ELK Asia Pacific Journals – Special Issue ISBN: 978-81-930411-0-9 THE ROLE OF ENTREPRENEURSHIP AND DEMOGRAPHY ON SHAPING THE ECONOMY OF DEVELOPING COUNTRIES Dr. K. Venkataravanappa, Associate Professor and Head of the Department of Commerce BNM Degree College, Banshankari II Stage, Bangalore 560 070

ABSTRACT

Introduction: Entrepreneurs are driven to achieve success in their business along with the qualities of a Leader, Manager, Dreamer, Innovator, risk taker, continues learner, decision maker & most important is to implement all these qualities into the work. Entrepreneurship is a systematic innovation which consists of the purposeful and organized search for changes and in a systematic analysis of the opportunities such changes might offer for economic and social innovation. It is essential for economic development and plays a vital role in shaping India as a developed country. Methodology: This qualitative study relies on primary data obtained by teachers, commerce students, non-commerce students and entrepreneurs. To test the hypotheses, the chi square test has been applied. Hypothesis Tested: 1. Entrepreneurs play an integral part in shaping the economy of the developing countries. 2. Entrepreneurship is restricted only to the urban areas. Result: This study concludes that entrepreneurs play an integral part in shaping the economy of the developing countries. Further, entrepreneurship is restricted only to the urban areas and not seen in rural areas.

Key Words: Entrepreneurs, Demography, Economy.

Introduction: Entrepreneurs are driven to achieve success in their business along with the qualities of a Leader, Manager, Dreamer, Innovator, risk taker, continues learner, decision maker & most important is to implement all these qualities into the work. There are a lot of examples of the entrepreneurs in India who are now called synonymous of ‘Success’. They saw the bigger picture but wisely started their business as a very small unit. Entrepreneurs set the example of turning their dream into reality. An entrepreneur is the one who is the coordinator and organizer of resources to design a business enterprise. In the last few years it has been witnessed the ongoing interest in entrepreneurship, which is essentially understood as the emergence

and growth of new businesses. Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses. However, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it 345 is referred to as entrepreneurship and may include corporate venturing, when large

ELK Asia Pacific Journals – Special Issue ISBN: 978-81-930411-0-9

entities spin-off organizations. To achieve the goal of sustainable inclusive growth we have to progress the society ahead of projects and assignments. It is sad to notice that currently the country is driven towards transforming the technology rather than transforming the society, which is creating the economic divide between the rich and the poor and between the rural and urban. Statement of the Problem However, the rise and spread of capitalism led a number of thinkers to examine the consequences of the market-based approach to development. Socialists argued that capitalism can lead to greater inequalities of income and wealth, while developmental economists argued that private decisions may not always lead to socially desirable outcomes. Certainly, many policymakers at the time saw market failures as quite common and therefore assumed that only appropriate government intrusions could guide an economy to a path of continuous economic development The current IT boom has not been equally shared by the students of commerce in different demographic regions of the country. Many of the available technology are only used by the urban entrepreneurs, whereas the rural counterparts are devoid of using these technological instruments which puts them behind in the race. Objectives of the Study The objectives of the study are to: 1. Ascertain the role played by entrepreneurs in shaping the economy in India. 2. To ascertain if entrepreneurship is restricted only to the urban areas. Hypotheses to be Tested The study proposes to test the following hypotheses: 1. Entrepreneurs play an integral part in shaping the economy of the developing countries.

2. Entrepreneurship is restricted only to the urban areas. Methodology This qualitative study relies on primary data obtained by teachers, commerce students, non-commerce students and entrepreneurs. To test the hypotheses, the chi square test has been applied. Sampling Plan Interview Schedules were administered to 30 teachers, 30 commerce students, 30 science students and 30 entrepreneurs. Probability sampling in the form of simple random sampling was applied. Hence every teacher, student or an entrepreneur, stood an equal and independent chance of being selected. Interview schedules, duly completed and received from the first 30 teachers, 30 commerce students, 30 science students and 30 entrepreneurs were selected for the study. They constitute the sample size. Sources of Data and Data Collection Data required for the research has been collected from primary and secondary sources. Primary data has been collected by administering Interview Schedules to the respondents. Data Processing and Analysis Plan Non-parametric statistical units have been used to test the association between some qualitative characters and conclusions have been drawn on the basis of formation of Ho and H1. To be specific, chi-square test has been applied to test the hypotheses. SPSS statistics software has been used for the analysis of the data obtained in the study. Results, Findings and Discussions Entrepreneurs play an integral part in shaping the economy of the developing countries. The respondents’ agreement / otherwise with the statement is expressed at five levels, namely, Strongly Agree, Agree,

ELK Asia Pacific Journals – Special Issue ISBN: 978-81-930411-0-9

Neutral, Disagree and Strongly Disagree. These variates are assigned the values 1, 2, 3, 4 and 5. Their levels of agreement with the statement are reflected in the following Table 1. Table-1 Entrepreneurs play an integral part in shaping the economy of the developing countries: Responses Levels of Frequency Percent Agreement (Values) Strongly 48 40.0 Agree (1) Agree (2) 54 45.0 Neutral (3) 12 10.0 Disagree (4) 6 5.0 Strongly 0 0 Disagree (5) 120 100 Total Almost 85 percent of the respondents agree that entrepreneurs play an integral part in shaping the economy of the developing

countries. To test the association between row variables and column variables (concerning the four categories of respondents), the chi square statistical test has been applied. The response categories of strongly agree, agree, neutral, disagree and strongly disagree, have been combined as follows, for the purpose: the agree and strongly agree responses have been combined into one category; the disagree and strongly disagree into another. The following Table reveals the computation made using SPSS.

First Hypothesis The first hypothesis states as follows: “Entrepreneurs play an integral part in shaping the economy of the developing countries” Hence H0 and H1 are as follows: H0: Entrepreneurs do not play an integral part in shaping the economy of the developing countries. H1: Entrepreneurs definitely play an integral part in shaping the economy of the developing countries. Table-2Chi Square Test of the Association between Row and Column Variables Groups Responses

Teachers

Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5) Total

Count 6 24 0 0 0 30

Science Students Count 0 18 6 6 0 30

Commerce Students Count 30 0 0 0 0 30

Entrepreneur s Count 12 12 6 0 0 30

Pearson Chi-Square Tests Chi-square 95.333 Responses df 9 p value 0.000* *. The Chi-square statistic is significant at the .05 level. 2 The calculated value of  is 95.33, with degrees of freedom 9 and the highly

significant p value 0.000 for an alpha of 0.05. Hence the null hypothesis H0 is

ELK Asia Pacific Journals – Special Issue ISBN: 978-81-930411-0-9

rejected and the alternate hypothesis H1 is accepted. In other words, entrepreneurs play an integral part in shaping the economy of the developing countries. Entrepreneurship is restricted only to the urban areas. Table-3 Entrepreneurship is restricted only to the urban areas: Responses Levels of Frequency Percent Agreement (Values) Strongly 54 45.0 Agree (1) Agree (2) 54 45.0 Neutral (3) 6 5.0 Disagree (4) 6 5.0 Total 120 100.0

for digital divide in the commerce education in the country. To test the association between the row variables and column variables (concerning the four categories of respondents), the chi square statistical test has been applied. The following Table reveals the computation made using SPSS software. Second Hypothesis The second hypothesis states as follows: “Entrepreneurship is restricted only to the urban areas” Hence H0 and H1 are as follows: H0: Entrepreneurship is not restricted only to the urban areas H1: Entrepreneurship is restricted only to the urban areas

About 90 percent of the respondents agree that technology growth which is only limited to urban vicinity is the main reason Table-4Chi Square Test of the Association between Row and Column Variables Groups Responses Science Commerce Teachers Entrepreneurs Students Students Strongly Agree 18 0 24 12 (1) Agree (2) 12 24 6 12 Neutral (3) 0 0 0 6 Disagree (4) 0 6 0 0 Strongly 0 0 0 0 Disagree (5) Total 30 30 30 30 Pearson Chi-Square Tests Chi-square 72.000 Responses df 9 p value 0.000* *. The Chi-square statistic is significant at the .05 level. The calculated value of is 72.00, with degrees of freedom 9 and the highly significant p value 0.000 for an alpha of

0.05. Hence the null hypothesis H0 is rejected and the alternate hypothesis H1 is

ELK Asia Pacific Journals – Special Issue ISBN: 978-81-930411-0-9

accepted. In other words, entrepreneurship is restricted only to the urban areas. Conclusions and Recommendations Conclusions are inferences / generalisations drawn from the findings and relate to hypotheses. They are answers to the research questions or the statements of acceptance or rejection of hypotheses. This study concludes that entrepreneurs play an integral part in shaping the economy of the developing countries. Further, entrepreneurship is restricted only to the urban areas and not seen in rural areas. Bibliography/Further Reading [1] Bardhan, Pranab, 1997. “Corruption and development: a review of issues,” Journal of Economic Literature, vol. 35, September, pp. 1320-1346. [2] Gupta, Rajat, 2001. “Creating Indian entrepreneurs,” India Today, February 12. [3] Joshi, Vijay, 2001. “Capital controls and the national advantage: India in the 1990s and beyond,” Oxford Development Studies, vol. 29, 3, pp. 305-320. [4] Lewis, William, 2001. “Unlocking potential: remove barriers to India’s growth,” The Wall Street Journal, September 11. [5] Rao, M. Govinda, 2000. “Tax reform in India: achievements and challenges,” Asia-Pacific Development Journal, vol. 7, No. 2, December 2000, pp. 59-74.