Entrepreneurial Motivation in Kerala _Dr.Rajagopala Nair and Mohan P.Philip

Dr.Rajagopala Nair and Mohan P.Philip 
Research Dept. of Commerce
St.Albert’s College, Ernakulam

Legitimacy for entrepreneurship as a career option is very low among the social circles of Kerala, though small entrepreneurship development has become a crucial part of predominant moral code of governance in all countries. Due to low level legitimacy, young people, with entrepreneurial talents opt for other career opportunities or migrate to distant places in search of greener pastures This phenomenon can be verified by observing the performance of entrepreneurs in the industrial front of Kerala. The quality of entrepreneurial stock of a society can be assessed on the basis of the economic growth it has achieved. The role of entrepreneurship in economic development can best be put as “ an economy is the effect for which entrepreneurship is the cause”. Kerala’s statistics on industrial entrepreneurship displays a very interesting picture. The State’s contribution to nations industrial output is 2.19 per cent, but to that of population is 3.43 per cent. In contrast to the national trend, the informal manufacturing sector in Kerala has recorded a relatively high growth in the post liberalization period. The growth of small scale industrial units and employment in this sector was also promising during this period. However, industrial performance in Kerala during this period was not favourable in terms of output growth. Significant growth in employment generation under industrial sector is not represented by corresponding increase in industrial output. Remarkable growth of fixed capital is recorded in Kerala’s industrial sector, but it has not influenced the output growth during the period. Nominal and real wage rates are low in Kerala since 1980s. Man days lost due to industrial disputes and labour militancy registered a declining tendency. Yet, studies on investment proposals reveal that Kerala is a unattractive destination for both domestic and foreign investors. Thus the major hurdle for the State’s industrial backwardness is not increase in cost of production or labour militancy, but poor quality of entrepreneurship.

In this article an attempt was made to examine the factors that motivated Kerala based entrepreneurs to take up entrepreneurship as a career. The motivational variables of the entrepreneurs were put under study. Primary data for the study was collected from 300 entrepreneurs from small scale and medium scale industrial segments. Direct personal interviews are conducted with the selected respondents with the help of a structured questionnaire. The results are given below :

1. Factors that motivated Kerala based Entrepreneurs : To examine the actors that motivated the Entrepreneurs in the State, ten alternative motivating factors were applied on the respondents. Majority of them have chosen multiple factors for their response. The result is given in table 1. As per the table, 86 per cent of the respondents revealed that their desire to work independently has motivated them to start their own industrial ventures. Eighty two per cent of the respondents were of the view that their creative ability will prosper only in an independent environment and hence preferred to have own business enterprise. Fifty two per cent would like to be self employed, hence they became entrepreneurs. Pressure from with in the family has paved the way for the entrepreneurship of forty per cent of the respondents.

Table 1
Factors that motivated small entrepreneurs to take up entrepreneurship as a career

Sl. No.	Motivating factors	No. of respondents	Percentage
1.	To be independent	258	86
2	To be creative	246	82
3	To be self-employed	156	52
4	To use technical knowledge	70	23
5	To use business experience	32	11
6	To use Govt. support	28	9
7	Success story of others	65	22
8	Profit margin	87	29
9	Family orientation	120	40
10	To join elite circle of business men	47	16
	Total	300	100

( Source : Survey data )
Twenty nine per cent of the respondents became entrepreneurs because they expect good profit margin from the enterprise. Twenty three per cent of the respondents would like to apply their technical knowhow, hence they stated an enterprise of their own.

1. Training status of the entrepreneurs : Small entrepreneurs are usually exposed to two types of training programmes – prior training programmes and on-the job training. It is interesting to note from table 2 that 81 per cent of the entrepreneurs have not undergone any training programme prior to starting their ventures. Nineteen per cent of entrepreneur have undergone training programme before venturing into the business activities. Twenty seven per cent among start up entrepreneurs have undergone prior training programmes. Start up are those which are in existence for less than three years. Among the entrepreneurs who are in active business for more than 4 years but less than 8 years ( growing ), only 27 per cent have undergone training programmes. Fifteen per cent of the entrepreneurs belonging to mature enterprises ( in existence for more than 9 years but less than 15 years.) have under gone training programmes. Eleven per cent of the respondents who are in business for more than 16 years revealed that they obtained training before they start their enterprises.

Table 2
Training status of the respondents

Sl. No.	Growth phase	Had prior training	%	No prior training	%	Total
1	Start up ( less than 3 years )	24	27	64	73	88
2	Growing ( 4 – 8 years)	14	23	48	77	62
3	Mature ( 9 – 15 years )	10	15	58	85	68
4	Reconstruction ( More than 16 years )	9	11	73	89	82
	Total	57	19	243	81	300

( Source : Survey data )

Another important finding of the survey is that , a formal training is not essential for an entrepreneur before stating an enterprise. Eighty two per cent of the respondents are of the opinion that on-job-job training is enough for a successful entrepreneurial career. It may be observed that a entrepreneur lives in a highly competitive world which is always subjected to radical changes happening in a society such as advancement of technology, changes in fashion, preferences, living conditions, political and economic changes and so on. In such situations, an entrepreneur learns and imbibes many things by his own experience and insight. He can not go back to educational institutions to learn and adopt to situations. Instead, he/she acquires new strategies out of his own enthusiasm and innovation skills.

1. Beginning of Entrepreneur’s Motivation : As revealed in table 3, twenty six per cent of the respondents had a strong motivation to be an entrepreneur since their childhood. Seventy four per cent of the entrepreneurs report that their motivation to be an entrepreneur begun just a few years before they decided to start their present venture.

Table 3
Desire to be an entrepreneur

Sl. No.	Growth phase	Since Childhood	%	Past few years	%	Total
1	Start up ( less than 3 years )	19	22	69	78	88
2	Growing ( 4 – 8 years)	15	24	43	76	62
3	Mature ( 9 – 15 years )	19	28	49	72	69
4	Reconstruction ( More than 16 years )	26	32	56	68	82
	Total	79	26	221	74	300

( Source : Survey data )

It could be understood from table 3 that the desire to become an entrepreneur can arise at any time during his/her life. A well planned and well oriented series of entrepreneurship Development programme ( EDP ) will motivate and lure many able and talented people to become entrepreneurs. Hence, it is up to the State Administration to take up ED Prorammes at various levels. We may conclude“Entrepreneurs are made not born”.