Reasons For The Success of Micro Enterprises

SI.No CONTENTS 1 2 INTRODUCTION ISSUES CONCERNING MICRO ENTERPRISE 3 4 REASERCH METHODOLGY DTAT ANALYSIS AND INTERPRETATION 5 6 7 FINDINGS AND SUGGESTIONS BIBILOGRAPHY INDEX

PAGE No. 2-3 4-5

6-6 7-22

23-23 24 25

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Reasons For The Success of Micro Enterprises

Introduction
Micro, Small and Medium Enterprises Micro, small and medium enterprises (MSME) sector has been recognised as an engine of growth all over the world. The sector is characterized by low investment requirement, operational flexibility, location wise mobility, and import substitution. In India, the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is the first single comprehensive legislation covering all the three segments. In accordance with the Act, these enterprises are classified in two: - (i) manufacturing enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and regulation) Act, 1951. These are defined in terms of investment in plant and machinery; (ii) service enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. India has a vibrant micro and small enterprise sector that plays an important role in sustaining the economic growth, by contributing around 39 per cent to the manufacturing output and 34 per cent to the exports in 2004-05. It is the second largest employer of human resources after agriculture, providing employment to around 29.5 million people (2005-06) in the rural and urban areas of the country. Their significance in terms of fostering new entrepreneurship is well-recognized. This is because, most entrepreneurs start their business from a small unit which provides them an opportunity to harness their skills and talents, to experiment, to innovate and transform their ideas into goods and services and finally nurture it into a larger unit. Over the years, the small scale sector in India has progressed from the production of simple consumer goods to the manufacture of many sophisticated and precision products like electronics control systems, micro wave components, electro medical equipments, etc. The process of economic liberalisation and market reforms has further exposed these enterprises to increasing levels of domestic and global competition. The formidable challenges so generated for them have led to a novel approach of cluster development for the sector. As a result, private and public sector institutions, both at the Central and State levels are increasingly undertaking cluster development initiatives.

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Reasons For The Success of Micro Enterprises

Clusters are defined as sectoral and geographical concentration of enterprises, particularly, small and medium enterprises, faced with common opportunities and threats which give rise to external economies; favour the emergence of specialized technical, administrative and financial services; create a conducive ground for the development of inter-firm cooperation to promote local production, innovation and collective learning. Clustering and networking has helped the small and medium enterprises in boosting their competitiveness. India has over400SME Clusters and about 2000 artisan clusters. It is estimated that these clusters contribute 60 per cent of the manufactured exports from India. Almost the entire gems and jewellery exports are from the clusters of Surat and Mumbai. Some of the small scale enterprise clusters are so big that they account for 90 per cent of India's total production output in selected products. For example, the clusters of Chennai, Agra and Kolkata are well known for leather and leather products. The Government has been encouraging and supporting the sector through policies for infrastructural support, technology up gradation, preferential access to credit, reservation of products for exclusive manufacture in the sector, preferential purchase policy, etc. It has been offering packages of schemes and incentives through its specialized institutions in the form of assistance in obtaining finance; help in marketing; technical guidance; training and technology up gradation, etc.

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Reasons For The Success of Micro Enterprises

ISSUES CONCERNING THE MSME SECTOR

The problems faced by MSMEs (access to bank credit, access to capital, technology, skill, market, etc.) are quite unique to the nature of the sector. These concern several institutions and departments of the Government. There is, therefore, a need for an MSME perspective in the functioning of such institutions and departments. Some of the major bottlenecks impeding the growth of the MSME sector are briefly discussed in the subsequent paragraphs.

1. Access to adequate and timely credit at a reasonable cost is the most critical problems faced by this sector. The major reason for this has been the high risk perception among the banks about this sector and the high transaction costs for loan appraisal. While the quantum of advances from the public sector banks (PSBs) to the MSEs has increased over the years in absolute terms, from Rs.46, 045 crore in March 2000 to Rs.1, 85,208 crore in March 2009, the share of the credit to the MSE sector in the Net Bank Credit (NBC) has declined from 12.5 per cent to 10.9 per cent during the same period. Similarly, there has been a decline in the share of micro sector as a percentage of NBC from 7.8 per cent in March 2000 to 4.9% in March 2009.

2. Access to Equity capital is a genuine problem. At present, there is almost negligible flow of equity capital into this sector, despite the fact that overall capital inflows have witnessed significant increase in the recent years. Absence of equity capital may pose a serious challenge to development of knowledge-based industries, particularly those that are sought to be promoted by the first-generation entrepreneurs with the requisite expertise and knowledge.

3. In the present global environment, the MSMEs have to be competitive to survive and thrive. To ensure competitiveness of the MSMEs, it is essential that the availability of infrastructure, technology and skilled manpower are in tune with the global trends. MSMEs are either located in industrial estates set up many decades ago or are functioning within urban areas or have come up in an unorganised manner in rural areas. The state of infrastructure, including power, water, roads, etc. in such areas is poor and unreliable. Further, the MSE sector in India, with some exceptions, is characterised by low technology levels, which acts as a handicap in the emerging global market. As a result, the sustainability of a large number of MSEs will be in jeopardy in the face of competition
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Reasons For The Success of Micro Enterprises

from imports. Although India has the advantage of a large pool of human resources, the industry continues to face deficit in manpower with the right skill set for specific areas like, manufacturing, service, marketing, etc. The HR problem is further exacerbated by the low retention rate.

4. While India continues to be a growing market cheap imported goods have a direct impact on the MSEs and their survival. Given the globalisation, governments across the world are providing supportive measures to the MSEs through targeted benefits and facilities. In line with the practice internationally, a Public Procurement Policy for MSEs is vital to ensure a stable market for the MSEs.

5. Worldwide, MSMEs are credited with high level of innovation and creativity, which also leads to higher level of failures. Keeping this in view, most of the countries have put in place mechanisms to handle insolvencies and bankruptcies. The present mechanism available in India for MSMEs is archaic. It does not focus on revival. Hence, business failure in India is viewed as a stigma, which adversely impacts individual creativity and development in the country. An enabling policy environment, which helps viable enterprises facing temporary disruptions to continue while allowing others to close down speedily, with an appropriately structured social security base, is essential for the promotion of MSMEs in India.

6. Although the government has provided an overarching legislation in the form of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the MSME sector, there are a large number of regulatory issues which impact on the development of entrepreneurship generally and on the efficiency of MSMEs in particular. The regulatory aspects concern compliance with labour, environment, urban and various taxation laws (both state and central). An understanding of the concerns from all perspectives, including regulatory, labour and MSMEs, will help in formulating a friendlier regulatory environment which would facilitate promotion and ensure better compliance.

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Reasons For The Success of Micro Enterprises Research Methodology

Statement of the Problem:
The statement of the problem is to analyze the reasons for the success of Micro enterprise and how they utilized the resources for the success of an enterprise. Evaluating the problems associated with the financial matters of business and how they procure sources. Title of the project Reasons for the Success of Micro Enterprises

Objectives of the Study:

As part of Course called Micro Finance and Rural enterprise we are doing project on the Micro enterprise, the objective is to know how the micro enterprises working, to know about raising funds and etc. The study is based on the following objectives: To know about the micro enterprises in this Region. To what are the major problems faced by them. To know the reasons for the success of Micro enterprises.

Methodology of the study: The method adopted for the study is collection of primary data and the secondary data

1. Primary Source: The primary sources of collecting data through the Questionnaire 10 samples and the interaction with entrepreneurs 2. Secondary source: The secondary sources form the articles and the Govt reports and the Internet.

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Reasons For The Success of Micro Enterprises DATA ANALYSIS AND INTERPRETATION
1. Reasons For Starting The Micro Enterprises Profit Frequency Percent Strongly Agree Agree Neutral Disagree Total 2 3 3 2 10 20.0 30.0 30.0 20.0 100.0 Valid Percent Cumulative Percent 20.0 30.0 30.0 20.0 100.0 20.0 50.0 80.0 100.0

Interpretation: - from the above table it is clearly shows that enterprise starts for making profit. Self-employment Frequency Percent Strongly Agree Agree Disagree Strongly Disagree Total 5 3 1 1 10 50.0 30.0 10.0 10.0 100.0 Valid Percent Cumulative Percent 50.0 30.0 10.0 10.0 100.0 50.0 80.0 90.0 100.0

Interpretation: - Majority people start enterprise for self employment. Eliminate Poverty Frequency Percent Agree Neutral Disagree Strongly Disagree Total 1 4 3 2 10 10.0 40.0 30.0 20.0 100.0 Valid Percent Cumulative Percent 10.0 40.0 30.0 20.0 100.0 10.0 50.0 80.0 100.0

Interpretation: - less number of agree for eliminate poverty on this point some people neutral.

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Reasons For The Success of Micro Enterprises

Improve Standard Living Frequency Percent strongly Agree Agree Neutral Disagree Total 1 4 3 2 10 10.0 40.0 30.0 20.0 100.0 Valid Percent Cumulative Percent 10.0 40.0 30.0 20.0 100.0 10.0 50.0 80.0 100.0

Interpretation: - another major factor for starting enterprise is to improve the standard of living. Service Motive Frequency Percent Strongly Agree Agree Neutral Disagree Total 2 4 2 2 10 20.0 40.0 20.0 20.0 100.0 Valid Percent Cumulative Percent 20.0 40.0 20.0 20.0 100.0 20.0 60.0 80.0 100.0

Interpretation: - Service motive people are agree for this factor because all Micro enterprise starts with help of NGO, Govt and SHG. Maximize Capital Frequency Percent Valid Strongly Agree Agree Neutral Disagree Total 1 2 2 5 10 10.0 20.0 20.0 50.0 100.0 Valid Percent Cumulative Percent 10.0 20.0 20.0 50.0 100.0 10.0 30.0 50.0 100.0

Interpretation: - 50% people are disagreeing for Maximizing capital.

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Reasons For The Success of Micro Enterprises

2. Assistance Taken From the Government

Interpretation: - from the above graph it is clearly showing that 90% people are not taken assistance from the Government and also indirectly it showing the assistance not reaching to rural people

3. Sources of Finance Used for Microenterprises

Interpretation: - 80% people are started the enterprise by own capital hardly 10% people are taken from SHG and Bank loan.
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Reasons For The Success of Micro Enterprises

4. Knowing About the Micro Finance

Interpretation: - above the graph showing that 40% people know about the Microfinance and 60% people are not known about the Micro Finance. 5. The Problems Faced By the Micro Enterprises Financial Problems Small Capital is Available Frequency Percent Strongly Agree Agree Disagree Total 1 5 4 10 10.0 50.0 40.0 100.0 Valid Percent Cumulative Percent 10.0 50.0 40.0 100.0 10.0 60.0 100.0

Lack of Training in Handling the Capital efficiently Frequency Percent Strongly Agree Agree Neutral Disagree Total 1 3 5 1 10 10.0 30.0 50.0 10.0 100.0 Valid Percent Cumulative Percent 10.0 30.0 50.0 10.0 100.0
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10.0 40.0 90.0 100.0

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Reasons For The Success of Micro Enterprises

No Awareness about Facilities Availability for Micro Enterprise Frequency Percent Strongly Agree Agree Neutral Disagree Strongly Agree Total 2 1 5 1 1 10 20.0 10.0 50.0 10.0 10.0 100.0 Valid Percent Cumulative Percent 20.0 10.0 50.0 10.0 10.0 100.0 20.0 30.0 80.0 90.0 100.0

Highest Interest Rate Frequency Percent Agree Neutral Disagree Strongly Disagree Total 4 2 3 1 10 40.0 20.0 30.0 10.0 100.0 Valid Percent Cumulative Percent 40.0 20.0 30.0 10.0 100.0 40.0 60.0 90.0 100.0

Interpretation: - The problems faced by the Microenterprises are as follows The problem with less capital there is availability/funding very less. The Micro enterprises are having the ability to handle the capital. Awareness is there about the Microfinance but about the funds are in small amount. 40% people fell that interest is charged by them is high.

Production Problems Infrastructure Frequency Percent Strongly Agree Agree Neutral Disagree Total 3 4 2 1 10 30.0 40.0 20.0 10.0 100.0 Valid Percent Cumulative Percent 30.0 40.0 20.0 10.0 100.0
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30.0 70.0 90.0 100.0

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Reasons For The Success of Micro Enterprises

Unskilled Labors Frequency Percent Agree neutral Disagree Total 4 3 3 10 40.0 30.0 30.0 100.0 Valid Percent Cumulative Percent 40.0 30.0 30.0 100.0 40.0 70.0 100.0

Educated Labors Frequency Percent Strongly Agree Agree Neutral Disagree Strongly Disagree Total 1 3 4 1 1 10 10.0 30.0 40.0 10.0 10.0 100.0 Valid Percent Cumulative Percent 10.0 30.0 40.0 10.0 10.0 100.0 10.0 40.0 80.0 90.0 100.0

Lack of Advance Machineries Frequency Percent Strongly Agree Agree Neutral Disagree Strongly Disagree Total 2 1 3 2 2 10 20.0 10.0 30.0 20.0 20.0 100.0 Valid Percent Cumulative Percent 20.0 10.0 30.0 20.0 20.0 100.0 20.0 30.0 60.0 80.0 100.0

Availability of Raw martial Frequency Percent Agree Neutral Disagree Strongly Disagree Total 5 2 2 1 10 50.0 20.0 20.0 10.0 100.0 Valid Percent Cumulative Percent 50.0 20.0 20.0 10.0 100.0
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50.0 70.0 90.0 100.0

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Reasons For The Success of Micro Enterprises

Infrastructure Facilities Frequency Strongly Agree Agree Neutral Strongly Disagree Total System 2 3 3 1 9 1 10 Percent 20.0 30.0 30.0 10.0 90.0 10.0 100.0 Valid Percent Cumulative Percent 22.2 33.3 33.3 11.1 100.0 22.2 55.6 88.9 100.0

Interpretation: - The Production problems faced by the Micro Enterprises are as follows 70% people are agreeing that the Infrastructure problems impact the production. Unskilled Labor is also impact the production. 40 % people are agreed for this. Educated labors are not required for the business if the labor is educated they will demand more. Lack of advanced Machinery is not thing for them if they used advanced machinery it will cost to them and that much capital they are not having. 50 % people are agreeing for availability of raw material is the problem for them. 20 and 30 % people are Strongly agree and agree for the infrastructure facilities roads, water and electricity are problem for production.

Marketing Problems
Marketing Skills Frequency Percent Strongly Agree Agree Neutral Disagree Total 3 2 3 2 10 30.0 20.0 30.0 20.0 100.0 Valid Percent Cumulative Percent 30.0 20.0 30.0 20.0 100.0 30.0 50.0 80.0 100.0

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Reasons For The Success of Micro Enterprises

Poor Packaging Frequency Percent Agree Neutral Disagree Strongly Disagree Total 1 5 3 1 10 10.0 50.0 30.0 10.0 100.0 Valid Percent Cumulative Percent 10.0 50.0 30.0 10.0 100.0 10.0 60.0 90.0 100.0

Inability to Maintain Standards For the Products Frequency Percent Agree Neutral Disagree Strongly Disagree Total 3 4 2 1 10 30.0 40.0 20.0 10.0 100.0 Valid Percent Cumulative Percent 30.0 40.0 20.0 10.0 100.0 30.0 70.0 90.0 100.0

Lack of Market Knowledge Frequency Percent Agree Neutral Disagree Strongly Disagree Total 4 2 3 1 10 40.0 20.0 30.0 10.0 100.0 Valid Percent Cumulative Percent 40.0 20.0 30.0 10.0 100.0 40.0 60.0 90.0 100.0

Transportation Frequency Percent Strongly Agree Agree Neutral Disagree Total 3 2 3 2 10 30.0 20.0 30.0 20.0 100.0 Valid Percent Cumulative Percent 30.0 20.0 30.0 20.0 100.0 30.0 50.0 80.0 100.0

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Reasons For The Success of Micro Enterprises

Interpretation: - from the following Marketing problems are faced by Micro enterprises. In this case Marketing Skills are required for Micro enterprise but it is not problem to them. 50 % people are neutral about the packaging about the product. Standards of the product 40% people are neutral about the 30% are agreeing this is the main problem to them. 40% people are agreeing that lack of Market knowledge is the problem to Microenterprise while marketing the product. Some people are facing problem with transportation and some people are not.

6. Setting the Micro Enterprise In this Village Nearness to The Market Frequency Percent Strongly Agree Agree Neutral Disagree Strongly Disagree Total Raw Materials Availability Frequency Percent Strongly Agree Agree Neutral Total Demand for the Product Frequency Percent Strongly Agree Agree Neutral Disagree Total 2 4 2 2 10 20.0 40.0 20.0 20.0 100.0 Valid Percent Cumulative Percent 20.0 40.0 20.0 20.0 100.0
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Valid Percent Cumulative Percent 30.0 20.0 30.0 10.0 10.0 100.0 30.0 50.0 80.0 90.0 100.0

3 2 3 1 1 10

30.0 20.0 30.0 10.0 10.0 100.0

Valid Percent Cumulative Percent 20.0 60.0 20.0 100.0 20.0 80.0 100.0

2 6 2 10

20.0 60.0 20.0 100.0

20.0 60.0 80.0 100.0

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Reasons For The Success of Micro Enterprises

Skilled Labor Frequency Percent Agree Neutral Strongly Disagree Total 3 5 2 10 30.0 50.0 20.0 100.0 Valid Percent Cumulative Percent 30.0 50.0 20.0 100.0 30.0 80.0 100.0

Native Place Frequency Percent Strongly Agree Agree Total 5 5 10 50.0 50.0 100.0 Valid Percent Cumulative Percent 50.0 50.0 100.0 50.0 100.0

SHGs Located in Same place Frequency Percent Neutral Disagree Strongly Disagree Total 4 3 3 10 40.0 30.0 30.0 100.0 Valid Percent Cumulative Percent 40.0 30.0 30.0 100.0 40.0 70.0 100.0

Asked to Setup there By somebody Frequency Percent Agree Neutral Disagree Strongly Disagree Total 1 2 1 6 10 10.0 20.0 10.0 60.0 100.0 Valid Percent Cumulative Percent 10.0 20.0 10.0 60.0 100.0 10.0 30.0 40.0 100.0

Interpretation: - the above the table showing that why they selected this place for setting the business. Some of the strong reasons are as follows Valid reason for setting enterprise near to the market majority people are agreeing Raw material availability 60 are agreeing for that they started the business because availability of raw
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Reasons For The Success of Micro Enterprises

material. 40% are agreeing that in this place is more demand for the product for that reason they started. They are neutral about the skilled labor while starting the business. Major factor that influence them to start the enterprise is Native place.

7. How Microfinance Helped you to Meet your objectives Profit Frequency Percent Agree Neutral Disagree Total 2 5 3 10 20.0 50.0 30.0 100.0 Valid Percent Cumulative Percent 20.0 50.0 30.0 100.0 20.0 70.0 100.0

Self Employment Frequency Percent Strongly Agree Agree Disagree Total 4 4 2 10 40.0 40.0 20.0 100.0 Valid Percent Cumulative Percent 40.0 40.0 20.0 100.0 40.0 80.0 100.0

Eliminate Poverty Frequency Percent Agree Neutral Disagree Total 2 3 5 10 20.0 30.0 50.0 100.0 Valid Percent Cumulative Percent 20.0 30.0 50.0 100.0 20.0 50.0 100.0

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Reasons For The Success of Micro Enterprises

Improve Standard of Living Frequency Percent Agree Neutral Disagree Strongly Disagree Total 4 4 1 1 10 40.0 40.0 10.0 10.0 100.0 Valid Percent Cumulative Percent 40.0 40.0 10.0 10.0 100.0 40.0 80.0 90.0 100.0

Service Motive Frequency Percent Agree Neutral Disagree Total 3 5 2 10 30.0 50.0 20.0 100.0 Valid Percent Cumulative Percent 30.0 50.0 20.0 100.0 30.0 80.0 100.0

Maximize the Capital Frequency Percent Strongly Agree Agree Neutral Disagree Strongly Disagree Total 3 3 2 1 1 10 30.0 30.0 20.0 10.0 10.0 100.0 Valid Percent Cumulative Percent 30.0 30.0 20.0 10.0 10.0 100.0 30.0 60.0 80.0 90.0 100.0

Interpretation: - the following are interpretations, how the microfinance helped them to meet the objective. Only few people are agreeing that it helped to make a profit. 40 % people are strongly agreeing that microfinance helping for development of self employment. Very less number of peoples are agreeing that it helps to eliminate poverty. 40% people are agreeing that it helps to improve the standard of living. 50% people are neutral about the service motive. 30 % people strongly and Agreeing that it helps the Maximize the capital to encourage enterprises.

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Reasons For The Success of Micro Enterprises

8. How Village Enterprise is different from Urban Enterprises Infrastructure Frequency Percent Strongly Agree Agree Disagree Total 6 3 1 10 60.0 30.0 10.0 100.0 Valid Percent Cumulative Percent 60.0 30.0 10.0 100.0 60.0 90.0 100.0

Skill Frequency Percent Strongly Agree Agree Neutral Disagree Total 1 3 4 2 10 10.0 30.0 40.0 20.0 100.0 Valid Percent Cumulative Percent 10.0 30.0 40.0 20.0 100.0 10.0 40.0 80.0 100.0

Awareness Frequency Percent Strongly Agree Agree Neutral Disagree Total 1 4 3 2 10 10.0 40.0 30.0 20.0 100.0 Valid Percent Cumulative Percent 10.0 40.0 30.0 20.0 100.0 10.0 50.0 80.0 100.0

Support Frequency Percent Strongly Agree Agree Neutral Disagree Total 3 3 3 1 10 30.0 30.0 30.0 10.0 100.0 Valid Percent Cumulative Percent 30.0 30.0 30.0 10.0 100.0
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30.0 60.0 90.0 100.0

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Reasons For The Success of Micro Enterprises

Education Frequency Percent Strongly Agree Agree Neutral Strongly Disagree Total 1 3 5 1 10 10.0 30.0 50.0 10.0 100.0 Valid Percent Cumulative Percent 10.0 30.0 50.0 10.0 100.0 10.0 40.0 90.0 100.0

Operations Frequency Percent Strongly Agree Agree Neutral Disagree Total 2 5 2 1 10 20.0 50.0 20.0 10.0 100.0 Valid Percent Cumulative Percent 20.0 50.0 20.0 10.0 100.0 20.0 70.0 90.0 100.0

Interpretation: - the following interpretation of how the village enterprise are different from that of the urban enterprises. 60% people are strongly agreeing the infrastructure difference will be there in the micro enterprises. Skill is also different in rural enterprises compare to that of urban enterprises. Awareness about government scheme will be less in rural enterprises. Support will more in rural enterprise because the NGO, Govt Support Rural enterprises. Education about the Micro enterprise is less in the Rural is less members are interested in that. 50% people are agreeing that operations are different in the rural enterprises.

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Reasons For The Success of Micro Enterprises

9. Reasons for the Success of Micro Enterprises Micro Finance Frequency Percent Agree Neutral Disagree Strongly Disagree Total 2 2 4 2 10 20.0 20.0 40.0 20.0 100.0 Valid Percent Cumulative Percent 20.0 20.0 40.0 20.0 100.0 20.0 40.0 80.0 100.0

Entrepreneur skills Frequency Percent Strongly Agree Agree Neutral Disagree Total 1 5 3 1 10 10.0 50.0 30.0 10.0 100.0 Valid Percent Cumulative Percent 10.0 50.0 30.0 10.0 100.0 10.0 60.0 90.0 100.0

Product Frequency Percent Strongly Agree Agree Neutral Disagree Total 3 4 2 1 10 30.0 40.0 20.0 10.0 100.0 Valid Percent Cumulative Percent 30.0 40.0 20.0 10.0 100.0 30.0 70.0 90.0 100.0

Customers Frequency Percent Strongly Agree Agree Neutral Disagree Total 3 2 4 1 10 30.0 20.0 40.0 10.0 100.0 Valid Percent Cumulative Percent 30.0 20.0 40.0 10.0 100.0
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30.0 50.0 90.0 100.0

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Reasons For The Success of Micro Enterprises

SHG, GOVT and other Agencies Frequency Percent Agree Neutral Disagree Strongly Disagree Total 4 2 2 2 10 40.0 20.0 20.0 20.0 100.0 Valid Percent Cumulative Percent 40.0 20.0 20.0 20.0 100.0 40.0 60.0 80.0 100.0

Interpretation: - From the above table shows that which are the factors that are important for the success of Microenterprise are as follows Micro finance point of view they are not agreeing that it is contributing but less the quantum of loan they are getting now is low that to they are using this working capital. They are believe in the risk taking capacity of themselves it clearly shows that Entrepreneur skills. And another important factor they believe is what they are producing. About the customers majorly neutral and some of them believe the customer is also important factor. 40 % people are agreeing the SHG and Govt Agencies are also play critical role in success of enterprise

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Reasons For The Success of Micro Enterprises

FINDINGS AND SUGGESTIONS

FINDINGS From the analysis we found that majority peoples are starting enterprise for self employment It is found that micro enterprises are started to improve the standard of living From the analysis it is found that all the schemes and assistance are not reaching to the end users Banks and SHGs are not used effectively for the development of micro enterprise The micro enterprises are facing the problems of Finance are Capital and more interest The production problem includes infrastructure, un-skilled labor, availability of raw material and primary facilities The marketing problems included that they are not having marketing skills and knowledge about the markets and transportation problems Micro finance helping for developing employment and standard of living Micro finance helping but not up to the mark

SUGGETIONS Government has to conduct awareness programmes for micro enterprises The government should provide platform with all the facilities like industrial areas, infrastructure facilities, marketing facilities and finance facilities Before starting the organization they have to contact NGOs, Govt agencies for fund and other business plans Micro finance institutions should increase quantum of loan and the reduce the interest rates SHGs should provide raw materials at a concessional rate by going through bulk buying

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BIBLIOGRAPHY Internet :- Google.com Article: - Report Of Prime Ministers Task Force On Micro, Small and Medium Enterprises

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Reasons For The Success of Micro Enterprises

ANNEXURE QUESTIONNAIRE Respected Sir/Madam, We are MBA students of Kousali Institute of Management Studies, Dharwad. As a part of fulfillment of the course we have been given an Project to Study Reasons for success of micro enterprises I request you to kindly co-operate with me for short time and provide me with your valuable information. I assure you that this information will be kept confidential and is truly for my education purpose. Name of Enterprise:Year of Establishment:Nature of Business:No. of Employees working:Address:-

1. What the reasons were located this Micro enterprise? Rank the Following factors SI.No a To Make Profit b Self Employment c To eliminate Poverty d To Improve standard of living e Service Motive f Maximize The capital

2. Do you taken any assistance form Govt Agencies? If yes name the agency you taken assistance from. a) Yes b) No . 3. a) b) c) d) e) What are your sources of finance for setting up Micro enterprises? Own capital Bank loan Loan from friends/relatives SHGs Co-operative bank

4. Do you know about the micro finance it providing finance and any other sources of finance available? If yes name the sources that your organization used. a) Yes b) No .. 5. What are the problems you faced while setting up Micro enterprises?
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Reasons For The Success of Micro Enterprises

Financial problems SI.No a b c d 1 Small capital is available Lack of training in handling the capital efficiently No awareness about facilities available for micro enterprise High interest rates 2 3 4 5

Production problems SI.No a b c d E F 1 Infrastructure We have Unskilled laborers Lack the educated labors Lack of advanced machineries Lack of infrastructure facilities Availability of Raw materials 2 3 4 5

Marketing problems SI.No A B C D E F 1 Lack of marketing skills Poor packaging Inability to maintain standards for the products Lack of market knowledge Transportation 2 3 4 5

6. Why you selected a village area for setting micro enterprises? SI.No A B C D E F G 1 Nearness to market Raw material availability Demand for product Skilled labor Native Place SHG Located in same Place Asked to setup there by somebody
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Reasons For The Success of Micro Enterprises

7. How micro finance helped you to meet your objectives? SI.No A B C D E F 1 To Make Profit Self Employment To eliminate Poverty To Improve standard of living Service Motive Maximize The capital 2 3 4 5

8. How village Micro enterprises are different from urban Micro enterprises? SI.No A B C D E F 1 Infrastructure Skills Awareness Support from Education Education Operations 2 3 4 5

9. What are the reasons for the success of your organization? Please name them. SI.No A B C D E 1 Micro Finance Your entrepreneur skills Product that you produced Your customers SHG, GOVT and Any other Agencies 2 3 4 5

Thank you

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Reasons For The Success of Micro Enterprises

KOUSALI INSTITUTE OF MANAGEMENT STUDIES, KUD. Coding Sheet

1a 1b 1c 1d 1e 1f 2 3 45-1a 5-1b 5-1c 5-1d 5-2a 5-2b 5-2c 5-2d 5-2e 5-2f 5-3a 5-3b 5-3c 5-3d 5-3e 6a 6b 6c 6d 6e 6f 6g 7a 7b 7c 7d 7e 7f 8a 8b 8c 8d 8e 8f 9a 9b 9c 9d 9e 1 1 1 2 1 2 3b a b 2 2 3 4 2 2 2 2 3 2 3 2 3 4 3 2 2 2 3 1 3 3 2 2 2 2 3 3 2 4 3 4 3 2 4 2 2 2 3 2 3 1 4 2 3 4a b a 4 2 3 4 2 3 4 3 2 4 3 4 2 5 4 3 1 2 5 2 4 5 3 2 4 3 4 2 2 3 4 3 5 2 2 3 1 3 2 3 2 2 3 3 4 4b a b 2 3 1 3 1 4 2 1 2 2 2 3 2 3 4 2 3 2 3 2 3 2 4 4 3 4 3 2 1 3 2 1 3 4 4 2 2 1 4 4 4 2 5 2 3 4b d a 2 3 2 3 1 2 3 1 3 2 3 4 5 2 3 3 2 4 3 2 4 3 3 1 4 3 2 4 2 3 4 2 3 1 3 2 3 1 2 5 1 1 4 3 2 4b a a 1 3 3 2 2 2 3 4 3 5 1 5 3 2 1 1 2 1 5 1 5 5 3 1 3 2 3 1 1 2 2 1 2 2 5 2 1 2 5 6 2 1 4 3 1 1b a b 4 4 5 5 3 2 3 3 2 2 1 3 2 3 1 1 2 1 3 1 5 5 2 1 4 3 2 1 1 1 1 2 2 3 5 1 2 1 5 7 2 1 3 2 4 2b a b 2 1 3 2 1 3 3 5 1 2 1 3 3 2 2 1 1 3 2 1 5 5 3 1 4 2 2 1 1 2 2 3 2 2 4 2 3 3 2 8 3 5 3 4 1 3b a a 4 3 3 2 4 4 5 5 5 4 4 4 4 4 3 4 3 4 3 2 3 4 4 4 3 3 3 3 4 4 3 3 3 3 3 3 4 4 2 9 4 4 5 4 2 2b a b 4 2 4 2 3 3 2 4 3 2 3 3 4 2 5 2 2 2 2 4 5 4 2 2 2 4 2 1 2 2 1 3 2 4 22 2 3 4 10 3 2 3 2 2 4b a b 2 3 1 4 2 4 1 3 1 3 4 3 4 2 1 3 2 3 2 1 3 5 3 2 4 5 3 5 1 3 3 2 1 1 2 3 1 3 3

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