CHAPTER - IV

PERFORMANCE EVALUATION OF
ENTREPRENEURSHIP
DEVELOPMENT PROGRAMMES
> Start-up Rate

> Effectiveness of EDPs

> Socio-economic Background and

Performance of EDP
• Personal Background of Respondents
• Social Background of Respondents
• Economic Background of Respondents
• Entrepreneurial Data
 CHAPTER - IV

PERFORMANCE EVALUATION OF
ENTREPRENEURSHIP DEVELOPMENT
PROGRAMMES (EDPs)
The process of Entrepreneurship Development involves equipping a
person with the information needed for enterprise building and sharpening his
entrepreneurial skills. The objective of entrepreneurial Development is to
motivate a person for entrepreneurial career and to make him capable of
perceiving and exploiting successfully opportunities for enterprises. One trained
Entrepreneur can guide others on how to start their own unit and how to
approach various institutions. In fact, trained entrepreneurs become catalysts of
industrial development and economic progress.

But to make the EDPs more effective, they need to be evaluated in order
to identify the deficiencies and to take corrective action. One of the important
approaches for evaluation of EDPs is the number of units started by the trainees
within a reasonable period of about two years after completion of the
programme. Thus, higher the number of units started by the trainees, more
successful will be the EDP. This is an important criterion for evaluation of
EDPs in India because, in a resource scarce economy like ours, we can ill afford
investment in training which does not produce tangible results. But training is
one input in the process of enterprise creation. There are other factors such as
the trainee, trainer, the support system and the sponsors which play a very
crucial role. A well orchestrated effort is more likely to result into enterprise
creation. Even if one of the parties involved does not respond favourably, the
outcome suffers. The results could also be affected by factors like target group,
location, project size, technology, existing infra-structure, etc. Hence, this study
is a comprehensive evaluation of EDPs in terms of the number of enterprises

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created, and the indirect impact on the person (trainee), the society and the
support system. The study analyses the rates of success and failure and also the
factors behind success or failure.

This chapter is devoted to the performance evaluation of EDPs at micro

level. The analysis is carried out in terms of the start-up rate and the factors
responsible for the success or failure of a trainee in starting an enterprise after
training.

The Start-Up Rate

Table-4.1
Performance of the Sample EDPs at a Glance
SI.
Description Number Percentage
No.
A. Sample of the Study
1. EDPs conducted during 1999-2002 in -
Davangere District 08
Chitradurga District 08 16 100
2. No. of Individuals trained -
Davangere District 616
Chitradurga District 556 1172 100
3. No. of respondents chosen for the study -
Davangere District 124
Chitradurga District 110 234 20
4. Respondents not interviewed -
Davangere District 492
Chitradurga District 446 938 80
B. Performance of respondents in terms of units
started
1. Units started 181 77.35
2. Unit not started 53 22.65
3. Actively under process 11 4.75
4. Blocked under process 18 07.69
5. Given up the idea of starting the unit 24 10.26
Total 234 100
Source: Field Survey

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 The table 4.1 gives a brief description of the EDPs, the number of
respondents chosen, and their success in terms of number of enterprises started
by the trainees. The start-up rate among the sample respondents was very high
at 77.35 per cent. The percentage of non-starters was only 22.65. Out of non-
starters, 4.75 per cent respondents were actively pursuing to start the enterprises.
Another 7.69 per cent of respondents were blocked at various stages in the
process of setting up of their ventures. This group requires effective help to join
the group of starters, otherwise they may join the group of those who have given
up the idea of starting the enterprises. 24 respondents constituting 10.26 per cent
of the respondents had given up the idea of starting the units.

Start-Up Rate by Gender

Table - 4.2
Sex-wise Distribution of Trained Unit Starters and Non-starters

Unit-starters Non-starters Total

SI.
Gender No. of No. of No. of
No. Percent Percent Percent
Respond Respond Respond
age age age
ents ents ents
1 Male 143 76.47 44 23.53 187 100
(79.00) (83.01) (79.91)

2 Female 38 80.85 09 19.15 47 100

(21.00) (16.99) (20.09)

Total 181 53 100.00 234

Source: Field Survey
Note: Figures in parenthesis are percentage to the column total

Further break up of respondents based on the gender showed that the male
respondents were 79.91 per cent while the female respondents were 20.09 per
cent.

Start-up rate among the female was high at 80.85 when compared to the
start-up rate among male respondents at 76.47 per cent. The rate of non-starters

108
was less among female (19.15%) than the male (23.53%). This finding of higher
start-up rate among female trainees is similar to the findings in an All India
study of evaluation.1 Given the socio-cultural milieu in our society, higher start-
up rate among women trainees in spite of so many hindrances is quite
encouraging. It may be interpreted that the female participants take the training
in true spirit.

Comparison of Start-up Rate with the State Averages

Table - 4.3
State-wise Start-up Rates of EDP Trainees
SI. Actual Start-Up
State
No. Rate (%) (1989)
1. Karnataka 28.12

2. Andra Pradesh 09.09

3. Kerala 35.80

4. Gujarath 33.33

5. Maharshtra 33.33
Source: Dinesh N. Awasthi, Jose Sebastian, 1996,
Evaluation of EDPs, New Delhi, Sage
Publication, P-44

Table 4.3 gives the average start-up rates of EDPs in different states in
India. According to a study the following start-up rate in India in case of general
EDPs was 25% and it was due to lack of follow up action.2

1. Awasthi and Sebastian, Op. Cit. P.40.

2. Jasmer Singh Saini and B.S. Bhatia. 1996. Impact of EDP, Journal of Entrepreneurship,
Vol.5. No.l. Jan-June. P.65.

109
 As shown by the table, the higher start-up rate of 35.80 per cent was
found in Kerala State, and the least in Andra Pradesh. When compared to these
averages the start-up rate among the sample respondents of this micro-study is
very high. However, it cannot be generalised due to limited coverage of the
study.

Effectiveness of EDPs
Though the start-up rate is fairly good indicator of the performance of
EDPs, one has also to look at the effectiveness and contribution of EDPs in order
to make a comprehensive assessment. Therefore, this segment will address the
following relevant questions -
- To what extent EDPs have been able to achieve their objectives?
- How effectively has been attained?

The First Generation Focus

Table - 4.4
Respondents by their Father's Occupation
SI. No. of Percentage to
Description
No. Respondents Total
1 Farming 52 22.22
2 Artisan 19 8.11
3 Own Business 54 23.07
4 Own Industry 18 7.69
5 Servicing 91 38.91
Total 234 100.00
Source: Field Survey

One of the major objectives of the EDPs is to create first generation

entrepreneurs. Table 4.4 presents the father's occupation of respondents.
30.33% of the respondents (farming and artisan put together) had come from
non-business background. In other words, 30.33% of the respondents had come

110
from the background of fanning and artisan. The remaining 69.67% of the
respondents had entrepreneurial background. Further breakup of this category
showed that 23.07% had come from business background, 7.69% had the
background of Industry, 38.91% had the service background. This shows that
the EDPs have not fulfilled the objective of creating the first generation
entrepreneurs. This explains fully the start-up rate which is much higher than
the state averages. This further confirms the findings of earlier studies that
entrepreneurs emerge from business communities.

Socio-Economic Background and Performance of EDP

Socio-economic variables are determinants of performance of EDP and
entrepreneurial supply. How far is it true in case of sample respondents. How
far is it true that social and economic variables influence the starting of
enterprises after training? What is the degree of relationship between social and
economic factors on successful entrepreneurship. An attempt is made here to
throw some light on these issues by analyzing the data collected through the
sample survey.

The socio-economic background of respondents is analysed under the

following heads:
1. Personal Background.
2. Social Background.
3. Economic Background.
4. Entrepreneurial data, and
5. Other factors.

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1. Personal Background of Respondents
Gender of Respondents
Table - 4.5
Gender-wise Distribution of Trained Unit Starters and Non-starters
Unit Starters Non-starters Total
SI. No. of Percen No. of Percen No. of Percen
Gender
No Respon tage to Respon tage to Respon tage to
dents Total dents Total dents Total

1. Male 143 79.00 44 83.01 187 79.91

(76.47) (23.53) (100)

2. Female 38 21.00 09 16.99 47 20.09

(80.85) (19.15) (100)

Total 181 100.00 53 100.00 234 100.00

Source: Field Survey
Note: Figures in the parentheses are percentage to the row total.

Table 4.5 gives the data about the gender of sample respondents. Out of
234 respondents, 187 respondents constituting 79.91 per cent were male and the
remaining 47 were female. The female respondents were 20.09 per cent of the
total. Though there is male bias when compared to sex composition of general
population, female percentage is significant considering their percentage in
entrepreneurial activities.

Further analysis of gender classification of respondents reveals that

76.47% of the unit starters were male. The percentage of female starters was
80.85 which is relatively high. It may be interpreted that female trainees are
more serious about the training and its purpose than the male respondents.

112
Martial Status
Table - 4.6
Marital Status of Respondents
Unit Starters Non-starters Total
SI. Marital No. of No. of No. of Percen
No status Percen Percen
Respon Respon Respon tage to
tage tage
dents dents dents Total
1. Married 116 64.08 37 69.81 153 65.38
(75.81) (24.19 (100)

2. Unmarried 65 35.92 16 30.19 81 34.62

(80.24) (19.76) (100)

3. Widow (er) - - - - - -

4. Divorce - - - - - -

Total 181 100.00 53 100.00 234 100.00

Source: Field Survey
Note: Figures in the parentheses are percentage to row total

Martial status of respondents is shown in table 4.6. 153 respondents

constituting 65.38 per cent of the total were married. Remaining 81 respondents
constituting 34.62 per cent were unmarried. There were no respondents who
were widow or widower or divorce. The table also gives information about the
martial status of unit starters and non-starters. Amongst unit starters, 64.08%
were married and 35.92 per cent were unmarried. In case of non-starters, the
percentage of married was 69.81 and unmarried 30.19. The analysis shows that
there is no proper correlation between the start-up rate and the marital status of
the respondents.

113
Respondents' Age
Table - 4.7
Age Profile of Respondents

Unit starters Non-starters Total

SI. No. of No. of No. of Percen
Age Group Percen Percen
No. Respon Respond Respon tage to
tage tage
dents ents dents Total
1. Below 25 53 29.28 21 39.62 74 31.63
years (71.62) (28.38) (100)

2. 25-30 years 72 39.77 15 28.30 87 37.17

(82.75) (17.25) (100)

3. 30-35 years 34 18.78 09 16.98 43 18.37

(79.06) (20.94) (100)

4. 35-40 years 20 11.04 08 15.10 28 11.96

(71.42) (28.58) (100)

5. 40 and 02 1.13 - - 02 0.87

above (100.0) (100)

Total 181 100.00 53 100.00 234 100.00

Source: Field Survey
Note: Figures in the parentheses are percentage to row total

Table 4.7 shows the age of respondents as at the time of survey. It is very
significant that all the respondents except two are below 40 years of age. It is in
accordance with the general finding that the people below 40 years of age are
susceptible to change. Further classification of age of respondents showed that
31.63% were below 25 years of age and another 37.17% of respondents were
between 25-30 years of age. In other words, 68.80 per cent of the respondents
were below 30 years of age. It is significant to note that majority of the
respondents who have undergone training belonged to younger generation. It
may be concluded that EDPs have fulfilled the objective of training the younger
generation for entrepreneurial pursuits.

114
 The table also reveals the age profile of unit starters and non-starters. 125
respondents out of total of 181 respondents, who have started the enterprises,
constituting 69.05 per cent, were below 30 years of age. Another 18.78 per cent
of the respondents were in the age group of 30-35. 11.04% were in the age
group of 35-40. There were only two respondents coming to insignificant 1.13%
in the age group of 40 and above. The data indicates the better start-up rate in
case of respondents who were less than 30 years of age.

The analysis of age group of non-starters reveals the same thing.

Amongst the non-starters also, a large percentage, 67.92, were below 30 years of
age. It may be interpreted that the age may not be influencing factor in starting
and non-starting the units after training.

Type of Family
Table - 4.8
Type of Family of Respondents

Unit Starters Non-starters Total

SI Type of No. of No. of No. of Percen
No family Percen Percen
Respon Respon Respon tage to
tage tage
dents dents dents Total
1 Joint 79 43.65 26 49.06 105 44.88
(75.23) (24.77) (100)
2 Nuclear 102 56.35 27 50.94 129 55.12
(79.06) (20.94) (100)
Total 181 100.00 53 100.00 234 100.00
Source: Field Survey
Note: Figures in the parentheses are percentage to row total

Joint family was traditionally considered to be a part of Hindu culture and

commonly held responsible for generally unenterprising habit of the people.1
Hence, the information about the type of family of respondents is collected and
shown in table 4.8. It reveals that 105 respondents out of 234 constituting 44.88

115
per cent came from joint families. The remaining 129 respondents accounting
for 55.12% belonged to nuclear families. Further analysis of the type of family
of unit starters shows that 102 (56.35%) respondents belonged to nuclear family
and remaining 79 (43.65%) belonged to joint family. The same trend revealed in
case of non-starters also. Out of 53 respondents 27 belonged to nuclear family
and 26 belonged to joint family.

Educational Background

Table - 4.9
Education-wise Distribution of Respondents
Unit Starters Non-starters Total
SI. No. of No. of No. of Percent
Education Percent Percent
No. Respon Respon Respond age to
age age
dents dents ents Total
A. Non- technical
Below SSLC 26 14.36 11 20.75 ' 37 (100) 15.81
(70.27) (29.73)
SSLC 104 57.46 33 62.26 137 58.55
(75.91) (24.09) (100)
PUC 28 15.47 05 9.43 33 (100) 14.10
(84.84) (15.16)
Degree 03 1.66 02 3.77 05 (100) 2.14
(60%) (40%)
PG degree - - - - - -
Total (A) 161 88.95 51 96.23 212 90.60
B. Technical 20 11.05 02 3.77 22 (100) 9.40
(90.90) (9.10)
181 53 234
A+B = total 100.00 100.00 100.00
(77.36) (22.64) (100.00)
Source: Field Survey
Note: Figures in the parentheses are percentage to the row total

3. Asim Choudhary. Private Economic Power in India : A Study on Genesis and

Concentration. New Delhi. Peoples Publishing House. 1975. P.80.

116
 Education is said to be an important variable which influences the
performance of EDP and the supply of entrepreneurship. While enough evidence
is accumulating to show the importance of education as a factor in economic
development, such evidence has not been coming forth in considerable depth in
respect of the developing economies like ours. There Enormous expansion has
been taken place in educational facilities in India in the post - independence
period. Studies are being undertaken by economists and planners to throw light
on the relationship between the educational attainment of individuals and its
effect on start-up and performance of the EDPs.

Information about the formal education levels of respondents is presented

in table 4.9. 90.60 per cent of respondents had pursued non-technical education
and the remaining 9.40 per cent of respondents had technical education. Further
analysis of this data showed that a majority of 58.55 per cent of total respondents
had studied upto S.S.L.C. The next highest percentage of 15.81 per cent
respondents had not completed the S.S.L.C. In the entire sample of 234, there
were only 3 respondents with degree qualification. It may be interpreted that in
India, entrepreneurship is not still attractive to graduates and post-graduates.

The analysis of educational background of starters and non-starters

revealed the following facts:
• The start-up rate amongst the trainees with technical education was
highest at 90.90%.

• Amongst the trainees with the PUC qualification the start-up rate was
84.84 per cent.

• The least start-up rate of 60 per cent was found among graduates.

It may be interpreted that the trainees with technical background are

better equipped to start the enterprises. Further interpretation would be the

117
individual technical background and individuals with less formal education are
more attracted towards entrepreneurship than the individual with formal non-
technical degree education.

It is clear that the individuals with higher formal education have not been
given input about entrepreneurship and still continue in the traditional mould of
seeking employment.

Fathers' Education
Table-4.10
Education Background of Respondents' Fathers

Unit starters Non-starters Total

SI. No. of No. of No. of Percen
Education Percen Percen
No. Respon Respon Respon tage to
tage tage
dents dents dents Total
1. Illiterate 62 34.25 22 41.50 84 35.89
(73.80) (26.20) (100)

2. Pre degree 107 59.11 28 52.83 135 57.69

(79.25) (20.75) (100)

3. Degree 10 5.52 03 5.67 13 5.55

(76.92) (23.08) (100)

4. Technical 02 1.12 - - 02 0.87

(100) (100)
Total 181 100.00 53 100.00 234 100.00
Source: Field Survey
Note: Figures in the parentheses are percentage to row total

The information about the educational background of respondents' fathers

is presented in table 4.10. This information is collected to find out if the fathers
education has any influence over the start-up rate. It is interesting to note that
the fathers of 57.69% of the respondents had pre-degree education and the start-

118
up percentage of these respondents to total starters was also highest at 59.11%.
Amongst the respondents whose fathers' education was pre-degree, the start-up
rate was the highest at 79.25%. The start-up rate amongst the trainees having
fathers with degree education was second highest at 76.92%. Two respondents
in the sample of starters had fathers who had technical education and both of
them had started enterprises.

The start-up rate among the respondents whose fathers were illiterates
was the least at 73.80%. Hence, it may be concluded that the educational
background of the fathers of the trainees influences the start-up rate.

Fathers Occupation
Table-4.11
Occupational Background of Respondents' Fathers

Unit Starters Non-starters Total

SI. No. of No. of No. of Percen
Occupation Percen Percen
No. Respon Respon Respon tage to
tage tage
dents dents dents Total
1. Farming 40 22.09 12 22.64 52 22.22
(76.92) (23.08) (100)
2. Artisan 14 7.73 05 9.43 19 8.11
(73.68) (26.32) (100)
3. Own 41 22.65 13 24.52 54 23.07
business (75.92) (24.08) (100)
4. Own 18 9.94 - - 18 7.69
industry (100) (100)
5. Servicing 68 37.59 23 43.41 91 38.91
(74.72) (25.28) (100)
Total 181 100.00 53 100.00 234 100.00
Source: Field Survey
Note: Figures in the parentheses are percentage to row total.

119
 To find out whether the occupation of the fathers had influencing effect
on the start-up rate, the information of the fathers' occupation is collected and
shown in table 4.11.

As revealed by the table, the highest percentage of respondents at 38.91

had fathers whose occupation is servicing. The next highest percentage of
respondents at 23.07 had fathers with business. And the third highest percentage
of respondents at 22.22 had fathers with occupation of farming. The table
further revealed that there is a nexus between the start-up rate and the
occupational background of the respondents

All the 18 respondents whose fathers were already in industry had started
the enterprises. The start-up rate has not been 100% in other cases though the
rate is significant. In other words, there were non-starters in case of respondents
whose fathers occupation was other than industry though less significant. It may
be inferred that occupational background influenced the start-up rate.

2. Social Background
Religion of Respondents
Table-4.12
Respondents' Religion
Unit Starters Non-starters Total
SI. No. of No. of No. of Percent
Religion Percenta Percenta
No. Respond Respond Responde age to
ents ge ents ge nts Total
1. Hindu 168 92.81 48 90.56 216(100) 92.30
(77.77) (22.23)
2. Muslim 12 6.62 05 9.44 17 (100) 7.26
(70.58) (29.42)
3. Christian 01 (100) 0.57 - - 01 (100) 0.44
Total 181 100.00 53 100.00 234 100
Source: Field Survey
Note: Figures in parentheses are percentage to row total

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 Table 4.12 gives information about the religion of respondents. 92.30%
of the respondents belonged to Hindu religion and 7.26% belonged to Islam.
Only one respondent was Christian and he had started the enterprise. Amongst
the Hindu, the start-up rate was 77.77% which is slightly higher than start-up
rate among the Muslim respondents at 70.58%. It may be wrong to interpret that
100% of the Christians in the sample started the enterprise because their number
in the sample was insignificant

Respondents' Caste Category

Table-4.13
Caste Background of Respondents

Unit settlement Non-settlement Total

SI. No. of No. of No. of Percen
Category Percen Percen
No. Respon Respon Respon tage to
tage tage
dents dents dents Total
1. SC 36 19.88 08 15.09 44 18.80
(81.81) (18.19) (100)
2. ST 19 10.51 09 16.99 28 11.97
(67.85) (32.15) (100)
3. General 126 69.61 36 67.92 162 69.23
(77.77) (22.23) (100)
181 53 234
Total 100.00 100.00 100.00
(77.36) (22.64) (100)
Source: Field Survey
Note: Figures in the parentheses are percentage to row total

Caste and social community is considered as important social

determinants of entrepreneurial supply and performance through their influence
on a person's ability to convert competitive challenges in to employment.

One of the objectives of EDPs is to spread entrepreneurial spirit among

the different segments of the society. Hence, the information on the caste

121
category of respondents is collected and presented in the 4.13. The table reveals
that 69.23 per cent of respondents belonged to general category and out of the
remaining, 18.80 per cent were Scheduled Castes and 11.97% were Scheduled
Tribes. Though the percentage of respondents in general category was highest
at 69.23%, the percentage of Scheduled Caste and Scheduled Tribes is quite
significant at 30.77 per cent considering their historical background. The start-
up rate and category of respondents also revealed interesting thing. Among the
Scheduled Castes, the start-up rate was highest at 81.81 per cent followed by
general category at 77.77 per cent. Relatively less start-up rate was noticed
among the Scheduled Tribes.

Respondents Mother Tongue

Table-4.14
Mother Tongue of Respondents
Unit Starters Non-starters Total
SI. No. of No. of No. of Percen
Language Percen Percen
No. Respon Respon Respon tage to
tage tage
dents dents dents Total
1. Kannada 170 93.92 48 90.56 218 93.16
(77.98) (22.02) (100)
2. English 01 0.55 - - 01 0.42
(100) (100)
3. Hindi 10 5.53 05 9.44 15 . 6.42
(66.67) (33.33) (100)
4. Others - - - - - -

Total 181 100.00 53 100.00 234 100.00

Source: Field Survey
Note: Figures in the parentheses are percentage to row total

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 Table - 4.14 reveals the information about the Mother Tongue of
respondents. Quite naturally the mother tongue of 218 (93.16%) respondents out
of 234 was Kannada. Mother tongue of 15 respondents was Hindi and 1
respondent spoke English. The start-up rate was also highest amongst the
Kannada speaking respondents. Since the official language of the state was
Kannada a large number of people spoke Kannada. It is difficult to establish the
influence of language and the start-up rate, though the start-up rate amongst the
Hindi speaking respondents was relatively less at 66.67%.

Location of Respondents
Table-4.15
Locational Distribution Respondents

Unit starters Non-starters Total

SI. No. of No. of No. of Percen
Location Percen Percen
No Respon Respon Respon tage to
tage tage
dents dents dents Total
1. Rural 63 34.81 19 35.85 82 35.05
(76.82) (23.18) (100)
2. Semi urban - - - - - -

3. Urban 118 65.19 34 64.15 152 64.95

(77.63) (22.37) (100)
Total 181 100.00 53 100.00 234 100.00
Source: Field Survey
Note: Figures in the parentheses are percentage to row total

Potential entrepreneurs with an urban background have better exposure to

business environment and access to information regarding EDP, Govt, facilities,
etc. Hence, they are better equipped to take up an entrepreneurial activity
compared to their rural, semi urban counter parts.

123
 This is clear from table 4.15. 64.95% of the respondents were located in
urban area and remaining 35.05% were located in rural area. Out of 181
respondents who started the enterprise, 118 (65.19%) of respondents were
located in urban area and the remaining 63 respondents (34.81%) were located in
rural area. The start-up rate was higher at 77.63% among the urban respondents.
It was 76.82% among the rural respondents.

Rural EDPs are rather a recent phenomenon. Keeping in view the

potential and need of Entrepreneurship development in rural areas in order to
exploit vast untapped opportunities, it will be only appropriate to give a real
thrust to Rural Entrepreneurship Development Programmes.

3. Economic Background
Family Income
Table-4.16
Family Income of Respondents
Unit Starters Non-starters Total
SI Income Category Percent
No. of No. of No. of
No (Rs. per annum) Percent Percent
Respon Respon Respon age to
age age
dents dents dents Total
1. Less than 50,000 65 35.91 23 43.39 88 37.60
(73.86) (26.14) (100)
2. 50,000 - 75,000 44 24.30 16 30.18 60 25.64
(73.33) (26.67) (100)
3. 75,000-1,00,000 38 20.99 06 11.32 44 18.80
(86.36) (13.64) (100)
4. 1,00,000-2,00,000 19 10.49 04 7.54 23 9.82
(82.60) (17.40) (100)
5. 2,00,000 & above 15 8.31 04 7.57 19 8.14
(78.94) (21.06) (100)
Total 181 100.00 53 100.00 234 100.00
Source: Field Survey
Note: Figures in the parentheses are percentage to row total

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 Annual family income could be an important facilitator of the start-up
rate. Family income at the time of joining EDP and unit settlement was taken in
to consideration as a indicator of the economic status and resources of the
trainees.

The data about the family income of the respondents and its influence on
the start-up rate is shown in table 4.16. The highest number of respondents (88)
constituting 37.60% of the total were having income of less than Rs. 50,000 p.a.
Another 60 respondents coming to 25.64% of the total were in the income
category of Rs. 50,000-75,000, it may inferred that a majority of 63.24% of the
respondents were in the relatively lower income category. This shows that the
objective of the EDP of spreading social spirit among the less privileged is full
filled.

The start-up rate was also highest at 35.91 of the total starters among the
respondents in the income category of less than Rs. 50,000. Combined
percentage of respondents in the income category of less than Rs. 50,000 and
between Rs. 50,000-75,000 worked out at 60.21 per cent of the total starters.
Within the income category, the startup rate was highest at 86.36 per cent among
the respondents in the income category of Rs. 75,000 to 1,00,000 and the next
highest percentage of 82.60 was among the respondents in the income category
of Rs. 1,00,000 - 2,00,000. It may be concluded that the economic background
of the respondent influences the start-up rate.

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Family Occupation
Table-4.17
Family Occupation of Respondents
Unit Starters Non-starters Total
SI. No. of No. of No. of Percenta
Family Occupation Percent Percent
No. Respon Respon Respon geto
age age
dents dents dents Total
1. Traditionally 28 15.46 09 16.98 37(100) 15.81
farming (75.67) (24.33)
2. Traditionally 58 32.04 18 33.96 76 (100) 32.47
business (76.31) (23.69)

3. Traditionally 26 14.36 05 9.43 31 (100) 13.24

industry (83.87) (16.13)

4. Traditionally 69 38.14 21 39.63 90(100) 38.48

service (76.66) (23.34)

Total 181 100.00 53 100.00. 934 100.00

Source: Field Survey
Note: Figures in the parentheses are percentage to row total

Often it is said that a person with the background of business or industry

is more likely to succeed in unit starting than the person who does not have this
privilege.

The traditional family occupation of 90 respondents (38.48) out of 234

were servicing. The next highest percentage of respondents was from business
background (76). The start-up rate amongst the respondents within this
traditional occupational category is also shown in the table 4.17. It may be noted
that the start-up rate was relatively higher among the respondents with
traditional industrial background followed by traditional servicing (76.66%) and
traditionally business background (76.31%). It is clear that industrial
background is still the facilitating factor for starting enterprises.

126
Previous Work Experience
Table-4.18
Previous Work Experience of Respondents
Unit Starters Non-starters Total
SI. Previous No. of No. of No. of
No. Experience Percent Percent Percentage
Respon Respon Respon
age age to Total
dents dents dents

1 No Experience 16 8.83 05 9.43 21 8.97

(76.19) (23.81) (100)

2 Up to Three Years 134 74.03 45 84.90 179 76.49

(74.86) (25.14) (100)

3 Three Years and 31 17.14 03 5.67 34 14.54

above (91.17) (8.83) (100)

Total 181 100.00 53 100.00 234 100.00

Source: Field Survey
Note: Figures in the Parentheses are percentage to row total.

It is often argued that, work experience in concerned field has a

significant bearing on the success of establishment of enterprises. Potential
Entrepreneurs with EDP training and also previous work experience are better
equipped for managing and controlling units efficiently and effectively. It is
likely to help such people in unit launching and expansion of their business.

The previous work experience of the respondents is given in table 1.48. It

is significant to note that a vast majority of the respondents had previous work
experience. Their number was 213 out of 234. It accounted for 91.03% of the
total sample percentage of respondents. Without any experience the percentage
of respondents was mere 8.97%. In the category of previous work experience of
three years and above, a significant influence on the start-up rate could be seen.
The finding of the study also proves that the previous work experience
significantly influences the start-up rate. This clearly explains the start-up rate
in the sample selected for the study at 77.35% of the total.

127
Activity Chosen for Training
Table-4.19
Activity Chosen for Training and the Start-up Rate
Unit Starters Non-Starters Total
SI. No. of No. of
Activity chosen No. of Percent
No. Percent Percentage
Respon Respon Respon
age age to Total
dents dents dents

1 Trade 70 38.67 12 22.64 82 35.04

(85.36) (14.64) (100)
2 Manufacturing 13 7.18 06 11.32 19 8.11
(68.42) (31.58) (100)

3 Service 98 54.15 35 66.04 133 56.85

(73.68) (26.32) (100)

Total 181 100.00 53 100.00 234 100.00

Source: Field Survey
Note: Figures in the Parentheses are percentage to row total

As shown in table 4.19 activity chosen by 56.85% of the total was

servicing followed by trade at 35.04 per cent. Among the starters, 54.15% were
in servicing and 38.67% were in trading. But within the activity chosen, the
start-up rate was highest at 85.36% in trading activity followed by 73.68% in
service activity. In manufacturing activity, start-up rate was 68.42%. It may be
inferred that the trading and servicing activity require relatively less capital and
expertise than the manufacturers. That's why the start-up rate was higher in
trading and servicing than in marketing activity.

128
 Table - 4.20
Activity-wise Trained Starters and Non-starters
Unit starters Non-starters Total
SI Percen
Activity Percen Percen
No Number Number Number tage to
tage tage
Total
1. Cycle/Auto Rickshaw/Repairing
/hiring 36 76.59 11 23.41 47 100

2. General Provision stores 23 82.14 05 17.86 28 100

3. Dairy/sale of milk Products 16 80.00 04 20.00 20 100

4. Grocery shop 09 81.81 02 18.19 11 100

5. Ready made Garments 06 85.71 01 14.29 07 100

6. Catering and hotel 04 80.00 01 20.00 05 100

7. Bakery 02 100.00 - - 02 100

8. Tailoring/ knitting 09 90.00 01 10.00 10 100

9. Xerox/STD/ DTP centre 07 77.77 02 22.23 09 100
10. Beauty parlor 05 83.33 01 16.67 10 100

11. Flour mill/Masala preparation 04 57.14 03 42.86 07 100

12. Electrical Shop/Wiring/repairing 07 87.50 01 12.50 08 100

13. Photo studio 04 66.66 02 33.34 06 100

14. Cloth/textile business 05 71.42 02 28.58 07 100
15. Carpentry - - 01 100.00 01 100
16. Medical Shop 02 100.00 - - 02 100
17. Crusher 02 50.00 02 50.00 04 100
18. Arecanut Business 06 100.00 - - 06 100
19. Laundry/ dry cleaning 03 100.00 - - 03 100
20. Fancy Stores 03 60.00 02 40.00 05 100
21. Homeopathy 01 100.00 - - 01 100
22. Stationery mart 05 100.00 - - 05 100
23. Sheep and Goat Rearing 03 100.00 - - 03 100
24. Miss services-Dish Antenna, Foot 19 12
- 38.71 31 100
wear T.V. repairs etc (61.29) 38.71
181
Total - 53 100 234 -
(100)
Source: Field Survey

129
 Activity wise data of starters and non-starters is presented in table - 4.20.
The start-up rate was 100% in case of bakery, medical shop, Areca nut business,
Dry cleaning, homeopathy, Stationery mart and sheep and Goat rearing. The
start-up rate was 90% incase of tailoring, 87.50% incase of electric wiring
85.71% in case of ready made garments 83.33% beauty parlour, 82.14% incase
of general provision stores, 81.81% incase of Grocery shop, so on. Very least of
50% was found in case of crusher became it requires heavy outlay.

4. Entrepreneurial Data
Year of Establishment of Units
Table-4.21
Year of Establishment of Units
Unit Starters
SI.
Year Percentage
No. Number
to Total
1 1999 31 17.12
2 2000 34 18.78
3 2001 43 23.75
4 2002 73 40.35
Total 181 100.00
Source: Field Survey

The year of establishment of an enterprise throws light on the nature of

entrepreneurial ability and performance. Generally, industrial or manufacturing
units faces a some problems in the first few years after its establishment. As a
matter of fact entrepreneurial ability and effect of EDP lies in successfully
getting over these problems and putting on enterprise on an even keel.

From the above table 4.21, it is clear that, if we draw a line at the year of
2001, 116 units came into existence. Prior to the 2001, 65 units came into

130
picture. It clearly indicate that, establishment of an unit requires some time after
completing EDP, but it is purely depend on the general nature of the activity.

Time Taken to Start the Unit

Table - 4.22
Average Time Taken to Start an Unit
SI. Percentage
Average time taken Number
No. to Total
1 Less than 6 months 53 29.28
2 6 months-1 years 70 38.67
3 1 year - 2 years 50 27.62
4 2 years and above 08 4.43
Total 181 100.00
Source: Field Survey

Table 4.22 gives information about the average time taken to start an unit.
123 respondents (67.95% of the respondents) started their own units within a
year. 50 (27.62%) of the respondents started their own units in 1-2 year period of
time. Remaining 8 (4.43%) of the respondents started their own unit in 2 years
and above period of time. It clearly states that, most of the respondents starter
their units within a year after completing the training programme.

Types of Ownership of Enterprises

Table - 4.23
Types of Ownership
SI. Percentage
Forms of ownership Number
No. to Total
1 Sole proprietorship 172 95.02
2 Partnership 07 3.86
3 Joint Stock companies - -

131
 4 Co-operative 01 0.55
5 Private limited 01 0.57
Total 181 100.00
Source: Field Survey

It is interesting to note that a majority of 172 (95.02%) respondents

owned, controlled and managed their units. Partnership concerns were only
7 (3.86%). One interesting point to be noted about the partnership firms is that
most of them were family units. 1(0.55%) unit was run on the co-operative
basis, 01(0.57%) unit was run as a private limited company. The absence of
joint-stock companies is understandable as all the units from which the sample
was drawn belongs to the small scale sector.

The problem of identifying the entrepreneur arose in the case of these

partnership. But, the problem did not prove to be a serious one because only one
of the partners was actually making all the decisions and assumed the leadership
role. The criteria of ownership and major decision making authority are applied
for identifying the entrepreneur in an establishment.

Initiation of the Unit

Table - 4.24
Classification of Respondents on the Basis of
Initiation to Start the Unit

SI. Percentage
Description Number
No. to Total
1 Self started 163 90.05
2 Inherited 18 9.95
3 Transferred - -

Total 181 100.00

Source: Field Survey

132
 Table 4.24 clearly shows that, most of potential entrepreneurs
163(90.05%) started their units with their own efforts compared to that of units
which were inherited 18(9.95%)

Registration of Units
Table - 4.25
Registration of Units
SI. Percentage
Description Number
No. to Total
1 Registered 128 70.71
2 Unregistered 53 29.29
Total 181 100.00
Source: Field Survey

Table 4.25 gives information about registration of units. About 128

(70.71%) of the entrepreneurs registered their small scale units with different
authorities to get some benefit from the government whereas 53(29.29%) of
entrepreneurs did not take the risk to register their units.

Health of the Unit

Table - 4.26
State of Health of the Units
SI. Percentage
State of health Number
No. to Total
1 Good 114 62.98
2 O.K 59 32.59
3 Bad 08 4.43
Total 181 100.00
Source: Field Survey

Table 4.26 shows the respondents opinion about the state of health of the
units. 114 (62.98%) units were in good state of health and operating successfully

133
and running with continuous cash profit. About 59(32.59%) of the units were
running at the break even level. About 8 (4.43%) units were making cash losses.
The rate of sickness among the EDP led ventures is far less.

The shortage of working capital, non-cooperation of the funding agencies,

not buying small units products etc are some of the internal and external reasons
for the sickness. Managerial incapabalities of the entrepreneurs also add to it.

5. Other Reasons
Table - 4.27
Factors Influencing to Start a Unit

SI. Percentage
Factors Number
No. to Total
1 Family Environment 25 13.81

2 Problems of Unemployment 27 14.91

3 Utilisation of Government incentives 34 18.78

4 Lead independent life 48 26.51

5 Make more money 21 11.60

6 Don't like work with others 26 14.39

Total 181 100.00

Source: Field Survey

Table 4.27 gives the factors which motivated individuals to enter into
entrepreneurship. 48 respondents (26.51%) wanted to lead an independent life
and 34 (18.78%) of the respondents started the unit mainly to utilise the
Government incentives.

134
 Table - 4.28
Reasons for Choosing a Particular Line of Activity
SI. Percentage
Reasons Number
No. to Total
1 High profitability 58 32.04

2 No competition 40 22.09

3 Easy marketability 71 39.22

4 Any others 12 6.65

Total 181 100.00

Source: Field Survey

Table 4.28 lists the reasons for choosing a particular line of activity, 39.22
per cent of the respondents were driven by 'easy marketability' and another 32.04
per cent chose the line of activity due to high profitability.

Conclusion
It may be concluded that the performance evaluation of EDPs in the study
area showed a fairly good success. Socio-economic background of successful
and unsuccessful trainees has revealed interesting findings which are
summarised in the last chapter.

135