Factors affecting Entrepreneurship among the Disable people in Southern Districts of Tamilnadu - A Study

 

Dr E Saranya Devi1, Dr S Rajamohan2*

1Assistant Professor, Vidhyaa Giri College of Arts and Science, Puduvayal, Tamilnadu.

2Senior Professor Director of Alagappa Institute of Management, Alagappa University, Karaikudi, Tamilnadu.

*Corresponding Author E-mail: saranyaelango36@gmail.com

 

ABSTRACT:

The emergence and development of entrepreneurship is not a spontaneous one but a dependent phenomenon of economic, social, political and technological factors. Nowadays, many college graduates prefer to work as employee in a company or becoming government employee. Only few of them think to create self-employment or become entrepreneur due to lack of confidence in their skill and capital. These conditions may have both positive and negative influences on the emergence of entrepreneurship. For this and many reason, the disabled people involve themselves in entrepreneurial activities. The study implies that political, economical, social and technological factors(PEST analysis) such as family, friends, labour, government, field experience and so on together with motivational influences affect the entrepreneurship among the differently abled people for their start-ups.

 

KEYWORDS: Entrepreneurship, factors, PEST analysis, Garret ranking, disabled entrepreneurship.

 

 


INTRODUCTION:

Great entrepreneurs have the potential to change our way of life and work by understanding the customer demands (S.K.Mishra, 2019). They support the community by leading the way and developing unique solutions to practical, intellectual, and social problems. Entrepreneurs establish firms to offer products and services that solve issues in different manners. The Government of India has provided the assistance for making the individuals as a self-employer or entrepreneur (I.M.Leon et al., 2019). The entrepreneurs are only the great solution for giving employment opportunity for the unemployed youth. The government of India cannot provide the employment opportunity to all the Indians (S.Csillag et al., 2019). So, they can help them to make a self-employer by giving entrepreneurial practices, providing financial assistance and rehabilitation service.

 

Each state government has offered to the entrepreneurs such as vocational training program, skill development practices, free session with attractive stipend and so on. Hence the start-up world is currently focused on entrepreneurs and growth, but no one is talking about people with disabilities becoming entrepreneurs (A.J. Plotner and C. May 2021).

 

The Differently Abled People (DAP) are starting the business for various reasons such as passion, unemployment, loses the last job and so on. The important advantage of entrepreneurship for persons with disabilities is that self-employment increases the self-empowerment of those individuals. At the same time, they have the flexibility to work around their disability status and work-life, which they can tailor around their needs for social and labour market participation to the greatest extent possible for their situation. For people with disabilities, self-employment and entrepreneurship are suggested as an excellent option than seeking a job in outside environment. Employers are more hesitant to hire disabled employees because they require more workplace accommodations. However, if they engage in entrepreneurial activities, they will quickly realise that working at their own pace and in their own suitable working environment is not only empowering but also potentially more rewarding (Wilson Ng 2021). This study helps to understand the PEST analysis such as political, socio-economic factors and technology factors that influencing the Differently abled Entrepreneurs (DAEs) growth and their business (Ricciardi et al., 2021). At finally, this study identifies of most influencing factors of DAEs for their start ups and rank these factors by using Garrett ranking method using statistical tools.

 

METHODOLOGY:

The study is a blend of both descriptive and analytical in nature. It is based on both primary and secondary data. The primary data were collected from the DAEs of the nine southern districts of Tamil Nadu. The DAEs details were collected from District Differently abled people Rehabilitation Centres (DDRC). The secondary data were collected from the books, journals, magazines, reports and records, the published and unpublished M.Phil dissertations and Ph.D, theses and so on.

 

Sample size:

Initially, based on Rao Soft online sample size calculator was used, which showed 349 as the sample size at 5 per cent significant level. Considering the fact to have the sample to be more accurate and to validate it further, additional sample of 79 DAE’s were added which resulted in 428 sample taken for the study.

 

Sample Design:

There are 38 districts in Tamil Nadu. The researcher has chosen the southern districts of Tamil Nadu which consists of nine districts. The total population of DAEs was derived from DDRC. It was seen that there were 3775 DAEs from the selected nine southern districts. Out of the population of 3775 DAEs from the nine districts, 428 samples have been selected using the proportionate random sampling method.

 

The following formula is used to determine the sample size in each district in proportion to the total DAEs.

 

S= (n / N) * s

Where,

S= Sample size,

n= population of within district,

N= Total population size,

s= Identified sample size,

 

Table 1 shows the details of the population and sample size drawn from each district.

 

The sample size of 428 was collected using the simple random sampling method.

Table 1-Details of Population and sample size drawn

S. No

Name of the District

Total Population size considered for the study

Calculation of Sample Size for each districts

Sample Size

1

Thirunelveli

530

=428*(530/3775)

60

2

Madurai

504

=428*(504/3775)

57

3

Dindugal

415

=428*(415/3775)

47

4

Virudhunagar

452

=428*(452/3775)

51

5

Thoothukodi

413

=428*(413/3775)

47

6

Ramanathapuram

298

=428*(298/3775)

34

7

Sivagangai

407

=428*(407/3775)

46

8

Theni

354

=428*(354/3775)

40

9

Kanniyakumari

402

=428*(402/3775)

46

 

Total

3775

 

428

Source: Secondary data collected from DDRC report (2019-20)

 

OBJECTIVE OF THE STUDY:

1.     To study the DAEs start-ups influence.

2.     To assess the factors that affect the entrepreneurship.

3.     The study explores the entrepreneurial characteristics of DAEs.

 

PEST Analysis Model:

The model of the entrepreneurship factors indicates about the PEST analysis. It may be instructive and formative in the growth of aspiring entrepreneurs. These elements influence and dictate the dynamics that a civilization will go through. To better decide on the future and course of their firm, disabled entrepreneurs should understand the socioeconomic variables that are affecting them. However, they must comprehend both external and environmental factors, as well as how their interactions affect their business, in order to have a thorough understanding(S Rajamohan et al., 2019. Age, education, gender, income, labor force participation, family support, and other factors are connected to them. Family environment is the environment that covers all interactions and conditions in relation to the implementation of learning efforts and influence on the interests and behavior of the disabled people. Therefore, with support from their families, these individuals' interest in entrepreneurship is also influenced by their family environment. family interaction, such as learning to cooperate and provide a hand to one another in the home and in the community (E.Saranya Devi and Rajamohan 2019).

 

Table 2 Leading factors of DAEs Socio-economic status

Sl.

No

Personal Background

Particulars

No. of Respondents

In

%

1

Gender

Male

297

69.4

2

Age

35-45

153

35.8

3

Marital Status

Married

402

93.9

4

Educational Qualification

Graduation

220

51.3

5

Income level

20000-30000

180

41.9

6

Business Experience

upto 5 year

240

56.1

7

Family members involved in business

Spouse

280

65.4

8

Generation of Entrepreneurship

First generation entrepreneur

334

78.0

9

 

Employees Working in Business

Less than 5

403

94.2

6 to 10

22

5.1

10

Investment made in Plant and Machinery

Upto Rs 2 Lakhs

338

79.0

12

Received loan from the sector

DDRC

337

78.7

Source: Primary Data

 

Table 1 presents demographic profile of the respondents. The sample comprises of 69.4 percent male and 30.6 percent female respondents and this study represents most of the respondents (in 93.3%) were married. They can have the moral support from their spouse (in 65.4%). The age is between 35-45 years represents 35.8 percent of the respondent is the majority. There are nearly 56.1 percentage of the respondents who had some sort of work experience up to 5 years. Business experience can affect their income level. This study indicates that 41.9 percent of the DAEs receive the monthly income level of Rs 20000 to 30000. From this sources, 78 percent of the DAEs were the first generation of business in their family. This study console that 51.3 percent of the differently abled entrepreneurs are degree holder, 4.7 percent of them are post-graduation and 0.5 percent of them are professional degree qualification. About 79 percent of the DAEs were started the business with the investments upto 2 lakhs for their plant and machinery. Three by fourth of the DAEs are received loan from the District Differently Abled Rehabilitation Center (DDRC). Therefore, these factors that are connected to more influencing of quality of DAEs life. They also affect businesses on a micro-level, but they are a lot more powerful than that – they also affect the entire economy on a macro-level9.

 

Motivation in Entrepreneurship:

It consists of targeted encouragement to carry out entrepreneurial actions, such as the introduction and exploitation of business opportunities. Motivation is a call to action to put in the necessary effort to achieve a variety of goals, including financial success, freedom, and independence. Being independent and not depending on others can inspire someone to start their own business. Because independence makes one self-sufficient in all areas—including money, management, and supervision—as well as a manager of oneself, it can inspire pride. Motivation has a positive impact on one's willingness to engage in entrepreneurship because it can spark enthusiasm or interest in a particular activity, which will lead to creative thinking for profitable business ventures(E. Saranya Devi and S Rajamohan 2020). In this study helps to identify the rank between the eight factors of motivation together with PEST were analyzed by Garret Ranking Method.

 

Factors Encourage to Run Business- Garret Ranking:

The researcher has framed the contemporary model of PEST analysis and these factors influence the DAPs to commence business. The researcher has identified only eight variables such as family members, friends, field experience, product demand, raw material availability, investment of surplus fund, government assistance, labour availability at low cost which encourage to commence business.

 

Political Factors

-Government Assistance

-Trading Policies

-Product demand

-Raw Material

 

Social Factors

-Family

-Parents

-Spouse

-Siblings

-Relatives

-Friends

 

Economics Factors

-Labour Availability at Low costs

 

Technology Development

-Investment of surplus funds

 

Motivational Factors

1. Family members

2. Friends

3. Field Experience

4. Raw materials Availability

5. Surplus fund for Investment

6. Government Assistance

7. Availability of labour at low cost

8. Product Demand

Figure 1- Theoretical model of PEST Analysis

 

In order to assess the factors on priority basis, the researcher has administered the Garrett’s ranking technique. Table 3 indicates the rank provided by DAEs in connection with the factors encourage to run the business.

 

Table 3 shows that the ranks given by the DAE in relation to the factors encouraging to run business. The garret ranking technique has been used in order to identify the most influencing factor-based garret scores. Garrett ranks are computed on the basis of the garret scores. In order to find out the Garret table score, the percentage is calculated by using the below formula:

Percent Position= 100 [ Rij – 0.5]/Nj

 

Rij= Rank given by the ith variable by the jth respondents

Nj= Number of the variable ranked by jth respondents

 

The Table 4 presents the percentage position calculated by using by the formula and Garrett’s table score for the respective percentage position taken from the Garrett’s ranking table. The table shows that the Garrett Scores and Garrett ranks for each factor.


 

Table 3- Factors Encourage to Run Business- Garret Ranking

S. No

Factors

 Ranks

Total

1

2

3

4

5

6

7

8

1

Family Members

279

17

88

10

7

5

12

10

428

2

Friends

19

282

10

82

4

9

12

10

428

3

Field Experience

13

90

266

29

9

7

5

9

428

4

Product Demand

8

5

10

270

118

8

5

4

428

5

Raw materials Availability

83

8

17

18

266

8

2

26

428

6

Surplus fund for Investment

7

10

7

8

12

267

32

85

428

7

Government Assistance

10

10

26

6

5

10

257

104

428

8

Availability of labour at low cost

9

6

4

5

7

114

103

180

428

Source: Primary data

 


Table 4 Factors Encourage to Run Business- Computation of Percentage position

S. No

Calculation

Percentage

Garrett Table Score

1

100(1-0.5)/8

6.14

80

2

100(2-0.5)/8

18.69

69

3

100(3-0.5)/8

31.2

60

4

100(4-0.5)/8

43.75

53

5

100(5-0.5)/8

56.25

47

6

100(6-0.5)/8

69.39

40

7

100(7-0.5)/8

81.25

32

8

100(8-0.5)/8

93.75

20

Source: Primary Data

 

Table 5 portrays the rank assigned by the respondents towards motivational factors to start the business. Based on the garret score value, the researcher has found out that the highest score is awarded to the factor “family members” ranked as first, followed by “friends”. The least score is awarded to the “availability of labour at low cost”.



Table 5: Factors Encourage to Run Business- Garret Score

Factors

Ranks

Total

Rank

1

2

3

4

5

6

7

8

Family Members

22320

1360

7040

800

560

40

960

800

33880

1

Friends

1311

19458

690

5658

276

621

828

690

29532

2

Field Experience

780

5400

15960

1740

540

420

300

540

25680

3

Product Demand

428

265

530

14310

6254

424

265

212

22688

4

Raw materials Availability

3901

376

799

846

12502

376

94

1222

20116

5

Surplus fund for Investment

280

400

280

320

480

10680

1280

3400

17120

6

Government Assistance

320

320

832

192

160

320

8224

3328

13696

7

Availability of labour at low cost

180

120

80

100

140

2280

2060

3600

8560

8

Source: Primary data

 


CONCLUSION:

Entrepreneurship is essential for the development of any economy. Countries which have flourished attribute their rise to the growth of entrepreneurship. In this paper, researcher has used eight attribute that helps to identify that motivating factors affects the business. This attempts must be made to influence the environment in order to make it congenial and favourable to entrepreneurial activities. The most successful entrepreneur is one who not only adjusts to the environment but also modifies the environment to suit his requirements through the direct and indirect influences he can exercise over the system Therefore, governments and people all over the world want to encourage to these people. Family environment has high effect to encourage to these people on the interest in doing entrepreneurship. Hence, Motivation is booster for individual to work hard in order to raise a passion to become entrepreneurs.

 

REFERENCE:

1.      S.K.Mishra, "Beneficial Medical Science Innovation-Study of the Revolutionary Change in the Life of the Disabled Person”, IJLSI, 1 (2), 2019, pp.2581- 9453.

2.      I.M.Leon, I.O.Cifuentes and C.N.Martinez, “Entrepreneurship of people with disabilities in Spain: Socioeconomic aspects Suma De Negocios”, 10(22), 2019, pp.42-50.

3.      S.Csillag, Z. Gyori, and C.Svastics. "Long and winding road? Barriers and supporting factors as perceived by entrepreneurs with disabilities." Journal of Enterprising Communities: People and Places in the Global Economy, 7(4), 2019, pp.121 -138.

4.      A.J.Plotner and C.May, “A comparison of the college experience for students with and without disabilities” University of South Carolina, College of Charleston, USA, 23(1), 2019, pp:57-77.

5.      Wilson Ng, Disabled entrepreneurs, World Encyclopedia of Entrepreneurship, Vol(2), ISBN: 9781839104138, January 2021, PP- 105-111.

6.      Ricciardi, F., Rossignoli, C. and Zardini, A. Grand challenges and entrepreneurship: Emerging issues, research streams, and theoretical landscape. International Entrepreneurship Management Journal 17, (2021), pp: 1673–1705.

7.      Dr S Rajamohan, E. Saranya Devi and A. Sathish, ” Barriers Of Differently Abled Entrepreneurs In Sivaganga Districts: A Factor Analysis, International Journal Of Scientific and Technology Research VOLUME 9- ISSUE 02- FEBRUARY 2020, ISSN 2277-8616, Pp-3990.

8.      E. Saranya Devi, Dr S Rajamohan and S Parthiban, “Supporting Technologies for Differently Able People In Farming Activities”, Journal of Xi'an University of Architecture and Technology, ISSN No : 1006-7930, Volume XII, Issue IV, 2020, pp. 1788-1797.

9.      E. Saranya Devi and Dr S Rajamohan, Differently Abled Entrepreneurs in India – Evolving issues and challenges, TEST Engineering and Management, ISSN-0193- 4120, vol(82), pp:9257-9261.

10.   E. Saranya Devi and S. Rajamohan (2019). An Appraisal of NHFDC’s schemes for differently abled people in India, Zenith International Journal Of Business Economics And Management Research, ISSN 2249- 8826 ZIJBEMR, Vol.9 (10), October (2019), pp. 1-10.

 

 

 

Received on 13.11.2022         Modified on 16.12.2022

Accepted on 07.01.2023      ©AandV Publications All right reserved

Asian Journal of Management. 2023;14(1):71-75.

DOI: 10.52711/2321-5763.2023.00012