CHAPTER-V

PERFORMANCE EVALUATION

Ambitions and aspirations motivate, activalc and broadcn oncc own quality o f

life and ambitions direct the intentions and rnitiativc of a pcrujn. Iksirc la get

gainfully occupied, desire to gain social prcsrigc, to continuc family husincsr otc

motivate a person to become entrepreneur. Entrcprcncurship is an cconomic aclivity

which emerges and functions in a sacio - cultural, political, tcchnolugical and

regulatory setting. 11 could be a pcrson's frcc choice of activity, occupation of social

group, profession etc. Womcn entrcprcncurs facc many institu~icmel and anitudinal

barriers while staning and running the en~crprisc ~;ucceasfully. It is R challcnginy &k

and an ultimate test of ability to run an enterprise profitably, Against this backdrop, an

attempt i s made in this chapter to evaluatc thc performance of cntcrprilserlactivilics

undertaken for this study. 11 givcs a clear picture about chc pcrG~rmancc o f the

enterprise in terms of sources of finance, invcstmcnt pattern, cmployment, c q c i t y

utilization, production, marketing, profits dc.

Thc samplc c n w n e w s havc obtained finance hwn d i & m saurocs for

invcrtment in their wits /activities. In the use of mnnuhcruring sector, 44.44 per

cent of mtrepmKurs b v c invcsted thcir own fwds and obtaincd loans tiwn banks and financial institutions rolbwcd by 30.86 per ccnl who invested own funds and

borrowings from fricnds and rclativcs mund 14.81 per cent invested own funds and

the, rcst constituting 9.88 pcr ccnL uscd govcmmcnt r id (see Tabk 5.1). Of thc

entrepreneurs of tradc, none of them had cxclusivcly invcstd own funds nr m i d

funds from government. More than 94 per ccnt of entrepreneurs had invested own us

well as borrow4 funds from fricnds and relatives and thc remaining 5.56 per ccnl

obuincd funds from own sourccs as well as loans frum banks and financial

institutions. Of the cntnprcneurs under xrvicc sector, 64.65 per ccnt obfaincd funds

from thcir own sources as well as borrowings from fricnds and rclativrs followed by

21.21 per ccnt who invcstcd own funds and 10.10 pcr ccnt who utiliscd govcrnmcnt

aid. 7hc remaining 4.04 per ccnt uscd both own funds and loans fmm hanks und

financinl institutions. Whcn all the rcspclndcnts arc considcrcd togdhcr, the highcs~

56.94 per ccnt havc both thc invested own funds and borrowings from friends tlnd

Table 5.1: Source of Finance for Sample Unitn

from friends and --..-..-.-

and financial institutions -. .-

Govcrament r id

: 6.aNS

Note : Figured in hrocko!~ ind~cote ih~~pcrccn~ug~ to ~ o ~ u l

NS : Nor Silqnijiconr or S prr cmr Lvel

,Ibwce : sample survey

relatives, 19.44 per ccnt innslcd rheir own funds and l ~ n s fm banks and financial

institutions, 1528 per crat awn funds and ItK. remaining 9.31 pcr m t urilised

government aid. It may be concluded that the pnwnincnr wurcc of finance f w the

women entrepreneurs is their own con1ribu4nn and borrowings fmm Friends and

relatives.

Segrcgatian of nsponoknt enwprcncurs on thc pcrocnlagc of own funds to

total funds is given in Table 5.2. Among the entrtprcneurs in manufecturing, thc

proportion of own capital to total caplral was 75 pcr ccnt and ahovc in the highcst

43.21 per cent of cntreprrneurs followed by 50 -75 pcr cent in 28.40 pcr cent of

enwprmcurs. 25-50 per cent in 24.69 per cent of respondents and lcss than 25 per

cent in 3.70 per cent of cnlrcprcncurs. In the cacc of trade, thc shut of own capital to

Iota1 capital was 75 per cent and above in 44.44 pcr cent of cntnpxncurs, 50-75 pet

ccnt in 36.3 1 per ccnt of rcspndcnts and lcss than 25 pcr cent in 19.44 per ant of

entrepreneurs. There was no entrepreneur whosc own invcs1ment to total fund was in

the range o f 25-50 per cent. In the case or scrvice .sector, the proportion ofwumcn's

own fund to total investment was 75 per cent and more in 54.55 per a n t of

respondents followed by 50 - 75 percent in 27.27 pcr cent of cntrcprencurs, 25 - 50

per cent in 13.13 per cent of respondcn~s and up to 25 pcrccnl in the rest of the

cnlrcprcncurs. When all b rcspondcnts an considcrtd together. the share of own

investment to total inverilmcnt was 75 per cent and above in 48.6lpr ccnt of

entrepreneurs, 50 - 75 per ccnt in 29.1 7 p r ccnt of snmplcs, 25 .- SO per cmt in 15,28

per cent al' nspondcnts and lcss than 25 p r ccnt in 6.94 per ccnt of cntrcprencurs.

Tabk 5 3 : DbMbrtlon of Wtrrpwmn as to Rektlw Sham of* hrd to

Total Faad

iVorcln F~gurcr m hrurkrrs mdicurr the pcrccnrugr rorul

,VS Nor Dp!/icunr ur 5 per cenr le\lc.l

Sourc-r Sample sun8ey

It my be concluded that own funds ucrc more than 75 p r ccnt in thc total funds in

nearly 50 pcr ccnt ofcntrcprencurs. It mcans that thc borrowed funds are ncgligiblc,

2. Capital investment

'I'he respondents a n classified on l c basis of' capital invcstcd and thc details

are presented in 'Tahlc 5.3. In thc case o f munufttcturing, 40.74 pr cent ofnrpondcnts

have invcstcd less than Rs. 2 l akk as capikl followed hy 22.22 p r ccnt of'samplc

rcspondcnts who invcsted Hs. 20 lnkhs and ahovc, 14.81 per ccnt ofcntrcprcneura Rs,

2-5 lakhs , 12.35 p r cent o f womcn with an invcstmcnt of Us. 10.20 lakhs and the

remaining 9.88 p r ccnt, Us. 5-10 lakhs. Among Ihc cntnprencurs in t d c , 41.67 per

cent have invcskd capital in the range of Us. 2-5 lakhs , 38.89 per cent in m g e of

Rs. 5-10 lakhs, 1 l .I l pcr ccnt in thc ordcr of Rs. 20 lakhs and above 5.56 per cent in

the quantum of ks. 10-20 lakhs and 2.78 pcr ccnt &low Rs. 2 lakhr. Of the

cntrcprcneurs in servicc, 55.56 per cent invcsdcd less than Rs. 2 lakhs as crpiul

followed by 17.1 7 per ccnt who havc invcskd in thc rangc of Ks. 5-10 lokhs, 16.16

per cent who invcstcd bctwcen Rs. 2 and 5 1akh.r. 8.08 per ccnr in the frequency ofR8,

10-20 lakhs and thc remaining 3.03 pet cent i n v w d Rs.20 lekhs a mom. A similar

Tabk 5.3: Srl(rrgrtioo of Rapomdab on the basb of Imvcstlrut of erpiml

trend can be notcd when all the cnlrcprcncurs arc uiken as n whole. A littlc ovcr 41

per ccnl o f rcspondcnts havc invcslcd capital in thc ordcr o f up to Us. 2 lakhs. 19.91

pcr ccnt in the rangc o f Us. 2 - S lakhs, IR.16 per ccnl ~CIWK~ Us. 5 and l a lakhs,

9.26 per ccnt in thc rang o f Us. 10 - 20 lakhs and ~ h c remaining 11.57 per ccnt

investcd of Rs. 20 lakhs or more. 11 may he concluded that, in manufituring and

scrvicc, the cntrcprencurs w~ th a capial of lcss than Us. 2 lakhs cach rank l int. While

cntrcprcncurs with capital invcstmcnt in thc rnnyc o f Us. 2 - 5 lakhr cmupy the first

plow under trade. Furthcr, thc highcst proportion of respondent havc invcntcd capital

to tune o f less than Us. 2 lakhs providcd all the cntrcprcncurs arc cr)nsidcrcd logcther.

This is a typical capital size cxcept in thc case of trade.

3. Labour force

On the basis o f cmploymcnt of labour, samplc cnwprcncum arc classifid i n t

diffcnnt catcgorics and thc results are reported in Tablc 5.4. In Lhc c n s ~ of

manufacturing, there are lcss than 5 workcn in 3Q.R per cent of unila rolbwcd by 5-

10 pmons in 23.46 per cent o f unit% 20 or morc workm in 18.52 per cent af

cntcrprises, 10- 15 l a h u m in 1 7.28 per c a t of enterprises and 15-20 workers in the

mnaining units. With regard to wading, in Uu cax of 91.67 per cmt of rcspandants,

the number labourers an less than 5. In the rest of Uu units 5-10 workvs an employed. In none o f the units, the labourn arc in the range of 10-15, 15-20 and 20

or more. In the casc of service scctor, then an less than 5 women in 83.84 per cent

enterprises, 5 - I0 labounn in 10.10 per cent of entrepreneurs 10- 15 labourers in

4.40 per cent of enterprises and 20 or morc in the nst of the cases. in none of the

units, the labourers are in the range of 15 - 20. When all the respondents arc

considered together, there an less than 5 worken in 65.28 per ccnt of units followed

Tablc 5.4 : Classification of Respondents on tbc bwls of Number of Labouren

Employed --- Number of worken

Source . Sample survry

by 5-10 labourers in 14.81 per ccnt units. 10-15 pcrmns in 8.33 pcr ccnt of units, 20

or more workers in 7.85 per cent of units and 15-20 perwnr in 3.70 per cent of

enterprises. It may be concluded that in the majority of enterprises the numbcr of

workers are less than five. The typical si7s is low due to the fact thcsc enterprises a n

small in size in teims of capital invested and labour employed.

The number of worken employed in the sample units may be classified into

own and hired and these are furnished in Tablc. 5.5. 'lhc fomcr includes thc mcmbcrs

drawn from the household ofthe women entrcprcneur. ' nc lanct are drawn from

Source: Sotnpk srrrvry

Fig. 2.1

Table5.5: Use of Ownnnd Hircd Lnhour ir Sample Uaifs

llse of Own a1111 Il ircd 1,rbour 900

800 700

h

g 600 P a 500 II I Own c;r 400

d 300 I Hired Z

200

100

0 M!nufaclurlng lradc \ c r v ~ c c

Type of aefivity

-

Own /hired

Own

Hired

Total

f : 21.74"

T o l t l

382

(25.50)

11 16

(74.50)

149LI

(100)

Type olnclirbity

Service

169

(45.80)

200

(54.20)

369

(IW))

Rlmuhcturing

151

(15.33)

834

(84.67)

985

(100)

' Trrtde

8?

(43.06)

82

(56.94)

144

(100)

outside the family. Of the total number o f employees in the manufscturing sector,

84.67 per cent an hired and the resl own. In the case o f trade, the former and the lam constitute 56.94 per mnr and 43.03 per cent nspcctively. In the xrvicc sector, h i d

constitute 54.2 per ccnt while own art 45.80 per cent. When all the threc categories of

enterprises an put together, the hired labour accounE for 74.50 per cent vis4-vis own

labour which is 25.50 per cent, i t may i n f c d that the hind labnur farce dominate

the employment sccnc in the sample units. The proportion o family members in the

total, workforce is relatively low in manufacturing whcn compared to trade and

service. This may be duc to the fact that the family members arc regarded unsuitable

for such activity.

The results obtained from test reveal that [here is a oignilicant association

betwcen type of activity and type o f labour. Thc cornspunding 2 value is givcn by

21.74which is highly significant at I pcr cent Icvel.

The skill level of labour force in the sample units is furnished in Tablc 5.6. In

manufacturing, skilled workcrs account for 55.74 per ccnt fi~llowcd by wmi-skilted

(29.64 %) and un-skillcd (14.62%). Among thc labourers in trade, the highest

proportion arc semi-skilled (46.53%) followed by unskillcd (28.47%) and skilled

(25%). in respect of service sector, 46.34 per ccnt arc skilled, 311.75 per ccnt semi-

Table 5.6: Skill Intensity Among the Workforce in Sample Unltu

Skill-Intensity ~ a n k c h r i n ~ Tndc

Skilled - Semi skilled

Unskilled

Total

2: 4 66NS

Nore Figurers rn hrackers mdrcurt I / I ~ percenQe ro t o fd

NS Nor S~gnrJcanr ar S per cent level

Source Sample survey

skilled and the remaining 14.91 per ccnt, unskilled. Whcn dl the workers arc

considered togcthcr, the skillcd account far 50.47 per cent, semi-skilled 33.5 1 per cent

and unskilled 16.02 per cent. ft may bc concludd that then is a skill inansity among

the workers in the sample units leaving trade. For tradc skilled workers are not narrdcd

as much as in the case of munufacturing and service. The manufacturing activities

demand skilled labowers as the operations arc such. Hence. the skill component is

high in it. Similar is the case with service sector. Skill is rcquircd to nndcr scrvicc.

It is observed from the application of 2 test that them i s no significant

association between type of activity and skill inlcnsity of the work for^. The

corresponding f value is not significant at 5 per cent Icvcl.

The sex ratio among the workcrs in [hc sample units is furnished in 'liable 6.7,

A glance at the Table reveals that 65.62 per ccnt of workers atc men and thc rcsl,

women. In the case of manufacturing scctor, 78.48 per ccnt arc male and the

rcmaining 21.52 per ccnt female. A contrary situation pwvails in tradc and services.

Female workers account for 59.03 per cent in tradc and 59.08 pcr cent in scrvice. Thc

Tsblr 17. SEX Ratio nmong Worklurcr in rht sample ldnil~

Source : Sunrlrlr rrrrvcy

Source

Male

F~onlr

Totnl

Scx Ratio :\moll: \Vorkforcc 900

800

V1 700

L

d" 600 e 0 500 5

Q- 400 0

; 300 1

200 I

I 10 o II fcnlalei

0 hlrnuhciurin~ T q d c Scr\rr

Typc of acl ivi ty

2 :34.18** Note . Fiyrcs in bwhu hdica~e rltr prmtIlage lo tola1

Totnl

983

(65.62)

515

(34.31)

1498

(loo)

Typc al pt l i \ i t y

hlanulutturing

773

(78.48)

212

(21.52)

985

(100)

Trutle

59

(10.97)

85

(59.01)

141

(100)

Srrlin

IS1

(40.92)

218

(59.01)

369

(100)

rest arc men. It may be concluded that, ns expected, on onnvhclming number o f

worlcen arc men in manufacturing and, therefo* form more than t h m fourrhs. The

reason is that women may not undcrrake difficult activities in the manufacturing

process. In other words, women arc unsuitable for certain opmrtions in the

manufacturing cycle. The physique o f women may not permit them to undertake

certain activities in the process of manufacture. In mdc and service, women w d c r s

account for a lion's shan in the tour1 labour fom. 'The c u m include: m e o f the

activities a n part-time; women can u x their leisure time cffcctivcly; their physique is

suited to perform easy and simple oprations.

The result obtained f m X' tcst rcvcl that thcn is a significant association

between type o f activity and sex ratio among workforce. l'hc cnrrespt~nding X' value

is given by 34.18 which is highly significant at I per ccnt level.

The sourcewisc labourforce drawn by sample respondents is givcn in 'l'ablc

5.8 A look at the Table reveals that, o f thc total labourforce, 61.88 per cent has bccn

hircd locally, 3 1.64 per ccnt has bccn hired from within the shte and thc remaining

6 48 p r cent fmm within the country. Nonc ol'lhc workers is dnwn frorn outside the

country. In the case o f manufacturing, workers hircd from Wydcrahad city acctlunt for

53.10 per cent, thox from within the statc 38.68 p r cent and the remaining 8.22 pcr

cent from within the country. With regard to trade, 71.53 per cent of' labour hail fmm

thc Ilydcrabad city and the remaining 28.47 per cent from within thc state. Nonc of

thc labourers belong to outside the statc. Of thc labour in rervice sector, 81.53 per

ccnt is local, 14.09 pcr cent o f workcrs arc hired from within A.P and the balance 4.34

Table 5.8 : Source of Lboutlorre for the Sample Unih

Sourcs of 1.ahour

I local

M Wi1lli11 A.1'

~IIIIU~~,C!II~III~ I r l IL \ r r rn t , D Willlin

Type of aclivity I country

per cent belong to India, i t may be concluded that Ihe local labour dominate the

employment smw in all thc sectors without any exception. Furlhu, nonc o f thc

workers is drawn from outside the couny. O f thc activities, the workers drawn from

Hydcrabad an more in service and mdc as compared to manufacturing. The reason is

that the manufacturing activities demand mon skilled labour and men. Hcnct, they

have cmploy more labourers fmm outsidc Hyderabad City. Thcrcforc, the

employment o f more non-locals by manufacturing units, as comparcd to service and

trading units is justifiable.

4. Raw mrterlals

Thc sample nspondcnts havc brought raw matcrials fn,m dcfmnt

sources~placcs for the manufacture o f gads and rcndcring scrviccs as rcpcxlcd in

Table 5.9. O f thc total nspondents, the highest 58.80 pcr ccnt havc acquircd raw

materials from within thc state followcd by 26.39 per cc~lt who procured thcm locally

and h e remaining 3.70 per cent from outsidc India. Out of the samplc units in

manufacturing scctor, 54.32 per ccnt purchaxd raw matcrials within Al' followed by

19.75 per cent who purchased them locally. 16.05 per ccnt from within thc country

and the remaining 9.88 per cent from outside India. Among the respondents in trade,

nonc had obtained raw malerials cithcr locally or outsidc thc couny. Thmfc~unhs of

respondents havc acquired raw materials from within AP and thc rcsl onc fourth

within the country. In thc cex or service sector, thc highcsl 56.57 per ccnl havc

acquircd raw materials from A.P, 41.41 pcr cent locally and the Remaining 4.34 per

cent from the couny. It may be cancluded that marc than half of thc rcspnndcnh

have obtained raw materials from within the state. Thc units undcr trndc have not

utiliecd local raw matcrials bccausc the required matcrials might not bc available in

the Hyderabad City. I h e manufacturing units havc u x d less than 20 per ccnl o f

matcrials from local sources duc to thc fact that thcy arc not fully availablc in the

Hydcrabad City. Some of b inputs rcquircd arc agricultural bawd and, hcncc,

Hydcrabad could not provide such matcrials. Hence, thcrc is an urgcnt nccd 10 obtain

Table5.9: Source ofAcquisilioa of Raw hlnteri~~is by Rcspondcnh

Source : Sat~lplrsenqJ

Source of Acquisirion o T R a ~ M i ~ t t ~ i ; l l ~

hO

>(I w

.Z 40 I

C 3 30 I Monulhc~~~rit~p ,. 20

I Trsdc 10

0 0 Service lacill Wtlh~nAi' \ I I I ~ I I I Ou~<tdr.

counlry h ~ d ~ a

Type of cativity

w

from swnxs other thw local. A similar picture exists in service sector. Units under

this category haw utilized a higher propjrtion of local raw materials as c~nparcd to

manufacturing units.

The respondents h v e transpolted mw materials thmugh difleemn! m& from

the source of production/availabilir), to consumption centeriplace of the unit. A g l w ~

at the Table 5.10 reveals that out of the total nspondcncs 15.90 pcr cent of

respondents have obteined raw materials fmm the saurce of production through h i d

vehicles and the remaining 24.10 per cent used their own vchiclcs, They have used

lorries, trucks, buses, cycles e!c for obtaining raw materials from the source of origin.

In the case of trade, 50 per cent have obtained through own vehicles and the

remaining SO per cent by paying frcight charges to translxlrl industry. With regard to

manufacturing, 81 .SO per cent paid hire charges for bringing raw materials fioln the

source of availability to consumption cenlrc tlnd the remaining 18.50 per cent

employed own vchiclcs. Mom or less a similar trend cmcrgcs in the scrvicc %lor, It

may be said that three fourths of entrepreneurs have oblained raw mntcrials tlrmugh

Table 5.10. ModeorObtaining Raw Malrriab by Rapandents

Nore : Fip11rtr.v in bracks inlicurr rlt~~p~~r?a~rur#c rrl rr~rol

NS : No~sIpfimr or Sprr wrlr k.~rjl

So~rrcs: S ~ I I J I ~ I ~ ~ ~ r tmq8

Fif.2.5

hlode of Obtnining Raw Materials

80

70

V1 60

C 50 I=

3 4 0 mosll

c. 0 30 I 6 20 B llirc 1

x, 0

Manuhcturing Tndc Scrv~cc

Type of activity

hind vchicks and , thcrcforc, paid hire charges based on the meam and mode of

bansport engaged by chon. Thc remaining have employed their awn vehicles for

bringing the raw materials hwn the p l w of wigin.

It is abscrvcd fiwn ~hc application of 2 test that there is no s i g n i f i a

association between type of activity and made o f obtaining mw materials. The

camsponding $ value is not significant at 5 pcr cent level.

5. Product mix

The respondents havc manufactuml dilTcrcnt kinds of pmducts / rendered

scrvicn as the case may be. Thc product line /mix is shown in Tahlc 5.1 1. Of the

total nspondcnts, 63.89 per ccnt havc produced final products, followd by 20.83 per

cent intermediate products, 13.43 pcr cent intcrmcdiatclfinal pnrducts and the

rcmaining 4.94 per ccnt input pmccsscd nw materials. In the case ofmmufacturing

Table 5.1 1: Nature of Producta Manufactnred by Rcspondcnts

Input processed raw 4 materials I (4.941

~ L A i a t c p r d u c t ~ - - ] - ~ - ~ - ~ ~ ~ - 2 5 . 9 3 ~ - --G!?x_. i.1 L O ! Final products --".@:?x-". 2!*1-"" E!L ."@3,89 lntermfdiatel final

Total

Nore Rgurers m hrarkers 1ndic111e rht prrcenrap lo (oral

Source: Sampk survey

sector, thcr haveformed 54.32 per ccnt, 25.93 pcr cent, 14.81 pcr ccnt and 4,94 per

cent sequentially. Among the rcspondcnts in tradc, 94.44 per cent produced final

products and the remaining 5.56 per cent intcrmcdiar products. None had produd

input processed raw materials and intermcdiatdfinal produc~. In rcspcct ol scrvicc

sector, 60.61 pcr cent manufactured final products followed by 22.22 per ccnt who

manufactured intermediate products and the balance 17.17 per cent, intenncdiarcl

final products. '~~ICSC respondents have not pmduced input proc~sscd raw materials. It

may be inferred hat the majority o f mpondcnts have produced Final products

/services as the cax may h. Of the thra catcgorics of rcspmdcnts thc highest 94.44

per cent in trade pnxlucad final pducts. The nasons an: not far to scek.

The product lindmix u n d d e n by sample nspondents is pmvided in Table

5.12. A glance at the Tahle shaws that, of the tolal respondents, 64.32 pcr cent of

nspondcnts have produced multiple products 23.24 per ccnt singlc product and the

remaining 12.43 per ccnt bath. Ofthe respondents in manufacturing xctor, 72.R4 per

cent have manufactured multiple products, 14.81 p r cent both multiple and single

products and the remaining 12.35 per ccnt single pmduct. None ufthc sample units in

trade have undertaken the sale of both single and mulliple p d u c ~ . Ihc mulriplc

product traders account for 61.1 1 per ccnt and thc halance 38.89 pcr a n t a n singlc

product sellers. In the case of scrvicc scctor. 55.88 per ccnt have undcnakcn the

manufacture of multiple products. 27.94 per cent single pmduct and the rest 6.18

Tabk5.12: Details olPmduct Mix Vndrrtalicn by Respoadcn~s

Nure: Fiprrers in hruc~h~r.~ inrli<"it~t, rhep~~rccnrug~' rii tofa1 w.$i . gnflca~rl ; of orlr per cunl Irwl

I Manufac~uring l'mdu Scrviec I I

Type of aclivity L. ----- . -

per cent both. I t may be said that the majority of cntrrpnmvrs undcrtodc the

manufactun/rtndcring of multiple products/ services.

In this xction, an attcmpt is made to study sales forecasting , branding,

channcls of distribution, promotion , market autlcts, mode of sales, slaragc etc. O f the

total respondents, 45.40 per ccnt forccast sales bforc producing 1 rendering of gads

and 'services (see Table 5.13). ' be remaining 54.60 per sent of cntnprcncurs do nol

forecast sales. In the case of manufac~uring sector. 38.30 per ccnr undertook sales

forecasting while the remaining 61.70 per cent do no1 fi,reras~ sales bcforc pducing

Table 5.13 : Practice of Saks Forecasting in Samplc Units

%les Furmasting Manufacturing -

Yes 3 1

--- (38.30) ----- No

50 (6 1.70) 1- Total 8 1

36 99 216

I- (100) $: 0 . 6 6 ~

Nulv Rgurer~ m hruckers rndicu~r lh~~per~'m1cr~e lo lolu/

N.Y Nor s~g~rrjicunr or 5pvr crnr I~*i*t4

Soltrcv .Yampic .survtjl

goods. In the case of trade, the majority (6 1.10%) of the respondents forccasl salm

and the rest did not do it. With regard to service %tar, 45.50 per cent forecast sales

while the remaining 54.50 per ccnt did not adopt it. I t may bc concluded that the

majority of the respondents in manufacturing and service mto r do not farecas~ sabs.

A converse situation prevails in the cax of trade. In his context, it is surprising to

note that in manufacturing only 38.30 per cent farccast sales bfore undemking

production of goods. The rtasan may bc that thcrc is no con$waint in demand. In other

words, thex units sell what ever quantity they produce.

It is observed from ?he application o f $ tw that there is no significant

association between type o f ectivity and saks forecasting. The corresponding 2 value

is not significant at 5 per cent level.

Generally, Products and scrviccs arc manufactured and sold under diffcrcnt

brand names. Hence, an ancmpt is madc hen to anrlyse them. The details o f selling

o f goods and services in brand names is provided in TahleS.14. In the case of

manufacturing, 7 1.60 per cent o f rcspandents sold goods without my brtind name and

the rcsC with a brand. name. With regard to trtrdc, the former and the laner constitute

Table 5.14: Branding of Products by respoadcnts

------ --"

Branding -- ---- - -----

Yes (J8.40) ,-(1389) J17.13

No 58 ( 8 6 a (90.91) ,-Q2387 (71 .byo_) -- --

Total 8 1 36 99 216 (1002- (100) --'

y-iJ2 N" .-

Noie I.iRvres m hrockots rtrdrcore thc percrniuxt* lo l o ~ ~ /

NS Nor sgnrjicutir ur 5 per cent kvc,l

Sosrce Sumplt survey

86.1 1 per cent and 13.89 per ccnt. In respect o f scrvicc, 9.09 per ccnt rcndcrcd servicc

with a hrand namc and thc rest, without a brand namc. if all the samplc unih arc laken

as a wholc, brands exists for 17.13 per ccnt of rcsptmdcnts and the nmaining 82.1 3

per ccnt sell without any hrand namc. It may be concluded that morl of Ihc

respondents sold goods and rcndcrcd services without brand names. Thc units arc ncH

bothcrcd about brand imayc, brand loyalty ctc.

It is observed from l c application of X' test that there is no rignificanl

association between type o f activity and branding of product. Ihe comvponding $ value is not significant at 5 pcr cent level.

The samplc units distribute producks or rendcr xrviccr cither directly or

indirectly. These arc prcsentcd in Table 5.1 5. Mort than 80 per ccnt o f nspondcnts in

manufacturing scctor sell their goods d i d y without Ihe involwmcnt o f middlemen,

16.05 p r cent through agents and 2.47 per ccnt thmugh whoksalen. None of the

rrspondenls sell gaods through mtaikrs. In the case of uadt, of the total nspomlents,

36.1 1 per cent scll directly, 20 per cent distribute gods through agents, 2222 per

cent through wholesalers and 16.67 per cent with the help of retailers. With regard to

service, 65.66 per cent st11 their goods directly without involving middlemen while

distributing goods. Of the channels uscd undcr indirect marketing. 30.30 pcr cent

Tablc5.15: Channel of Distribution of Productd Scrvkes

Direct

Wbolcsalcrs

Retailers

Total

X2 : 3.66h5

Nr~te figures m hruckets mdlrutt tltc pcrccnfaga ro total

NS Not stpr/icunt u/ 5 per crnt level

Source . Somple rurvuv

involve rcfailcrs and 4.40 per cent agents in the physical distribution of serviccr. Nonc

of the respondents undcr this scctor $kc the help or wholesalers. Whcn a11 the

respondents are considered togcthcr , 66.67 pcr ccnt scll thcir products through direct

marketing mcthads while the rest through indimting markcling mdhodr. In the

indirect marketing of goodslscrviccs. 16.67 per ccnt usc thc ~rv ices of rctailm. 12.04

per cent, agents and the remaining 4.63 p r cent, wholesalers. It may bc concluded

that the majority of respondents market thc gooddservices thmuyh dinct marketing

methods. This is possible duc to the fact that their hinterland may bc n m and tht

customers might be limited.

For sales pmotion, respondents use diffccent instruments of sdvcrtisemenl

as given in Table 5.16. Under manufacturing scctar. 6'1.11 per cent employed

pamphlcts and thc remaining 38.89 per wnt, n c w papers, for pmmating sics, With

regard to trade, the former and thc latter constitute 40 per cent and 60 per ccnl

respectively. In the case of service, 67.74 per cenl u d pamphlets while the

remaining 32.26 per cent, news papers, for sales promotion. When all the samples art

Table 5.16: Instrument used for Advtrliserntnt of Products

Pamphlets I I 4 .

(61.11)

News Papers 7

(38.89)

Total 18 1 0

(1 00) 2 : 0.29 NS

N o ~ e : Figures in hruckrrs indicure rhe pert-rrtfugr fo lo101

NS : Not signijiconl 015 per rcttl I t w l

Source : Sample survey

taken as a whole, 63.33 per cent used pamphlets and the rcmuining 36.37 pcr cmt,

ncws papers, for sales promotion of goods and services. It may be said that, o f thc

instruments o f advertising, majority of the respondents have used pamphlc6 Ibr sale6

promotion in prcfercncc to news papers. Ib is is so because pamphlcts arc cast

effective when comparcd to news papcrs. This is in tunc with thcir s i x o f operations

and volume o f sales.

It is observed from thc application o f 2 test that here is no signififant

asociation between type of activity and inatrumcnt used for ndvcrtisemcn~. Thc

corresponding 2. value is not significant at 5 per cent lcvcl.

The participation of rcspondcnls in cxhibitiondtradc fairs is shown in Table

5.17. In the cax of manufacturing, 44.40 per cent o f n y x ~ d c n l s have pariicipced in

exhibitions 1 tradc fairs to promo& sales for thcir pmducts and the remaining 55.60

Table 5.17: Partidpation of mpoadenb ir Erhlbitioll Trade Fain

Nore . Figures in hruckvrs rndicurc /he pcvccnru~c ro m r ~ l

' : Signijican! a / 5 ptr ccnr level

per cent did not involve thcmselvcs in thesc. In thc casc of wudc, none of thc

entreprcneun had participated in any trade fairiexhibition. In thc casc of scrvicc. 4 per

cent o f entrepreneurs havc participated in exhibitionshradc fain and the rcst 96 per

ccnt do not. On an overall basis, i t may be said that 11.50 pcr ccnt liavc paniciptcd in

exhibitiondtradc fairs to promote sales. Whilc the rcmaining 81.50 per ccnt did nol

involve thcmsclvcs in trade fairs/cxhibitions. I t may hc sunimcd up that the

participation in trade fairs/cxhibitions is insignilicant. The rcspondcnts might havc

fclt that there is no necd to bc involved in such acts of sales promotion Tor morkeling

of industrial goods. But it is a must.

The sample rcspandents scll their products/ scrvices in ~ h c market. I h e

market may be spread ovcr bctwccn production ccnvr and consumption ccntcr. 'Thcsc

are depicted in Table 5.18. O f the respondents under manufacturing, 32.10 pcr cent

sell products locally, 35.80 per ccnt within the scalc. 22.22 per crnt within thc country

and outside the state and the rcst 9.88 per cent in other countries. With rcgard 0

trade, 61.12 per cent scll within the llyderabad city, 19.44 per cent cuch within the

state and, within the country. In the cavc of service *tor, 78.79 per ccnt mndcr

Tabk 5.18: Market Omdcts for Prodm of Rcrpomdatm

Source , Sample sume,v

services locally and thc rcmnining 21.21 pcr ccnt within the m t ~ , If all the

respondents arc considered together, 58.33 pcr ccnt scll locally, 26.39 per ccnl with

the statc, 11.57 per ccnt within the country and the rcst 3.70 per ccnt abraad. I t muy

k concluded that, among the rcspondcnts lnorc than 50 per ccnt scll pmducts m

render services locally. 7hc salcs outside the country an: almost ncgligiblc.

Thc method o f salcs adopted by rcspnndcnts is pmvidcd in Table 5.19.11 can

be observed that, out o f the rcrpondents in trading, 25.92 per ccnt scll g d s on w h

,6.3 per cent on crcdit and thc highest 67.90 per ccnt on both ash and crcdit basis. In

the case of trade, 27.80 pcr ccnt ~ l l gcnxls on cash and the rcst 72.22 pcr ccnt on cash

cum credit basis. It may be noted that none o f ~ h c tradcrs cfl'cctcd sales thmugh credit

only. With rcgard to service sector, 55.60 per cent rcndcr scrvices cm crrsh, 7.07 p r

cent on crcdit and the rcst 37.37 pcr cent on cash-cu-crcdi~ buis. Whcn all the

respondents arc taken as a wholc 54.63 per cent scll goods on cash cum crcdit barit,

Nole : FIAVI~PJ ill bmcke18 hdicure r l ~ c / w ~ t ~ ! t u g t * fo rural

NS Norrig~iiljcanfur Spr ccs~ krl

S O I I ~ L , ~ . & I I I / J ~ sccrvq,

1 4 ~ . 2.7

Mode of sales

Manufaclur~ng Trade Servles

Type of activity

39.81 per cent on cash basis and the remaining 5.56 per cent on c d i t basis. It may

be said that the majority of the respondents dispose o f goods and render scrvices on

cash-cumcredit basis.

In industrial marketing, goods I services are priced on the basis o f diffmnt

techniques. The techniques commonly used in pricing may be cost oriented, demand

oriented, competition based, contract based etc. The respundcnls have adopted

different techniques of pricing while selling goodd rendering services. These a n

depicted in Table 530.Among the respondents under manufacturing, the highest

30.86 per cent price goods on contractual basis followed by those who sell on cog

oriented method (27.16%)basis, competition (24.69%) and tlre rest 17.28 per ccnt

demand oriented. Among the respondents in trade, no one sells on contractual basis.

Nearly 41.67 per ccnt sell goods on cost hasis, 38.89 per ccnt on the hasis of

competition and the remaining 19.44 per ccnt resort to demand oricntcd pricing

Table 5.20 : Methods o f Pricing Adopted by Sample Reapondenta

Competition

Technique

Cost oriented

. 1 (2:) ( 3 y 9 ) 1 (4(:.;0) 1 (3;;) 1 -.--" ---- --

Contractual basis

Type o f activi . ~ a w u r i n ~ 1 T 2 ~ Sc;FT-:F]

22

Total 216

Note Ftpres In brackets rndicare rhcpcrcmtagt lrr total

NS Nor srplficont at S prr cent lcvcl

Source : Sample survey

technique. I n the case of services, the highest share af service providers employ the

method of competition oriented pricing policy (40.40%), follnwed by demand

(30.30%) and cost ( I 7.17Tdh). Thc remaining 12.12 per ccnt provide mice on

contractual basis. When all thc respondents arc considered together, 34.36 pn ccnl

adopt competition, 25 per cent cast, 23.61 per cent demand and thc balance 17.13 per

ccnt con-l basis. It may be concluded hat contractual basis o f pricing i s

popular in manufacturing, cost oriented in trade and cornpaition in scrvicc.

lhc storage facilities wm used by cntrcpnnfun to keep tbc goods in good

condition and safe from the& damage ctc. Thw are shown in Tablc 5.21. h can be

observed that, in the cax of manufacturing, 60.49 per ccnt wen: not at all using any

godown for keeping thc goods. The proportion of respondents who kccp goods in

their own godowns account for 28.40 pcr cent. Ihc percentage o f rcspondcnts wha

store goods in rented godown constitur 2.47 per ccnt. Thc rcmaining 8.64 pcr ecnt

store goods in own as well as rented godowns. With regard to trndc. 38.89 per ccnt

Table 5.21: Storage of Finished Goods by Entrepreneurs

kcep goods in opcn prcmises and thc rcsl in warehouser, Among those who preserve

goods in godowns, 55.56 per ccnt ktcp them in their own godowns and the remaining

5.56 per cent in own I rented godowns. Out of thc total rcspncenls, 53.85 per cent do

not kcep goode in warehouses. Nearly 37 pcr cent o f rcspondcntr prerw~c goads in

their own godowns, 3.42 per cent renkd godowns and the rcmaininy 5.98 per ccnl in

own/rcnted godowns, It may be concluded that the majority of'cntrcprtncurs do Mil

prcscrvc goods in warehouse.

Response

No storage

Own Rented godown godown

Ownlrented godowns

Total --

J1.37NC N o Figures m hruckerr itldrcola ~ h r pcrcentuge e atul

NS Nor s/gnijicunt or S pcr ccni Lvel

Source Sample r w v q

T of activlh

Manufacturing Trade

_- ( 6 : 7 ~ ~ - - : 1 @l!!~-_++ _.S!%.l - -

(29.- __(5.562__----

( 8 . 6 9 -- 8 1 36

. 0 - - ! ) .

_ _ - k. 16 :- 75)

$42)

--- (L-MJ- --=

117 " IlcHI)

7. Profit and loss

The distribution of respondents who corn proms snd incur loss is p~scntrd in

Table 5.22. Of the respondcnls in nianubc~uring. 74-1 per crnl conk$ pmfils rrhile

Table 5.22: Chsriiication of Rnpontltnts on the basis ~ f P m l l t / ~ s

r

Clncsilicat ion of Rcspondtnts on I he hi< o r Prolitlloss

100

- 80 - 60 8 l)ro 111

Cr

3 40 811

0

20

0 21 III~I~ICIII~III~ I~ I I~L Scrv~cc

Type of aclicil)

the the rest 25.9 per cent incurred loss. I n the case o f rradc, 91 -7 per cmt made profils

whereas the remaining 8.3 per ccnt incurred loss. With regard to m i c e wtor, % per

cent earned profits whilst 4 per cent s u f f i loss. Out ofthc total respondents, 87 per

cent earned profits vis-8-vis 13 per ccnt who incumd loss. It may be concluded that

most o f the respondents in tradc and service eam profit as compared to those in

manufacturing. I t can bc observed fnHn the application o f test that then is no

significant association between typc o f activity ard pmfiVloss. The corresponding $ value is not significant at 5 per cent level.

8. Skills

Skills arc required for entrepreneurs to operate their cntcrprises successfully. 1Bc

skills determine the success or failure o f the cntcrprise to a large extent. The options

o f women cntrepreneurs wcre kcpl in mind whilc sclccting the alternatives out o f

which choice could be made by the respondents. Each of the respondcnts was

asked to indicate choice in respect o f 9 skills such as financial skills, co~nmunication

skills, innovative skills, marketing skills, negotiation skills, convincing skills and

decision making skills. For cach o f them , wcights are assigned bascd on thc four.

point Liken scale. Weight assigned is 4 for excellent, 3 for g t d . 2 far mcxlcrate and

Ifor not good. Number o f responses in each category is multiplied by weight to arrive

at total weighted score for each skill and for all the skills put tc>gcthcr. Ihc agyregatc

o f all wcighted scores is takcn as 100 to work out thc sharc o f cach skill as a

percentage. This facilitates ranking o f the skills in the ordcr o f imp)lznnu! lirr c8ch

activity based on weighted xorc mcthod. I b c skills o f rcspondcnts in managing thc

manufacturing units is shown in Table 5.23 Of thc wcighlcd sorts, the share o f

communication skills was 12.32 pcr cent followed by human relalion skil ldl 1.95%),

managerial skills (1 1.69?/0), innovalive skills (1 1.53%), convincing skills (10.95°h),

negotiation skills (10.90%), markcling skills (10.33%). decision-making skills

(10.27%) and financial skills (10.06%). In otherwords, communication &ills rank

first. I t means that the respondents have gnod communicutiotr Bil ls. It is fbllowcd by

human relation skills. Like this, thc managing abilities vary across d i f T m t skills In

the manufacturing sector. The human relation skills wnk m d . These skills an

thc basis for their succcss. Customer satisfaction is the main objective o f my

indudrial activity. Women cntrepreneurs are not an cxccptinn to this. Managerial

Table 5.23: Skills of Respondents in Manufacturing &tor

Source: Sample survey

skills rank third and innovative skills rank fourlh, Convincing skills occupied fiRh

place and negotiation skills rank six. Marketing, decision-making and financial ,kill$

rank seventh, eighth and ninth respectively.

The skills of respondents in eade arc pravidcd in Tahlc 5.24 Most of the

women entrepreneurs felt that they possessed communication skills. (wciyhtcd %on

o f 122 and rating percentage o f 13.66). Ihis shows that the trodcrs havc g o d

communication ability. Managerial skills ranked second with a weighted scm of 109

and rating percentage o f 12.21.11 scclns that thcy hnvc mnneycd concerns effectively.

The human relation skills occupy ~hird place wilh weibted w r c of I05 and rating

skills Decision

skills Managerial skills Innovative skill Marketing skills Negotiation skills Convinc~ng

making skills I Total

Source: Sample srirwy

percentage of 1 1.76. In this order, the skills of respondents in wade dcclinc. The

5

- 2

1

2

innovative skills came last with a weigh~ed score of 85 and rating prccntuge of

21

13 24

25

21

4

23 10

10 '

13

- - -

- - . -

-

36

36 36

-" 3 6 '

%*-,*I

109

100 --w - "-"-" "

99

12.21

9.52 1\20

-*"

" 1 l . C 8 '

2

9 , 4

-" --

Tabk S.U. Skills of Respondtats in Tndc

Soiirct: Sample survey

percentage of 11.76. In this order, thc skills of rcspondcnts in trade dccline. Ihc

innovative skills came last with a wcighted score of 85 and rating pcrccnrayc of

9.52.

The particulars of skills of rcspondcnts in service m bished in Table.515. Of

these skills, human relations skills rank fim followcd by &munication, marketing,

Table 5.25: Details of Skilb of Respondents in Service &tor

Soirrce: Sample srtrvcv

managerial, negotiation, convincing, innove~ivc, financial and. derision-making

skills. It may be norcd thar rhc decision-mnking skills arc he last among the

skills across thc respondents.

A glance at Table 5.26 reveals the skills passcsscd by nspondcnls across

manufacturing, trade and service as a whole. 7he colnmunicrtion skills rank fint with

a weighted score of 643 and rating pcrcentngc of 12,32. The decisionmaking skills

Table 5.26: Details of SMUa Arms Aggrqatc Respoadeub

Factor

skill Human relat~on 38 124 54 skills - - - Managerial 23 rm136----51 ' 6

Financial skills Communication

skills Negotiation 1 28 / 91

Weights I Total

-.-- - E i n c n g 1 ; I

1 1 . 1 /2i~C+~io.o.~**~-/ skills ---"- -

Decision 26 216

10 37

--- - .- Source Somple Tunley

Weighted mre

occupied last place with a wcightcd score of504 and rating pcrccnlaye af 9.96. lk

77 129

remaining skills were in between them.

ktin~ %

9. Views olwomen cntrcprcneurs

Raaklnl

11 1 SO

Saciety and family play an impomnt mlc with rc@ lo perccpion of women

entrepreneurship, I h e x perceptions dcfinitcly influcncc role of wmcn as m

entnprcneur. Therefort, the researcher sought enswen fw the qucslions and ranked

them based on their perception and experience, Tabk. 5.27 provides vicwr of

respondents under manufacturing on cnlnpremrship. The view that ' w m uho~ld

be economically independent' ranked first, Hcn the weighted score was 273 and

the rating percentngc 12.81. Secondly, 'women work much hrrder than men' ranked

1 18 - 216

216 S l l 1 9.79 643 1 12.32

8 I

Table 5.2'1: Vkws of Women Entrcpmncurs in Manufachrln~ Scctor

second with weighted $con of 248 and rating pcrccnlagc of 12.20. 'Women

entrepreneurs cxperiencc favorablc attitude of family m c m b ' occupied third nnk;

'first priority of a woman is her home' is ranked faurth; 'warnen cntrepeurs h&vc

better status in socidy' occupied Ihc fillh place; 'it is b m r lo be a vcntum l a n lo be

a nursc/c.rcer' ranked sixl ; 'daincstic duties arc hampcred if w m undertake r

vcntun' ranked seventh; 'personal life gels disturbed luu] imparablc if a women

undcrbkcs a vmturc' occupied cighh position and each of 'men oppoaed womcn faa

being venturn' and 'sociely looks down MI womcn cntrcprcneurs' rankcd ninth.

The views of respondents in trade on women entfcpmurship is given in

Table.5.28. The opinion that womcn work much bmr lfian men wped the h i w

Table:5.28 Perceptions of Respondents in Tndc on Entrtprtneunhlp

weight (124) and ratings (13.12%) so as to rank first. 7hc view that 'wmcn should k

cconomially independent' rankcd second, lSach of 'prioricy of a woman is her home'

and 'womcn entrcpnneun enjoy fsvourahlc trcatmcnl from family mcmbm' mked

third. Like this,'the othcr perceptions varied with varying weighted sarc and rating

percentage. 'Personal life gets disturbed and irrcparahlc if a woman undct%krs a

venture' camc last. Its weighted score and d i n g pcrccntagcs an: 64 and 6.77

The opinions of women cntreprcmua in scrvicc sector on entrcpnneurship

are elicited in Tabk5.29. Majority of the mpw\dcnts w k of the view that women

should be economically indcpcndcnl. Thcy strongly a g m with this stucmcnt and so il

Table:5.29. PempHana of Women in Strvirc %tor on Entrcprrneorship

Factor Welgbb Tobl Wcbbtcd Rating Rank Stmngly / A g m I Disagrct / Strongly *ran #

j a g m j Women workmuch harder / 23 / 66 1 10 than men First priority ofa women is 32 $4 ' 22 her home Women should be 38 61 -

Women entrepreneurs experience favourable

women e n t r c p r c n e L Domestic dut~es arc

Y - / 7 j - 1 7 4 I -,--!--iji-/"*Tfci"/"Tj and irreparable i f women undertake ventures 'rota I

-Lr

Source. Sample survey

is renkcd first. 'Women enrrcprcncun cxpcriena a favorahlc altitude from famil)

members' occupied the second place. Like this, the views of respondents acquimd

different ranks.. 'Men oppose women for starting vcnturcs' rankcd last with a

weighted score of 165 and rating pcrccntagc of 6.48.

The perceptions o f rcspondcn& at thc aggregate level in all he mivititr ia:

furnished in l'able.S.30. A look at the Tablc nveala that 'women should be

economically independent' occupied thc firsl place. Ihe weighted ncon and rsling

percmlages arc 73 1 and 12.96 rcspcctivcly. 1,ikc his, the mnaining stntcments wcrc

Source: Samplt survey

assigned dill-crenl ranks according to the vicws of rcspndcn~n. Thc $lacement lhal

'mcn oppose women for staning ventures' ranked last with a weighled WE or 364

and rating pcrcentagc o f 6.45 respeclivcly.