Descriptive analysis

In this study, 95% of the respondents are men and 5% are women. It has been observed all the respondents are between 25-35 years of age since they are young entrepreneurs. Graphical representation of the survey regarding the age is given below. Graph showing marital status of the respondents:

Regarding qualification it is observed that 80% of the samples are graduates, three respondents are post graduates, four respondents are 12th pass and only one person has done matriculation. From this it is inferred that almost all respondents are educated and are capable of taking informed decisions. Table showing qualification of the respondents:
Qualification No of Samples Percentage

Matriculation 12th pass Graduation Post-Graduation and above

1 4 32 3

3% 10% 80% 8%

Family income of the respondents constitutes 40% in Rs5Lacs to Rs15Lacs bracket and 38% in Rs1Lac to Rs5Lacs bracket. Hence most of them are in middle and upper middle class segment. 18% of them are in the upper class segment between Rs15Lacs to Rs50Lacs segment and 5% in the highest income segment above Rs50Lacs. Also its observed from the study that 38% of the entrepreneurs have started the business or made expansion with more than 50% of the initial amount from their own personal funds. Nearly 20% of them have chipped in between 25% and 50% of the initial amount as capital. Less than 25% of initial contribution from own funds constitutes 43% of the total sample who mainly depended on bank loans for proceeding with their new venture. Hence it can be inferred that banks are offering a higher loan to value ratio based on the collaterals produced by the borrowers. Same is graphically represented below: Pie Chart showing percentage of initial amount raised from own funds

Table showing the amount of loan taken by the respondents:

Amount in Rs No of Samples Percentage

Below Rs 5 Lakhs Rs 5-15 Lakhs Rs 15-30 Lakhs Rs 30-50Lakhs Above 50 Lakhs

14 5 12 7 2

35% 10% 30% 18% 5%

Pie chart showing the number of respondents who took loan providing collaterals:

Table showing the purpose of the loan among sample population:

Purpose No of Samples Percentage

Start-up Business Expansion Table showing occupation of applicants father:

Occupation

5 35

13% 88%

No of Samples

Percentage

Govt Job Self-employed Unemployed/Retired Private Job

4 20 10 6

10% 50% 25% 15%

From the above tables and pie chart we observe that all the respondents fall in the SME loan segment. Nearly 75% of the sample population has taken the business loan by providing collaterals which means banks are promoting secured business loans to avoid Net Performing Assets. Also 88% of the respondents have taken loan for business expansion and 13% entrepreneurs taking loan for starting up new business. This correlates with the information from the above table showing the occupation of their father. Nearly 50% of respondents father are self-employed and all these respondents have taken loan for business expansion. Its observed that their father being selfemployed has a positive correlation with the respondents availing business loan.

Pie Chart showing respondents friends or relatives availing loan for starting new business

Pie chart showing preference of respondents to borrow from friends/family rather than fund your business requirements externally

Family Structure of respondents

Table showing the number of dependents of the respondents:

No of Dependents No of Samples Percentage

Between 1 and 2 Between 2 and 3 More than 4 No dependents

19 16 1 4

48% 40% 3% 10%

Table showing the people being consulted by respondents before taking financial decisions Family 28% 11 Close Friends/ Relatives 63% 25 Business Circle 10% 4 No One 0% 0

Table showing decision maker in the family of the respondents: Father 17 Mother 1 Spouse 1 Relatives 1 Self 20

43% 3% 3% 3% 50%

Table showing the community of respondents: Marwaris Jains Brahmins Others

23 3 8 6

57% 8% 20% 15%

Pie chart showing whether family pressurize for foreclosure of the loans in case respondents have funds available in due course:

Pie chart showing the type guarantor for the business loan:

Pie chart showing whether the respondents are finding hard to repay the loan:

Have you availed any other bank loan before?

Table showing the preference of selecting banks by respondents while taking business loans: Pvt Sector Banks 53% 21 Public Sector Banks 45% 18 Other Financial Institutions 0% 0 No Preference 3% 1 Table showing further preference criteria of respondents while choosing banks: Trust 35% 14 Service Low Rates Reputation 17 31 2 43% 78% 5%

Pie chart showing whether respondents are maintaining primary account where the loan is held:
P

Table showing media influence on respondents while selecting business loans: Friends/Family Newspaper TV Ads Others 17 6 14 3 43% 15% 35% 8%

Pie chart showing respondents response whether the process of loan sanctioning and disbursal takes a lot of time and often delays your project?

Were you required to keep any collateral for the loans?

Pie chart showing whether the respondents suggest others to start a business by taking loan:

Table showing further reasons for suggesting others not to take business loans: Taking Loan is not good 0% 0 EMI is compulsory Interest Rates are high Mental Pressure 4 0 7 33% 0% 58%

Table showing respondents preference to take loans from public sector banks or private banks: Pvt Sector Banks 43% 17 Public Sector Banks 23 57%

Pie chart showing the satisfaction level of respondents with the banks after taking business loans:

Pie chart showing the reaction of respondents to the question whether the banks encourage new young entrepreneurs:

What is your familys overall attitude towards availing loans for business purpose?

Pie chart showing attitude of respondents family towards business loans: