08 Chapter 05

5.
0 INTRODUCTION
Entrepreneurship is a spirit which depends upon many factors, economic, social,
psychological, administrative and political factors. These factors motivate the
entrepreneurs to get an idea of establishing industrial units. There are a few factors which
facilitate them to turn their idea into reality and setting up the unit. At the same time, the
entrepreneurs face some factors which discourage them from taking up the project.
Ultimately, when the motivating and facilitating factors overweigh the discouraging
factors, the industrial units enter into stage of fruition. It is necessary to delve into these
matters; the knowledge of those help the entrepreneurs on one had to face the challenges
and the government, on the other, in their policy making. The present chapter deals with
the motivating factors facilitating factors and also discouraging factors which influence the
entrepreneurs of MSMEs.
5.1 MOTIVATING FACTORS
There are many factors which motivate the entrepreneurs to set up industrial units.
They are economic, social and psychological. But, the strength of these motivators differs
with reference to the size of the unit and also between different individuals depending
upon family and social backgrounds. They are dealt in this section both at aggregate and
disaggregate level. First the motivators are dealt with for the total sample, micro, small
and medium sample units and at the second level each motivating factor is viewed with
reference to category of the unit. The motivating factors like making money, desire to
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achieve something and social prestige and the desire to fulfill father’s desire or spouse’s
desire are some of the important ones which seed the idea and kindly the desire to start an
industrial unit. The strength of these motivating factors - ranging from not at all, moderate
extent, considerable extent and to a great extent is measured or notified depending upon
the percentage of entrepreneur’s response.
Motivating Factors- Total MSMEs
The table 5.1 shows the strength of motivating factors for the total sample MSMEs
in Kadapa district.
Table 5.1
Motivating Factors Influencing Entrepreneurship in MSMEs
To a To a To a
Not at To some
Motivating factors moderate considerable great Total
all extent
extent extent extent
To make money 19 15 14 7 93 148
(12.80) (10.10) (9.50) (4.70) (62.80) (100.00)
To gain independent 7 11 9 16 105 148
living (4.70) (7.40) (6.10) (10.80) (70.90) (100.00)
Strong desire to do 6 10 8 12 112 148
something or achieve (4.10) (6.80) (5.40) (8.10) (75.70) (100.00)
To fulfill the desire 24 5 0 7 112 148
or my father/wife (16.20) (3.40) (0.00) (4.70) (75.70) (100.00)
To gain social 2 8 22 41 75 148
prestige (1.40) (5.40) (14.90) (27.70) (50.70) (100.00)
Lack of employment 0 10 30 75 33 148
(0.00) (6.80) (20.30) (50.70) (22.30) (100.00)
Others 33 22 31 19 43 148
(22.30) (14.90) (20.90) (12.80) (29.10) (100.00)
Note : Figures in parentheses indicates percentage to total.
Source: Field Study
In the case of total sample, the desire to achieve something and fulfillment of
father's or spouse’s desire are the two factors which influenced to a great extent. About 75
percent of the total entrepreneurs of the sample MSMEs replied that these are the two
motivating factors which influenced to a great extent. Gaining independent living is the
other factor which influenced to a great extent. Next follows the motivation to make
money; it was a motivation to a great extent to 62.80 per cent of the total sample
entrepreneurs. Gaining social prestige is the motivation to a great extent to about fifty
percent (50.70 per cent) of total sample of entrepreneurs. Lack of employment was the
motivator to a great extent to only 22.30 per cent of the entrepreneurs of the sample
MSMEs. As far as the factors which motivated to a considerable extent, lack of
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employment distantly followed by gaining social prestige formed greatest percentage of
50.70 per cent and 27.70 per cent respectively while other factors, motivation is not to a
considerable extent. Among those factors which motivated to a moderate extent, lack of
employment is the only one with 20.30 per cent entrepreneurs accepting it. Motivation to
make money is the only one which influenced to some extent, and motivation to satisfy
spouse’s desire, father’s desire has the highest percentage of 16.20 per cent entrepreneurs.
Thus, motivation to achieve something, to fulfill the desire of father or wife, to gain
independent living and to make money are the ones which influenced the entrepreneur to a
great extent, lack of employment influenced to a considerable extent and to a moderate
extent the entrepreneurs to set up MSMEs.
Motivating Factors – Micro Enterprises
The table 5.2 shows the strength of different motivating factors to start the
industrial unit in micro sector.
Table 5.2
Motivating Factors behind Starting the Industrial Unit- Micro Enterprises
To To a To a To a
Motivating factors Not at
some moderate considerable great Total
all
extent extent extent extent
To make money 16 5 7 2 48 78
(20.50) (6.40) (9.00) (2.60) (61.50) (100.00)
living (6.40) (6.40) (9.00) (5.10) (73.10) (100.00)
To fulfill the desire or 10 2 3 63 78
-
my father/wife (12.80) (2.60) (3.80) (80.80) (100.00)
To gain social prestige 2 6 10 15 45 78
(2.60) (7.70) (12.80) (19.20) (57.70) (100.00)
Lack of employment 8 11 35 24 78
-
(10.30) (14.10) (44.90) (30.80) (100.00)
Others 20 10 21 6 21 78
(25.60) (12.80) (26.90) (7.70) (26.90) (100.00)
Source: Field Study
The table shows that, as in the total sample, almost all the factors except lack of
employment served as the motivating factor to a great extent. Interestingly the motivation
to fulfill the desire of father/wife was the motivating factor to the highest percentage of
entrepreneurs (80.80 per cent), followed by the motivating factors of gaining
independence and the desire to achieve something with 73.10 per cent each. The desire to
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make money was the next motivating factor with 61.50 per cent of entrepreneurs and
gaining social prestige far 57.70 per cent of entrepreneurs. Lack of employment was the
motivating factor for only 30.80 per cent of entrepreneurs of sample micro units. Lack of
employment was motivating factor to a considerable extent to about forty five (44.90 per
cent) of the sample micro enterprises.
Motivating Factors- Small Enterprises
The table 5.3 shows the strength of different motivating factors to start the small
industrial unit among small enterprises.
Table 5.3
Motivating Factors behind Starting the Industrial Unit – Small Enterprises
To a To a To a
Not at To some
Motivating factors moderate considerable great Total
all extent
To make money 3 10 6 5 45 69
(4.30) (14.50) (8.70) (7.20) (65.20) (100.00)
To gain 2 6 2 12 47 69
independent living (2.90) (8.70) (2.90) (17.40) (68.10) (100.00)
Strong desire to do
1 4 4 6 54 69
something or
(1.40) (5.80) (5.80) (8.70) (78.30) (100.00)
achieve
To fulfil the desire 14 3 4 48 69
-
or my father/wife (20.30) (4.30) (5.80) (69.60) (100.00)
To gain social 0 2 12 25 30 69
prestige (0.00) (2.90) (17.40) (36.20) (43.50) (100.00)
Lack of 2 19 39 9 69
-
employment (2.90) (27.50) (56.50) (13.00) (100.00)
Others 12 12 10 13 22 69
(17.40) (17.40) (14.50) (18.80) (31.90) (100.00)
Source: Field Study
The table shows the desire to achieve something is the motivating factor to a great
extent with greatest percentage of 78.30 per cent entrepreneurs of small enterprises
followed by the desire to fulfill the desire of father/wife in 69.60 per cent of entrepreneurs,
gaining independent living to 68.10 per cent of entrepreneurs and the desire to make
money to 65.20 per cent of entrepreneurs. Gaining social prestige was again an important
motivating factor to a great extent to 43.50 per cent and to a considerable extent to 36.20
per cent of entrepreneurs of small enterprises. Lack of employment is also an important
motivating factor, to a considerable extent to 56.50 per cent and to a moderate extent to
27.50 per cent of entrepreneurs of sample small enterprises.
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Motivating Factors – Medium Enterprises
Table 5.4 shows the strength of motivating factor behind starting of medium
industrial enterprises.
Table 5.4
Motivating Factor Behind Starting Industrial Unit – Medium Enterprises
To To a To a To a
Not at
Motivating factors some moderate considerable great Total
all
Extent extent extent extent
To make money 0 0 1 0 0 1
(0.00) (0.00) (100.00) (0.00) (0.00) (100.00)
living (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
To fulfill the desire or 0 0 0 0 1 1
my father/wife (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
To gain social 0 0 0 1 0 1
prestige (0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
Lack of employment 0 0 0 1 0 1
(0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
Others 1 0 0 0 0 1
(100.00) (0.00) (0.00) (0.00) (0.00) (100.00)
Source: Field Study
In the case medium enterprises also, gaining independence, desire to achieve
something and the desire to fulfill the desire of father/wife are the important motivating
factors- to a great extent. Gaining social prestige and lack of employment are the
motivating factor to a considerable extent while making money is a motivating factor to a
moderate extent.
Making Money as Motivating Factor
Making money is the prime motivating factor for many enterprises. This is true
with the MSMEs also as shown in table 5.5
As the table shows, making money was the motivating factor to majority of the
entrepreneurs of the total sample; they form 62.80 per cent. This is also true with the
micro and small enterprises: 61.50 per cent of micro and 65.20 per cent of small enterprise
entrepreneurs responded that making money was a motivator to a great extent. While
20.50 per cent of micro enterprise entrepreneurs told that making money is not a motivator
at all, 14.50 per cent small enterprises entrepreneurs replied that it was a motivator to
some extent only. The single medium enterprise entrepreneur declared that making money
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Table 5.5
Making Money as the Motivating Factor
Category To To a To a To a
Not at Chi- P
of some moderate considerable great Total
all Square Value
enterprises extent extent extent extent
16 5 7 2 48 78
Micro (20.50) (6.40) (9.00) (2.60) (61.50) (100.00)
3 10 6 5 45 69
Small (4.30) (14.50) (8.70) (7.20) (65.20) (100.00)
0 0 1 0 0 1
21.228** 0.007
Medium (0.00) (0.00) (100.00) (0.00) (0.00) (100.00)
19 15 14 7 93 148
Total (12.80) (10.10) (9.50) (4.70) (62.80) (100.00)
Source: Field Study
was a motivator to a moderate extent. Other entrepreneurs expressed the view that making
money was a motivator to considerable extent to a moderate extent.
Thus, it can be observed that making money was a motivator; the strength varying
from the level of moderate extent to a great extent; to a moderate extent for the medium
enterprise, and to a great extent for the small enterprises followed by the micro enterprises.
That means, the strength differs depending upon the size of the units. The Chi-square
value of 21.228, significant at 1per cent level, also shows that there is difference between
micro, small and medium enterprises with regard to making money as the motivator.
Gaining Independent Living as Motivating Factor
Many entrepreneurs of MSMEs have set up nits to with the objective of gaining
independent living. Table 5.6 shows how far this has been motivating factor to the
entrepreneurs of MSMEs in the district.
Table 5.6
Gaining Independent Living as a Motivating Factor
Not Chi- P
at all Square Value
Enterprises extent extent extent extent
5 5 7 4 57 78
Micro
(6.40) (6.40) (9.00) (5.10) (73.10) (100.00)
2 6 2 12 47 69
Small
(2.90) (8.70) (2.90) (17.40) (68.10) (100.00)
9.067@ 0.938
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
7 11 9 16 105 148
Total
(4.70) (7.40) (6.10) (10.80) (70.90) (100.00)
Source: Field Study.
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The table shows that for about seventy percent (70.90 per cent) of the
entrepreneurs of sample MSMEs gaining independent living was a motivator to a great
extent and to a considerable extent to 10.80 per cent, to moderate extent to 6.10 per cent
and to a some extent to 7.40 per cent of the entrepreneurs. In the case of micro enterprises,
gaining independence was a motivating factor to a great extent for majority of
entrepreneurs (73.10 per cent). For other entrepreneurs, it was a motivating factor to a
considerable extent for 5.10 per cent, to a moderate extent (9.00 per cent) and to some
extent and not at all for 6.40 per cent each. In the case of small enterprises, gaining
independent living was strongest motivator, to a great extent to 68.10 per cent of the
entrepreneurs, distantly followed by those to whom it was a motivator to a considerable
extent (17.40 per cent) and to some extent (8.70 per cent).The entrepreneurs to whom it
was not at all a motivator and to a moderate extent from only 2.90 per cent each. To the
single entrepreneur of medium enterprise gaining independent living was a motivator to a
great extent. However, as the chi-square value shows, the difference between micro, small
and medium units is not significant as far as the gaining independent living as a motivator
is concerned; the chi-square value (9.067) is not significant. That means, gaining an
independent living is a strong motivator for all the categories of enterprises, micro, small
and medium ones.
Desire to Achieve Something as a Motivating Factor
The fire in the stomach of entrepreneurs is the desire to achieve something. This is
true, with the MSMEs also. Table 5.7 shows the strength of the motivator achieve
something behind setting up the industrial units.
Table 5.7
Desire to Achieve Something as a Motivating Factor
Not at Chi- P
all Square Value
5 6 4 6 57 78
Micro
(6.40) (7.70) (5.10) (7.70) (73.10) (100.00)
1 4 4 6 54 69
Small
(1.40) (5.80) (5.80) (8.70) (78.30) (100.00)
2.947@ 0.938
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
6 10 12 12 112 148
Total
(4.10) (10.80) (8.10) (8.10) (7.70) (100.00)
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The table shows that, for a maximum percentage of 75.70 per cent of the total
entrepreneurs of the total sample MSMEs, the desire to achieve something was the
motivating factor to a great extent; the percentage is highest in the case of small enterprise
(78.30 per cent) lower in the case of micro enterprise (73.10 per cent).The single
entrepreneur of medium enterprise also expressed that the desire to achieve something is
the motivating factor to a great extent. For other few entrepreneurs, either it was the
motivating factor to some extent (6.80 per cent for total sample 7.70 per cent for micro
enterprises and 5.80 per cent for small enterprise), to moderate extent (5.40 per cent for
total sample enterprises, to a moderate extent and 5.10 per cent for micro enterprises) and
to a considerable extent (8.10 per cent for total sample, 8.70 per cent for small unit and
7.70 per cent for micro enterprise)
Thus, from the table it can be concluded that the desire to achieve something is a
strong motivator behind conceiving an idea and to establish an industrial unit. This is true
for all the three categories of units, micro, small and medium ones. The chi-square value is
also not significant showing that there is no difference between the three categories of
units as far as the strength of the motive to achieve something in concerned.
Fulfilling the Desire of Father/Spouse as the Motivating Factor
Some of the entrepreneurs have set up the MSMEs unit to fulfill the desire of their
parents particularly father, and wife/spouse. Interestingly, this also served as motivating
factor to many people to a large extent (Table 5.8).
Table 5.8
Fulfilling the Desire of Father/Wife as Motivating Factor
Not at Chi- P
all Square Value
10 2 0 3 63 78
Micro
(12.80) (2.60) (0.00) (3.80) (80.80) (100.00)
14 3 0 4 48 69
Small
(20.30) (4.30) (0.00) (5.80) (69.60) (100.00)
0 0 0 0 1 1 2.830@ 0.830
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
24 0 0 7 112 148
Total
(16.20) (0.00) (0.00) (4.70) (75.70) (100.00)
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Out of the total sample about three-fourths (75.70) of the entrepreneurs have stated
that fulfilling the desire of father or wife was the motivator to a great extent. At the time it
was not a motivator at all to 16.20 per cent of the total sample entrepreneurs. Between
these two extreme small number of entrepreneurs to whom it was a motivator “to some
extent” (3.40 per cent), “to a considerable extent” (4.70 per cent)” to a moderate extent” to
same. These two extreme lie cases can be found in micro units where fulfilling the father’s
or wife’s desire was a motivator to great extent for 80.80 per cent of entrepreneurs and it is
not at all a motivator to 12.80 per cent of entrepreneurs, it was a motivator to a great
extent for about seventy percent (69.60 per cent) and a motivator not at all to about twenty
per cent (20.30 per cent). For the single entrepreneur in medium enterprise, fulfilling the
father’s desire/wife’s desire was a motivator to a great extent.
The Chi-square test results also show that the value is not significant indicating
that the difference as far as the motivator is concerned, between micro, small and medium
sector is not significant. The motive to fulfill the desire of father/wife is significant for all
the categories of units.
Gaining Social Prestige as the Motivating Factor
Entrepreneurs have the urge to gain social prestige through their achievement and
status. Gaining social prestige was also the prime motive factor behind establishing
industrial unit. Table 5.9 shows the strength of this motivating factor behind setting up an
industrial unit.
Table 5.9
Gaining Social Prestige as the Motivating Factor
Not at Chi- P
of Some moderate considerable great Total
all Square Value
2 6 10 15 45 78
Micro (2.60) (7.70) (12.80) (19.20) (57.70) (100.00)
0 2 12 25 30 69
Small 0.00) (2.90) (17.40) (36.20) (43.50) (100.00)
11.760@ 0.162
0 0 0 1 0 1
Medium (0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
2 8 22 41 75 148
Total (1.40) (5.40) (14.90) (27.70) (50.70) (100.00)
As the table shows, gaining social prestige was the motivating factor to a large
extent for about fifty percent (50.70 per cent) of entrepreneurs of total sample, and to a
considerable extent for 27.70 per cent followed by to a moderate extent to 14.90 per cent
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entrepreneurs. That means, the strength ranges through three levels of strength. In the case
of micro enterprises, the desire of gaining social prestige was motivator to a great extent
for 57.70 per cent to a considerable extent for 19.20 per cent and to a moderate extent for
12.80 per cent of entrepreneurs of sample units. In the case of small enterprises, the above
was motivating factor to a great extent to 43.50 per cent only, closely followed by those
for whom it was a motivator to a considerable extent 36.20 per cent) and for 17.40 per cent
entrepreneurs, it was a motivator to a moderate extent. For the single entrepreneur in the
medium sector, gaining social prestige was a motivator to a considerable extent.
However, as the chi-square value is not significant, it is observed that as far as the
desire to gain social prestige as the motivator to set up industrial units, there is no
significant difference between micro, small and medium enterprises. In respect of the size
of the unit, gaining social prestige was a motivator to a great extent, to a considerable
extent and also to a moderate extent. For very few entrepreneurs only, it was a motivator
to some extent and not a motivator at all.
Lack of Employment as a Motivating Factor
Sometimes lack of employment also motivates, (rather compels) to a get an idea of
establishing enterprises. Information regarding this was also collected and presented in the
table 5.10.
Table 5.10
Lack of Employment as a Motivating Factor
Not Chi- P
at all Square Value
0 8 11 35 24 78
Micro (0.00) (10.30) (14.10) (44.90) (30.80) (100.00)
0 2 19 39 9 69
Small (0.00) (2.90) (27.50) (56.50) (13.00) (100.00)
0 0 0 1 0 1 13.313@ 0.038
Medium (0.00) (0.00) (0.00) (100.00) (0.00) (0.00)
0 10 30 75 33 148
Total (0.00) (6.80) (20.30) (50.70) (22.30) (100.00)
As the table shows, lack of employment was the motivator behind setting up of an
industrial unit was not to a great extent, as only 22.30 per cent of total entrepreneurs
accepted this; about half of the total sample entrepreneurs (50.70 per cent) replied that it
was a motivator to a considerable extent and for 20.30 per cent of entrepreneurs it was a
motivator to a moderate extent. It was for 6.80 per cent of entrepreneurs, lack of
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employment was a motive to some extent only. In the case of micro enterprises, lack of
employment was a motivator for 44.90 per cent to a great extent for 30.80 per cent for
14.10 per cent to moderate extent and for 10.30 per cent to same extent only. In the case of
small units, lack of employment was motive to a considerable extent for to 56.50 per cent
for 27.50 per cent to a moderate extent and for 13.00 per cent only to a great extent. For
the single entrepreneur in the medium sector, lack of employment was a motivator to a
considerable extent only.
The Chi-square test results show that the size of the unit has a bearing on the
strength of motivator of lack of employment. The chi-square value is significant at 5per
cent level showing that the difference between micro, small and medium enterprises with
regards to the lack of employment as a motivating factor.
Summary of Motivators for the Entrepreneur to a Great Extent
The summary table (Table 5.11) shows the percentage of entrepreneurs for whom
each motivator influenced to a great extent.
Table 5.11
Summary Statement Showing Percentage of Entrepreneurs for Whom the Motivator
Influenced To Great Extent.
Category To gain
Making Independent To achieve Desire of Lack of
of social
money living something father/wife employment
enterprises prestige
Micro 61.50 73.10 73.10 80.80 57.70 30.80
Small 65.20 68.10 78.30 69.60 43.50 13.00
Medium 0.00 100.00 100.00 0.00 0.00 0.00
Total 62.80 75.70 75.70 75.70 50.70 22.30

The table clearly shows that all the motivating factors have influenced majority of
the entrepreneurs to a great extent. The exceptions are lack of employment and gaining the
social prestige, with 22.30 per cent and 50.70 per cent only. For the total sample motive of
achieving something and the motive to satisfy father’s/wife’s desire were strongest with
75.70 per cent followed by independent living (70.90 per cent) and making money (62.80
per cent). In the case of micro enterprises, motive to satisfy father’s/wife’s desire was
strongest with 80.80 per cent of entrepreneurs, followed by achieving something and
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independent living with 73.10 per cent each and making money with 61.50 per cent
gaining social prestige was a motivator for 57.70 per cent and lack of employment only to
30.80 per cent of entrepreneurs. In the case of small enterprises, achieving something was
the strongest with 78.30 per cent followed by the motive to fulfil father’s/wife’s desire
(69.60 per cent), independent living (68.10 per cent) and making money (65.20 per cent)
lack of employment was the weakest motivator with 13.00 per cent and the gaining social
prestige with 43.50 per cent. For the single entrepreneur in medium sector, independent
living, achieving something and the motive to fulfill the desire of father/wife were the
strongest motivators to establish industrial unit.
5.2 FACILITATING FACTORS
Among the factors influencing the entrepreneurs of MSMEs, the facilitating factors
are as important as motivating factors. While the motivating factors instill an idea to start
industrial enterprises, the facilitating factors enable and help the entrepreneurs to make the
idea a reality in establishing and running the enterprises. Secondly, while the motivating
factors have their roots in the family background, economic and social backgrounds, the
facilitating factors emerge from the financial and technical support provided by the
government and non-government agencies. The financial support and the technical support
are the important facilitating factors which influence the entrepreneurs. This section deals
with the strength of facilitating factors for the entrepreneurs of micro, small and medium
enterprises. The strength of these factors is denoted by the percentage of entrepreneurs
who responded as to whether they influenced or not and to what extent. For this purpose,
different sources of financial support/technical support and also the extent of facilitating
are taken into consideration and the data are presented in the table followed by analysis
and interpretation.
5.2.1 Financial Assistance as Facilitating Factor
Financial assistance is the major/main facilitating factor for establishing and
running the industrial enterprises. This financial assistance is provided by family
members, friends, money lenders and other public financial institutions. The strength of
these financial assistance as a facilitating factor depends upon the type of source, and the
categories of units-micro, small and medium enterprises. Table 5.12 shows the financial
assistance by different sources as facilitating factor for the total sample.
The table reveals that for the majority of entrepreneurs the financial assistance by
friends is the facilitating factor to a large extent followed by the assistance by Government
financial institution like State Financial Corporation. Other sources like private
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commercial banks provided financial assistance to a considerable extent, money lenders to
a moderate extent. The financial assistance by friends was facilitating factor to a great
extent for 63.50 per cent of entrepreneurs, that of public financial institution for 58.10 by
per cent of entrepreneurs and that of family members to 48.60 per cent of entrepreneurs of
Table 5.12
Financial Assistance as Facilitating Factor for the Entrepreneurs of Sample MSMEs
To a To a To a
Financial assistance Not at To some
moderate considerable great Total
from all extent
The State Government/ 18 12 8 24 86 148
SFC/others (12.20) (8.10) (5.40) (16.20) (58.10) (100.00)
Public commercial 30 7 24 30 57 148
banks (20.30) (4.70) (16.20) (20.30) (38.500 (100.00)
Private commercial 13 20 41 53 21 148
banks (8.80) (13.50) (27.70) (35.80) (14.20) (100.00)
Money lenders 14 17 30 34 53 148
(9.50) (11.50) (20.30) (23.00) (35.80) (100.00)
Family members/ 14 12 24 26 72 148
relatives (9.50) (8.10) (16.20) (17.60) (48.60) (100.00)
15 11 13 15 94 148
Friends (10.10) (7.40) (8.80) (10.10) (63.50) (100.00)
MSMEs. For 38.50 per cent of entrepreneurs the financial assistance by public
commercial banks served as facilitating factor to a great extent. Next, the financial
assistance by private commercial banks was a facilitating factor to a considerable extent.
For others, financial assistance by different sources was facilitating factor in different
strengths- to some extent and to a moderate extent. For 20.30 per cent of entrepreneurs,
financial assistance by commercial banks was not at all a facilitating factor; in this
category are State financial institutions (12.20 per cent) and friends (10.10 per cent).
Financial Assistance as Facilitating Factor-Micro Enterprises
Table 5.13 shows the responses of entrepreneurs of sample micro enterprises as to
the financial assistance serving as facilitating factor.
As the table shows, the friends, and family members relatives occupy the first and
second places whose financial assistance served as facilitating factor to the entrepreneur of
micro enterprises, their percentage in the total sample being 61.50 per cent each. The State
financial institutions and public commercial banks occupy next two places in providing
financial assistance serving as facilitating factors to the entrepreneurs of sample micro
enterprises their percentages being 53.80 per cent and 48.70 per cent respectively. The
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financial assistance of the private commercial banks served as facilitating factor to a
considerable extent to 32.10 per cent of entrepreneurs of micro enterprises, and private
Table 5.13
Financial Assistance as Facilitating Factor to the Entrepreneurs
of Sample Micro Enterprises
To To a To a To a
Not at
Finance assistance from some moderate considerable great Total
all
The State Government/ 16 7 3 10 42 78
SFC/others (20.50) (9.00) (3.80) (12.80) (53.80) (100.00)
Public Commercial 14 1 13 12 38 78
Banks (17.90) (1.30) (16.70) (15.40) (48.70) (100.00)
Private commercial 11 9 17 25 16 78
Banks (14.10) (11.50) (21.80) (32.10) (20.50) (100.00)
Money Lenders 5 5 19 17 32 78
(6.40) (6.40) (24.40) (21.80) (41.00) (100.00)
Family 4 0 11 15 48 78
Members/Relatives (5.10) (0.00) (14.10) (19.20) (61.50) (100.00)
13 6 3 8 48 78
Friends (16.70) (7.70) (3.80) (10.30) (61.50) (100.00)
commercial banks (32.10 per cent) also are placed in this category. For about one fourth
(24.40 per cent) of the units, money lender’s financial assistance also served as facilitating
factor. Conversely, for about twenty percent (20.50 per cent) of entrepreneurs, state
government financial institutions are not to be reckoned with because their financial
assistance did not serve as facilitating factors.
Financial Assistance as Facilitating Factor-Small Enterprises
The data regarding the financial assistance as facilitating factor for small
enterprises is shown in the table 5.14
For small enterprises also financial assistance by the friends closely followed by
that of government financial institution served as facilitating factors to a great extent to
most of the entrepreneurs of sample small enterprises; their percentage being 65.20 per
cent and 62.30 per cent respectively. For one-third of the enterprises (33.30 per cent) the
financial assistance by the family members/relatives as the facilitating factor to great
extent; the percentages for the financial assistance by the money lenders and public
commercial banks are 29.00 per cent and 27.50 per cent. Next in order, for 39.10 per cent
and about one-fourth (24.60 per cent) each the financial assistance provided by private
commercial banks, commercial banks and money lenders served as facilitating factor to a
139
Table 5.14
Financial Assistance as Facilitating Factor for
Entrepreneurs of Sample Small Enterprises
To a To a To a
Not at To some
Finance assistance from moderate considerable great Total
all extent
The State 2 5 5 14 43 69
Government/SFC/other (2.90) (7.20) (7.20) (20.30) (62.30) (100.00)
Public commercial banks 16 6 11 17 19 69
(23.20) (8.70) (15.90) (24.60) (27.50) (100.00)
Private commercial banks 2 11 24 27 5 69
(2.90) (15.90) (34.80) (39.10) (7.20) (100.00)
Money lenders 9 12 11 17 20 69
(13.00) (17.40) (15.90) (24.60) (29.00) (100.00)
Family members/ 10 12 13 11 23 69
relatives (14.50) (17.40) (18.80) (15.90) (33.30) (100.00)
Friends 2 5 10 7 45 69
(2.90) (7.20) (14.50) (10.10) (65.20) (100.00)
considerable extent. The financial assistance by private commercial banks was facilitating
factor to a moderate extent for 34.80 per cent entrepreneurs of sample units. For 23.20 per
cent sample firms, the financial assistance of public commercial banks was not at all a
facilitating factor followed by that of family members (14.50 per cent) and money lenders
(13.00 per cent).
Financial Assistance as Facilitating Factor-Medium Enterprises
Table 5.15 deals with the responses given by the entrepreneurs regarding the
financial assistance giving as facilitating factor.
Table 5.15
Financial Assistance as Facilitating Factor to the
Entrepreneur of Sample Medium Enterprises
To To a To a To a
Not at
Finance assistance some moderate considerable great Total
all
from extent extent extent extent
The State 0 0 0 0 1 1
government/SFC/other (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
Public commercial banks 0 0 0 1 0 1
(0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
Private commercial Banks 0 0 0 1 0 1
(0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
Money lenders 0 0 0 0 1 1
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
Family members/relatives 0 0 0 0 1 1
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
Friends 0 0 0 0 1 1
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
140
For the lone entrepreneur of sample medium enterprises, the financial assistance of
government financial institution, money lenders, family members/relatives and the friends
was facilitating factor to great extent while the financial assistance of commercial banks,
private commercial banks was a facilitating factor to a considerable extent.
Financial assistance by Government Financial Institutions as Facilitating Factor
Table 5.16 deals with the responses of the entrepreneurs of sample MSMEs at the
disaggregated level of financial assistance by the public financial institution like SFC.
Table 5.16
Financial Assistance by State Financial Institutions
as Facilitating Factor to the Entrepreneurs of MSMEs
Category
To To a To a To a
of Not at Chi- P
enterprises all Square Value
16 7 3 10 42 78
Micro
(20.50) (9.00) (3.80) (12.80) (53.80) (100.00)
2 5 5 14 43 69
Small
(2.90) (7.20) (7.20) (20.30) (62.30) (100.00)
12.696@ 0.126
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
18 12 8 24 86 148
Total
(12.20) (8.10) (5.40) (16.20) (58.10) (100.00)
As the table shows, it is clear that the financial assistance by the stategovernment
institutions like SFC was a facilitating factor to a great extent for the majority of the
entrepreneurs of MSMEs - 58.10 per cent, in the total, 53.80 per cent of micro enterprises,
62.30 per cent of small enterprises and wholly to the lone medium enterprise. For about
one fifths (20.50 per cent) of micro enterprises it is ‘not at all’ a facilitating factor while it
is a facilitating factor to a considerable extent and for 12.80 per cent of micro and 20.30
per cent of small enterprises. In total sample, the financial assistance of government
institutions was a facilitating factor for 16.20 per cent to a considerable extent and for
12.20 per cent of enterprises ‘not at all. That means, all the three categories of enterprises
are in the same standing that the financial assistance by government financial institutions
was a facilitating factor to a considerable extent and to a great extent in an uniform
manner. The chi-square value 12.696 is also not significant showing that as far as the
financial assistance serving as facilitating factor to the entrepreneurs is concerned there is
no significant difference between micro, small and medium enterprises.
141
Financial Assistance of Public Commercial Banks as Facilitating Factor
Table 5.17 shows the strength of financial assistance as facilitating factor to
different categories of units.
Table 5.17
Financial Assistance by Government Public Commercial Bank as
Facilitating Factor to the Entrepreneurs of MSMEs
Not at Chi- P
all Square Value
Micro 14 1 13 12 38 78
(17.90) (1.30) (16.70) (15.40) (48.70) (100.00)
Small 16 6 11 17 19 69
(23.20) (8.70) (15.90) (24.60) (27.50) (100.00)
14.534@ 0.063
Medium 0 0 0 1 0 1
(0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
Total 30 24 24 30 57 148
(20.30) (16.20) (16.20) (20.30) (38.50) (100.00)
As the table shows, the financial assistance by the government financial institution
served as facilitating factor for only 38.50 per cent of total sample, 48.70 per cent of the
micro and 27.50 per cent of the small enterprises. For the lone medium enterprise it was
facilitating factor to a considerable extent. For 20.30 per cent of total entrepreneurs it was
a facilitating factor to a considerable extent, and for the same percentage it was ‘not at all’
a facilitating factor. In the case of micro enterprises, the financial assistance of public
commercial banks was facilitating factor to a great extent for 48.70 per cent followed by
‘to a moderate extent (16.70 per cent) and to a considerable extent (15.40 per cent) while it
is ‘not at all’ a facilitating factor to 17.90 per cent of entrepreneurs. The situation is worse
in small enterprises for whom it was a facilitating factor to a great extent for 27.50 per
cent, to a considerable extent for 24.60 per cent and ‘not at all’ a facilitating factor for only
23.20 per cent entrepreneurs and to a moderate extent for 15.90 per cent of entrepreneur.
For the single entrepreneur in medium sector financial assistance from public commercial
banks was a facilitating factor to a considerable extent. That means, for all the three
categories, the financial assistance by public commercial banks was a facilitating factor to
a moderate, considerable and a great extent almost uniformly. The chi square value of
14.534 is also not significant showing that with regard to financial assistance public
commercial banks serving as facilitating factor for entrepreneur of MSMEs there is no
significant difference between micro, small and medium enterprises.
142
Financial Assistance of Private Commercial Banks as Facilitating Factor
Private Banks also provide financial assistance to MSMEs especially working
capital. The strength of this as facilitating factor is shown on table 5.18
Table 5.18
Financial Assistance of Private Commercial Banks as Facilitating Factor
Not at Chi- P
all Square Value
11 9 17 25 16 78
Micro
(14.10) (11.50) (21.80) (32.10) (20.50) (100.00)
2 11 24 27 5 69
Small
(2.90) (15.90) (34.80) (39.10) (7.20) (100.00)
14.845@ 0.063
0 0 0 1 0 1
Medium
(0.00) (0.00) (0.00) (100.00) (0.00) (100.00)
13 20 41 53 21 148
Total
(8.80) (13.50) (27.70) (35.80) (14.20) (100.00)
For majority of entrepreneurs of sample MSMEs, the financial assistance of private
commercial banks was facilitating factor to a considerable extent (35.80 per cent) followed
by to a moderate extent (27.70 per cent) and to some extent (13.50 per cent) only. It was
‘to a great extent’ for only 14.20 per cent of entrepreneurs of total sample. In the case of
micro enterprises, the financial assistance of the private commercial banks was facilitating
factor for 32.10 per cent, to a moderate extent for 21.80 per cent and to a great extent for
20.50 per cent of entrepreneurs and further ‘not at all’ for 14.10 per cent of entrepreneurs.
In the case of small enterprises this financial assistance was a facilitating factor for 39.10
per cent to a considerable extent, closely followed by to a moderate extent for 34.80 per
cent, and to some extent for 15.90 per cent of entrepreneurs. It was facilitating factor to a
great extent for 7.20 per cent only and not at all to 2.90 per cent. In the case of single
medium enterprise, the financial assistance of private commercial banks was facilitating
factor to a considerable extent. That means, the financial assistance of the private
commercial banks served as facilitating factor to a considerable extent and to a moderate
extent to all the categories of enterprises. The chi-square test value 14.845 is also not
significant inferring that there is no significant difference between micro, small and
medium enterprises as far as financial assistance of private commercial banks as
facilitating facto is concerned.
143
Financial Assistance of Money Lenders as Facilitating Factor
The financial assistance of money lenders also acted as facilitating factor for the
entrepreneurs of MSMEs, but the strength is not high, it ranged mostly between to a
considerable extent and to a moderate extent except in the case of medium enterprises.
This is shown in table 5.19.
Table 5.19
Financial assistance of Moneylenders as Facilitating Factor
Not Chi- P
at all Square Value
5 5 19 17 32 78
Micro
(6.40) (6.40) (24.40) (21.80) (41.00) (100.00)
9 12 11 17 20 69
Small
(13.00) (17.40) (15.90) (24.60) (29.00) (100.00)
10.242@ 0.248
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.0) (100.00)
14 17 30 34 53 148
Total
(9.50) (11.50) (20.30) (23.00) (35.80) (100.00)
The financial assistance of money lenders was a facilitating factor to a great extent
to the single medium enterprises entrepreneurs and also to 35.80 per cent of total sample,
followed by 23.00 per cent and 20.30 per cent entrepreneurs for whom it was a facilitating
factor to a considerable extent and to a moderate extent respectively. For 11.50 per cent
and 9.50 per cent entrepreneurs it was either a facilitating factor to some extent or not at
all. In the case of micro enterprises, this assistance by the money lenders was facilitating
factor to a great extent for 41.00 per cent, to a moderate extent for 24.40 per cent and to a
considerable extent for 21.80 per cent of entrepreneurs. For 6.40 per cent each it is either
not at all facilitating factor or to some extent. In the case of small enterprises, the financial
assistance of money lenders was facilitating factor to a great extent for 29.00 per cent, to a
considerable extent for 24.60 per cent to some extent for 17.40 per cent and to moderate
extent for 15.90 per cent while it is not at all facilitating factor for 13.00 per cent of
entrepreneurs. For the sole medium enterprise it is facilitating factor to a great extent. But,
it is observed that chi-square value 10.242 which is not significant, showing that there is
no significant difference between micro, small and medium enterprises as to the financial
assistance of money lenders acting as facilitating factor to the entrepreneurs of sample
MSMEs in Kadapa district.
144
Financial Assistance of Family Members/Relatives as Facilitating Factor
The financial assistance by the family members and relatives also play an
important role in facilitating the entrepreneurs. The response about this by the
entrepreneurs is shown in table 5.20
Table 5.20
Financial Assistance of Family/Relatives as Facilitating Factor
Not at Chi- P
all Square Value
4 0 11 15 48 78
Micro
(5.10) (0.00) (14.10) (19.20) (61.50) (100.00)
10 12 13 11 23 69
Small
(14.50) (17.40) (18.80) (15.90) (33.30) (100.00) 24.834@ 0.001
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
14 12 26 26 72 148
Total
(19.50) (8.10) (17.60) (17.60) (48.60) (100.00)
The table shows that the financial assistance of the family members and relatives
acted as facilitating factor to a great extent not for many entrepreneurs but to 48.60 per
cent of the total sample, and for the single sample medium enterprise entrepreneurs. Next,
it was facilitating factor to a considerable extent for 17.60 per cent, to a moderate extent
for 16.20 per cent to some extent for 8.10 per cent and not at all to 9.50 per cent of the
entrepreneurs. In micro enterprises the percentage of entrepreneurs for whom this financial
assistance is facilitating factor to considerable extent is larger at 61.50 per cent, followed
by to a considerable extent for 19.20 per cent, to a moderate extent for 14.10 per cent and
not at all for 5.10 per cent. In small enterprise, the same percentage is only 33.30 per cent
and for others the financial assistance was facilitating factor to a moderate extent for
18.80per cent, to some extent for 17.40 per cent, to considerable extent for 15.90 per cent
and not at all facilitating factor for 14.50 per cent and for the single sample entrepreneur in
the medium sector the financial assistance of the family member/relatives was a
facilitating factor to a great extent. That means, the size of the unit matters in so far as the
response to the financial assistance. The chi-square value 24.834 is also significant at 1per
cent level showing that there is significant difference between micro, small and medium
enterprises as to their perception about the financial assistance of family
members/relatives as facilitating factor.
145
Financial Assistance of Friends as Facilitating Factor
The financial assistance of friends plays a significant role in facilitating the
entrepreneurs of industrial units, particularly MSMEs, in setting up and running
enterprises. The details about the perception of entrepreneurs of sample MSMEs in
Kadapa District are shown in table 5.21.
Table 5.21
Financial Assistance of Friends as Facilitating Factor
Not at Chi- P
all Square Value
Micro 13 6 3 8 48 78
(16.70) (7.70) (3.80) (10.30) (61.50) (100.00)
Small 2 5 10 7 45 69
(2.90) (7.20) (14.50) (10.10) (65.20) (100.00)
12.239@ 0.141
Medium 0 0 0 0 1 1
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
Total 15 11 13 15 94 148
(10.10) (7.40) (8.80) (10.10) (63.50) (100.00)
It is very clear from the table that the financial assistance of friends played an
significant role in acting as facilitating factor ‘to a great extent’ for more than sixty percent
of entrepreneurs 63.50 per cent of the total sample, 61.50 per cent of micro, 65.20 per cent
of small enterprises and wholly to the lone entrepreneur of medium enterprise. For about
ten percent (10.10 per cent) each, it was a facilitating factor to a considerable extent and
not at all. For 7.40 per cent of sample entrepreneurs this financial institution was
facilitating factor to some extent only. In micro enterprises, the financial assistance of
friends was a facilitating factor to a great extent for 61.50 per cent, to a considerable
extent for 10.30 per cent and to about ten percent to a moderate and to some extent only.
For 16.70 per cent entrepreneurs it was not at all a facilitating factor. In small enterprises,
for 65.20 per cent entrepreneurs this financial assistance was a facilitator to a great extent,
for 14.50 per cent to a moderate extent and for 10.10 per cent to a considerable extent. For
a medium enterprise owner, it was facilitator to a great extent. That means, the financial
assistance of friends was a facilitating factor to a great extent to all the categories-micro,
small and medium enterprises. That is why the chi-square value 12.239 is also not
significant showing that as far as the financial assistance of friends acting as facilitator
there is no significant difference between micro, small and medium enterprises.
146
Summary of Facilitating Factors for the Entrepreneurs to Great Extent
The table 5.22 provides a summary of different sources of financial assistance
acting as facilitating factor for the entrepreneurs of the sample MSMEs in Kadapa district.
The table shows the highest percentage of entrepreneurs for whom different sources of
financial assistance were facilitating factors to a great extent.
Table 5.22
Summary Statement Showing Percentage of Entrepreneurs for Whom Financial
Assistance from Difference Sources Was Facilitating Factor ‘To A Great Extent’
State
Category Private Family
government Commercial Money
of commercial members/ Friends
financial banks lenders
enterprises banks Relatives
institution
42 38 16 32 48 48
Micro
(53.80) (48.70) (20.50) (41.00) (61.50) (61.50)
43 19 5 20 23 45
Small
(62.30) (27.50) (7.20) (29.00) (33.30) (65.20)
1 0 0 1 1 1
Medium
(100.00) (0.00) (0.00) (100.00) (100.00) (100.00)
86 57 21 53 72 94
Total
(58.10) (38.50) (14.20) (35.80) (48.60) (63.50)
It is clear from the table that as far as the percentage of entrepreneurs for whom
different sources were facilitating factor ‘to a great extent’, the friends occupy the first
place (63.50 per cent) followed by State Government financial institution (58.10 per cent),
family members/relatives (48.60 per cent) commercial banks (38.50 per cent) and money
lenders (35.80 per cent). The financial assistance by the private commercial banks has the
least place (14.20 per cent). In the case of micro enterprises, the financial assistance of
friends and family members/relatives occupy the first place with 61.50 per cent each
followed by State Government financial institution (53.80 per cent) and commercial banks
(48.70 per cent). The money lenders with a percentage of 41.00 per cent also play
important role. In the case of small enterprises also, friends and State Government
financial institutions play important role with 65.20 per cent and 62.30 per cent
respectively, indicating that the financial assistance from these sources acted as facilitating
factor ‘to a great extent’ distantly followed by family members/relatives, money lenders
and commercial banks with 7.20 per cent of entrepreneurs 33.30 per cent, 29.00 per cent
and 27.50 per cent respectively. Again, private commercial banks have the least role with
only 7.20 per cent recognizing the importance of their financial assistance as facilitating
147
factor. In the case of medium enterprises, State Government financial institution, financial
assistance of friends, family members, relatives and money lenders is important because it
acted as facilitating factor for the entrepreneurs. Thus, it can be concluded that the
financial assistance provided by different sources acted as facilitating factor to a great
extent and in this regard State Government financial institutions, friends, family
members/relatives, played important role in order, and that private commercial banks did
not play enough in financial assistance acting as facilitating factor.
5.2.2 Technical Assistance as Facilitating Factor for the Entrepreneurs of MSMEs
The industrial units need technical assistance, and this is provided by the
government agencies and also non-government agencies. The technical assistance is in the
form of supply of machinery and raw material, providing ancillary relationship and
helping in the sale of finished goods. Certainly, the technical assistance acts as facilitating
factor for the entrepreneurs in establishing and running micro, small and medium
enterprises. That is why, the entrepreneurs were asked to what extent the technical
assistance served as facilitating factor. The responses are presented in the table followed
by analysis and interpretation. The table presents the strength of facilitating factor as
measured by the percentage of entrepreneurs of sample MSMEs responding to the options
given in the questionnaire.
Technical Assistance from Government and Non-Government Agencies
The responses of entrepreneurs to the technical assistance provided by the
government agencies and non- government agencies are presented in table 5.23.
As it is clear from the table, the entrepreneurs are positive to the technical
assistance, and more positive to that provided by government agencies. In the total sample,
for 85.80 per cent the technical assistance of government agencies acted as facilitating
factor to a great extent and the percentage for the technical assistance of non- government
agencies 61.50 per cent. The technical assistance of non-government agencies acted as
facilitating factor to a considerable extent for 12.80 per cent and not at all a facilitating
factor for 10.10 per cent of entrepreneurs. The micro enterprises are more positive, and
still more to the government agencies. For more than ninety percent (91.00 per cent) and
seventy percent (71.80 per cent) of entrepreneurs the technical assistance of government
agencies and non-government agencies was facilitating factor respectively. The non-
government agencies were facilitators through technical assistance to a considerable extent
148
Table 5.23
Technical Assistance as Facilitating Factor for the Entrepreneurs of Sample MSMEs
To a To a To a
Technical assistance Not at To some
moderate considerable great Total
from all extent
Micro
1 1 2 3 71 78
Government agencies
(1.30) (1.30) (2.60) (3.80) (91.00) (100.00)
Non-government 10 3 3 6 56 78
agencies (12.80) (3.80) (3.80) (7.70) (71.80) (100.00)
Small
5 4 2 3 55 69
Government agencies (7.20) (5.80) (2.90) (4.30) (79.70) (100.00)
agencies (7.20) (10.10) (14.50) (18.80) (49.30) (100.00)
Medium
Government agencies 0 0 0 0 1 1
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
agencies (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
Total
Government agencies 6 5 4 6 127 148
(4.10) (3.40) (2.70) (4.10) (85.80) (100.00)
Non-government 15 10 13 19 91 148
agencies (10.10) (6.80) (8.80) (12.80) (61.50) (100.00)
for 7.70 per cent of entrepreneurs, it was not at all facilitating factor for 12.80 per cent of
enterprises. The small enterprises are less satisfactory; the technical assistance of
government agencies was facilitating factor to a great extent for 79.70 per cent, and the
percentage for non-government agencies is only 49.30 per cent. For others, it was
facilitating factor to considerable extent (18.80 per cent) and to a moderate extent (14.50
per cent). For the single sample entrepreneur in the medium sector, technical assistance of
both government agencies and non-government agencies was facilitating factor to a great
extent. Thus, it can be concluded that the technical assistance of government agencies and
non-government agencies was a facilitating factor to a great extent more for the micro
enterprises and medium enterprise and to a great extent and to considerable extent to small
enterprises.
5.3.2 Technical Assistance from Government Agencies as Facilitating Factor
The technical assistance provided by the government agencies acted as facilitating
factor to the entrepreneurs. But its strength differs for different size enterprises. Table 5.24
shows how it served for micro, small and medium enterprises.
149
Table 5.24
Technical Assistance as Facilitating Factor for
the Entrepreneurs of Sample MSMEs
Not Chi- P
at all Square Value
1 1 2 3 71 78
Micro
(1.30) (1.30) (2.60) (3.80) (91.00) (100.00)
5 4 2 3 55 69
Small
(7.20) (5.80) (2.90) (4.30) (79.70) (100.00)
6.173@ 0.628
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
6 5 6 6 127 148
Total
(4.10) (3.40) (4.10) (4.10) (85.80) (100.00)
The table shows that, for about 85 per cent (85.805) of the entrepreneurs of the
total sample, the technical assistance of government agencies acted as facilitating factor to
a great extent and for others to a considerable extent (4.10 per cent) to some extent (3.40
per cent) and to a moderate extent (2.70 per cent) while it is not at all a facilitating factor
to 4.10 per cent of entrepreneurs. In the case of micro enterprises the technical assistance
of government agencies was facilitating factor for 91.00 per cent of entrepreneurs, to
a great extent, for 3.80 per cent to a considerable extent for 2.60 per cent to a moderate
extent and for 1.30 per cent to some extent, and for the same small percentage it was not
at all’ a facilitating factor. In the case of small units, the percentage of entrepreneurs for
whom the technical assistance was facilitating factor was 79.70 per cent and the same for
others was 4.30 per cent to a considerable extent, 2.90 per cent to a moderate extent and
5.80 per cent to some extent; and for 7.20 per cent not at all facilitating factor. For the
single entrepreneur in the medium sector this technical assistance was facilitating factor to
a great extent. Thus, the technical assistance of the government agencies was a facilitating
factor for all the three categories of enterprises. The chi-square value of 6.173 is also not
significant showing that there is no significant difference between micro, small and
medium enterprises as far as the technical assistance acting as facilitating factor the
entrepreneurs of sample MSMEs is concerned.
Technical Assistance of Non- Government Agencies as Facilitating Factor
The table 5.25 shows how the technical assistance of the non-government agencies
served as facilitating factor for the entrepreneurs of sample MSMEs.
150
Table 5.25
Technical Assistance of Non-Governmental Agencies as Facilitating
Factor for the Entrepreneurs of Sample MSMEs
Chi- P
of Not at some moderate considerable great Total
Square Value
enterprises all extent extent extent extent
10 3 3 6 56 78
Micro
(12.80) (3.80) (3.80) (7.70) (71.80) (100.00)
5 7 10 13 34 69
Small
(7.20) (10.10) (14.50) (18.80) (49.30) (100.00) 15.192@ 0.056
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
15 10 13 19 91 148
Total
(10.10) (6.80) (8.80) (12.80) (61.50) (100.00)
The table shows that the status of non-government agencies technical assistance
acting as a facilitating factor is less satisfactory than that of government agencies, as only
61.50 per cent (as compared to 85.00 per cent) of total sample replied in positive manner.
In the case of micro enterprises for more than seventy percent (71.80 per cent) the
assistance was facilitating factor ‘to a great extent’ while for 12.80 per cent it was ‘not at
all’ facilitating factor. In the case of small enterprises, through negative response (not at
all) is only from 7.20 per cent the positive response is distributed; for 49.30 per cent the
assistance as facilitating for factor ‘to a great extent ‘18.80 per cent. It was facilitating
factor ‘to a great considerable extent, for 14.50 per cent to a moderate extent and for 10.10
per cent to some extent. For the single entrepreneur in medium enterprise, the technical
assistance of the non-government agencies was facilitating factor ‘to a great extent’.
However, the chi-square test value 15.192 per cent is not significant, showing that the
difference between micro, small and medium enterprise entrepreneurs is not significant as
to the technical assistance acting as facilitating factor.
Types of Technical Assistance for Government Agencies Facilitating Factor- Total Sample
The Table 5.26 presents how different types of technical assistance were
facilitating factors to the entrepreneurs of total sample MSMEs.
From the table it is clear that among the types of technical assistance that were
facilitating factors to a great extent, the supply of imported machinery stands first with
83.10 per cent of entrepreneurs acknowledging this, followed by sale of finished goods
outside the country (65.50 per cent), securing ancillary relation with a large firm (54.10
per cent) supply of imported machinery (48.00 per cent) and giving the support of
dependable partner (46.60 per cent). Among those which were facilitating factor ‘to a
151
considerable extent’, making available of skilled workers, supply of imported machinery,
giving the support of a dependable partner and supply of indigenous and imported raw
materials are important types of technical assistance with respective percentage of 40.50
per cent, 37.80 per cent, 28.80 per cent and 24.30 per cent each. Among those which were
important to a moderate extent, supply of raw materials (indigenous and imported) occupy
the first place (27.70 per cent) each) followed by the sale of finished goods with in the
country (20.90 per cent) and securing ancillary relation with large firm (19.60 per cent).
Among those which were not at all facilitating factor or to some extent the supply of
indigenous raw materials figures with high percentage of around ten percent. Sale of
finished goods too figures in this category. Thus, it can be concluded that many types of
technical assistance were facilitating factors to a great extent or to a considerable extent.
Table 5.26
Types of Technical Assistance from Government Agencies as Facilitating
Factor to the Entrepreneurs of Total Sample of MSMEs
Total
Assistance from the To To a To a To a
Not at Total
government agencies some moderate considerable great
all
Supply of machinery 7 2 11 5 123 148
(Indigenous) (4.70) (1.40) (7.40) (3.40) (83.10) (100.00)
(Imported) (1.40) (3.40) (9.50) (37.80) (48.00) (100.00)
Supply of raw materials 16 15 41 36 40 148
(Indigenous) (10.80) (10.10) (27.70) (24.30) (27.00) (100.00)
Supply of Raw 2 11 41 36 58 148
Materials (Imported) (1.40) (7.40) (27.70) (24.30) (39.20) (100.00)
Sale of finishing goods 14 16 31 34 53 148
within the country (9.50) (10.80) (20.90) (23.00) (35.80) (100.00)
outside country (5.40) (8.10) (8.80) (12.20) (65.50) (100.00)
Securing ancillary 14 l 8 29 17 80 148
relation with a large firm (9.50) (5.40) (19.60) (11.50) (54.10) (100.00)
Availability of skilled 6 11 28 60 43 148
workers (4.10) (7.40) (18.90) (40.50) (29.10) (100.00)
Getting the support of 13 13 11 42 69 148
dependable partner (8.80) (8.80) (7.40) (28.40) (46.60) (100.00)
10 10 8 19 108 148
Others
(6.80) (6.80) (5.40) (12.80) (73.00) (100.00)
152
Types of Technical Assistance from Government Agencies as Facilitating Factor-
Micro Enterprises
Table 5.27 shows different types of technical assistance acted as facilitating factors
to the entrepreneurs of sample micro enterprises.
Table 5.27
Types of Technical Assistance of Government Agencies as
Facilitating Factor to the Sample Micro Enterprises
To To a To a To a
Assistance from the Not at
government agencies all
(Indigenous) (1.30) (1.30) (3.80) (3.80) (89.70) (100.00)
(Imported) (0.00) (2.60) (9.00) (30.80) (57.70) (100.00)
(Indigenous) (16.70) (2.60) (23.10) (23.10) (34.60) (100.00)
(Imported) (1.30) (5.10) (24.40) (21.80) (47.40) (100.00)
outside country (9.00) (5.10) (6.40) (11.50) (67.90) (100.00)
Securing ancillary 8 3 16 3 48 78
relation with a large firm (10.30) (3.80) (20.50) (3.80) (61.50) (100.00)
workers (7.70) (6.40) (9.00) (39.70) (37.20) (100.00)
10 2 5 10 51 78
Others
(12.80) (2.60) (6.40) (12.80) (65.40) (100.00)
In the case of micro enterprise, the supply of indigenous machinery, followed by
sale of finished goods outside the country and securing ancillary relation with a large firm
are the types of technical assistance which were facilitating factor ‘to great extent’ and the
respective percentage of entrepreneurs are 89.70 per cent, 67.90 per cent and 61.50 per
cent. The percentage of the facilitating factors like supply of imported machinery, getting
the support of a dependable partner and supply of imported raw materials are moderately
high at 57.70 per cent, 50.00 per cent and 47.40 per cent respectively. Other types of
technical assistance were weak on acting as facilitating factor-supply of skilled workers
(37.20 per cent), supply of indigenous raw materials (34.60 per cent) and sale of finished
goods with in the country (30.80 per cent).
153
Types of Technical Assistance of Government Agencies as Facilitating Factor-Small
Enterprises
Table 5.28 shows how different types of technical assistance which acted as
facilitating factor to the entrepreneurs of sample enterprises.
Table 5.28
Types of Technical assistance of Government Agencies as Facilitating
Factor to the Entrepreneurs of Sample Small Enterprise
Assistance from To To a To a To a
Not at
the government a some moderate considerable great Total
all
agencies extent extent extent extent
(Indigenous) (8.70) (1.40) (11.40) (2.90) (75.40) (100.00)
(Imported) (2.90) (4.30) (10.10) (46.40) (36.20) (100.00)
(Indigenous) (4.30) (18.80) (33.30) (26.10) (17.40) (100.00)
(Imported) (1.40) (10.10) (31.90) (27.50) (29.00) (100.00)
within the country (2.90) (11.60) (17.40) (27.50) 940.60) (100.00)
outside country (1.40) 11..60) (11.60) (13.00) (62.30) (100.00)
Securing ancillary
6 5 13 14 31 69
relation with a large
(8.70) (7.20) (18.80) (20.30) (44.90) (100.00)
firm
workers (0.00) (7.20) (30.40) (42.00) (20.30) (100.00)
0 1 3 9 56 69
Others
(0.00) (1.40) (4.30) (13.00) (81.20) (100.00)
In the case of small enterprises , the supply of indigenous machinery, and sale of
finished goods are the only two types of technical assistance which acted as facilitating
factor ‘to a great extent’ with percentage of 75.40 per cent and 62.30 per cent. Other types
which fared moderately are supply of imported machinery (36.20 per cent) (for 46.40 per
cent to a considerable extent) sale of finished goods within the country (40.60 per cent)
securing ancillary relation with a large firm (44.90 per cent) and getting the support of a
dependable partner (42.00 per cent). Supply of imported raw materials (both indigenous
and imported) fared badly with 17.40 per cent and 29.00 per cent respectively. The types
of technical assistance acting as facilitating factor to a considerable extent were supply of
imported machinery (46.40 per cent), making available of skilled workers (42.00 per cent)
154
and getting the support of a dependable partner (37.70 per cent). The supply of indigenous
raw materials was a facilitating factor to some extent for 18.80 per cent of entrepreneurs.
Other types were more than ten percent acknowledged as facilitating factor are getting a
dependable partner(11.60 per cent) sale of finished goods (11.60 per cent) and supply
imported raw materials (10.10 per cent)
Types of Technical Assistance of Government Agencies as Facilitating Factors –
Medium Enterprises
Table 5.29 presents how different types of technical assistance acted as facilitating
factor to the entrepreneurs of sample small enterprise in Kadapa district.
Table 5.29
Types of Technical Assistance from Government Agencies as
Facilitating Factor to the Entrepreneurs of Sample Medium Enterprises
To To a To a To a
Assistance from the Not at conside
government agencies all some moderate rable great Total
extent
(Indigenous) (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
(Imported) (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
(Indigenous) (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
(Imported) (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
outside country (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
Securing ancillary relation 0 0 0 0 1 1
with a large firm (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
workers (100.00) (100.00) (0.00) (0.00) (100.00) (100.00)
0 0 0 0 1 1
Others
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
For the single entrepreneur of medium enterprise, as the table shows, all the types
of technical assistance from government agencies except the supply of skilled workers
have been the facilitating factors ‘to a great extent; the supply of skilled workers was the
facilitating factor ‘to some extent’ only.
155
Supply of Machinery (Indigenous) as Facilitating Factor to the Entrepreneurs of
MSMEs
The supply of machinery is one of the important types of technical assistance
provided by the government agencies. Certainly, it acted as a facilitating factor to the
entrepreneurs particularly MSMEs. The responses of the entrepreneurs of sample MSMEs,
are given in table 5.30 and 5.31.Table 5.30 presents the information about the supply of
indigenous machinery.
Table 5.30
Supply of Machinery (Imported) as a Facilitating Factor to the Entrepreneurs
To To a To a To a
Category Not Chi- P
of at all Square Value
enterprises
1 1 3 3 70 78
Micro
(1.30) (1.30) (3.80) (3.80) (89.70) (100.00)
6 1 8 2 52 69
Small
(8.70) (1.40) (11.60) (2.90) (75.40) (100.00) 8.432@ 0.392
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
7 2 11 5 123 148
Total
(4.70) (1.40) (7.40) (3.40) (83.10) (100.00)
The table shows that for most of the entrepreneurs the supply of machinery
(indigenous) was a facilitating factor ‘to a great extent’. With regard to total sample, it is
facilitating factor to a great extent for 83.10 per cent total sample entrepreneurs and ‘to a
moderate extent for 7.40 per cent to a considerable extent for 3.40 per cent and not at to
4.70 per cent of the entrepreneurs. In the case of micro enterprises for about ninety per
cent (89.70 per cent) of enterprises the supply of machinery is a facilitating factor’ to a
great extent’, for 3.80 per cent each ‘to a considerable extent’ and ‘to a moderate extent’.
It was ‘not at all’ facilitating factor to only 1.30 per cent of entrepreneurs. This assistance
is facilitating factor to a great extent for about three fourths (75.40 per cent) of small scale
entrepreneurs and to a moderate extent for 11.60 per cent and not at all to 8.70 per cent of
entrepreneurs. That means, the supply of machinery was a facilitating factor to all the
entrepreneurs including the sole entrepreneur of the medium enterprise. There is no
difference between micro, small and medium enterprises. The chi square value of 8.432 is
not significant showing that there is no significant difference between micro, small and
medium enterprises as far as the technical assistance of supplying machinery (indigenous)
acting as a facilitating factor to the entrepreneurs is concerned.
156
The supply of imported machinery is still more important technical assistance. The
view of the entrepreneurs about this is presented in table 5.31.
Table 5.31
Supply of Machinery (Imported) as a Facilitating Factor
for the Entrepreneurs of Sample MSMEs
Not at Chi-
of some moderate considerable great Total P
all Square
enterprises extent extent extent extent Value
0 2 7 24 45 78
Micro
(0.00) (2.60) (9.00) (30.80) (57.70) (100.00)
2 3 7 32 25 69
Small
(2.90) (4.30) (10.10) (46.40) (36.20) (100.00)
9.638@ 0.003
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
2 5 14 56 71 148
Total
(1.40) (3.40) (9.50) (37.80) (27.00) (100.00)
The table shows that the supply of machinery (imported) was facilitating factor not
only to a great extent’ but ‘to a considerable extent’ also because it was the former for
48.00 per cent and latter for 37.80 per cent of total sample entrepreneurs. It was
facilitating factor to a moderate extent for 9.50 per cent of entrepreneurs of the total
sample. However, the assistance facilitating factor to a great extent for the single
entrepreneur of medium enterprise. In the case of micro enterprises, the supply of
machinery (imported) was a facilitating factor to a great extent for 57.70 per cent, to a
considerable extent for 30.80 per cent to a moderate extent for 9.00 per cent to some
extent for 2.60 per cent and ‘not at all’ to none. In the case of small enterprises, it was
facilitating factor more to a considerable extent for 46.40 per cent to a great extent for
36.20 per cent, to a moderate extent for 10.10 per cent; it was facilitator to some extent for
4.30 per cent and ‘not at all for 2.90 per cent of entrepreneurs. That means, the supply of
machinery (imported) was a facilitating factor either to a great extent ‘or to a considerable
extent’ for most of the entrepreneurs irrespective of category of units. The chi square value
of 9.638 is also not significant showing that there is no difference between micro, small
and medium enterprises with regards to their response as to the supply of machinery
(imported) acting as facilitating factor for the entrepreneurs.
157
Supply of Raw Materials (Indigenous) as Facilitating Factor to the Entrepreneurs
Next to supply of machinery the supply of raw materials is an important technical
assistance. The tables 5.32 and 5.33 show how far it has been facilitating factor to the
entrepreneurs of MSMEs. The Table 5.32 shows the responses of entrepreneurs with
regard to supply of raw materials (indigenous)
Table 5.32
Supply of Raw Materials (Indigenous) as Facilitating
Factor to the Entrepreneurs of MSMEs
Not Chi- P
at all Square Value
13 2 18 18 27 78
Micro
(16.70) (2.60) (23.10) (23.10) (34.60) (100.00)
3 13 23 18 12 69
Small
(4.30) (18.80) (33.30) (26.10) (17.40) (100.00)
0 0 0 0 1 1 22.973** 0.003
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
16 41 41 36 47 148
Total
(10.80) (27.70) (27.70) (24.30) (27.00) (100.00)
The table shows that the supply of raw materials was a facilitating factor to the
entrepreneurs in different strength. In the case of total sample, it was a facilitating factor to
a moderate extent for 27.70 per cent and ‘to a great extent for 27.00 per cent to a
considerable extent for 24.30 per cent; it was facilitating factor ‘to some extent’ for 10.10
per cent and not all for 10.80 per cent. In the case of micro units supply of raw materials
(indigenous) was a facilitating factor to a great extent for 34.60 per cent, to a considerable
extent and to a moderate extent for 23.10 per cent each and ‘not at all’ for 16.70 per cent
of entrepreneurs. In the case of small enterprises, it was facilitating factor more to a
moderate extent (33.30 per cent) and ‘to a considerable extent (26.10 per cent) and for less
‘to a great extent (17.40 per cent) and to some extent (18.80 per cent). However, the sole
entrepreneur in medium sector said that it was a facilitating factor to a great extent. That
means, the entrepreneurs of different categories of units gave different responses. The chi-
square value is also significant at 1per cent level showing that there is significant
difference between micro, small and medium units with regard to the supply of raw
materials (indigenous) acting as facilitating factor to the entrepreneurs of MSMEs.
158
Supply of Raw Materials (Imported) as Facilitating Factor for the Entrepreneurs of
MSMEs
The table 5.33 presents the response of the entrepreneurs of sample MSMEs with
regard to the supply of raw materials (imported) as facilitating factor.
Table 5.33
Supply of Raw Materials (Imported) as Facilitating
Not Chi-
of some moderate considerable great Total P Value
at all Square
1 4 19 17 37 78
Micro
(1.30) (5.10) (24.40) (21.80) (47.40) (100.00)
1 7 22 19 20 69
Small
(1.40) (10.10) (31.90) (27.50) (29.00) (100.00)
7.234@ 0.003
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
2 11 41 36 58 148
Total
(1.40) (7.40) (27.70) (24.30) (39.20) (100.00)
The table shows that the response of the entrepreneurs of MSMEs is distributed
between to a moderate extent, to a considerable extent and to a great extent because the
percentage of entrepreneurs of total sample who gave the above of responses are 27.70 per
cent, 24.30 per cent and 39.20 per cent. In the case of micro enterprises, the assistance was
a facilitating factor to a great extent for 47.40 per cent, to a moderate extent for 24.40 per
cent and to a considerable extent for 21.80 per cent of entrepreneurs. In the case of small
enterprises the assistance was a facilitator more to a moderate extent (31.90 per cent)
followed by to a great extent (20.00 per cent) and to a considerable extent (27.50 per cent).
For the single entrepreneur in the medium sector, the assistance was facilitating factor to a
great extent. As the response of majority of the entrepreneurs of both micro, small
entrepreneurs is same, the chi-square value of 7.234 is not significant showing that there is
no significant difference between micro, small and medium enterprises as far as the supply
of raw materials (imported) acting as facilitating factor for the entrepreneurs of MSMEs in
Kadapa district is concerned.
Sale of Finished Goods (Within the Country) as Facilitating Factor
Sale of the finished goods is as important as other technical assistance because it is
the quantum of and timely sales that give a boost the production and other activities.
159
Table 5.34 and the table 5.35 present the responses of entrepreneurs to the strength of this
assistance acting as facilitating factor to the entrepreneurs.
Table 5.34 presents the information with regards to sale of finished goods within
the country.
Table 5.34
Sale of Finished Goods (Within the Country) as Facilitating Factor
Not Chi- P
at all Square Value
12 8 19 15 24 78
Micro
(15.40) (10.30) (24.40) (19.20) (30.80) (100.00)
2 8 12 19 28 69
Small
(2.90) (11.60) (17.40) (27.50) (40.60) (100.00)
10.831@ 0.211
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
14 16 31 34 53 148
Total
(19.50) (10.80) (20.90) (23.00) (35.80) (100.00)
It is clear from the table that the assistance of sale of finished goods within the
country was a facilitating factor ‘to a great extent’ only to 35.80 per cent only, followed
‘to a considerable extent (23.00 per cent) and to a moderate extent (20.90 per cent). It was
‘not at all’ a facilitating factor for 9.50 per cent and ‘to some extent’ to 10.80 per cent of
entrepreneurs of total sample of MSMEs. In micro units, the assistance was a facilitating
factor ‘to a great extent’ for 30.80 per cent to moderate extent for 24.40 per cent and ‘to a
considerable extent for 19.20 per cent; it was not at all facilitating factor for 15.0 per cent
and to some extent for 10.30 per cent of entrepreneurs. In the case of small enterprises the
assistance was a facilitating factor for 40.60 per cent, to a great extent, for 27.50 per cent
to a considerable extent for 17.40 per cent to a moderate extent for 11.60 per cent to some
extent and for only 2.90 per cent ‘not at all’ a facilitating factor. For the single
entrepreneur in medium sector the assistance was facilitating factor ‘to a great extent’.
However, the chi-square test value is not significant showing that regarding the assistance
of sale of finished goods acting as facilitating factor to the entrepreneurs, there is no
significant difference between micro, small and medium enterprises.
Sale of Finished Goods (Outside the Country) as Facilitating Factor to the
Entrepreneurs of MSMEs
Table 5.35 presented that the response of entrepreneurs as to how the sale of
finished goods (outside the country) acted as facilitating factor.
160
Table 5.35
Sale of Finished Goods (Outside the Country) as Facilitating
Factor to the Entrepreneurs of Sample MSMEs
Not Chi- P
at all Square Value
7 4 5 9 53 78
Micro
(9.00) (5.10) (6.40) (11.50) (67.90) (100.00)
1 8 8 9 43 69
Small
(1.40) (11.60) (11.60) (13.00) (62.30) (100.00)
7.618@ 0.472
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
8 12 13 18 97 148
Total
(5.40) (8.10) (8.80) (12.20) (65.50) (100.00)
The table clearly shows that the assistance in sale of finished goods (outside the
country) was facilitating factor to majority of entrepreneurs in all the categories of units.
The assistance was facilitating factor ‘to a great extent’ to majority of entrepreneurs 65.50
per cent in the total sample, 67.90 per cent in micro enterprises, 62.30 per cent in small
enterprises and 100.00 per cent in medium enterprises. This is followed by the assistance
as facilitating factor ‘to a considerable extent’ for 12.20 per cent in the total sample,
11.0per cent in micro enterprises, 13.00per cent in small enterprises. The assistance was a
facilitating factor to some extent and to a moderate extent for 11.60 per cent each in small
enterprises and ‘not at all’ for 9.00 per cent in small enterprises. The chi-square value of
7.618 is not significant showing that there is no difference between micro, small and
medium enterprises as to the fact that the technical assistance of sale of finished goods
(outside the country) acted as a facilitating factor the entrepreneurs of sample MSMEs.
Securing Ancillary Relation with a Large Firm as a Facilitating Factor
The micro, small and medium enterprises can perform better with ancillary relation
with a large firm. Providing this ancillary relation is a technical assistance of some
significance and can definitely be a facilitating factor to the entrepreneurs. Table 5.36
presents the response of the entrepreneurs of sample MSMEs in this regard.
161
Table 5.36
Securing Ancillary Relation with a Large Firm as a Facilitating
Not Chi- P
at all Square Value
8 3 16 3 48 78
Micro (10.30) (3.80) (20.50) (3.80) (61.50) (100.00)
6 5 13 14 31 69
Small (8.70) (7.20) (18.80) (20.30) (44.90) (100.00)
12.273@ 0.139
0 0 0 0 1 1
Medium (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
14 8 17 17 80 148
Total (9.50) (5.40) (11.50) (11.50) (51.10) (100.00)
The table shows that the assistance in the form of securing ancillary status with a
large firm acted as a facilitating factor ‘to a great extent’ to 54.10 per cent of the total
sample entrepreneurs, 61.50 per cent sample micro units, 44.90 per cent small enterprises
and 100.00 per cent of the medium enterprises. Next follows the assistance as facilitating
factor ‘to a moderate extent’ in total sample (19.60 per cent) in micro units (20.50 per
cent) and ‘to a considerable extent’. In small enterprises (20.30 per cent) assistance is
facilitating factor to a moderate extent for 18.80 per cent of small units, ‘to a considerable
extent for 11.50 per cent of total sample, and ‘not at all’ for 10.30 per cent of micro
enterprises. Securing ancillary relation with a large firm was a facilitating factor with
different strengths for all the categories of units. However chi-square test value is not
significant showing that there is no difference between micro, small and medium
enterprises as to the above assistance acting as a facilitating factor to the entrepreneurs of
sample MSMEs.
Making Available Skilled Workers as a Facilitating Factor to the Entrepreneurs
The government agencies sometimes provide technical assistance in the form of
supplying the necessary skilled workers. This also acts as facilitating factor to the
entrepreneurs of MSMEs. Table 5.37 presents information about this.
As the table shows, the technical assistance in the form of providing necessary
skilled workers was a facilitating factor more to a moderate extent and considerable extent
to the small and micro enterprises and to some extent only to the medium enterprises. In
the total sample, this assistance was a facilitating factor to a considerable extent for
40.50 per cent of entrepreneurs followed by to a great extent for 29.10 per cent and to a
162
Table 5.37
Making Available Skilled Workers as Facilitating
Not Total Chi- P
of some moderate considerable great
at all Square Value
6 5 7 31 29 78
Micro
(7.70) (6.40) (9.00) (39.70) (37.20) (100.00)
0 5 21 29 14 69
Small
(0.00) (7.20) (30.40) (42.00) (20.30) (100.00)
30.472* 0.000
0 1 0 0 0 1
Medium
(0.00) (100.00) (0.00) (0.00) (0.00) (100.00)
6 11 28 60 43 148
Total
(4.10) (7.40) (18.90) (40.50) (29.10) (100.00)
moderate extent for 1.90 per cent entrepreneurs. The same order can be found for the
micro enterprises also; percentages are 39.70 per cent, 37.20 per cent and 9.00 per cent
respectively. In the small sector, this technical assistance was a facilitating factor more to
a considerable extent (42.00 per cent) followed by to a moderate extent (30.40 per
cent)and to a great extent (20.30 per cent), for the single entrepreneur in the medium
sector providing skilled workers is a facilitating factor to some extent only. That means,
the technical assistance in the form of providing skilled workers was a facilitating factor
differently for different categories of enterprises. The chi-square test value is also
significant at 1per cent level showing that there is difference between micro, small and
medium enterprises with regard to the technical assistance of providing skilled workers
acting as facilitating factor for the entrepreneurs.
Support of a Dependable Partner as a Facilitating Factor to the Entrepreneurs
The support of a dependable partner/shareholder also acts as a facilitating factor to
the entrepreneurs of MSMEs. Table 5.38 presents the responses of entrepreneurs in this
regard.
It is clear from the table that, the technical assistance of getting the support of a
dependable person was a facilitating factor to half of the entrepreneurs except in the
medium sector. In the total sample, the assistance was facilitating factor to a great extent
for 46.60 per cent and to a considerable extent for 28.40 per cent of entrepreneurs of
sample MSMEs. It is not at all facilitating factor to 8.80 per cent as it is to some extent to
the same percentage in the micro enterprises, the percentages are 50.00 per cent 20.50 per
cent and 15.40 per cent. In the small enterprises, the assistance was a facilitating factor to
163
Table 5.38
Support of a Dependable Partner as a Facilitating
Not Total Chi- P
of some moderate considerable great
at all Square Value
12 5 6 16 39 78
Micro (15.40) (6.40) (7.70) (20.50) (50.00) (100.00)
1 8 5 26 29 69
Small (1.40) (11.60) (7.20) (37.70) (42.00) (100.00)
0 0 0 0 1 1
14.649@ 0.066
Medium (0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
13 13 42 42 69 148
Total (8.80) (8.80) (28.40) (28.40) (46.60) (100.00)
great extent for 42.00 per cent, to a considerable extent for 37.70 per cent and to some
extent for 11.60 per cent of entrepreneurs. For the single entrepreneur in the medium
sector the assistance was a facilitating factor to a great extent. That means the strength of
the facilitating factor is almost same for all the units except the single medium enterprise.
The chi-square value also is not significant showing that there is no difference between
micro, small and medium enterprises as to the issue of getting the support of a dependable
partner acting as facilitating factor for the entrepreneurs of MSMEs.
‘Others’ as Facilitating Factor for the Entrepreneurs of MSMEs
In the category of ‘others’ are included Government policy, and ad hoc
programmes, political manifestos and administrating support. The table 5.39 presents the
response of entrepreneurs towards all these aspects.
Table 5.39
‘Others’ as Facilitating Factor to the Entrepreneurs of Sample MSMEs
Not Chi- P
at all Square Value
10 2 5 10 51 78
Micro
(12.80) (2.60) (6.40) (12.80) (65.40) (100.00)
0 1 3 9 56 69
Small
(0.00) (1.40) (4.30) (13.00) (81.20) (100.00)
11.042@ 0.199
0 0 0 0 1 1
Medium
(0.00) (0.00) (0.00) (0.00) (100.00) (100.00)
10 3 8 19 108 148
Total
(6.80) (2.00) (5.40) (12.80) (73.00) (100.00)
164
As the table shows, ‘others’ acted well as the facilitating factor to the entrepreneurs
of MSMEs. They were facilitating factor ‘to a great extent’ for 73.00 per cent of the total
sample, wholly to the single entrepreneurs in medium sector, for 81.20 per cent, in small
sector and 65.40 per cent entrepreneurs in the micro enterprises. Next, they were
facilitating factor ‘to a considerable extent’ for 12.80 per cent of the total sample and
micro units and for 13.00 per cent of entrepreneurs in the small enterprises. They were not
at all facilitating factor for 12.80 per cent of entrepreneurs in the micro enterprises, and
6.80 per cent of the total sample. However, the chi-square test value of 11.04 per cent in
not significant, showing that there is no difference between micro, small and medium
enterprises as the facilitating factor to the entrepreneurs of sample MSMEs.
Summary of Technical Assistance for Government Agencies as Facilitating Factor
‘To a Great Extent’
Table 5.40 shows the different types of technical assistance and the percentage of
entrepreneurs for whom they were facilitating factor ‘to a great extent’
Table 5.40
Summary Statement Showing Percentage of Entrepreneurs for
Whom Types of Technical Assistance from Government Agencies as Facilitating
Factor to a Great Extent
Types of
technical assistance Micro Small Medium Total
Supply of machinery(Indigenous) 89.70 75.40 100.00 83.10

Supply of machinery(Imported) 57.70 36.20 100.00 48.00
Supply of raw materials (Indigenous) 34.60 17.40 100.00 27.00
Supply of raw materials (Imported) 47.40 29.00 100.00 39.20
Sale of goods (within the country) 30.80 40.60 100.00 35.80
Sale of goods (outside of the country) 67.90 62.30 100.00 65.50
Securing ancillary relation with large firm 61.50 44.90 100.00 54.10
Making available of skilled workers 37.20 20.30 0.00 29.10
Getting support of a dependable partner 50.00 42.00 100.00 46.60
As the table shows, the types of technical assistance with highest percentage of
entrepreneurs to whom they were facilitating factors to a great extent were supply of
indigenous machinery (83.10 per cent) and sale of finished goods (65.50 per cent). For the
single medium enterprise entrepreneur all were facilitating factor to a great extent except
165
availability of skilled workers. For the small enterprises, the types of technical assistance
with high percentage of entrepreneurs were supply of indigenous machinery (75.40 per
cent) and sale of finished goods outside the country (62.30 per cent). For the micro
enterprise also supply of indigenous machinery (89.70 per cent), sale of finished goods
(67.90 per cent) and securing ancillary relation with a large firm (61.50 per cent) were the
facilitating factors ‘to a great extent’. Thus, it can be concluded that the technical
assistance by government agencies in different forms acted as facilitating factor for the
entrepreneurs of MSMEs in Kadapa district.
166

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Micro 61.50 73.10 73.10 80.80 57.70 30.80

Small 65.20 68.10 78.30 69.60 43.50 13.00

Medium 0.00 100.00 100.00 0.00 0.00 0.00

Total 62.80 75.70 75.70 75.70 50.70 22.30

Note : Figures in parentheses indicates percentage to total.

Supply of machinery(Indigenous) 89.70 75.40 100.00 83.10

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