A PILOT STUDY ON IMPACT OF SOCIO CULTURAL FACTORS ON ENTREPRENEURIAL SUCCESS

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1 International Journal of Civil Engineering and Technology (IJCIET) Volume 9, Issue 2, February 2018, pp , Article ID: IJCIET_09_02_029 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed A PILOT STUDY ON IMPACT OF SOCIO CULTURAL FACTORS ON ENTREPRENEURIAL SUCCESS Syamala Devi Bhoganadam Research Scholar, KLEF Business School, Konneru Lakshmaiah Educational Foundation, Andhra Pradesh, India Dr. D. SrinivasaRao Professor, KLEF Business School, Konneru Lakshmaiah Educational Foundation, Andhra Pradesh, India Dr. N. Konda Reddy Associate Professor, KLEF Business School, Konneru Lakshmaiah Educational Foundation, Andhra Pradesh, India ABSTRACT Entrepreneurship is considered an engine of growth for an economy in terms of employment generation, GDP growth and wealth creation. Entrepreneurship spirit takes place within a framework of both internal and external environment. In developing countries like India, the influence of internal environment factors on Entrepreneurship is more pronounced compared to external factors. The purpose of the present study is to identify some of those internal environmental factors that are influencing the entrepreneurial success of MSMEs in Vijayawada region based on a pilot study. A random sample of 55 entrepreneurs were selected from the records of Krishna District Industrial Centre for the study. Based on the review of earlier studies a structured questionnaire was designed to gather the required information from the respondents. Regression technique with mediation effects was adopted for hypothesis testing. Results of the study indicates that entrepreneurial success has negative relationship with education and positive relationship with trust and quality of workforce. One significant finding of the study is that the influence of education on entrepreneurial success turns positive when work experience is considered as a mediator between these two variables. Key words: Entrepreneurial Success, Mediation, Work Experience, Pilot Study. Cite this Article: Syamala Devi Bhoganadam, Dr. D. SrinivasaRao, Dr. N. Konda Reddy, A Pilot Study on Impact of Socio Cultural Factors on Entrepreneurial Success. International Journal of Civil Engineering and Technology, 9(2), 2018, pp editor@iaeme.com

2 Syamala Devi Bhoganadam, Dr. D. SrinivasaRao, Dr. N. Konda Reddy 1. INTRODUCTION An entrepreneur is a person who always looks for change in terms of innovation, production, machinery, technology etc. He responds to changes in environment and converts this changing environment into an opportunity for making their desire to become entrepreneurs as succeed. In emerging economies like India entrepreneurship plays a key role in various dimensions of economic development. In olden days entrepreneurship is more of a profit oriented activity but now days it is seen as a driver of technology, innovation and wealth creation. Studies shows that the dynamics of internal environment plays a major role in entrepreneurial development and success.. In this context the present study explores some of the internal environmental factors that might affect entrepreneurial success using the data from a pilot study. The factors that are supposed to affect the entrepreneurial success have been culled out of various empirical studies. 2. OBJECTIVES FOR THE STUDY To study the impact of socio cultural factors on Indian entrepreneurship To examine the relationship between education and entrepreneurial success To examine the relationship between work experience and entrepreneurial success To examine the relationship between trust among social networks and entrepreneurial success To examine the relationship between quality of work force and entrepreneurship success To examine the moderation effect of education in the relationship between entrepreneurial success and work experience. 3. REVIEW OF LITERATURE Akpor - Robaro, M. O. (2012) The study opines that socio cultural environment variables that effect entrepreneurial success are: level of education of entrepreneur, poverty, values of economic power and independence, gender role values, and Hofstede s cultural values. The study finds that all these factors will influence both positively andnegatively entrepreneurship. According to their study there are both push and pull factors for Nigerian entrepreneurship.. Oluremi Hezekiah Abimb et.al (2011) :The study hasrecognizedsex, age, marital status,, family, education, ethnic origin, culture, religion and occupation as influencing socio cultural factors ofentrepreneurship. The results of the studyexposed that family background, family system and family members, gender are most influencing factors for entrepreneurship. Debanjan Nag &Niladri Das (2014) identifies four factors as education, prior experience, leadership skills and communication influencing entrepreneurship and results of this study show that all these factors play significant role in developing entrepreneurship. Study by ShardhaShivani et.al,(2006) found thatsocio cultural factors are important in developing countries like India. They had taken religion, caste, family support and education as variables under socio cultural environment. Their findings indicate that caste does not influence entrepreneurial success but influence on supply and survival of enterprise. Family support and education are significant factors identified. Religion doesnot a relationship with entrepreneurship success but all the entrepreneurs are highly religious. DwijendraTripathi (1971) says that Indian caste system is most vibrant in nature. Traditionally Indian society is defined by caste in relation to occupation as caste driven occupation and thus entrepreneurship. Kumar, D. (2014) says that in social values, family support, religion, education are influencing factors for entrepreneurship editor@iaeme.com

3 A Pilot Study on Impact of Socio Cultural Factors on Entrepreneurial Success LeventAltinay&Catherine L. Wang (2011) research recognized some of socio cultural factors influencing entrepreneurial orientation are education, prior experience and religion. From this literature it is identified that four major factors which influence entrepreneurship success are education, work experience, trust among social networks and quality of work force. From the above studies we inferred that education, work experience, social networks, quality of workforce are the major internal environmental factors that are influencing entrepreneurial success. These factors are the basis for formulation of the study hypotheses as below: 4. HYPOTHESIS FOR THE STUDY H11: There is a relationship between education and entrepreneurial success H12: There is a positive relationship between work experience of entrepreneur and entrepreneurial success. H13: There is a positive relationship between trust among social networks and entrepreneurial success H14: There is a positive relationship between quality of work force and entrepreneurial success H15: The impact of education on entrepreneurial success is moderated by work experience of the entrepreneur. 5. MODEL FOR THE STUDY Entrepreneurial Success (ES) = f(socio cultural Environment) Entrepreneurial Success (ES)=f(Education, Work Experience, Social Networks, Force) ES = a+ b 1 (Education) +b 2 (Work experience) +b 3 (Trust) +b 4 (Quality of work +b 5 (Education * Work Experience) Work Force) Figure 5.1 Model for the study editor@iaeme.com

4 Syamala Devi Bhoganadam, Dr. D. SrinivasaRao, Dr. N. Konda Reddy 6. RESEARCH METHODOLOGY The study attempts to trace theimpact of socio cultural factors on entrepreneurial success. Descriptive research design is adopted in the study. To achieve the study objectives, information on the hypothesized variables was gathered from a random sample of 55 MSME entrepreneurs from the city of Vijayawada using structured questionnaire. Sampledrespondents are entrepreneurs belonging toassociation of Lady Entrepreneurs of Andhra Pradesh (ALEAP) and from JawaharAutonagars. Multiple Regression model was used to assess the statistically significant impact of socio cultural factors on Entrepreneurial Success. Statistical software R was used to process the data Profile of the Sample Educational qualification of entrepreneur Table 7.1:Entrepreneurs qualification Frequency Valid Cumulative Valid 1st-5th Primary school th-10tj Secondary school Diploma/Inter/12th standard Degree Post graduation and above Total From above table 7.1 and figure 7.1 it is clear that most of entrepreneurs are having 6 th - 10 th standard education and intermediate level education. Only few entrepreneurs are having graduation and above graduation level in education. Type of manufacturing sector entrepreneur belongs to editor@iaeme.com

5 A Pilot Study on Impact of Socio Cultural Factors on Entrepreneurial Success Table 7.2 Type of manufacturing sector entrepreneur belongs to Frequency Valid Cumulative V Rubber a Chemical l i Wood and Wooden products d Plastic, non metallic mineral products Metal industry Machinery,equipment,office machinery, computers, electrical machinery Motor vehiclesand transport vehicles Others Total From above table 7.2 and figure 7.2 it is clear that most of entrepreneurs belongs to other category which includes textiles, food, machinery and plastic industry Carrier Choice Table 7.3 I chose this career because V a li d Frequency Valid Cumulative I desired to be self-employed There was prestige in being called an entrepreneur I had this idea that I would be able to make a lot of money in this profession Total editor@iaeme.com

6 Syamala Devi Bhoganadam, Dr. D. SrinivasaRao, Dr. N. Konda Reddy From above figure 7.3 and table 7.3 it is clear that most of entrepreneurs choose this career because of their desire. Most are having a desire to make money out of business. 7. ESTIMATED REGRESSION COEFFICIENTS Table 8.1 Dependent Variable = Entrepreneurial Success Independent Variables Estimate Std.Error t value Pr(> t ) (Intercept) * Education * Work Experience Trust Quality of work force e-12 *** Work experience*education Signif.codes: 0 *** ** 0.01 * Multiple R-squared: 0.819, Adjusted R-squared: F-statistic: on 5 and 49 DF, p-value: < 2.2e Regression Diagnostics editor@iaeme.com

7 A Pilot Study on Impact of Socio Cultural Factors on Entrepreneurial Success 8. TESTING HYPOTHESIS The Study hypotheses are tested using the information from, Table.8.1 H11: There is a relationship between education and entrepreneurial success. From the table it is clear that Education has a statistically significant negative impact on Entrepreneurial Success. H12: There is a positive relationship between work experience of entrepreneur and entrepreneurial success From table we find that work experience has no impacton Entrepreneurial Success as the t value for the coefficient is not significant H13: There is a positive relationship between trust among social networks and entrepreneurial success From the table it is clear that trust among social networks has statisticallypositive relationship with entrepreneurial success at 8% level. The result is doubtful as the alfa level is set at 5% H14: There is a positive relationship between quality of work force and entrepreneurial success Quality of work force is found to have positive relationship with entrepreneurial success as the t value for the coefficient is significant at 5% level. H15: The impact of education on entrepreneurial success is moderated by work experience Result analysis in the table clearly shows that the impact ofeducation on entrepreneurial success is moderated by work experience. It is observed that education alone has negative influence on entrepreneurial success but when it is moderated by work experience it shows a positive impact on it Findings of the Study It is found out that level of education has negative relationship with entrepreneurial success which indicates that as education goes up the entrepreneurial success goes down. During data collection it is observed by the researchers thatmost of the enterprenuers have started long back and they attribute their success not to their level of education but to their work experience. Hence, the study also tested education as variable that moderated in between work experience and entrepreneurial success. It is found that work experience in isolation has no significant relationship with entrepreneurial success editor@iaeme.com

8 Syamala Devi Bhoganadam, Dr. D. SrinivasaRao, Dr. N. Konda Reddy Study results indicates that trust among social networks has a positive and significant relationship with entrepreneurial success.that is as trust among social networks increases the rate of entrepreneurial success also increases. It is found that quality of work force has a positive and significant relationship with entrepreneurial success which implies that, the better the quality of work force inan enterprise the more is the entrepreneurial success. Regarding the moderating role of work experience it is evident that level of education as a causative factor for entrepreneurial success depends upon the work experience of the entrepreneur. 9. CONCLUSIONS The present study made an attempt to identify some of the socio cultural factors that are driving the entrepreneurial success among small and medium scale entrepreneurs. The major factors that makes a successful entrepreneur seems to be work experience, quality of human resources at his disposal and social networking. Education alone can not make him successful. Education along with work experience has high probability of making him a successful entrepreneur. Policy makers should devise training programs to continually upgrade them in areas of improved production techniques, marketing strategies, etc. Entrepreneurial success in Indian context seems to be in tune with other developing countries. REFERENCES [1] Abimbola, O. H., Adekeye, O. A., Ajayi, M. P., &Idowu, &. A. (2011) Some Socio- Cultural Issues In Entrepreneurship Development among Some Groups in Nigeria. Ife Psychologia, 9(2), pp ( ),. [2] Akpor - Robaro, M. O. (2012) The Impact Of Socio-Cultural Environment On Entrepreneurial Emergence: A Theoretical Analysis Of Nigerian Society. European Journal of Business and Management, 4 (16), [3] DwijendraTripathi. (1971) Indian Entrepreneurship In Historical Perspective: A Re- Interpretation. Economic & Political Weekly, 6 (22), M59-M63+M65-M66. [4] Kumar, D. (2014) Socio-Cultural Influence Of Women Entrepreneurs: A Study Of Uttarakhand State. International Journal of Trade And Commerce, 3 (1), [5] Nag, D., & Das, N. (2014) Impact of Socio cultural & Skill Related Factors for Success of Micro Entrepreneurs. Twelfth Aims International Conference on Management (Pp ). Kozhikode: IIM Kozhikode [6] Shradhashivani, Skmukherjee, &Rakasharan. (2006). Socio-Cultural Influences On Indian Entrepreneurs: The Need for Appropriate Structural Interventions. Journal Of Asian Economics, 17, [7] Wang, L. A. (2011) The Influence of An Entrepreneur's Socio Cultural Characteristics On The Entrepreneurial Orientation Of Small Firms. Journal of Small Business and Enterprise Development, 18 (4), Pp [8] Rajitha Ramachandran and Dr. Anuradha P S, Impact of Socio Demographic Factors Influence on Beneficiaries of Jansuraksha Schemes. International Journal of Management, 8 (3), 2017, pp [9] Aravind S, K V Ramesh and Shambavi Kamath M, Modelling The Impact of Socio - Economic Dynamics on Urbanization Over Hyderabad, International Journal of Civil Engineering and Technology, 8(4), 2017, pp editor@iaeme.com