CHAPTER - IV

METH OD OF T HE S TUI:.Y
 METHOD OF THE STlJTIY

As a result of many psychological and socio-

logical research studies there is a conse nsus that

e nt repre neurship is a p r oduct of interaction among a

number of factors. Some of these factors are in the

i nd i v idual and the rest are found in the s o ci a l,

cultural, economic and political milieu. Pe rhaps , it

it an i ndividua l with certain definite pro pensities and

with certain social and economic tr a its t ha~ make a

successful entrepreneu r . The discussion made in the

previous chapters clearly reveals that an en trepreneur

is certainl y different from . the non-entrepre neur in

terms of his psychological disp osition. Moreover, a

review of the availab l e lite rature and the factors

contrib utin g to success ful entrepreneurship sup r ort the

contention that c ert ain pe r so nality characteristics are

associat ed with succe ss ful entrepreneurs.

With this backgro und the present study concentr-

ates upon the psycholog ical c haracteristics o f success-

ful small scale e ntrepreneurs wh ich helps t hem to achieve

excellence in their ventures.

 54

Objectives :

To determine the psychological c haracteristics

of successful e n trepreneu r s, the specific objectives of

the present study are -

1. To study the pe r so na lit y pattern of successful

entrepreneurs.

2. To stud ':i ach i e ver.. e nt n,oti vat ion a mong successf u l

e ntrepreneurs .

3. To stud y ri sk taking behaviour among succ ess fu l

entrepreneurs .

4. To co mpa re the personali t y pattern of more

success fu l and le ss successful entrepre n e u rs.

s. To c ompare ac h ieve me nt mot i vation between more

and less successful entrepreneurs .

6. To c ompare risk taking behaviour between mo re

and less successfu l entrepreneurs.

7. To paint out pers onali ty pattern and ps yc h olo-

gical characteristics which can predict success-

ful entrepreneu rship.

8. To study the influence of biographical factors

on entrepreneurial success.

Hypothe ~ :

The stud y intends to examine the follo wing

 55

h y potheses -

1. The persona)ity traits of mo re and le ss success-

ful ent reprene u rs dif fer s ignificantly (on the

basis of t he s t ud i e s of Eysenck. 1964; Collins

and Moore, 1 9 64 ; Bunke r. 1970; Alladin M.T ••

1979 and others. )

2. More succ ess f ul entrep r eneu~s have higher degree

of motivation ac h i evement than les s successful

e n trepreneu rs (on the basis of studies of

McClelland , 1 96 1; Hundal , 19 71; Nandy , 1973 and

oth ers).

3. Mo re successful entrepreneurs have moderate ri sk

t aking behaviour in comparison to less success-

ful entrepreneu r s. (on the basis of studies of

McClelland , 1 961 ; Christopher, 1 569 and others).

4. Mo ti vation achievement and personalit y traits

among entrepreneurs are si ~ni ficantly correlated.

5. Risk taking behaviour and personality traits

among entre p reneurs are significantly correlated.

6. Biographical factors do not have any significant

ef fe ct on e n trepreneurial success.
 56

Criterion of Success:

It is difficult to as s e s s t h e success o f entre-

preneur. Infa:t, obj e c t ive a ppraisal o f perfo rma nce is

no t impo s s i b le b ut diffic u lt hence the p res e n t s tud y ,

the refore, the res ea rche r d e c ided to rel y on the asse -

ssme nt of succ e s s o f e nt r ep r ene u r s o n the basis o f

average gro wth of t he i r busines s.

There can be a nu mbe r of i ndicato rs of gro wth of

business like i n cre a se i n investment , prod uct i on , sales,

ma rgin of prof it, e xpa ns io n of market, stabil ity in

bus ines s , e tc. As r eli a ble in f ormation a b out p rofit and

sale was not provided by the respcndents due to s e veral

reasons, it was no t f a i r t o a ssess success on t he se

b ases. Furth er, fr was f ound that some ind us t r ies li k e

leathe r had large su p p ly i n inter- state a nd ove r seas

ma rkets while others l i k e st eel safe an d furnit ure

ind ustri es had no scope in t h e international marke t and

h a d a ver y s mal l s upp l y t o o ther states . Th e r e fo re,

exp ansion o f ma rket cou l d n ot be take n as a reliab le

ind icator o f s u cce ss . To o ve rcome t h is p ro b le m, growth

in invest ment was take n a s t he main c riterion o f success.

To assess the growth o r success on t h e b a sis of ca p ital

formation, the a v e r a g e a nnual gro wth rate was wo r k ed out

b y app l y ing st a tis ti ca l pri n c iple (see statis t ical

anal ysis on pag e No . ).

 57

Variables:

The present study is basically an •expost-facto'

cum correl ationa l research examining the i nde p e ndent

variables in r e tros pect for t he i r possible relati o ns to

and ef f ects on t he depend ent variables. As the

independen t variables in such researc h are inherently

not manipulable. the researcher d oes no t have direct

co nt rol on them. The variables of this study are

'attributes • and an attempt has. therefore. been made

to c ontrol such independen t v ariables by matching and

selection. The rationalit y behind this 'expost-facto'

stud y is that despite i t s methodological wea kness. it

is more i mportant than experimental one in social

sciences like psycholo gy (Kerli nger, 1978).

The independent variables o f the stud y with

ma n ipulated treatment t hrough selection are:

1. Personality traits

2. Achievement motivation

3 • Risk taking behaviour

4. Religion

s. Caste

6. Age

7. Fathe r's occupati on; and.

a. Qualification .
 58

The situation and sequence relevant extraneous

variables of the present study are controlled in the

following manner -

Seq uence relevant variab les Techniques of control

1. Fatigue Elimination

2. Monotony Elimination

Situation relevant varia ble s Techniques of CJntrol

1. Culture Randomization

2. Ecology Randomization

~ mple s election :

The value o f the data very much depends on how

well the representative sa1nple is selected . Thus, utmost

c are was taken in s e lecting the representative samp les

of more and less successful entrepreneurs. The selection

process had four phases.

Ist Phase:

For a fai r selection of sample a list of small

scale units in u . P . was collected from Directorate of

Industries, Kanpur. From this list four groups of

industries, i.e., steel safe and furniture. lea ther

goods , glass wares and bang les and chemicals were

se 1 ected for drawing the representative san1ple of 400
 59

entrepreneurs. Re as o n fo r s e lecting the aforesaid

s mall scale ind u s t r ie s wa s tha t t he i r maximum concen -

tration i s ma inl y in three industri a l c ities of u.P .

n amel y Ag r a , Fi :cozabad anrJ. Kai.1:1ur. Their greater

concentrat io n at one o r two neighbouring places also

f a cilitated the field wo rk. Registered units running

at least for l as t f i ve or more years were selected to

work out a v erage annual inc rease in i nvestment for

measu r i ng their suc c e ss .

I Tnd Pha se:

In the s eco nd p hase names and address of 400

s mall sc a l e e n tre pre neurs ( loo from each industry) were

pic ked out random l y f r om the s aid l i s t o btained from

Directo rate o f Indust r i e s, Kanpur . Introductory letters

we r e a l s o p os t e d t o t h e m f o r c o - operation.

IIIrd Pha se:

Then t h e r e se archer personally c ontacted these

fou r hundred sma l l e nt r epre neurs for collecting infor-

ma tion wi th the he l p of a s tructured ' interview schedule

As all t he fo u r i ndustri es had greate r concentration in

the ci ti e s of Kanpu r, Agra and Firozabad, it facilitated

the res earc her i n collect i ng the data .

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IVth Phase:

Lastly, all the entrepreneurs so interviewed

were classified into two groups, i.e., more and less

successful on the basis of their average growth rate

in investment. The t otal scores of average increase

in investment so obtained were ranged between 20 to 140

per cent. For such classifi cation these scores were

divided in three categories as follows -

Categories

Less successful Upto 50 per cent

Average successful 50.1 to 75 per cent

More successful Above 75 per cent

Acco rdingly, 25 entrepreneurs from the categories

of less and more successful were selected seperately from

each of the four indus tries . As just double numbers of

entrepreneurs (400 total) were interviewed , no p r o ~ lem

was faced in final selection of 100 more and 100 less

successful entrepreneurs for analysis. The selection

schedule of entrepreneurs in sample is given b elow -

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Table 4. 1: Distribution and s ele ction of Entrepreneurs

Industri e s

Groups Glass Chemical Leather Ste e l safe Total

More
Success f ul 25 25 25 25 100

Less
Success ful 25 25 25 25 100

Total 50 50 50 50 200
-------
Tool s :

In the present study f ollowing tools were used :

1. The Sixteen Personali~Factors Questionnaire:

Cattell' s Sixteen Personali ty Factors Test is a

major developmen t in the area of personality . It is an

obj e ctively scorable test devised by basic res e arch in

ps y chology to give the c omp le te coverage of perso n ality

traits in a brie f time. It p rovides a comprehensive

range of trait scores wh ich s hou l d be use f ul for occupa-

tional guidence and success and it may also be helpful

for selection purposes . The s e sixteen dimensi ons or

scales are essentially indep endent ; that is to sa y , the

correlation b etween one and another is usually quite

small. Thus, each of t he sixteen sc ales bring an entirely

new and per f ect in formation a bout the person. This does
 62

not find in many multidimensional scales. Some other

e~ sen t i a l el 2men ts of the 16 PF test are -

1. Th e test is embedded within the broader fa b ric

or ne tuork of gene ral psychological t h eory ,

2. t hat i n i ts presen t form the test rests u pon an

ernpi rical foundation of more than ten factor

anal ytic investigations across a pool of several

thousand items,

3. the ps 1 chometric properties of the sc a les (e.g.,

reliabili t i es , validaties, etc. ) have been

explored and re ported for a variet y o f samples

a nd conditi on s; and,

4. research f i n ding s involving the test pro v ide the

rest user with a rich base of criterion e v idence

in indust ri a l, clinical, social and e d ucational

ps ychology. The inves t igator has used t h e

Indian adaptati o n (in Hind i lang uage) o t t h is

test by S. D . Kapoor.

Descriptio n :

The test is des igned f o r use with indi v iduals

aged sixte en a nd a bo ve. Te n to thirteen ite ms are pro-

vided for each scale in Fo rm A. Thus, the questionnaire

consists of total 187 i t ems . The questions are a rr a n ged

in a roughl y c yclic order determined by a plan to give

 63

maximum convenience i n scaring by stencil and to insure

variety and interest for th e examinee. Three al te rna -

ti ve answers are p rovided for each of the questions .

The te s t c onstruction i s aimed to minimize to distortion

and deli b erate faking.

Admin i stration :

The test is ver y easy to ad min iste r and most

subjects f ind i t interes ting . Th e respondent are requi-

r ed to put a ticJ< (_/ ) on answe rs accord ing to t heir

c hoi ce. Generally, i t takes 45 mi nutes to complete the

i nvento ~y . Ho wever , t h ere is no time li mi t for it and

li b era l time can be allowe d to the subjects to tick the

ans we rs .

Scoring:

Each answer scores o, 1 or 2 points, except the

Factor B answers which score o (incorrect) or 1 (correct).

The sc ore s o f each i tem co nt ri bute to only one factor

tota l. Test c an be scored with a stencil key .

Re liab i l i ~ :

The dependab ility co - efficiants , i . e. , short term

test - retes t correlation o n Form A on a samp le of 110

be twe e n age group o f 2 3 to 43 years ranges between .59

to • 84 .
 64

Trait stability co-efficie nt was ascertained by

the author o n 98 persons of age group of 19 to 37 years

on Fo r m A, after a l apse of 8 weeks. The trait stab ili-

t y c o - efficient ranged between .51 to . 8 1 which gave

evidenc e on the stab ility o f t he trait.

Equivalence c o -ef ~icient of A and B Forms were

estimated on a sample of 57 pe rson s between age group

of 2 1 t o 28 years . The reliabilit y co-efficients

obtained ran g ed between .70 to .9 2 .

Validity :

The final forms of the 16 PF Inve ntory constitute

o nl y those items which have be en su r vived from several

thousands o f items o r i ginal ly tried . The items of the

final forms c o ntinue to have si g nificant validit y

a g ainst the factors after succe ssive factor analysis on

different samples.

Validit y has been e s timat ed by the author from

c o r r e l ation of two factor Halve s A and B Forms t ogether.

The va l ue ohtained r anged be twe en . 2 7 to 93 .

Descripti on of the Sixtee n Primary Perso nali ty Factors :

Low Score Direction High Sco re Di rection

Facto r ' A'
Reserved Vs . o u t goi~
Detached , c oo l, Warmhearted , eas ygoing ,
critical participating
(sizothy mia } (Af fe ctothymia )
 65

Factor 'B •

vs. More intelligent

-Less intelligen t
-
Concrete-thinking Abstract-thinking

(Lo wer schol as t ic (Higher scholastic mental

me ntal c apacity ) capacity)

Factor • c •
Emotiona lly stable

Emotionally less Mature, faces reality, calm

stable, ea si l y upset
(Lowe r ego strength) (Higher ego stre ngth)

Fac tor ' E •

Humble vs. Asse rtive

Mild, acc ommodat ing Indepe ndent , aggressive,

compe titive, stubborn

( Submissiveness) (Dominance)

Factor ' F •

Sober vs. Happy-go -1 UC ky

Taciturn, prudent, Impulsively li vely,

serious enthusiastic
(Desurgenc y ) (Surge ncy )

Factor • G •

Expedient Vs. Conscientious

Evades rules, feels Persevring, staid, rule-

few obligations bound.

(Wea k er superego strength ) (Stronger superego strength)

 66

Factor • H •

Shy Vs. Venturesome

s ensitive, timid, Socially-bold, spontaneous

restrained.

(Threctia) (Parmia)

Factor •I'

Tough-minded Vs. Tender-minded

Realistic. no - Dependent. over-protected

nonsense .self - reliant. sensitive

(Harria) (Premsia)

Factor 'L'

Vs. Suspicious

Free of jealousy. Self-opinionated, hard t o

eas y to get on with, fed

adaptable

(Alaxia) (Pretension)

Factor • M •

Practical Vs. Imaginative

careful proper Careless of practica l

conventional matters, absent minded

(Praxernia) (Autia)
 67

Factor ' N'

Forthrig_ht vs. Shr ewd

Natural , se ntimental Ca lcu lati ng, worldly,

p enetratin g

(Artlessness) (S hrewdness)

Factor 'o •
Placid vs. AE,Erehensive

Con fident , self- De pressive , troub led

assured

(Untroub led ade q uac y ) ( Gui lt p roneness)

Factor 'Q'
-1-
Conservative Vs. Experimenting_

Tolerant of traditional critic a l liberal, fre8

d i fficu l t ies thinking

(Cons ervatism ) ( Rad ica lism )

Factor IQ I
2-
Grou p -dependent Vs. Se 1£ -suf :E icient

A 'Joiner ' sound Prefers own decisions,

fol l ower reso urceful

(Group-adherence) ( se l f-sufficiency)

Factor IQ I
3-
Undisciplined Vs. Controlled

Fo llows own urges, Socially precise, following

self-conf lict self-image

( Low integra ti o n) (High s e l f - concept control)

 68

Fac
- - -t -
or-=•o4 -'
Re laxed Vs . Te nse
Tranquil, torpid, Frustrated, driven, over-
unfrust.rated wrought
(Low erg ic ten sion ) (High ergic tension)

2. Achievement Mot ive Test:

A great deal o f work on ' Motivation • has been

do ne in our co unt r y and a bro ad. Expe ri mental investi-

g ations i n the field s o f learning and pers o nality

c o nc e rni ng the motivational behaviour have been done

by Mu r ra y , Atkin son and McClelland. Various motives

like h un ge r.sex , power , depende ncy , affiliation,

ac h ievement mo tive h a v e been studied . The majo .ci ty of

the studies have b een d o n e foll owing the technique

involving free-association and projective methods which

were pione e red by Si gmur.c. Freuc. ( lS 38 ) , Murray ( 1938),

McClelJ.and (195 3 ) and others. Few studies have been

done by using the verbal cue s instead of pict u re cues.

IOWA Picture In t erpretatio n Test (IPIT) was another

tec hn ique t o measure ne ed achie vement (n/ Ach).

Fo llo•.vir.g IPIT , Hei l burn Achievernent Need Scale

derived fro m Cough' s Ad jective Check-list and Edward's

Perso nal Preference Sche dul e (E PP S ), Bi shwanath

Mukherji ga v e a forced-c hoi ce Test of Achi P.ve rnent

 69

Motivati on on American sample. A cross-cultured study

on the same mea sure was done on the Indian samp le in

Biha r. Wit h a reli ability index (Test retest relia-

bility after an interval of two months} of .7 1 and

othe r cross-validation results which are satisf a ctory,

the use of Se ntence Co mp letion Test (SCT) as a measure

of n/Ach are very strongly recomr,.ended. It may be

mentioned here t hat the use of verbal measure of n/A;h

suffer too much wi t h la nguage variables, social

desirability, intelligence and traini n g effects.

Despite of the a bove criticis m the use of lan gu age

meas ures o f n/A~h are fairly in practice.

Description:

The present test by V.B . Bhargava is intended

to measure the n / A~h sco re o f the person. It is based

on the lines following the pattern on Bishwanath

Mu~herji and the method of s entence completion Test.

The test consists of SO items of incon~ l ete sentences

(stems) which are to be completed by the subjects .

Some special featu res o f this test are as follows:

1. The c o nstruc tion of the test was done b y follow-

ing the procedure which was collection of items

in Ei nd i fro m different sources, pooling them

 70

and then selecting the m according to the

respec t ive merits of the items.

2. The similar procedu re was followed for fixing

the possi b l e alternati ve responses.

3. It is supposed t ha t c hecking on the alternative

respons e s would indicate the true feelings of

the su b ject.

4. Repetition of items is done to know the level

of c ons iste nc y with which the subject iG

~nswering the test.

Ad ministration:

The usual ti me for administering the test is

30 minutes including t he t ime needed for giving the

instruction to the subjects. Eac h of the 50 items of

incomplete sentences has three alternative responses

against the m. The sub jects are required to c h ec k the

item by pu tting a c h ec k - mark (_/) on any of the t h ree

alternative res po nses of t h ei r choice. No talkin g or

consul tatio n is allowed to subject wh ile answering the

i ten,s .

Seo ring :

The procedure for scoring is very simple. It

can be done with the help of a scoring key pro v ided

 · 71

with the test. Each item indicating Achieverrent

Motivation (n/ Ach) is given a score of 1 and the total

score earned ob all the items is the n/Ach Sco re. The

maximu m possible score wou ld be so.

Rel iability :

Test retest reliability after an

i nterval o f one month.. .. .87

By comparing the responses on

s imilar ·ite ms .... .79

Validity:

The test was trie0 for ha v ing the agree ment with

the criterion test of n/Ach, a nd with educati o nal

ach ievement in various fac ul ties . It was found that t h e

test s cores on thi-s tes t and that with the test-sco res

SCT of Dr . Bishwanath Mukherji had an agree me n t o f .80

and with Educational Ac hi evement Test (General) it had

an agreement of .75.

3. Risk- ta ki ng Questionnaire:

Many studies have been cond ucted in the west t o

correlate t he •risk' with a number of personality and

socia l va riab les. A l ot of tests were also constructed

to measure the particular aspe ct of personality , i.e.,

 72

'risk- taking attitude ' . But all these tests were

according to the norms an d values o f Foreign testees.

In India, Chaubey (1 974) and Yousuf (1 974) constructed

t he Risk- taking Questionnaire based on the norms of

Eastern u·. P . and Mysore Population, respectivel y . This

i ni tiated t he authors; Vire ndra Sinha and P . N. Arora to

construct t h is Risk-taking Questionnaire to measure the

risk- tak ing tende n c y o f Indian people. The test was

revised in 1982.

Desc_;:iption:

The questionnaire has b ee n designed to measure

the exte nt of •risk' ta ken by a particular individual

in his personal as well as in hie social li fe . It is

usuable o n Male Literates (14-50 yea rs old) o= urban

and Rural Population of Wes tern Hills, Tarai Areas of

Uttar Pradesh . Th is tool is c apable of assessing the

ma g nitude of 'ris k • in diff ere nt areas of life .

The follO\ving e ight areas of r i sk included in

t he tes t are conside red to be the most important and

affiliated areas of ris k s fo r I ndian life by a number

of s o cio logists, psy chi atrists and psychologists.

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Hills (A)

2. s pace (B)

3. Sea (C)

Commercial (D)
Traders

s. Police and (E)

Intelligence
Services

6. Fire (F )

Professional (G)
Traders

8. Military (H)
services

In RTO , the names of different areas are r.ot

marked but the entire questionnaire is di v ided into

eight parts, each containing five items pertaining to

one particular area of risk in the seq uence already

stated . The language of the questio nnaire is si mp le

Hindi .

Administration:

The RTQ with 40 items (five items in each area)

takes about 30 minutes on an average. The answering of

RTC is based on a Five Point scale. Each ite m has f ive

c ategori es , i.e ., very much , much, moderate, less and

very l ess . The teste e is asked to tick · (_/) the leaning

c ategory by him . Every item is to be ticked out.

 74

Scoring_:

In the questionnaire , the five leaning categor-

ies, i.e., very much, much , moderate, les s and very

less c arry the 5, 4, 3, 2 & 1 scores, respectively.

The sum of scores in all the eight areas gives the

total extent of ris k -t aking te ndency in the testee.

The maximum possible scores in the total are 200 and

the minimum scores are 40 onl y . The RTO is capable to

sort out t he risk-taking tendenc y in anyone particular

area.

Reliability:

Since the RTQ was to be made workable for six

types of t es tees, i.e., Urban Literate Adolescents; Urban

Literate Adults; Urban Lite rate Olds, Rural Literate

Adolescents, Rural Lit erate Adults; and Rural Literate

olds, the relia bi lit 1 and validi ty of RTQ were computed

seperately for each o f the six stratum. The 84 adolesc-

ents, 110 adults and 84 olds (Total 278 male literates)

were tested for computing the reliability and validity

of t he tool.

The r eliability of RTO was computed by the method

of Rational Equivalence using t he Kuder Richardson formula

for diff e ren t strata. In the present study the test was
 75

ad mi n i st e red o n urban male ad u l ts. The reliab ilit y

c o ef f ici ents o f t he q ue s t io nnaire f o r this parti cu l a r

area is s hown in· the t a b le given below:

~a-wise Re li ab i.!_i ty_o f RTQ

( Ur b an Ma l e Adults ( Literate) )

(N = 55 , 21 to 4 5 years old)

Reliability Area s o f RTO

Coefficie n t 1 2 3 4 5 6 7 8
r .69 . 38 . 68 .57 . 43 .83 .65 .73
p .Q l .0 1 . Ql • 01 .01 .Ql .Ql • 01

Valid ity:

The fo llowi ng f our t y pes o f v a lidities h a v e b een

t es ted by the au t ho r -

1 . Face Va lidi t y:

The RTQ h a s the face v a lid ity as the i t e ms a re

a ppare nt ly releva n t to the a reas c o nce rned. Thus a l l

t he 4 0 i t ems c ar r y t h e fac e v alid i t y .

2. Cons t ruc t valid i ty :

It i s de termin ed by i n v est i gating t h e p syc holo -

g ical qualitie s , t ra its or f actors measured by i t . The

s i g ni f ica n c e of di ffe r ence between t he e x tre me grou p 's

2 2
score s was c o mp u t e d by l'.. test . Th e value o f ~ t o be

si gn ifi c a n t on l e v e l .Q l = 6. 635.
 76

3. Factoral Validity:

For this t h e scores of 3 6 people of district

Ramput were c orre la te d with dif f erent eight areas of

t he tool seperatel y . The signi fi cant value of •r• at

df 34 and at level .01 = . 424 .

4. Concurrent Validity:

The RTQ scores of 109 male literate of district

Rampur we re correlated with t he scores obtained by the

same group o f testees on Yousuf •s •opinion Questionnaire'.

The value of •r• (corre latio n) to be significant at df

107 (n-2) and . o l l eve l of signific ance= .245.

s. Interview Schedule :

Apart from the three tests an interview sc1~d ule

was also c ons tructed to obtain other informati on about

psycho -so cial c ha racteristics of the entrepreneurs

r elevant t o this study. Information re garding caste,

religion, age, e d ucation, training, experience, father 's

ed u cation and occupation were included in the first part

of the sc hedule. The s e c o nd part of the schedule

includes in f ormation regarding their manufacturing units

like name o f the u n it, year o f establi shme nt, reasons

for enteri n g manufacturing, total investmen t. profit and

sale at the initial as well a s at the present stage.

 77

To know t he e xpan s io n o:: the market o :: the unit . info r m-

ati on was colle cted a bout the buyer of their p r o ducts .

Furthe r, r elevant question was setup to assess t ~ei r

satis f acti o n with the growth o f the unit.

Data co llection:

After o ne week of po sting introcuctory le tters

t he entrepreneurs were me t on apr ointmen t for collecting

the re quired dat2 . Firs t o f all, data for Ist a nd I!nd

parts o f t he sc h edule we re collected. Asking a bout

t he ir i nvestment , pro f it and sale the y were a ssured that

the information wi lJ be u sed only f or the purpose of the

study and will be kept secret o therwise . Then the first

test. i.e., 16 PF q uest i onnaire was given to t h e m to

mark the answers. The entrep reneurs were p roperly

ins t ructe d before givinq all the three tests. Normally ,

thi s 16 PF test took about one a nd half ho ur. The

rema ining t wo tests. i . e ., AG MT and RTC were given to

them next day to mark the tick(_/) p ro perly. These

two tests took one h o ur (30 minutes f or e ach ). So it

was very c onvenient and least ncnotonous for tha

en trepreneur a nd res e arche~ both to get co mpletec the

thre e t est s . folos t o f the re s pondents answered the

quest ionnaire in two sittings but only few requi~ed more

tha n two si ~ti ngs . Ful l c oo pe ration was extended by the

respandent entrepreneurs during collect ion of data .

 78

Stat i stical Techni que s :

Since the main o b jecti ve of the present piece

of work was to s t ud y and compare the personality traits.

need ac hievemen t and risk taking a ttitude of more

successful and le ss s ucce ss ful entrepreneurs, the

following statistical devices we re employed for data

analysis -

2.X
Mean = N

/2.d2
/ -N-
SD =
J € 12 622
I
s~ = - N + N

' t ' Value:

Further , 't} value was co mputed between means

o f t he t wo groups of more and less successful entrepre -

neurs for each o f t he sixteen personality traits.

Similarly , the si gnificance o f di fference between the

said two means for achievement motivation . risk taking

beha viour . c aste , r e l igio n, age, father ' s occupation

and qualification was al s o tested by ' t ' test. The

f ol lo wing formula wa s applied for computing ' t ' value -

 79

•t '

Cor r e l a t i o n:

To t est the hypotheses that achievement motiva -

t i o n and risk taking behaviour , a nd personality traits

are sign i ficant l y corre la ted among entrepreneurs ,

c oeffi c i ent of corre lation was got co mputect from

C~mput er Cent r e , IIT , Kanpur .

F i nally , significance of • r• was found out on

the basis o f Table No . 25 . Si gn i ficance of co-ef f i cient

o f c o r r elation at .05 and . ol level of c onfidence

( Garrett ).

Aver?g~ Increase in Investment:

To assess the entrepreneural succ ess on the

b asis of capi tal f ormation , the a ve rage annual growth

r atG was worked out by app lying following mathematical

princi p le -

Tota l i ncrease i n 100

AGR .- i nvestment of the unit
I nitia l investment of x Tota l runn ing period of
the un i t the unit

Tota l i ncrease in invest ment was fo und out by

substracting i nitia l i nvestment f rom present investment,

as -
 80

Present investment~ Initia l investment

Total running peciod (in years) was obtained by

subst racting the year of establishment o= the unit from

the present year . i. e .• 1990 as follows:

Present year - The year of establishruent of the unit.

This principle can be explained with the follow-

ing example :

unit •x•
Present year year of Initial Present
establishment investment investment

1990 1975 50 thousand 3 lacs

AGR = Average growth rate in investment.

AG?. = 2.so
.so X
100
15
= 3 3 • 3 pe re en t .