Description
Description around barriers of entrepreneur in rural area n.muruganantham, g.natarajan.
~ 621 ~
ISSN Print: 2394-7500
ISSN Online: 2394-5869
Impact Factor: 5.2
IJAR 2015; 1(7): 621-624
www.allresearchjournal.com
Received: 08-04-2015
Accepted: 11-05-2015
N. Muruganantham
Ph.D. Research Scholar, Dept.
of Business Administration,
Annamalai University,
Annamalai Nagar – 608 002
G. Natarajan
Assistant Professor, Dept. of
Business Administration (DDE
WING), Annamalai
University, Annamalai Nagar
– 608 002
Correspondence:
N. Muruganantham
Ph.D. Research Scholar, Dept.
of Business Administration,
Annamalai University,
Annamalai Nagar – 608 002
Barriers of Entrepreneur in Rural Area
N.Muruganantham, G.Natarajan
Abstract
Entrepreneurs face a wide variety of barriers and challenges throughout the life and growth of their
entrepreneurial barriers. This study expands the knowledge base on rural entrepreneurs’ needs,
specifically their needs in terms of service areas and service delivery method preferences. New
customers, growth benefits and tools, market expansion, general marketing, and networking skills. The
effects of entrepreneurial stage and years in business on entrepreneurial support needs are also
examined. The paper argues that social arrangements prevailing in rural partly explain these results.
Consequently, the main aim of this study is to investigate barriers and hurdles in choosing
entrepreneurship. Using the strategically tools; Percentages Analysis, ‘t’-Test, AnovaTest, Analysis of
Variance having taken 95 number of respondents from entrepreneurs in sivagangai.The findings
suggest that lack of skills, lack of assistance, lack of capital, lack of awareness, and fear of future are
major hurdles to starting a business. This study suggests that Government, Nonprofit organizations,
Universities and other influential institutions and sectors should endeavor for providing better training,
skills and knowledge as well as good environment to feel some comfort in launching a new business.
Keywords: Barriers, Skill, Rural Communities, Entrepreneur, Training, Business Education,
Introduction
Entrepreneurship is the serious choice for young people who are facing double digit
unemployment in most part of the world. Currently, traditional careers and opportunities for
employment and living are drying up at faster pace. Therefore, most of young people are
taking initiatives to start their own businesses and a lot of assistance and support is provided
in order to create supportive and encouraging environment. In literature, there is no single
definition for entrepreneurship. Although, 250 years have passed, there is yet to introduce a
single definition for entrepreneurship since Cantillon provided definition about it.
Entrepreneurship is the process to create wealth for individual and group in a dynamic
environment
[1]
(Sathiabama, 2010)
[2]
(Herrington et al. (2009) pointed out entrepreneurship
is the process converting low production resources into higher productive and yield with
taking some manageable risk.
Entrepreneurship can be separated at different stages, like cognitive and behavioral stages,
these provide information why some people are involve in and why someone not
[3]
(Baron,
2004). Similarly, entrepreneurship can be explained in two different ways, one is pre-birth
also known as entrepreneurial intention or latent or nascent entrepreneurship (means people
who are motivated and have intention to start the business) and post-natal stages or actual
entrepreneurship (people who are running their business)
[4]
(Van Gelderen et al., 2005)
[5]
(Masuda, 2006). These phases of entrepreneurship may have further precursor
[6]
(Van Der
Zwan et al., 2010). Latent entrepreneurship can be defined as clear preference of being self-
employed over work as an employee
[7]
(Blanchflower et al. 2001)
[8]
(Grilo and Irigoyen,
2006). According to
[9]
(Bird (1989) entrepreneurial intention is the state of mind which
provides clear direction and guidance to someone to develop and run a new venture. There
are a lot of studies which confirm the relationship of intention and actual behavior
[10]
(Shavor & Scott, 1991).
Entrepreneurs Face Problem and Challenges
Entrepreneur faces problems and challenges at the start of business. The first main challenge
being faced is education. Education plays an important part in the success of venture.
Education is correlated with lower start-up costs of enterprise and high wealth. Education
influences the greater productivity of a business and entrepreneurial abilities. It is profitable
Int ernati onal Journal of Appl i ed Research 2015; 1(7): 621-624
~ 622 ~
International Journal of Applied Research
for entrepreneur as compared to employees. Second problem
is social networking in which women face a big gap in the
male dominant society. Weak networking is based on
religious beliefs. A social network is used to identify the
relationship between individuals. Entrepreneurs face barriers
in social bonding. The first part includes Introduction in
which we will discuss the concept of entrepreneurs,
entrepreneurship and comparative challenges of male and
female, significance of the study and objectives of study. The
second part is focused on Literature review of relevant
studies. In third part we will give a complete theoretical
framework of concerned study. The fourth part delivers the
methodology. Fifth chapter describes the analysis of
measured data. Finally in sixth chapter we will discus,
findings, conclusion suggestions and solutions of problems
for entrepreneurs.
Review of Literature
Gilbert (2014) study examined the barriers to youth
entrepreneurship in rural areas of Ghana specifically the
challenges encountered by youths who want to set-up their
own businesses. The study collected both primary and
secondary data using semi-structured questionnaires,
interviews and review of empirical and theoretical literatures.
Youths in Komenda, Edina, Eguafo, Abirem Municipal
Assembly was the target population. Purposive sampling
technique was applied to select 240 respondents. Descriptive
statistics which involves simple percentage, graphical charts
and illustrations was purposefully applied in data
presentations and analysis. The findings of the study reveal
youths perceive lack of capital, lack of skill, lack of support,
lack of market opportunities and risk as the main obstacles to
entrepreneurial intention. It is recommended that Ghanaian
youths be equipped with entrepreneurial skills to move them
to the next level of development.
Ahmad et al. (2013) studied the Analysis of barriers to
entrepreneurship in Small and Medium-sized Enterprises.
Today entrepreneurship is considered as the economic
driving engine for developed and developing countries and
most countries have invested considerably on
entrepreneurship development. The entrepreneurship
development in a community could provide sustainable
employment and economic development. It should be noted
that entrepreneurship development has always been
encountered different challenges and barriers. The present
article is aimed to detect and classify the barriers of
entrepreneurship development in Iranian SMEs and
determine the importance of each barrier. Analyzing 28
detected barriers in the present study show that lack of
sufficient knowledge in management skills, business
management, lack of adequate investment to start and retain
a business, difficulty in finding information about markets,
products and prices, troublesome rules obtaining bank loans,
and the difficulty in recruiting good and reliable staff are the
most important barriers and challenges of corporate
entrepreneurship development in Iranian SMEs.
Bahareh et al. (2012) studied the rural entrepreneurship can
be considered as one of the solutions to reduce poverty,
migration and develop employment in rural environments. In
this study, the necessity of sustainable entrepreneurship, the
effective factors and the barriers to entrepreneurship in rural
area will be described. In this regard, a model has been
considered to create a sustainable rural entrepreneurship area
by establishing a logical connection between the effective
factors in entrepreneurship. Some of the most important
challenges that can be pointed out are: lack of access to
capital and facilities, problems in supplying goods and
services, emphasis on an industry or particular business, low
possibility risk in villages and lack of supporting
organizations. Review and analysis of rural entrepreneurship
in order to achieve sustainability. This research in
implementation process is qualitative and in objective is
descriptive and then analytic. The results indicate that
comprehensive development can never be obtained without
rural development and in order to achieve this goal the best
investment is creating a context for sustainable
entrepreneurship and its promotion in rural area since the
entrepreneurship has this ability to identify resources,
opportunities and problems available in the context while
devising new solutions to move toward developing of
different aspects of village and environment.
Muhammad (2010) studies the Barriers for Business
Students in Becoming an Entrepreneur in Pakistan.
Entrepreneurship is very constructive tonic for economic and
social development of a country. Intention of youth is strong
predictor for future entrepreneurial career. In Pakistan, youth
is having moderate entrepreneurial intention. Consequently,
the main aim of this study is to investigate barriers and
hurdles in choosing entrepreneurship. Using data from 114
undergraduates and graduates of management sciences and
getting response with 21 items on Likert scale. Data analysis
is mainly executed through descriptive statistics, T test,
correlation, Cronbach Alpha, and component factor analysis.
The findings suggest that lack of skills, lack of assistance,
lack of capital, lack of awareness, and fear of future are
major hurdles to starting a business. This study suggests that
Government, Nonprofit organizations, Universities and other
influential institutions and sectors should endeavor for
providing better training, skills and knowledge as well as
good environment to feel some comfort in launching a new
business.
Objective of the Study
? To analyze the Entrepreneurs face of barriers and
challenges throughout the life and growth of their
entrepreneurial.
? To suggest suitable measures for the development,
improvement and identify the Entrepreneurial in
sivagangai district.
Problem of Rural Entrepreneurship
Rural entrepreneurship is now a days a major opportunity for
the people who migrate from rural areas. On the contrary it is
also a fact that the majority of rural entrepreneurs is facing
many problems due to not availability of primary amenities
in rural areas of developing country like India. Lack of
education, financial problems, insufficient technical and
conceptual ability it is too difficult for the rural entrepreneurs
to establish industries in the rural areas. This paper makes an
attempt to find out the Problems and Challenges for the
potentiality of Rural Entrepreneurship. It also focuses on the
major problems faced by rural entrepreneurs especially in the
fields of Marketing of products, financial amenities and other
primary amenities, i.e. availability of electricity, water
supply, transport facilities and required energy etc.
~ 623 ~
International Journal of Applied Research
Financial Problems
? Paucity of Funds, Lack of Infrastructural Facilities, Risk
Element
Marketing Problems
? Competition, Middlemen
Management Problems
? Lake of Knowledge of I.T, Legal formalities
Procurement of Raw Materials
? Lack of Technical Knowledge, Poor Quality of Products
Human Resources Problems
? Low Skill Level of Workers, Negative Attitude
Methodology
The universe of the study refers to (DIC) District Industrial
Corporation office Sivagangai District. The sample size
taken to conduct the research is 95 rural people. The
respondents were selected by using convenient sampling
technique. Structured interview schedule was used for
primary data collection. Secondary data was collected from
earlier research work, various published journals, magazines,
websites and online articles. Simple Percentage Analysis,
Analysis of variance (Anova), and T- Test are the tools used
by the SPSS (Statistical package for social sciences) for data
analysis.
Result and Discussion
Table 1: Classification based on Personal Factors
S.
No
Personal Factors
No. of
Respondents
Percentage
(%)
1
Finance
Come
Family 63 66.3
Personal
Savings
6 6.3
Bank Loan 11 11.6
Credit Card
Borrowing
7 7.4
Government
Star-up Grant
8 8.4
Total 95 100.0
2
Type of
Preferred
Business
Manufacturing 29 30.5
Distributor 33 34.7
Whole Seller 21 22.1
Retailer 12 12.6
Total 95 100.0
3
Economic
Status
Poor 10 10.5
Middle Class 66 69.5
Upper Middle 14 14.7
Others 5 5.3
Total 95 100.0
4
Involvement
in Starting
The
Business
Less than 6
Months
16 16.8
6-12 Moths 44 46.3
1-3 Years 20 21.1
More than 3
Years
15 15.8
Total 95 100.0
5
Size of Your
Preferred
Business
Micro/Cottage
( 10 )
41 43.2
Small (Less
than 50)
36 37.9
Others 18 18.9
Total 95 100.0
Source: Primary Data
Inference
Thus the above table shows that majority 63.3% of the
respondents belong to the age group of family and only 6.3%
of the respondents personal saving. Majority 30.5% of the
respondents are type of business only 12.6% of the
respondent’s retailer business. Maximum 69.5% of the
respondents have middle class and only. Majority involved in
business started 46.3% of the respondents 6-12 month’s new
business. Majority size of your preferred business cottage
employee 43.3% preferred business respondents.
Table 2: ‘T’-Test between general and factors of barrier
entrepreneurial
Factors General N Mean S.D F P
Lack of family
support
Male 66 2.17 1.431
12.541 .001
Female 29 1.72 .591
Shortage of
money
Male 66 2.26 1.351
6.610 .012
Female 29 2.21 .861
Lack of other
support
(technical,
marketing,
training) from
banks
Male 66 2.08 1.256
3.063 .083
Female 29 2.52 1.455
Lack of
favorable govt.
policies relating
to small
business
promotion
Male 66 2.15 1.218
8.981 .003
Female 29 2.24 1.573
Fear of loan
Male 66 1.89 1.266
2.918 .091
Female 29 2.62 1.449
My current life
situation
Male 66 2.09 1.077
6.369 .013
Female 29 2.31 1.417
Lack of
business idea
Male 66 1.97 1.037
9.608 .003
Female 29 2.72 1.412
Lack of
personal skill
and competence
Male 66 2.11 1.178
12.051 .001
Female 29 2.52 1.661
Lack of
experience
Male 66 1.97 1.037
9.608 .003
Female 29 2.72 1.412
Inference
From the above table it is inferred that there is a significance
mean difference that exist on barrier rural based on gender
and there is no significance mean difference that exist on
hours in a day spend with male & female and difficulty in
getting work done.
Table 3: One-way analysis of variance between Age and barriers of
entrepreneurial
Age N Mean S.D F P
20-25 years 67 2.01 .977
6.676 .002
26-30 years 25 2.44 1.530
31-35 years 3 4.33 .577
Total 95 2.20 1.208
Inference
Thus the above table shows that there is a significance mean
difference that exists on entrepreneurial barriers on the basis
of age group.
Managerial Implications
Findings suggest entrepreneurial education plays an
important role in fostering entrepreneurial intentions among
rural area. Education empowers graduates to successfully
~ 624 ~
International Journal of Applied Research
plan, start, and operate a business in three phases: (1) idea
development, (2) organizing the founding of a firm and (3)
running a newly-established firm. As such, the contribution
of rural is most significant in influencing the first two phases.
Thus, the relevance of DIC office should be assessed by their
efficacy to “train” their students into becoming self-
sustaining entrepreneurs’. The implications are that rural
people curricula should be redesigned in order to stimulate
an environment that is conducive to developing positive
entrepreneurial attitudes. Particular emphasis should be
placed on female, who are observed as facing the greatest
barriers in starting and running businesses. Incorporating
real-life business training with theory will go a long way
towards supporting entrepreneurial activity. Vehicles such as
business incubators and entrepreneurship-mentorship
programmes are also encouraged.
Conclusion
Based on the study it is concluded that there is a significant
relationship between personal factors (financial come. type
of preferred business, size of preferred business, involvement
start the business, economic states) and barriers of
entrepreneurial rural area side. The relationship between
personal factors and rural entrepreneur will be an important
input in designing appropriate policies for DIC issues
Sivagangai district. The results also indicated that the rural
barrier entrepreneurship in rural people is a challengeable
one. Another interesting area of study could be the empirical
testing of the link between education and entrepreneurial
intentions. Future researchers could also consider further
exploring the different typologies of not only youths but also
the general population in terms of entrepreneurship barriers
experienced.
References
1. Baron, RA. The cognitive perspective: A valuable tool
for answering entrepreneurship?s basic „„why??
questions. Journal of Business Venturing 2004;
19(2):221-239.
2. Bird BJ. Entrepreneurial Behavior. Scott Foresman,
Glenview, IL, 1989.
3. Blanchflower DG, Oswald A, Stutzer A. Latent
entrepreneurship across nations. European Economic
Review 2001; 45(4-6):680-691.
4. Grilo I, Irigoyen JM. Entrepreneurship in the EU: To
wish and not to be. Small Business Economics 2006;
26(4):305-318.
5. Herrington M, Kew J, Kew P. Tracking entrepreneurship
in South Africa: a GEM perspective, 2009. [Online].
Available:http//www.gemconsortium.org/article (6
September 2010).
6. Masuda, Tatsuyoshi. The determinants of latent
entrepreneurship in Japan. Small Business Economics
2006; 26:227-240.
7. Sathiabama K. (n.d.). Rural women empowerment and
entrepreneurship development [Online].
Available:http://www.microfinancegateway.org/ga
(August 15, 2010], 2010.
8. Shaver KG, Scott LR. Person, process, choice: The
psychology of new venture creation. Entrepreneurship
theory and practice 1991; 16(2):23-45.
9. Van Gelderen MW, Thurik AR, Bosma N. Success and
risk factors in the pre-startup phase. Small Business
Economics, 2006; 26(4):319-335.
10. Van der Zwan P, Thurik AR, Grilo I. The
entrepreneurial ladder and its determinants. Applied
Economics 2010; 42(17):2183-2191.
11. Chimucheka T. “Impediments to youth Entrepreneurship
in rural areas of Zimbabwe”, African Journal of
Business Management 2012; 6(38):10389-10395
Available at: www.academicjournals.org/AJBM
12. Ahmadpoor Daryani, M, Erfanian A. The role and place
of entrepreneurship in reaching economic growth and
development, Economic Magazine. Monthly review of
economic and policy issues. Office of Economic Affairs,
Ministry of Economic Affairs and Assets 2007; 7(69):1-
19.
13. Maia L. Enhancing entrepreneurship in rural tourism for
sustainable regional development: The Case of
Soderslatt Region Sweden. The International Institute
for Industrial Environmental Economics (IIIEE),
International Miljo Institute, Sweden, 2002.
14. Ahmad R, Az?m P. Youth populat?on And the labour
market of pak?stan: a m?cro level study. Pakistan
Economic and Social Review (Winter 2010) 2010;
48(2):183-208.
doc_115403612.pdf
Description around barriers of entrepreneur in rural area n.muruganantham, g.natarajan.
~ 621 ~
ISSN Print: 2394-7500
ISSN Online: 2394-5869
Impact Factor: 5.2
IJAR 2015; 1(7): 621-624
www.allresearchjournal.com
Received: 08-04-2015
Accepted: 11-05-2015
N. Muruganantham
Ph.D. Research Scholar, Dept.
of Business Administration,
Annamalai University,
Annamalai Nagar – 608 002
G. Natarajan
Assistant Professor, Dept. of
Business Administration (DDE
WING), Annamalai
University, Annamalai Nagar
– 608 002
Correspondence:
N. Muruganantham
Ph.D. Research Scholar, Dept.
of Business Administration,
Annamalai University,
Annamalai Nagar – 608 002
Barriers of Entrepreneur in Rural Area
N.Muruganantham, G.Natarajan
Abstract
Entrepreneurs face a wide variety of barriers and challenges throughout the life and growth of their
entrepreneurial barriers. This study expands the knowledge base on rural entrepreneurs’ needs,
specifically their needs in terms of service areas and service delivery method preferences. New
customers, growth benefits and tools, market expansion, general marketing, and networking skills. The
effects of entrepreneurial stage and years in business on entrepreneurial support needs are also
examined. The paper argues that social arrangements prevailing in rural partly explain these results.
Consequently, the main aim of this study is to investigate barriers and hurdles in choosing
entrepreneurship. Using the strategically tools; Percentages Analysis, ‘t’-Test, AnovaTest, Analysis of
Variance having taken 95 number of respondents from entrepreneurs in sivagangai.The findings
suggest that lack of skills, lack of assistance, lack of capital, lack of awareness, and fear of future are
major hurdles to starting a business. This study suggests that Government, Nonprofit organizations,
Universities and other influential institutions and sectors should endeavor for providing better training,
skills and knowledge as well as good environment to feel some comfort in launching a new business.
Keywords: Barriers, Skill, Rural Communities, Entrepreneur, Training, Business Education,
Introduction
Entrepreneurship is the serious choice for young people who are facing double digit
unemployment in most part of the world. Currently, traditional careers and opportunities for
employment and living are drying up at faster pace. Therefore, most of young people are
taking initiatives to start their own businesses and a lot of assistance and support is provided
in order to create supportive and encouraging environment. In literature, there is no single
definition for entrepreneurship. Although, 250 years have passed, there is yet to introduce a
single definition for entrepreneurship since Cantillon provided definition about it.
Entrepreneurship is the process to create wealth for individual and group in a dynamic
environment
[1]
(Sathiabama, 2010)
[2]
(Herrington et al. (2009) pointed out entrepreneurship
is the process converting low production resources into higher productive and yield with
taking some manageable risk.
Entrepreneurship can be separated at different stages, like cognitive and behavioral stages,
these provide information why some people are involve in and why someone not
[3]
(Baron,
2004). Similarly, entrepreneurship can be explained in two different ways, one is pre-birth
also known as entrepreneurial intention or latent or nascent entrepreneurship (means people
who are motivated and have intention to start the business) and post-natal stages or actual
entrepreneurship (people who are running their business)
[4]
(Van Gelderen et al., 2005)
[5]
(Masuda, 2006). These phases of entrepreneurship may have further precursor
[6]
(Van Der
Zwan et al., 2010). Latent entrepreneurship can be defined as clear preference of being self-
employed over work as an employee
[7]
(Blanchflower et al. 2001)
[8]
(Grilo and Irigoyen,
2006). According to
[9]
(Bird (1989) entrepreneurial intention is the state of mind which
provides clear direction and guidance to someone to develop and run a new venture. There
are a lot of studies which confirm the relationship of intention and actual behavior
[10]
(Shavor & Scott, 1991).
Entrepreneurs Face Problem and Challenges
Entrepreneur faces problems and challenges at the start of business. The first main challenge
being faced is education. Education plays an important part in the success of venture.
Education is correlated with lower start-up costs of enterprise and high wealth. Education
influences the greater productivity of a business and entrepreneurial abilities. It is profitable
Int ernati onal Journal of Appl i ed Research 2015; 1(7): 621-624
~ 622 ~
International Journal of Applied Research
for entrepreneur as compared to employees. Second problem
is social networking in which women face a big gap in the
male dominant society. Weak networking is based on
religious beliefs. A social network is used to identify the
relationship between individuals. Entrepreneurs face barriers
in social bonding. The first part includes Introduction in
which we will discuss the concept of entrepreneurs,
entrepreneurship and comparative challenges of male and
female, significance of the study and objectives of study. The
second part is focused on Literature review of relevant
studies. In third part we will give a complete theoretical
framework of concerned study. The fourth part delivers the
methodology. Fifth chapter describes the analysis of
measured data. Finally in sixth chapter we will discus,
findings, conclusion suggestions and solutions of problems
for entrepreneurs.
Review of Literature
Gilbert (2014) study examined the barriers to youth
entrepreneurship in rural areas of Ghana specifically the
challenges encountered by youths who want to set-up their
own businesses. The study collected both primary and
secondary data using semi-structured questionnaires,
interviews and review of empirical and theoretical literatures.
Youths in Komenda, Edina, Eguafo, Abirem Municipal
Assembly was the target population. Purposive sampling
technique was applied to select 240 respondents. Descriptive
statistics which involves simple percentage, graphical charts
and illustrations was purposefully applied in data
presentations and analysis. The findings of the study reveal
youths perceive lack of capital, lack of skill, lack of support,
lack of market opportunities and risk as the main obstacles to
entrepreneurial intention. It is recommended that Ghanaian
youths be equipped with entrepreneurial skills to move them
to the next level of development.
Ahmad et al. (2013) studied the Analysis of barriers to
entrepreneurship in Small and Medium-sized Enterprises.
Today entrepreneurship is considered as the economic
driving engine for developed and developing countries and
most countries have invested considerably on
entrepreneurship development. The entrepreneurship
development in a community could provide sustainable
employment and economic development. It should be noted
that entrepreneurship development has always been
encountered different challenges and barriers. The present
article is aimed to detect and classify the barriers of
entrepreneurship development in Iranian SMEs and
determine the importance of each barrier. Analyzing 28
detected barriers in the present study show that lack of
sufficient knowledge in management skills, business
management, lack of adequate investment to start and retain
a business, difficulty in finding information about markets,
products and prices, troublesome rules obtaining bank loans,
and the difficulty in recruiting good and reliable staff are the
most important barriers and challenges of corporate
entrepreneurship development in Iranian SMEs.
Bahareh et al. (2012) studied the rural entrepreneurship can
be considered as one of the solutions to reduce poverty,
migration and develop employment in rural environments. In
this study, the necessity of sustainable entrepreneurship, the
effective factors and the barriers to entrepreneurship in rural
area will be described. In this regard, a model has been
considered to create a sustainable rural entrepreneurship area
by establishing a logical connection between the effective
factors in entrepreneurship. Some of the most important
challenges that can be pointed out are: lack of access to
capital and facilities, problems in supplying goods and
services, emphasis on an industry or particular business, low
possibility risk in villages and lack of supporting
organizations. Review and analysis of rural entrepreneurship
in order to achieve sustainability. This research in
implementation process is qualitative and in objective is
descriptive and then analytic. The results indicate that
comprehensive development can never be obtained without
rural development and in order to achieve this goal the best
investment is creating a context for sustainable
entrepreneurship and its promotion in rural area since the
entrepreneurship has this ability to identify resources,
opportunities and problems available in the context while
devising new solutions to move toward developing of
different aspects of village and environment.
Muhammad (2010) studies the Barriers for Business
Students in Becoming an Entrepreneur in Pakistan.
Entrepreneurship is very constructive tonic for economic and
social development of a country. Intention of youth is strong
predictor for future entrepreneurial career. In Pakistan, youth
is having moderate entrepreneurial intention. Consequently,
the main aim of this study is to investigate barriers and
hurdles in choosing entrepreneurship. Using data from 114
undergraduates and graduates of management sciences and
getting response with 21 items on Likert scale. Data analysis
is mainly executed through descriptive statistics, T test,
correlation, Cronbach Alpha, and component factor analysis.
The findings suggest that lack of skills, lack of assistance,
lack of capital, lack of awareness, and fear of future are
major hurdles to starting a business. This study suggests that
Government, Nonprofit organizations, Universities and other
influential institutions and sectors should endeavor for
providing better training, skills and knowledge as well as
good environment to feel some comfort in launching a new
business.
Objective of the Study
? To analyze the Entrepreneurs face of barriers and
challenges throughout the life and growth of their
entrepreneurial.
? To suggest suitable measures for the development,
improvement and identify the Entrepreneurial in
sivagangai district.
Problem of Rural Entrepreneurship
Rural entrepreneurship is now a days a major opportunity for
the people who migrate from rural areas. On the contrary it is
also a fact that the majority of rural entrepreneurs is facing
many problems due to not availability of primary amenities
in rural areas of developing country like India. Lack of
education, financial problems, insufficient technical and
conceptual ability it is too difficult for the rural entrepreneurs
to establish industries in the rural areas. This paper makes an
attempt to find out the Problems and Challenges for the
potentiality of Rural Entrepreneurship. It also focuses on the
major problems faced by rural entrepreneurs especially in the
fields of Marketing of products, financial amenities and other
primary amenities, i.e. availability of electricity, water
supply, transport facilities and required energy etc.
~ 623 ~
International Journal of Applied Research
Financial Problems
? Paucity of Funds, Lack of Infrastructural Facilities, Risk
Element
Marketing Problems
? Competition, Middlemen
Management Problems
? Lake of Knowledge of I.T, Legal formalities
Procurement of Raw Materials
? Lack of Technical Knowledge, Poor Quality of Products
Human Resources Problems
? Low Skill Level of Workers, Negative Attitude
Methodology
The universe of the study refers to (DIC) District Industrial
Corporation office Sivagangai District. The sample size
taken to conduct the research is 95 rural people. The
respondents were selected by using convenient sampling
technique. Structured interview schedule was used for
primary data collection. Secondary data was collected from
earlier research work, various published journals, magazines,
websites and online articles. Simple Percentage Analysis,
Analysis of variance (Anova), and T- Test are the tools used
by the SPSS (Statistical package for social sciences) for data
analysis.
Result and Discussion
Table 1: Classification based on Personal Factors
S.
No
Personal Factors
No. of
Respondents
Percentage
(%)
1
Finance
Come
Family 63 66.3
Personal
Savings
6 6.3
Bank Loan 11 11.6
Credit Card
Borrowing
7 7.4
Government
Star-up Grant
8 8.4
Total 95 100.0
2
Type of
Preferred
Business
Manufacturing 29 30.5
Distributor 33 34.7
Whole Seller 21 22.1
Retailer 12 12.6
Total 95 100.0
3
Economic
Status
Poor 10 10.5
Middle Class 66 69.5
Upper Middle 14 14.7
Others 5 5.3
Total 95 100.0
4
Involvement
in Starting
The
Business
Less than 6
Months
16 16.8
6-12 Moths 44 46.3
1-3 Years 20 21.1
More than 3
Years
15 15.8
Total 95 100.0
5
Size of Your
Preferred
Business
Micro/Cottage
( 10 )
41 43.2
Small (Less
than 50)
36 37.9
Others 18 18.9
Total 95 100.0
Source: Primary Data
Inference
Thus the above table shows that majority 63.3% of the
respondents belong to the age group of family and only 6.3%
of the respondents personal saving. Majority 30.5% of the
respondents are type of business only 12.6% of the
respondent’s retailer business. Maximum 69.5% of the
respondents have middle class and only. Majority involved in
business started 46.3% of the respondents 6-12 month’s new
business. Majority size of your preferred business cottage
employee 43.3% preferred business respondents.
Table 2: ‘T’-Test between general and factors of barrier
entrepreneurial
Factors General N Mean S.D F P
Lack of family
support
Male 66 2.17 1.431
12.541 .001
Female 29 1.72 .591
Shortage of
money
Male 66 2.26 1.351
6.610 .012
Female 29 2.21 .861
Lack of other
support
(technical,
marketing,
training) from
banks
Male 66 2.08 1.256
3.063 .083
Female 29 2.52 1.455
Lack of
favorable govt.
policies relating
to small
business
promotion
Male 66 2.15 1.218
8.981 .003
Female 29 2.24 1.573
Fear of loan
Male 66 1.89 1.266
2.918 .091
Female 29 2.62 1.449
My current life
situation
Male 66 2.09 1.077
6.369 .013
Female 29 2.31 1.417
Lack of
business idea
Male 66 1.97 1.037
9.608 .003
Female 29 2.72 1.412
Lack of
personal skill
and competence
Male 66 2.11 1.178
12.051 .001
Female 29 2.52 1.661
Lack of
experience
Male 66 1.97 1.037
9.608 .003
Female 29 2.72 1.412
Inference
From the above table it is inferred that there is a significance
mean difference that exist on barrier rural based on gender
and there is no significance mean difference that exist on
hours in a day spend with male & female and difficulty in
getting work done.
Table 3: One-way analysis of variance between Age and barriers of
entrepreneurial
Age N Mean S.D F P
20-25 years 67 2.01 .977
6.676 .002
26-30 years 25 2.44 1.530
31-35 years 3 4.33 .577
Total 95 2.20 1.208
Inference
Thus the above table shows that there is a significance mean
difference that exists on entrepreneurial barriers on the basis
of age group.
Managerial Implications
Findings suggest entrepreneurial education plays an
important role in fostering entrepreneurial intentions among
rural area. Education empowers graduates to successfully
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International Journal of Applied Research
plan, start, and operate a business in three phases: (1) idea
development, (2) organizing the founding of a firm and (3)
running a newly-established firm. As such, the contribution
of rural is most significant in influencing the first two phases.
Thus, the relevance of DIC office should be assessed by their
efficacy to “train” their students into becoming self-
sustaining entrepreneurs’. The implications are that rural
people curricula should be redesigned in order to stimulate
an environment that is conducive to developing positive
entrepreneurial attitudes. Particular emphasis should be
placed on female, who are observed as facing the greatest
barriers in starting and running businesses. Incorporating
real-life business training with theory will go a long way
towards supporting entrepreneurial activity. Vehicles such as
business incubators and entrepreneurship-mentorship
programmes are also encouraged.
Conclusion
Based on the study it is concluded that there is a significant
relationship between personal factors (financial come. type
of preferred business, size of preferred business, involvement
start the business, economic states) and barriers of
entrepreneurial rural area side. The relationship between
personal factors and rural entrepreneur will be an important
input in designing appropriate policies for DIC issues
Sivagangai district. The results also indicated that the rural
barrier entrepreneurship in rural people is a challengeable
one. Another interesting area of study could be the empirical
testing of the link between education and entrepreneurial
intentions. Future researchers could also consider further
exploring the different typologies of not only youths but also
the general population in terms of entrepreneurship barriers
experienced.
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