entrepreneurial barriers and success factors of women in utility service businesses

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

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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

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[5] Talwar R. (1993), “Business re-engineering a strategy driven approach’’, Long Range

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[6] Hammer M. and Champy, J. (1993), Re-engineering the Corporation a Manifesto for

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[7] Short (1990), “The new industrial engineering: information technology and business

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entrepreneurial barriers and success factors of women in utility service businesses

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