Entrepreneurial barriers and success factors of women in utility

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 2, March- April (2013)
310
ENTREPRENEURIAL BARRIERS AND SUCCESS FACTORS OF
WOMEN IN UTILITY SERVICE BUSINESSES
*Mrs.R.Malarvizhi & Dr.Y.Lokeswara Choudary**
*Research Scholar, School of Management, SRM University, Chennai-203.
**Asst.Professor & Research Guide, Indian Maritime University, (A Central
University),ECR, Uthandi, Chennai-119.
1. ENTREPRENEURSHIP: CONCEPT
The concept of entrepreneurship and its theory have evolved over more than two
centuries. However, in the long transition during which a society evolves from tribalism to
self-sustained economic growth, the closely woven political, social and economic strands of
the social fabric change their pattern and their relationships. So also, the concept of
entrepreneurship in plural and socially stratified societies like India is more difficult and
intriguing. However, in this paper an attempt is made to brief out the ideas and philosophies
of various authorities on the vital and dynamic concept like entrepreneurship. The word
‘entrepreneur’ first appeared in the French language and was applied to leaders of military
expeditions in the beginning of sixteenth century. Later on, it was extended to cover other
activities like agriculture, engineering, etc. in fact, Richard Cantillon, an Irishman living in
France, was the first person to use the term ‘entrepreneur’ to refer to economic activities. He
defined entrepreneur as “the agent who purchase means of production in order to combine
them to produce a product to sell prices that are uncertain at the moment at which he commits
himself to his cost”.
2. THEORIES OF ENTREPRENEURSHIP
Max Weber’s social change Theory of Entrepreneurship: The core aspect of the Weberian
theory of social change consists in his treatment of the protestant ethic and the spirit of
capitalism. He said that the inducement of profit results in greater number of business
enterprises and complete re organization of the industry occur.
Everett E.Hagen’s Theory of Social Change: Hagan made an attempt to formulate a theory
of social change, which explains how a traditional society becomes one in which continuous
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 4, Issue 2, March- April (2013), pp. 310-320
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311
technical progress takes place. He supports the idea that economic growth occurs intur woven
with political and social change. Besides, he rejected the idea that the solution to economic
under development lies in imitating Western technology.
Thomas Cochran’s Sociological Theory of Entrepreneurial Supply: Cochran propounded
a sociological theory of entrepreneurial supply. The basic assumption is that fundamental
problems of economic development are non-economic. He emphasizes that cultural values,
role expectation and social sanctions are the key elements that determine the supply
entrepreneurs.
Psychological Drive Theory: Kilby observed that psychological drive for pecuniary (desire
to maximize profits) is an exogenous factor taken to be given which is supposed to be
operative in all societies. He further was of the opinion that profit motive combined with a
particular definition of entrepreneurial role provides the highly elastic supply of
entrepreneurial services.
3. BUSINESS ENVIRONMENT AND ENTREPRENEURSHIP
A prerequisite for nurturing Entrepreneurship is the creation of a favourable business
environment. This goal is at the heart of India’s economic liberalization initiatives. The key
parameters of a conducive business environment include smooth flow of information; ease of
starting a business and obtaining various clearances and permits; ease of filling taxes; an
efficient legal system; enabling legislations and regulations; absence of corruption; and
world-class infrastructure facilities.
4. REVIEW OF LITERATURE
Tara (2001) has examined the issue in institutionalizing microfinance in India. The
study period was from 1995 to 2001. The study emphasizes the evaluation of the relevance of
‘microfinance perspective’ to poverty improvement. The findings of the study suggest that
entrepreneurship is a reasonably a good solution to help low-income women, including those
who are transitioning off welfare, to become more economically self-sufficient. Manimegalai
(2000) has analyzed the performance of Self-Help Group (SHG) after describing the
objective, composition and functions of a SHGs. The author found that the SHG women are
widely engaged in retail marketing of agricultural and rural products both at village and urban
centers. Parthasarathy and kalyani (1995) studied the economic impact of women’s thrift and
credit society. This study was focused on access to credit, cost of credit, savings, production
and quality of life. The studies indicated the performance and the approaches of credit
programmers in India. Dadhichi (2001) has conducted a research on the evaluation of the
performance of SHG entrepreneurs, who were sponsored by Oriental Bank Group Project
(OBGP). The study concluded that women who had taken subsidiary occupations improved
their incomes, which resulted in their economic and social empowerment. Repayment pattern
of the people is high because of the positive incentive for higher loans repayment.
5. RESEARCH METHODOLOGY
Statement of the problem: Entrepreneurship is something should be taken up with passion
and courage. It also requires some special skills like doing things preplanned, innovative way
and with lot of care and professionalism. The present study is focused on entrepreneurial

312
barriers and success factors in utility services business in Chennai city. The present study is
selected to focus on wide range of utility services engaged by women as an entrepreneurial
ventures and study comprehensive issues associated with those and identifying success
variables. Hence, it is further a value addition to the existing literature and gives broad
understanding on entrepreneurial barriers and success factors in utility services business in
Chennai city.
OBJECTIVES OF THE STUDY
1. To identify the issues and challenges of women entrepreneurs in utility service
businesses.
2. To study the factors motivating the women, to start a business.
3. To find out the success factors of women entrepreneurs in the sample area.
4. To assess the relationship between demographical variables of women and problems
faced and success in business.
Conceptual frame work
Scope of the study: The study covers only the entrepreneurs operating in Chennai. All these
entrepreneurial firms are owned and operated as sole proprietorship concerns. In utility
services competition ods emerging from corporate brands, but still , this business is
dominated by reasons like cost economies and proximity to the residents. In addition, the
trust factor is less on corporate entities with regard to personalized utility services. Word of

313
mouth advertisements are better worked in utility services business rather than media ads.
The study covers ten types of utility services like Child care and Day care , Beauty care
centers, LIC agency , Tailoring and decorative paintings, Playschool/ nursery school, Currier
services, Small savings agency, DTP, Xerox and Typing centres, Telephone, STD and Cell
Recharge and Catering and event management. These are all requires lot of specialized skill
and passion to take up and do in a professional way. These services can have direct reflection
from the customers. The study covers the whole Chennai.
Methodology: The study adopted both descriptive and exploratory research methods. Data
extraction from the women entrepreneurs in the utility services business is collected through
a structured questionnaire and personal interview method. For the purpose of survey, women
entrepreneurs are met in person and tried to explain the need for the study. In some occasions,
SHG groups also involving in such businesses, but not included in the study. The references
were taken from women associations, banks, training centers, district revenue office, block
development cell, and utility service providers associations. The sample is collected from the
entire city, by notifying the prominent places in the city. The equal distribution is not ensured
and location importance or priority is not given. The time, cost and proximity to the topic is
considered while collecting the data. Modern utility cum health care services centres like Spa,
ultra modern saloons are exempted from the study. In a similar way franchisee pre schools,
nursery schools and day care centers are exempted due to influence of brand and corporate
image.
Sources of data: The data required for the study is collected from both primary and
secondary sources. The primary data collection is done through structured questionnaire
prepared on the basis of review of literature and the variables were selected from those. The
secondary data is collected from both print and electronic media.
Data collection tools and reliability: The data required for the analysis is collected from the
women entrepreneurs in the sample area through a structured questionnaire. The structured
questionnaire is prepared on the basis of review of literature and in consultation with the
women entrepreneurs in the utility services business. Initially, a rough draft of the
questionnaire is prepared pilot study is conducted with 70 questionnaires. The reliability of
the instrument is tested through Corn Bach, Alpha and the value is recorded at 0.92 and found
reliable. The individual sections also tested through the same and presented in the following
table.
Sample frame and method: The sample size is determined by using the scientific menthod,
by using the pilot study standard deviation of the sample of 70 respondents, by allowing the
standard error at 5% level. The sample size was determined by using the following formula.
Sample Size (N)= (ZS/E)2
=478.
Frame work of study:: The data collected from the women entrepreneurs through a
structured questionnaire is tabulated by using MS-Excel spread sheets and uploaded in to
SPSS master data sheet and labeled the variables in a clear manner. Later the descriptive
statistical tool frequency analysis is made to calculate and grouping the entrepreneurs on the
basis of demographical variables. Similarly, for the questions following likert’s scale mean
values are calculated to measure the significance. In part two of the analysis, inferential
statistical tools is used to establish the relationship between the demographic variables and
the barriers faced, entrepreneurial gaps, success factors, motivating factors of women
entrepreneurs in the utility services business in the sample area.

314
6. DATA ANALYSIS AND RESULTS DISCUSSION
Table 6.1: Distribution of sample on the basis of Demographical profile of the women in
utility services industry
Work experience. Training
status N %
Nature of business N %
No work experience
134 28.0
Unregistered
proprietorship
116 24.3
Not in the relevant field 62 13.0 Registered Proprietorship 72 15.1
Basic training is given 34 7.1 Unregistered Partnership 29 6.1
Intensive training is taken 87 18.2 Registered Partnership 35 7.3
Work is relevant to study 161 33.7 Private Ltd 162 33.9
Total 478 100.0 SHG Model 64 13.4
Total 478 100.0
Year of establishment Reason for starting business
Before 2000 36 7.5 Employ and engage my self 97 20.3
2000-2005 38 7.9 Financial empowerment 117 24.5
2006-2010 254 53.1 Gain business knowledge 177 37.0
After 2010 150 31.4 Use the learning skills 49 10.3
Total 478 100.0 Employment avenue 38 7.9
Annual turnover No of employees working
Below Rs.50000 284 59.4 No employees 307 64.2
Rs.50001-Rs.100000 166 34.7 Below 5 137 28.7
Above Rs.100000 28 5.9 Above 5 34 7.1
Total 478 100.0 Total 478 100.0
Type of business Sources of working capital
Child care and Day care
124 25.9
Savings and business
revenue
56 11.7
Catering and event management 103 21.5 Spouse and family funds 66 13.8
Tailoring and decorative
paintings
91 19.0
Friends and relatives
154 32.2
Beauty care centers 91 19.0 Private finance 164 34.3
Others 69 14.4 Banks 38 7.9
Total 478 100.0 Total 478 100.0
Initial capital invested Location of business
Below Rs.25000 181 37.9 Commercial area 149 31.2
Rs.25001-Rs.50000 174 36.4 Residential area 194 40.6
Rs.50001-Rs.75000 83 17.4 Township 135 28.2
Above Rs.75000 40 8.4 Total 478 100.0
Total 478 100.0
Based on the table 6.1, it is observed that, majority of the women entrepreneurs are selecting
the business relevant to their study (33.7 percent); The number of women ventured into
business is between 2006-2010. It can be called as golden period for women entrepreneurial

315
ventures. One key observation is 60 percent of the utility service businesses run by women
entrepreneurs are reported very low level of annual turnover of below Rs.50000 among the
sample. Child care and day care centres occupy the major choice of utility service firms in the
sample area. 34 percent of the firms registered as private limited firms and 64 percent of the
firms have no employees, and started with an intention to gain business knowledge. This is a
peculiar demographical profile of the women in entrepreneurs in the sample area.
Table 6.2: Showing the relationship between the nature of business and the dimension of
women entrepreneurial success in utility services industry along with ANOVA results
Dimension of women
entrepreneurial success
Nature of business
URP RP UPR RPR PVTL SHG
F-
value
P
value
Entrepreneurial
climate
Mean
21 23 20 20 20 20 5.781
0.000*
*
SD
(3.23) (2.02) (3.10) (3.60) (1.80) (1.80)
Entrepreneurial
Gaps
Mean
66 62 72 67 67 67 9.956
0.000*
*
SD
(4.92) (3.87) (5.16) (5.78) (5.65) (5.65)
Supportive
measures
Mean
85 71 64 77 86 86 8.603
0.000*
*
SD (17.16
)
(28.07
)
(14.14
)
(23.65
)
(15.76
)
(15.76
)
Motivation Mean
61 62 57 59 59 59 13.823
0.000*
*
SD
(5.13) (1.19) (3.02) (5.34) (2.59) (2.59)
Success factors Mean
32 33 31 31 29 29 10.444
0.000*
*
SD
(2.49) (2.29) (3.33) (3.02) (2.46) (2.46)
Suggestions to
improve the
success rate
Mean
71 71 60 64 65 65 8.032
0.000*
*
SD
(4.89) (4.48)
(15.48
)
(12.18
)
(10.50
)
(10.50
)
URP-
Unregistered
proprietorship
RP-
Registered
Proprietorshi
p
UPR-
Unregistered
Partnership
RPR-
Registered
Partnership
PVTL-
Private Ltd
SHG
Model
Since p value is less than 0.001, the null hypothesis there is no relationship between the
nature of business and the women entrepreneurial success in utility services industry is
rejected at 1% level of significance. Hence, it is inferred that, hypothesis there is a
relationship between the nature of business and the women entrepreneurial success in utility
services industry. Based on the mean value, it is observed that, registered proprietorship firms

316
are highly motivated entrepreneurs and gave many suggestions for the success of the women
in utility services industry. High level of entrepreneurial gaps is observed among unregistered
partnership firms. Private limited firms and SHG model firms are getting more supporting
measures form different sources among the sample. The over all success is observed at high
among the registered proprietorship firms among the sample.
Table 6.3: Showing the relationship between Type of business and the dimension of
women entrepreneurial success in utility services industry along with ANOVA results
Type of business running
CCDC CEM TDP BCC OT
F-
VALUE
P
VALUE
Entrepreneurial climate Mean
22 21 20 20 22 7.146 .000
SD
(3.20) (2.61) (3.00) (2.78) (3.20)
Entrepreneurial Gaps Mean
67 67 68 70 67 15.056 .000
SD
(7.64) (5.35) (5.02) (5.01) (7.64)
Supportive measures Mean
75 75 78 88 75 7.956 .000
SD
(19.87) (25.07) (22.27) (17.15) (19.87)
Motivation Mean
59 59 60 64 59 11.281 .000
SD
(4.29) (2.90) (3.97) (7.16) (4.29)
Success Factors Mean
31 31 31 32 31 3.324 .011
SD
(2.71) (3.23) (3.35) (3.10) (2.71)
Suggestions to improve the success
rate
Mean
65 65 70 64 65 3.678 .006
SD
(12.47) (10.96) (8.71) (12.55) (12.47)
CCDC- Child care and Day care; CEM- Catering and event management; TDP- Tailoring and
decorative paintings; BCC- Beauty care centers; OT- Others
Based on the p value, the null hypothesis, there is no relationship between Type of
business and the dimension of women entrepreneurial success in utility services industry is
rejected (p value is less than 0.001). Hence, it is inferred that, there is a relationship between
Type of business and the dimension of women entrepreneurial success in utility services
industry. Based on the mean value, it is noted that the beauty care centres are having high
level of motivation, supportive measures and success along with the entrepreneurial gaps
among the sample area. It is concluded that the beauty care centres re the prime utility service
business sin the sample area.

317
Table 6.4: Association between work experience and success rate among the women in
Work experience / Training status
Level of success
CHI-
value P value
Low Average High
No work experience Count
34 41 59
109.565 0.000**
% within Work
experience
25.4% 30.6% 44.0%
% within Level of
success 18.5% 25.6% 44.0%
Not in the relevant
field
Count
15 20 27
% within Work
experience
24.2% 32.3% 43.5%
% within Level of
success 8.2% 12.5% 20.1%
Basic training is given Count
5 28 1
% within Work
experience
14.7% 82.4% 2.9%
% within Level of
success 2.7% 17.5% .7%
Intensive training is
taken
Count
37 17 33
% within Work
experience 42.5% 19.5% 37.9%
% within Level of
success 20.1% 10.6% 24.6%
Work is relevant to
study
Count
93 54 14
% within Work
experience
57.8% 33.5% 8.7%
% within Level of
success 50.5% 33.8% 10.4%
Since the p value is less than 0.001, the null hypothesis there is no association between work
experience and success rate among the women in utility services industry is rejected at 1%
level of significance. Hence, it is inferred that, there is an association between work
experience and success rate among the women in utility services industry. Based on mean
value high level of success is observed among the no work experience category of women
entrepreneurs among the sample. Further it is inferred that the entrepreneurs engaging work
relevant to study observed low and average level of success rate in the business.

318
Table 6.4: Association between Nature of business and success rate among the women in
Nature of business
Level of success
Low Average High
CHI-
value
P value
Unregistered
proprietorship
Count
26 45 45
93.140 0.000**
% within Nature of
business
22.4% 38.8% 38.8%
% within Level of
success
14.1% 28.1% 33.6%
Registered
Proprietorship
Count
14 42 16
% within Nature of
business
19.4% 58.3% 22.2%
% within Level of
success
7.6% 26.3% 11.9%
Unregistered
Partnership
Count
0 16 13
% within Nature of
business
.0% 55.2% 44.8%
% within Level of
success
.0% 10.0% 9.7%
Registered Partnership Count 17 4 14
% within Nature of
business
48.6% 11.4% 40.0%
% within Level of
success
9.2% 2.5% 10.4%
Private Ltd Count 88 36 38
% within Nature of
business
54.3% 22.2% 23.5%
% within Level of
success
47.8% 22.5% 28.4%
SHG Model Count 39 17 8
% within Nature of
business
60.9% 26.6% 12.5%
% within Level of
success
21.2% 10.6% 6.0%
Since p value is less than 0.001, the null hypothesis, there is no Association between Nature
of business and success rate among the women in utility services industry is rejected at 1%
level of significance. Hence, it is inferred that, there is an Association between Nature of
business and success rate among the women in utility services industry. Based on the mean
value, it is observed that, unregistered proprietorship firms are observed high level of success
in utility services industry.

319
Table 6.5: showing association between Reason for starting business and success rate
among the women in utility services industry
Reason for starting a
business Level of success
Low Average High
CHI-
value P value
Employ and engage my
self
Count
24 48 25
127.632 0.000**
% within Reason for starting a
business
24.7% 49.5% 25.8%
% within Level of success 13.0% 30.0% 18.7%
Financial empowerment Count 31 30 56
business
26.5% 25.6% 47.9%
Gain business knowledge Count 116 45 16
business
65.5% 25.4% 9.0%
Use the learning skills Count 9 14 26
business
18.4% 28.6% 53.1%
Employment avenue Count 4 23 11
business
10.5% 60.5% 28.9%
Since p value is less than 0.001, the null hypothesis, there is no association between
Reason for starting business and success rate among the women in utility services industry is
rejected at 1 % level of significance. Hence, it is concluded that, there is an association
between Reason for starting business and success rate among the women in utility services
industry. Based on the mean value, it is noted that, high level of success is observed among
the women engaged business with an intention to get financial empowerment among the
sample.
7. SUMMARY AND CONCLUSION
A prerequisite for nurturing Entrepreneurship is the creation of a favorable business
environment. This goal is at the heart of India’s economic liberalization initiatives. The key
parameters of a conducive business environment include smooth flow of information; ease of
starting a business and obtaining various clearances and permits; ease of filling taxes; an
efficient legal system; enabling legislations and regulations; absence of corruption; and
world-class infrastructure facilities. The present study finds that, majority of the women
entrepreneurs are selecting the business relevant to their study(33.7 percent); The number of
women ventured into business is between 2006-2010. It can be called as golden period for
women entrepreneurial ventures. One key observation is 60 percent of the utility service
businesses run by women entrepreneurs are reported very low level of annual turnover of
below Rs.50000 among the sample. Child care and day care centres occupy the major choice

320
of utility service firms in the sample area. 34 percent of the firms registered as private limited
firms and 64 percent of the firms have no employees, and started with an intention to gain
business knowledge.
Registered proprietorship firms are highly motivated entrepreneurs and gave many
suggestions for the success of the women in utility services industry. High level of
entrepreneurial gaps is observed among unregistered partnership firms. Private limited firms
and SHG model firms are getting more supporting measures form different sources among
the sample. The over all success is observed at high among the registered proprietorship firms
among the sample. High level of success is observed among the no work experience category
of women entrepreneurs among the sample. Further it is inferred that the entrepreneurs
engaging work relevant to study observed low and average level of success rate in the
business. Unregistered proprietorship firms are observed high level of success in utility
services industry. And finally, high level of success is observed among the women engaged
business with an intention to get financial empowerment among the sample.
8. REFERENCES
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[3] Silver (1998), “Reengineering materials management – A case study on an Indian
refinery” Business Process Management Journal, Vol. 7 No. 5, 2001,pp. 394-408. #
MCB University Press, 1463-7154.
[4] Bell, C.L. and Stukhart, G. (1986), “Attributes of materials management system’’,
Journal of Construction Engineering and Management, Vol. 112 No. 1, pp. 14-21.
[5] Talwar R. (1993), “Business re-engineering a strategy driven approach’’, Long Range
Planning, Vol. 26 No. 6, pp. 22-40.
[6] Hammer M. and Champy, J. (1993), Re-engineering the Corporation a Manifesto for
Business Revolution, Harper Business, New York, NY.
[7] Short (1990), “The new industrial engineering: information technology and business
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[8] Saranya R and Muthumani S, “Employee Retention Strategy is the Way of Victory in
the Modern it Industry for Women - A Study”, International Journal of Management
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[9] D.Shanthi Revathi and Dr. Jayasree Krishnan, “Problems and Opportunities of Women
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