A STUDY ON THE ENTREPRENEURIAL SKILLS AMONG STUDENTS IN CHENNAI

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1 International Journal of Advanced Research in Management (IJARM) Volume 6, Issue 3, Sep-Dec (2015), pp , Article ID: Available online at ISSN Print: and ISSN Online: IAEME Publication A STUDY ON THE ENTREPRENEURIAL SKILLS AMONG STUDENTS IN CHENNAI Dr. J. Rengamani Associate Professor, AMET Business School AMET University Dr. S. Ramachandran Director, AMET Business School AMET University ABSTRACT Entrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time and /or career commitment or provide value for some product or service. The product or service may or may not be new or unique but value must somehow be infused by the entrepreneur by receiving and allocating the necessary skills and resources. In recent years, fostering entrepreneurship has become a topic of the highest priority in public policy throughout most industrial countries. Well educated technical entrepreneurs are of paramount importance to economic development of any nation. The development of entrepreneurial talent is important to sustaining a competitive advantage in a global economy that is catalyzed by innovation. The role of quality entrepreneurship education and training, in identifying and nurturing this entrepreneurial potential among youth is becoming apparent to students, policy makers, and educators. Now, there is an increasing trend and growing interest for becoming entrepreneurs among younger generation. But our education system is designed in such a way as to create more of jobseekers than job creators. The Entrepreneurs do not emerge spontaneously on their own. Entrepreneurial development is a complex phenomenon and such process is the crystallization of social milieu from which a person comes, family imbibed personal attitudes, caste system, educational level, parental income, occupation and so on. Besides, educational institutions could play a positive role in motivating the students to venture into self employment. In the above backdrop, this study on Entrepreneurial spirit among students, has been undertaken to identity the reasons for choosing entrepreneurship as a career and to examine the influence of various factors on students preference towards entrepreneurship. Key words: Entrepreneur, Entrepreneurial Traits and Entrepreneurship development 36 editor@iaeme.com

2 A Study on the Entrepreneurial Skills among Students in Chennai Cite this Article: Dr. Rengamani, J. and Dr. Ramachandran, S. A Study on the Entrepreneurial Skills among Students in Chennai. International Journal of Advanced Research in Management, 6(3), 2015, pp INTRODUCTION An entrepreneur first has to identify by some means, the activities that he will take up in his/her business with the expectation of the profits. He then has to organize the resources that the activity will require men, money, machinery or whatever else. Having set up the business, he then has to manage it efficiently. And finally, as the risk taker, apart from enjoying the wealth that he creates, he will have to sustain its continuing need for different resources, as it hopefully expands and grows. One realizes the rationale behind inculcating the Entrepreneurial Skills among the graduates who belongs to science and technology category. However not everyone can become an entrepreneur, as numerous studies have revealed. There are certain psychological traits; socio cultural, demographical and economic factors, perceptions about the external environment, etc., which impact the entrepreneurial intent and entrepreneurial competence of an individual. Just as water diviners identify the ground which will yield water, there is a need to identify the potential candidate, who, when given the necessary inputs and training is likely to become an entrepreneur. Relatively few studies have examined the initial stages of Entrepreneurial intent prior to actually commencing the enterprise. Few studies have sought to examine the competence inventory to soon- to- be graduates, to identify weather they have the interest and whether they have the competence to take up entrepreneurship as a career choice. This study proposes to fill the existing knowledge gaps in the study of entrepreneurship, by studying the impact of socio cultural, demographic, economic and psychological factors, and perception of the individual on entrepreneurial skills and sprit among prospective entrepreneurs. i.e. Final year students of self financing institutions in Chennai. An individual s confidence in one s ability to access the available opportunities (self employment, risk, etc.). When individual believes that starting one s own business is a great opportunity for success, does not like for working someone else, believes that he/she could operate a successful small business and would rather operate a small business, than being a middle manager with a larger organization, one might conclude that he/she displays high Entrepreneurial confidence. Refers to an individuals belief concerning Entrepreneurial opportunities in the economy (Financial rewards, employment etc.). When an individual believes that is the possible for small business owners to be successful in today s economy, has a lot of respect for successful small business owners and firmly believes that he/she could successfully operate a small business-one might conclude that the individual perceives positive Entrepreneurial opportunities in the environment. When the individual who is ignorant about the actual steps to be taken to start a new venture, feels that an Entrepreneurial career is too risky, is not sure about the various aspects of running own business and does not feel that he/she is developing the skills necessary to successfully operate one s own business one may conclude that the individual displays Low Entrepreneurial Education editor@iaeme.com

3 Dr. J. Rengamani and Dr. S. Ramachandran 1.1. Major Competencies Identified by the study that lead to Superior Performance of the Entrepreneurs 1. Initiative: It is the entrepreneur who initiates a business activity. 2. Looking for Opportunities: He Looks for an opportunity and takes appropriate actions as an when it opportune. 3. Persistence: Japanese Proverb Fall seven times; stand up eight. He makes repeated efforts to overcome obstacles that get in the way of reaching goals. 4. Information Seeker: Takes individual research and consult the experts to get information to help to reach the goal. 5. Quality conscious: He has always strong urge to excel and to beat the existing standards. 6. Committed to work: Does every sacrifice to get the task completed. 7. Efficiency seeker: Makes always tenacious efforts to get the task completed within minimum cost and time. 8. Proper Planning: Formulates realistic and proper plans and then executes rigoursly to accomplish the task. 9. Problem Solver: Always tries to find out ways and means to tide over the difficult times. 10. Self Confidence: A strong believer in his strengths and abilities. 11. Assertive: Good in asserting his issues with others for the cause of his enterprise. 12. Persuasive: Able to successfully persuade others to do what he actually wants from them. 13. Efficient Monitor: Personally supervises the work so that it is done as per standards laid down. 14. Employees well wishers: Has great concern and also takes necessary measures to improve the welfare of the employees working in his enterprise. Treat employee as a human being. 15. Effective Strategist: Introduces the most effective strategies to predict change, cope with change and even create change. 2. LITERATURE REVIEW Miroslav Glas et al (1992) studied the impact of the graduate Programme on student attitudes towards entrepreneurship in general, starting up new businesses and leading managerial careers in dynamic SMEs. Second, it wanted to obtain a Programme evaluation and suggestions for possible changes in the future. Morris and Lewis (1995) This study Examines the interface of entrepreneurship and marketing; defines entrepreneurship as a variable phenomenon that can be applied at the societal, organizational and individual levels. Marketing is conceptualized as a fundamentally entrepreneurial activity. Argues that entrepreneurship is an environmentally-driven phenomenon and that the environmental determinants of entrepreneurship can be categorized into three groups: infrastructure, turbulence and personal life experiences. Draws out the implications of these determinants, and the corresponding level of entrepreneurship that they produce, for the nature and role of marketing at the macro and micro levels. Lars Kolvereid and Øystein Moen (1997) The framework of the study is, Entrepreneurship has become a widely taught subject in Universities and Business Schools. However, only a very small number of studies have investigated the effect of entrepreneurship education. This research compares the behavior of business 38 editor@iaeme.com

4 A Study on the Entrepreneurial Skills among Students in Chennai graduates with a major in entrepreneurship and graduates with other majors from a Norwegian business school. The results indicate that graduates with an entrepreneurship major are more likely to start new businesses and have stronger entrepreneurial intentions than other graduates. Neck et al (1999) The concept of the paper is Thought Self-Leadership involves individual self- influence through cognitive strategies that focus on selfdialogue, mental imagery, beliefs and assumptions, and thought patterns. This research provides consistent support for the relationship between constructive selfleadership of these cognitive processes and enhanced performance. Margaret Fletcher (1999) The study carried out to review the outcomes of the Scottish Graduate Enterprise Programme (GEP). Two hundred and forty-five graduates participated in the nine GEP business start up courses from 1983 to They came from a range of academic institutions and disciplines. At least a half have started a business at some point, From the findings of the study it was found that 50 per cent of those traced were in business, almost half were female. They did not tend to come from entrepreneurial backgrounds, though most had previous work experience. They had considered a range of career options. They started up with low amounts of capital and found finance a constraint, although a range of other problems were identified. On an average the businesses have shown growth in capital, turnover, profits and number of employees. They rated their business performance high on quality standards, innovation and competitiveness, though average on sales and profit performance. The Graduate Enterprise Programme helped those with sufficient motivation, to gain the ability to convert their idea into a business. Kuratko and Hornsby (1999) Studied the concept of "entrepreneurial leadership which has emerged as the critical factor for the 21st century Corporation. The article describes the focus and strategy behind corporate entrepreneurship while presenting a framework for professionals to understand the importance of implementing entrepreneurial leadership in these organizations. The organizational dimensions and the specific elements involved with corporate entrepreneurship set the stage for understanding the interactive process of individuals and organizations. It is this understanding that will focus professionals on the leadership of tomorrowentrepreneurial leadership Rasheed (2000) Identifying and nurturing entrepreneurial potential among youth can have long-term implications for American economic development. This research concludes that entrepreneurship education and experience can affect psychological attributes commonly associated with entrepreneurs. Secondary students with entrepreneurship training have higher achievement motivation, more personal control, and greater self-esteem; and students who initiate a business venture have higher achievement motivation, more personal control, greater self-esteem and more creativity. Peter Wyer et al (2000) The paper proffers a tentative conceptualization of the small business strategic learning process, demonstrating the complexity of the small firm learning and management task. The framework, built upon personal construct theory and learning theories, is elaborated through the grounding of relevant areas of the strategic management literature in an understanding of the distinctive managerial and behavioral features of the small business. Ishwar Dayal (2000) The study shows that the index of leader effectiveness in India is the leader's success in terms of expansion of assets or activities. The Indian concept emphasizes the entrepreneurial role more than that of people development editor@iaeme.com

5 Dr. J. Rengamani and Dr. S. Ramachandran Only 15 per cent of the leaders in the sample perceived their role as people developers. The study identifies three leader styles: (a) the entrepreneurial, (b) the bureaucratic, and (c) the people oriented. All three styles are successful when measured against the objective criteria of profits, growth, and public recognition of the leader concerned. The consequences for the organization of each of the three styles are different. Considering the emerging business and the economic environment in the country, it is suggested that a people-oriented style is necessary. The article suggests some ways of preparing organizations for the emerging demands of the business environment. Sasi Misra and Sendil Kumar (2000) Study of the 'entrepreneurial resourcefulness' model helps one to understand various aspects prompting an entrepreneur to identify opportunities and thereby regulate and direct her/his behavior to make the best use of these opportunities. The model elaborates three entrepreneurial competencies cognitive, affective and action oriented. Various details of these competencies are elaborated to explain the behavior pattern of an entrepreneur. The model treats the behavior of an entrepreneur as an outcome variable and acknowledges that there are significant variations in the behavior of one entrepreneur from the other. This article helps in resolving the doubts and confusions surrounding the conceptualization of the terms 'entrepreneur' and 'entrepreneurship'. The resourcefulness model clarifies these confusions and contributes towards both theory advancement and generating new research hypotheses. Krueger et al (2000) In this study the authors focus on undergraduate students in their first-year of University Studies. The author touched entrepreneurial intentions model as previously tested by would be applicable to this sample, with perceived feasibility and perceived desirability of starting a business, directly related to their entrepreneurial intentions and subjective norm indirectly related through perceived feasibility and perceived desirability. Diarmuid De Faoite et al (2003) The study focuses on growing body of academic research that has examined the effectiveness of entrepreneurship training and support initiatives, with recent studies focusing on the provision of training and other skills development opportunities.. The article considers the importance of education and training to the economy and focuses on the particular value of entrepreneurship education and training. Some of the fundamental themes in the literature were reviewed, including the difficulties involved in categorizing entrepreneurship education and training; the issue of whether or not entrepreneurship can be taught; the content of entrepreneurship programmes and the cultural and evaluative considerations. Martyn Robertson et al (2003) examined and put forth the importance of new business start-ups cannot be over-emphasized. The UK government has taken actions designed to stimulate the growth of new businesses and aid their survival. The identification of barriers to entry is important, together with strategies to minimize their impact. Collins et al (2004) in their study provides a review of the gap between students entrepreneurial needs & aspirations viz a viz the entrepreneurship education offerings within higher education institutions (HEIs) in Leicestershire, UK; utilizes data from three surveys of University fresher students, held in 2001; uses the findings as the basis to assess the gap between fresher students' entrepreneurial needs and aspirations and the capability of HEIs to meet them, draws on multiple surveys from universities in Leicestershire and so will be of relevance to other HEIs with similar student 40 editor@iaeme.com

6 A Study on the Entrepreneurial Skills among Students in Chennai demographics, fulfils a need to take a strategic review of how HEIs can develop the capability to meet the entrepreneurial needs of new students in supporting their future aspirations. Anuradha Basu (2004) This paper contributes to our understanding of the intersection between entrepreneurship and family businesses by examining the business aspirations of immigrant entrepreneurs from five different ethnic minority communities in the UK. It explores differences in the entrepreneurs' antecedents that might explain differences in their aspirations and examines the interaction between aspirations and business behavior and outcomes. It finds that despite the importance of the family in their businesses, ethnic minority entrepreneurs have diverse aspirations. It is possible to distinguish between those with business-first, family-first, money-first and lifestyle-first aspirations. Their educational and family background affects entrepreneurs' aspirations, as does their stage on the family life cycle. Differences in aspirations are related to the nature of business, the way in which it is managed, the recruitment of professional managers and entrepreneurial performance. The research findings highlight the diversity in aspirations among family business owners and the complexity of the interaction between ethnicity, culture, class and entrepreneurship. Gerald Vinten and Steve Alcock (2004) The author has studied and found that encouraging entrepreneurship has become an accepted wisdom in economic management and government policy. It could only be a matter of time before the world of education was invoked as a means of furthering this end. Business schools have not made the most incisive contribution possible, and there is a significant expectations gap. So as we cascade down to the secondary level, efforts are being made to improve matters. 3. RESEARCH OBJECTIVES 1. To carry out a comprehensive study in order to assess the degree of Entrepreneurial abilities among students in chennai, as a career option. 2. To find out the impact of dimensions of Entrepreneurial Traits among students that influences them favorably towards entrepreneurship. 4. METHODOLOGY The Present study is based on both descriptive and analytical types of research design. Descriptive study is designed to describe the characteristics of a particular group viz., final year students, on the basis of sample selected. It includes surveys and fact finding enquires. The major purpose is to present things as they are. Here the researchers have no control over the variables and he could only present items as they are, as revealed by the sample respondents. An effort was made to infer relationship between Personal factors with Dimensions of Entrepreneurial traits as well as with overall interest towards entrepreneurship. 5. HYPOTHESES NH: There is no significant difference between the overall interests towards entrepreneurship with regard to Individual Dimensions of entrepreneurial traits. 6. DATA COLLECTION A structured questionnaire was utilized, which incorporated Likert scale with 10 items to check the composite Entrepreneurial index. Another set of statements with Likert 41 editor@iaeme.com

7 Dr. J. Rengamani and Dr. S. Ramachandran scale was used to assess the Entrepreneurial traits and competence on various parameters. The questionnaire was administered by a personal interview method. After pre testing the questionnaire, certain items were found inappropriate for the respondents. The number of items in the competence scale was reduced based on its appropriateness for the target population. 7. FINDINGS AND ANALYSIS The hypothesis and its analysis show the overall picture of the whole scenario that comprises entrepreneurial index (overall interest towards entrepreneurship) against entrepreneurial traits. Table 1 ANOVA Analysis for Significant Difference Between the Overall Interest Towards Entrepreneurship with Regard to Dimensions of Entrepreneurial Traits Dimensions of Entrepreneurial Traits F value P value Overall interest towards entrepreneurship.(entrepreneurial index). Low Moderate High HR Ability ** a b c Communication Ability ** a b c Self Confidence ** a b c Energy Level ** a b c Thinking Ability ** a b Goal Setting ** a b c Taking Initiative ** a b c Risk Taking ** a b c From the Table, it is inferred that, since the P value is less than 0.01, the null hypothesis is rejected at 1% level of significance with regard to related factors of Entrepreneurial traits like Human Resource Ability, Communication Ability, and Energy level, Thinking Ability, Goal Setting, Self confidence, Risk taking and Taking Initiative. Hence there is significant difference between Overall interest towards entrepreneurship with regard to dimensions of entrepreneurial traits like Human Resource Ability, Communication Ability, and Energy level, Thinking Ability, Goal setting, Self confidence, Risk Taking and Taking initiative. Based on Duncan Multiple Range test, those respondents having high skills of entrepreneurship significantly differ from those who are having moderate and low level of Entrepreneurial Skills at 1% level of significance with regard to Human Resource Ability, Communication Ability, Self-Confidence, Energy Level, Thinking Ability, Goal Setting, Taking Initiative, and Risk Taking. The respondents having Moderate level of Entrepreneurial Skills significantly differ from the respondents of Low level skills of Entrepreneurship at 1% level of significance with regard to Human Relations Ability, Communication Ability, Self-Confidence, Energy Level, Thinking Ability, Goal Setting, Taking Initiative, and Risk Taking. From the above table it can be observed that to become successful entrepreneurs, one should posses the entrepreneurial traits like, Human Relations Ability, Communication Ability, Se lf- Confidence, Energy Level, Thinking Ability, Goal Setting, Taking Initiative, and Risk Taking etc. Those respondents shown interest in entrepreneurial career can be properly motivated and can be helped to develop their skill and traits through training programmes editor@iaeme.com

8 A Study on the Entrepreneurial Skills among Students in Chennai 8. CONCLUSION There is a dire need for a driving force in order to fuel further economic growth in the country. Research indicates that there is a strong link between Entrepreneurial venture in a Country and the Country s economic development. Research also indicates that business venture by the educated graduates adds more value to the economy as whole. Also there is a glut of graduates who passed out from 290 Institutions in Tamilnadu every year. Thus, when one considers all factors, there is a compelling need to promote entrepreneurship avenues actively amongst the graduates. The study was conducted to assess the entrepreneurial skills and competence of the final year graduates. This study seeks to make a beginning in the pursuit of identifying the target students who have the inclination and the rudimentary competencies for starting a small business. These students could be then providing suitable training, infrastructural and incubation support. It is also expected that students can improve their entrepreneurial skills, constant training, experience and inspiration. Policy changes could then be incorporated so as to transform the self financing institutions in Tamil Nadu, into institutions which are technopreneurial hubs, thus imbibing the students with entrepreneurial qualities, as throbbing with the skills for entrepreneurship. REFERENCES [1] Basu, A. Entrepreneurial aspirations among family business owners: An analysis of ethnic business owners in the UK, International. Journal of Entrepreneurial Behaviour & Research, 10(1/2), 2004, pp [2] Basu, A. and Virick, M. Assessing Entrepreneurial Intentions amongst Students: A Comparative Study. Journal of Small Business Management, 2008, pp [3] Autio, E. and Keeley, R. H. Entrepreneurial intent among students: Testing and intent model in Asia, Scandinavia, and USA. Frontiers of Entrepreneurship Research, Wellesley MA, Babson College, 1997, pp [4] Sarasvathy, S. Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 2001, pp [5] Misra, S. and Sendil Kumar, E. Resourcefulness: A Proximal Conceptualisation of Entrepreneurial Behaviour. Journal of Entrepreneurship, 9(2), 2000, pp [6] Barbosa, S. D., Gerhardt, M. W. and Kickul, J. R. The Role of Cognitive Style and Risk Preference on Entrepreneurial Self-Efficacy and Entrepreneurial Intentions. Journal of Leadership & Organizational Studies, 13(4), 2007, pp [7] Schendel, D. E. Introduction to the special issue on corporate entrepreneurship. Strategic Management Journal, 1990, 11, pp [8] Schere, J. L. Tolerance for ambiguity as a discriminating variable between entrepreneurs and managers. Proceedings of the Academy of Management, 1982, pp [9] Carland, J. A. and Carland, J. W. An empirical investigation into the distinctions between male and female entrepreneurs and managers. International Small Business Journal, 1991, 9(3), pp editor@iaeme.com

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