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Entrepreneurship and Motivation in Small Business Sector of Kerala - a Study of Rubber Products Manufacturing Industry

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Entrepreneurship and Motivation in Small Business Sector of Kerala - a Study of Rubber Products Manufacturing Industry ENTREPRENEURSHIP AND MOTIVATION IN SMALL BUSINESS SECTOR OF KERALA - A STUDY OF RUBBER PRODUCTS MANUFACTURING INDUSTRY ‘Dicsis sufimitted to tfie Cocfiin University of Science and ‘fecfinofogy for tfic award of tfie Qegree of DOCTOR OF PHILOSOPHY IN ECONOMICS ‘Under tfie Tacufty of Sociaf Sciences By MATHEW EMMANUEL 1856;»/»/o~Z/60 ‘Umfcr tfie Supervision of DR. P. ARUNACHALAM Reader, Department of Applied Economics DEPARTMENT OF APPLIED ECONOMICS cocum UNIVERSITY OF SCIENCE AND TECHNOLOGY KOCHI-682 022, KERALA MARCH 2004 DEPARTMENT OF -APPLIED ECONOMICS COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY KOCHI - 682 022, KERALA, S. INDIA so 1> Phone 10484 - 576030, 575943 -QT - Fax : 0484 - 576030, 575943 i-~­ E-mail :[email protected] lp.¢$lQlIU‘Il"3 4‘ "9-_‘_'v°°' T Date ............................ .. Glertifinate Certified that the thesis "Entrepreneurship and Motivation in Small Business Sector of Kerala - A study of Rubber Products Manufacturing Industry” is the record of bona fide research work done by Mr. Mathew Emmanuel under my supervision and guidance. The thesis is worth submitting for the award of the degree of Doctor of Philosophy in Economics under the Faculty of Social Sciences. /' i'\"'"~----­ ._ k___ I Dr. P. Arunachalam Reader, Department of Applied Economics Cochin University of Science and Technology, Kochi- 682 022 K0chi- 682 022 17 March 2004 CI oi I“ I/ / i-C‘ 4.1a-.\ LC‘ \\g/V * -\ &_ ‘ ___,.-/‘<3/‘Ly S 2 / ‘~/\’-> . * 0) /""-i-.—‘ \ \/O) I// /P__ ,_ . ¢ -\I ' \\ \\ "LU . \ ‘.' i-'77; J 1: :‘ .“\ >.' f‘\ ';- .."_, \+=\‘t '4 ‘" ‘T? .2" DECLARATION I hereby declare that this thesis entitled “Entrepreneurship and Motivation in Small Business Sector of Kerala - A Study of Rubber Products Manufacturing Industry” is the record of bona fide research work carried out by me under the supervision of Dr. P. Arunachalam, Reader, Department of Applied Economics, Cochin University of Science and Technology. I further declare that this thesis has not previously formed the basis for the award of any degree, diploma, associateship, fellowship or other similar title of recognition. Mathew Emmanuel Kochi 682 022 17 March 2004 ACKNOWLEDGEMENT At the very outset, with great respect and love I express my deepest sense of gratitude to my guide Dr. P. Arunachalam, Reader, Department of Applied Economics, Cochin University of Science and Technology, for his valuable guidance, friendly but sharp criticisms, ever willing help and unflinching encouragement during my research work. My sincere thanks to Dr. D. Rajasenan, Dean, Faculty of Social Sciences and the Head of the Department of Applied Economics, Cochin University of Science and Technology, for his timely help in every aspect of my work. I am grateful to Dr. M.K. Sukumaran Nair, Dr. Meera Bai and Dr. Martin Patric, Faculty members in the Department of Applied Economics, Cochin University of Science and Technology, Kochi for their valuable help in many ways. I am grateful to Dr K. C. Shankaranarayanan, fonner Dean of the Faculty of Social Sciences and also former Head of the Department of Applied Economics, Dr Mary Joseph and Dr Francis Cherunilam, School of Management Studies, Cochin University of Science and Technology for their help in every phase of my research. I received full help and cooperation from Mr. M.I. Varghese, General Manager, KITCO Ltd., Emakulam; Dr. P.M. Mathew, Director, Institute of Small Enterprises and Development, Cochin, Dr Mathew George, Senior Faculty, Centre for Management Development, Trivandrum, Mr. Chandrachoodan Nair, Chief, Industry & Infrastructure, Planning Board, Trivandrum and Dr. J. C. Panday, Director, Small Industries Service Institute, Trissur and Mr. Tom Jacob, Statistician, Rubber Board, Kottayam I acknowledge my deep sense of gratitude to the Librarians of the Department of Applied Economics and the School of Management Studies of Cochin University of Science and Technology, the Rubber Research Institute of India, Kottayam, Centre for Development Studies, Trivandrum, State Planning Board, Trivandrum, Centre for Management Development, Trivandrum, IIM, Bangalore, and National Institute of Small Industry Extension Training (NISIET), Hyderabad. My special thanks are due to the administrative staff of the Department of Applied Economics of the Cochin University of Science and Technology for their kind and sincere services in all kinds of official correspondence. I am indebted to the entrepreneurs of the SSI rubber units which I surveyed, for their co-operation and help extended to me. My profound gratitude to Dr. James Joseph, Head of the Dept. of Psychology, Deva Matha College, Kuravilangad, who gave me valuable assistance in conducting Thematic Apperception Test. My heart felt thanks are also due to Dr. V.K. Ramachandran Nair, Head of the Dept of Statistics, Cochin University of Science and Technology, Kochi and Dr. K.K. Jose, Head of the Dept. of Statistics, St. Thomas College, Palai for their help in many ways. I am extremely grateful to UGC, New Delhi, for awarding faculty improvement programme and financial assistance to pursue my research work. My sincere thanks are due to V.M.Thankamma, General Manager, District Industries Centre, Kottayam, C. Kamalamma, Manager, District Industries Centre, Emkulam, Aruna Sundararajan LAS, Director of Industries and Commerce, Government of Kerala, Trivandrum, D. Syama Prasad, President of the Kerala State Small Industries Association, P. Udaya Shanker, Director, NISIET, Hyderabad, and Sudhir Kumar, Consultant N.S. Raghavan Centre for Entrepreneurial Leaming, IIM Bangalore and Prof. R. Muralidhar, XIME, Bangalore for their help in many ways. I owe a lot to my family for their kind help, encouragement and prayers. Had it not been for that, I would not have been able to embark on this ambitious programme. Above all, with whole heartedness, I thank God Almighty for the successful completion of this work in time. Mathew Emmanuel CONTENTS Page Chapter 1 Introduction and Methodology ............................................... ..l Chapter 2 Entrepreneurship and Motivation: Conceptual Framework and Review of Literature .................................. ..22 Chapter 3 Present Status of Small Business Sector of Kerala .............. ..79 Chapter 4 Indian Rubber Industry —An Overview .............................. ..124 Chapter 5 Socio-Economic and Motivational Settings of Entrepreneurship: Findings of the Study ............................ ..168 Chapter 6 Summery and Conclusions ................................................. ..212 Annexure 1 Socio-Economic Questionnaire .......................................... ..221 Annexure 2 TAT Pictures ...................................................................... ..225 Annexure 3 Instruction for taking projective Test ................................. .228 Annexure 4 TAT Score Sheets ............................................................... ..229 Annexure 5 Scoring system used for nAch, nAff, and nP0w ................ ..230 Bibliography ............................................................................................ ..231 Table N0LIST OF TitleTABLES Page Examples of nAch Stories ............................................................ .. l3 Sample Size and the Universe ..................................................... .. 15 Design for the Study .................................................................... .. 16 Distinction between Entrepreneur and Entrepreneurship ............ .. 24 Entrepreneurs ............................................................................... .. 25 Factors Influencing Entrepreneurship .......................................... .. 52 Factors Which Prompted the New Entrepreneurs to Enter Entrepreneurship ................................................................ .. 74 Norms for Definitions of SSI ....................................................... .. 95 SMEs in Asian and other Countries ............................................. .. 99 Overall Perfonnance of Small Scale Industry, 1993-94 to 2000-01 .... .. 102 Labour and Capital Productivity and Relative Productivity of SSI, Large—S'cale and Total Factory Sector ........................... .. 105 Overall Industrial Sickness 1991-99 (Rs.Crore) ........................ .. 106 State-wise Distribution of Registered SSI Units, Working Units and Closed Units as per the Third All India Census of Small-Scale Industries .............................................. .. 108 Growth of the Small-Scale Sector (SIDO units) in Kerala and All India — A Comparative Perspective: 1972-73 to 1987-88 116 Structure of the Small Scale Sector: Product Group Wise by Percentage share in Total Employment: SIDO units: 1987-88.... 118 Performance of Small Scale Sector ........................................... .. 121 District-wise Details of Small-Scale Industrial Units Registered in Kerala as on 31“ March 2003 .............................. .. 122 NR production in the important NR producing countries in Asia (‘000tonnes) ................................................... .. 128 Key Indicators of the Indian Rubber Industry (2001-2002) ...... .. 129 Rubber Consumption by the Top Five (Unit: Metric tonnes) .... .. 139 Production, Import, Export and Consumption of Natural and Synthetic Rubber (Tonnes) .................................... .. 140 Area under Rubber Cultivation in Kerala .................................. .. 141 4.6 Production of Natural Rubber in Kerala .................................... .. 142 4.7 Average Yield per Hectare of Rubber Cultivation
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