1.

0 INTRODUCTION

Entrepreneurship acts as fuel for the engine of growth of manufacturing sector

including agricultural and industrial goods. In MSMEs, in particular, it is the spirit of
entrepreneurship rather than the capital and technology which ignites and promotes the
industrial development. However, entrepreneurship depends up on many factors –
biological, psychological, educational and cultural factors. So it is necessary to develop
entrepreneurship by touching upon these factors. Further, entrepreneurs encounter many
problems and challenges, particularly in the micro, small and medium sectors. The
entrepreneurs have different perceptions about the problems and solutions depending
upon the size of the enterprises. A thorough study is necessary to focus on these aspects
from national and regional perspective. The present chapter deals with the importance of
entrepreneurship along with the conceptual framework, review of literature, the research
design and framework of the thesis.
1.1 RESEARCH PROBLEM
1.1.1 Entrepreneurship
Entrepreneurship is pivotal for economic progress of any nation. Development of
entrepreneurs leads to rapid industrialization and thus paves the way for the prosperity
and fortune of a country. An entrepreneur is therefore called the wealth creator and an
economic agent who plays a vital role for the economic growth and development of a
country. An entrepreneur is an individual having knowledge, skills, initiative, drive and

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spirit of innovation pitching for high goals. An entrepreneur identifies and seizes
opportunities for economic benefits. Entrepreneurship is an intellectual process to envisage
risk and uncertainty with a view to achieve certain goals. Entrepreneurial activity is a
vital source of innovation, employment and economic growth. The economic
development of a country means a process by which the per capita income of that
country moves upward over a period of time. Like many other countries of the world,
India is also endowed with rich natural and human resources and these have to be used
properly by adopting modern technology for the growth and development of the
economy. Therefore, entrepreneurship is essential for proper use to renewable and
non-renewable resources and to provide employment.
The wealth and growth of a nation depends on the excellence of its people. If they are
enterprising, ambitious and courageous enough to bear the risk, the community or
society will develop quickly. Such people are identified as entrepreneurs and their
characters reflect entrepreneurship. Entrepreneurship is the lifeblood of the Indian
economy. It is the cradle of job and wealth creation in the most innovative ways. It is
therefore imperative to recognize the contribution that the entrepreneurs make to our
economy and development.
Economic development necessarily denotes a process of change and an
upward movement of the entire social system manifested by an increase in
productivity, socio-economic justice, improved institutions and attitudes. The process
involves utilization of physical resources and it requires the tapping of human
resources to the best possible extent for initiating the required change in the economies
which are budding and gaining ground. The developed as well as the developing countries
today rely much upon rapid industrialization. Accelerating industrial development through
faster industrialization by exploitation and effective utilization of the rich natural and
physical resources is a vital factor to speed up the economic development. The role of human
resources is second to none in fostering the economic growth. So is the attention given to
promote the human factor in the industrial policies of the government and the successive
Five Year Plans? To sum up, the entrepreneur has become the nerve center of all economic
activities. Since the dawn of history this innate spirit of enterprising has been the core of
the economic prosperity of the country. During the process of being transformed into an
entrepreneur, man stood at the centre to organize and exchange the human as well as material
resources in achieving progress, without which all the economic activities will come to a
standstill.
The human beings have been enterprising since the dawn of history and this spirit

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has transformed them into entrepreneurs, contributed to the economic prosperity of the
country. The development of entrepreneurship, which is a human activity, has become an
imperative in the economic development and prosperity of our country. In this process man
stands at the center as an organizer of human resources and an exchange agent. Of these
various roles he has to play, his function as an organizer of human and material resources is
the most important and pivotal to ensure progress. Without his role the resources of
production remain stationary and can never be transformed into products or services. The
spirit of enterprise makes man a spry entrepreneur. It is this spirit, which has transformed
him over the centuries from a nomad into cattle-rearer, an agriculturist, a trader, and
eventually an industrialist. Entrepreneurs are persons who organize, manage and control the
affairs of a business unit, which combines the factors of production to supply goods and
services.
Entrepreneurship is a way of life, a habit of mind. A number of factors contribute
in motivating the entrepreneurs to venture and emerge successful. Being entrepreneurial
means being able to identify, start, and maintain a viable and profitable business,
particularly a small enterprise. A number of factors help motivate, encourage and
influence entrepreneurs to set up and grow their businesses. As the nucleus of economic
activity and propellers of economic development entrepreneurs should be competent to
perceive new opportunities, willing to take risks in exploring them. The development of
right entrepreneurship is one of the most acute problems of the developing countries. Infact
lack of the right kind of entrepreneurs in sufficient numbers is a factor hindering economic
development of any country.
1.1.2 Importance of MSMEs
Small scale industries occupy an important place in the Indian economy, especially
in terms of creation of employment opportunities that provide a source of income to
millions of people and their regional dispersal. In order to continue to play this role small
industries have to be competitive and commercially viable. The general observations,
since the beginning had been that majority of the small-scale industries were not
competitive and there was a dire need for their improvement in this respect. Consequently,
numerous policies were initiated by the Government of India to enable small industries to
improve their competitive strength.
The micro, small and medium enterprises are indispensable in the socio-economic
development of any country. Initially they were called small scale industries prior to the
Micro, Small and Medium Enterprises Development Act, 2006. The role of small scale

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industries has always been supported in a country like India. Various arguments such
as employment argument, equality argument, latent resource argument and
decentralization argument etc., support this view. As small scale industries promote self-
employment, require very few skills, less dependent on imports and yield quick returns,
many strongly support the role of small-scale industries in the emerging economies like
India.
The Micro, Small and Medium Enterprises (MSMEs) have always been the engines
of growth for every country, in developing as well as in transition economies. Their role in
building a solid industrial base can be gauged from the fact that they represent over 80
percent of industrial enterprises of most developing countries. They, along with micro
enterprises, have been identified as high potential sector for employment generation and
source of livelihood to millions of people in Asian, African and Latin American countries.
Worldwide, the Micro, Small and Medium Enterprises (MSMEs) play a leading role in
propelling economic growth sustaining livelihood and in promoting equitable regional
development. The MSMEs constitute over 90 per cent of total enterprises in most of the
developing economies and are credited with generating the highest rates of employment
growth and account for a major share of industrial, production and exports. In India too,
the MSMEs play a pivotal role in the overall industrial economy of the country. It is
estimated that in terms of value, the sector accounts for about 39 per cent of the
manufacturing output and around 33 per cent of the total export of the country.
Further, in recent years the MSME sector has consistently registered a higher growth
rate compared to the overall industrial sector.
The major advantage of the sector is its employment potential at low capital cost. As
per the available statistics, this sector employs an estimated 31 million persons spread
over 12.8 million enterprises and the labour intensity in the MSME sector is
estimated to be almost four times higher than that in the large enterprises. Entrepreneurship
and MSMEs development are the obverse and reverse of the same coin. MSM enterprises
are a good breeding ground for entrepreneurship. The growth of the enterprises mainly
depends upon the level of entrepreneurship development in it. Therefore, considerable
importance is attached to the identification, promotion and fostering of entrepreneurship
in this sector. The need for a broad-based entrepreneurial class in India arises from the need
to speed up the process of activating the factors of production, stimulating economic
growth, dispersal of economic activities, development of backward and tribal areas, creation
of employment opportunities and improvement in the living standards of the people and so

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on. The governments never fail to acknowledge the contribution of the small and medium
scale enterprises in fostering the economic wellbeing of a nation. Many countries of the
world have established a SME Development Agency as the nodal agency to coordinate and
oversee all government interventions in respect of the development of this sector. In the
case of India, also medium enterprises establishment has for the first time been defined in
terms of a separate Act, governing promotion and development of Micro, Small and
Medium Enterprises (MSMEs) i.e. Micro, Small and Medium Enterprises (MSMEs)
Development Act, 2006 (which came into force from 02nd October 2006). The Office of
Development Commissioner (Micro, Small and Medium Enterprises) functions as the
nodal development agency under the Ministry of Micro, Small and Medium Enterprises
(MSMEs).Office of Development Commissioner (SSI) was established in 1954 on the basis
of the recommendations of the Ford Foundation. Over the years, it has seen its role evolved
into an agency for advocacy, hand holding and facilitation for the small industries sector. It
has over 70 offices and 21 autonomous bodies under its management. These autonomous
bodies include tool rooms, training institutions and project-cum-process development centre.
Office of the Development Commissioner (MSMEs) provides a wide spectrum of services
to the Micro, Small and Medium industrial sector and formulates the policy for
promoting and development of MSMEs. The field offices also work as effective links
between the Central and the State Governments. Global trends and national developments
have accentuated the role of the Office of the Development Commissioner (MSMEs) as a
catalyst of growth of MSMEs in the country and provide support in the fields of credit,
marketing, technical and infrastructure.
1.1.3 MSMEs and Entrepreneurship Development
Entrepreneurship development is concerned with the study of entrepreneurial
behavior, the dynamics of business set-up, development and expansion of the
enterprise. Entrepreneurship Development (ED) refers to the process of enhancing
entrepreneurial skills and knowledge through structured training and institution-
building programmes. It basically aims to enlarge the base of entrepreneurs in order to
hasten the pace at which new ventures are created. This accelerates employment
generation and economic development
The entrepreneurial development is a key to achieve overall economic
development through higher level of industrial activity. Empirical studies have shown
that entrepreneurs are made. Entrepreneurial development is a process in which
persons are injected with motivational drives of achievement and insight to tackle

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uncertain and risky situations especially in business undertakings. The process of
entrepreneurial development focuses on training, education, reorientation and creation
of conductive and healthy environment for the growth of enterprises.
Entrepreneurship development depends upon many factors like (i) personal
factors including age, education, personality, motivation, competitive and ability to
cope up with the situation (ii) socio-cultural factors like religion, values, tradition (iii)
political-legal factors like Government policies, rules and regulations (iv) institutional
factors including financial institutions, training and development institutions
consulting firms, incubator organizations and research organizations (v) micro factors
like public, customs, competition, suppliers and intermediaries (vi) macro factors like
demographic factors, economic factors, technical factors and cultural factors, and (vii)
others including venture capital, availability of skilled labourers, transportation, land
facilities, financial and loan facilities. These factors play different roles in promoting
entrepreneurship development in various sectors.
Entrepreneurship development should be about helping people to start and grow
dynamic business that provides high value added. In determining the difference, it is
useful to look at potential growth sectors or geographic areas and to explore criteria for
selecting beneficiaries who are entrepreneurial. Entrepreneurship is promoted to help
alleviate the unemployment problem, to overcome the problem of stagnation and to
increase the competitiveness and growth of business and industries. Various attempts
have been made to promote and develop entrepreneurship. By giving specific
assistance to improve the competence of the entrepreneur and his enterprise so as to
enhance his entrepreneurial objectives and accommodate more people to become
entrepreneurs as well.
Entrepreneurial Development Programme (EDP) designed to help a person in
strengthening and fulfilling his entrepreneurial motive and in acquiring skills and
capabilities necessary for playing his entrepreneurial role effectively. Towards this
end, it is necessary to promote his understanding of motives, motivation pattern, their
impact on behavior and entrepreneurial value. Entrepreneurship development
programmes require a selection process that attempts to identity those target groups
that have some of the key prerequisites for entrepreneurial success. While it can be
argued that public funds should be spent on those who most need help, a selection
process deploys limited resources where they are most effective, to the overall benefit
of the community. Beneficiaries may be individuals and/or groups.

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 There is a pervasive tendency to equate entrepreneurship development (ED)
with self-employed individuals are indeed entrepreneurs, but the majority are not.
Their businesses are simply micro enterprises in the informal sector, with little growth
potential. The promotion of self-employment is a worthwhile objective, but it should
not be confused with entrepreneurship development. Entrepreneurship development
programmes that, in reality, focus only on self-employment are likely to succeed in
creating economic growth. An entrepreneurship development programme should help
aspiring entrepreneurs to recognize and design unique, innovative business
opportunities, based on an analysis of local conditions and their own special skills. The
programme can help the entrepreneur to diversify based on his/her basic knowledge of
a product or skill in a certain sector without distorting the local markets. In a truly
entrepreneurial approach, innovative capacity matters more than the size of the market.
Diversification can be accomplished by introducing a novelty or new product feature,
stressing quality or value, anticipating a new market or even creating a market.
The small-scale industrial sector and business are left completely to private
entrepreneurs. Entrepreneurship development and small-scale industry development
are two sides of the same coin. Small-scale enterprise is the initiation into
entrepreneurship. Further, that the rapid growth of small-scale sector is mainly due to
the entrepreneurship development is also true. It is, therefore, in this context that an
increasingly important role has been assigned for the identification and promotion of
entrepreneurs in this sector.
Entrepreneurship development focuses on the individual who wishes to start or
expand a business. Small and medium enterprise (SME) development, on the other
hand focuses on developing the enterprise, whether or not it employs or is led by
individuals who can be considered entrepreneurial. Furthermore, entrepreneurship
development concentrates more on growth potential and innovation than SME
development does. However, many of the lessons learned from experience in both
types of development are similar. Entrepreneurship development programmes should
be formulated to identity risks and determine the likelihood of success, identify the
factors that affect the levels of entrepreneurship in a country. These factors include the
perception of opportunity, degree of aspect accorded to entrepreneurs, acceptance of
wide disparities in income and a family environment which is oriented towards
business.

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1.2 REVIEW OF LITERATURE
The literature on the entrepreneurship and MSMEs development has been reviewed
and presented below.
Brimmer P.A. (1955)1 analyzed the relationship between entrepreneurial
development and managing agency system and observed that the managing agency system
provided the scope for the development of entrepreneurs. Finance and management
factors have facilitated the entrepreneurial development. However, the growth of managing
agency system has also led to high economic concentration.
James T and Crory Me (1956)2 conducted a case study of 17 small-scale firms in
Uttar Pradesh and focused their attention on the craftsman entrepreneurs whom they
regarded as a much needed source of good industrial entrepreneurship. They analyzed,
among other things, the reasons for the lack of growth of their firms and recommended that
providing them with adequate capital would give them an opportunity to grow especially
through provision of capital.
James J. Berna(1960)3 studied 50 medium sized manufacturing firms engaged
in various kinds of light engineering production in and around Chennai and Coimbatore
cities. His basic finding went against the popular belief that caste and tradition play an
important role in the emergence of entrepreneurs. He suggested that the performance of
entrepreneurs would improve and their contribution to industrial progress could be
increased if certain help in techniques of production and management were provided to
them.
Administrative Staff College (1968)4 in its study concluded that the majority of the
entrepreneurs were in the middle age group. Profit and confidence in the line of activity
chosen were the main factors that made these entrepreneurs enter the industry. Many
entrepreneurs faced the problems caused on account of lack of guidance in the initial
stages of setting up of their enterprises.
Sharma (1976) 5 made an exploratory study to examine the inter-state patterns
of entrepreneurial performance of Punjab and Utter Pradesh with special reference to
small entrepreneurs. He observed that entrepreneurship relied much upon the
prevailing entrepreneurial climate and inter-state variations in the entrepreneurial
milieu.
Sarveshwar Rao and Nafzinger (1976)6 in their article examined the
entrepreneurs operating in Visakhapatnam (Andhra Pradesh) to find out the factors
determining the supply of entrepreneurs and success of industrial entrepreneurship. They
found that socio-cultural features of the traditional Indian society were no longer standing

8
in the way of development of modern entrepreneurship. The authors stressed the
importance of education, training and work-experience for the successful development
of modern entrepreneurship.
Gangadhara Rao (1978)7 in his book studied 81 entrepreneurs operating in 13
industrial estates of coastal Andhra Pradesh. He evaluated the impact of the industrial
estates programme on the emergence of entrepreneurship and the growth of small units in
the sample estates. He came to the conclusion that the impact of industrial estates on the
emergence of entrepreneurship was only marginal. He also found that educational and
income levels are the most important factors in motivating small entrepreneurs to
establish units in the estates. The author also felt that of all motivating factors the desire to
get gainfully occupied was the most important factor of entrepreneurs.
Small Industries Extension Training Institute (1980)8 examined in a study about
the impact of concessional finance on industrial development of backward areas in
Chittoor district of Andhra Pradesh covering 130 small industry entrepreneurs. As
-regards the under-developed areas, the study observed that the growth in the number of
units and the expansion in capital intensity alone might not create the necessary impetus for
growth unless considerable productivity changes were also effected through fuller capacity
utilization.
Sharma (1980)9 in his study evaluated the performance of promoters of 316
government manufacturing companies, which were incorporated on or after 1 st April, 1947,
in terms of entrepreneurial growth. The study identified and explained in detail the
environmental factors affecting entrepreneurship, institutional finance and other resources
of the entrepreneurs and their locational mobility.
Manohar Deshponde (1982)10 surveyed 90 units in the Marathwada region of
Maharashtra, and evaluated the socio-economic origins of the entrepreneurs and
problems faced by them at various stages. He established the relationship between
performance and its causative factors. The study revealed that the upper strata of society
availed itself of most of the economic benefits provided by the government agencies. It
emphasized that primary occupation was an important pre-condition for the development of
entrepreneurship. It revealed that caste, family occupation and father's occupational status
were important for entry into the business of manufacturing.
Rathnam (1984)11 in his article proposed that infrastructure development for
Industrialization in rural areas and investment in basic services designed to realize the full
potential of human resources in rural areas should receive a high priority.

9
 Hidimani (1985)12 did survey on 200 traditionally trading entrepreneurs belonging
to the weaving and non-weaving castes, in the handloom industry of lahantapur. His study
indicates that caste attachment to the caste occupation was strong, but interestingly it
promoted entrepreneurship in the case of the trading caste and hindered it in the case of the
weaving caste. He is of the view that this dual role of caste in entrepreneurship is mainly
due to the presence or lack of several social, economic, political, educational and human
resource factors.
Singh (1986)13 studied in his book some cases of successful entrepreneurs. It aims at
identifying factors for the success and developing entrepreneurship for economic growth
in a country. The author examines the social values related to entrepreneurship, the
importance of entrepreneurship in economic development, governmental efforts to
encourage entrepreneurs, factors influencing entrepreneurship and suggests a model for
entrepreneurial development.
Lakshmana Rao (1986)14 in his book, "Industrial Entrepreneurship in India",
studied about fifty-one entrepreneurs of the Krishna and Guntur districts in Andhra Pradesh,
with a view to finding out how far the programmes and policies of the Government fostered
industrial entrepreneurship. He is of the view that the Government schemes did certainly
give a boost to entrepreneurship in Andhra Pradesh.
Gangadhara Rao (1986) 15 also examined the questions of Industrial
entrepreneurship and entrepreneurs' operation in industrial estates, with special reference to
those in the coastal regions of Andhra Pradesh. He has selected 87 entrepreneurs
operating in 13 estates of the chosen region. It is his observation that educational and
income levels are important factors in motivating entrepreneurship. He found that,
moneymaking is the major ambition of the entrepreneurs he has surveyed. He came to
the conclusion that the impact of industrial estates on the emergence of entrepreneurship in
Coastal Andhra Pradesh is marginal. He suggested that appropriate and effective steps have
to be taken at an accelerated pace to germinate entrepreneurship.
Gupta (1987)16 in his book, "Entrepreneurship in Small-Scale Industries" evaluated
the entrepreneurial performance of 60 small entrepreneurs, taking 20 each from Kanpur,
Allahabad and Gorakhpur, in Utter Pradesh. He described in detail the essential qualities and
functions of entrepreneurs, policy framework and support systems to develop
entrepreneurship in the small sector. He made recommendations for framing
policies in future and outlines the role of the Government in developing entrepreneurship
in the small industry sector.
Misra (1987) 17 examines in his book the role of specialized financial

10
institutions in generating and developing new entrepreneurs and indicates that the pursuit of
conservative policies has led to economic concentration and consequently, this has hampered
the growth of industrial entrepreneurship. He has stressed that the adoption of liberalized
policies creates a favorable climate for the sustenance of entrepreneurial development.
Bhanushali (1987)18 in his book analyzed the economic, social and educational
background of entrepreneurs. It is his view that entrepreneurs from the "marginal
groups/minorities, who are trained in engineering and those who have contact with the
engineering industry, have better capabilities to achieve success.
Fanimekala (1988) 19 in her article made a comparative study of 108
industrial estate-based small scale industries units and 35 non-industrial estate-based
small scale industries units in the Tiruchirapalli district of Tamil Nadu with reference to
entrepreneurial development. She concludes that the industrial estate programme has
helped the first generation entrepreneurs to take up industrial activity as self-employment
venture.
Indian Institute of Management (1988) 20 observed that the General
Manager, DIG as secretary to the single window committee, is expected to hasten up the
processing of entrepreneurial cases and thus help the minimization of delay. The single
window committee recommends speedier action.
Narasimha Murthy(1989)21 conducted a study to evaluate the growth of
enterprises in Anakapalli and Gudivada, which are two small towns of Coastal Andhra
Pradesh. On the basis of the entrepreneurial activities like farming, trading, manufacturing,
profession etc., he sought to identify the socio-economic origins, to ascertain
entrepreneurial process and promises, to analyze occupational and geographical mobility
through generations and to highlight their problems.
Bhatt (1989)22 in his article, suggested that the potential entrepreneurs have to be
identified and trained sufficiently to take up and operate small-scale enterprises, in order to
augment entrepreneurial skills and thereby improve the viability of enterprises so as to
sustain the process of industrialization.
Ajay Lakanpal (1990) 23 examined the performance of the network of
institutions in entrepreneurial development in Himachal Pradesh. He categorized the
institutions into three broad groups, viz., financing institutions, promotional institutions
and training institutions. He analyzed the 58 enterprises in Solam district of Himachal
Pradesh to evaluate the influence of infrastructure on entrepreneurship. He stressed the
need to make certain adjustments in the institutional framework and recommends the
creation of a State level Single Window Industrial Support System (SWISS).

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 Khanaka (1990) 24 analyzed the performance and problems of entrepreneurs and
observes that, the provision of liberal incentives and concessions to the
entrepreneurs will promote the small industry development which in turn facilitates
entrepreneurial development.
Pannalal (1991) 25 in his article briefly takes into account 2,822 small-scale
industries in 3 industrial states of Andhra Pradesh, which were spread over the three regions
of the State. He found that 62.60 per cent of the engineering industries could be regarded as
an important segment of inactivity in the promotion and dispersion of small-scale industries.
As such these industries deserve to be accorded a special emphasis among the
entrepreneurs intending to set-up small-scale units.
Jayachandran, Vijayalakshmi and Himachalam (1994)26 in their study analyzed
the socio-economic background and motivational factors of the entrepreneurs and their
role in the development of entrepreneurship in the small-scale industrial units in the
Tirupati Industrial Estate. They found that entrepreneurship development and industrial
development are like two sides of the same coin. In fact, development of small-scale
industries directly promotes entrepreneurship
Himachalam and Jayachandran (1997) 27 conducted a study of 39 small-units
in Tirupati Industrial Estate to examine the factors motivating the entrepreneurs,
their background and their role in the development of entrepreneurship in small-scale
industries. The study reveals that 18 out of 39 entrepreneurs have trade as their
background, and earning money for their livelihood motivated 16 out of 39
entrepreneurs. It was found that 13 were motivated to become entrepreneurs as they were
unemployed.
Krishna Kumar (1997)28 argues, in his paper on entrepreneurial success, that
economic development can be sustained through industrialization and especially by
developing the small industry by encouraging entrepreneurship in those who have the
potentialities for it, which results in augmenting the growth possibilities. It also helps in
adding value to investment while reducing unemployment.
Mitra, et. al (1997) 29 in their paper indicated that there is a need for
entrepreneurial training so as to promote entrepreneurship in order to solve the
problems of unemployment. They emphasized the need for carrying out research
continuously so as to evolve entrepreneurial development models with appropriate training
methods.

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 Lillian Vernonkatz (1998) 30 in her article has identified risk taking, role
models and locus of control as the key elements in entrepreneurial motivation. She
stresses the need for entrepreneurial education in the areas of finance, strategic
planning, marketing and management for promoting entrepreneurial development.
Anitha and Laxmishra (1999)31 in their article concern themselves with women
entrepreneurs and find that their emergence depends on economic, sociological and cultural
and other factors. They stress that provision of entrepreneurial education, financing and
marketing facilities and the adoption of promotional measures and policies by governmental
and non-governmental agencies would promote women entrepreneurship development.
Armstrong, Peter (2001)32 in his article argued that in spite of ideological pressure
to demonstrate a link between entrepreneurship and risk, none of the researchers
succeeded in doing so. Nor has risk been a prevalent feature of new venture creation in
either general or science -based startups.
Pope, Ralph (2002)33 examined what factors motivate small firms to export. The
results suggest that firms with 25 or fewer employees export for two main reasons: The
firm has a unique product, and it has a technological advantage over competitors. Firms
with more than 25 employees export for the above two reasons, plus to achieve economies
of scale and to avoid losing out on foreign opportunities.
Jaya Krishna (2004)34 evaluated the entrepreneurs' awareness of both
qualitative and quantitative information, from 30 randomly selected entrepreneurs during
May-June 2002, in and around the rural and urban areas of Bangalore. His conclusions are:
(a) Perennial activity dominates over seasonal activity, (b) Young generation entrepreneurs
employ more managerial staff than the old generation entrepreneurs, (c) Entrepreneurs are
facing sanitary and phytosanitary problem (d) Small scale industries are facing
competition from large and medium scale industries outside the State rather than within
the State, and(e) Entrepreneurs are experiencing the impact of WTO and its agreements
across the year of establishment and generations. However, their awareness of the WTO
agreements and their implications is poor.
John P, Breen (2004)35 in his article covered three terms Enterprise,
Entrepreneurship and Small Business and examined preference for the use of the terms in
specific circumstances. He found that entrepreneurship is more common in the USA and
Canada, while enterprise is more often used in UK and Australia. Because the terms are
often used interchangeably, there is misunderstanding about their exact meaning. In
Australia, the term entrepreneur has negative connotations not related to the true meaning of

13
the word.
James Richardson (2004) 36 in his study suggested that entrepreneurial activity
can be a source of job creation and economic growth. Governments and international
development organizations have initiated numerous programmes to stimulate and support
entrepreneurs in both developing and developed countries of Asia. This paper reviews
some of the theory and evidence about the role of entrepreneurial activity in economic
development and poverty alleviation. The relationship is shown to be complex -
entrepreneurial activity appears to be neither necessary nor sufficient for economic
development to occur.
Anil K. Lai and Ronald W.Clement (2005) 37 in their article provided a
revealing contrast between how individuals react under a government-controlled
environment and how they respond to a market - based environment and argue that recent
market reforms are encouraging the spirit of entrepreneurship.
Sameer Kumar and Dan Liu (2005)38 in their paper stressed the impact of
globalization on entrepreneurial enterprises in the world markets. Globalization has a
significant impact on entrepreneurial enterprises in many ways. The changing international
environment in finance, human resources, technology, politics, economics, and social
conditions created opportunities for the entrepreneurial enterprises to expand their
international businesses at a much faster pace. Globalization provides ample opportunity
for entrepreneurial ventures to expand their business internationally. A number of
hypotheses are examined to understand how globalization has affected the survival and
sustainable development of entrepreneurial enterprises.
Murugesan and Sankaran (2005) 39 in their study concluded that in the general
perception of entrepreneurs, the problem relating to raw materials was considered to be
serious by the entrepreneurs and shortage of working capital was the other major problem.
Narasimha Reddy et. al., (2006)40 identified the motivation factors including
experience in the activity selected, good business opportunities, and opportunity to explore
their strength and earn more money.
Victor J. Garcia-Morales, et al., (2006) 41 in their paper analyzed the
differences among entrepreneurial, learning, innovator and problematic small and medium
enterprises based on Organizational Learning (OL) and Organizational Innovation (01)
and on the capabilities of personal mastery, transformational leadership, shared
vision, absorptive capability, team work and organizational performance. Their investigation
develops a number of testable hypotheses on the influence of these capabilities on

14
performance with in the four different groups of organizations which they have
surveyed. The hypotheses are tested using data from 299 Spanish SMEs.
Murugesan and Sankaran (2006)42 did a study of 153 samples from Pudukkottai
district of Tamil Nadu and concluded that there is no significant difference between the
performance level of technically qualified and non-technically qualified entrepreneurs.
The performance of the secondary-level school educated entrepreneurs seemed to be
fairly better. Possibly, the school level qualified entrepreneurs had longer experience to
their credit when compared with the technically qualified entrepreneurs.
Manickavasagamet. et al., (2007) 43 concluded in their work that family
members, friends and relatives influenced to start the entrepreneurial activity. In addition to
this, the study highlighted the fact that lack of training, lack of awareness, limited
support from family members, lack of guidance and counselling, lack of finance and
marketing are the initial problems of entrepreneurs,
William L. Smith, Ken Schallenkamp, and Douglas E. Eichholz (2007)44 in their
exploratory study suggested 17 skills as being critical to individuals seeking to embark on
entrepreneurial activities. The results reported the importance and usefulness of these
skills to individuals pursuing entrepreneurial activities. And finally the study disclosed
that nine of the skills ranked highest in both importance and usefulness. All 17 skills are
discussed in the context of the literature review and the exploratory study.
Saini and Bhatia (2007)45 in their study stated that the impact of
Entrepreneurship Development Programmes can be traced back to the early 1960s. While the
movement has gained considerable momentum since then, attempts to evaluate their
effectiveness and impact are being made only since the last few years. They conclude that
they employ a more comprehensive framework to evaluate such programmes organized in a
specific region of the country.
Sudarsan (2008)46 in his thesis covered all aspects of entrepreneurial activities,
functions, and problems, and has statistically analyzed their responses to be able to arrive at
reliable conclusions. The viable suggestions offered to improve the conditions of the small
enterprises and their entrepreneurs.
Sierdjan Koster and Shailendra Kumar Rai (2008)47 in their article analyzed
the possible link between entrepreneurship and economic development for the case of India.
This link has been studied extensively for developed countries, but less so for developing
countries. They used the Original Equipment Manufacturing model as a reference; we
expect declining rates of entrepreneurship, as economic development opens up employment

15
possibilities decreasing the number of necessity entrepreneurship. This pattern, however, is
not found in the Indian case. Rather, entrepreneurship appears to be an important driver of
recent economic growth.
Joze Kocjancic and Stefan Bojnec (2008) 48 in their survey attempted to
investigate factors of small enterprise dynamics in the wood industry in Slovenia. The
empirical analysis using the statistical multivariate methods showed that the enterprise
entry is determined by the role of entrepreneur and by the market environment of the
enterprise. The enterprise exit is determined by the enterprise market environment of
financial and regulatory nature and to a lesser extent by the role of entrepreneur. Business
education, proper enabling institutional and legal frameworks and Government policies are
additional factors important for enterprise dynamics and enterprise survival in emerging
competitive markets.
Vidhan Maheswari and Pratishtha (2008)49 in their paper dealt with issues on the
future of Small-Scale Industries (SSIs) in India in the present era of globalization and
liberalization with the advent of TRIPS. Also it specifically focuses on the SSIs
having investment of less than 1 crore and discusses the importance of Indian SSIs in
changing economic environment and its implications for small industries. It examines the
reasons for protecting intellectual wealth in the present scenario of economic development
in India. It analyses the role of Government in making the small enterprises viable. It also
discusses measures that are being taken and suggests measures that should be taken to
make small enterprises viable.
Ken Schallenkamp and William Smith (2008)50 in their article examined the
perspective of Small Business Development Centre (SBDC) directors located in several
mid-American States on 17 skills suggested as being critical to individuals seeking to
embark on entrepreneurial activities. The results of this survey are compared to an earlier
exploratory study of SBDC clients of one regional office in their first two years after
initial contact with the office. Two of the skills (Operational and Higher-Order), viewed
differently by the two groups, were examined in more detail.
Colin, Williams (2009)51 in his article evaluated whether entrepreneurs trade off-the
books and how this varies across populations. He reported the results of 811 to-face
interviews in English in affluent and deprived localities. He found that even though only a
relatively small proportion of all off-the-books work is conducted by nascent and
established entrepreneurs, although the share is higher in affluent populations, some three-
quarters of business start-ups and the established self-employed trade wholly or partially

16
off-the-books, and this figure is even higher in deprived populations. The outcome is a call
to reposition the hidden enterprise culture more centre-stage in discussions of
entrepreneurship and enterprise development.
Chyi-Lyi (Kathleen) Liang and Paul Dunn (2009)52 surveyed three hundred and
forty –four entrepreneurial couples in north Louisiana (USA). They were interviewed to
determine the impact on entrepreneurs and their spouses in starting and managing a new
venture. They identified that there was commonality between entrepreneurs and their
spouses related to expectations and outcomes for and from the new venture, but more
couples actually felt happier and financially better off after starting and running a business
than they had expected. Some realized that the time and effort required were important
negatives and most entrepreneurs and their spouses would start a new venture again given
the learning that occurred in the new venture formation process.
Ken Schallenkamp and William, Smith (2009)53 in their article examined the
relationship between networking and entrepreneurial ventures. The results of two
exploratory studies reviewed recent literature to summaries the latest research on
entrepreneurial use of networking. Based on this review, eight propositions were developed
to better articulate alternate approaches to our understanding of the use of networking by
entrepreneurs and their benefits.
Kalpande, Gupta and Dandekar (2010)54 in their article demonstrated the positive
impact of Total Quality Management (TQM) practices on small and medium scale
enterprises. These have relied on manager's self-assessment of performance in reaching the
objectives of study. It is also observed that many SMEs are ineffective and some are closed
down. The main problem of those SMEs seems to be the low quality of their products and
rise in competition in the market. To stand in the market, it is necessary for SMEs to face
new challenges by adopting proper strategy. SWOT (Strength, Opportunity, Weakness and
Threats) analysis is one of the techniques to undertake a more structural analysis to
formulate the best strategy.
Mahendra, Patidar (2010)55 in his paper elaborated the role of literacy in the
economic development of nation. He also suggested that when the literacy is high in nation,
then there will be more number of entrepreneurs and the flow of money will be huge. If
new enterprises come up, the economy grows with the amount of tax collected. New
enterprises lead to more employment generation and in turn reduce the unemployment rate.
He concludes that, a nation with a low unemployment rate will develop very rapidly.

17
 Sunil Kr Saikia (2011) 56 identified various reasons for slow growth rate of
MSME sector. Also he addressed the need to build a proper and effective strategy for
the development of our economy through the MSME sector by motivating and changing
the mindset and attitude of the local youth for taking up various entrepreneurial ventures,
improving the infrastructural facilities by providing continuous research and development
(R&D) efforts and product innovations.
Sankaran (2011) 57 in his article "Entrepreneurship and Economic
Development" explained that the entrepreneurship is one of the important factors in
economic development. Such significant persons are suffering due to several problems in
developing countries. Particularly, the young entrepreneurs are suffering heavily due to some
socio-economic and cultural factors. He also addressed the problems of young entrepreneurs
in southernmost district of Tamil Nadu.
Rao M.N., (2011)58 in his study applied the concept of street-level bureaucracy from
public management to analyze the issues relating to the implementation of a mini Hydel
project in India, and draws important lessons for entrepreneurs as well as policy planners for
the promotion of rural development through entrepreneurship in emerging markets in
general. The paper concludes, based on first-hand observation of one such power sector start-
up in India over a three-year period and also analyzed the issues confronting entrepreneurs in
dealing with street-level bureaucracy.
Bhardwaj Sushil and Kirankumar Momaya (2011)59 discussed Social
Entrepreneurship (SE). The authors presented the SE as a multi-dimensional construct
involving the entrepreneurial behavior to achieve the social mission, a coherent unity of
purpose and action and the ability to recognize social value. They presented a
conceptual model through a number of examples and empirical examples from India. This
model can guide emerging social entrepreneurial ventures in strategic decision-making to
understand the critical success factors for sustainability of such enterprises. It can also assist
them in setting realistic criteria for evaluating their short and long-term performance.
Singh, R., Verma, O.P., and Anjum, B. (2012)60 in “Small Scale Industry: An
Engine of Growth”, analyzed the performance of small scale industry in India and focused
on policy changes which have opened new opportunities for this sector. Their study
concluded that SSI sector has made good progress in terms of number of units, production
and employment levels. The study recommended the emergence of technology
development and strengthening of financial infrastructure to boost SSI and to achieve
growth target.

18
 Deepti Pachauri (2012)61 attempted a study that based on the emergence of
women entrepreneurship making significant impact in all segments of economy and the
problems faced by them in setting up and running their enterprise. The study was
conducted in various training centers of KVIC, MSMEs to collect the data and number of
women entrepreneur trainees’. The study was based on secondary data collected from
various training institutes, SSI office and financial banks which provide financial
assistance. Women entrepreneurs are having innovative thinking and foresightedness yet
proper planning and execution is required at all levels. A majority of women entrepreneurs
are from middle class families have low technical education but desire to become
entrepreneurs. The literacy and educational status of women improved considerably during
the past few decades. At this juncture effective steps are needed to provide entrepreneurial
orientation and skill awareness to women.
Jyothi Bahl (2012)62 expressed that the entrepreneurship has gained greater
significance at global level under changing economic scenario. After Independence,
several entrepreneurship development programs have been started to develop the skill,
knowledge, and competence among the entrepreneurs. In spite of various entrepreneurship
development programmes launched by the government and non-government agencies, the
entrepreneurs are encountering a number of problems for establishing economically viable
small- scale units. Women contribute significantly to the running of family businesses
mostly in the form of unpaid effort and skills. He also stated that rural entrepreneurship is
the answer for the removal of rural poverty in India. The problem is that most of the rural
youth do not think of entrepreneurship as the career option. Therefore, the rural
youth need to be motivated to take up entrepreneurship as a career, with training and
sustaining support systems providing all necessary assistance.
Palaniappan. G, C. S. Ramani Gopal and A. Mani (2012)63 have analyzed that
the women have been successful in breaking their confinement within the limits of their
homes by entering into varied kinds of professional and services Women entrepreneurs
have proved to be on par with their men counterparts in business acumen and are emerging
as smart and dynamic entrepreneurs. Women owned businesses are highly increasing in
the economies of almost all countries. The hidden entrepreneurial potentials of women
have gradually been changing with the growing sensitivity to the role and economic status
in the society. Even though the government organizes women by various associations,
they are not ready to undertake the business. Thus, the study aims at undertaking the

19
entrepreneurial development among women, highlights their motivational forces and
relationship between socio-economic background of women entrepreneurs, motivational
factors and their existing entrepreneurial traits.
Shabana A. Memon (2012)64 says that the entrepreneurship is a key element of
growth and development prospects for all countries and it is most relevant to transition
countries.. Entrepreneurship has been a male-dominated phenomenon from the very early
age but time has changed the situation and brought women as today's most memorable and
inspirational entrepreneurs. Around 50 women entrepreneurs in Kolhapur city were
surveyed through a questionnaire and an attempt was made in this paper to highlight major
issues of women entrepreneurs, identify potentialities of enterprising women who are
successful and thereby provide role models for potential women entrepreneurs particularly
for young women entering the labor market for the first time.
Venkatesh Babu (2012)65 stated that the entrepreneur is a person who is
responsible for setting up of a business or an enterprise. Entrepreneurs create new
business, generating jobs for themselves those they employ. Entrepreneurship is a vast
field, it is difficult to conduct research on the whole field. In the present study an attempt
has been made to know the challenges and prospectus for women entrepreneurship in
India in general and in specific in Davangere city. To conduct study three successful
women entrepreneurs were selected irrespective of field. Women are selected from
industries field, DTP field and hotel field. Information has been collected from the entire
three entrepreneurs and analyzed the case on the basis of information provided by them,
problems faced by them and prospectus or remedies taken to overcome the problems, and
their entrepreneurial successful mantra was also discussed in this paper.
Alit Sen Gupthas (2012)66 paper tries to focus on the women entrepreneur
development prospects. The survey and the study brought to light the capacity of the
women who came forward with the ability to use the unutilized resource. The sample
survey of the various districts clarifies that though immense prospect prevail and the zeal
of the women to start something new has been crushed down with the ongoing problem
prevailing in the area. The objective of the study was to explore the hidden prospect of
women entrepreneurship and to find technique to uplift anxiety for leadership in women
while tracking to reach the expected objective the methodology so adopted was a sample
convenient method for various districts. The problems are many but to bring out the entire
population out of the grip of prejudice, the women should get themselves mentally
prepared to change with the changing environment.

20
 Kapoor, Amitesh (2012)67 in his paper on “Financing Strategies for SMEs in
India – A Way Out” has taken random sampling of 200 SMEs and found that there are
various financing options for SMEs but access to these funds has been difficult inspite of
Government initiatives. According to him most of the SMEs raise funds from the informal
sources as it is easy and flexible option. He has also found that most of the SMEs raise
funds from both informal and formal sources and try to strike a balance between the two.
SMEs rather should consider all financing options that maximize the value of the business
enterprise
Renu Chaudhary (2013)68 analyzed that the women constitutes the essential
member of the family, which leads to society and nation. Social and economic
development of women is necessary for overall economic development of any society or a
country. Entrepreneurship is the state of mind which every woman has in her but has not
been capitalized in India in way in which it should be. Due to change in environment, now
people are more comfortable to accept leading role of women in our society, though there
are some exceptions. Our increasing dependency on service sector has created many
entrepreneurial opportunities especially for women where they can excel their skills with
maintaining balance in their life.
Vijay Kumumbhar (2013)69 has analyzed that the aim of his study is to discuss
the issues regarding women entrepreneurship in rural India. This paper is mostly based on
secondary data and some observations. For the identification of the issues, the author has
reviewed different research articles and reports. Findings of this study reveal that absence
of definite agenda of life, absence of balance between family and career obligations of
women, poor degree of financial freedom for women, absence of direct ownership of the
property etc.
Jayan (2013)70 analyzed women entrepreneurship in MSMEs and the relationship
between industries related factors and success of entrepreneurs with special reference to
Coimbatore city. The study identified that the factors which motivate women to become a
successful entrepreneurs are achievement, motivation and human relation.
Benard and Victor (2013)71 examined the growth of women entrepreneurs in
Dares Salaam city of Tanzania on strengths, weaknesses, opportunities and threats. It used
a sample of 130 women entrepreneurs and simple random sampling technique for the
selection of sample. The study found that a major strength was the need for financial
independence for women entrepreneurs. It also observed that the major opportunity was
the desire to own which leads to women entrepreneurship. It further found that the
weakness was that most women fail because of lack of education and the major threat to

21
be the pressure of child care in the family.
Singh and Raina (2013)72 described the problems and challenges faced by women
entrepreneurs in India and also analyzed the policies of Indian government for women.
The study mainly focused to find out the status of women entrepreneurs in India. The
study found that in modern India, more and more women are taking up entrepreneurial
activity especially in MSMEs. It also observed that Indian women have imprinted a
position for themselves in the male dominated world. It further showed that Indian women
can well manage their household work as well their workplace deadlines.
K. Suneetha and T.Sankaraiah (2014)73 in their article, “Problems of MSMEs
and entrepreneurs in Kadapa district”, conducted a survey on 156 enterprises to study
their problems. It was found that 103 enterprises were facing financial problems and
among them 62.8 per cent are from micro enterprises. Moreover 23 percent found meager
assistance from government agencies. The study covered the divisions of Kadapa,
Jammulamadugu and Rajampet
Vasu and Jayachandra (2014)74 analyzed the growth and development in micro,
small and medium enterprises in India. They also studied the problems and prospects of
this sector. It found out that this sector has performed continuously well over years and
with proper emphasis and government initiations, the problems could be overcome.
Katyal and Xaviour (2015)75 focused on the HR operations and systems in
MSMEs along with other challenges faced by this sector. He found that there were very
few MSMEs that had a separate HR department and especially in new units the owners
were handling the HR practices.
Credit Rating Information Service of India Limited (2016 )76 studied the problems
of MSMEs. The study pointed out that finance issues pose the biggest challenge among a
host of factors hindering the growth of MSMEs in the country, apart from issues like
infrastructure, government policy, marketing and technology. MSMEs also experience cash
flow problems due to slow moving or excessive stock, which gives rise to poor stock or
inventory management, too generous credit terms, cash watered on unprofitable products or
services and unnecessary expenditure (money spent on buildings, houses, luxury cars) as well
as drawings. The study suggested cash-flow management of MSMEs which mainly includes
action related to cash payment, collection management and liquidity management, to help
them maintain an optimal cash balance that is neither excessive nor deficient.

22
1.3 NEED FOR THE STUDY
Entrepreneurship is a vital input for industrial development. The country which has
sound entrepreneurship, can progress in all spheres of the economy, as it can transform
all available resources into valuable products. The progress of a developing country like
India is based on enthusiastic entrepreneurs who are committed to maximize the production
as well as profitability of their organizations as they are endowed with the potential to work
hard. In this endeavor entrepreneur has to be motivated and encouraged to contribute his
mite to the economic progress of our country. In spite of the measures taken by the
Government for creating a congenial atmosphere to encourage entrepreneurs, the
development of entrepreneurship in our country is still far behind the expectations.
The overall industrial scenario in our country is bleak and dismal particularly in the
MSMEs where majority of the units are in a moribund state, because the managerial and
innovative skills are conspicuous by their absence. Above all, the entrepreneurs are afraid
that all small units will land in trouble due to industrial sickness, which is a quite serious
problem in India. This situation naturally discourages prospective entrepreneurs. Therefore,
it is absolutely necessary that the entrepreneurs are properly motivated, encouraged,
trained in technical and managerial skills, and provided with adequate financial resources
for their successful functioning .
It may be taken as axiomatic that, there can be no industrial development at all
without a commensurate development of entrepreneurship in the MSMEs. While the
Government has become aware of the need to develop entrepreneurship and has taken
several steps to promote it, the desired results have yet to be achieved. Part of the blame
should lie with the prospective entrepreneurs, if they are found deficient of the qualities
required of an effective entrepreneur such as aptitude, confidence, motivation, vision,
envisaging pros and cons of the venture.
Andhra Pradesh is endowed with abundant natural, mineral and agro-based
resources, which are potential for industrial development, particularly small-scale industrial
development. In the MSMEs sector, a majority of the small units in the State are in the
sick list. In spite of many efforts made to boost industrial development in the State,
there has not been as much industrialization as desired. In order to build a proper and
effective strategy for the development of our country's economy through the MSME sector,
some of the important strategies could be motivating and changing of the mindset and
attitude of the local youth for taking up various entrepreneurial ventures. Improving required
infrastructural facilities by providing adequate power supply, timely finance from the

23
commercial banks and financial institutions, providing of required information quickly by
local District Industries centre (DIC) and other promotional measures are essential
requisites for the development.
The studies in the sphere of entrepreneurship surveyed hitherto appear to have
focused attention on general aspects at the macro level without covering any specific
problems of entrepreneurship encountered in the backward districts of the nation. Moreover,
there does not seem to be any research study so far which covers all the related aspects of
entrepreneurship in general and the micro, small and medium enterprises in particular,
especially in the notified industrially backward districts of the State. And hence, the present
study of its different aspects is without doubt significant. Further, no study has been carried
out so far relating to entrepreneurship in MSMEs. That too, the studies in the sphere of
entrepreneurship surveyed hitherto appeared to have focused attention on general aspects
without covering any specific problems of entrepreneurship. Moreover, there does not
seem to have existed any research study so far which covers all the related
aspects of entrepreneurship in the industrial sector in general and the MSMEs in particular
and no specific efforts have been made so far. Hence, the present study focuses on the
various aspects of entrepreneurship and micro, small and medium enterprises development in
YSR Kadapa district of Andhra Pradesh.
1.4 OBJECTIVES
The present study has the following specific objectives:
i) To review the entrepreneurship and MSMEs development in India,
ii) To study the socio-economic characteristics of entrepreneurs in the
Y.S.R. Kadapa district of Andhra Pradesh,
iii) To examine the major factors influencing entrepreneurs in promoting
their entrepreneurship in the study area,
iv) To assess the growth of sample enterprises in the study area
v) to identify and analyze the problems encountered by the entrepreneurs
in the study area,
1.5 HYPOTHESES

i) There is no significant growth of the entrepreneurship of MSMEs in India,

A.P and Kadapa district
ii) There is no difference in the development of entrepreneurship in the of
MSMEs in India, A.P and Y.S.R. Kadapa district
iii) There is no difference in the structure of MSMEs in Kadapa district

24
 iv) The government policies and programmes did not act as motivating and
facilitating factors for the entrepreneurs
v) There is no difference in the problems faced by the entrepreneurs of
MSMEs in Kadapa district
vi) There is no difference in the perception of entrepreneurs of MSMEs in
Kadapa district
1.6 METHODOLOGY
1.6.1 Sample Design
The present study is based on the survey of the select entrepreneurs of MSMEs in
Kadapa district. As on March 2015 there were 1479 enterprises in the MSMEs categories
in Kadapa district from this a sample of 10 per cent (on random basis) is taken from each
category. The size of sample amounts to 148. The total sample is distributed among their
different categories as shown in the Table below:

No. of Sample
Sl. No Category Total No. of Units
Units
1 Micro 780 78
2 Small 690 69
3 Medium 09 01
Total 1479 148

1.6.2 Sources of Data

The primary data were collected from the entrepreneurs through questionnaire. The
enterprises can be classified into three different types –micro, small, and medium
categories and also on the basis of manufacturing product like agro, chemical, electrical
etc. However, for the present study classification of micro, small, medium is taken into
the consideration as the topic for study is the MSMEs and entrepreneurship.
1.7 STATISTICAL TOOLS USED
The statistical tools like Growth Rates and Analysis of Variance Techniques
(ANOVA), are used for the analysis and interpretation of data. The growth rates are used
to look at the trends in the growth of number of enterprises, investment, employment and
output in India, A.P and Kadapa district. The ANOVA technique is used to analyze the
presence or absence, of the effect of the category of enterprises on the structure, problems
of the enterprises and the perception of the entrepreneurs. The conclusions are drawn
depending upon test results.

25
1.8 SCOPE OF THE STUDY
The study is based on primary and secondary data. The secondary data relates to
the trends in the growth of MSME in India, A.P and Kadapa district. The data covers a
period of fifteen years from 2001-02 to 2014-15, relating to number of enterprises,
investment, employment and output. The data were collected from various sources and
then compiled and as such they are only nearer to homogeneity.
1.9 CHAPTER DESIGN
The present study is divided into seven chapters.
The first chapter, ‘Introduction’, deals with the research problem, statement of the
problem, research design and study framework.
The second chapter ‘MSMEs and Entrepreneurship in India and AP’ deals with
growth of the MSMEs, government’s policy and promotional measures.
The third chapter, ‘MSMEs and Entrepreneurship in Kadapa district’ presents a
brief profile of the Kadapa district and the growth of MSME in the district.
The fourth chapter deals with the socio- economic profiles of entrepreneurs of
MSMEs in Kadapa district.
The fifth chapter deals with the factors influencing entrepreneurship development
in Kadapa district.
The sixth chapter deals with the problems and perception of entrepreneurs of
MSMEs in the district.
The last chapter deals with the summary of findings, conclusions and suggestions.

26
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