC Journal, 43(2), 203–216.

doi:10.1177/0033688212449511

h) Chen, H. (2012). The Moderating

Effects of Item Order Arranged by

Difficulty on the Relationship

between Test Anxiety and Test

Performance. Creative Education, 3,

328–333. doi:10.4236/ce.2012.33052

Biography


Management Studies, Sri Vidya College of

Engineering & Technology, Virudhunagar.

** Assistant Professor, Department of



*** Assistant Professor, Department of



Date post:	27-Jul-2018
Category:	Documents
Upload:	ngodien
View:	245 times
Download:	3 times

International Research Journal of Management &...

Documents