Professional Documents
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10300025
DEEPTHI NAIR H V
Research Scholar, PhD Commerce (Part – Time External), Department of Commerce Annamalai University,
Chidambaram, Tamilnadu, India. Email: deepthinairhv@gmail.com
Dr. V. MAHESWARI
Assistant Professor, Department of Commerce, PS.PT.MGR. Government Arts College, Puthur, Deputed from
Annamalai University, Chidambaram, Tamilnadu, India.
Abstract
This study sought to uncover the motivations driving rural entrepreneurship, specifically within the context of
Kerala rural entrepreneurial profiles. By analyzing and interpreting data gathered from 270 rural entrepreneurs,
this research provided invaluable insights into the relationship between entrepreneurial motivations and profiles
within rural environments. In order to better understand the relationship between entrepreneurial profiles and
factors including social anchoring, intellectual drive, autonomy, and an enabling environment, the researcher
formulated and evaluated hypotheses. Her results revealed nine cases that supported the null hypothesis while
twelve favoring alternative hypotheses; suggesting an association between specified motivators and
entrepreneurial profiles.
Keywords: Rural Entrepreneurs, Entrepreneurial Profile and Rural Entrepreneurial Motivation.
INTRODUCTION
Over the past decade, India's agriculture sector has witnessed a significant slowdown in growth
and employment levels. To combat these difficulties, an emphasis has been placed on building
entrepreneurial skills in rural communities to stimulate economic development.
Rural entrepreneurialism has shown impressive gains in manufacturing production, job
creation and economic development within rural communities - particularly through labor
intensive activities rooted in traditional knowledge that align well with India's economic
environment.
Almost 90% of India's businesses are micro, small, or medium-sized companies (MSME), and
these establishments play a crucial part in the country's economic progress. Almost 69 million
individuals work for rural businesses, with 15.4 million of them workers being women. 2.2
million of those businesses are controlled by women. From 365.76 lakh units to 515.57 lakh
units, their numbers have recently increased exponentially, contributing 37.5 percent to India's
GDP.
Rural enterprises - such as handicrafts, food processing, garment making and textile production
as well as industries using resources such as wood, bamboo, rubber, clay electronics and
electric components - play a complementary role to large industries by helping ensure more
equitable income distribution to the advancement of several socioeconomic groups, including
women, educated but jobless young, and SC/STs and physically handicapped individuals.
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Kerala's rural enterprises sector holds immense potential to become an economically robust,
dynamic, and globally competitive contributor to its economy. Thanks to excellent
transportation networks, Economic development, job creation, and regional balance should
result from the establishment of rural firms in Kerala, thanks to its highly skilled people
resources and increasing industrial infrastructure (Venkateswaralu & Ravindra 2015). As such,
this research seeks to investigate rural entrepreneurship from both motivations and profiles
perspectives and assess any significant differences.
Significance of The Study
Rural enterprises hold great promise for combatting economic backwardness in rural Kerala by
addressing regional imbalances, exploiting untapped natural resources efficiently, improving
living standards and encouraging self-reliance. Rural entrepreneurship has emerged as an
effective strategy for mitigating rural unrest and increasing farm earnings, providing jobs and
contributing to national GDP growth - providing autonomy and independence close to home.
As a result, development organisations and institutions see rural entrepreneurship as a path to
self-sufficiency that aids in the progress of nations, providing autonomy and independence
close to home. This study offers invaluable insights into rural entrepreneurial motivations and
any significant differences depending on individual entrepreneurial profiles. Understanding
how government plays an integral role in supporting rural enterprises is paramount to creating
successful enterprises in these rural regions, so identifying issues influencing motivation for
rural entrepreneurs becomes critical to crafting appropriate measures - either new policies and
programs or improving existing ones - that benefit all concerned governmental agencies. The
results of this research study could have great ramifications.
Furthermore, this study can assist educational institutions in creating new curricula with an
emphasis on entrepreneurial motivation. Such an emphasis may serve to inspire and attract
students towards self-employment thereby cultivating an entrepreneurial culture within
education institutions.
Statement of The Problem
Entrepreneurial endeavors in Trivandrum District's rural areas face unique obstacles,
particularly with respect to engaging educated unemployed youth in entrepreneurial activities.
There is a lot of room for growth in rural businesses in this area, backed up by globalization
trends and government support, an alarmingly large proportion of potential rural entrepreneurs
opt out from such pursuits. However, even among these obstacles exist successful rural
entrepreneurs who continue to make an impactful mark despite hardship. Under this context,
the researcher hopes to delve into rural entrepreneurship, with particular attention paid to
understanding rural entrepreneurial motivations and any significant variations between
entrepreneurial profiles. Shed light on specific challenges and opportunities facing
entrepreneurs in Kerala with particular reference to Trivandrum District is anticipated from this
exploration.
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METHODOLOGY
This study's conclusions are based on an analysis of secondary and primary data. Secondary
sources included official publications, journals, books and websites while primary information
was gathered through structured interviews of 270 participants using an interview schedule
which asked specific questions to gather respondent profiles and motivations for rural
entrepreneurship in Trivandrum district.
Sampling design
This study covered all rural enterprises within a district. Five Block Panchayaths from across
the district were selected at random, using stratified random sampling as the methodology. A
total of 270 rural entrepreneurs were sampled using stratified random sampling; They used the
independent sample t-test, ANOVA, as well as factor analysis tools as well as statistical
software SPSS for this task.
Scope of The Study
This study covered all rural enterprises within a district. Five Block Panchayaths from across
the district were selected at random, using stratified random sampling as the methodology. A
total of 270 rural entrepreneurs were sampled using stratified random sampling; for their
analysis we utilized one-way ANOVA, independent samples t-test, factor analysis tools as well
as statistical software SPSS for this task.
Limitations of The Study
The study is confined to the geographical area of Trivandrum district in the state of Kerala.
The investigation was carried out exclusively from the standpoint of rural entrepreneurs.
While rural enterprises can encompass medium and large-scale establishments in rural
settings.
Research in this field is limited to small businesses set up in rural regions.
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Entrepreneurial Motivation
An individual's intrinsic drive to achieve their objectives is known as motivation (Berleson
1964). Entrepreneurial motivation refers to the process that stimulates an entrepreneur to put
forth greater effort toward meeting entrepreneurial objectives.
Researchers frequently discuss entrepreneurial motivations using various terms, personal,
critical, necessary, opportunity, unhappiness, independence, push, pull, economic, and non-
economic considerations; personal, intrinsic, and extrinsic impulses; worries about family
security; and so on.
Rural Entrepreneurial Motivation
Rural entrepreneurial motivation refers to the mechanisms which motivate rural entrepreneurs
to exert heightened efforts in pursuit of their entrepreneurial objectives. Based on a literature
review that identified 25 potential motivators, feedback from a pilot study involving 25
respondents and input from field experts narrowed this list down to 21 variables.
Exploratory Factor Analysis (EFA) was employed to simplify interpretation and reduce
dimensions in our collected motivator data, the three components that explain 98% of the
variance in EFA were found using Principal Component Analysis with varimax rotation.
Autonomy and intellectual drive, social anchoring, and an enabling environment are the three
components in question.
Testing hypothesis - Rural entrepreneurial motivation
Motivation in rural entrepreneurship may differ based on factors like gender, caste, education
level, business type, religion and ownership structure. To assess whether the profile and
characteristics of rural enterprises impact motivation among entrepreneurs in these areas, we
used powerful statistical tools like the One-Way Analysis of Variance (ANOVA) and the
Independent Samples t-test to examine the gathered data.
Gender and rural entrepreneurial motivation.
There is evidence that gender influences rural entrepreneurs' desire to start a business,
according to earlier studies (Tomin 2004 and Mathias 2013). Males generally tend to show
greater rural entrepreneurial motivation compared to females. The goal of this research was to
generate hypotheses concerning the link between gender and the desire of rural entrepreneurs
to establish a firm, and to test those hypotheses using an Independent Samples T-test. The
results are presented in Table 1.1.
Ho.1: There is no significant difference in rural entrepreneurial motivation between male and
female rural entrepreneurs.
H1.1: There is a big difference between how motivated male and female rural entrepreneurs
are when it comes to rural business drive.
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According to the above table, every p-value that dealt with rural entrepreneurs' incentive to
start a business was more than 0.05, thus supporting the null hypothesis and ruling out any
notable differences between seasonal and nonseason businesses in terms of rural
entrepreneurial motivation.
Age of rural entrepreneur and rural entrepreneurial motivation
Experience gained through exposure to various situations increases maturity and decision-
making abilities, thus acting as an incentive for rural entrepreneurs. Age can serve as an added
motivating factor, spurring them on to start and successfully manage ventures. To explore
whether there were differences in rural entrepreneurial motivation among young, middle-aged
and senior entrepreneurs using One-Way ANOVA tests; see Table 1.6 for results of hypothesis
tests.
Ho.6: When it comes to the reasons why people start businesses in rural areas, there is no clear
age gap.
H1.6: In rural areas, there seems to be a generational divide when it comes to what drives
young, middle-aged, and elderly entrepreneurs.
Table 1.6: Age of Rural Entrepreneur and Rural Entrepreneurial Motivation
Entrepreneurial motivations Age of rural entrepreneur Mean SD F df P Value
Young Rural Entrepreneurs 4.05 .826
Enabling Environment; Middle Aged Rural Entrepreneurs 3.99 .782 .121 267 .886
Senior Rural Entrepreneurs 4.00 .977
Young Rural Entrepreneurs 4.77 .323
Autonomy and Intellectual Middle Aged Rural Entrepreneurs 4.49 .371 .358 267 .699
Drive;
Senior Rural Entrepreneurs 4.83 .273
Young Rural Entrepreneurs 4.91 .260
Social Anchoring; Middle Aged Rural Entrepreneurs 4.96 .157 2.43 267 .090
Senior Rural Entrepreneurs 4.91 214
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Ho.7: When it comes to the motivations of entrepreneurs in rural areas, there is no significant
difference among entrepreneurs who are Hindu, Christian, or Muslim.
H1.7: In terms of what drives entrepreneurs in rural areas, there is a marked difference
between Hindu, Christian, and Muslim business owners.
Table 1.7: Religions and Rural Entrepreneurial Motivation
Entrepreneurial motivations Religion Mean SD F df P Value
Hindu 3.20 .857
Enabling Environment; Christian 4.23 .720 10.42 267 .000
Muslim 4.25 .692
Hindu 4.82 .342
Autonomy and Intellectual Drive; Christian 4.73 .368 1.69 267 .186
Muslim 4.80 .336
Hindu 4.94 .204
Social Anchoring; Christian 4.96 .182 .462 267 .631
Muslim 4.94 .173
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CONCLUSION
Kerala's rural enterprise sector holds great promise as an economically dynamic, globally
competitive sector of its economy. This potential is a result of the favourable conditions for the
expansion of rural businesses, which in turn boosts the economy, creates jobs, and promotes
balanced regional progress.
These conditions are made possible by the accessibility of personnel with advanced degrees,
robust communication networks, and continuous improvements to industrial infrastructure.
This study sheds light on rural entrepreneurial motivations and explores variations based on
entrepreneurial profiles. Through this investigation, the government, a key supporter of rural
enterprises, can gain an insight into challenges faced by rural entrepreneurs when it comes to
motivation. Understanding can assist in the creation and improvement of policies and programs
designed to better foster rural entrepreneurship.
Additionally, this study can assist educational institutions with revising their curricula to
emphasize entrepreneurial motivation as a means of engaging students towards
entrepreneurialism.
Exploratory Factor Analysis (EFA) was applied to the data, revealing three key factors as being:
"Enabling Environment," "Autonomy and Intellectual Drive," and "Social Anchoring." To test
hypotheses related to these three key components and entrepreneurial profiles; The null
hypothesis was accepted in nine situations, whereas alternative hypotheses were rejected in
twelve.
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Reference
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