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Submitted in partial fulfilment of the requirement of the degree of


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Kannur University
By

‘‘
II Semester MBA
‘
UNDER THE GUIDANCE OF
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Faculty, Chinmaya Institute of Technology,
Kannur


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I,Ã
 
student of Chinmaya Institute of Technology, Kannur ,
hereby declare that this project report entitled ³‘ "" ""

‘
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‘ has been prepared in
the partial fulfilment of the requirements of the degree of Master of Business
Administration and it was done under the guidance of Mrs.Reshma.s, Faculty
of Chinmaya Institute of Technology, Kannur University.

I also declare that this project report has not been submitted by me at any time
fully or partially to any other university or institute for the award of any degree.

Place: Kannur 

‘‘

Date: II Semester MBA

[
 """

I would like to express my heartfelt thanks and gratefulness to all those people

who have cooperated with me for undertaking this project.

I am deeply indebted to Dr K.K Falgunan, Director Chinmaya Institute of

Technology for giving me the opportunity to carry out this project.

I express my immense gratitude to my mentor Mrs.Reshma.s, Faculty of

School of Management Studies, Chintech who has helped me during the course

of my project.

I am also thankful to all other faculty members in the Department of

Management Studies and all my friends who have helped me during the course

of the project.

Last but not the least I am thankful to the Lord almighty who led me in the right
way to attain the successful completion of this project.

‘
‘‘‘

II Semester
MBA

‘
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‘‘
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‘‘
‘ ‘

0‘ Introduction
0‘ Statement of the problem
0‘ Objective of the study
0‘ Sample design
0‘ Methodology and data collection
0‘ Tools of analysis
0‘ Chapter scheme


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Any development is not possible without taking the rural masses into account.

Thus innovations affecting the rural population are at the heart of any developmental

process in India .There has not been satisfactory improvement in the rural sector,

problems such as the middlemen standing between the farmers and the market and

making away with the profits. This can be stopped by encouraging entrepreneurship in

rural areas. The District Industries Centre is functioning mainly with the aim of

promoting, facilitating and developing industrial growth in the territory. For the

convenience of existing and new entrepreneurs, the Administration has identified

various clearance needed and incorporated them in a computerized monitoring system

called SWIFT (Single Window Invest Friendly Time Bound System ). Activities are

being monitored through Single Window. Applications are received at Single Window

from 10.00 am to 1.00 p.m on all working days. Replies / certificates can be taken and

enquires can be made from 2.30 p.m to 4.00 p.m. All the applicants are required to

apply in the proper prescribed application form enclosing all necessary certified true

copies or notarized documents, at the Single Window. These project helps to study

about the different functions of the DIC and it also throws light on Problems faced by

DIC in their operations..

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Entrepreneurial Development incorporated four basic issues, viz. Availability of

material Resources, Solution of real entrepreneur, Formation of industrial units, and

Policy formulation for the development of the region In the Industrial policy announced

by the Government of India on 23.12.1977 laid special stress on the development of

Small Scale, Village and Cottage Industries. The policy statement indicated that the

District would be the main focus of efforts and the agency for promotion of small scale,

village and cottage industries would be a new organization called "District Industries

Centre".

 ""‘ ‘ "‘ "

During my studies it was found that entrepreneurs were facing very risk to get funds

from DIC. DIC also faces problems to release funds from the government. Some of the

entrepreneurs fail in their business and they are not able to repay the funds to DIC.

"

"‘ ‘ "‘
‘
‘
The main objective of this study is to pin-point the favourable socioeconomic factors

and Relevant issues for entrepreneurship development with respect . In the light of this

main objective and the research problem cited above, to district industry centre. The

specific objectives of the study have been earmarked as follows:

To bring to focus socio-economic background of sample entrepreneurs. To examine

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the potentialities of entrepreneurship development with reference to sample different

shops. To identify the problems faced by sample entrepreneurs. To suggest probable

lines of action to overcome these problems.

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‘

A sample of 100 entrepreneurs who has availed the facilities in DIC were identified and

interviewed for getting information¶s from mahe town.

" ‘ ‘  ‘"

‘
This report was prepared after collecting data from the officers.

Both primary and secondary data have been used for the study.

  ‘‘‘

These data were collected by personal interview with officers of the DIC. For this

purpose questionnaires were prepared in such that all necessary data would be collected.

cº

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Percentage tools were used for analyzing the data. For the purpose of presentation

of data, tables and charts are used.

 "‘
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This project report has been presented in the following format:

The  ‘
deals with the introduction and design of the study which consists of;

introduction, statement of the problem, objectives of the study, sample design,

methodology and data collection, tools of analysis and chapter scheme.

The 
‘
‘gives a brief description of the Literature Survey.

The  ‘

consists of the industry profile.

The  ‘

consists of analysis and interpretation of data.

The ‘ 

‘ is the concluding chapter. It includes findings of the study,

suggestions and conclusions.

‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘
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Entrepreneurship can be defined as the process of using private initiative to transform a

business concept into a new venture or to grow and diversify an existing venture or

enterprise with high growth potential. Entrepreneurs identify an innovation to seize an

opportunity, mobilize money and management skills, and take calculated risks to open

markets for new products, processes and services. Factors

Influencing the Entrepreneurship Development: problems and prospect

economic sector, the importance and necessary of the entrepreneurship development is a

must. But the sorrowful matter is that a very few research work is done on over it. So

the growth the process of the development in the sector is very sluggish. Researcher

both in the sector of Government and the Public both need to provide more attention in

this important sector. The profession of Chittagong University, Harun ur Rashid in 2003

June publish a report on ³Basic economic development & the role of entrepreneur´.

Another important report is published by the-G. H. M. Obaidul Hoque, Ph.D. Chairman,

Small and Medium Industries Development Organization, depend on the topics of ³

ENTREPRENEURSHIP DEVELOPMENT TRAINING ´. There are very few market

survey reports to take information from them and use them.So for updated survey report

the market survey is very much necessary.

G. H. M. Obaidul Hoque

c‰
The Journal of Developmental Entrepreneurship (JDE) provides a forum for the

dissemination of descriptive, empirical, and theoretical research that focuses on issues

concerning microenterprise and small business development, especially under

conditions of adversity. The intended audience for the JDE are scholars who study

issues of developmental entrepreneurship and professionals involved in governmental

and non-governmental efforts to facilitate entrepreneurship in economic and community

development programs. Articles will cover a broad range of topics, including:

Entrepreneurship and self-employment in developing contexts; Challenges and

opportunities unique to minority and female entrepreneurs; Microenterprise funds and

private-sector small business lending practices; Legislation, regulation, and tax policy

that impact entrepreneurship and economic development; Processes that facilitate

growth and development within emerging enterprises; Networks within and among

entrepreneurial ventures; Marketing patterns and approaches in venture growth and

development; International developmental entrepreneurship programs; Entrepreneurship

in the informal economic sector; Education and training for aspiring entrepreneurs;

Industry practices that adversely affect microenterprise development; Economic and

social impacts of microenterprise activity..‘

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The programme for setting up of District Industries Centres (DICs) was launched by
Government .of India in May, 1978. The programme provided for setting up of a DIC in
every district of the country in a phased manner in order to make the district
headquarters a focal point for the `development of small scale and cottage Industries, to
shift the emphasis from state capitals to the district Headquarters and to provide under a
single roof all services and support needed by small and village entrepreneurs. The State
Level (UT of Pondicherry) Coordination Committee on reviewing the functioning of the
DIC, felt the need for an evaluation of the DIC programme to identify the actual
drawbacks programme faced by the entrepreneurs who are the actual beneficiaries and
accordingly to take remedial measures to improve the DIC functionary. Hence, at the
request of the Government of Pondicherry the Programme Evaluation Organisation
undertook an evaluation study of the working and impact of the District Industries
Centre in Mahe in 1984.
The District Industries Centre is functioning mainly with the aim of promoting,
facilitating and developing industrial growth in the territory. For the convenience of
existing and new entrepreneurs, the Administration has identified various clearance
needed and incorporated them in a computerized monitoring system called SWIFT
(Single Window Invest Friendly Time Bound System ). Activities are being monitored
through Single Window. Applications are received at Single Window from 10.00 am to
1.00 p.m on all working days. Replies / certificates can be taken and enquires can be
made from 2.30 p.m to 4.00 p.m. All the applicants are required
to apply in the proper prescribed application form enclosing all necessary certified true
copies or notarized documents, at the Single Window.
These project helps to study about the different functions of the DIC and it also throws
light on Problems faced by DIC in their operation

cA
 ‘
 
‘

. "

 
‘ 
‘

1 HEAD OF THE OFFICE (ADMINISTRATIVE

SUPERVISORY & COORDINAGING ROLE)

GENERAL MANAGER

2 MANAGER, MARKETING MARKETING SURVEY, INDUSTRIAL

DEVLOPMENT DATA INFORMATION ETC.

3 INDUSTRIAL PROJECT FORMULATION AND

TECHICAL GUIDANCE REGARDING RAW

PROJECT MANAGER
MATERIAL ETC.

4 FORMATION CREDIT PLAN & HELP THROUGH

LOAN SCHEME & RECOVERY OF GOVT. DUES.

MANAGER, CRADIT

5 MANAGER, TECHNOLOGY PROJECT FORMULATION AND TECHICAL

ASSITANCE.

6 TO HELP ENTREPRENOURS OT SET UP

INDUSTRIES & COLLECTION OF INDUSTRIAL

ASSTT. MANAGER
DATA.

7 STATISTICAL ASSTT. TO COLLECT OF ALL TYPE OF DATA &

COMPILATION OF INDUSTRIAL DATA ETC.

c*
 ‘
‘

The Mission is proposed to be achieved through the following functions:

1. Promotion of industries with special emphasis on SSIs and Self Employment.

2. Function as facilitator for sustained industrial development.

3. Creating and extending infrastructural requirements for the development of

industries in the State.

4. To create wealth and employment commensurate with the immense resource

potential of Kerala by developing entrepreneurship among the youth

5. Inculcating Industrial Culture in the State.

6. Joining hands with educational institutions for the development of

Entrepreneurship at school/colleges.

7. Identifying and developing entrepreneurial potential in the State.

8. Providing investment assistances through Single Window Clearance, loans,

subsidies, technical assistance, training etc.

9. Strengthen entrepreneurial efforts through consultancy services, marketing

assistance, human resources development and for nursing of sick units in the State.

º

10. Promoting womens¶ entrepreneurship through special Women Industrial

Programmes.

11. Conducting EDPs,. EAPs industrial seminars, training programmes. Trade

fairs, exhibition and giving awards to entrepreneurs of SSI units.

12. Promotion of new entrepreneurial ventures by availing the technical and

managerial capabilities of selected institutions in the state

including Engineering Colleges / Research laboratories and other major Research

and Development Centres under the Scheme of Industry Research Linkage.

13. To assist to setup Industry Incubator by selected NGOs to adopt appropriate

technologies to suit local requirements prevailing in the emerging areas / schemes

like food processing, electronics, bio-technology etc.

14. To setup proficiency interface cell in the Department with qualified and trained

personnel to interact with experts / consultants for promoting viable projects.

15. To promote Industry Resource Locator for making available all the details to

the industrial community and new entrepreneurs.

16. To form product specific clusters of Industrial units which involves the creation

of common corporate entities for sharing opportunities for growth with the

assistance of GOI and GOK?

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17. Promote SC/ST development through special Industrial programmes.

18. Identifying the clusters for industrial development and providing technical,

marketing, consultancy, training, finance, other developmental support.

19. Data base management of small scale industrial units.

20. Undertake periodical surveys.

21. Publication.

"

"‘
  
‘ ‘


DIC efforts will be to provide the highest service standards of service to all

citizens. Performance may be measured in the respective area against timely

service on various activities being undertaken by the Directorate of Industries and

Commerce.

ºº

‘  


‘‘‘

‘‘‘‘‘‘‘‘‘‘‘‘The Strengths, Weaknesses, Opportunities and Threats can be summarized

as below :

"


a)‘ Agriculture has been the important sector to the economy of the taluk.

b)‘ District has considerable population of live stock.

c)‘ The taluk has 31 Kms broad gauge, good communication facilities

through telephone, post office, mobile network and internet facility.

" "

"
‘

a)‘ Resources are mainly restricted to agriculture which need to be effectively

exploited.

b)‘ People are lacking in entrepreneurial qualities.

c)‘ The infrastructure facilities are inadequate.

d)‘ No technology up gradation facilities.

e)‘ No quality power is available.

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‘

 

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a)‘  ‘
 
‘‘ Educated manpower is very much available with proper

skills which can be effectively utilized in the industrial development.

b)‘ Agriculture and Horticulture produces can be converted into value added

products.

c)‘ Better scope for Dairy units.

d)‘ There is good scope for horticulture units.

e)‘ Existing Artisans/Craftsmen, Skilled workers engaged in different crafts can

be modernized/diversified.

 " 


a)‘ Because of inadequate infrastructure facilities the growth & concentration of

the industries may be limited in the taluk.

b)‘ The existing traditional industries/activities are facing problems due to

technology obsolescence.

º[
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" " 
‘ ‘  ‘

º‰
Analysis and interpretation of the data was done using percentage method and it is

being presented using graphs and charts. A set of questionnaires were given to 100

entrepreneurs that has used the facilities of DIC within the area of Mahe. This

analysis was very useful for my interpretation and my conclusion. The

entrepreneurs‘were co-operative and gave detailed answers for the questionnaire

which was helpful .A deep analysis and interpretation was done on the DIC

functioning and its aspects.

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Below 20 30 30
21 ± 25 20 20
25 ± 50 35 35
Above 50 15 15
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Starting age of business Entrepreneurs

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‘‘
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From the above chart and table 30 % of the respondent are below the age of 20,20

respondents are from the age group 21 ± 25, 35 respondents are from the age group

25 ± 50 and the rest of the 15 respondents are above 50. So the majority of the

respondents are from the age group 25 ± 50.

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Farming 25 25
Business 40 40
Government 20 20
Other 15 15
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From the above chart and table 25 % of the respondent are farmers,40 % of the

respondents have business as their occupation, , 20 respondents have government

occupation and 15 % are engaged in other occupations. So the majority of the

respondents have business as their occupation.

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Easy 20 20%
Moderate 30 30%
Very difficult 50 50%
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From the above graph it can be inferred that out of the 100 entrepreneurs

interviewed it was found that 50% of them told that it is very difficult to release the

funds from DIC, 30% told that it¶s very moderate and 20% of them told that its

very easy to release the funds. So the majority of the entrepreneurs feels that it is

very difficult to release funds.

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Excellent 55 55%
Good 30 30%
Poor 15 15%
Total 100 100

 
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Satisfaction with DIC




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‘   ‘‘

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‘
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‘

From the above graph it can be inferred that out of the 100 entrepreneurs

interviewed it was very clear that 55% of them responded that services from DIC is

very excellent, 30% have the opinion that it is good and the rest 15% have told that

it is moderate. So the majority of the respondents had the opinion that the service

from the DIC were excellent.

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Excellent 65 65%
Good 30 30%
Moderate 5 5%
Total 100 100
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Service of the DIC by the employees



 


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‘

From the above table and chart, it was inferred that, 65% of the respondentss have

an opinion that the services of the employees of DIC are excellent, 30% having an

opinion that it is good, and only 5% are of the opinion that it is moderate. So the

majority of the respondents have the opinion the service of the employees in DIC

is excellent.

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Development for the country.

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From the above table and chart it was inferred that 75 % of the entrepreneur feel

that there is development for the country and the rest 25 % feel that there is no

development for the country. So the majority of the entrepreneur feel DIC help in

developing the country.‘

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Yes 25 25
No 75 75
Total 100 100
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‘   ‘‘

‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘ ‘‘%‘

P
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INF
ENCE IN DIC

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From the above table and chart it was inferred that 25 % of the entrepreneur feel

that there is no political influence in DIC and the rest 25 % feel there is political

influence in DIC. So the majority of the entrepreneur ‘feel DIC is not under

political influence.‘

[

(‘
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Yes 65 65
No 35 35
Total 100 100
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‘
From the above table and chart it was inferred that 65 % of the entrepreneur¶s feel

that there is support for the sales for the end product from DIC.35 % feel there is

no support of sales for the end product from DIC. So the majority of the

entrepreneur¶s ‘feel DIC is supporting the sales of their end product¶s.‘

‘
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On the basis of analysis and interpretation of data, findings are done.


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 ‘  ‘ 
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‘   ‘ 
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i.‘ The majority of the entrepreneurs are from the age group 25 -30.

ii.‘ The majority of the entrepreneurs have business as their occupation.

iii.‘ The majority of the entrepreneurs feel that it is difficult to release funds from

DIC.

iv.‘ The majority of the entrepreneur¶s feel that the service provided by DIC is

excellent.

v.‘ The majority of the entrepreneurs feel that the service of the employees

working in DIC are excellent.

vi.‘ The majority of the entrepreneurs feel that DIC is a platform for the

development of the country.

vii.‘ The majority of the entrepreneurs feel that the employees working in DIC is

not under political influence.

[[
viii.‘ The majority of the entrepreneurs feel that the service for sales of end

products through DIC is satisfactory.

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[‰


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I.‘ DIC should opt for further expansion , encouraging more entrepreneurs in to

different fields and help in development of the country.

II.‘ DIC should bring out more campaigns and awareness among the

entrepreneurs and thereby attracting them to start new business.

III.‘ DIC should provide better and packages for the end products that the

entrepreneurs manufacture.

IV.‘ DIC should have a better management for the release of funds to the

entrepreneurs and provide a faster and efficient service.

V.‘ The government should have a better surveillance on DIC for avoiding

aspects like corruption etc.

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The project study entitled ³"" ""

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´ gave an insight to the Small Scale Industries in Mahe and

also on the entrepreneurs perception, expectation and requirements. Analysis and

interpretation is the core part of this study with the help of which measurement of

entrepreneurs¶ satisfaction was made easier. The survey was done on the

entrepreneurs in Mahe which helped in giving a clear view on the survey made.

Ensuring the development of the industries and improving the efficiency of the

entrepreneurs available have seen to become the important objectives of all District

Industries Centre. Meeting the needs of the industrialists has become a major

challenge for DIC units.

The study gave us the view that most of the entrepreneurs are satisfied with the

service of DIC, the entrepreneurs are seen to be satisfied with the service provided

by the DIC but their expectations are increasing day by day.

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I 9APHY

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ANNA
9EP 9TS AND ÔYE
AWS F DIC

J 9NA
S

EC N IC 9EVIEWS

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1.‘ At which age you have started your business?

a)between 20 b)21-25

c)25-50 c)above 50

2.‘ What is your parent¶s occupation?

a)Farming b)Business

c)Goverment service d)Others

3.‘ How would you rate release of funds in DIC?

a)Easy b)moderate

c)very difficult

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 4.Are you satisfied with the working of DIC?

a)Excellent b)Good

c)Poor

5. How would you rate the services of employees?

a)‘ Excellent b) Good

c)Poor

6.‘ Do you feel DIC is helpful for the development of country?

a)‘ Yes b)No

7.‘ Is there is any political influence in DIC?

a)‘ Yes b)No

8.‘ Is there is support of sale of end products?

a)Yes b)No

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