Factors Influencing Rural Entrepreneurs for Managing Enterprise

Abstract

The factors influencing the respondents to manage an enterprise are economic, social, psychological and environmental. These drives are highly essential to start and / or to manage an enterprise. Even though the variables are too many, the present study confined itself to economic independence, self-prestige, employment opportunities, technical knowledge, urge to achieve, aspiration about children, financial assistance, use of
idle funds, self-interest, encouragement of family members, organizational skill, self employment, revival of sick unit, social status, entrepreneurial experience, family background, traditional / hereditary, market potential, earning income, more dependents, unemployment and challenge seeking. The above said 22 variables were rated by the respondents at a five point scale namely highly important, important, moderate, not important and not at all important which has the score value of 5,4,3,2 and 1 respectively. Factor analysis identifies underlying variables or factors that explain correlations within a set of observed variables. This procedure is used in data reduction to identify a small number of factors that explain the variance observed in a much larger number of manifest variables. In this study, the factor analysis technique was used to reduce the long list of motivation variables which influence the entrepreneurs to manage or start the enterprises into meaningful factors.