Key Words

Government Assistance, Financial Assistance, Environmental Assistance, Skilled Worker, Market Potential.

Introduction

India is a diverse and dynamic market with a burgeoning middle class, rapid urbanization, and increasing digital penetration. Entrepreneurs see abundant opportunities to innovate and create solutions to meet the needs of this evolving market. Entrepreneurship offers a platform for individuals to unleash their creativity and bring innovative ideas to life. India's rapidly growing startup ecosystem provides a fertile ground for creative thinkers and problem-solvers to thrive. Now a days, entrepreneurs experiment new things in order to progress, which one will improve economic life (Rosenberg and Birdzell, 1986). Entrepreneurship is a dynamic force. Development does not occur naturally when economic conditions are in favor; a force is needed to use them. Entrepreneurs have ability to perceive opportunities which other does not have (Sayigah, 1962). Entrepreneurship is taken as a driver of economic development and also included as fourth production factor in macroeconomics of production function. Entrepreneurship helps in economic development. One of the main improvements in economic development is to increase standard of living and growth of the economy as whole (Barro, 1991). Entrepreneurship is taken as a driver of economic development and also included as fourth production factor in macroeconomics of production function (Audretsch and Keiibach, 2004). It was released an article “International entrepreneurship research in emerging economies: A critical review and research agenda”, in this paper, the authors analyzed already published investigations, devoted to the study of entrepreneurship in developing economies. The authors took into account the findings of 26 out of the 88 studies, all of them were based on the results of various kinds of regression. This research was provided by a comparison of results of previous studies on a geographical basis. The authors noted that, despite the difference in the location of the countries that have been studied, in most investigations the focus of the research is the phenomenon of networking. Comparing the developed and developing countries, in the second case the owners increasingly rely on networks as a means of overcoming the difficulties associated with the development of their business (Lee & Peterson, 2001).

Literature Review

Das (1999) studied about women entrepreneurs in Tamil Nadu and Kerala. The study examined the problems faced by women in initiating, running and succeeding in business and differences between the experiences of women from developing worlds. Different reason to start business among women entrepreneur broadly classified into three categories: chance, forced and created or pulled entrepreneurs. He also mentioned that there are similarities between three groups (chance, forced and created or pulled entrepreneurs) on the basis of certain demographic variables but different in terms of sales volume, expected growth and success factors. This study also underscored the difficulties faced by women in getting funds for setting up business and meeting the working capital requirements. The women in the study differ from western counterparts in family background, marital status, family conflicts incubator organizations issues and environmental factors.

Punitha et al (1999) examined the problems and constraints faced by women entrepreneurs in the Pondicherry region. A sample of 120 females enterprises were personally interviewed during the period June to July 1999 out of which 42 belonged to rural and 78 to urban areas. The major problems faced by rural women entrepreneurs are competition from better quality products and marketing problems. The problems for urban entrepreneurs are, apart from the competition from better quality products, are the difficulty in getting loans. The least problems faced by both rural and urban women entrepreneurs are ignorance about schemes, distance from market and ignorance about agency and institutions.

Anitha and Kaxmisha (1999) studied that entrepreneurs are motivated by both pull and push factors and evidenced that entrepreneurs are no longer born but they can be made. They suggested that in order to make the women entrepreneurship movement to be a success government and non-governmental organizations have to play a vital role. Women entrepreneurs in backward areas need special assistance and timely marketing of goods.

Micheline and Leo (2000) analyzed the individual choice for self-employment and entrepreneurial success. They observed that entrepreneurial activity is found to be successfully undertaken by individuals who succeeded in increasing their entrepreneurial abilities and reducing the risk of starting businesses through a learning process that takes place through professional experience and apprenticeship or alternatively formal education. The learning processes takes place both before and after entry into the industry, as firm grow into a large size. However, financial constraints continue to play a major restraining role for entrepreneurship and firm growth.

Ahl and Marlow (2012) argued that there exists an occluded gender bias within the entrepreneurship discourse. This is contrary to the neo-liberal views on entrepreneurship that propose only personal efforts as determinants of reward and status. The study highlight that even though there have been calls to use feminist theories as analytical frames, there are scant evidences of such applications. The study argued that there are gendered assumptions that limit epistemological scope of research in this area and positions women entrepreneurs as either failed or reluctant subjects. The study proposed that there is a need to build a reflexive critical perspective. This can help in evaluating the current theoretical approaches on women entrepreneurship within the broader ambit of entrepreneurship research.

Chauhan and Aggarwal (2017) studied the role and implication of youth entrepreneurship in Indian economy. The study also throws a light on the challenges faced by youth entrepreneurs and steps that should be undertaken to tackle these challenges efficiently and encourage young individuals to start their ventures. The study found that Youth entrepreneurship is that one tool which can save any nation from drawing in the sea of high unemployment, poverty and stagnation. The list of benefits that young entrepreneurs provide to a nation is never ending.

Panda (2018) identified and ranked constraints faced by women entrepreneurs in developing countries. It offers a framework to differentiate between the constraints faced by male and female entrepreneurs. The paper engaged in an exhaustive literature review and uses a qualitative methodology to categorize and rank entrepreneurial constraints.The study found that constraints faced by women entrepreneurs in developing countries arise from gender discrimination, work-family conflict, difficulty in raising capital, lack of infrastructure, unstable business, economic and political (BEP) environments, lack of training and education and personality differences. The study suggested that in addition to financial constraints, unstable BEP environments need to be addressed as top priorities.

Lenka and Agarwal (2018) identified the factors that promote women entrepreneurship in Uttarakhand, a state in India.This study provides directions to policymakers and researchers to focus on developmental programmes for women entrepreneurs. The study found that Entrepreneurial learning occurs because of certain personal, social and environmentally driven motivational factors. Entrepreneurial learning helps in the development of personal, social, managerial and entrepreneurial competencies. These competencies are essential for the performance of an enterprise.

Agarwal (2019) described about women entrepreneurship and innovations based upon personal and business characters. She also tried to understand how innovation in Entrepreneurship leads to success and growth of an enterprise. 100 women entrepreneurs were chosen for data collection from India. Well-structured questionnaires used for data collection. She used different tools for data analysis i.e. mean, standard deviation, Cronbach’s alpha and ANOVA Result showed that women entrepreneur innovation of women associated with different factors education, type of finance, location of business, annual income and job security.

Objective of the Study and Research Methodology

Objective of the study

To examine about motivating factors, problems and prospects faced by entrepreneurs in Delhi.

Research Design

In the present study descriptive research design has been used to have a better understanding of the requirement and significance of entrepreneurship.

Data Collection

Primary data is collected through customized structured questionnaire. A structured questionnaire is classified into three parts, part one covered demographic profile, the part two covered motivating factors, the part three covered problems faced by entrepreneurs. The present study covers problems, prospects and motivation factors conducted in the northern region state of India i.e. Delhi.

Sample Profile

The age, gender, and other demographic and socio-economic data of entrepreneurs have also recorded. The response of 150 respondents is collected through a customized structured questionnaire with the help of judgmental sampling to cover 150 entrepreneurs from Delhi, which included 25% of women entrepreneurs. Researcher visited three main industrial area i.e. G.T. Karnal Road Industrial area, Okhla Industrial area Ph.I, II & III, and Najafgarh Road Industrial Area to collect data from different entrepreneurs of Delhi.

Data Analysis

Data collected through questionnaires and tabulated by using Excel and SPSS software, interpretation of data. Different statistical techniques are used for the analysis of data. According to the nature of data, appropriate statistical tools are applied, such as data reduction techniques factor analysis are used for motivating and problems of entrepreneurs. The statistical techniques are used after considering the objectives, scales used and characteristics of data normality.

Data Adequacy for Factor Analysis

Factor analytical technique has been applied to the twenty statements in order to extract dimensions influencing the motivating factors that drive individuals towards entrepreneurship. In order to carry out factor analysis, following steps have been followed. Initially, suitability of data for factor analysis has been tested through correlation matrix and all twenty statements used in the study have been found to be highly correlated. Further Overall Measure of Sampling Adequacy (MSA)-KMO has been computed and the calculated value of KMO (Kaiser-Meyer-Olkin) is found to be 0.715 which indicates that the sample is adequate enough to conduct factor analysis. Bartlett’s Test of Sphericity also shows statistically significant number of correlations among the variables. Hence, all the parameters discussed above support the application of factor analysis.

Extraction method and number of factors extracted

Principal Component Analysis (PCA) has been used for extracting factors and the number of factors to be retained is based on latent root criterion, variance explained and Scree plot analysis. Conclusions were obtained through orthogonal rotations with Varimax. Dimensions influencing the motivating factors that drive individuals towards entrepreneurship with eigen values greater than one is used as a criterion to determine the number of factors and all factor loadings greater than 0.45 (ignoring the sign) were retained (Hair et al., 2010).The analysis yielded a six-factor solution which explained 53.34 per cent of total variance but a statement “Ambition of family members inducing you to enter into the entrepreneurial world” has given low communality, hence deleted from the analysis and run factor analysis again with 19 statements.

Results and Discussions

Factor analytical technique has been applied to the nineteen statements using the steps described in the previous analysis on the data of Haryana. The analysis yielded again six factor solution with 56.93 per cent of variance. The results of factor analysis in this regard are presented in Table 1.

Dimensions influencing Motivating Factors that drive Individuals towards Entrepreneurship-A Factor Analytical Approach (Delhi)

Dissatisfaction from previous job and challenges (F1)

The first factor has been titled as “dissatisfaction and challenges” which includes seven variables i.e. dissatisfaction with the previous job compelling you to start the enterprise, seeking a challenge in the field of entrepreneurship, strong desire to achieve something independent in life, problem of unemployment accelerates the process of generating entrepreneurship in you, scope for using technical knowledge in the field, ambition to provide employment opportunities through your enterprise and seeking a self-employment as the basis for building your enterprise. This is the most important factor as it has explained 21.187 per cent of variance explained. This factor exhibits the dissatisfaction of individuals from the previous job drives them to start a new enterprise.

Environmental assistance (F2)

Second factor has been labeled as “financial assistance” which includes two variables i.e. your family background generates in you an inclination to take up entrepreneurial activity and Govt. Schemes & Funds availability to start a new venture. This factor explained the value of total variation is 8.801 per cent in the factor analysis.

Infrastructural and social status (F3)

Table illustrated that the third factor has been tagged as “infrastructural and social status” and included two variables i.e. the existence of infrastructural facilities in your area and attaining social status by your involvement in the enterprise. The concerned factor depicts that infrastructure as well as social status are the big motivators for individuals to become an entrepreneur. This factor explained 8.203 per cent of total variance.

Family history (F4)

The fourth factor has been named as “Family history” comprising of two variables i.e. the existence of traditional/ hereditary atmosphere makes you to enter into the entrepreneurial field and Encouragement from family members inspiring your entrepreneurial ambitions. This factor accounts for 6.614 per cent of variance and depicted that entrepreneurship is the result of strong family history into this activity.

Self urge to excel (F5)

Three variables i.e. Acquiring self prestige by starting enterprise, The existence of idle funds prepares you to enter into the enterprise and Self interest stimulating a desire to achieve something new constituted fifth factor named as “Self urge to excel” explaining 6.067 per cent of variance. This factor depicted that self motivation on the part of the individuals forces them to enter into entrepreneurship.

Market potential and financial assistance (F6)

The sixth factor has been named as “Market potential and financial assistance” which includes three variables i.e. Availability of financial assistance serves as a spark in forming your entrepreneurial idea, good scope for market potential and expansion of the concerned enterprise; motivate you to start the enterprise and Advanced entrepreneurial experience instills confidence in you to start the enterprise with 6.061 per cent of variance explained. The factor shows that if ample funds are available in the market they may consider to become entrepreneurs and moreover market potential itself can persuade them to enter into this activity.

Dimensions of Problems faced by Entrepreneurs-A Factor Analytical Approach (Delhi)

Factor analytical technique has been applied to the twenty five statements using the steps described in the previous analysis on the data of Delhi. The analysis yielded an eight factor solution explaining 64.353 per cent of total variance explained. The results of factor analysis in this regard are presented in Table 2.

Lack of support and knowledge (F1)

This factor suggests that the greater problems such as corruption, lack of knowledge about legal aspects, lengthy file work to start enterprise are found to be the major concerns among respondents. They considered these problems are the hindrances in setting up enterprise hence discourage them to do something on their own. This factor has been titled as “Lack of support and knowledge” comprising ofeight variables i.e. tough competition from larger and established units, corruption and political interference, lack of knowledge about legal aspects, absenteeism, frequent work stoppages, lengthy file work and formalities of loan, lack of motivation and encouragement by govt. and managing workers at work place. This factor explained the value of total variation is 20.772 per cent in the factor analysis.

Lack of major encouragements (F2)

Second factor has been labeled as “Lack of major encouragements” comprising of three variables i.e. Lack of encouragement from family and society, Lack of technical training and Lack of knowledge about modern technologies. These three variables are considered to be major discouragements on the part of the respondents to set up their own enterprise. Families, modern technologies and technical knowledge are the foundation of any business set up, hence lack of these variables discourage the respondents to take initiative to set up their own enterprise. This factor explained the value of total variation is 10.971 per cent in the factor analysis.

Lack of finance (F3)

The third factor has been tagged as “Lack of finance” comprising of two variablesi.e.inadequate fixed capital and high wage rates. This factor depicts that respondents at the first hand have inadequate sources to finance to be invested as initial capital in business and on another hand considered the expenditure related to the wages paid to workers could not be offset from the earnings of the business. Hence, they think lack of finance is the basic problem to set up new enterprise. This factor explained the value of total variation is 6.836 per cent in the factor analysis.

Lack of awareness (F4)

The fourth factor has been named as “Lack of awareness” includes two variables i.e. lack of Skill Enhancement workshops and lack of knowledge about various forms of government financial assistance. This factor explains 6.453 per cent of total variance and explicated the role of skill enhancement workshops and awareness about government schemes.

Inadequate banking support (F5)

The fifth factor has been named as “Inadequate banking support”includes three variables i.e.Lack of support from banks, higher dependence on family and relatives and high Interest Rates charged by Banks. Banks are the pivot to the existence and growth of any enterprise. But in India, banking services are not in the favour of entrepreneurship hence considered to be a major hindrance by respondents to set up its own enterprise. This factor explained the value of total variation is 5.581 in the factor analysis.

Lack of skilled workers and marketing centres (F6)

The sixth factor has been named as “Lack of skilled workers and marketing centres”includes three variables such as Non-availability of skilled workers, higher rate of credit transactions and Lack of marketing centre. This factor explains 5.056 per cent of total variance and reflected that the inadequacy of skilled workers and marketing centres are the problems which have been discouraging the respondents to set up their own enterprise.

Lack of marketing facilities/Skills (F7)

Two variables such as lack of marketing facilities and lack of marketing skills constituted seventh factor named as “Lack of marketing facilities/Skills”. This factor explains 4.563 per cent of total variance and demonstrated that inadequate marketing skills make entrepreneurs unsuccessful.

Lack of financial resources (F8)

Two variables such as Inability to provide securities for loan and Shortage of own funds constituted eighth factor named as “Lack of Financial resources” explaining 4.120 per cent of total variance. The main problem to become entrepreneurs is the shortage of their own funds which discourage them to join such occupation.

Dimensions influencing Future Prospects of Entrepreneurship and Women Entrepreneurs-A Factor Analytical Approach (Delhi)

Factor analytical technique has been applied to the ten statements using the steps described in the previous analysis on the data of Delhi. The analysis yielded a four factor solution explaining 64.531 per cent of total variance. The results of factor analysis in this regard are presented in Table 3.

Government support (F1)

The first factor has been titled as “Government support” which includes three variables i.e. low cost start up loans, specific financial support for women entrepreneurs and grant for business start up. This factor is foremost factor in explaining the future prospects of entrepreneurship with 23.848 per cent of total variance explained. Government support primarily aid in taking decision to become entrepreneurs. If government provides grant to set up business, it would definitely accelerate the activity of entrepreneurship.

Relaxation in micro finance schemes and vocational training (F2)

Second factor has been labeled as “Relaxation in micro finance schemes and vocational training” which includes two variables i.e.relaxation in micro finance schemes and open vocational training institutes in rural area. This factor explained the value of total variation is 15.155 in the factor analysis and highlighted that if relaxation is given to potential entrepreneurs, they can become good business persons. Moreover, at the same time, training institutes if provided proper and core training with respect to the process of start-ups and their survival, then entrepreneurship would be accepted by majority of respondents.

Adequate training (F3)

The third factor has been named as “Adequate training” and includes three variables i.e. enhancing the skills by adequate training, conducting computer training programmes and support for the establishment of co-operatives. This factor explained the value of total variation is 13.753 in the factor analysis. This factor suggests that imparting training to the potential entrepreneurs would give a boost to start-ups. Sometimes, potential entrepreneurs are reluctant to join state-ups because there are very less number of centres imparting training to individuals seeking entrepreneurship.

Support to women entrepreneurs (F4)

The fourth factor “Support to women entrepreneurs” includes two variables such as, tax concession for women entrepreneurs and access to loan guarantees explaining 11.774 per cent of total variance. This factor has got the least priority in the factor analysis that government has not yet accepted concession of tax to the women entrepreneurs. Moreover, they have an access to loan guarantees.

Conclusion and Suggestion

It has been concluded with respect to the dimensions of motivating factors in case of Delhi, six factors have been extracted. These factors comprises of dissatisfaction from previous job and challenges, environmental assistance, infrastructural and social status, family history, self urge to excel and market potential and financial assistance. As far as the dimensions related to the problems faced by entrepreneurs is concerned, eight dimensions of problems have been explored on the data provided by respondents residing in Delhi. These factors are lack of support and knowledge, lack of major encouragements, lack of finance, lack of awareness, inadequate banking support, lack of skilled workers and marketing centres, lack of marketing facilities/Skills and lack of financial resources. As regards to the dimensions related to the future prospects of entrepreneurship and women entrepreneurs in Delhi is concerned, four factors have been extracted. These include government support, relaxation in micro finance schemes and vocational training, adequate training and support to women entrepreneurs. Since government is pursuing for the future prospects of entrepreneurship and women entrepreneurs, this implies that they are doing well on such aspect. They are expected to frame specific schemes for SSI sector for the future prospects of entrepreneurship and women entrepreneurs. Lastly, it has been suggested to policy makers and regulatory authorities to create, aware and implement the more easily and innovative financial schemes to encourage the new start-ups especially for women entrepreneurs and unemployed youth. Generally, it has been suggested to organize awareness programmes at the schools and colleges by government agencies and regulatory authorities to educate the young blood about various opportunities they can avail to start their business rather than searching for the job, so as to make them job creators not the job seekers.

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Received: 28-Apr-2023, Manuscript No. IJE-24-14794; Editor assigned: 01-May-2024, Pre QC No. IJE-24-14794 (PQ); Reviewed: 15-May-2024, QC No. IJE-24-14794; Revised: 20-May-2024, Manuscript No. IJE-24-14794 (R); Published: 27-May-2024