PROPOSAL FOR

MINOR RESEARCH PROJECT

On
ENTERPRENEURSHIP DEVELOPMENT OF MICRO, SMALL AND MEDIUM
SCALE ENTERPRISES IN BACKWARD DISTRICTS OF ANDHRA PRADESH

Submitted
by
Dr.M.THYAGARAJU
MBA, UGC-NET, LL.M, Ph.D, UGC-PDF
Assistant Professor
Dept of MBA-Tourism Management
Vikrama Simhapuri University,
Andhra Pradesh

Submitted
To
UGC - HUMAN RECOURSE DEVELOPMENT CENTER
MOULANA AZAD NATIONAL URDU UNIVERSITY
GACHIBOWLI, HYDERABAD-500032
 Annexure-1

UNIVERSITY GRANTS COMMISSION

FORMAT FOR SUBMISSION OF PROPOSAL FOR

MAJOR RESEARCH PROJECT

PART-A

1. Broad Subject: Management

2. Area of Specialization: Finance
3. Duration: Two years
4. Principal Investigator:
i. Name: Dr. M. THYAGARAJU
ii. Sex: Male
iii. Date of Birth: 05-03-1977
iv. Category: SC
v. Qualification: MBA, UGC-NET (Mngt) M.Com.,LL.M., Ph.D.UGC-PDF
vi. Designation: Assistant Professor
vii. Address:
Office: Dr. M. THYAGARAJU
Assistant Professor,
Department of Tourism Management,
Vikrama Simhapuri University, Nellore
Andhra Pradesh,
PIN: 524320
Residence:
Email: mythyagi@gmail.com
 5. Co-Investigator(s): NIL
i. Name:
ii. Sex:
iii. Date of Birth:
iv. Category:
v. Qualification:
vi. Designation:
vii. Address: Office: Residence:
6. Name of the Institution where the project will be undertaken:
a. Department: Department of Tourism Management
University: Vikrama Simhapuri University, Nellore

Andhra Pradesh, PIN: 524320

b. Whether the institute is located in rural/backward area:
The University is located in rural and backward area
7. Whether the University/College/Institution is approved under Section 2 (f) of the UGC
Act?
Yes, the University College is approved under Section 2 (f) and
12 (B) of the UGC Act
8. Teaching and Research Experience of the Principal Investigator:
a. Teaching experience: 15 Years
b. Research experience: 10 Years
c. Whether the project has been approved by the university for the doctoral Degree?
If so, please indicate: NA
i. Date of Registration
ii. Name and designation of supervisor approved by the university:
iii. Name of the University where registered:
d) In case the teacher holds a doctoral degree:
a. Title of thesis for doctoral degree:
Risk Management and Insurance in Indian Agriculture
b. Year of award of doctoral degree: 2007
c. Name of the university : Sri Krishnadevaraya University,
iv. Papers Published: 15
v. Books Published: Three
(Please enclose the list of papers and books published and/or accepted during last five years)
 PART-B

PROPOSED RESEARCH WORK

9) (i) Project Title: ENTERPRENEURSHIP DEVELOPMENT OF MICRO, SMALL

AND MEDIUM SCALE ENTERPRISES IN BACKWARD DISTRICTS OF ANDHRA
PRADESH

(ii) Introduction: Separate sheet enclosed (Appendix-1)

• Origin of the research problem
• Interdisciplinary relevance
• Review of Research and Development in the Subject: Separate
sheet enclosed (Appendix-2)
- International Status
- National Status
- Significance of the Study (Separate sheet enclosed
- (Appendix-3)
- Its potential contribution to knowledge in the field
of social relevance or national importance
(iii) Objectives: Separate sheet enclosed (Appendix 4)
(iv) Methodology: Separate sheet enclosed (Appendix 5)
(v) Year-wise plan of work and targets to be achieved:
Separate sheet enclosed (Appendix 6)
(vi) Details of collaboration, if any intended: Nil
10. Financial assistance required:
Item Estimated Expenditure
i) Books and Journals: 1,00,000
ii) Equipment, if needed: Lap Top 41,500
Xerox, Scanner and Printer 12,500
UPS 21,000
Invertor 17,000
Computer Table 8,000
 ii) Field Work and Travel: 80,000

iv. Chemicals and Glassware: ---

v. Contingency (including special needs): 60,000
________ _________
Total: 3,00,000
=======
12. Whether the teacher has received support for the research project from the UGC under
Major, Minor, and scheme of support for research or from any agency? If so, please indicate:
No
a. Name of the agency from which the assistance was approved: UGC
b. Sanction letter No. and date under which the assistance was approved:
c. Amount approved and utilized:
d. Title of the project for which assistance was approved:
In case the project was completed, whether the work on the project has been
published: About to complete
e If the candidate was working for the doctoral degree, whether the thesis was
submitted and accepted by the University for the award of degree.
(A summary of the report/thesis in about 1,000 words may please be attached with the
applicataion)
g. If the project has not been completed, please state the reasons:
13. (a) Details of the project/scheme completed or ongoing with the P.I. NA

Year Total
Name of the Equipment/Infrastructural
Agency facilities obtained
Started Completed

(b) Institutional and Departmental facilities available for the proposed work: NA
Equipment:
Other Infrastructural Facilities:
14. Any other information which the investigator may like to give in support of this
proposal which may be helpful in evaluating to certify that:
A The University/College/Institute is approved under Section 2(f) and 12(b) of
the UGC Act and is fit to receive grants from the UGC. Yes
B General physical facilities, such as furniture/space etc., are available in the
Department/College.
C I/we shall abide by the rules governing the scheme in case assistance is
provided to me/us from the UGC for the above project.
D I/we shall complete the project within the stipulated period. If I/we fail to do so
and if the UGC is not satisfied with the progress of the research project, the
Commission may terminate the project immediately and ask for the refund of
the amount received by me/us.
E The above Research Project is not funded by any other agency.

Name and Signature (a) Principal Investigator

(b) Principal
(Signature with Seal)
 Appendix-1
ENTERPRENEURSHIP DEVELOPMENT OF MICRO, SMALL AND MEDIUM
SCALE ENTERPRISES IN BACKWARD DISTRICTS OF ANDHRA PRADESH

INTRODUCTION

Entrepreneurship is the most common phenomenon now a days in the developed

nations. This term has been recognized by developed countries like USA and Japan. This term

made the developed and the third world to understand the spur of entrepreneurship in the economic

prosperity of the country. After attaining independence, India has realized the role of

entrepreneurship in the economic development and has been concentrating on it through various

programmes (Veerabhadrappa, 2009)1.

“The following picture depicts the percentage of micro, small and medium enterprises

(MSME) across the world in country wise.

Source: https://www.kpmg.com
Note: Non-MSME Sector Includes – Un-organized / Unregistered enterprises, Large Enterprises
including (PSEs, large industrial houses, MNCs)

1 Veerabhadrappa Havinal (2009), “Management and Entrepreneurship”, New Age International (P) Ltd., New Delhi.
 The contribution of the MSME sector to India’s GDP stands at 8 per cent for 2011-12, and

is growing at a rate higher than the projected GDP growth rate. MSME in India has the potential

to increase the share of contribution to GDP from the 8 per cent to 15 per cent by the year 20202”.

ENTREPRENUER

The word “entrepreneur” is derived from French word “entreprendre”, which means to

do or to undertake. The word entrepreneur can be split into two parts, “entre”, which means

“between”, and “preneur” means “taker”. In the early 16th century the Frenchmen referred the

word ‘Entrepreneur’ to military. In the early 18th century Richard Cantillon (French economist)

has applied the word ‘Entrepreneur’ to business (Filion, L.J, 2011) 3.

Bolton and Thompson (2000) 4 have defined an entrepreneur as “a person who habitually

creates and innovates to build something of recognized value around perceived opportunities”. As

per Oxford Dictionary5, entrepreneur is “A person who sets up a business or businesses, taking on

financial risks in the hope of profit”. Hisrich (1990)6 defined that an entrepreneur is characterized

as “someone who demonstrates initiative and creative thinking, is able to organize social and

economic mechanisms to turn resources and situations to practical account, and accepts risk and

2
https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/The%20new%20wave%20India
n%20MSME_Low%20Res.pdf( Retrieved on 16-05-2016)
3
Filion, L.J. (2011) Defining the entrepreneur. In: Dana, L.-P. (Ed.) World Encyclopedia of
Entrepreneurship.Cheltenham, UK and Northampton, MA, USA, Edward Elgar: 41-52.
4
Bolton W.K. and Thompson J.L. (2000) Entrepreneurs: Talent, Temperament, Technique. Butterworth Heinemann,
Oxford.
5
Oxford Dictionary, 3rd Edition 2005 New York, Oxferd University Press Inc, p. 476-477.
6
Hisrich, R.D. (1990) Entrepreneurship/Intrapreneurship. Am Psychol 45(2), 209–222
failure”. Schumpeter's(1955)7 defined entrepreneur as “an individual who introduce something

new in the economy- a method of production not yet tested by experience in the branch of

manufacturing, a product with which consumers are not yet familiar, a new source of raw material

or of new markets and the like”. According to Richard Cantillon (1931) 8, entrepreneur is “A person

who pays certain price for a product to resell it at an uncertain price thereby making decision about

obtaining and using resources while assuming the risk of enterprise”. Drucker (2006)9 viewed “An

entrepreneur is the one who always searches for change, responds to it and exploits it as an

opportunity. Innovation is the specific tool of entrepreneurs, that means by which they exploit

changes as an opportunity for a different business or different service”

ENTREPRENEUR AND ENTREPRENEURSHIP

Though the terms entrepreneur and entrepreneurship are used interchangeably, but they are

conceptually different. According to Onuoha (2007) 10, “entrepreneurship is the practice of starting

new organizations or revitalizing mature organizations, particularly new businesses and generally

in response to identified opportunities.” The following diagram presents the differences between

entrepreneur and entrepreneurship.

Diagram-1: Entrepreneur and Entrepreneurship

ENTRERENEUR ENTREPRENEURSHIP ENTERPRISE

PERSON PROCESS OF ACTION OBJECT

CLASSIFICATION OF ENTREPRENEURS

7
Joseph Schumpeter, "Change and the Entrepreneur," in Essays of I. A. Schumpeter, ed. Richard V. Clemence
(Reading, MA: Addison-Wesley, 1951), p.255.
8
Richard Cantillon, ―Essaisurla nature commerce on general, translated by H Higgs Macmillon London, 1931 .
9
Drucker Peter F., Innovation and Entrepreneurship, UK, Elsevier Linacre House, 2006
10
Onuoha G., (2007) Entrepreneurship, AIST International Journal 10, 20-32
 The concept of entrepreneur has been defined by great stalwarts in different aspects such

as economic development, nature, position, manufacturing unit and service of the enterprise.

On the basis of “Economic Development” Clarence Danhof has classified entrepreneurs

into four groups in his study on “American Agriculture” namely; aggressive or innovative,

imitative or adoptive, fabian and drone.

Innovative Entrepreneurs are those whose capital of investment is innovative thinking.

Every time they introduce innovative product or service to customers’ delight.

Imitative Entrepreneurs will follow operational effectiveness by imitating established

practices of the industry.

Fabian Entrepreneurs are characterised by very great caution and scepticism in

experimenting any change in their enterprises.

Drone Entrepreneurs are characterised by a refusal to adopt opportunities.

Arthur H. Cole has classified entrepreneurs into three types;

Empirical entrepreneur is the entrepreneur who rarely introduces innovative product or

service and follows thumb rule in all his business operations.

Rational entrepreneur is the entrepreneur who always introduces innovative product or

service and follows rationality in all his business operations.

Cognitive entrepreneur always follows experts’ advices in their business operations.

“Based on the ownership entrepreneurs are of two types

Private entrepreneur: He or She is motivated by profit and he or she would not enter those

sectors of the economy in which prospects of monetary rewards are not very bright.
 Public entrepreneur: In the underdeveloped countries government will take the initiative

to share enterprises” (Veerabhadrappa Havinal, 2009)11.

Based on Scale of Enterprise – Manufacturing Enterprises

“Micro Manufacturing Enterprises: Those enterprises whose investment in plant and

machinery does not exceed Rs.25 lakhs (Rupees twenty five lakhs only) are called micro

manufacturing enterprises.

Small Manufacturing Enterprises: Those enterprises whose investment in plant and

machinery is more than twenty five lakh rupees but does not exceed rupees 5 crores

(Rupees five crores only) are called small manufacturing enterprises.

Medium Manufacturing Enterprises: Those enterprises whose investment in plant and

machinery is more than rupees 5 crores but not exceeding Rs.10 crores (Rupees ten crores

only) are called medium manufacturing enterprises.

Service Enterprises
Micro Service Enterprises: Those enterprises whose investment in equipment does not

exceed rupees 10 lakhs are called micro service enterprises.

Small Service Enterprises: Those enterprises whose investment in equipment is more than

10 lakh rupees but does not exceeds rupees 2 crores are called small service enterprises

Medium Service Enterprises: Those enterprises whose investment in equipment is more

than rupees 2 crores but does not exceed rupees 5 crores are called medium service

enterprises ((MSME)”12.

Chapter Layout

11
Veerabhadrappa Havinal(2009), “Management and Entrepreneurship”, New Age International (P) Ltd., New
Delhi.
12
http://www.msmeonline.tn.gov.in/definition.pdf
 The entire study has been organized into six chapters. The study is mainly based on the

primary data and exploratory in nature. The main objective of the study is to have a comprehensive

understanding of practice of entrepreneurs, motivational and functional factors of entrepreneurship

development, functional performance of micro, small and medium scale enterprises and also

focusing on the problems faced by entrepreneurs. A brief outline of the different chapters is

presented below.

Chapter-1: An introduction

This chapter presents an outline description of entrepreneurship and also lays out the

statement of the problem, review of literature relating to the topic of research, need for the study

and present research which includes specific objectives, scope, sample design and size, data

collection, tools of analysis and limitations.

Chapter-2: Socio- economic profile of study area, select enterprises and entrepreneurs

Chapter 2 covers Socio-economic profile of study area, select enterprises and entrepreneurs

is organised into two parts. The first part presents the socio economic scenario of backward

districts of Andhra Pradesh. The demographic distribution, climatic conditions, industrialisation

and infrastructure facilities etc. The other part deals with the study of socio- economic profile of

enterprises

Chapter-3: Motivational and Facilitation factors of entrepreneurship

Chapter three deals with the results of motivational and facilitation factors of entrepreneurs.

Entrepreneurs’ motivation through Maslow’s theory in terms of basic needs, safety and security

needs, social needs, esteem needs and self-actualization needs are examined. Further, facilitation

factors includes adequate financial support, self confidence, innovative thinking, co-entrepreneurs
relationship, workers availability, family members, government promotion, banks & financial

institutions, un employment, use of technical skills, use of idle funds, low capital investment, more

profits, previous experiences, good market potential and easy entrance.

Chapter-4: Functional performance of enterprises

Chapter four focuses on the results of functional performance of enterprises in terms of

marketing, HR, finance and production.

Chapter-5: Problems and remedial measures of micro, small and medium entrepreneurs

Chapter five is exclusively devoted for the problems and remedial measures of micro, small

and medium scale enterprises and entrepreneurs in backward districts of Andhra Pradesh. Further

a selected case study has been incorporated.

Chapter-6: Summary, Findings and suggestions

Chapter six throws light on the findings of the study along with suitable suggestions based

on the findings of the study.

Appendix-2

REVIEW OF LITERATURE

2.1 REVIEW OF LITERATURE

The reason behind the literature review is to identify the research gap for the present study.

Research articles were reviewed from different data bases like Emerald, insight, Elsevier’s Science

Direct, EBSCO, Proquest, Sage, Springer, Taylor and Francis and Wiley. Primarily, article search
was processed based on the key words – Entrepreneur, Entrepreneurship and Entrepreneurship

problems and then different studies were reviewed. The following are the studies from the data

bases which are relevant for the present study.

Jason L. Jensen (2015)13 has examined burdens faced by entrepreneurs at start-up and five years

later through survey method. Regulatory factors and taxes were not as burdensome in the initial

time period, compared to workforce and financing factors.

Adesuwa Omorede (2014) 14 has conducted an inductive research on "Exploration of motivational

drivers towards social entrepreneurship" through qualitative data. The findings showed that local

conditions such as widespread ignorance and unscientific beliefs together with the individual’s

intentional mindset were contributing factors, which explain engagement in starting a social

enterprise.

Monia Lougui and Kristina Nyström (2014)15 in their article studied the obstacles encountered

by current and potential entrepreneurs. The results indicated that aside from general questions and

concerns, taxes, laws and permits are the issues with which entrepreneurs most frequently need

help.

13
Jason L. Jensen , (2015) "An examination of the burdens faced by entrepreneurs at start-up and five years later",
Journal of Entrepreneurship and Public Policy, Vol. 4 Iss: 2, pp.152 – 170.
14
Adesuwa Omorede(2014) "Exploration of motivational drivers towards social entrepreneurship", Social Enterprise
Journal, Vol. 10 Iss: 3, pp.239 – 267
15
Monia Lougui , Kristina Nyström , (2014) "What obstacles do entrepreneurs encounter?", Journal of
Entrepreneurship and Public Policy, Vol. 3 Iss: 2, pp.275 – 291
Majid Aramand (2013)16 has conducted case studies on the role of culture on the motivational

behaviors of female entrepreneurs in Mongolia and concluded need for achievement as a

motivating factor for women to become entrepreneurs.

Omerzel Gomezelj Doris and Kušce Irena (2013) 17 in their paper analysed the determinants of

business start-ups and their impact on entrepreneurial performance. The empirical part is based on

quantitative survey results from a model of business start-up factors and relations with

the entrepreneurs' performance. The data were analysed using the statistical package for data

analysis SPSS for Windows. The factor analysis was performed separately for the set of variables

that have measured the reasons for founding the start-up, the personality traits, environmental

factors and performance. The paper used a multiple linear regression model to identify the strength,

direction and impact of different factors on the start-up performance. The paper revealed the

heterogeneity of the measures for performance and their different natures (from financial

indicators to those related to the entrepreneur satisfaction).

Fara Azmat (2013)18 study on "Opportunities or obstacles?: Understanding the challenges faced

by migrant women entrepreneurs" have identified multiple factors – human capital, culture, family,

institutional factors, gender and social capital – as possible barriers for migrant women

entrepreneurs.

16
Majid Aramand, (2013) "Women entrepreneurship in Mongolia: the role of culture on entrepreneurial motivation",
Equality, Diversity and Inclusion: An International Journal, Vol. 32 Iss: 1, pp.68 – 82
17
Omerzel Gomezelj Doris , Kušce Irena , (2013) "The influence of personal and environmental factors on
entrepreneurs' performance", Kybernetes, Vol. 42 Iss: 6, pp.906 – 927
18
Fara Azmat, (2013) "Opportunities or obstacles?: Understanding the challenges faced by migrant women
entrepreneurs", International Journal of Gender and Entrepreneurship, Vol. 5 Iss: 2, pp.198 – 215
Anja K. Franck (2012)19 has examined the factors which motivate women's informal micro‐

entrepreneurship in Malaysia through qualitative research and concluded that women’s informal

micro‐entrepreneurship is motivated only by “involuntary exclusion from the labor market” or

“poverty.

Panagiotis G. Liargovas and Konstantinos S. Skandalis (2012) 20 have studied motivational

factors of migrant entrepreneurship in Greece through a factor analysis approach. The research

identified family survival needs, immigrant community ties, personality features or traits,

infrastructure and general conditions of the Greek economy as motivational factors of

entrepreneurship.

Nirza Dinhucha Gonçalves Fumo and Charbel Jose Chiappetta Jabbour (2011) 21 have

conducted a research on "Barriers faced by MSEs: evidence from Mozambique". The results

showed financial and competitive barriers as the main barriers faced by the analyzed MSEs

Hung M. Chu, et al (2011) 22 have investigated motivations, success factors, problems, and

business‐related stress of entrepreneurs in small‐ and medium‐sized enterprises and relates them

to the success of the Chinese entrepreneurs. A total of 196 entrepreneurs in Beijing, Shanghai, and

Guangzhou were randomly selected for a survey, which was analyzed to determine motivations,

success factors, problems, and business‐related stress by gender. Ordered logit models were

applied to motivation and success factors. Results showed that 68 percent were male and 32 percent

female. The average age of the entrepreneurs was about 32 years old and time devoted to their

19
Anja K. Franck (2012) "Factors motivating women's informal micro‐entrepreneurship: Experiences from Penang,
Malaysia", International Journal of Gender and Entrepreneurship, Vol. 4 Iss: 1, pp.65 – 78
20
Panagiotis G. Liargovas, Konstantinos S. Skandalis, (2012) "Motivations of migrant entrepreneurship in Greece: a
factor analysis approach", Journal of Small Business and Enterprise Development, Vol. 19 Iss: 4, pp.627 – 639
21
Nirza Dinhucha Gonçalves Fumo, Charbel Jose Chiappetta Jabbour, (2011) "Barriers faced by MSEs: evidence
from Mozambique", Industrial Management & Data Systems, Vol. 111 Iss: 6, pp.849 – 868
22
Hung M. Chu, Orhan Kara, Xiaowei Zhu, Kubilay Gok, (2011) "Chinese entrepreneurs: Motivations, success
factors, problems, and business‐related stress", Journal of Chinese Entrepreneurship, Vol. 3 Iss: 2, pp.84 – 111
business was almost 45 hours per week. Of the total respondents, 56 percent were married and 44

percent single. The study identified income, becoming their own boss, and to prove that they can

succeed as reasons for starting entrepreneurship and reputation for honesty, providing good

customer services, and having good management skills as necessary conditions for business

success. It also identified unreliable/undependable employees, intense competition and lack of

management training as the challenges for Chinese entrepreneurs

Anne Laure Humbert and Eileen Drew (2010) 23 have conducted a survey from a national of 832

entrepreneurs in Ireland in between 2003-2004 and explored the relationship between gender and

entrepreneurial motivations in an Irish context. Data has analysed with the help of ordinal logistic

modelling. Results indicated strong gender effect on motivational factors.

Jodyanne Kirkwood and Sara Walton (2010)24 in their research on "What motivates

ecopreneurs to start businesses?" have examined motivational factors of ecopreneurs with 14 in-

depth case studies of ecopreneurial companies in New Zealand in 2008. The result indicated five

motivational factors for ecopreneurs; green values; earning a living; passion; being their own boss;

and seeing a gap in the market.

Jodyanne Kirkwood (2009)25 in his research entitled “Motivational factors in a push‐pull theory

of entrepreneurship" has studied entrepreneurial motivation factors. Three gender differences were

found in the incidence of motivations: women were more influenced by a desire for independence;

23
Anne Laure Humbert, Eileen Drew, (2010) "Gender, entrepreneurship and motivational factors in an Irish context",
International Journal of Gender and Entrepreneurship, Vol. 2 Iss: 2, pp.173 – 196
24
Jodyanne Kirkwood, (2009) "Motivational factors in a push‐pull theory of entrepreneurship", Gender in
Management: An International Journal, Vol. 24 Iss: 5, pp.346 – 364
25
Jodyanne Kirkwood, Sara Walton, (2010) "What motivates ecopreneurs to start businesses?” International Journal
of Entrepreneurial Behavior & Research, Vol. 16 Iss: 3, pp.204 – 228
women considered their children as motivators more so than did men; men were influenced more

by job dissatisfaction than were women.

Dima Jamali, (2009)26 examined the interplay of constraints and opportunities affecting female

entrepreneurship in developing countries. The research adopted an integrative multi‐level research

design and an interpretive research methodology, capitalizing on in‐depth interviews with ten

women entrepreneurs to explore their perceptions and interpretations of constraints and

opportunities facing female entrepreneurship. The findings of the study revealed the relevance of

micro, medium and macro‐level factors in entrepreneurship research and the usefulness of

integrating multiple lens and units of analysis to capture the complexity of the women

entrepreneurship experience in any particular context.

Lavanya Latha, and Murthy (2009)27 in their paper have studied the problems faced by small‐

scale entrepreneurs in Nellore District of Andhra Pradesh, India. The study was conducted by

choosing a sample size of 30 per cent (196 units) randomly from the total population of 653 units.

The data were collected through a structured questionnaire, informal interview and analyzed by

using mean, ANOVA and Z‐test. The results have identified high price of raw materials, lack of

marketing information and marketing of products as major problems faced by the entrepreneurs,

followed by competition from small industries and absenteeism of labour.

Appendix-3

NEED AND SIGNIFICANCE OF THE STUDY

26
Dima Jamali, (2009) "Constraints and opportunities facing women entrepreneurs in developing countries: A
relational perspective", Gender in Management: An International Journal, Vol. 24 Iss: 4, pp.232 – 251
27
K. Lavanya Latha, B.E.V.V.N. Murthy, (2009) "Problems of small‐scale entrepreneurs in Nellore District",Journal
of Chinese Entrepreneurship, Vol. 1 Iss: 3, pp.268 – 278
Basis for selection of topic: The review of literature makes out the significance of

entrepreneurship development in elimination of poverty, industrial development, enhancement of

standards of living, improvement of employment opportunities, and economic development of the

country. Hence, research is undertaken on entrepreneurship.

Criteria for selection of the study area: Anantapuramu, Kurnool, Kadapa, Chittoor, Srikakulam

and Vijayanagarm are backward, drought prone and poverty stricken districts of Andhra Pradesh

(As per the statistical abstract of Andhra Pradesh 2014). Hence, entrepreneurs require different

motivations and have to face different problems. There may be studies on entrepreneurship with

respect to Andhra Pradesh. As far as the knowledge and understanding of the researcher is

concerned, there is no particular study on motivational factors, facilitation factors, functional

performance and problems of micro, small and medium entrepreneurs in backward districts of

Andhra Pradesh. This made the researcher to choose the backward districts of Andhra Pradesh.

This study is useful for entrepreneurship policy makers, academicians and others who are

determined and functioning for the cause of entrepreneurship development and industrial

development and throws light on the measures through which the poverty can be mitigated.

Appendix-4

OBJECTIVES OF THE STUDY

The specific objectives formulated for the study include:

i. To know the concept of entrepreneurship and enterprises, their origin, growth and

development.
 ii. To study the socio-economic profile of micro, small and medium enterprises and

entrepreneurs vis-à-vis the profile of backward districts of Andhra Pradesh with a view

to assess their impact on the motivational and facilitation factors of the study.

iii. To analyze the functional performance of micro, small and medium scale enterprises

iv. To assess the various problems of micro, small and medium scale entrepreneurs.

V) To offer suitable remedial measures and suggestions for further entrepreneurship

development among micro, small and medium scale entrepreneurs
Appendix-5

METHODOLOGY OF THE STUDY

Statement of the Problem

Entrepreneurs can change the economic face of the country through industrial

development. But, motivational and facilitation factors of entrepreneurs for establishing

enterprises and performance will rely on the environment from where it operates. This is acute

especially in case of backward areas where business environment is quite different. India has

realised the importance of entrepreneurship and accelerated the movement. So, understanding of

motivational and facilitation factors of entrepreneurs for establishing enterprises, enterprises

performance and problems in backward areas are helpful for entrepreneurship success in backward

areas. Hence, the present research is undertaken in backward districts (Anantapuramu, Kurnool,

Kadapa, Chittoor, Srikakulam and Vijayanagarm) of Andhra Pradesh with the following issues:

What are the motivational and facilitation factors of micro, small and medium

entrepreneurs?

How is the functional performance of micro, small and medium entrepreneurs?

What are the various problems micro, small and medium entrepreneurs are facing?

SAMPLING DESIGN :
Theoretical Population: Theoretical population includes entrepreneurs who have established

their enterprises in back-ward districts of Andhra Pradesh.

Study Population: Entrepreneurs in the back-ward districts of Andhra Pradesh which includes

Anantapuramu, Kurnool, Kadapa, Chittoor, Srikakulam and Vijayanagarm.

Sampling Frame: The details of enterprises operating under MSME (Table-1) in Anantapuramu,

Kurnool, Kadapa, Chittoor, Srikakulam and Vijayanagarm were collected from respective District

Industrial Centres (DIC).

Table-1: Depicts the MSMEs details in backward districts of Andhra Pradesh

District 2011-2012
No. of Units
Ananthapur 5414
Chittoor 4466
Kurnool 4853
Srikakulam 4837
Vijayanagaram 2156
YSR Kadapa 4356

Sample Selection :
For the purpose of study the sample is selected from backward districts of Andhra Pradesh

on the basis of disproportionate stratified random sampling. The study is divides 3 stratas

disproportionately (Micro-204, Small-294, and Medium-72) respondent entrepreneurs from each

district with 34 Micro, 49 Small and 12 Medium were selected. The details are furnished in the

Table.2

Table.2: Respondents of MSMEs in Backward districts of Andhra Pradesh

 Total
Nature of Entrepreneurship
District Name Micro Small Medium
Anantapuramu 34 49 12 95
Chittoor 34 49 12 95
Kurnool 34 49 12 95
Srikakulam 34 49 12 95
Vijayanagaram 34 49 12 95
Kadapa 34 49 12 95
Total 204 294 72 570

Source: Primary data

Data Collection

The data required for the study is collected from both primary and secondary data.

Primary data

The primary data was collected with the help of a structured questionnaire. The

questionnaire divided into four parts like- enterprises and entrepreneurs profiles, motivational and

facilitational factors, functional performance of the enterprises and problems and remedial

measures of the entrepreneurs. The study covers backward districts of Andhra Pradesh which

includes Anantapuramu, Chittoor, Kurnool, Srikakulam, Vijayanagarm and Kadapa.

Secondary Data

Secondary data for the present study has been collected from data bases like Emerald,

EBSCO, Insight, Proquest, Sage, Science Direct, Springer, Taylor and Francis and Wiley,

websites, magazines, hand books, journals, thesis, text books and statistical abstract of Andhra

Pradesh.

Tools of analysis
 The collected information is analyzed and interpreted with the help of Statistical

Programme for Social Sciences (SPSS-21.0) package. The specific tools employed are frequency

tables, graphs, percentage, weighted score, chi-square test and ANOVA test.

Appendix-6

YEAR-WISE PLAN OF WORK AND TARGETS TO BE ACHIEVED

It is a 18 months project proposal. Plan of the work is as follows:

First Nine Months: Survey of Literature

Preparation of the Schedule

Pilot Study

Selection of the Sample

Data Collection

Coding the data and preparation of code book

Feeding the data into the computer

Second Nine Months: Preparation of tables using SPSS software

Application of the relevant statistics

Analysis and interpretation

Report writing

Submission of the final report