STUDY ON ENTREPRENEURIAL BEHAVIOUR OF FARMERS IN THONDAMUTHUR BLOCK OF COIMBATORE DISTRICT

SEMINAR REPORT

SUBMITTED BY SHABEERA SULTANA 11-601-008

DEPARTMENT OF AGRICULTURAL RURAL MANAGEMENT CENTRE FOR AGRICULTURAL RURAL DEVELOPMENT STUDIES AGRICULTURAL COLLEGE AND RESEARCH INSTITUTE TAMIL NADU AGRICULTURAL UNIVERSITY COIMBATORE

CONTENTS

Chapter No.
I II III IV V

Title
INTRODUCTION LITERATURE REVIEW DESIGN OF STUDY RESULT AND DISCUSSION SUMMARY REFERENCES

Chapter 1 INTRODUCTION

The entrepreneur is part of a complex process of new venture creation- (Gartner)

It is now widely accepted that, apart from the start up phase, most firms are more concerned about survival rather than growth and relatively few are especially entrepreneurial (Gray 1998). Consequently, a lot of research in this field has focused on finding the characteristics that set entrepreneurs and their firms apart from others. Elizabeth Chell (1985, 1999), a social psychologist, has examined numerous psychological trait-based approaches and concluded that, whilst psychological aspects such as entrepreneurial intention and the ability to recognize opportunities are strongly linked to entrepreneurial behaviour, the context in which the entrepreneur operates is also very important. Entrepreneurship reflects complex interactions between the individual and the situation, which has to be dynamic because business situations are always changing. However, a commonly quoted empirical and desk research study of new venture start-ups, that has stood the test of time over the past quarter-century, was conducted through the Massachusetts Institute of Technology by Jeffrey Timmons and colleagues (Timmons et al. 1977). They identified 14 important entrepreneurial characteristics of successful enterprise owners which still frequently crop up in entrepreneurship research. Behavioural charcteristics of entrepreneurs

drive and energy self-confidence high initiative and personal responsibility internal locus of control tolerance of ambiguity low fear of failure moderate risk taking long-term involvement money as a measure not merely an end

use of feedback continuous pragmatic problem solving use of resources self-imposed standards clear goal setting.

These characteristics appear consistently in other entrepreneurial research studies. For example, more than 20 years ago in a study of Irish entrepreneurs, Cromie and Johns (1983) identified achievement, persistence and self-confidence as general successful business characteristics as well as internal locus of control and commitment to the business, as the characteristics peculiar to entrepreneurs. Some of the qualities that people often find a bit obscure include tolerance of ambiguity (which basically refers to the ability to accept contradictory or unexpected evidence of something while keeping an open mind) and fear of failure (which can lead to pushy, goaldominated behaviour but, in fact, is the opposite of need for achievement nAch mentioned in Section 1; the anxiety caused by the fear can sometimes be strong enough to cause the individual to deliberately bring about the failure that is feared). Low fear of failure means that the entrepreneur is prepared to risk things going wrong and can handle setbacks without being deterred (which is associated with but not quite the same thing as high nAch, where failure can lead to severe disappointment and loss of confidence). High achievement motivation is a great driving force but low fear of failure may be very useful in times of business chaos and uncertainty. There is a tendency for high nAch people to come from very supportive backgrounds and for them to be motivated to achieve in different areas. In contrast, high fear of failure people tend to come from disrupted or non-supportive backgrounds and focus more obsessively on areas where they are more likely to achieve their goals (Kets De Vries 1977) high fear of failure people would have comparatively low perceived capabilities and expectations whereas high nAch people may be a bit over-confident about their own capabilities and stretch their expectations by setting challenging targets). However, these tendencies are not set in stone and the actual experience of business can have a big effect in inducing either more caution or more confidence.

Still, if you are uncertain of your own drive to succeed or your ability to persist, the wisest course of action is to consider pushing your idea as part of a team. Small groups not only provide support, they also have a wider range of abilities and skills and often come up with more considered decisions. Perhaps a little less familiar is the quality that successful small business owners are said to have high internal locus of control. This means that they believe that their behaviour determines what happens to them and that they can control their own behaviour. This is linked to the need for autonomy and personal independence expressed by many entrepreneurs as their prime motivation for setting up their own firms (Gray 1998). Internal locus of control has featured fairly consistently in studies on the psychological characteristics of entrepreneurs. Essentially the concept implies three separate beliefs on the part of individuals that: 1. the outcome of events and situations are susceptible to intervention 2. individuals can intervene and influence the outcome of situations positively from their perspective 3. they themselves have the skills and capacity to intervene effectively in certain situations or to influence certain events. The self-confidence, energy flexibility and opportunism associated with entrepreneurial behaviour suggests that entrepreneurs are individuals who are accustomed to getting involved and that they expect positive results from their involvement. In other words, they are prepared to expend energy and mental effort because they expect and often receive appropriate or, in their terms, valuable rewards. Also, they are flexible and opportunistic because they believe they have the capacity to become involved across a broad range of situations. Internal locus of control beliefs are essential to the success of self-motivated behaviour and form a central core of the entrepreneur's self-concept. However, it is equally clear that entrepreneurs will not be the only people sharing these beliefs. Rural development is more than ever before linked to entrepreneurship. Institutions and individuals promoting rural development now see entrepreneurship as a strategic development intervention that could accelerate the rural development process. Further, more institutions and

individuals seem to agree on the urgent need to promote rural enterprises; development agencies see rural entrepreneurship as an enormous employment potential; politicians see it as the key strategy to prevent rural unrest; farmers see it as an instrument for improving farm earnings; and women see it as an employment possibility near their homes which provides autonomy, independence and a reduced need for social support. To all these groups, however, entrepreneurship stands as a vehicle to improve the quality of life for individuals, families and communities and to sustain a healthy economy and environment (Petrin, 2000). Development of economy of any nation depends primarily on the important role played by entrepreneurs. The role played by such entrepreneurs is of vital importance in developing country like India, where there are ample opportunities for using innovations to exploit the available resources, particularly in the field of agriculture. Thus, in all economic development activities more and more focus is being centered on entrepreneurship of the people. Entrepreneurship has been now recognized as a concept, not only vital for starting industries but also in the development of agriculture. Further, in a heterogeneous and stratified society like India, it is not adequately realized that the characteristics which distinguish entrepreneurship may not be uniform for its different strata. In other words, characteristics identified for urban entrepreneurs may not apply equally well to rural entrepreneurs. Entrepreneurship relating to self-employment in small industries may vary from entrepreneurship related to agriculture. The entrepreneurs are key persons of any country for promoting economic growth and technological change. The development of entrepreneurship is directly related to the socioeconomic development of the society. Eighty per cent of the population resides in the rural areas and seventy per cent of the work force depends on agriculture for their livelihood. Therefore role of farmers is very important in agricultural and socio-economic development of the nation. In this context, it was felt necessary to determine the level of entrepreneurial behaviour among the farmers.

OBJECTIVES OF THE STUDY To determine the entrepreneurial behavior of farmers To assess the characteristic of farmers and to analyze their relationship with entrepreneurial behavior To identify factors which affect their entrepreneurship behavior SCOPE OF THE STUDY The importance of entrepreneurship in economic development is being recognized all over the world. A widely accepted view is the following : while personal characteristics as well as social aspects clearly play some role, entrepreneurship and entrepreneurs can also be developed through conscious action. Development of entrepreneurs and of entrepreneurship can be stimulated through a set of supporting institutions and through deliberate innovative action which stimulates changes and fully supports capable individuals and groups. It is argued that education and training contribute significantly to the development of entrepreneurship. So, to design effective training programmes, estimating the current level of entrepreneurial behaviour of farmers is essential. With this in view, the present study was undertaken. The results of the study therefore, will help the policy makers and programmers to design educational and training programmes specifically for entrepreneurship promotion, that can greatly affect the supply of entrepreneurs and thus indirectly represent an important source of entrepreneurship. This study will help to streamline strategies for the development of farm entrepreneurs

Chapter II LITERATURE REVIEW There are literally dozens and dozens of different definitions of the entrepreneur and the concept of entrepreneurship. THE ENTREPRENEUR The word entrepreneur appeared for the first time in the French language Entreprendre meaning to undertake. In France, in sixteenth century, a leader of the military expedition was referred to as entrepreneur. The study of the entrepreneur is actually one step removed from the primary phenomenon of entrepreneurship the creation of organisations, the process by which new orgnisations come into existence. This behavioural approach views the creation of an organisation as a contextual event, the outcome of many influences. CONCEPT OF ENTREPRENEURSHIP According to Stevenson and Sahlman, (1989) Entrepreneurship is most fruitfully defined as the relentless pursuit of opportunity without regard to resources currently controlled...there is an underlying process in entrepreneurship that starts with the identification of opportunity and ends with harvesting the fruits of ones labours. Bheemappa (2003) described entrepreneurship as the creative and innovative response to the environment, which can take place in variety of fields of social endeavour business, industry, agriculture, education, social work and it is the potent limiting factor in economic development. Samwel (2003) viewed entrepreneurship as a function which seeks investment and production process by raising capital, arranging labour and raw materials, finding site, introducing new techniques and commodities and discovering new sources for the enterprises.

According to Suresh Reddy (2004) entrepreneurship is a composite skill, the resultant of a mix of many qualities and traits these include tangible factors as imagination, readiness to take risks, ability to bring together and put to use other factors of production, capital, labour, land, and also intangible factors such as the ability to mobilize scientific and technological advances. ENTREPRENEURIAL BEHAVIOR Subramanyeswari and Veeraraghava Reddy (2003) operationalized entrepreneurial behaviour as the changes in the knowledge, skill an d attitude of women livestock farmers towards dairy enterprises. Vijay Kumar et al.(2003) operationalized entrepreneurial behaviour as the cumulative outcome of information seeking behaviour, farm decision making, leadership ability, risk taking ability, innovativeness, achievement motivation and market orientation of respondent farmers. Entrepreneurial behavior is also increasingly recognized as a proponent to social change and facilitating innovation within established organizations (Kuratko, Ireland, Covin, & Hornsby, 2005). Entrepreneurial behavior has been defined as the study of human behavior involved in identifying and exploiting opportunities through creating and developing new ventures (Bird & Schjoedt, 2009) as well as exploring and creating opportunities while in the process of emerging organizations (Gartner, Carter, & Reynolds, 2010). A recent Special Issue on Entrepreneurial Behavior emphasizes the importance of refocusing research attention towards concrete and observable human action in venture and organizational creation and emergence (Bird, Schjoedt, & Baum, 2012). Goals of research on entrepreneurial behavior include: to explain, predict, shape and change behavior; to understand the relationship between individual and team/venture levels; and to understand how entrepreneurial behavior can be learned and what influences development, adaption and adoption.

Jarkko Pyysiainesn et al. showed that the contexts of conventional farming and business diversification called for clearly different entrepreneurial skills, some of which were more amenable to teaching than others.

Chapter III DESIGN OF STUDY

Study area Thondamuthur block is a revenue block of Coimbatore district. In Thondamuthur block, MBCs constitute a major proportion of 45.60 closely followed by BCs with 44 per cent respectively. The farm households are mostly headed by males, the percentage being 98.80 and follow small family norms. Thondamuthur block is covered with red soil (98.4 per cent). Red soil has iron content and is fit for crops like red gram, bengal gram, green gram, groundnut, castor seed etc Agriculture is the main occupation and farmers are also involved in allied activities like goat rearing based on which four villages were selected Devarayapuram Thennamanallur Selection of respondents A farm entrepreneur is one whose main occupation is agriculture coupled with one or more allied activities like poultry, sericulture, goat rearing , mushroom cultivation etc. The present study includes farm entrepreneurs who run goat rearing as commercial venture was selected. The data was collected through Purposive sampling technique A total of 120 respondents were selected for the study. In the present study, entrepreneurship behaviour among the farmers is studied in the light of seven variables namely Innovativeness, Achievement motivation, Decision-making ability, Risktaking ability, Aspiration, Locus of control, Management orientation. Each aspect of entrepreneurship is based on some related statements, which are measured on a five-point scale. Narasipuram Madampatti

TOOLS OF ANALYSIS I . Entrepreneurial Behaviour Index (EBI) Among the Farmers Entrepreneurship is common to all businesses. Agriculture is not an exception. Farmers should have entrepreneurship qualities in order to perform better in the field. The behaviour is measured with the help of an index called Entrepreneurial Behaviour Index (EBI).

(Source :IJEMR January 2012- Vol2- Issue 1) Where, SEV = Score on entrepreneurial variables MSEV = Maximum score on entrepreneurial variables. i = 1 n number of variables included in entrepreneurship

II. Measurement of components of Entrepreneurial Behavior Innovativeness This refers to the behaviour pattern of an individual who has interest and desire to seek changes in farming techniques and is prepared to introduce such changes into his operations wherever practical and feasible. For quantifying the innovativeness or innovative characters of the respondents Innovativeness proneness scale used by Fillis et. al (2004)

Three sets of three statements were read out to farmers and asked to indicate one choice from each of the three sets and scoring was given according to their choices. The statements are given below: 1. a) I feel restless till I try out new farm practices I have heard about. b) I try to keep myself upto date with information on new farm practices but that does not mean I will all new methods on my farm. c) they talk of many new farm practices these days but who knows they are better than old ones. 2. a) From time to time I have heard of several new farm practices and I have tried most of them in last few years. b) I usually wait to see what results my neighbours obtain before I have tried out the new farm practices c) I believe that traditional ways of farming is best 3. a) Im cautious about trying new practices b) Often new practices are not successful however if they are promising I would surely like to adopt them c)Our forefathers are wise in their farming practices and I dont see any reason in changing these old methods. Decision making The decision making ability of a farmer is operationally defined as the degree of weighing the available alternatives in terms of their desirability and their likelihoods and choosing the most appropriate one for achieving maximum profit on his farming. The scale developed by Singh(1980) which was also adopted by Rao (1995) and modified by Nandpurkar(2000) with suitable modifications was found to be more appropriate to measure decision making ability of farmers. It was slightly changed and for each item relating to the management of farm operations and resources , the response categories were not considered , considered after consultation with others and decision taken independently for which scores were given as 0,1 and 2

respectively. The scores were summed up and maximum decision making score for each response was obtained. The items were: - to start new enterprise - to try new varieties - to try new practice - to change cropping pattern - buying /selling of land - land improvement - hiring labour

Achievement motivation It was operationalized as the desire for excellence to attain a sense of personal accomplishment . It was measured with the help of procedure adopted by Chandrapaul (1998). Six item scale with five alternative response to each item with scores 5 to 1. The respondents were asked to give their responses to each item .The six items are: a) Success brings belief or further determination and not just pleasant feeling. SA/A/UD/DA/SD b) How true is it to say that our efforts are directed towards avoiding failure F/PF/UD/PT/OT c) How often do you seek opportunity to excel nearly always/ frequently/half the time/ seldom/hardly ever d) Would you hesitate to undertake something

nearly always/ frequently/half the time/ seldom/hardly ever e) How many spheres lead you to failure very few/few/ some /many/ most f) How many situations do you think you will succeed in doing as well as you can very few/few/ some /many/ most

Risk taking ability Risk orientation was operationalized as the degree to which the farmer is oriented towards risk and uncertainty in facing problems in farming. Risk taking ability was measured by a scale developed by Supe (1970). It consists of both positive and negative statements. The responses fall into a five point continum- SA, A, UD,DA,SDA Positive statements 5 4 3 3 2 4 1 5

Negative statements 1 2 The statements are as below

1. A farmer should grow large number of crops to avoid greater risks involved in growing one or two crops. 2. A farmer should take more of a chance in making big profit than to be content with a smaller but less risky profit. 3. A farmer who is willing to take greater risk than average farmer usually does better financially. 4. It is good for a farmer to take risk when he knows his chance of success is fairly high. 5. It is better for a farmer not to try new farming methods unless most others have used it with success 6. Trying an entirely new method in farming by a farmer involves risk but it is worth.

Aspiration Aspiration is measured by a scale used by Porchezian (1998) 1. what would you expect to be the increase in your land holding in the next three years a) increase by one acre b) 2-3 acres c) 4-5 acres d) 6-7 acres e) 8 acres and above

2. In how many years you expect that your annual income would become doubled a) One year b) two years c) three years d) > three years 3. What would you expect to be the increase in production in the next three years a) As it is b) double c) more than double 4. How many enterprises would you like to add to yours in the next 3 years a) One b)two

c) three d) > three 5. What would you expect to be your general standard of living in next 3 years somewhat better/ mostly better/certainly better

III. Independent variables measurement 1. Age Chaudhari et.al.,(2007) young middle aged Old <34 35-44 >44

2. Education Chaudhari et.al.,(2007) illiterate can read read and write primary secondary

higher secondary graduation

3. Occupation According to Jarkko Pyysiainesn (2006), Occupation is defined as the extent to which a respondent is agriculturally occupied . Agriculturally occupied Non- Agriculturally occupied

4. Experience in agriculture Chandramouli et.al.,(2007) classified as:

<10 years 10-20 years >20 years

Low Medium High

5. Experience in enterprise Chandramouli et.al.,(2007) <5 years 5-10 years >10 years 6. Farm size Low medium High

According to Jarkko Pyysiainesn (2006), farm size is classified as: Upto 2.5 acres 2.5 5 acres 5-10 acres >10 acres marginal farmers small farmers medium farmers Big farmers

7.

Size of enterprise

Chandramouli et.al.,(2007) Upto 20 goats 20- 40 goats >40 goats small Medium Big

8. Annual income from agriculture Ramasamy (1999): Depends upon crop and land size Low Medium High upto 150000Rs 150001- 300000Rs >300000Rs

9. Annual income from enterprise Chandramouli et.al.,(2007) low Medium High upto 40000Rs 40001- 80000 Rs >80000Rs

10. Scientific Orientation Scientific orientation is operationalized as the degree to which farmer is oriented to the use of scientific methods in decision making in farming. It was measured with the help of a scale developed by Supe (1969). The scale is of six statements amongst which the second statement alone was negative. The responses for each statement was rated over a five point continuum viz., strongly agree, agree ,undecided, disagree, strongly disagree. The minimum and maximum score range from 6 and 30. Higher score indicated better orientation towards scientific farming. A scale of 6 statements was used and the scoring procedure followed SA positive negative 5 1 A UD DA SDA 4 2 3 3 2 4 1 5

Statements for scientific orientation

1. New methods of farming give better results to farmers than old methods 2. The way a farmers forefather farmed is still the best way to farming today 3. Even a farmer with lot of experience should use new methods of farming 4. Though it takes time for a farmer to learn new methods in farming it is worth than efforts 5. A good farmer experiments with new ideas in farming 6. Traditional methods of farming have to be changed in order to raise the level of living of a farmer

11. Economic Motivation It refers to the values or attitudes which attach greater importance to profit maximization with the ends and means. This variable was measured with the help of scale developed by Supe (1969). It consists of six statements of which first five statements are positive and last one being negative. The responses for each of the statement was rated on a five point continuum namely strongly agree, agree, undecided, disagree and strongly disagree. With the scores of 7, 5, 4, 3 and 1 for positive statements and 1, 3, 4, 5 and 7 for negative statements, respectively. Maximum and minimum score, an individual could obtain on this scale were 42 and 6 respectively. Higher score revealed that the respondent is motivated towards profit maximization to a greater degree. SA positive negative The statements are: 5 1 A UD DA SDA 4 2 3 3 2 4 1 5

Statements for Economic motivation 1. The community respects rich farmer more than poorer ones 2. Prestige is more important than profit in judging the success of farm 3. Money alone does not give entire satisfaction in a farmer life 4. A farmer should always aim at social recognition rather than recognition on monetary ground. 5. A farmer should adopt on innovation which helps him to get more money 6. A farmer requires only money to achieve most goals in his life IV. Correlation When two variables covary, there exists a relationship between them. Correlation coefficient measures the strength and direction of a linear association between two variables. It ranges from 1 to +1. The closer to the absolute value is to 1, the stronger the relationship. When the correlation coefficient is zero, it indicates that there is no linear relationship between variables. The coefficient can either be positive or negative To find out the association between independent variables and entrepreneurial behavior and its significance Correlation analysis is used . V. Regression analysis Regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables. More specifically, regression analysis helps one understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the independent variables that is, the average value of the dependent variable when the independent variables are fixed. Less commonly, the focus is on a quantile, or other location parameter of the conditional distribution

of the dependent variable given the independent variables. In all cases, the estimation target is a function of the independent variables called the regression function. In this study, multiple regression analysis was to find the functional relationship between independent variables and entrepreneurial behavior = a + b1 X1 +b2 X2 + bn Xn here = entrepreneurial behavior a = intercept b1 , b2 bn = partial regression coefficient X1 , X2 . Xn = independent variables

Chapter IV RESULTS AND DISCUSSION

I.

Entrepreneurship behavior of farmers Table 1. Entrepreneurial Behavior index Entrepreneurial Behavior index (in percentage) Low (< 40) Medium (41-80) High(>80) 37 70 13 30.84 58.33 10.83 Frequency Percent

120

100.0

From table 1 it is inferred that, majority of the farmers (58.33%) have medium entrepreneurial behavior index and one third of the farmers have low entrepreneurial behavior index. Thus there is potential among the farmers to become entrepreneurs and scope to improve their entrepreneurial behavior. II. Results of independent variables measurement

1. Age Table 2. Classification of farmers based on age Frequency Young Middle aged Old 22 56 42 120 Percentage 18.33 46.67 35.0 100.0

From table 2, it is found that 46.67% of farmers were middle aged 2. Education Table 3. Classification of farmers based on education Frequency Illiterate 2 Percentage 1.67

Can read Can read and write Primary Secondary Higher secondary Graduation

7 8 12 16 43 32 120

5.83 6.67 10.0 13.33 35.83 26.67 100.0

3. Occupation Table 4. Classification of farmers based on occupation Frequency Agriculture Non-agriculture 85 35 120 Percentage 70.83 29.17 100.0

Among the total number of respondents, 70% of them are agriculture based and 30% are nonagricultural. 4. Experience in agriculture Table 5. Classification of farmers based on their experience in agriculture Level Frequency Percentage

Low Medium High

6 89 25 120

5 74.17 20.87 100.0

Among the 120 Farmers surveyed, 75% of farmers are well experienced in agriculture. 5. Experience in enterprise Table 6. Classification of farmers based on their experience in enterprise Level Low Medium High Frequency 54 66 0 120 Percentage 45.0 55.0 0 100.0

55% of farmers have medium experience in enterprise. 6. Farm size Table 7. Classification of farmers based on their Farm size Size Upto 2.5 acres Frequency 5 Percentage 4.16

2.5- 5 acres 5-10 acres >10 acres

39 56 20 120

32.50 46.67 10.67 100.0

From table 7, it is inferred that 47% of farmers posses farm size of 5-10 acres thus are medium farmers.

7.

Size of enterprise Table 8. size of enterprise No. of goats Upto 20 nos. 20-40 nos. >40 nos. Frequency 20 76 24 120 Percentage 16.67 63.33 20.00 100.0

About 63% of farm entrepreneurs had goats ranging between 20-40 nos. 8. Annual income from agriculture

Table 9. Annual income from agriculture Frequency Low Medium High 15 93 12 120 Percentage 12.50 77.50 10.00 100.0

78% of respondents have medium income from agriculture.

9. Annual income from enterprise Table 10. Annual income from enterprise Frequency Low Medium High 30 47 43 120 Percentage 25.00 39.17 35.83 100.0

10. Scientific orientation Table 11. Scientific orientation

Frequency Low Medium High 25 74 21 120

Percentage 20.83 61.67 17.50 100.0

Medium scientific orientation indicates farmers are creative and skill oriented.

11. Economic motivation Table 12. Economic motivation Frequency Low Medium High 30 85 5 120 Percentage 25.00 70.83 4.16 100.0

Farmers are economically motive and try to maximize their profits.

III.

Results of Correlation of independent variables towards entrepreneurial behavior Table 13. Correlation coefficients of independent variables towards entrepreneurial behavior Variables X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 Characteristics Age Education Occupation Experience in agriculture Experience in enterprise Farm size Size of enterprise Annual income from agriculture Annual income from enterprise Scientific orientation Economic motivation r value - 0.083 NS 0.6399 ** - 0.3062 NS - 0.1766 NS - 0.0419 NS 0.2792 ** 0.2579 ** 0.1870* 0.3117 ** 0.5418 ** 0.4919**

* Significance at 5% level ** significance at 1% level

From table 13, we can see, the characteristics education, annual income from agriculture, annual income from enterprise, farm size, size of enterprise, economic motivation and scientific orientation has positive sign and thus are significantly related. However, age, occupation, experience in agriculture and enterprise have no significance.

Education has positive sign which demonstrates that the level of educational background ensures entrepreneurial function. Farm size and enterprise size are also positive which tells that large farms favour the entrepreneur to make their farms more capital intensive. Annual income from agriculture and Enterprise significantly related More income derived, they are motivated to establish new enterprise. More Scientific Orientation makes one to have depth knowledge and makes one progressively creative having wide exposure and skill oriented. The entrepreneur is an economic man who tries to maximize his profits by following innovative methods.

IV.

Results of regression between independent variables and entrepreneurial behavior

Table 14. Functional relationship between independent variables and entrepreneurial behavior Characteristics Partial regression SE of regression 0.0013 0.0024 0.0187 0.0018 0.0018 partialt value

Age Education Occupation Experience in agriculture Experience in enterprise

0.0009 0.0038 -0.0085 0.0016 -0.0004

0.731 1.552 -0.457 0.842 -0.209

Farm size Size of enterprise

0.0089 -0.0021

0.0032 0.0023

2.755* -0.910

Annual income from agriculture -0.0033 Annual income from enterprise Scientific orientation Economic motivation -0.0001 0.0063 -0.0014

0.0015 -0.0001 0.0026 0.0055

-2.252* -0.734 2.477* -0.250

R2 = 0.7184 a= 1.2012 F= 14.31* 72% of variation in dependent variable (entrepreneurial behavior ) is explained by independent variables (age, annual income from farm and enterprise, experience, education occupation, size of farm and enterprise, scientific motivation, economic motivation) chosen for study.

V.

Factors that affects entrepreneurial behavior of farmers Table 15. Factors affecting entrepreneurial behavior of farmers

Personal factors Achievement motivation

Number 74

Percentage 61.67

Experience Self confidence Own interest Risk taking ability Educational qualification Eagerness to evaluate enterprise Anticipation of future possibilities

58 35 32 18 12 8 4

48.33 29.17 26.67 15.0 10.0 6.67 3.33

Physical Economic factors factors Availability Economic gain of inputs Good Prior income transport service Farm Financial size assistance Market Possession factors of ancestral property Good Sociological market factors potential Responsive Previous occupation prices Societal influence Family background 106 120 97 78 46 18 12 108 92 79 78 15 88.33 100.0 80.83 65.0 38.33 15.0 10.0 90.00 76.67 65.83 65.00 12.50

Chapter V

SUMMARY

Entrepreneurship is the central force of any economic activity and prime mover of development and most essential component for the development. Development of economy of any nation depends primarily on the important role played by entrepreneurs. The role played by such entrepreneurs is of vital importance in a developing country like India, where there are ample opportunities for using innovations to exploit the available resources, particularly in the field of agriculture. Thus, in all economic development activities, more and more focus is being thrust upon entrepreneurship of the people. Entrepreneurship has been now recognized as a concept, not only vital for starting the industry but also in the development of agriculture. In a heterogeneous and stratified society like India, it is not adequately realized that the characteristics which distinguish entrepreneurship may not be uniform. Therefore, the entrepreneurial activity in particular section of the population has to be considered. The generalizations can be based numerous studies involving different heterogeneous sections. This research study was therefore aimed at finding out facts, results, in designing new strategies for farm entrepreneurs. Keeping the above cited facts in view, an attempt was made to critically analyse the entrepreneurial behaviour of farmers. The specific objectives of the study were: To determine the entrepreneurial behavior of farmers To assess the characteristic of farmers and to analyze their relationship with entrepreneurial behavior To identify factors which affect their entrepreneurship behavior

The study was conducted in Coimbatore. In Coimbatore district, thondamuthur block was selected. The total sample size for the study constituted 120 respondents. The data was collected

by personal interview method. Statistical tools like percentage, correlation and regression coefficient were used to analyse the data. The measurement of entrepreneurial behavior of farmers revealed that there is still more potentiality and scope to improve. Entrepreneurial training programs should be tailored to the farmers to promote entrepreneurial behavior. The entrepreneurial behavior of farmers was not influenced by their age but it was education which acts to promote entrepreneurial behavior among farmers and is effective with all age groups. As majority of farmers were middle aged, this group should be imparted training, so that they can act as catalysts in motivating other farmers. The characteristics education, annual income from agriculture, annual income from enterprise, farm size, size of enterprise, economic motivation and scientific orientation are significantly related. However, age, occupation, experience in agriculture and enterprise have no significance. Education demonstrates that the level of educational background ensures entrepreneurial function. Significant relationship of Farm size and enterprise size infers that large farms favour the entrepreneur to make their farms more capital intensive. Annual income from agriculture and Enterprise significantly related More income derived, they are motivated to establish new enterprise. More Scientific Orientation makes one to have depth knowledge and makes one progressively creative having wide exposure and skill oriented. The entrepreneur is an economic man who tries to maximize his profits by following innovative methods.

REFERENCES

Anitha, B.,2004, A study on entrepreneurial behaviour and market articipation of farm women in Bangalore rural district of Karnataka. M.Sc. (Agri.) thesis, University of Agricultural Sciences,Bangalore.

Bheemappa, A.,2003, Entrepreneurship development in agriculture. Yojana 47(12) : 1920

Chandramouli et.al.,2007 Comparative Analysis of Entrepreneurial Behaviour of Farmers in Irrigated and Dry Land Areas of Raichur District of Karnataka Karnataka J. Agric.Sci.,20(2): (320-222)

Chaudhari et.al.,2007,A Scale for Measurement of Entrepreneurial Behaviour of Dairy Farmers,Karnataka J. Agric. Sci., 20 (4), (792-796)

Jarkko Pyysiainesn, et.al. 2006, Developing the Entrepreneurial Skills of Farmers: Some Myths Explored, International Journal of Entrepreneurial Behaviour and Research, Vol.12, No.1, pp.21-39

Suresh reddy, J., 2004, Entrepreneurship : Concept and Development. Third Concept, 17(203) : 39-42. SAMWEL, K. L.,2003, Co-operative entrepreneurship A perspective. Kurukshetra, pp. 20-23 TIMMONS, J. A., 1989, The entrepreneurial mind, And over Brick House. Websites :

www.ruraleship.org http://libweb.surrey.ac.uk/library/skills/Entrepreneurship www.euram2013.com/.../19_%20ABSTRACT%20FINAL%20KAREN%.

STUDY ON ENTREPRENEURIAL BEHAVIOUR OF FARMERS IN COIMBATORE DISTRICT Interview Schedule I. GENERAL INFORMATION 1. Name of the farmer: 2. Village : II. PERSONAL AND SOCIO-ECONOMIC CHARACTERISTICS 1. Age : ___________years 2. Education: Illiterate/Primary school/Middle school/High school/ PUC/Graduate a. Occupation: Main:

Subsidiary: Others: 3. Size of the land holding (acres) : 4. Annual family income (Rs.) :Main source : Subsidiary : Total :

III. ENTREPRENEURIAL BEHAVIOUR OF FARMERS 1. INNOVATIVENESS Please indicate your degree of liking on hearing 3 statements under different items. From among the 3 statements, you here indicate the statement you like most and also indicate statement you like least S.No Statements Most like Least like

1 .a) b) c)

I try to keep myself up to date with information on new farm practices but that does not mean that I try out all new methods on my farm I feel restless till I try out a new farm practices that I have heard about They talk of many new farm practices these days but who knows whether they are better than the old ones

2. a) b)

From time to time I have heard of several new farm practices and I have tried out most of them is the last few years Usually I wait to see that what results my neighbours obtain before I try out the new farm practices

c) 3. a) b)

I believe that the traditional ways of farming are the best I am cautious about trying a new practices After all, our fore-fathers were wise in their farming practices and I do not see any reason for changing these old methods

c)

Often new farm practices are not successful; however, if they are promising I would surely like to adopt them.

2. ACHIEVEMENT MOTIVATION Six item scale with five alternative response to each item with scores 5 to 1. Please express your feelings about these statements b) Success brings belief or further determination and not just pleasant feeling. SA/A/UD/DA/SD c) How true is it to say that our efforts are directed towards avoiding failure F/PF/UD/PT/OT c) How often do you seek opportunity to excel nearly always/ frequently/half the time/ seldom/hardly ever d) Would you hesitate to undertake something nearly always/ frequently/half the time/ seldom/hardly ever e) How many spheres lead you to failure very few/few/ some /many/ most f) How many situations do you think you will succeed in doing as well as you can very few/few/ some /many/ most

3. DECISION MAKING ABILITY The following are some of the management decisions which you might have taken while growing the crop. Please indicate the appropriate justification for taking each decisionin your case.

S.No. 1. 2. 3. 4. 5. 6. 7.

Decisions How did you decide to start new enterprise How do you decide on the different varieties of crops How did you decide to try new practice How did you decide to change cropping pattern How did you decide the time of land improvement What about buying /selling of land? Have you ever tried to figure out what your profit

4. ECONOMIC MOTIVATION Please indicate your responses S.No 1. 2. 3. 4. 5. Statements The community respects rich farmer more than poorer ones Prestige is more important than profit in judging the success of farm Money alone does not give entire satisfaction in a farmer life A farmer should always aim at social recognition rather than recognition on monetary ground. A farmer should adopt on innovation which helps him to SA A UD DA SDA

get more money 6. A farmer requires only money to achieve most goals in his life

5. RISK TAKING ABILITY Please indicate your responses with the following six statements. S.No 1. 2. Statements A farmer should grow large number of crops to avoid greater risks involved in growing one or two crops A farmer should rather take more of a chance in making a big profit than to be content with a smaller but less risky profits A farmer who is willing to take greater risks than the average farmer usually does better financially It is good for a farmer to take risks when he knows his chance of success is high 5. 6. It is better for a farmer not to try new farming methods unless most other farmers have used them with success Trying an entirely new method in farming by a farmer involves risk, but it is worth SA A UD DA SDA

3. 4.

6. ASPIRATION 1. what would you expect to be the increase in your land holding in the next three years a) increase by one acre b) 2-3 acres c) 4-5 acres d) 6-7 acres e) 8 acres and above 2. In how many years you expect that your annual income would become doubled e) One year f) g) two years three years

h)

> three years

3. What would you expect to be the increase in production in the next three years d) As it is e) f) double more than double

4. How many enterprises would you like to add to yours in the next 3 years a) One b)two c) three d) > three 5. What would you expect to be your general standard of living in next 3 years somewhat better/ mostly better/certainly better

7. SCIENTIFIC ORIENTATION S.No 1. 2. 3. 4. 5. 6. Statements New methods of farming give better results to farmers than old methods The way a farmers forefather farmed is still the best way to farming today Even a farmer with lot of experience should use new methods of farming Though it takes time for a farmer to learn new methods in farming it is worth than efforts A good farmer experiments with new ideas in farming Traditional methods of farming have to be changed in order to raise the level of living of a farmer SA A UD DA SDA