AN INCLUSIVE REVIEW ON ENTREPRENEURIAL TRIGGERS IN CONTEXT TO

INDIA

1. Mr. S. Thowseaf (Ph.D. Research Scholar), 2. Dr. M. Ayisha Millath (Research Supervisor),
Alagappa Institute of management, Alagappa University, Karaikudi - 630003
Email ID- thowseaf786@gmail.com, Ph. No- +91 7358167123
Email ID- ayishamillath05@gmail.com, Ph. No- +919842144984

ABSTRACT

The level of entrepreneurship determines the level of employment and level of economic
growth within the country. Its visible impact on beneficial of country can be traced even before
economic liberalization in India. For the study extensive literature survey has been considered
for the study. The secondary data is thus collected from Government of India - GoI. (2005). Fifth
Economic Census 2005-All India Report, National Knowledge Commision (NKC)
entrepreneurial report, Outlook Business magazine - BRIC report, Journals, websites, Periodical
articles and case Studies. Through study, It is been found that a successful ecosystem is the
function of entrepreneurial triggers (socio-cultural factors, access to finance, education and
business environment) and motivational triggers (independence, market opportunities, family
background, new ideas, challenge and dream desire). The study reported 63% of the respondents
have initiated their venture through their self finance, followed by banks constituting 22%. 95%
of the entrepreneur believes education plays a critical success factor, but the result provided
contradictory result, that is most of the entrepreneur are undergraduate rather than post graduate
or Ph.D.. It is also been found that there exists significant difference between motivational
triggers with respect to region, age, and gender and work experience.

Keywords: Entrepreneurship in India, Entrepreneurs - Entrepreneurial triggers in India.

INTRODUCTION

Entrepreneurship is still a new jargon to India. Currently, about 60 percent of the

population in India is at the age group of 15-59 years which is called as demographic dividend,
despite of such a demographic transition having such a large number of active age group, the
level of entrepreneurial establishments and size of the firm is pitiable in India, which is been
indicated in below (table 1.1). It is been forecasted 500 million strong work force will be
available by 2022 in India but, what could be done with this active workforce, if there is no
enough job opportunities resulted through lack of entrepreneurs (Srija, 2016). Entrepreneurship
is study focus of all the countries for many decades because, it is considered as a viable tool
which is making visible impact on employment generation and wealth creation for the economy
(Amlanjyoti Goswami, 2008).

Table 1.1 Percentage Firms Establishments and its respective size in terms of labors in India
SI. No. Size by class of Employment Items Year
1990 1998 2005
1 1-5 Establishments 93.4% 94.0% 95.1%
Persons usually working 54.5% 58.6% 64.2%

2 6-9 Establishments 3.5% 3.3% 3.4%

Persons usually working 8.4% 8.3% 10.2%

3 10 & above Establishments 3.1% 2.8% 1.5%

Persons usually working 37.1% 33.1% 25.5%
Source: (GoI, 2005)

ENTREPRENEURSHIP IN INDIA

India is been an entrepreneurial society for many years, entrepreneurship is embedded in

Indian genes due to tradition and culture followed, it been evolving rapidly over the period of
time but not in phase will the current environment (Srinivasan, 2007). There entrepreneurs
growth are intensifying especially in service sector, it is been estimated that nearly 82 Indian
companies have entered the Deloitte Technology fast 500 list among the Asia Pacific countries
during 2007, whereas in comparison of other countries potential population, technology
availability, market potential and other feasibility conditions India is capable of achieving this
status long before (See Bowonder, March 31, 2006). It is been reported by Abhishek that after
economic liberalization in recent times created better comfort zones to entrepreneurs to access
finance, acquire knowledge and to place their business units have created potential impact for
entrepreneurs creation in India (Abhishek, 2007).

ENTREPRENEURIAL & MOTIVATIONAL TRIGGERS IN CONTEXT TO INDIA

Entrepreneurship ecosystem consists of various factors; all of it on closer insight can be

classified into two categories i.e. entrepreneurial triggers and motivational triggers.
Entrepreneurial triggers consists of those factors which induces individuals think of becoming
entrepreneurs by initiating new venture, while motivational triggers are those factors that further
stimulates individuals to undertake risk by becoming entrepreneurs. Identified key
entrepreneurial triggers are: socio-cultural factors, access to finance, education and business
environment. Whereas the motivational triggers are independence, market opportunities, family
background, new ideas, challenge and dream desire. According to the study the triggers
mentioned before are directly influenced parameters such as gender, age, region, family
background and work experience. The survey undertaken by Golman Sachs and Pricewaterhouse
Cooper to states that India has high potential to become a worlds leading economies by 2050 if
entrepreneurs are encouraged and its associated factors are appreciated (Sachs, May 5, 2007).
Further report illustrated by Vijay on outlook business states the potential of India with respect to
active age groups, market size and unmet requirements (Vijay Govindarajan, May 5, 2007).

METHODOLOGY

Extensive literature survey have been utilized to collect data in relation to the objective
and documented. The secondary data had been collected from periodicals articles, reports
published by Government of India, Journals, articles, websites, books and form case studies. The
data for the study mostly took from GoI. (2005). Fifth Economic Census 2005-All India Report,
National Knowledge Commision (NKC) entrepreneurial report and Outlook Business magazine -
BRIC report.

FINDINGS

There are various approaches to enumerate the factors associated entrepreneurs. Here
with respect to our study, the factors are considered out of review of literature instead of models.
The factors which had highly significant relationship in various studies are considered along with
it parameters and scrutinized to limit the objective of the study.

1. Motivational Triggers
According to the study made by the National Knowledge Commission (NKC), there
exists multiple motivational factors that triggers an individual to become an entrepreneur, the
significant motivational triggers are identified to be; independence, market opportunity, family
background, new ideas and dream desire to become an entrepreneur. Among the considered
factors independence, family background, market opportunity and idea driven are the major
contributor holding approximately 20% each, while rest 20% is shared by dream desire and
challenge.
Figure 1 - Motivation to become an entrepreneur

Motivation to become an entrepreneur

18% 21% Independence

Challenge
Dream desire
19% 11% Family background
Market Oppurtunity
10%
Idea drven
21%

Source: (GoI, 2005)

2. Variation of motivational triggers with respect to region

The most significant motivational trigger ranging across most of the region is found to be
Family background, it is found to be prime trigger for the entrepreneur in the region of Kolkata
and Ahmadabad. While Pune and Chennai have been centre for education which provides and
evidence of the entrepreneur in such region are idea driven. In Bangalore the market opportunity
is dominating factor that triggers the individual to become an entrepreneur, while at Hyderabad
Independence was the most selected choice of the respondents that had triggered them to become
an entrepreneur.
Table: 1 - Motivational Triggers with respect to region
Highest Motivational Triggers - variation according to region
Region Percentage in Numbers Major Motivational Trigger
Pune 24 Idea Driven
Kolkata 28 Family Background
Chennai 29 Idea Driven
Ahmadabad 38 Family Background
Hyderabad 35 Independence
Bangalore 26 Market Opportunities
Source: (GoI, 2005)

3. Variation of motivational triggers with respect to the gender

With respect to gender for male independence (21%), family background (24%) and idea driven
are the major factors. While considering the female gender the independence and idea driven are
the major factor constituting (25%) followed by other factors, the family background which is
considered to be the dominating factor for male is the least contributing factor for the female
gender.

Table 2 Variation of motivational triggers with respect to gender

Motivation - Variation with respect to gender
Gender Percentage in Numbers
Independence Family Challenge Dream Market Idea driven
Background desire opportunity
Male 21 24 12 8 19 16
Female 25 8 14 12 16 25
Source: (GoI, 2005)

4. Variation of motivational triggers with respect to Age

Idea-driven are more found to be create a significant impact for entrepreneurs above the
age of 35 whereas it exert a minimal influence on those below 35. Further, market opportunity
is a far significant contributing motivating factor for those below-35 age-group compared to
those above 35 ages.
 Table 3 Variation of motivational figure with respect to age
Motivation - Variation with respect to age
Age Percentage in Numbers
Family Dream Market Idea
Independence Background Challenge desire opportunity driven
Less than35
years 22 22 17 5 27 7
More than 35
years 21 22 9 11 16 21
Source: (GoI, 2005)

5. Variation of motivation with respect to work experience

It is found that the family background and idea driven becomes less significant as the
years of experience increases, while the market opportunity and independence becomes highly
significant as the years of experience increases.
Table 4 -Variation of motivation with respect to work experience
Motivation - Variation according to the work experience
Age Percentage in Numbers
Family Dream Market Idea
Independence Background Challenge desire opportunity driven
0 Year 7 38 10 13 9 23
less than 5
years 22 22 8 7 22 19
5-10 years 48 5 7 9 14 17
10 years and
above 19 4 21 9 31 16
Source: (GoI, 2005)

6. Socio-Cultural factor

Socio-cultural factor is a combination of social norms, family values, networks and social
value of Entrepreneurship, which is playing a key role in nurturing the entrepreneurial
ecosystem. A sociological and historical understanding of communities existing in India have
been traditionally engaged in business, this confirms the past and current role of social factors
that is encouraging Entrepreneurship in India.

The NKC study explores the degree of family support (a socio-cultural factor,
particularly in India) that the entrepreneurs received at the time of starting their venture. Overall,
as many as 74% of the entrepreneurs were supported by their families (as seen from the figure
below, 51% were very supportive and 23% were supportive), which further underscores the
importance of social institutions for entrepreneurs in India.
Figure 2 Socio-Cultural Factor support to entrepreneur

Individual Socio-cultural Background Support

to entreperneur
5% Opposed
9%
Sceptical
12%
Neutral
51%
23% Supportive
Very Supportive

Source: (GoI, 2005)

7. Access to finance

According to the study conducted NKC, it is been reported that 63% of the respondent
considered for the study are have started their entrepreneurial career through self finance.
Followed by loan from bank contributes 22% and state finance corporation 9%. It is only 6% of
the respondent entrepreneurs utilized Venture capitals and angels account to finance their new
venture.
Figure 3 Access to Finance by Entrepreneurs

Access to finance
3% 3%
9% Self Financed
Banks

22% Venture capitalist

63% Angel investors
State finance corporation

Source: (GoI, 2005)

8. Educational Qualification

The study conducted by NKC illustrated that 50% of the respondents are undergraduate
followed by 46% are postgraduates. It is to be noted that it is only 4% Ph. D. and intermediate.
The study states nearly 80% of the entrepreneurs interviewed are from science/ engineering
background, only 16% of the overall sample said that they consider their education relevant for
their particular entrepreneurial venture. 70% of the entrepreneurs interviewed do not have an
MBA qualification.
Figure 4 Qualification of Entrepreneurs

Qualification of Entreperneurs
2% 2%

Intermediate
Undergraduate
46%
50% Postgraduate
PhD

Source: (GoI, 2005)

CONCLUSION
Entrepreneurship involves the community, family, academia, financial players,
government, industry, and potential entrepreneurs themselves. Promoting Entrepreneurship
means encouraging people to be self-reliant in taking economic decisions and creating wealth
and employment.

Advice to Entrepreneurs:
Increase networks with other entrepreneurs to encourage sharing of ideas and
experiences, and to mentor upcoming entrepreneurs.
Document failures as much as successes and learn from each experience.
 Understand the product and markets well.
Conduct extensive background research, especially on marketing and financial aspects.
Focus on quality Cost is forgotten, quality never.
Match the skills, mindsets and beliefs with the business venture
Focus on core strength and excel.
Develop clear business plans and targets for growth.
Undertake information disclosures and participate in the development of the rating
processes of banks, to enable better risk management for finance.

What the Government Can Do:

Creating up-to-date information source for start-up entrepreneurs in the form of source
books, web portals and one stop shops and widen dissemination of all relevant
information.
Improvising the current Single Window System of getting clearances and introduce a
Single Composite Application Form.
Ease the process of filing taxes by reducing the frequency of tax payments and
multiplicity of procedures.
Create specialized commercial courts for speedy enforcement of contracts.
Reform bankruptcy laws to ease the process of closing down businesses.
Ensure proper publicity and implementation of various promotional schemes and
policies.
Develop a comprehensive Incubation Policy at the national level, which would increase
quantity, enhance quality and increase access to financing.
Government should set up a Global Technology Acquisition Fund in Intellectual Property
(IP), which can enable crucial technology acquisition across the world, especially for
SMEs.

References

1. Abhishek. (2007). supra note 3 .

2. al, A. G. (n.d.). supra note 3 .

3. Amlanjyoti Goswami, N. D. (2008). Entrepreneurship in India. National Knowledge
Commission , 1-169.

4. GoI. (2005). Fifth Economic Census 2005-All India Report. Government of India.

5. Sachs, G. (May 5, 2007). Outlook Business. BRIC report.

6. See Bowonder, K. N. (March 31, 2006). Innovation in India: Recent Trends. TTMC
Research Paper .

7. Srija, S. S. (2016). Entrepreneurship Development in India-the Focus on Start-Ups.

Laghu Udyog Samachar , 20-27.

8. Srinivasan, T. (2007, April 23). The Hindu, Business Line. The Hindu .

9. Vijay Govindarajan. (May 5, 2007). Outlook Business.