MSME entrepreneurship training in India project report

MSME
entrepreneurship
training in India
A brief report on training &
opportunities in India
Lokesh Sharma(IMT Ghazibad)
Pooja Agarwal(XIMB)
Vivek Kumar(IIM Indore)

1
1 MSME entrepreneurship training in India
Letter of transmittal
July 22, 2014
The Director,
Rangnekar Institute of Management Studies & Research,
Dear Sir,
This letter transmits the report that discusses on the opportunities and training available for MSME
entrepreneurs in India. A secondary research as well as primary research has been conducted for need
gap analysis. Finally recommendations are given based upon the research conducted. In case you
require any other information please feel free to contact us.
Sincerely,
Vivek Kumar(IIM INDORE)
Pooja Agarwal(XIMB)
Lokesh Sharma(IMT Ghaziabad)

2
Executive Summary
This report provides an insight to the available training options in India for MSME entrepreneurs and
emphasizes the opportunities available in this area. It covers the brief introduction of the MSME sector
importance to Indian economy. Various training programs especially by the government institution are
covered. Some of the course facets and requirements are elaborated through an in depth research on a
considerable base of respondents comprising of entrepreneurs, students and faculties. Finally
recommendations are given to bridge the gap between the actual and desired state of the course.

3
Contents
EXECUTIVE SUMMARY...........................................................................................................................................2
INTRODUCTION .....................................................................................................................................................4
WHY MBA FOR ENTREPRENEURSHIP?................................................................................................................................4
ROLE OF MSME IN INDIAN ECONOMY ...............................................................................................................................4
CURRENT TRAINING PROGRAMS IN MSME(INDIA) ................................................................................................6
TRAINING PROGRAMS RUNNING IN MSME-DEVELOPMENT INSTITUTE, AGRA .........................................................6
TRAINING SERVICES OF MSME, DELHI .....................................................................................................................7
MSME GUWAHATI TRAINING PROGRAMS...........................................................................................................................8
TRAINING PROGRAMS OF MSME-DIS ...............................................................................................................................8
OPPORTUNITIES.....................................................................................................................................................9
RESEARCH DESIGN AND METHODOLOGY...............................................................................................................9
SURVEY INSTRUMENT......................................................................................................................................................9
POPULATION AND SAMPLE (DATA COLLECTION):.................................................................................................................10
QUESTIONS DEVELOPED AS PART OF THE RESEARCH INSTRUMENT:..........................................................................................10
DATA ANALYSIS ...................................................................................................................................................11
GRAPHICAL REPRESENTATION OF THE RESPONSES TO THE RESPECTIVE QUESTIONS: ....................................................................12
CONCLUSION AND IMPLICATIONS .......................................................................................................................29
RECOMMENDATIONS ..........................................................................................................................................29
REFERENCES.........................................................................................................................................................30

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Introduction
Why MBA for entrepreneurship?
MBA is a valuable tool when starting up an enterprise or business. Many entrepreneurs start up
their business with a zeal and passion for their specific purpose but having no real sense or
knowledge of business because of which so many start ups are shut down every year. With an
MBA degree, one can get the solid base of financial and marketing understanding of the business
in order to face the various challenges ahead. The wide range of subjects makes one competent
in micro and macroeconomics, finance, accounting, marketing, human resources, etc. A proper
understanding of the overall picture and the ability to decode the statistics and the competitor’s
behavior really makes a difference in today’s market. Although deciding the correct timings to
expand or consolidate is an art in itself, its basic foundation is laid in education.
Apart from the studying the market trends and spreadsheet analysis, MBA equip one with soft
skills like leadership, communication and people management which makes one understand the
dynamics of team building . In short, an MBA fosters the spirit of innovation and
entrepreneurship in following ways:-
 Case studies approach to learn from role models and frameworks
 Benefit of learning through the peers of different disciplines and culture
 Access to global experts and resources
 Networking and brand of the business school, which may provide easier access to
acquiring some basic components of the start up
 A great place to show creativity and openness
 A safe place to experiment and fail
The best thing is the entrepreneurship cell in the MBA colleges, where one can experiment with
their ideas- and fail with less harsh consequences. This leads to a wider approach of thinking.
Exposure to inspiring people, powerful ideas, and creative thinking encourages experimentation
and new ideas. One can incur more debt, but it will lead to a whole new community of people
who can help to make one’s idea work—and in the future, maybe even participate in funding the
business. It does not guarantee success but it will provide one with many useful tools which will
be required in the future.
Entrepreneurship is a matter of heart, an attitude and an appetite to take risks and these
characteristics are in built in the personality. MBA can influence one’s attitude towards risk by
giving him the scale to measure it but the ability to take risk is one’s choice and decision.
Role of MSME in Indian economy
MSMEs play a pivotal role in the industrial economy of India. It accounts for more than 80% of
the total number of industrial enterprises with over 8000 value-added products. According to
estimated values, the sector accounts for 45% of the manufacturing output and 40% of the total

5
export of the country. It contributed significant by employing about 73 million people across 31
million units in the country. For FY11, total production coming from MSME sector was
estimated to be Rs.10957.6 billion, an increase of more than 11 % over the previous year.
Fixed investments in the MSME sector grew at a CAGR of 11.48 % between FY07 and FY11
with a growth in employment of more than 5%. The sector’s total production grew at a CAGR of
11.5 %, stating the significant contribution to Indian economy.
The MSME sector in India is highly heterogeneous due to difference in the size of the
enterprises, variety of products and services and levels of technology. Along with its role in
providing employment opportunities at comparatively lower capital cost than large industries, it

6
also helps to industrialize then rural and backward areas thus reducing regional imbalances and
leading to more equitable distribution of national income. They are like complement to the large
industries and contribute efficiently to the socioeconomic development of the country.
Owing to the vital role of MSMEs in the Indian economy, Government is giving high priority to
its financing and development. Ministry of MSME is conducting a number of programs for skill
development through its National level Entrepreneurship Development Institutes, MSME-
Development Institutes, Tool Rooms and Training Centers. Institutions like SIDBI, SFCs,
NBFCs, Schedule Commercial Banks(SCBs), etc. are meeting the long term fund requirements
of the MSMEs because of their vital role in the economy.
Current training programs in
MSME(India)
Currently, the MSME-Development institutes, established by the ministry of MSME are
imparting training in this field. Let’s have a look on some of these:-
Training Programs Running in MSME-Development Institute, Agra
Entrepreneurial and Skill Development Programs
- Computer Accounting
- Leather Footwear & Leather Goods
- Computer Application
- Computer Hardware maintenance
- Beautician Course for Women

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- Computer Networking
- Fashion Technology Course For Women
- Call Centre Management
- Food Processing
- Baking Technology
- Mobile Repairing
- Refrigeration & Air Conditioning
- Inverter Assembly
- Chemical & Cosmetic Products
- Interior Designing
- Electrical Appliances Maintenance & Repairing
- Leather Garments
- Office Automation with Tally Accounting
- Shoe Designing
- Computerized Jewelry Designing
- Computerized Fashion Designing
- Computer Hardware & Networking And IT Enabled A/c
- Testing of Forging & Casting Items
- Dress Designing & Making
- Computerized Fashion Designing & Readymade Garment Making
- Office Automation
- Foundry & Forging
Management Development Programs
- Marketing Management
- Marketing and Sales Management
- Export Marketing Management and Documentation
- Financial Management
- Industrial Legislation
- Production, Planning and Control
- Working Capital Management
- E Commerce & E Business Fundamentals
- Management Information System with Internet
Training Services of MSME, Delhi
With an objective to support specifically to MSMEs and also to other industries for improvement
of skill of their testing personnel, the MSME-Testing Centre, New Delhi imparts following types
of training in the field of Electrical, Chemical, Metallurgical and Mechanical testing of various
products. Such trainings develop human resources, who are beneficial to all Industries, since they
get a trained graduate/diploma holder engineers and graduate chemists who may contribute for
testing and implementation of quality control activities in their respective establishments.
1. Training Programs
a. Long Term Training
MSME offers 3 months duration long-term training in specific fields throughout the year in all
the four technical divisions.
b. Specialized Training
MSME offers 15 days’ duration specialized training in specific and specialized areas on specific
request of the Industries association or individuals. This specialized training is offered

8
throughout the year. Organizing such training, however, depends on the availability of suitable
number of candidates.
c. Synchronized Training Program
This is a very special type of training program intended for industry sponsored candidates. This
training offers “hands-on-training” since the trainee will learn to test his own sample. The
Electrical Division, at the specific request of the industry, generally conducts this unique training
program.
d. Training Policy
Organizing any or all the above training programs depend on the policy and plan DC(MSME) ,
Ministry of MSME and directives time to time received from them and also on the availability of
suitable number of candidates. The training programs shall, however, be notified one month in
advance before commencement.
MSME Guwahati training programs
NATIONAL LEVEL VENDOR DEVELOPMENT PROGRAMME AT TINSUKIA from 5th
February, 2014 to 7th February, 2014.
ENTREPRENEURSHIP SKILL DEVELOPMENT PROGRAMME on “Electrical Wiring”,
"Repair & Maintenance of Power Supply, Inverter, UPS" and "Web page designing & website
maintenance" at Guwahati.
SIX WEEK long ENTREPRENEURSHIP SKILL DEVELOPMENT PROGRAMME on
“Mobile Repairing” and "Computer Hardware & Networking" at Guwahati.
ESDP on Value-added Jute products at Bagharbari, Tiniali, Guwahati -37, from 21.09.2012 to
06.11.2012
National Vendor Development Programme- Cum - Exhibition W.E.F. 23rd to 25th February’
2013
Reimbursement on Barcode, ISO-9001 and ISI/ Product Certification for the year 2012-13
Training Programs of MSME-DIs
Various types of training programs conducted by various MSME-DIs are provided in the table
below.
Programme Name Various Topics covered
Entrepreneurship
Development Programs
(EDPs)
Computer Application, Computer Awareness, Beautician, Garment
Manufacturing, Leather Goods Manufacturing, Call centre (IT)
industry, Catering, Industrial Accounting, Fruits and Vegetable
Products, etc.
Entrepreneurship Skill
(ESDP)
Computer Application, Computer Hardware Maintenance, DTP, Motor
Winding, CNC Operation and Programming, Mobile Handset
Repairing, Computer Accounting, Food processing, Embroidery,
Fashion Designing, Jewellery Designing, Soft Toys, Air Conditioning
and Refrigeration, Consumer Chemical Products, etc.
Business Skill
Product/ process design, Manufacturing Process involved
Testing, Selection & usage of appropriate machinery and equipment,

9
(BSDP) Marketing avenues/ techniques, Product / service pricing, Export
opportunities, Cash flow, Preparation of project profiles, Quality
management Standard, Quality Management Tools, Creativity, Value
Engineering and Value analysis, Industrial Design
Patenting, scheme for TIFAC for energy new design
Management
(MDP)
Management of Small Enterprises, Retail Management, Computer
Management, Export Procedure and Documentation, Financial
Management and Accounting, E-marketing, Sales Promotion and
Marketing, Quality Management, Human Resource Management, Web
Security Management, etc.
Industrial Motivation
Campaigns (IMCs)
Industrial Motivation Campaigns
Vocational and
Education Training
Courses in Tools Engineering, Skill Enhancement Courses for Industry
Personnel, Customised training programs for industries
Opportunities
The field of training MSME entrepreneurship is still more occupied by the government
institutions and there is a very wise scope for the private players to design courses to suit the
requirements of the increasing base of entrepreneurs. We can briefly mention the opportunities in
this field:
 Market trend towards entrepreneurship, which starts with MSME ventures
 A growing base of consumers to cater to
 Slack in the current course and the market conditions in the present courses
 A good area of research for the colleges and institutions to focus
 It is the need of the hour as per the current market scenario and economic condition of
our country
 There are some management institutes who have specifically targeted this segment like
SME Business School(http://www.smebschool.com)
Research design and methodology
Survey Instrument
The present study was conducted using questionnaires as a survey instrument with variables
selected from exploratory research of secondary literature. Demographic information regarding
name and profession were also collected. The rest of the questionnaire focused on questions
containing variables determining skills needed for entrepreneurs and the questions have been
listed below. Questions were formulated using a Likert scale with options varying from Strongly

10
Disagree to Strongly Agree. The variables were selected to align with the respective hypotheses
of the study with three or four variables falling under a particular hypothesis characteristic eg.
Finance, operation, network, risk etc
Population and sample (data collection):
Online and field survey was conducted to gather information through respondents about the pre
defined research objective based on the convenient sampling method. Respondents are people
across different age groups who are entrepreneurs or aspire to be an entrepreneur. Survey method
has advantage as it led to generation of standard information and it is suitable for data tabulation,
analysis and interpretation .We visited different startups as well as different colleges in nearby
areas to interact with different people who filled our questionnaire. We also send the
questionnaire to respondents on the email which is time, cost efficiency ,wide coverage and
quick response method for collecting data. A total of 80 responses were obtained. Demographic
information related to profession was also collected as it plays a decisive and impactful role in
conducting survey and running further analyses. The data that was collected was later analysed
using descriptive statistics, t-test, an exploratory factor analysis followed by multiple regression
on the factors.
Questions developed as part of the research instrument:
(Responses may vary from Strongly Disagree, Disagree, Neutral, Agree and Strongly Agree)
1 I think exposure to entrepreneurial ideas is important while pursuing our degree.
2 I think seminars and talk should be given by local entrepreneurs in college for
knowing about how to run business.
3 I think knowledge in financial accounting is important for entrepreneurs.
4 I believe that course should be there to identify business opportunity for starting our
own venture.
5 I think knowledge of intellectual property rights plays an important role plays an
important role in starting new business.
6 I think leadership traits perspective should be provided while pursuing our degree.
7 I think mentorship should be offered from successful entrepreneurs to know about the
practical aspect of business.
8 I think exposure to new technology should be provided by industrial visit.
9 I think different financing sources should be known to us to start new venture.
10 I think different aspects of product development and process improvement should be

11
practically imparted to us through training.
11 I think variation in market condition should be known to us for adapting our new
venture according to it.
12 I think networking with clients is also important for sustainability of new venture.
13 I think incubation center should be promoted by college for students who want to start
new business.
14 I think lean manufacturing techniques should be taught to us for minimizing the waste
and improving quality.
15 I think business communication skills play an important part in successful venture.
16 I think Customer Relationship Management training should be included to get
awareness about the customer management.
17 I think more opportunities for on job training should be provided during our
education.
18 I think interactive sessions between different entrepreneurs from different field should
be conducted to know about their views.
19 I think more opportunities for on job training should be provided during our
education.
20 I think an entrepreneur should not be risk averse.
21 I think an entrepreneur should have strong analytic skills to be successful.
Data Analysis
The demographic characteristics of the respondents:
Profession Bar Response %
1 Student 0.425 34 43%
2 Faculty 0.25 20 25%
3 Entrepreneur 0.325 26 33%
Total 80 100%

12 MSME entrepreneurship training in
Do you think to become an entrepreneur one needs a bachelor/master
degree?
Answer Bar
1 Yes 0.7625
2 No 0.2375
Total
Graphical representation of the responses to the respective questions:
Q. I think exposure to entrepreneurial ideas is important while pursuing our degree.
Q. I think seminars and talk should be given by local entrepreneurs in college for knowing about
how to run business.
0
5
10
15
20
25
30
35
40
Strongly
Disagree
Disagree
MSME entrepreneurship training in India
Do you think to become an entrepreneur one needs a bachelor/master
Response %
0.7625 61 76%
0.2375 19 24%
80 100%
Neither
Agree nor
Disagree
Agree Strongly
Agree
12

Q. I think knowledge in financial accounting is important for entrepreneurs.
Q. I believe that course should be there to identify
venture.
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Q. I think knowledge in financial accounting is important for entrepreneurs.
Q. I believe that course should be there to identify business opportunity for starting our own
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
13
business opportunity for starting our own

Q. I think knowledge of intellectual property rights plays an important role plays an important
role in starting new business.
Q. I think leadership traits perspective should be provided while pursu
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
0
5
10
15
20
25
Strongly
Disagree
Disagree
Q. I think leadership traits perspective should be provided while pursuing our degree.
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
14
ing our degree.

Q. I think mentorship should be offered from successful entrepreneurs to know about the
Q. I think exposure to new technology should be provided by industrial visit.
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Q. I think exposure to new technology should be provided by industrial visit.
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
15

Q. I think different financing source
Q. I think different aspects of product development and process improvement should be
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Q. I think different financing sources should be known to us to start new venture.
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
16
s should be known to us to start new venture.

Q. I think variation in market condition should be known to us for adapting
according to it.
Q. I think networking with clients is also important for sustainability of new venture.
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Q. I think variation in market condition should be known to us for adapting our new venture
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
17
our new venture

Q. I think incubation center should be promoted by college for students who want to start new
business.
Q. I think lean manufacturing techniques should be taught to us for minimizing the waste and
improving quality.
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
40
Strongly
Disagree
Disagree
manufacturing techniques should be taught to us for minimizing the waste and
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
18
manufacturing techniques should be taught to us for minimizing the waste and

Q. I think business communication skills play an important part in successful venture.
Q. I think Customer Relationship Management training should be includ
about the customer management.
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
Q. I think Customer Relationship Management training should be included to get awareness
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
19
ed to get awareness

Q. I think more opportunities for on job training should be provided during our education.
Q. I think interactive sessions between different entrepreneurs from different field should be
conducted to know about their views.
0
5
10
15
20
25
30
35
40
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
know about their views.
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
20

Q. I think an entrepreneur should not be risk averse.
Q. I think an entrepreneur should have strong analytic skills to be successful.
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
Q. I think an entrepreneur should not be risk averse.
Q. I think an entrepreneur should have strong analytic skills to be successful.
Neither
Agree nor
Disagree
Agree Strongly
Agree
Neither
Agree nor
Disagree
Agree Strongly
Agree
21

An overall picture can be graphed as following
Descriptive Statistics: The table below
variables used in the questionnaire. The results indicate moderate to high mean values. From the
table the highest mean was 4.02 while the lowest was 3.31
I think exposure to entrepreneurial ideas is
important while pursuing our degree.
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
0
5
10
15
20
25
30
35
40
1 3 5 7 9 11 13
An overall picture can be graphed as following
The table below depicts the means and standard deviations of the various
table the highest mean was 4.02 while the lowest was 3.31
Mean
Std.
Deviation
Analysis
4.02 .935
Neither
Agree nor
Disagree
Agree Strongly
Agree
13 15 17 19 21
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree
22
depicts the means and standard deviations of the various
Analysis
N
Missing
N
81 0

23
I think seminars and talk should be given by
local entrepreneurs in college for knowing
about how to run business.
3.60 .944 81 0
I think knowledge in financial accounting is
important for entrepreneurs.
3.52 .976 81 0
I believe that course should be there to
identify business opportunity for starting our
own venture.
3.47 .963 81 0
I think knowledge of intellectual property
rights plays an important role plays an
important role in starting new business.
3.46 1.096 81 0
I think leadership traits perspective should be
provided while pursuing our degree.
3.51 1.014 81 0
I think mentorship should be offered from
successful entrepreneurs to know about the
3.74 .919 81 0
I think exposure to new technology should
be provided by industrial visit.
3.63 .955 81 0
I think different financing sources should be
known to us to start new venture.
3.60 1.057 81 0
I think different aspects of product
development and process improvement
should be practically imparted to us through
training.
3.69 1.008 81 0
I think variation in market condition should
be known to us for adapting our new venture
according to it.
3.73 .881 81 0
I think networking with clients is also
important for sustainability of new venture.
3.63 1.042 81 0
I think incubation center should be promoted
by college for students who want to start new
business.
3.61 .849 80 1
I think lean manufacturing techniques should
be taught to us for minimizing the waste and
improving quality.
3.31 1.045 81 0
I think business communication skills play
an important part in successful venture.
3.56 .949 81 0
I think Customer Relationship Management
training should be included to get awareness
3.61 1.000 80 1
I think more opportunities for on job training
should be provided during our education.
3.57 .921 81 0
I think interactive sessions between different
entrepreneurs from different field should be
3.65 1.063 81 0
I think more opportunities for on job training
should be provided during our education.
3.47 1.026 81 0

24
I think an entrepreneur should not be risk
averse.
3.49 .976 81 0
I think an entrepreneur should have strong
analytic skills to be successful.
3.43 1.072 81 0

25
Total Variance Explained
Com
pone
nt
Initial Eigen values Extraction Sums of Squared
Loadings
Rotation Sums of
Squared Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulat
ive %
Tot
al
% of
Varianc
e
Cumula
tive %
1 11.029 52.519 52.519 11.029 52.519 52.519 4.6
67
22.223 22.223
2 1.297 6.177 58.696 1.297 6.177 58.696 3.7
24
17.733 39.956
3 1.121 5.337 64.034 1.121 5.337 64.034 3.1
09
14.804 54.760
4 1.028 4.897 68.931 1.028 4.897 68.931 2.9
76
14.170 68.931
5 .810 3.856 72.787
6 .756 3.598 76.386
7 .748 3.561 79.946
8 .616 2.934 82.880
9 .534 2.541 85.421
10 .477 2.271 87.692
11 .409 1.948 89.640
12 .327 1.557 91.197
13 .303 1.443 92.640
14 .294 1.399 94.039
15 .276 1.314 95.353
16 .244 1.160 96.513
17 .188 .896 97.410
18 .181 .861 98.270

26
Exploratory factor Analysis: The variables measuring skills of entrepreneurs were factor
analyzed. Bartlett test of Sphericity (Approx.: Chi-square 1177.755, df. 171, sig. 0.000) and the
KMO measure of sampling adequacy (value of 0.888) confirmed that there was significant
correlation among the variables to warrant the application of exploratory factor analysis. Only
factors whose Eigen values were equal or greater than 1 were selected. Moreover variables with
loadings of at least 0.5 and factors with a reliability threshold of 0.7 selected for the analysis. In
the initial exploration, all the 22 variables were factor analyzed which subsequently yielded four
factors as illustrated in the principal component factor loadings table shown below. The eight
factors altogether explain satisfactory 68.91percent variance.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .888
Bartlett's Test of Sphericity Approx.
Chi-Square
1177.794
df 210
Sig. .000
Varimax rotated principal component loadings: The 22 variables were later rotated using the
Varimax rotation as the extraction method. The results revealed that the variables loaded
perfectly onto the four factors. Five variables loaded highly on Factor 1 and were all related to
the strategy aspect of entrepreneurs. Factor 2 also had five variables which were also related to
the interpersonal skills aspect of entrepreneurs. Furthermore, Factor 3 had six variables which
related to the new technology aspect of entrepreneurs. The fourth Factor had four items and these
related to training aspect of entrepreneurs.
19 .164 .781 99.051
20 .114 .545 99.596
21 .085 .404 100.000

Rotated Component Matrixa
I think seminars and talk should be given by local
entrepreneurs in college for knowing about how to
run business.
important for entrepreneurs.
I believe that course should be there to identify
business opportunity for starting our own venture.
I think knowledge of intellectual property rights
plays an important role plays an important role in
starting new business.
Component
1 2
I think seminars and talk should be given by local
college for knowing about how to
I believe that course should be there to identify
business opportunity for starting our own venture.
think knowledge of intellectual property rights
plays an important role plays an important role in
.703
27
Component
3 4
.689
.816
.656
.806
.506

28
I think mentorship should be offered from
successful entrepreneurs to know about the practical
aspect of business.
.585
I think exposure to new technology should be
provided by industrial visit.
.629
I think different financing sources should be known
to us to start new venture.
.621
I think different aspects of product development and
process improvement should be practically imparted
to us through training.
.751
I think variation in market condition should be
known to us for adapting our new venture according
to it.
.704
I think networking with clients is also important for
sustainability of new venture.
I think incubation center should be promoted by
college for students who want to start new business.
.546
I think lean manufacturing techniques should be
taught to us for minimizing the waste and
improving quality.
.567
I think business communication skills play an
important part in successful venture.
.596
I think Customer Relationship Management
training should be included to get awareness about
the customer management.
.547
I think more opportunities for on job training should
be provided during our education.
.493
I think interactive sessions between different
entrepreneurs from different field should be
.508
I think more opportunities for on job training should
be provided during our education.
.538
I think an entrepreneur should not be risk averse.
I think an entrepreneur should have strong analytic
skills to be successful.
.712

29
Conclusion and Implications
Strategy Aspect : The rotated matrix has revealed that respondents have perceived these factors
to be the most important factors with the highest explained variance of 22.22%. Five out of
twenty variables load on significantly to this component.
Interpersonal Skills: The rotated matrix has revealed that respondents have perceived these
factors to be the most important factors with the highest explained variance of 17.73%. Five out
of twenty variables load on significantly to this component.
New Technology: The rotated matrix has revealed that respondents have perceived these factors
to be the most important factors with the highest explained variance of 14.8%. Four out of
twenty variables load on significantly to this component.
Training Aspect: The rotated matrix has revealed that respondents have perceived these factors
to be the most important factors with the highest explained variance of 14.17%. Four out of
twenty variables loads on significantly to this component.
We finally conclude that strategy or planning skills,
interpersonal skills, technology aspect and training in colleges should be provided to increase the
number of people opting for entrepreneurship in college as well as for people who want to open
new enterprise but need guidance to sustain it for long time.
Recommendations
After the research, we can recommend the following:-
 The course structure should be so designed as to match the current market scenario with
constant revisions periodically
 Constant assessment of the participants should be done in order to measure their
application skills
 More stress should be given on the practical aspects of the course like live project,
incubation centre, etc.
 Finance should be made available for the feasible ideas at a lower interest rate
 Promotion of this type of course should be made to the budding entrepreneurs so that
they can attain proper training before starting their venture

30
References
Chrisman, J.J. (1997), “The Economic Impact of Small Business Development Centre
Counseling
Activities in the United States, 1994-5”, unpublished report.
Chrisman, J.J. and W.E. McMullen (1996), “Static Economic Theory, Empirical Evidence, and
the
Evaluation of Small Business Assistance Programs”, Journal of Small Business Management,
April, pp. 56-66.
Ellsrott, J. Jr. (1987), “Procedure for Improving the Evaluation of SBDC Consulting Activities”,
Journal of Small Business Management, pp. 66-71.
Frazis, H., M. Gittleman and M. Joyce (1998), “Determinants of Training: An Analysis Using
Both
Employer and Employee Characteristics”, Bureau of Labor Statistics, Washington, DC.
Storey, D.J. (1999), “Six Steps to Heaven: Evaluating the Impact of Public Policies to Support
Small
Businesses in Developed Economies”, in D. Sexton and H. Landström (eds.), Handbook of
Entrepreneurship, Oxford, Blackwell.
Wood, W.C. (1994), “Primary Benefits, Secondary Benefits, and the Evaluation of Small
Business
Assistance Growth”, Journal of Small Business Management, Vol. 32, No. 3, pp. 65-75b.
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