CHAPTER IV

ENTREPRENEURIAL COMPETENCY OF COIR YARN ENTREPRENEURS

Introduction

Knowledge is one’s indestructible and outstanding wealth.......................

The Wise have all blessings, even if not possessed with worldly goods.....................
(Thirukkural: 400; 430)

The success of a business is due to many factors; but the greatest determinant

of a business success is the competency of the entrepreneur her/himself. Thus

knowledge is the source of entrepreneur’s growth and business success. It is now

almost taken for granted that knowledge and information are of crucial importance for

the creation of value in the globalised economic era. Naturally the entrepreneur’s

diplomas, business knowledge and craftsmanship play an important role in business

success and growth (Martyn. P. Driessen et.al, 2010). In many of the micro and

small enteiprises, the entrepreneurs are the managers and hence basic knowledge in

management is needed at the initial as well as later stages of the enterprise. Manager

of an enterprise should be generalist; and gain basic skills and knowledge in

managerial functions such as planning, organizing, leading and controlling. Manager

also should have an overview of finance, marketing and market development,

competitions and so on. Failing which, she/he will fail under the burden of

undiscovered and emerging problems (Prague, 2007). Knowledge in current

practices of production and strategic management enhances the skill in meeting the

central challenge in maintaining flexibility and innovativeness in the enterprise

(Hambrick and Crozier, 1985).

Dr. W. Edwards Deming (1986) known as the father of the Japanese post -

war industrial revival, advocates that all the managers need to have what he called a

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system of profound knowledge consisting of four parts : Appreciation of a system

i.e., understanding the overall processes involving suppliers, producers, and

customers/recipients of goods and services, Knowledge of variation i.e., the range

and causes of variation in quality, and use of statistical sampling in measurements,

Theory of knowledge i.e, the concepts explaining the knowledge and limits of what

can be known, and Knowledge of psychology i.e, concepts of human nature.

Issues to be addressed

Coir yam entrepreneurs are not exemptions; they need to have extra

knowledge and skill in general and on the coir entrepreneurial endeavor in particular

for the reasons that: they are micro/cottage level producers; they do not avail the

expertise of professionals to manage their business; they do not avail the expertise of

high-tech professionals to attend to/operate the machines/equipments; they depend on

unskilled workers mostly hailing from the locality; they do purchase the raw materials

in piece meal / small scale and carry out production; similarly they are persons of

small means and therefore they cannot ever imagine of entering in to global trade and

networking ; they cannot also stabilize their production quality standards as they do

not have control over several of their production and marketing environment. They

do not have organic linkages with the suppliers and supporters; they have to relay

only on the suppliers, the workers and the buyers who are available locally.

As such, the coir yarn entrepreneurs need to assume the roles of the machine

operator, quality controller, yam winder and packer, machine repairer, electrician,

record keeper and accountant besides manifesting as managers looking after

production, finance, human resources, marketing and the like. During field visits it

was observed that many of the coir yam entrepreneurs have met with failures due to

lack of strong knowledge base on the endeavor. In these broad context, it is presumed

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that coir yam entrepreneurs need to have skill/knowledge about the automated coir

yam spinning unit, the coir yarn, the production standards, the production processes,

the machines capacity and utilization, the machines maintenance and management,

the inventory and cost details, the buyers and the marketing environment, the probable

challenges and threats effecting the endeavor and the like. Hence an assessment is

made on the entrepreneurial competency with regard to knowledge and skill in

production process and entrepreneurial practices on the coir yarn spinning of the

respondents.

Knowledge about Coir Sector

To know the knowledge level on the coir sector of the respondents, a few

questions relating to coir production regions, available technology and the sources of

availability, schemes and programmes promoting coir sector, promotional agencies in

the country and the like, are prepared and administered among the respondents and

the responses are obtained in binary answers (yes/no). The binary answers are scored

(Yes=l; No=0) and the knowledge index scores on coir sector for each respondent is

computed.

Based on the index scores, the respondents are grouped in to three categories

viz., low (scores ranging from 0 to 3), medium (scores ranging from 4 to 6 ) and high

(scores ranging from 7 to 10) of knowledge levels on coir sector. They are presented

in tables 4.01 and 4.02.

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 Table 4.01

Knowledge about coir sector

Number of respondents
S. No Details (N=150)
Yes No Total

The state where coir production is 150 150

1. —
high (100 .0 ) (100.0)

150 150
2. Objectives of the Coir Board —
(100 .0 ) (100.0)

Location of the HQ of the Coir 150 150

3. —
(100.0)
Board (100 .0 )

Existence of coir fibre production 150 150

4. — (100.0)
units in the survey districts (100 .0 )

Existence of traditional coir units 150 150

5. — (100.0)
in the survey districts (100 .0 )

Existence of mechanized coir 150 150

6. —
units in the survey districts (100 .0 ) (100.0)

Coir yarn spinning machine 75 75 150

7. (100.0)
manufacturers (50.0) (50.0)

Bankers assisting coir units in the 150 150

8. —
survey districts (100 .0 ) (100.0)

82 68 150
9. Govt, schemes assisting coir units (100.0)
(54.7) (45.3)

Extent of assistance of the govt, 82 68 150

10 .
for coir units (54.7) (45.3) (100.0)

128.9 21.1
Average 150
(86.0) (14.0)
(100.0)
Figures in brackets are percentages to row total.

As shown in table 4.01, on an average a majority 86 percentage of the

respondents have knowledge about the coir sector. However, 45 to 50 percentage of

the respondents do not know about the schemes and programmes of government

providing financial, technical and marketing assistances/help to coir development in

the state/country. Further, they do not know about the manufactures of the coir yarn

spinning machineries. It is observed that most of the coir yam spinners under the

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 Table 4.02

Knowledge level on the coir sector

Knowledge level Number of respondents
S. No
(index scores range) F %
Low
1. — —
(upto 3)
Medium
2. — —
(4-6)
High
3. 150 100.0
(7-10)
Total 150 100.0
• Minimum index score is 7 and maximum index score is 10.
• The mean index score is 8.59 out of 10,

study have availed the services of the coir yam entrepreneurs associations/agents/a

few notified coir yam entrepreneurs who had leadership on coir yarn

entrepreneurship, in the locality. They seem to know about the place of

manufacturing as well as the name of the manufacturers, but do not know the brand of

the manufacturers. Their purchase decisions are greatly influenced by the referrals.

The study finds that the mean index scores on knowledge on coir sector of the

respondents is 8.59 out of 10. This shows that all the respondents have fairly a high

level of knowledge as shown in table 4.02.

Knowledge on Coir Yarn Spinning unit

While venturing in to production of coir yam through automatic spinning

machines, one has to have adequate knowledge on the basic requirements such as

space, labour, capital, raw materials, electric power requirement and the cost details.

It is advocated (Coir Board, CCRI 2010) that a spinning unit consisting of one

willowing machine of 2 HP capacity, a slivering machine with 2 HP motor, and three

spinning machines each with double spindles with 1 HP motor/five spinning machines

111
 Table 4.03
Knowledge on mechanized coir yarn spinning units
Number of respondents
S. No Details (N=150)
Yes No Total
111 39 150
1. Optimal size of the spinning unit
(74.0) (26.0) (100.0)

94 56 150
2. Optimal space required
(62.7) (37.3) (100.0)

Optimal number of workers 145 5 150

3.
required (96.7) (3.3) (100.0)

95 55 150
4. Optimal operating hours per day
(63.3) (36.7) (100.0)

Optimal quantity of fibre 116 34 150

<:
J «

requirement per day (77.3) (22.7) (100.0)

Optimal quantity of production 94 54 150

6.
per day (62.7) (37.3) (100.0)

Minimum working capital 106 44 150

7.
requirement per day (70.7) (29.3) (100.0)

Optimal quantity of electric 45 105 150

8.
power consumption (30.0) (70.0) (100.0)

Permissible quantity of 45 105 150

9.
production wastage (30.0) (70.0) (100.0)

26 124 150
10 . Economic production quantity
(17.3) (82.7) (100.0)
87.7 62.1 150
Average
(58.5) (41.5) (100.0)
Figures in brackets are percentages to row total.

each with single spindle with 1 HP motor and manually operated bobbin rewinder

could able to produce such quantity of the coir yarn leaving reasonable margin to the

entrepreneurs. The space required for creating the spinning unit shall not be less than

600 sq.feet of 30 x 30’ with roofing. Five workers are required to carry on the

production for 8 lirs duration, consume about 120 to 150 kg of husk fibre (major item

of raw material) and produce 110 to 140 kgs of finished goods (coir yarn). The

electric power consumption for the production of one kg of finished goods shall not

112
exceed one unit. Although the quantum of daily capital requirement is subject to

variations due to the cost of labour, and the cost of raw materials etc., it is estimated

that the quantum of working capital requirement (i.e., cost of raw materials, wages to

be paid, and cost of electric power consumption) shall not exceed 50 - 60 percentage

of the sale proceeds of the average production. The coir yarn entrepreneurs need to

have adequate knowledge on the above production and cost details so that she/he can

run the business optimally atleast at break-even.

In order to know, whether the respondents have knowledge on the basic

requirements pertaining the space required for the creation of the spinning unit, the

optimal size of the spinning unit, the minimum number of workers required, the

quantity of raw materials that are required to run the spinning unit optimally at break­

even and the like or not, a few questions are prepared and administered. The

responses of the respondents are measured in binary answers, i.e., Yes = 1 and No =

0. Thus index scores to each respondent is estimated. High score (ranging from 7 to

10) denotes possession of high level of knowledge while scores ranging from 4 to 6

denotes medium level of knowledge and low scores (ranging from 0 to 3) denote low

level of knowledge of the respondents.

Table 4.03 shows that fairly a large section of the respondents have fair level

of knowledge about the minimum standards of requirement for the erection as well as

optimal (viable) operation of the coir yarn spinning unit. However, a majority of

them do not know about the very important aspects such as permissible quantity of

production wastages, including the optimal quantity of electric power estimated for

the production of one kg of coir yam and the economic production quantity per day in

a situation wherein all the minimal standards of requirements of production exist.

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 Table 4.04
Knowledge level on the mechanized coir yarn spinning unit

Knowledge level Number of respondents

S. No
(index scores range) F %
Low
1. 58 38.7
(upto 3)

Medium
2. 5 3.3
(4-6)

High
3. 87 58.0
(7-10)

Total 150 100.0

• Minimum index score is 1 and maximum index score is 10.

• The mean index score is 5.85 out of 10.
Grouping of the respondents on the basis of the index scores as shown in

Table 4.04, shows that the mean index score is 5.85 out of 10; This implies that

majority of the respondents have moderate level of knowledge about the production

standard norms pertaining the optimal functioning of the coir yarn spinning unit. Yet

they have taken up entrepreneurship on coir yarn production.

Knowledge about the Coir Yarn

Coir yam is one of the products made out of coir fibre. The spinned coir fibre

is called the Coir yam. White fibre (which is obtained from green - matured coconut

husk) is spun in to coir yarn, which is further processed in to value -added products

like Coir door mats, Mattings, Carpets, Geo-textiles etc., for export and internal

consumption. The white fibre is the longest and the finest one very suitable for

spinning in to coir yam (Coir Board, 2010). Coir yarn is classified according to its

colour, twist and fineness. These qualities vary with the methods of retting, spinning

and seasonal condition peculiar to the different areas of production. Coir yam is

produced in two ways viz,, the hand spun and wheel spun. The hand spun is soft while

wheel spun yam has a hard twist and therefore is very strong.

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 Although coir yarn is classified according to its colour, twist and fineness,

they are named in grades which originally named after the places (geographical area)

where they have been produced traditionally and in large scale. The popular brands

are : Anjengo, (Allappy) mangadan, Ashtamudy and Alapat/Vycome. Usually the

grades are not specified by the producers; but they are specified by the buyers

(exporters and consumers) (Coir Board, 1966). Since the ‘brand’ has certain

specifications, they fetch ‘different prices’ in the market. For instances, Anjengo

brand is known for ‘super fine’ variety which fetches ‘high price’ where as

‘mangadan yarn’ is a moderate variety, mostly consumed in Indian markets for

agricultural purposes.

As such, the coir yam entrepreneurs need to have knowledge about different

varieties of coir yam, product specifications, differential advantages in terms of cost

and returns and the like. Hence in order to know the knowledge level of the

entrepreneurs on the coir yam, a few questions enquiring about the knowledge on type

of materials used for the spinning of coir yam of different varieties, product

specifications including relative merits and demerits in the production of different

varieties of coir yam and the like, are administered and the binary responses are

measured in scores (yes=l; no=0). The index scores to each respondent has been

estimated and accordingly, the respondents are grouped in to three categories. High

scores (ranging from 7 to 10) denote high level of knowledge while scores ranging

from 4 to 6 denote medium level of knowledge and low scores (ranging from 0 to 3)

denote low level of knowledge on the coir yam of the respondents. They are presented

in tables 4.05 and 4.06.

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 Table 4.05

Knowledge about coir yarn

Number of respondents
S. No Details (N=150)
Yes No Total

150 150
1. Type of fibre to be used —
(100 .0 ) (100.0)

110 40 150
2. Length of the fibre to be used
(73.3) (26.7) (100.0)

Permissible colour of the fibre to 150 150

3. —
be used (100 .0 ) (100.0)

Permissible foreign substance in 135 15 150

4.
the fibre (90.0) (10 .0 ) (100.0)

Production of different varieties 46 104 150

5.
of coir yarn (30.7) (69.3) (100.0)

Differences among varieties of 46 104 150

6.
coir yarn (30.7) (69.3) (100.0)

Breadth of different varieties of 46 104 150

7.
coir yarn (30.7) (69.3) (100.0)

Weight of different varieties of 46 104 150

8.
coir yam - (30.7) (69.3) (100.0)

Differences in the twist of coir 46 104 150

9.
yarn (30.7) (69.3) (100.0)

Benefits of production of 64 86 150

10 .
varieties (42.7) (57.3) (100.0)

83.9 66.1
Average 150
(55.9) (44.1)
(100.0)
Figures in brackets are percentages to row total.

Table 4.05 shows that majority 57 - 69 per cent of the respondents do not

know about different varieties of coir yam including the product specifications. They

also do not know about the benefits of the production of different varieties of coir

yarn. Simply they know about the type of fibre with permissible colour, to be used

for spinning the coir yam.

 Table 4.06

Knowledge level on the coir yarn

Knowledge level Number of respondents
S. No
(index scores range) F %
Low
1. 40 26.7
(upto 3)
Medium
2. 64 40.7
(4-6)
High
3. 46 30.7
(7-10)
Total 150 100.0
• Minimum index score is 2 and maximum index score is 10.
• The mean index score is 5.59 out of 10.
Classification based on the index scores on knowledge of coir yarn of the

respondents as shown in table 4.06, reveals that majority of the respondents have

medium level of knowledge and more than one-fourth of the respondents are poor in

knowledge about the varieties and various specifications of coir yam. The mean index

score is 5.59 out of 10.

Knowledge about the Production Process

Prior to invention of automated coir yam spinning machine, coir yam was

spunned with the help of manually operated wheel - spindles. The process was very

tedious and did not provide for mass production and also did not provide base for

quality standardization. It Is reported that the automated coir yam spinning machine

with single spindle was invented during 1960’s in Kerala (Coir Board. 2010) and has

been perfected over years. Today automated coir yam spinning machine with two -

three spindles are introduced which provide for cost reduction and mass production in

tune to standards.

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 Coir yarn spinning through automated machine is a continuous- flow

production process involving the production stages such as i) Willowing of the fibre,

ii) Slivering the fibre in to fibre slivers, iii) conversion of fibre slivers in to coir yam

through spindles, iv) Conversion of rolled coir yam in to hanks, and v) Bundling as

per market requirements.

Hence, the production of coir yarn through the automated machines

necessitates for production planning and control i.e., production scheduling is to be

prepared; routing of the production process including loading of the machines are to

be prepared; they are to be executed and expedited. In the mean while, quality control

of work in process is to be carried out at every stages of the production process. For

instances, moisture level in the fibre is to be regulated at the initiate stage of

willowing of the fibre; foreign/unwanted substances present in the raw-fibre are to be

separated and cleaned, before the willowed fibre is put in to the second stage of

production process called slivering. Slivering is an important production function

which enables for the conversion of fibres in to loosly twisted-fibre slivers’. It is

essential that the loosly twisted-fibre slivers should be uniform both in their twist and

the breadth, which in turn determine the breadth of the coir yarn and cost associated

with ‘rejectables’ while spinning. So far as spinning is concerned, the spindles play

an important role. Infact the Rotation Per Minute (RPM) of the spindles determine the

fineness and twist present in the coir yarn. By regulating the spindles’ RPM, the

entrepreneurs can produce different varieties of coir yam as per the market

requirements. The spunned coir yam in the spinning machines are drawn

automatically and winded in the bobbin. It is found that a bobbin will contain 750 to

900 coir winds, varying according to the variety of coir yam being produced. Finer

coir yam will have more windings than that of the coarse coir yam with a diameter

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ranging from 0.5 to 0.7 mm compressing large quantity of fibre present in the coir

yarn. The bobbin with coir yam are to be detached from the spinning machine when

it becomes larger in size affecting the winding process.

Finally the coir yam in the form of bobbins are to be rewinded in to hank form

with certain specifications. Usually the coir yam in the hank form are specified on the

basis of the length and the number of twists per feet present in the coir yarn. The

hank yam usually will have high level of moisture and therefore they are to be dried,

to the extent of preserving less than 10 per cent moisture content; and then bundled.

Usually the bundles are specified by the number of hanks and the weight of the coir

yarn. The coir bundles are graded accordingly besides considering the colour of the

coir yam. Thus coir yam spinners need to have thorough knowledge of the

production process so that they can carry out production functions efficiently and

effectively.

To measure the knowledge level on the production process of the respondents,

a few questions touching the production processes involved in the coir yam spinning

through automated machines are prepared and administered. The responses are

scored (Yes^l and No=0) and the index scores for each respondent is estimated.

Based on the index scores, the respondents are grouped in to three categories, viz.,

Low (scores ranging from 0 to 3), Medium (scores ranging from 4 to 6 ), and high

(scores ranging from 7 to 10) of knowledge on the production process. The details are

presented in tables 4.07 and 4.08.

As shown in Table 4.07, a majority of the respondents do not know the

significance of line-balancing in the production process, its utilities such as willowing

and slivering of fibres, the product specifications of different varieties of coir yarn and

the key areas of problems in the production process.

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 Table 4.07
Knowledge about the production process
Number of respondents
S. No Details (N=150)
Yes No Total

39 111 150
1. Significance of line- balancing
(26,0) (74.0) (100.0)

Significance of QC of work-in- 99 51 150

2.
process (66 .0 ) (34.0) (100.0)

31 119 150
3. Utility of willowed fibre
(20.7) (79.3) (100.0)

43 107 150
4. Utility of slived fibre
(28.7) (71.3) (100 .0 )

Reason for regulating the breadth 57 93 150

5.
of slived fibre ■ (38.0) (62.0) (100 .0 )

Reason for maintaining moisture 100 50 150

6.
level in the fibre (66.7) (33.3) (100.0)

150 150
7. Regulating the RPM of spindles —
(100 .0 ) (100.0)

Reason for winding off the 99 51 150

8.
bobbin (66 .0 ) (34.0) (100.0)

25 125 150
9. Product specification
(16.7) (83.3) (100.0)

Key areas of production process 150 150

10 , —
problems (100 ,0 ) (100.0)

64.3 85.7
Average 150
(42.9) (57.1)
(100.0)
Figures in brackets are percentages to row total.

However, it is learnt that the entrepreneurs (respondents) seem to have

acquired the knowledge on the above issues in due course while actually going in for

the production of coir yarn through the machines/confronting problems. This implies

that majority of them learn the knowledge while they do practice.

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 Table 4.08
Knowledge level on the production process

Knowledge level Number of respondents

S. No
(index score range) F %
Low
1. 48 32.0
(upto 3)

Medium
2. 80 53.3
(4-6)

High
3. 22 14.7
(7-10)
Total ISO 100.0
• Minimum index score is 1 and maximum index score is 9.
• The mean index score is 4.29 out of 10.

Classification of respondents according to the index scores on knowledge

about coir yarn production process, as shown in table 4.08, reveals that the mean

index score is 4.29 out of 10. This indicates possession of low level of knowledge by

the respondents.

Knowledge about Production Capacity of the Spinning unit

What ever be the type of entrepreneurship, one has to have clear knowledge on

the production capacity of her/his enterprise, be it on primary sector, or secondary

sector or in tertiary sector related enterprise. Because production capacity is a crucial

factor which determines the size and quality of the enterprise, the extent of market

being served; the type of technology being employed; the quantum of capital required;

the size of the working force / the human resources to be employed; the quantum of

raw materials to be procured and stored; i.e., inventory level to be maintained; nature

and pattern of strategies to be employed for disposal/the sale of finished goods; and

the like. Moreover, the production capacity utilization as a factor determines the

success or otherwise of an enterprise too. Under-utilization of the production capacity

results to increase in the cost of investments besides reduction of Return on

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Investment (ROI) leading to ‘industrial sicknesses. While over-utilization of the

production capacity results to increase in cost of wear-outs/ obsolete of machines.

Keeping these and others in view, entrepreneurs have to maximize the utilization of

the production capacity in such a way that the resources are being utilized optimally,

by reducing the cost and maximizing the returns.

So far as coir yarn spinning is concerned, as discussed previously elsewhere in

the report, there are more than one sequential production stages, and they are to be

performed in ‘flow pattern through ‘line-balancing’, i.e., every machine involved in

the production process should be utilized optimally, so that their cumulative effect

results to production maximization. Hence, the coir yam spinning entrepreneurs need

to have thorough knowledge on the production capacity of the machines used in the

production process, so that they can schedule the production operations besides

‘loading’ of the machines. For instances, it is learnt that ‘one hour before the starting

of the slivering process, the willowing machine is to be operated; and similarly one

hour before the spinning machines are operated, the slivering machine is to be

operated so that maximum loading of the machines in the production process can be

ensured continually and ‘production real time’ be maximized.

To know, whether the respondents know about the production capacity of the

machine, involved in the coir yam production process, or not? whether they know

about the factors affecting the production capacity utilization of the machines, or not?

And also whether they know about the estimated production capacity of the machines

per day or not? and the like, a few questions are administered and the binary

responses are obtained and scored (Yes=l; No=0). The index scores on knowledge of

the production capacity of the spinning unit for each respondent is estimated.

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 Table 4,09
Knowledge about the production capacity of the coir yarn production unit
Number of respondents
S. No Details (N=150)
Yes No Total

Production capacity of willowing 31 119 150

1.
machine per hour (20.7) (79.3) (100.0)

Production capacity of slivering 31 119 150

2.
machine per hour (20.7) (79.3) (100.0)

Production capacity of spinning 31 119 150

3.
machine per hour (20.7) (79.3) (100.0)

Number of slived fibre to be fed 150 150

4. —
in to spinning machine (100 .0 ) (100.0)

Effect of spindle RPM on the 39 Ill 150

5.
yam twist (26.0) (74.0) (100.0)

Effect of bobbin RPM on the yam 150 150

6. —
length (100 .0 ) (100.0)

Effect of power voltage on 45 105 150

7.
spindling (30) (70.0) (100.0)

45 105 150
8. Effect of bobbin on spinning
(30) (70.0) (100.0)

Effect of fibre quality on machine 45 105 150

9.
capacity utilization (30) (70.0) (100.0)

Machine operations required per 45 105 150

10 .
day for break even (30) (70.0) (100.0)

61.2 88.8
Average 150
(40.8) (59.2)
(100.0)
Figures in brackets are percentages to row total.

Based on the index scores, the respondents are grouped in to three categories

viz., low, medium and high level. High scores (ranging from 7 to 10) denote high

level of knowledge while low scores (ranging from 0 to 3) denote low level of

knowledge on the production capacity of the spinning unit. The details are presented

in tables 4.09 and 4.10.

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 Table 4.10

Knowledge level on the production capacity of the coir yarn production unit
Knowledge level Number of respondents
S. No
(index score range) F %

1. Low (upto 3) 105 70.0

2. Medium (4-6) 6 4.0

3. High (7-10) 39 26.0

Total 150 100.0

• Minimum index score is 2 and maximum index score is 10.
• The mean index score is 4.08 out of 10.

It is found that all the respondents could able to answer only to the

rudimentarial details pertaining the production capacity of the spinning unit. They

know about the number of slived fibre to be fed in to the slivering machine and the

effect of bobbins5 RPM on the length of the coir yam. Mere observation of the

spinning unit can enable anyone to know about the number of slived fibre to be fed in

to the slivering machine and also the effect of bobbins ‘RPM’ on the length of the coir

yarn. Whereas knowing much details on the production capacity of each machine and

the factors affecting the capacity utilization including the significance of line-

balancing in the production process requires an in-depth learning and understanding.

Table 4.09 shows that majority of the respondent do not have in-depth understanding

of the production capacity of the spinning unit.

Classification of the respondents based on their index scores on knowledge

about the production capacity of coir yam spinning units, reveals that the mean index

score is 4.08 out of 10. This indicates possessing low level of knowledge on the

production capacity of machines of the coir yarn spinning units. As high as 70 per

124
cent of respondents lie under low level category and only 26 per cent of the

respondents are found under high level category.

Knowledge about Machine Maintenance and Management

Machines and buildings are wearing out all the time, so, from time to time,

they need maintenance. On machines, wear on shafts, bearings, gears, belts and other

part makes repair necessary. Good maintenance prevents break downs (Franklin. G.

Moore, 1965). The biggest cost of maintenance is usually not the cost of doing

something about it but instead is the cost of ‘down for repairs’. Break downs stop

production, make men and machine idle, cause lost production, and put orders behind

schedule. Break down repairs may have to be done on over time and getting orders

back on schedule may take more over time.

Break down repairs are also often bigger jobs than preventive repairs.

Preventive maintenance means preventing break downs that cause work stoppages.

Preventing maintenance helps to reduce repairs, particularly those caused by break

downs of machines in use. Although preventive maintenance cannot eliminate repairs

wholly as machines do wear out, it is essential that expenditure on maintenance

should be boosted particularly of the preventive kind. Preventive break downs in a

production enterprise usually depends on

(i) not overloading the equipment

(ii) regular greasing and oiling of all moving parts and
(ill) replacing worn parts before they get bad. It helps to keep on handa
small stock of hard-to-get repair parts. Better yet, on criticalitems, to
have stand-by (extra machines/motor/gear box and the like) ready to
put in if the regular are going bad. So that the entrepreneurs will be the
happiest man when nothing breaks down during production.

125
 So far as coir yarn production is concerned, machine maintenance is very

important and it is to be regarded as one amongst the production functions. In fact,

the entrepreneurs taking up coir yam spinning has to view it very seriously because;

the machines are not highly standardized so far as their features are concerned and

they are mostly ‘assembled’. Moreover the manufacturers are not ‘corporates’; they

are small entrepreneurs where in ‘high tech’ technologies are seldom used. They are

being operated in the work shed by unskilled/semi skilled workers (labourer)

employed on daily wage rate, knowing hardly about the principles and procedures

pertaining the machine operation. Similarly, the people engaged for attending to

machine repairs are also not professionally skilled and usually they are local

technicians of ‘generalist’ and not the ‘specialist’. Moreover the cost of repairs will

be high since the wages paid for technician is not standardized. It is learnt that

production stoppage seems to be very less in spinning units where the entrepreneurs

him/herself is capable of attending to the repairs as and when occurring in the

machines. Hence it is essential that coir yarn spinning entrepreneurs need to have

both the knowledge and skill on machine maintenance and management.

To know, whether the respondents know about the significance of machine

maintenance and management particularly with reference to production cost

reduction, maximization of production and production capacity utilization and

prevention of damages / hazards/ accidents and the like or not?. Whether they know

about the probable repairs occurring in different parts of the machines that are used

for coir yarn spinning or not? Whether they know about keeping the spares/ parts/

126
 Table 4.11
Knowledge about the machine maintenance and management
Number of respondents
(N=150)
S. No Details
Total
Yes No

Probable repair occurring in the 150 150

1. — (100.0)
willowing machine (100 .0 )

Probable repair occurring in the 150 150

2. — (100.0)
slivering machine (100 .0 )

Probable repair occurring in the 150 150

3. — (100.0)
spinning machine (100 .0 )

150 150
4. Tools and equipments required — (100.0)
(100 .0 )

Spares and parts to be kept 150 150

5. — (100.0)
always (100 .0 )

Effect of production stoppage due 150 150

6. — (100.0)
to repairs etc. (100 .0 )
Significance of spending an hour
75 75 150
7. daily on machine maintenance (100.0)
(50.0) (50.0)
and management
Significance of maintaining 150 150
8. — (100.0)
machines through skilled persons (100 .0 )
Probable locations in the
150 150
9. production process where ~ (100.0)
(100 .0 )
hazards/accidents occur
Preventive measures against 119 31 150
10 .
hazards/accidents (79.3) (20.7) (100.0)

139.4 10.6 150

Average (7.1)
(92.9) (100.0)
Figures in brackets are percentages to row total.

accessories, including lubricants etc., as spare - by or not? and the like, a few

questions are administered among the respondents and their binary responses are

obtained and scored (Yes=l; No=0). The mean score is 8.7lout of 10. Index scores on

knowledge on machine maintenance and management for each respondent is

estimated and accordingly they are grouped in to three categories viz; Low level;

Medium level and High level. High scores (ranging from 7 to 10) denote high level
of knowledge on machine maintenance and management while low scores (ranging

from 0 to 3) denote low level of knowledge of the respondents. The details are

presented in table 4.11.

As shown in Table 4.11, almost all the respondents have fairly a high level of

knowledge on the machine maintenance and management of the coir yarn spinning

unit. They know about the probable repairs occurring in willowing, slivering and

spinning machines. They know the significance of keeping stand-by machine parts /

lubricants / belts, the tools and the hard-to-get-repair parts etc., that are very essential

to overcome/avoid production stoppages due to machine repairs. The mean index

scores is 8.71 out of 10. This indicates high level of knowledge possessed by the

respondents. However, majority of the respondents do not know the preventive

measures against damages / accidents / hazards that may occur during machine

operations. Simply they find justified with the workers’ carelessness / laziness as

reasons for accidents/hazards. Similarly although majority of the respondents do

know about the significance of machine maintenance, they seem to be little reluctant

to regard machine maintenance as one amongst the production functions.

Knowledge on the Inventory Norms in the Production of Coir Yarn

Inventory is ‘money’ temporarily in the form of ‘raw materials’ and

‘purchased items’ to be used in making products. Some are finished products kept in

store room/godown. But it is not at all like money in the bank. It is money on which

one has to pay interest instead of earn interest. Because they take up space; they tie

up money; they need to be kept trunk of; they need to be protected from the weather

and spoilage. Add together all of these commonly used as the cost of carrying

inventories. Inventory ‘control’ keeps track of inventories. It aims at

(i) Never running out of anything, while (ii) Never having much of anything on hand

128
and (iii) Never paying high prices because of buying in small quantities (Franklin G,

Moore, 1965), These require planning of materials requirement i.e., to determine the

items of inventories needed, the quantities and their accessibility when they are

needed. Because it maximizes customer service; it helps for low-cost plant operation;

it enables for minimum inventory investment (JR. Tony Arnold,et.al, 2005).

So far as coir yarn spinning (production) is concerned, raw materials in the

form of coconut husk fibre, the synthetic yam to be used to create the product form,

the lubricants, the spares/parts including tools and the like, are referred as inventories.

Among them, the raw material i.e., the coconut husk fibre in terms of value and

volume, occupies the first place of importance. The coir yarn spinning entrepreneurs

need to have thorough knowledge as the minimum, maximum and safety level stocks

of fibre to be maintained; and the necessary spares/parts including the tools to be kept

ready to prevent and eliminate ‘idle work’ in the spinning unit; the daily consumption

requirement of the fibre; the maximum time taken to receive fibre from the suppliers,

the quantum of fibre that go waste while put in to the production process, similarly the

quantity of coir yam (finished product) that goes waste as ‘rejectables’ during final

quality check-up and the like.

To know, whether the respondents have knowledge or knew about these and

other standards pertaining the materials/inventory management or not? a few

questions are administered and the responses of the respondents are obtained in binary

answers and scored (Yes=l; No=0). The index scores for each respondent is

computed and analyzed. High scores (ranging from 7 to 10) denote high level of

knowledge on the inventory standards while low scores (ranging from 0 to 3) denote

low level of knowledge of the respondents. The details are presented in tables 4.12

and 4.13.

129
 Table 4.12
Knowledge about the inventory norms in the production of coir yarn

Figures in brackets are percentages to row total.

130
 Table 4.13
Knowledge level on the inventory norms

Knowledge level Number of respondents

S. No
(index scores range) F %
Low
1. 109 72.7
(upto 3)
Medium
2. 41 27.3
(4-6)
High
3. — —
(7-10)
Total 150 100.0
• Minimum index score is 1 and maximum index score is 6.
• The mean index score is 2.25 out of 10.

As shown in Table 4.12, majority of the respondents lag behind in the

knowledge on the inventory standards. The mean index scores is 2.25 out of 10

(Table 4.13). This indicates poor knowledge on the standards pertaining inventories of

the coir yarn spinning unit. Yet, they have taken up entrepreneurship on coir yam

production very courageously on the hope that they can learn of the things while

doing the entrepreneurial activities.

Knowledge about the Markets of Coir Yarn

Marketing is as important as production. Production is useless unless markets

are found. Hence it is prudent to take up production only after knowing the markets.

So far as coir yam is concerned, the demand for it is increasing both in domestic and

foreign markets. It is known as the ‘wonder fibre’ all over the world (Coir Board,

2007). Coir yam is used to produce several of coir product spectrum which include

items for home and office use, handicrafts, life style products, items for industrial use,

for environment protection and many others. Probably, those coir products that have

touched the life of almost every class of consumers are the coir yarn, doormats and

matting, coir cushions and mattresses. Together, these products bring in the maximum

131
 Table 4.14
Knowledge about the markets of coir yarn
Number of respondents
(N=150)
S. No Details
Total
Yes No

50 100 150
1. Probable end use of coir yarn
(33.3) (66.7) (100.0)

Prominent buyers of coir yarn in the 150 150

2. —
locality (100 .0 ) (100.0)

Prominent buyers of coir yarn outside 23 127 150

3. (100.0)
the locality (15.3) (84.7)

150 150
4. Govt, organizations buying coir yam —
(100 .0 ) (100.0)

63 87 150
5. Prominent industrial buyers of coir yam
(42.0) (58.0) (100.0)

150 150
6. Coir yarn variety having stable demand —
(100 .0 ) (100.0)

68 82 150
7- Period/ month when sale price is high
(45.3) (54.7) (100.0)

68 82 150
8. Period/ month when sale price is low
(45.3) (54.7) (100.0)

Period/ month when finished goods/ 74 76 150

9.
stock is to be built (49.3) (50.7) (100.0)

31 119 150
10 . Sources of market information
(20.7) (79.3) (100.0)

67.7 82.3
Average 150
(45.1) (54.9)
(100.0)
Figures in brackets are percentages to row total.

exports revenue and has endless possibilities as far as exports are concerned. India

has a share of 90 per cent of the world market for coir (Coir Board, 2007). Despite,

the marketing system for coir yarn is not well organized and perfected (Coir Board,

2007). Majority of the spinners do depend on the private local traders / merchants and

are vulnerable as they are not organized. The ‘price-spread’ is very large. Moreover,

the price of coir yam varies and differs temporally, spatially and physically (Coir
Board, 2007). Yet, it is learnt, the actual price-realised by the spinners (coir yam

entrepreneurs) seems to be encouraging over years. This could be the major reason

for the adoption of entrepreneurship on coir yam.

Whether the respondents know about the markets of the coir yam or not? Do

they know about the coir yam variety which has stable demand in the market? Do

they know the buyers of coir yarn in their locality including the government

(organizational) and industrial users? Do they know the period / month when the price

for coir yam is high or low or stable? Do they know the period / month when coir

yarn stock (finished good) is to be built in anticipation of the high price in the market?

Where and from whom they get market information? and similar such other issues for

which the respondents have knowledge or not is assessed. The binary responses of the

respondents are obtained and scored (Yes=l; No=0). The index scores on knowledge

of the markets for coir yam for each respondent is computed and accordingly the

respondents are grouped in to three categories of knowledge level High scores

(ranging from 7 to 10) denote high level of knowledge and low scores (ranging from 0

to 3) denote low level of knowledge of the respondents. The details are presented in

tables 4.14 and 4.15.

As shown in table 4.14, majority of respondents do not have knowledge on a

few specific aspects such as probable end use of the coir yarn, the prominent buyers

found in outside the locality including the government organization, industrial buyers

and the organized sources for market information. Whereas a fair number of

respondents seem to have knowledge about the period / month when the coir yarn

price will be low / high / stable, while all the respondents know about the prominent

buyers of coir yarn found in their locality.

Classification of the respondents based on the index scores as shown in Table

4.15, reveals that the mean index scores is 4.51 out of 10. This implies low level of

133
 Table 4.15
Knowledge level on the markets of coir yarn

Number of respondents
Knowledge level
S. No
(index scores range)
F %
Low 44,7
1. 67
(upto 3)
Medium
2. 54 36.0
(4-6)

High
3. 29 19.3
(7-10)

Total 150 100.0

• Minimum index score is 2 and maximum index score is 9.

• The mean index score is 4.51 out of 10.

knowledge about the markets for coir yarn of the respondents. As high as 44.7 per

cent and another 36 per cent of the respondents are found under low and medium

level knowledge categories respectively.

Prior Experience/Involvement in coir yarn production

Human beings are regarded as human resources only when necessary skill is

possessed to accomplish the given task (Arthur, 1994; Marc Cowling, 2004).

Experience is a sub-set of human capital which enhances knowledge and skill of an

individual and influences over the performance (Marc Cowling, 2004). The role of

human capital generated thorough experience has been central to the success of

entrepreneurship. Chrisman, Me Mullar and Hall (2005) found that prior experience

as a control variable has a positive correlation with increase in sales performance.

Frank R. Lichtenberg and Moshe Kim (1989) found that prior experience has

contributed for increased capacity utilization and cost reduction and eliminates/

prevents machine repairs/wear outs. People with prior experience seem to have high

degree of managerial leadership (Shane, 2003) and accurate forecasting.

134
 Table 4.16

Prior Experience in Coir Yarn Production / Entrepreneurial activities

Response Number of respondents

S. No
Entrepreneurial Yes No Total
activity
Coir yam production 45 105 150
1.
process (30.0) (70.0) (100 )
27 123 150
2. Raw material procurement
(18.0) (82.0) (100 )
47 103 150
3. Overall supervision
(31.3) (68.7) (100 )
28 122 150
4. Quality control
(18.7) (81.3) (100 )
29 121 150
5. Labour management
(19.3) (81.3) (100 )
28 122 150
6. Machine maintenance
(18.7) (81.3) (100 )
26 124 150
7. Sale of coir yam
(17.3) (82.7) (100 )
Accounting & book 28 122 150
8.
keeping (18.7) (81.3) (100 )
Figures in brackets are percentages to row total.

Kamisan Gadar.et.aL, (2009) found that entrepreneurs income has positively

correlated with both education level and experience level. Hence it is presumed that

coir yarn entrepreneurs with prior experience in coir production process/coir

entrepreneurial practices could record performance in their entrepreneurship to a

greater extent than others.

The study finds that majority of the respondents do not have prior experience

either in coir production process or entrepreneurial activities including machine

maintenance and management, and on an average 30 percentage of the respondents

are reported to have prior experience in coir production process particular spinning

operation; and 18 - 31 percentage of the respondents possess prior experience in coir

135
entrepreneurial practices such as procurement; quality control, labour management,

overall supervision, book keeping and sale process. The index scores on prior

experiences is computed and the estimated mean score in 5.71 out of 51. This shows

the lack of prior experience in the production process/entrepreneurial practices related

to coir yam among the respondents.

Acquisition of Prior Knowledge in Entrepreneurship on Coir Yarn

Chances to become entrepreneurs to the individuals are more to those who are

from a business family than others. Historically evidences shows that they do most of

the times their own family businessess and do not go for diversification (Bhanushali,

1987; V.K. Tewari, 1990; Hyrsky and Tuunamen, 1999). On the contrary in general,

entrepreneurial learning occurs in a process of personal interaction with environment

aiming at discovering, evaluating and exploiting opportunities.

Additionally, the knowledge gained as a result of social interaction is in higher

level than the learning acquired through formal education. Similarly the knowledge

gained as a result of actual involvement is in higher level than that acquired through

social interaction. The synergetic learning is more in-depth and last longer (Man and

Yu, 2007; Smith, Collins and Hannon, 2006). It is revealed that social interactive

learning enhances creativity and innovativeness (Ko and Butler, 2007; Rae, 2000/

while experiential learning enables for effective decision making.

As such it is true that no one aspires to become an entrepreneur without

acquiring knowledge /skill on the enterprise which he/she wishes to establish and the

coir yarn spinners are not exemption.

136
 Table 4.17
Mode of acquisition of Prior Knowledge/ Skill on Coir Yarn Production
Response Number of respondents
S. No
Yes No Total
Mode
150 150
1. Formal training —
(100 .0 ) (100)

73 77 150
2. Work experience
(48.7) (51.3) (100)

75 75 150
3. Observation visits
(50.0) (50.0) (100)

150 150
4. Social interaction —
(100 .0 ) (100)

Figures in brackets are percentages to row total.

Although majority of the respondents do not have prior experience on coir

production process/entrepreneurial practices, it is foimd that they have entered in to

coir yam spinning as an entrepreneurial activity only after acquiring adequate

knowledge/skill on coir production - its processes, the yarn quality, sources of

suppliers of inputs and sources of sale of output, the market and the like. Table 4.17

shows that only 48.7 per cent of the respondents have acquired the knowledge / skill

on coir yam spinning including entrepreneurial practices through personal

involvement i.e., work experience as majority of them have the coir yam spinning as

their traditional occupation. Whereas, it is found that all the others have acquired the

knowledge through social interaction and observation visits to coir yam spinning units

and none of them have acquired the skill/knowledge through formal training.

To sum up, majority of the respondents do not possess prior experiences/skill

on coir yam production including entrepreneurial practices. Those who adopted coir

yarn spinning as their traditional occupation have acquired the required knowledge

and skill through work experience. All others who entered in to entrepreneurship on

137
coir yam have acquired the knowledge/skill through observation visits to spinning

units coupled with social interaction with those involved in coir yarn spinning/

entrepreneurial practices. None of the respondents have acquired the knowledge /

skill through fomial training.

Analysis of Relationship among a few variables

Entrepreneurs are not bom, they are made (W.B. Gartner, 1988) by

environment. Economic, social, political and psychological factors constituting the

macro and micro environment of an entrepreneurs, often nomenclatured as supporting

conditions enable for entrepreneurial development (Tapan, 2002; Marias sunt e

Giannetti, 2004; Hansen, 2001; C. Y. Woo, et.al, 1991). However it requires a

completely different set of skills to manage resources, foresee opportunities and stay

ahead of time. Viral Acharya, et.al.,(2004) say that it is crucial to know the

knowledge level as a feature which play a role in defining a successful entrepreneurs.

Keeping these and others in view, an attempt has been made to assess the knowledge

level of the entrepreneurs under study. Further, the study presumes existence of

relationship between knowledge level and a few independent variables of the

entrepreneurs. Because during field visit, it is learnt that coir yam entrepreneurs with

fair level of economic and social status seem to have fair level of knowledge about

their coir yam entrepreneurial activities. Similarly entrepreneurs who had prior

experience in coir yarn entrepreneurial activities have high level of knowledge on

production, processing, inventory details including marketing of coir yarn.

Entrepreneurs with high level of achievement orientation are found with high level of

knowledge. Although literatures pertaining the cross-analysis on the nature, type and

extent of relationship prevailing between /among the entrepreneurial knowledge and

the social, economic, personality and prior experience factors of the entrepreneurs are

138
available elsewhere, an attempt is made to find out whether any relationship exists or

not? on the following variables.

i) Demographic variables such as age, gender, educational status and the

entrepreneurial knowledge level of the respondents.

ii) Economic variables such as income, pattern of adoption of coir yarn

spinning as occupation, assets possessed and entrepreneurial knowledge.

iii) Social variables such as social participation, exposure to mass media,

neighbourliness and contact with change agents and the entrepreneurial

knowledge level of the respondents.

iv) Personality factors such as scientific orientation, achievement orientation,

and management orientation and the entrepreneurial knowledge level of the

respondents, and finally

v) Prior experience in coir yam entrepreneurial activities and entrepreneurial

knowledge level of the respondents.

Demographic Variables Vs Entrepreneurial Knowledge

The results of Pearson Correlation Test as shown in Table 4.18, depicts the

existence of relationship between demographic variables such as age, gender and

educational level and the entrepreneurial knowledge level of the respondents.

Age as a variable has negative relationship with the entrepreneurial knowledge

level of the respondents. This indicates that coir yam entrepreneurs under young age

category seem to have high level of entrepreneurial knowledge. The pearson

correlation value is (-) 0.341 which is significant at 0.01 level.

139
 Table 4.18
Relationship between Demographic variables and Entrepreneurs knowledge

*denotes significant evel

Gender of the respondents as a variable also has significant level of negative

correlation with the entrepreneurial knowledge level of the respondents. Pearson

correlation value is (-) 0.548 which is significant at 0.01 level. In our analysis, the

binary variable viz, male is scored as one and the female as dummy. Hence the

results of Pearson correlation indicates that female respondents are likely to have high

level of entrepreneurial knowledge.

Education level of the respondents as one of the demographic variables also

has strong negative relationship with the variable viz., entrepreneurial knowledge

level of the respondents. The Pearson correlation value is (-) 0.187 which is

significant at 0.01 level. This indicates that coir yarn entrepreneurs with low level of

formal education are likely to possess high level of entrepreneurial knowledge on coir

yarn spinning.

Thus the analysis reveals that coir yarn entrepreneurs (the respondents) under

young age category, predominantly the women folk and possessing low level of

formal education are likely to have high level of entrepreneurial knowledge on the

140
coir yam spinning / production. It is true that coir yam spinning as an entrepreneurial

activity is largely promoted for self employment generation among youth, who do not

possess high level of formal education. Moreover, it is being encouraged among

women in rural areas, aiming at providing empowerment benefits. Hence, they could

have acquired more knowledge about coir yam spinning than others. This may be the

reason.

Social Variables Vs Entrepreneurial Knowledge

The study considered the aspects such as social participation, mass media

exposure, change agents contacts and neighbourliness as social variables and analysed

their relationship with the variable viz., entrepreneurial knowledge level on coir yam

spinning entrepreneurial activity. As shown in Table 4.19, the study finds existence

of no relationship among the variables except the variable viz., the contact with

change agents of the respondents. It is quite surprising that social participation as

well as mass media exposure do not likely to provide for knowledge acquisition on

coir yam spinning. Rather the change agents seem to play an important role enabling

for the acquisition of high level of knowledge 011 coir yarn spinning.

Economic Variables Vs Entrepreneurial Knowledge

The study finds that the economic variables such as family annual

income, and the pattern of adoption of coir yam spinning either as primary or

secondary occupation and the total value of assets possessed by the respondents have

no relationship with entrepreneurial knowledge level of the respondents. The Pearson

correlation value for family annual income level, the pattern of adoption of coir yarn

spinning as occupation and the value of total assets possessed are 0.107, (-) 0.069 and

0.009 respectively with the entrepreneurial knowledge level explaining that they are

141
 Table 4.19
Relationship between the Social variables and the Entrepreneurial knowledge on
coir yarn spinning

♦denotes significant level

not significant (Table 4.20). This inference is on our expected line. Because several

studies (V.K.Tewari, 1990; N.M.Panda, 2000) reveal that, economic status of an

individual plays an important role in entrepreneurial developement. People with fair

economic status are witnessed to have aspired, entered and sustained in their

entrepreneurial activities; while people with low level of economic status are highly

prone for daily wage labouring, wishing to acquire skills enabling them to earn

stable/fixed income through servicing.

So far as coir yarn spinning entrepreneurship is concerned, people with

economic status above the level of ‘subsistance living’ can invest a little amount of

capital beyond the borrowed funds (either obtained from organized financial

institution or unorganized financial agencies), with the confidence of bearing the

financial risks involved in the entrepreneurial activities. They venture in to

entrepreneurial activities with the sole objective of substituting the income level

142
 Table 4.20
Relationship between Economic variables and the Entrepreneurial knowledge

♦denotes significant level

through their entrepreneurial commitment. More over they are unable to aspire for

small and medium enterprises since the capital to be invested as ‘down payment’ is

scarce at their disposal. In these context, the inference drawn from the above analysis

is justified and concluded that the people with moderate economic status are likely to

acquire entrepreneurial knowledge on coir yarn spinning to a larger extent than, others.

Personality and Prior Experience Vs Entrepreneurial Knowledge

Personality traits of the respondents are gauged through the scientific,

achievement and management orientations of the respondents. The relationship

existing with the variables viz., Entrepreneurial knowledge on coir yarn spinning has

been estimated with the help of Pearson Correlation Test. As shown in Table 4.21, all

the three variables pertaining the personality traits of the respondents have strong

positive relationship with the variable: entrepreneurial knowledge on coir yarn

spinning. This finding is very important and therefore considered very seriously, in

the context that irrespect of economic and social status, people with high level of

personality traits are likely to have acquired entrepreneurial knowledge on coir yarn

spinning to a larger extent than others.

143
 Table 4.21

Relationship between the Personality and Prior experience variables and the
entrepreneurial knowledge on coir yarn spinning

♦denotes significant level

Studies by Marc Cowling, (2009), Kristiansen et.al., (2003), Kamisan Gadar

et.al.,(2005) and Nonaka (1994) reveal that prior experience on the entrepreneurial

activity which form the base for the present entrepreneurial activity, play an important

role on the entrepreneurial development / success of the individual. Mueller (2006)

evidences that experience gained through the family occupation / social group / social

interaction contribute for entrepreneurial success. So far as coir yarn spinning is

concerned, the prior experience includes the experience in production process and the

experience in managerial / trade / merchandizing activities, put together nomenclature

as entrepreneurial experience. As shown in Table 4.21, the study finds the existence

of strong relationship between the variables such as prior experience on coir yarn

entrepreneurial activities and the entrepreneurial knowledge on coir yarn. The

Pearson Correlation value is 0.312 which is significant at 0,01 level. This indicates

the existence of strong relationship among these variables.

144
Conclusion

It is true that nobody enters in to any field of entrepreneurial endeavour

without having adequate knowledge about the entrepreneurial activity. The coir yarn

spinning entrepreneurs have entered in to this field only after acquiring knowledge on

the various aspects of the coir yarn which includes the product features, the

machineries used, the production process involved, the resources needed and the

markets for the disposal of the coir yarn. They have acquired the knowledge through

field visits and social interactions, besides through work experience. However, the

analysis made in this chapter shows that majority of the respondents under study have

fair level of knowledge 011 the general aspects such as the machines used, the raw

materials used, the production process involved, and the buyers of the coir yarn in the

markets and the like. They do not have indepth knowledge on the production

technologies, scheduling and loading of the machines for line-balancing and capacity

utilization, inventory keeping and the norms associated with it, quality control and

standardization of coir yarn and the like. It is learnt that coir yam spinning

entrepreneurs falling under young age category, possessing low level of formal

education have acquired fair level of knowledge pertaining the coir yarn production as

well as the markets. Prior experience in the production and trade practices, and

change agents contact are found to have enabled for the acquisition of high level of

knowledge, while economic status of the respondents is not related with knowledge

level. The new-entrants to entrepreneurial activity on coir yarn do not have prior

experience. However they have ventured in to entrepreneurship only after acquiring

entrepreneurial knowledge /skill on coir yarn through social interactions coupled with

field observational visits to coir yarn spinning units.

•k'k-k'k'k-k'k'k

145
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