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Volume XV
June 2016
i
ISSN 0975-1211
REVELATION
The Research Journal
of
K.P.B. Hinduja College
Volume XV
June 2016
K.P.B. Hinduja College of Commerce
315, New Charni Road, Mumbai 400 004.
ii
ISSN 0975-1211June 2016
Editorial Board
Chief Editor: Dr. (Ms.) Minu Madlani
Executive Editor: Dr. (Ms.) Rajeshwary G.
Advisors:
1. Dr. J.F.Patil
2. Dr. S.K.G. Sundaram
3. Dr. L. M. Dani
4. Dr. G.M.Talhar
5. Dr. R.R.Khan
6. Prof. Balvinder Singh
7. Prof. Rajendra Shah
Place of Publication: K.P.B. Hinduja College of Commerce
315, New Charni Road,
Mumbai 400004.
Views expressed in the articles are those of the authors and do not necessarily represent
those of the Editor of the Journal. All rights are reserved. No part of this publication may be
reproduced or copied in any form by any means without prior written permission.
ISSN 0975-1211
iii
Vol. No. 15 June 2016
Contents
Sr. No. Subjects Page No.
1 Foreword from the Chief Editor v
2. From the Executive Editor’s Desk vi
3. The Impact of Psychological Capital on Resistance to Change
Dr. Shobha MenonVinay V. Prabhu
1
4 A Study on Contributions of Seaways for the Development of
Tourism in the Andaman and Nicobar Islands – A Correlation
Analysis
Sabiha Mulla
12
5 Tourism Industry in India- An Overview
Padmini Tomer
Dr. R. S. Arora
24
6 Issues and Challenges in Online Banking Faced by Lower Income
Customers in Mumbai City
Dr. Sumita Shankar
33
7
A Study on Consumer Behaviour in Case of Organic Products with
Reference to Mumbai City
Ms. Rupali Sharma
43
8 Problems and Prospect of Self Help Group Women in Business
Prof. S. Chandrasekar
57
iv
From the Editor’s Desk
The Research Journal Revelation is being brought out by K.P.B. Hinduja College of
Commerce with a view to assist academicians, professionals and researchers to share
information on topics related to Growth and Development of Business in India. The aim of
this Journal is to encourage researchers to contribute research articles based on
Industry Studies or on the Findings of Research Projects that have been executed. Issues
relevant to the growth and development of Indian Economy, in the streams of Arts, Science,
Social Sciences, Economics, Commerce and Management are also welcome.
Original research articles based on an up to date review of literature and supportive
primary/secondary data are invited.
Frequency of Publication: Biannual
Contact Address:
K.P.B. Hinduja College of Commerce, 315, New Charni Road, Mumbai.400 004.
Phone 022 4098 9000 Fax : 2385 93 97.
Email : [email protected]
Executive Editor’s E mail address: [email protected]
v
Foreword from the Chief EditorThe world’s economic centre of gravity has been shifting from West to East. Making India a
global manufacturing hub will capitalize on this inevitable shift, positioning India at the
inflexion point. Manufacturing should be the next big wave for India. India need to move the
share of manufacturing in GDP from 15% to 25%. Our country has all the ingredients –
talent, entrepreneurship, raw materials large internal market etc. that can help the
manufacturing sector to reach high level of performance. However, the country faces some
challenges which can act as a barrier from being considered as a manufacturing powerhouse.
They are regulatory hurdles, infrastructure bottlenecks and developing talent.
Setting up a manufacturing unit is an uphill task. It involves a long and tedious process for
land acquisition, securing a plethora of clearances and approval from regulatory authorities at
the central, state and local levels. Our country requires clarity of regulations. Less clutter,
more consistency, greater transparency and speed in decision-making. Infrastructure
problems need to be addressed. The availability of coal has become a major constraint despite
India having the third largest coal reserves globally. Our labour force is young and expanding
much faster than the general population. India is in the enviable position of providing
manpower, even for the rest of the world. To seize this opportunity India’s manpower skills
have to be massively upgraded, calling for an educational system that can support a modern
economy. This means that there is need to upgrade vocational training, on- the –job training,
curriculum redesign, modification of teacher training course, apprentice development,
leveraging distance educational as per the requirement of the economy.
Recent policy measures, such as labor reforms, deregulation of diesel prices and coal sector
reforms all point to an improvement in the investment climate. Business confidence
indicators are surely rising. Foreign fund inflows are very healthy. If this favorable
environment is combined with a determined push, India can become a global manufacturing
hub.
Dr. Minu Madlani
Chief Editor
vi
From the Executive Editor’s Desk…
India’s per capita GDP is estimated to have exceeded $1,600 in 2014, and may touch a level
of $2,000 by the end of 2016. The Indian economy is posed for an orbit –changing growth
over the next two decades. A nominal growth rate of 12 per cent annually will catapult
India to a $20 trillion size on less than 20 years, and subsequently lift India’s share in the
world economy to 8.5 -9.0 per cent from 2.7 per cent currently.
The banking system will undoubtedly have to play the protagonist role in this transformation.
In order to remain a relevant partner in India’s growth, Indian banks need to embrace the
mantra of ‘Inclusive Growth’. Technology will define banking contours in het future. This
would include big data, cloud computing, smart phones and other such innovations. It is
possible to disseminate personalized offers in customers’ mobile phones, use of home video-
conferencing system for personalized connect are some of the avenues through which
technology will aid banking in the future. Mobile banking and mobile payments will truly
rule the future. At present, roughly, there are 900 million mobile users in the country but only
40 million mobile banking customers. Efforts should be made to woo the customer to mobile
banking to make payments.
Banks will need to focus on innovation that raises competition and leads to better and
cheaper services to customers. In the future, cashless banking will revolutionize ease of
doing transactions with further penetration of internet. Banking landscape in India will see a
transformation with the entry of new age specialized banks. The urge to innovate, compete
and remain in business will also pave way for synergetic consolidation.
Dr. (Ms.) Rajeshwary
Executive Editor
1
The Impact of Psychological Capital on Resistance to Change
∗Dr. Shobha Menon
∗∗Vinay V. Prabhu
Abstract
Resistance to change is a natural phenomenon and individuals differ widely in the way they
react to change. Employee resistance to change has significant effects on the organization.
Psychological Capital (PsyCap) is an outcome of positive psychology's renewed focus on
studying what is right about people. PsyCap is impactful on work-related performance.
The present study examined the effect of psychological capital on resistance to change and
found a significant negative correlation between the two. The findings of the study has
important practical applications.
Key Words: Organizational change, Resistance to change, Psychological capital.
Resistance to change is a natural phenomenon. People are afraid that any change will be
potentially disruptive and will only make things worse. Employees fear change because it
threatens their needs for security, social interaction, status, competence and self-esteem. It is
for these reasons that people show an unwillingness to accept change.
Resistance to change is expressed in the form of behaviors that attempt to delay, discredit or
prevent the implementation of change. People try to protect themselves from the effects of
change through actions such as complaints, remaining absent, deliberately going slow and
sabotage. Resistance to change is usually across the board. White-collar and blue-collar
workers both resist change.
Individuals differ widely in the way they react to change. Some people focus only on the
positive aspects (benefits) while others see only the costs. Some react with fear despite the
∗ Associate Professor, Valia C.L. College Of Commerce & Valia L.C. College Of Arts, Mumbai.∗∗ Associate Professor, N.K. College of Commerce and Arts, Mumbai.
2
change being for the better while others respond initially with enthusiasm but later are
shrouded with doubts.
The need to understand the effect of resistance to change has increased significantly in private
industries and government organizations over the last decade because of globalization, fast-
changing markets and economic developments (Piderit, 2000). An important implication of
resistance to change is that it has significant effect on employees' organizational commitment,
job satisfaction and intention to leave the organization. This in turn can undermine
organizational change (Oreg, 2006; Van den Heuvel & Schalk, 2009). Therefore,
organizations that evaluate resistance to change may provide an important point of reference
to understand the variables that support organizational change through positive organizational
behavior better (Del Val & Fuentes, 2003).
Literature Review
Resistance to Change
Oreg (2007) after an exhaustive review of literature in the field concluded that sources of
resistance are derived from an individual’s personality. Six such sources were identified:
(1) Reluctance to lose control
(2) Cognitive rigidity
(3) Lack of psychological resilience
(4) Intolerance to the adjustment period involved in change
(5) Preference for low levels of stimulation and novelty and
(6) Reluctance to give up old habits.
Oreg (2003) in his study of sixty-seven faculty members from eight departments at Cornell
University found that Professors who exhibited higher levels of resistance to change were less
likely to try out a new system for designing course web sites. Among those who did adopt the
new system, higher levels of resistance were associated with a longer wait time before starting
to use the system.
In another study, Oreg (2003) found that individuals who were dispositionally inclined to
resist changes were more distraught by the change and reported increased difficulty to work
effectively.
3
In the context of change management research, the issue of resistance occupies a crucial
place. Organizations should be aware of the human element and its implications for the
success of all change management decisions. The success of change management depends
upon the organizational structure, availability of resources, vision and mission of the
organization, and employees’ willingness to work towards the change-related goals (Brisson-
Banks, 2010). Managers who ignore this last element guarantee themselves an uphill battle, if
not a sure failure.
The role of individual competencies, the potential contribution of employees to make positive
change, as well as the role of individual learning make up a considerable share of present-day
organizational change knowledge and research (Avey, Wernsing, & Luthans, 2008; Bercovitz
& Feldman, 2008; Luscher & Lewis, 2008). The quality of individual-level adaptation in
organizational change cannot be easily dismissed, and its significance is further justified by
the fact that, in organizational change environments, actors naturally seek to make sense of
the situation and adjust their expectations to the new experiences emerging as a result of the
change (Bercovitz & Feldman, 2008).
Psychological Capital
Psychological capital is an outcome of positive psychology's renewed focus on studying what
is right about people. Organizational behavior researchers applied positive psychological
research to the workplace.
Fred Luthans (Luthans, 2002a, 2000b) pioneered the positive approach in organizational
behavior by mapping out positive organizational behavior (POB), with its focus on building
human strengths at work rather than only managing weaknesses.
Positive Organizational Behavior is defined as “the study and application of positively
oriented human resource strengths and psychological capacities that can be measured,
developed, and effectively managed for performance improvement in today's workplace”
(Luthans, 2002b, p. 59).
4
Luthans recommended that POB researchers study psychological states that could be validly
measured, and that are malleable in terms of interventions in organizations to improve work
performance.
The comprehensive definition of PsyCap (Luthans et al. 2007) is: an individual’s positive
psychological state of development that is characterized by: (1) having confidence (self-
efficacy) to take on and put in the necessary effort to succeed at challenging tasks; (2) making
a positive attribution (optimism) about succeeding now and in the future; (3) persevering
toward goals and, when necessary, redirecting paths to goals (hope) in order to succeed; and
(4) when beset by problems and adversity, sustaining and bouncing back and even beyond
(resiliency) to attain success. (Luthans et al., 2007: 3)
PsyCap, has been the subject of considerable theory and research over the past several years.
PsyCap researchers have developed (Luthans, Youssef, & Avolio, 2007a) and validated
(Luthans, Avolio, Avey, & Norman, 2007) measures of PsyCap. Taken to the workplace,
preliminary empirical evidence supports the PsyCap latent core construct and its relationship
to performance (Luthans, Avey, Avolio, & Peterson, 2007) in multiple cultural contexts
(Luthans, Avolio, Walumbwa, & Li, 2005).
PsyCap as a scientific endeavor. PsyCap is founded on widely recognized theoretical
frameworks such as social cognitive theory (Bandura, 1986) and hope theory (Snyder, 2000).
It utilizes scientific research methodologies and deductive reasoning to enhance the prediction
and causal implications that PsyCap may have on human resource development and
performance outcomes in organizations.
PsyCap is state-like and therefore open to development. Many personality traits have been
found to relate to performance in the workplace. PsyCap is a set of malleable and
developmental states that have been demonstrated to significantly increase through relatively
brief (1–3 hour), highly focused microinterventions (see Luthans et al., 2006a).
PsyCap is impactful on work-related performance. Research to date supports that PsyCap is
significantly related to performance in the workplace, both the individual components
5
(efficacy/confidence, hope, optimism and resiliency) and in combination as overall PsyCap
(e.g. Luthans et al., 2005, 2006b; Youssef, 2004). This relationship has been shown through
utility analysis to make a dramatic contribution to the organization (Luthans et al., 2006a,
2007). Thus, PsyCap becomes a meaningful and justifiable investment and means toward
veritable organizational performance and possibly sustained competitive advantage.
Resistance to Change and Psychological Capital
PsyCap and positive emotions may play a key role in combating dysfunctional attitudes and
behaviors that may deter organizational change (Avey, Wernsing, & Luthans, 2008). PsyCap
helps to discourage deviant behaviors in the workplace and will in fact be a catalyst for
positive organizational change (Avey, Wernsing, et al., 2008). Avey et al. (2011) concur with
these past findings. In their meta-analysis they found that PsyCap is negatively related to
undesirable workplace attitudes such as cynicism, turnover intentions, deviance, stress and
anxiety.
Beal, Stavros and Cole (2013) found resistance to change had a negative correlation with
PsyCap. They found a positive relationship between PsyCap and organizational citizenship
behavior in the context of organizational change. The authors suggest that organization
leaders should increase positive organizational behavior by managing PsyCap and its four
positive psychological capacities (hope, optimism, self-efficacy and resilience). Secondly, the
authors identified resistance to change as a moderator of PsyCap’s effect on OCB. The results
suggest that high levels of PsyCap can rise above the moderating effects of resistance to
change. Consequently, organization leaders should try to reduce resistance and increase the
resources organizations need to effect positive organizational change.
The Present Study: Aim of the Study
The objective of the present study was to investigate the impact of psychological capital on
resistance to change.
Specific Objectives
The specific objectives of the study were:
(1) To study the relationship between psychological capital and resistance to change
6
(2) To study the relationship between the various dimensions of psychological capital and
resistance to change.
Methodology
Sample Selection
The sample for the study consisted of 35 office employees in a midsized pharmaceutical
company in the city of Mumbai. 53 questionnaires were distributed among the employees. 37
employees returned the duly filled questionnaires. The responses of 2 participants were
rejected as the respondents had either not filled up the questionnaires fully or had not filled
them correctly.
The findings and conclusions in this study are based on the responses of 25 male and 10
female employees. The average age of the participants in the study was 37 years.
Measuring Tools
The following psychometric instruments were used for the study:
(1) Resistance to Change Scale: The ‘Resistance to Change Scale’ was developed by Shaul
Oreg. The scale is designed to measure an individual’s dispositional inclination to resist
changes.
The ‘Resistance to Change Scale’ is a 18-item scale that measures the major four underlying
factors that result in a disposition to resist change. The four factors are: (a) Routine Seeking,
(b) Emotional Reaction to Imposed Change, (c) Short-Term Focus, and (d) Cognitive
Rigidity. These factors reflect the behavioral, affective, and cognitive aspects of resistance to
change, respectively. The participants in the study had to check on each statement, indicating
the extent to which he agreed or disagreed with the statement (on a 5-point scale). The higher
the score, stronger is the resistance to change.
The reliability coefficient alpha (Cronbach’s) of the scale is 0.92. The scale has demonstrated
good convergent, discriminant, concurrent and predictive validities.
(2) Psychological Capital Questionnaire (PCQ): PsyCap was measured with the PCQ-24
questionnaire which was developed by Luthans et al. The reliability and validity of the PCQ-
7
24 questionnaire have been demonstrated in previous research. The PCQ-24 questionnaire
consists of four dimensions: self-efficacy, hope, resilience and optimism. The total scale
consists of 24 items, and each of the four dimensions is measured by six items. Each of the
items is scored on a Likert scale in which 1 indicates strongly disagree and 5 indicates
strongly agree. All questions ask the participants how they feel “right now.” Higher values
indicate higher levels of experienced PsyCap.
Hypotheses
Based on past research findings, the following two hypotheses were proposed and tested:
H1: There is a significant negative correlation between psychological capital and resistance to
change.
H2: There is a significant negative correlation between overall disposition of resistance to
change and the four components of psychological capital i.e. (self-efficacy, hope, optimism
and resiliency.
Table 1:
Intercorrelations between Study Variables
Variable Psychological
capital
Self-
efficacy
Hope Resiliency Optimism
Resistance to
change -0.425** -0.271** -0.28** -0.36** -0.428**
Pearson’s correlation coefficient.**, p < 0.01.
Results
The data collected from the study was tabulated and analyzed using popular statistical tools
and techniques. The findings of the study are given here below.
Table 1 presents the bivariate correlations of the variables under investigation. There was
significant negative correlation (-0.42) between employees' attitude towards change (i.e.
resistance to change) and psychological capital. The lower the psychological capital of the
employees the higher was the resistance to change to change.
8
All the four components of psychological capital were also negatively correlated to resistance
to change and all the correlations were statistically significant. Of the four dimensions of
psychological capital, the negative correlation between optimism and resistance to change
was the strongest (-0.428) followed by resilience (-0.364). There was a negative correlation of
-0.27 between self-efficacy and resistance to change and of -0.28 between hope and resistance
to change. The results support both the hypotheses (H1 and H2) and are consistent with past
researches.
Discussion
This study investigated resistance to change (RTC) and psychological capital (PsyCap)
amongst employees of a private sector pharmaceutical organization. The authors aimed to
contribute to the research on resistance to change by investigating the impact of psychological
capital in the Indian context.
The quantitative analysis of the data from 35 employees showed that resistance to change had
a negative relationship with psychological capital. Low levels of psychological capital was
related to higher levels of resistance to change. The results suggest that PsyCap plays an
important role in facilitating organizational change. For instance, optimism leads to a positive
orientation towards change, self-efficacy builds confidence and reduces fear of change,
resilience increases an employee’s ability to adapt to and overcome change and a hopeful
employee will find a way to deal with change. These positive behaviors push against resistant
change behaviors, like behavioral reluctance about new technologies and processes, lack of
teamwork because of a ‘what’s in it for me’ mentality and cynicism about change.
Managing and increasing the level of PsyCap in organizations requires deliberate
interventions. For example, organizations can increase the level of PsyCap by using short
training sessions of one to three hour micro interventions in which they measure PsyCap
before and after the interventions (Luthans, Avey, Avolio, Norman, & Combs, 2006).
In addition, organizations can increase PsyCap through SOAR (strengths, opportunities,
aspirations and results), a strategic thinking framework that integrates whole system and
9
strengths-based perspectives to create a strategic transformation process with a focus on
creating sustainable value to achieve desired performance results (Stavros & Wooten, 2012).
Significance of the Study
Resistance to change does not happen in a vacuum. Low psychological capital of the
employees can be a major obstacle in the process of organizational change. Increasing the
psychological capital of the employees could be an effective strategy for combating the
challenges posed by change. Organizations can use enhanced psychological capital to increase
positive outcomes and reduce resistance to organizational change.
PsyCap and its four positive psychological capacities (hope, optimism, self-efficacy and
resilience) can help in reducing the debilitating effects of RTC. Consequently, organization
leaders should try to reduce resistance and increase the resources organizations need to effect
positive organizational change.
Limitations of the Study
An important limitation is common source bias, in which researchers used the same sample to
gather data on both independent and dependent variables. This method of obtaining data may
result in common source bias and lead to inflated relationships (Podsakoff, MacKenzie, Lee &
Podskoff, 2003). The prescribed approach to reducing common source bias is to obtain
predictor measurements from one observer and measurements of outcomes from another (or
use separate occasions for measuring). The authors did not use these methods because of
resource constraints about the ability to issue several surveys and use several observers.
However, one should note that data from distinct observers or measurement occasions might
distort the prediction estimates as much as common source variance does (Kammeyer-Muller,
Steel & Rubenstein, 2010).
The study examined the effects of PsyCap on RTC in the context of only one organization, a
limitation that concerns generalizing results to other organizations.
Conclusions
This study explored some of the positive aspects of human behavior in a private
pharmaceutical organization setting. The study examined the effect of psychological capital
10
on resistance to change and found a significant negative correlation between the two. The
findings of the study has practical applications.
Finally, future research in the area of RTC and PsyCap would benefit from longitudinal
studies in which researchers observe levels of PsyCap and RTC over time. Such a study
would improve our understanding of how RTC and PsyCap interact overtime. This would
reveal the point in time that resistance has the greatest effect. This knowledge could inform
change managers when to focus their efforts on increasing PsyCap and decreasing resistance
at the most opportune time.
References
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organizational change? Impact of psychological capital and emotions on relevantattitudes
and behaviors. Journal of Applied Behavioral Science, 44, 48-70.
2. Bandura, A. (1986) Social Foundations of Thought and Action. Englewood Cliffs, NJ:
Prentice-Hall.
3. Beal III, L., Stavros, J.M., & Cole, M.L. (2013). Effect of psychological capital and
resistance to change on organisational citizenship behaviour. SA Journal of Industrial
Psychology/SA Tydskrif vir Bedryfsielkunde, 39(2)
4. Bercovitz, J. and M.P. Feldman. (2008). “Academic Entrepreneurs: Organizational
Change at the Individual Level.”Organization Science, 19(1): 69–89
5. Claire V. Brisson‐Banks, (2010) "Managing change and transitions: a comparison of
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- 252
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11
9. Luthans, F. (2002a) ‘The need for and meaning of positive organizational behavior’,
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Institute, Working Paper. Lincoln, NE: University of Nebraska.
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of Chinese workers: Exploring the relationship with performance’, Management and
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Oxford University Press, 25–44
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Management Review, Vol. 25 No. 4, pp. 783-94.
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biases in behavioral research: A critical review of the literature and recommended
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Social Science Information, 48(2), 283-313.
12
A Study on the Contributions of Seaways for the Development of
Tourism in the Andaman and Nicobar Islands – A Correlation AnalysisSabiha Mulla
Abstract
Every living being needs to move either in need of food, shelter or safety. This movement is
termed as transportation. Since early times transportation has been an important and integral
part of the human civilization. Transportation is a non-separable part of any society. It
exhibits a very close relation to the lifestyle, the range and location of activities, goods and
services, which will be available for consumption. Transportation is responsible for the
development of civilizations from very old times by meeting travel requirement of people and
transport requirement of goods. Such movement has changed the lifestyle of people and the
way they travel. India is still considered as a developing country. Our political, cultural and
social developments have no meaning without economic development and prosperity. There
are a lot of factors responsible for the development of our country. Of all, transport is the
main and vital factor. This paper is restricted to only the role of transport with special
reference to the Seaways in the development and growth of tourism and further restricted to
the A & N islands.
Key Words: Foreign Tourists, Natural Resources, Seaways, Transport
Introduction
Tourism as a branch of commerce has more potential to grow itself and to develop
economically the Andaman & Nicobar Islands. The bay islands popularly known as sun
kissing marigold islands of the Bay of Bengal has innumerable, unexploited man-made and
natural resources. The natural sceneries and its beautifulness, its flora and fauna, lifestyle of
the people, highly valuable culture of the society, the natural attractions of these islands have
been attracting the people from different parts of India as well as from abroad. Many type of
tourism can be developed here. Tourisms like educational tourism, medicinal tourism, joyful
∗ Research Scholar, K P B Hinduja Research Centre, Mumbai.
13
tourism, historical tourism, research tourism; honeymoon tourism, cultural tourism,
behavioral tourism, etc. are some of the tourisms, which are presently under the development.
Andaman and Nicobar Islands have been recognized as an eco-friendly tourist’s destination.
These Islands are a veritable Garden of Eden and a naturalist's heaven. The clean
environment, roads, greenery as well as unpolluted fresh air attract all nature lovers. The
tropical rain forests and waters of Bay of Bengal are the home of a vast collection of plant,
animal and marine life. The Andaman tropical evergreen rain forests, beautiful silver sandy
beaches, serpentine mangrove lined creeks, marine life abounding in rare species of plants,
animals, corals, etc., provide a memorable experience to the tourists. There is tremendous
scope for leisure and entertainment in the beach resorts such as water sports and adventure
water sports, adventure tourism like trekking, Island camping, Nature trail, Scuba Diving, etc.
Here people from different regions, religions, cultures, lifestyles, caste, creed, beliefs, are
happily and united living. It is an example of homogenous society with heterogeneous
population. The festivals and celebrations organized and celebrated by the people of Andaman
and Nicobar Islands shows a clean picture that the people of Andaman & Nicobar Island are
entirely different group of people with high level lifestyles and entirely different from people
of other parts of the world. The tourists coming to these islands will be surprisingly moving
with people of these islands. The tourists learn a lot of good behavior and culture from the
people of Andaman &Nicobar Islands. Historical importance, natural resources, flora and
fauna, marine resources, place of interest etc. are the real assets of Andaman & Nicobar
Islands and our nation India as well.
Study Area
Andaman and Nicobar Islands, one of the Union Territory of India, is a group of islands in the
Bay of Bengal. It comprises of 572 islands, islets and rocks congregated into two major
groups, the Andaman Islands and the Nicobar Islands, separated by the 10° N parallel, with
the Andaman to the north of this latitude, and the Nicobar to the south. The Andaman Sea lies
to the east and the Bay of Bengal to the west. The administrative units of A&N Islands can be
broadly divided into 3 districts, 6 Sub-divisions and 9 Tehsils. Amongst the 556 islands,
nearly 37 are inhabited while remaining 519 are uninhabited. The territory's capital is Port
14
Blair. According to Census of India, 2011(provisional), the territory has a total population of
3.8 lakhs and the total land area is approximately 6,496 km.
Objectives of the Study
This study is undertaken with the following objectives: -
1. To study and analyze the existing seaways in the islands
2. To study the relationship between seaways and tourism sector
3. To study the relation between seaways and revenue generated in the Islands due to
tourism
4. To study the impact of Seaways and its problems on tourism
5. To suggest suitable remedial measures to solve the identified problems for the growth and
development of tourism in these islands.
Growth of Tourism
Tourism in Andaman & Nicobar Islands is still in infant stage. The resources responsible for
the growth of tourism are yet to be exploited fully. However presently the tourism is growing
in a zigzag manner, both positive as well as negative, and increasing and decreasing. To elicit
the real growth of tourism, the contribution of tourism in terms of total revenue earned by the
Andaman & Nicobar administration from tourism activities has been taken as one of the
scales to measure the growth of tourism. The tourists’ arrival to Andaman & Nicobar Islands
are shown in the following table.
15
Table 1
Inflow of Tourists & Tourism Revenue Year -wise
Year DT %
GOPY
FT %
GOPY
TT %
GOPY
TR %
GOPY
2000 – 01 78378 - 4924 - 83634 - 79.36 -
2001 – 02 88921 11.8 4833 -01.8 93754 11.1 111.38 28.7
2002 – 03 91211 02.5 4269 -13.2 95280 01.8 132.73 15.5
2003 – 04 96567 05.5 4683 08.8 111450 05.7 137.91 03.7
2004 – 05 72603 -33.0 2860 -63.7 75463 -34.2 102.35 -34.7
2005 – 06 52378 -38.6 3643 21.5 56021 -34.7 66.87 -53.0
2006 – 07 137176 57.4 13041 48.3 130217 56.9 182.45 63.3
2007 – 08 125424 01.8 10988 35.9 136412 04.5 189.04 03.5
2008 – 09 127912 01.9 13038 15.7 140950 03.2 203.63 07.2
2009 – 10 153175 16.5 12642 -03.1 165817 15.0 232.84 12.5
2010 – 11 188619 18.8 16674 24.1 205113 19.2 248.19 06.2
2011 – 12 218811 13.8 17158 02.8 235969 13.0 260.81 04.8
2012 – 13 242485 09.7 15042 -14.0 246129 08.3 227.66 -14.5
2013 - 14 244167 0.69 13146 -14.4 280310 08.1 285.69 20.3
GOPY – Growth over previous year expressed in %, FT – Foreign tourist, DT – Domestic Tourist, TT – TotalTourist, TR – Total revenue
Table 1 show the growth of domestic tourist, foreign tourist and total tourist in terms of the
number of domestic tourists and foreign tourists arrived into the islands. From the year 2000 –
01 to 2003 – 04 the number of domestic tourists increased, but in the next two years i.e. 2004
– 05 and 2005 – 06 the number of domestic tourists decreased by recording a negative growth
rate of 33.0 per cent and 38.6 per cent respectively. The main reason due for this is the
earthquake and tsunami has affected the islands in the year 2004. The impact of this natural
calamity affected the tourism badly in these 2 years. However from 2006 – 07 onwards the
domestic tourism has been growing gradually by recording a significant growth rate of 57.4
per cent in the year 2006 – 07 over previous year 2005 – 06. As far as the number of foreign
tourist are concerned growth rate is in a zigzag form since 2000 – 01. But the impact of the
16
tsunami has affected strongly the number of foreign tourists arrived into these islands by
recording a negative growth rate of 63.25 per cent in the year 2004 – 05over previous year
2003 – 04. The number of domestic tourists, foreign tourists and its growth rate has
determined the growth rate of total tourists arrived into the islands. Total revenue generated
by tourism is also another one of the scales of measuring tourism. The table shows the total
revenue has been increasing every year gradually except 2004 – 05 and 2005 – 06. The
growth trend has recorded a negative growth rate of 34.7 per cent and 53.0 per cent in the year
2004 – 05and 2005 – 06 respectively. The reason for such decrease in growth of total revenue
from tourism was due to the natural calamity tsunami and heavy earthquake. However from
the year 2006 – 07 onwards the growth of total revenue has recorded gradual increase with the
high growth rate of 63.3 per cent in 2006 – 07. But during 2012 – 13 again the total revenue
has come down to 227660 lakhs by recording a negative growth rate of 14.5 per cent this is
due to decrease in arrival of foreign tourists and decrease in growth rate of foreign tourists i.e.
14.0 per cent.
Role of Sea Transport in Andaman & Nicobar Islands
Seaways plays/play a vital role in development of islands because a quick sea transport helps
in opening up of remote and inaccessible islands, promotes tourist mobility, protects the
market, helps in the movement of people, raw materials, machinery, finished goods, setting up
of resorts and widening the peoples outlook which is a very important factor. Transports in
the A & N Islands are of three types, namely air transport, sea transport and road transport.
Airport transport consists of sea Plane and Helicopter. Sea Transport consists of ships, boat,
ferries and Catamaran. But the people of A & N islands for their movement between one
island to other islands, even to go from one place to another though the road transport is
available prefer sea transport only. People of these islands fully depend upon the transport for
their daily needs and essential commodities. This makes Seaways an indispensible and
essential part of transport in the A & N Islands.
Ships and Voyages
Ships and boats carry out the Sea transport in Andaman & Nicobar Islands. Ships are plying
between Andaman & Nicobar Islands and mainland of India by touching one or two Islands,
whereas boats are operated between the islands i.e. inter-island. The details of number of
17
ships year wise, no of voyages made by the ships between island and mainland and between
inter island are mentioned in the tables below :-
Table 2
Mainland – Island Sea Transport (No. of Ships and Voyages)
Sr. No. Year NMIS % GOPY NVMIS % GOPY NVPS
1 2000 – 01 4 - 215 - 54
2 2001 – 02 4 00.0 226 04.9 57
3 2002 – 03 4 00.0 200 -13.0 50
4 2003 – 04 5 20.0 225 11.1 45
5 2004 – 05 5 00.0 233 03.4 47
6 2005 – 06 5 00.0 206 -13.1 41
7 2006 – 07 5 00.0 188 -09.6 38
8 2007 – 08 5 00.0 189 00.5 38
9 2008 – 09 5 00.0 201 05.9 40
10 2009 – 10 5 00.0 225 10.6 45
11 2010 – 11 6 16.7 185 -21.6 31
12 2011 – 12 6 00.0 162 -14.2 27
13 2012 – 13 6 00.0 194 16.5 32
14 2013 - 14 6 00.0 202 03.9 34
NMIS- Number of Mainland – Island Ship, NVMIS-No of voyages per Mainland Island Ship,
NVPS-Number of Voyages per Ship
Table 02 shows sea transport between mainland and the islands in terms of number of ships
and voyages. There were total 4 ships plying between mainland of India and Andaman &
Nicobar Islands in the year 2000 – 2001 with a total number of voyages of 213. But up-to
2002 – 2003 there is no change in the number of ships i.e. with 0 per cent growth. Again in
2001 – 2002 the number of voyages by the same 4 ships has increased from 215 to 226
recording a moderate growth rate of 4.9 per cent over the previous year. But during 2002 –
2003 the number of voyages has come down to 200 with a negative growth rate of 13 per
cent, which shows the tourists and other public passengers might have faced good number of
problems. In 2003 – 04 the number of ships have been increased to 5 by recording a growth
18
rate of 20 per cent over the previous year and as a result the number of voyages also increased
to 225 and recording a phenomenal growth rate of 11.1 per cent over the previous year. In the
year 2006 – 2007 the number of voyages came down to 188 with a negative growth rate of 9.6
per cent over the previous year. However with the same number of ships the voyages has been
increased to 201 in the year 2008 – 09, 225 in 2009 – 10 by recording a growth rate of 5.9 per
cent and 10.6 per cent over previous year. But in 2010 – 11 the number of ships has been
increased to 6, though the no of voyages has come down to 185 and again came to 162 in
2011 – 12 by recording a negative growth rate 14.2 per cent. The number of voyages in 2012
– 13 has been increased slightly to 194 by showing growth rate of 16.5 per cent over previous
year. The analysis shows that the transport department should have concrete, crystal clear
policies as far as the numbers of voyages are concerned.
Table 3
Inter – Island Sea Transport (No. of Ships and Voyages)
NIIS - Number of Inter Island Ships, NRTIIS- Number of Round Trips by Inter IslandShips, NVPS-No of voyages per ship
S. No. Year NIIS %
GOPY
NRTIIS %
GOPY
NVPS
1 2000-01 8 - 2002 - 250
2 2001-02 12 33.3 2458 18.5 205
3 2002-03 15 20.0 2894 15.1 193
4 2003-04 20 25.0 3056 05.3 153
5 2004-05 21 04.7 3541 13.7 169
6 2005-06 21 00.0 4271 17.1 203
7 2006-07 21 00.0 3040 -40.5 145
8 2007-08 22 04.5 2942 -03.3 134
9 2008-09 25 12.0 3212 08.4 128
10 2009-10 27 07.4 3807 15.6 141
11 2010-11 27 00.0 2824 -34.8 105
12 2011-12 29 06.8 3053 07.5 105
13 2012-13 29 00.0 3225 05.3 111
14 2013-14 29 00.0 3656 11.8 126
19
Table 03 shows the transport system between Inter-island in terms of number of ships and
voyages. To give a clear picture since it sea transport between inter island voyage per ship has
been calculated. The analysis shows that the number of voyages per ship has been decreasing
in-spite the fact that the number of ships has been increasing. But from the year 2004 – 05 the
number of voyages per ship started increasing slowly up-to 2007 – 08. Again from 2008 – 09
the number of voyages per ship started decreasing up-to 2011 – 12. But 2013 – 13 and 2013 –
14 the number of voyages per ship has increased. This qualitative analysis conveys that the
sea transport department does not have control over the operations due to internal
administrative issues which will affect tourism.
Correlation Analysis
To find out the relationship between the Sea transport and tourism in A & N Islands, a
coefficient of correlation analysis has been calculated between the Total Number of Ships
Mainland – Island (TNSMI) Total Number of Ships Inter Island (TNSII) on one side and the
Domestic Tourists (DT), Foreign Tourists (FT), Total Tourists (TT) on the other side. The
related data are given in the following tables. Correlation co-efficient has been calculated by
the statistical formula and the results so arrived are given in the table.
Table 4
Total Number of Ships and Voyages Mainland – Island, Total Number of Ships and
Inter –Island Voyages
Year TNSMI TNVMI TNIIS TNRTIIS DT FT TT TR
2000 – 01 4 215 8 2002 78378 4924 83302 79.36
2001 – 02 4 226 12 2458 88921 4833 93754 111.38
2002 – 03 4 200 15 2894 91211 4269 95280 132.73
2003 – 04 5 225 20 3056 96567 4683 111450 137.91
2004 – 05 5 233 21 3541 72603 2860 75463 102.35
2005 – 06 5 206 21 4271 52378 3643 56021 66.87
2006 – 07 5 188 21 3040 137176 13041 130217 182.45
2007 – 08 5 189 22 2942 125424 10988 136412 189.04
2008 – 09 5 201 25 3212 127912 13038 140950 203.63
2009 – 10 5 225 27 3807 153175 12642 165817 232.84
2010 – 11 6 185 27 2824 188619 16674 205113 248.19
20
2011 – 12 6 162 29 3053 218811 17158 235969 260.81
2012 – 13 6 194 29 3225 242485 15042 246129 227.66
2013 - 14 6 202 29 3656 244167 13146 280310 285.69
TSNMI – Total no. of ships mainland – island; TNVMI – Total no of voyages Mainland – Island; TNIIS – Totalno of Inter Island Ship; TNRTIIS – Total no of round trips by Inter Island Ships
The above table shows the total number of ships and voyages between mainland – island and
total number of ships and voyages inter - island; and co-efficient of correlation between total
number of tourists with a bifurcation of domestic tourists and foreign tourists with the number
of ships and voyages made.
Table 05
Co-efficient of Correlation
S. No Correlation Between Value of “r”
1 TNSMI DT 0.8209518972 FT 0.7631845343 TT 0.824050974 TR 0.7766103065 TNVMI DT -0.5817925226 FT -0.7241653227 TT -0.5517813138 TR -0.5668968779 TNIIS DT 0.775328943
10 FT 0.77160261611 TT 0.77938439612 TR 0.82825116413 TNRTIIS DT 0.09762772614 FT 0.04930027215 TT 0.11640793416 TR 0.158130451
It is clear from the analysation that domestic tourism is having a positive relationship at high
level with total number of ships mainland – island (TNSMI) recording a co-efficient of
correlation 0.820951897 and with total number of ships inter – island (TNSII) recording a co-
efficient of correlation 0.775328943. Increasing the number of ships between mainland–island
and Inter- Island can very well develop the domestic tourism. However the relationship
21
between total number of voyages mainland–island and domestic tourists show a negative
relationship by recording a co-efficient of correlation (–) 0.581792522 but at the same time
the analysation depicts that there is excellent relationship between domestic tourists and total
number of round trips by inter-island vessels recording a co-efficient 0.09762776.
As far as the foreign tourism is concerned there is a strong relationship between total number
of ships mainland – island and foreign tourists recording a co-efficient of correlation
0.763184534. The co-efficient of correlation between total numbers of ships inter - island and
foreign tourists is 0.771602616. It is inferred from this analysation that increasing the number
of ships mainland island and inter – island can develop foreign tourism. But the relationship
between total number of voyages made between mainland – island and foreign tourists is
negative against a positive relationship (0.049300272) of total number of voyages made in
inter – island. The same results are coming as far as the tourism revenue is concerned, the
relationship between total revenue and total number of ships mainland – island shows a
positive correlation of 0.776610306. The co-efficient of correlation between total numbers of
ships inter – island (TNSII) and tourism revenue is 0.158130451. But here too the relationship
between voyages and tourism revenue is negative. The relationship between total number of
ships mainland – island, total number of ships inter island and total revenue shows that the
number of voyages made by the mainland – island and inter island vessels is not proportionate
to the number of vessels plying mainland – island and inter island. Hence it is inferred that the
total number of vessels mainland – island and inter – island play a vital role for the
development of domestic tourism, foreign tourism and tourism revenue.
Suggestions
The number of ships between mainland – island and in between inter – island maybe be
increased at-least by 25per cent of the existing capacity.
1. The number of voyages between mainland – island and inter – island should be increased
for better utilization of the fleet.
2. The schedule of vessels between mainland – island and between inter island should be
planned in accordance with the tourist season so as to ensure optimum utilization of vessel
capacity. Timely announcement and publishing of schedules will help towards more capacity
utilization.
22
3. Better utilization of fleet and capacity can give higher returns, which can be used for
maintenance of vessels.
4. Since the analysation shows that there is a positive high degree of co-efficient of
correlation between the number of vessels and tourists, good number of accommodation
facility maybe constructed and provided to the tourists depending on their budget and
comparatively less tariff with private accommodation.
5. Communication, information and medical facility should be provided at such proposed
accommodation in the different parts of this territory.
Conclusion
Transportation has been responsible for the development of human civilization from older day
still this computer era. Sea transport is the cheapest transport when compared with other
transports. Tourism - i a smokeless industry gives opportunities to developing countries for
their economic growth and development. The analysis and interpretations show that there is a
positive relationship between seaways and the development of tourism. This is because of the
encouraging results of the co-efficient of correlation. It is inferred from the study that if the
seaways from mainland of India to A & N islands and in between the A & N Islands are
increased with accommodation facility, medical facility , food facilities etc it is strongly
believed that tourism industry will be flourished once if the impediments in the path of
seaways are removed and is suitable strategy is formulated in the light of the suggestions
given above the tourism industry will be developed and income from tourism industry of this
territory will also occupy a portion in the National Income of India.
References:1. Brown Radcliff, A.R., 1922. The Andaman Islanders. London: Weidenfeld & Nicolson: p
104.
2. Chak, B.L., 1967. Andaman and Nicobar Islands, Ministry of Information and
Broadcasting .New Delhi: Government of India: p 89.
3. Kuppuswamy, B., 1975. Social change in India. Delhi: Vikas Publishing House: p54.
4. Rajavel, N., 1998. Tourism in Andaman and Nicobar Islands. Delhi: Manas publication: p
11.
23
5. Rajavel, N., 2007. Andaman and Nicobar Islands, Green Paradise on the Blue Surface,
Delhi: Manas publication: p 11.
6. Rajavel, N., 2006. Planning for Growth and Development Delhi: Kalpaz Publication: p 11.
7. Sen. P. K., 1964. Land and People of the Andamans. Calcutta:
8. Mathur, L.P., 1968. History of The Andaman and Nicobar Islands. Delhi: Sterling
Publishers (P) Ltd: pp. 101, 145.
24
Tourism Industry in India- An Overview∗ Padmini Tomer∗∗ Dr. R. S. Arora
.
Abstract
In domestic tourism people travel outside their residing area but within their own country for
at least 24 hours or one night for leisure, business, pilgrimage and adventure etc. while
International tourism refers to movement of people between different countries. The modern
form of tourism took place only after end of the Second World War. Since then there has been
a remarkable growth in world tourism industry. Tourism industry is world’s largest industry
with a growth rate of more than 5 per cent per annum from 1985 onwards. The flow of
international tourist across frontiers reached 922 million in the year 2008 result into receipts
of 944 billion. To study the tourism trends and tourism growth in India and its comparison
with the world tourism industry, this research paper has been planned.
Key Words: Foreign Exchange, Employment Opportunities, Education
Introduction
Tourism is concerned with “Activities related to persons traveling to and staying in places
outside their usual environment for not more than one consecutive year for leisure, business
and other purposes” (sources: UN/WTO 1993). It involves movement of people across the
frontier or within their own country and is composed of three elements, namely man, space
and time. These three elements constitute the essential conditions required for the
phenomenon of tourism (Tewari, 1995, pg. 15). It can be of classified several ways depending
upon the motivations that guide people to move from one place to another place. The main
purpose of traveling determines the form of tourism. Though it can be classified on the basis
of geographical location, purpose and number of people traveling etc., the most popularly
distinction in tourism is, it is categorized as domestic and international tourism.
∗ Senior Research Fellow, Department of Commerce, Punjabi University, Patiala.∗∗ Professor, Department of Commerce, Punjabi University, Patiala.
25
In domestic tourism people travel outside their residing area but within their own country for
at least 24 hours or one night for leisure, business, pilgrimage and adventure etc. while
International tourism refers to movement of people between different countries. Such people
are termed as foreign tourists and are defined as persons visiting a country, other than that in
which they usually reside, for a period of at least 24 hours (Committee of statistical experts of
the League of Nations, 1937).
The modern form of tourism took place only after end of the Second World War. Since then
there has been a remarkable growth in world tourism industry. Tourism industry is world’s
largest industry with a growth rate of more than 5 per cent per annum from 1985 onwards.
The flow of international tourist across frontiers reached 922 million in the year 2008 result
into receipts of 944 billion. However in 2009, due to outbreak of N1H1 the foreign tourists’
arrival across frontier reduced to 880 million. India has also registered a remarkable growth.
India was a late starter in tourism. In 1951 the number of international tourist arrivals in India
was only 17000 which increased up to 5.49 million in the year 2008. However, it reduced to
5.11 million in 2009 following the world trend.
To study the tourism trends and tourism growth in India and its comparison with the world
tourism industry, this research paper has been planned. The main objectives of the study are:
1. To study the growth of world tourism industry and share of India in world tourism.
2. To study the tourism trends in India.
Research Methodology
The present study is based on secondary data. For the purpose of study, data has been
collected from secondary sources which include Annual Reports, Statistical Abstracts, Study
conducted by Ministry of Tourism, India, five year plan documents, tourism department
publications, tourist’s statistical data, and official website of ministry of tourism. The analysis
of secondary data has been done with the help of averages, percentages and compound growth
rate. At some places line diagrams have also been used for presentation of results. Further, the
study is based on secondary data, and the limitations of using secondary data may affect the
results. In certain cases data was not available.
26
Growth of Tourism Industry
Tourism as a fastest growing industry in India has registered a remarkable growth in recent
years. It was only after independence when present form of tourism took place. The first
authentic data about tourist arrival was compiled in 1951. As given in Table1, a very small
number of tourists that is only 16829 visited India in the year 1951, while the same has gone
up to 5.11 million in the year 2009. Further, Average annual growth during 1951-60 was 24.7
per cent which was very impressive.
Table-1
Foreign Tourist Arrivals in India
Year Number %
Change
Year Number %
Change
1951 16829 - 1998 2358629 -0.7
1960 123095 24.7 1999 2481928 5.2
1970 280821 8.6 2000 2649378 6.7
1980 1253694 16.1 2001 2537282 -4.2
1990 1707158 3.1 2002 2384364 -6.0
1991 1677508 -1.7 2003 2726214 14.3
1992 1867651 11.3 2004 3457477 26.8
1993 1764830 -5.5 2005 3918610 13.3
1994 1886433 6.9 2006 4447623 13.5
1995 2123683 12.6 2007 5080000 12.44
1996 2287860 7.7 2008 5280000 3.78
1997 2374094 3.8 2009 5110000 -3.32
Source: Department of Tourism, Govt. of India
But it reduced to 8.6 per cent in next decade. The main reasons were social and political.
These were (1) in 1965, war broke out between India and Pakistan and has direct impact on
tourist arrival. (2) a Naxalite movement was at its peak in 1967, which also affected tourism.
It also revealed from Table-1 that there was an increase in growth rate during 1970-80 and it
reached up to 16.1 per cent. But the pace of growth was not as much as it was in 1951-60.
Again reasons were social and political. In 1971, second Indo-Pak war broke out and national
27
emergency was declared. Again in the year 1975 internal emergency was declared by
President Shri Fakhruddin Ali Ahmed on Indira Gandhi’s recommendation. Another reason
was, due to Tripura and Assam rebellion during 1979 and 1980, there was unrest in North
East India. So these were the reasons due to which growth rate of tourism was not as much as
expected for this period. The growth rate was drastically reduced to 3.1 per cent during 1980-
90. The reasons were operation blue star in the year 1984 to flush out terrorists from Golden
Temple, Mandal Commission and Ayodhya Karsevaks tried to storm the dispraised site called
Ram Janambhumi Babri Masjid. There was slight increase in growth rate between 1990-2000
and it was 4.6 per cent. In the year 1991, 1993, and 1998 it was negative and reasons were
communal violence in Ayodhya in 1991, sixteen bomb explosions in Mumbai in 1993 and
five nuclear tests by India in 1998. So due to these reasons tourism growth was totally
unstable during 1990-2000.
In the year 2001 and 2002 growth rate was again negative and it was -4.2 and -6.0
respectively. The main reasons were Gujarat riots, terrorist attack on trade centre and SARS.
Table-1.1 also indicated that with 26.8 per cent growth rate, year 2004 registered a remarkable
increase in tourism activities and reasons were incredible India campaign and adequate
implementation of tourism policy formulated in 2002. In the year 2009 the number of foreign
tourist arrival decreased because of threat of N1H1 virus.
In case of international tourist arrival worldwide, the number of tourist arrivals in India was
only 0.12 million in 1960 and has gone up to 4.45 million in 2006. In recent past though the
number of tourist arrivals increased but share of India was not increased in same way. It was
only 0.18 per cent in 1960 and increased up to 0.53 per cent in 2006.
28
Table 2
Tourist Arrival in India and the World
Year Tourist
arrival in
India
Million
World
tourist
arrivals
million
Share
of India
Year Tourist
arrival in
India
World
tourist
arrivals
million
Share
of India
1960 0.12 69.3 0.18 2001 2.54 683.8 0.37
1970 0.28 159.7 0.18 2002 2.38 702.8 0.33
1980 1.25 284.8 0.43 2003 2.73 690.9 0.39
1990 1.71 443.8 0.38 2004 3.46 766.0 0.45
1995 2.12 544.9 0.38 2005 3.92 808.0 0.48
1996 2.29 575.3 0.39 2006 4.45 842.0 0.53
1997 2.37 597.8 0.39 2007 5.08 900 0.56
1998 2.36 617.4 0.38 2008 5.28 922 0.57
1999 2.48 641.1 0.38 2009 5.11 880 0.58
2000 2.65 685.5 0.38
Source: Department of Tourism, Govt. of India
As given in Table 2, share of India in world tourist arrival was 0.18, 0.28, 0.38, and 0.38 in
the year 1970, 1980, 1990 and 2000 respectively. It registered an upward trend during 1970-
90 but remains constant in 1990-2000 with 0.38 per cent share. The main reason behind such
a minimal share during last 50 year was lack of appropriate tourism policy. India was late
starter in tourism and tourism got an industry status only during seventh five year plan. Due to
lack of appropriate planning very less tourism infrastructure development took place during
1990-2000. Table 2 also revealed that in year 2001 and 2002 share of India in world tourism
reduced to 0.37 and 0.33 respectively and the main reasons were Gujarat riots, SARS, and
attack on world trade centre. But as against this, in the years 2003, 2004, 2005, 2006, 2007,
2008 and 2009 presented a better picture with upward trend and India’s share was 0.39, 0.45,
0.48, 0.53, 0.56, 0.57 and 0.58 per cent respectively. The main reasons were formulation of
tourism policy in 2002 and incredible India campaign launched in 2002. Table-2 also shows
that share of India in world tourism increased from 0.18 per cent in 1960 to 0.53 per cent in
29
2006 but it got only 43rd rank in world tourism ranking in the year 2005. It was 53rd and 47th
in the year 2002 and 2004 respectively.
Tourism as one of the largest and fastest growing industry plays an important role in Indian
economy. It generates huge foreign exchange and provides lots of employment opportunities.
There has been remarkable growth in foreign exchange in recent past. The share of India in
world tourism receipts was 0.67 per cent in 1991 which increased up to 0.84 per cent in year
2005. it has been increased by about 25.2 per cent from a level of 1861 million US $ in 1991
to 6569 million US $ in 2006. As given in Table 3, share of India in world tourism receipts
was at its minimum level with 0.62 per cent in year 2002.
Table 3
World Foreign Exchange Earning and Share of India
Year World
travel
receipts US
$ billion
Travel
receipts in
India
(US$
million)
Percentage
share of India
Year World
travel
receipts US
$ billion
Travel
receipts in
India
(US$
million)
Percentag
e share of
India
1991 276.9 1861 0.67 2000 476.4 3168 0.66
1992 315.4 2126 0.67 2001 464.4 3042 0.66
1993 321.9 2124 0.66 2002 482.3 2923 0.62
1994 354.9 2272 0.64 2003 524.2 3533 0.69
1995 405.3 2583 0.64 2004 633.0 4769 0.76
1996 436.5 2832 0.65 2005 682.0 5731 0.84
1997 439.7 2889 0.66 2006 857 8634 1.00
1998 442.5 2948 0.67 2007 967 10729 1.10
1999 457.2 3009 0.66 2008 944.0 11747 1.24
Source: Department of Tourism, Govt. of India
The reasons were communal riots in Gujarat, SARS, and post impact of attack on world trade
centre. After 2002, a remarkable growth was noticed in tourism receipts and India’s share was
0.69, 0.76 and 0.84 per cent in the years 2003, 2004 and 2005 respectively. Further, in the
30
year 2006, 2007 and 2008 share was 1.00, 1.10 and 1.24 per cent respectively. Further, data
represented in figure is shown with the help of trend line in figure 1.4, 1.5, 1.6 and 1.7
respectively.
Figure 1
Figure 2
Figure 3
Foreign Tourist Arrivals in India
0
1000000
2000000
3000000
4000000
5000000
6000000
1951 1970 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Year
To
uri
st A
rriv
als
( M
illio
n)
Tourist Arrivals in World
0100
200300
400500
600700
800900
1000
1960 1980 1995 1997 1999 2001 2003 2005 2007 2009
Year
To
uri
st A
rriv
als
in W
orl
d(M
illi
on
)
31
Figure 4
Tourism Trends in India
Seasonality plays an important role in Indian Tourism industry. During last decade, around 30
per cent of the foreign tourists have visited India in fourth quarter of the year that is October,
November, and December. Further, people like to visit India to see beautiful places and its
age old culture. Almost 97 per cent of the tourists have visited here for leisure and tourism
activity. However, only 4 per cent of the tourists have like to visit India for business,
conference, education and employment activities. According to age wise distribution, the
tourist come under age group of 35-44 years dominate all other age group and its share was
between 20-25 per cent. Moreover, the number of male tourists is much more than female
tourists that is between 50-55 per cent. Further, the most favorable mode of transportation
used by the foreign tourists is air with 80-90 per cent share.
World Torusm Receipts
0
200
400
600
800
1000
1200
1991 1993 1995 1997 1999 2001 2003 2005 2007
Year
Wo
rld
To
rusm
Rec
eip
ts(B
illi
on
)
Tourism Receipts India
0
2000
4000
6000
8000
10000
12000
14000
1991 1993 1995 1997 1999 2001 2003 2005 2007
Year
To
uri
sm R
ecei
pt
Ind
ia(M
illi
on
)
32
Conclusion
It reveals that the number of tourist arrivals worldwide increase manifold but the pace of
tourist arrivals in India is not increase in the same rate. The main reasons are lack of basic
tourism infrastructure facilities like sanitation, drinking water, food, accommodation,
transportation, tourist information centre and medical facilities. Further, due to scarcity of
above mentioned facilities most of the popular traveling agencies hesitate to include India in
their tour destinations. So to earn more foreign exchange earnings and to attract more foreign
tourists, it is essential that proper expenditure must be done for development of basic tourism
infrastructure facilities.
References
Committee of statistical experts of the League of Nations, 1937.
Statistical data by Ministry of Tourism, Govt. of India.
Statistical data by UNWTO.
S.P. Tewari 1994, “Dynamics of Tourism”, Atma Ram & Sons, Delhi.
UN/WTO Report 1993.
33
Issues and Challenges in Online Banking Faced by Lower Income
Customers in Mumbai City∗Dr Sumita Shankar
Abstract
In earlier day’s branch was the only service delivery option. Introduction of technology in
banking sector has given an edge to banks in providing better customer services. Technology
driven channels like ATM (Automated teller machines) POS (Point of Sale Machines) Phone
Banking, Kiosks, Internet Banking, SMS Banking, Mobile banking etc. have provided
customers with several options for delivery of financial services. E-Banking or E-electronic
banking is a common term generally used for internet banking, Telephone Banking, and
Mobile Banking etc. E-banking, or electronic banking, refers to all types of banking
transactions performed electronically, without visiting a bank.
Competition and survival have compelled the banks to use information technology in
banking industry for delivering banking products. In fact it is providing its various services in
a majority with the help of technology. In fact it is a gain to banking industry. In spite of all
the benefits of E-banking, it is observed that the people are still hesitant to shift from the
traditional ways of banking to the current internet banking. This attitude has been observed
across different social strata. The paper focuses on finding out the perception of lower income
customers towards online banking services.
Key Words: E-Banking, Lower Strata, customer satisfaction.
Introduction
An advent of Libration, Globalization and Privatization, forced banks to be fiercely
competitive. The competition increased many fold among private sector, public sector and
foreign banks to claim higher market share and higher customer base. In this age of
competition among banks, the quality of services provided by banks has gained importance.
∗ Associate Professor, NSS College of Commerce and Economics, Mumbai Central, Mumbai.
34
This made all the banks to improve quality of their services by innovating services. Banks can
remain competitive only if they provide innovative and wide range of services at lower cost.
Objectives of the Study
• The study aims to find out lower income customers’ perception towards online banking
services.
• It aims to study the use of E-Banking technology i.e. ATMs, Internet Banking, Phone
Banking, E-Payment, etc. by lower income customers.
• The study focuses on finding out the reasons for acceptance of E-Banking services by
lower income customers.
• It aims to find out the factors for non-acceptance of E-Banking services.
• To study the challenges faced by the lower income bank customers while using E-Banking
services.
• It aims to provide solution to enhance E-Banking services on the basis of empirical study.
Methodology
The data for the research consist of data collected through Qualitative exploratory research
using questionnaires. The researcher constructed questionnaire for bank customers. The
customers’ who are using E-Banking services and who are from lower income strata are
selected for investigation. Published data for the study is collected from books, journals,
magazines and reports of various government and non government bodies. Websites of
various banks and financial sector authorities is the source of secondary data collection.
Significance of the Study
Internet banking is changing the banking sector in a rapid manner resulting in significant
impact on overall banking business. It has now emerged as an important delivery channel for
banking products and services. The present study focuses on issues and challenges faced by
lower income group customers in E-Banking services in Mumbai City. Being the hub of
financial activities, all major financial and banking giants are situated in Mumbai City. The
out come of the study will have major significance and influence fro policy makers of private
sector banks, Public sector banks and co-operative banks. The study will also be useful to
35
Government authorities to find out the reasons for the slow pace of adoption of technology in
banking sectors and to make the necessary amendments in the policy. Since this is a survey
based study it will provide first hand information on customers’ perception and their problems
in adopting E-Banking services. This feedback will go a long way in facilitating the policy
makers of the banking sector in understanding customers’ specific needs. Thus, the study will
have immense significance to the policy makers of banking sectors, along with its marketing
professions, Government authorities and Banking Customers’ Associations.
Literature Review
Some relevant studies in E-Banking and E-banking in changed environment have been
discussed below:
Uppal R.K. (2008) in his paper analyzed that the customers of e-banks are satisfied with the
different E-channels and their services. This paper focuses on Indian banking industry in
general and those banks which are providing services through E-banking channels.
Jai Shankar (2008) stated that Banks in India are looking at deploying biometric ATMs
targeted to reach the unbanked population in rural India. Using thumbprint and voice
guidance in ATMs reduces literacy requirements to a considerable extent. Thus, establishing
the identity of a rural depositor through biometrics makes it possible for illiterate or barely
literate people to become part of the banking user community.
Subbaroo, P.S. (2007) Concluded that the Indian banking system has undergone
transformation from domestic banking to international banking. According to Subbaroo the
system requires a combination of new technologies, well regulated risk and credit appraisal,
treasury management, product diversification, internal control, external regulations and
professional as well as skilled human resource to achieve the heights of the international
excellence to play its role critically in meeting the global challenge. This paper mainly
focuses on the trends in banking world over.
36
Jeevan (2000) experimented that the Internet enables banks to offer low cost, high value
added financial services. According to him competition and changes in technology and
lifestyles have changed the face of banking and banks in the present environment. Banks are
finding substitute way to provide services and differentiate their offerings.
Rajshekar (2004) stated that internet is increasingly used by banks as channel for receiving
instructions and delivering their products and services to their customers’. This form of
banking is generally referred to as Internet Banking
Rao (2006) discusses that branch banking is essential. India as an emerging economy with
high level of poverty and illiteracy, E-Banking is absolutely necessary. Advising, selling,
servicing, cross – selling and up –selling happen very effectively and seamlessly in a branch,
provided the branch has a fairly integrated system of services. Internet banking, on the other
hand, can generate vast number of cost – efficient transactions but it cannot generate new
customers on the features of various products or on their efficacy, given the level of customer
awareness of technology
Hawke (2004) expressed that fully computerized banks are in a stronger position to focus
their products through this channel .Although people are still skeptical about putting their
hard earned money in virtual bank, more and more households are banking online.
Harold, L, (2006) has conceptualized a balance score card framework to develop a
comprehensive performance measurement and management tool for IT in banking. In this
paper Harold has illustrated how charting of balance scorecard can be instrumental in
ensuring better performance in through banking technology
Review of literature on this topic clearly suggested that there are various studies on online
banking, importance of Technology in banking etc. But none of the studies were conducted to
find out the use of online banking among lower strata of society, which the present study
focuses on.
37
Analysis and Interpretation of Data
Gender Classification
The data for the study was collected through structured questionnaires. The criterion for
selection of respondent was he should have E-Banking transaction with any of the bank. Out
of 100 percent respondents contacted there were 65 percent males and 35 percent females.
Hence for the study there are 65 male respondents operating E-Banking account and 35
Female respondents operating E-Banking account. Most of the respondents belong to lower
income group hence do not have internet facility but they have access to internet through
mobile.
Professional Status
The respondents belong to lower income group. Out of 100 percent respondents 25 percent
are working as labour, 15 percent house maids, 18 percent of the respondents working as
drivers, plumbers, loaders , etc., 38 percent respondents work as office peons, attendant in
malls , sales man in shops or malls and 4 percent respondents are house wives.
Respondents’ Banks for E-Banking Services
The survey was conducted in Mumbai City, from around 500 respondents having all category
of status as stated above. The criterion for selecting a respondent was having E-Banking
account in any of the banks. The respondents include account holders from Bank Of Baroda,
Bank of India, Syndicate Bank, State Bank of India, Dena Bank, Central Bank, Allahabad
Bank, Bank of Maharashtra.
Duration of E-Banking Experience with Bank
Another important aspect is time period i.e. lengths of the account. It is very I important to
find out how long the account is operational with the bank and how long the respondent is
carrying on banking transaction via E-Banking with bank. There are four categories they are a
respondent can have account from less than 6 months, 6 months to 2 years, 2 years to 4 years,
4 years above.
The researcher is not taking into account period above 4 years. Because in India E-Banking
has picked up its speed in recent years.
38
Sector Preferences for Banks
The respondents of study shows that 62 percent respondents belong to public sector banks, 12
percent respondents belong to private sector banks, About 23 percent operate E-Banking
account with co-operative bank and 3 percent respondents could not identify the category of
their bank.
Types of E-Banking Services Used
There are various E-Banking services offered by banks such as paying bills, checking
balances, transferring funds, booking tickets, on-line shopping etc. Table below shows the
various E-Banking services used by the customers.
Table 1
Services Offered by E Banking
Sr. No Services Used Response
(Percentage)
1. In search of product and rate information 05
2. Calculate loan payment information 07
3. Download loan payment information 05
4. Download loan application form 02
5. Download personal bank transaction activity 10
6. Check balance online 78
7. Apply for credit cards 25
8. Inter account transfer 02
9. On line bills payment 87
10. Balance enquiry 80
11. Asking statement 90
12. Requesting cheque book 15
13. Funds transfer 10
14. Any other service 01
Source: Primary Survey
The above table and graph shows the percentage of responses for categories of E-Banking
services used by respondents. Out of 100 percent respondents 5 percent use E-Banking for
39
product and rate search on bank’s web site, 7 percent visit it for calculating loan payment
information, 5 percent for down loading loan payment information, 2 percent for down
loading loan application, 10 percent for downloading personal bank transactions, 78 percent
for balances online, 25 percent for applying customer loans or credit cards online, 2 percent
for interbank transfer, 87 percent for online bills payment, 80 percent for balance enquiry, 90
percent asking statement, 15 percent for cheque book request, 10 percent fund transfer and 1
percent any other service.
Satisfaction with Online -Banking Services
Crux of the study is to find out satisfaction with E-Banking services. To find out answer to
this question, respondents were probed by asking the question. Their replies are presented in
following table and graph.
Table: 2
Satisfaction with Online -Banking Services
Sr.
No.
Response Percentage
1 Yes 78
2 No 20
3 Do not Know 02
Total 100
Source: Primary Survey
40
Figure: 1
Satisfaction with Online-Banking Services
Source: Primary Data.
The study was based on direct responses of the customers having E-Banking account with
commercial bank belonging to any sector. To probe into the satisfaction level of the
customers, researcher probed further. Out of 100 percent respondents 78 percent respondents
said they are satisfied with the E-Banking services offered by their banks. 20 percent of the
respondents said they are not satisfied with the E-Banking services offered by the bank.
Remaining 2 percent respondents are not sure about satisfaction; hence they are put in no
response category. There are various reasons as to why the customers are satisfied and why
they are not satisfied with the E-Banking services.
Series1, Yes, 78,78%
Series1, NO,20, 20%
Series1, Don’tknow, 2, 2%
SATISFACTION WITH E-BANKING SERVICES
Yes
NO
Don’t know
41
Difficulties in E-Banking Services
Table: 3
Difficulties in Online Banking
Sr. No. Difficulties Percentage
1 Lack of Awareness 18
2 Security Issue 30
3 Lack of Internet Connectivity 25
4 Preference to Traditional Banking System 21
5 Conventional Thinking 04
6 Any Other Reason 02
Source: Primary Survey
The difficulties faced by respondents while transacting E-Banking transactions are Lack of
awareness, security issue, lack of internet connectivity, preference to traditional banking
system, conventional thinking etc.
Conclusion
The E-Banking upheaval has fundamentally changed the business of banking by bringing
about new opportunities. In spite of all the advantages and opportunities such as speed,
convenience, cost saving which the E-Banking offers to customers there are some hindrances
among lower income customers to opt for E-Banking option. The major challenge for E-
Banking among these strata of population is non-availability of computer, interne or mobile.
India has less than a million active internet banking users and this is just 0.096 percent of the
total population. Even though Although E-Banking is most cost effective delivery channel for
banking service, it is not free from risk. It is important for banks to concrete and make efforts
to bring these strata of population under E-banking user category from non-user category.
Banks have to win confidence of these customers by increasing the awareness and use of E-
Banking.
Efforts made by banks in this direction will not go waste as large majority of population
belongs to these strata. Banks efforts will pay back with increased customer base and
customer loyalty.
References:
42
1. Natrajan.S and Parameswaran. R (2004), “Indian Banking” S.Chand & Company, Ltd
New Delhi.
2. Ravi Kalakota, Andrew B Winston (2000), “Electronic Commerce” Addison-Wesley,
New Delhi.
3. Uppal R.K.(2008), “Challenges & Opportunities for Indian Banks”, Mahamaya Publishing
House. New Delhi.
4. Uppal R.K. (2008) “Banking with Technology”, New Century Publication, New Delhi.
5. Scott MacDonald. S,(2007) “Management of Banking” Thomson Corporation, New Delhi.
6. Benson KunjuKunju,(2008), “Commercial Banks in India: Growth, Challenges and
Strategies”, New Century Publications, New Delhi.
7. L. Satheeskumar and V.Selvaraj (2009), “E-banking Risk Management”, Banking Micro
Finance and self help groups in India, edited by A.Vijaykumar, New Century publications,
New Delhi.
8. Core processing Banking solutions (2002) McGraw-Hill, New Delhi.
9. B.Revathy (2009), “E-Banking : Opportunities and Risks”, Banking Micro Finance and
self help groups in India, edited by A.Vijaykumar, New Century publications, New Delhi.
10. Balaji B, (2002), “Services Marketing and Management”, S. Chand and Company Ltd.,
New Delhi.
11. Turnbull, Patient, Lewis, B, (1982), “The Management of Banking Services”, MCB
Publication, Yorkshire.
12. Jack Revell, (1997) “The recent Evolution of Financial Systems”, Macmillan Press, 1997.
13. Archna Mathur,(1988) “Customer Services in Public sector Banks- A comparative study
of SBBJ and SBI ” – Indian Journal of Marketing, Volume XVII, April-June.
14. Grey Holden, (2000), “Starting an E-commerce Business for Dummies”. IDG books India
(p) Ltd., New Delhi.
15. Parsons, D., Gotlieb, C.C. and Denny, M. (1993) “Productivity and Computers in
Canadian Banking”, Z. Griliches and J.Mairesse (Eds.), Productivity Issues in Services at the
Micro Level, Kluwer, Boston.
16.Jadhav A. S., Mrs. R. A. Jadhav, “Status of e-banking in India”, National annual
Convention of CSI 2004.
17. Reserve Bank of India. (1984). Report of the Committee (1989) Report of the committee
on computerization in banks.
43
A Study on Consumer Behaviour in Case of Organic Products with
Reference to Mumbai City
Rupali Sharma
Abstract
There is a rapid growth in the demand for healthy as well as tasty food products, which
follow rules regarding animal and environmental welfare, have a sustainable approach
towards production and are also high in nutrition value. This paper presents “A Study on
Consumer Behaviour in Case of Organic Products with Reference to Mumbai City”.
Organics are believed to be healthier, tastier, more natural and environmental friendly,
although being less attractive and more expensive than conventional food. The demand for
organic foods has significantly increased due to an increasing awareness about health, food
safety and environmental concerns.
Marketing of organic products is so poor in the study area that the demand for organic
products is increasing but supply is very low. The major reasons are an inadequate market
facility, few number of shops, lack of awareness, and so on. Therefore, if farmers and the
government take interest to organic farming they can easily enhance the good marketing
system in Mumbai.
Key Words: Consumer Behaviour, Consumer Attitude, Organic Products, Healthy, Price,
and Awareness
Introduction
The approach and outlook towards agriculture and marketing of food has seen a quantum
change worldwide over the last few decades. Whereas earlier the seasons and the climate of
an area determined what would be grown and when, today it is the "market" that determines
what it wants and what should be grown. The focus is now more on quantity rather than
nutritional quality. Pesticide and other chemical residues in food and an overall reduced
quality of food have led to a marked increase in various diseases and also negatively affected
the environment. In the name of growing more to feed the earth, we have taken the wrong
road of unsustainability. The effects already show - farmers committing suicide in growing
∗ Postgraduate student of University of Mumbai.
44
numbers with every passing year; the horrendous effects of pesticide sprays by a
government-owned plantation in Kerala some years ago; the pesticide contaminated bottled
water and aerated beverages are only some instances.
This is where organic farming comes in. Organic farming has the capability to take care of
each of these problems. Besides the obvious immediate and positive effects organic or
natural farming has on the environment and quality of food, it also greatly helps a farmer to
become self-sufficient for agro-inputs, and reduces the cost. Chemical agriculture and the
agriculture and food distribution systems have developed, propagated, sustained and now
share a symbiotic relationship which affects each of us in many ways.
Organic farming has been practiced in India since thousands of years. The great Indian
civilization thrived on organic farming and was one of the most prosperous countries in the
world, till the British ruled it. Organic farming was the backbone of the Indian economy.
There is no common definition of “organic” due to the fact that different countries have
different standard for products to be certified “organic”. In simplest words organic foods are
minimally processed to maintain the integrity of the food without artificial ingredients,
preservatives or irradiation. Organic products are obtained by processes friendly to the
environment, by cultivation techniques that consider both the attributes of the final product
and the production methods.
Literature Review
Fotopoulos and Krystallis, (2002):- Age seems also to affect consumer attitudes towards
organic food. Young people are more environmentally conscious but less willing to pay more
due to their lower purchasing power, whereas older people are more health conscious and
more willing to pay an extra price for organic food. Women seem to be more interested in
organics than men, and they are more frequent buyers than men.
Magnusson et al., (2001): - Education has also been reported as a significant factor affecting
consumer attitudes towards organic food products. People with higher education are more
likely to express positive attitudes towards organic products, require more information about
the production and process methods of organics, have the confidence to negotiate conflicting
claims in relation to organic food, and are more willing to pay a premium for organic food.
45
Fotopoulos and Krystallis, (2002):- Demand for organic food seems to be positively
correlated to income. Higher income households are more likely to form positive attitudes
and to purchase more organic food.
Wier et al., (2003):- The presence of children in the household has also been regarded as a
significant factor, which positively influences consumers' organic food attitudes as well as
buying behaviour. However, children's age can be considered as a key factor, meaning that
the higher the age of children in the household, the lower the propensity to buy organic food.
Research Methodology
The sources of data used in this project report are both primary and secondary data. Primary
data was collected online as well as manually. Data was collected with the help of
questionnaire and personal interviews. A survey questionnaire was made, prints out were
taken and then it was circulated to the respondents and the result was compiled. A survey
was done amongst the 100 customers. The age group in which the sample lied is 18 years –
above 64 years. The occupation of this sample size was a healthy mix of self-employed
individuals, working people and students.
Secondary data used in this study were collected from external sources like blogs, Journals,
Research Papers, and Project Reports etc.
Objective of the Study
a) To find out consumers attitude towards organic products in Mumbai city.
b) To identify factors influencing consumer’s buying decision for organic products.
Significance of the Study
a) It will be beneficial to those stores which sell organic products in their stores.
b) This Study will help the entrepreneurs to make their business plans or are planning to
open an organic store.
46
Data Analysis and Interpretation
Table 1
Demographic Profile of the Respondents
Particulars Frequency Percentage
Age 18-24 years 20 20
25-34 years 20 20
35-50 years 25 25
50-64 years 15 15
More than 64 years 20 20
Total 100 100
Gender Male 32 32
Female 68 68
Total 100 100
Education Qualification Undergraduate 23 23
Graduate 37 37
Post Graduate 24 24
Professional 16 16
Total 100 100
Occupation Service 26 26
Business/Profession 27 27
Student 20 20
Housewives 27 27
Total 100 100
Source: Primary Data
The demographic features of consumers were analyzed and the results are presented in Table
1. The results indicate that about 32 per cent of the consumers were males while the rest of
68 per cent of the consumers were females.
47
37 per cent of the respondents were graduate followed by 24 per cent of respondents were
Post graduate. This shows higher the education more preference for buying organic products.
About 27 per cent of the respondents were into Business/Profession followed by 27 per cent
of housewives and 26 per cent in service class.
Table 2
Cross Tabs between Age of the Respondents and Information about Organic Products
Age in Years Family &
Friends
Books Advertisements Retail
Shops
Others
No. % No. % No. % No. % No. %
18-24 years 9 7.14 2 1.59 9 7.14 2 1.59 3 2.38
25- 34 years 8 6.35 1 0.79 6 4.76 4 3.17 2 1.59
35 - 50 years 16 12.70 5 3.97 12 9.52 0 0 1 0.79
50 - 64 years 12 9.52 1 0.79 1 0.79 3 2.38 0 0
64 years and above 13 10.32 3 2.38 7 5.56 2 1.59 4 3.17
Total 58 46.03 12 9.52 35 27.78 11 8.73 10 7.94
Source: Primary Data
From the above analysis 46.03 per cent of the respondents in all age groups came to know
about the organic products from their family and friends. About 28 per cent of respondents
got aware about organic products from the advertisements in the newspapers, from
commercial ads or programmes on TV or any articles on organic products in the newspapers.
9.52 per cent of respondents got to know from the books as they love reading and some are
into pharmacies or working for organic India followed by retail shops i.e. Nature’s Basket or
the local stores. Other 8per cent of respondents got to know from online sites like social
networking sites, word of mouth etc.
48
Figure 1
Respondents Readiness to Travel Far to Buy the Product
Source: Primary Data
Figure 1 indicates that about 68 per cent of the respondents agreed that if organic products
are available at distant place they will go and buy them because the products are healthy, safe
and free from chemical pesticides and fertilizers. Consumers said that they will go as it is
worth it.
The study also revealed that 32 per cent of the respondents said they will would not travel to
distant place, but would prefer to order online or request the organic store to get it for them
or if not they will prefer to use conventional products.
Table 3
Frequency of Buying Organic Products by the Respondents
Age Daily Weekly Once a Month Few times year
18 -24 Year 0 5 5 10
25- 34 Year 1 2 11 6
35 - 50 years 10 4 6 5
50 - 64 Years 4 7 2 2
64 Years and above 2 9 8 1
17 27 32 24
Source: Primary Data
68 %
32%
0
10
20
30
40
50
60
70
80
Yes No
49
It is observed from Table 3 that 32 per cent of the respondents buy organic products once a
month. 27 per cent buy weekly to purchase items such as breads or snacks, 17 per cent of the
respondents buy daily to purchase items like. milk and curd. The respondents buy organic
products frequently because of high income, high standard of living and awareness about the
organic products. 24 per cent of the respondents buy few times in a year as it is expensive
and cannot buy frequently.
Table 4
Place of Purchase of Organic Products by Respondents
Place of Purchase Frequency Percentage
Retail Market 68 58.62
Organic Stores 37 31.90
Producers Farm 8 6.90
Online 3 2.58
Total 116 100
Source: Primary Data
Table 4 indicates that about 58.62 per cent of the respondents buy organic products from
Retail markets such as Nature’s basket or shops which are nearby there place. From the
survey it has been observed that there are many retail stores who have set up organic
products shelf in their shops along with conventional goods such as organic tea, wheat
powder (Aata), Pulses which is gaining its market importance.
32 per cent of consumers go to organic stores for purchasing organic food. Some of the
organic stores in Mumbai are Divine Shop of Art of living, Godrej Nature’s basket etc. Other
2 per cent of respondents buy online i.e. Amway and so on.
50
Table 5
Respondents Awareness and Knowledge of Labels Used by Manufacturers of Organic
Products
Rating Total
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
No. % No. % No. % No. % No. % No. %
Healthy 52 52 45 45 3 3 0 0 0 0 100 100
High nutritional
value
53 53 38 38 8 8 1 1 0 0 100 100
Free from chemical
pesticides and
fertilizers
58 58 30 30 10 10 2 2 0 0 100 100
Free from
Genetically
modified
organisms(GMO)
38 38 44 44 10 10 8 8 0 0 100 100
All products
coming from
organic agriculture
are certified
55 55 29 29 10 10 6 6 0 0 100 100
Source: Primary Data
Table 5 indicates that, 97 per cent of Mumbai consumers find organic products healthy.91
per cent agreed that organic products contain high amount of nutritional substances. Majority
have a positive image in their mind about the production method, 88 per cent of the
respondents think organic products are grown free from chemical pesticides and fertilizers.
About 38 per cent of the respondents ‘strongly agree’ that organic products are free from
genetically modified organism, 44 per cent agreed, 10 per cent disagreed and 8 per cent
51
strongly disagree. About16per cent of the respondents ‘disagree’ that all products coming
from organic agriculture are certified.
Logo Recognition
Labels Response
Yes 74%No 26%
Yes 44%No 56%
Yes 56%No 44%
Source: Primary data
Respondents were asked to recognize the organic label. The main aim was to understand
whether the respondents have the knowledge about organic label. 74 per cent of respondents
were aware of fabindia. Respondents were aware that it is a retail store that sells organic
products that are certified by USDA. 44 per cent of the respondents have seen USDA mark
while purchasing the products whose standards are very high. 56 per cent of the respondents
were aware of 100 per cent organic.
Table 6
52
Types of Organic Products Purchased by the Respondents
Organic Products Frequency Percentage
Fruits & Vegetables 44 16
Milk 30 11
Cereals & Pulses 41 15
Beverages 38 14
Food Products 49 18
Cosmetics 32 12
Clothes 10 4
Medicines 26 10
Total 270 100
Source: Primary Data
Interpretation: - From table 6 it is observed that 18 per cent of the respondents buy food
products such as snacks, chips, spices etc. followed by 16 per cent of the respondents buy
fruits and vegetables and 15 per cent cereals and pulses.
Table 7
Reasons for not Purchasing Organic Products Often by the Respondents
Reasons for not
Purchasing Often
Frequency Percentage
Too expensive 59 37
Not enough choices 25 16
Not available regularly 66 41
Do not like packaging 3 2
Lack of taste 7 4
Total 160 100
Source: Primary Data
Interpretation: Table 7 reveals that 41 per cent of respondents do not purchase organic
products often because sometimes the products are not available regularly. The organic
products are not available everywhere. It is often seen that few shops stock organic products,
53
but it has been observed that only big stores keep organic products. 37 per cent of the
respondents find organic products very expensive. The price of the product is double the
conventional products. 16 per cent of respondents do not get enough choices in organic
products. Choices in organic products are not available because chemical are not used to
preserve it for longer time and the shelf life is shorter and stores keep it less to prevent it
from spoiling, if not purchased by consumers.
Table 8
Motivations toward Organic Products
Variables
RATING TOTAL
StronglyAgree
Agree Neutral Disagree StronglyDisagree
No. % No. % No. % No. % No. % No. %
Healthy 56 56 42 42 2 2 0 0 0 0 100 100
Safety 43 43 39 39 17 17 0 0 1 1 100 100
Environment 24 24 56 56 15 15 5 5 0 0 100 100
Taste 26 26 39 39 29 29 5 5 1 1 100 100
Freshness 44 44 53 53 2 2 1 1 0 0 100 100
Quality 31 31 51 51 15 15 3 3 0 0 100 100
Positiveimage
27 27 58 58 13 13 1 1 1 1 100 100
Fashion 22 22 29 29 20 20 23 23 6 6 100 100
Source: Primary Data
100 consumers within Mumbai city were given statement and asked to mark them from
strongly agree (5) to strongly disagree (1). According to the results, “healthy for them and
their family” got the highest rank, in strongly agreed part from 56 per cent of buyers.
On the other hand average ranking shows healthy for them and their family is the first
motivational factor as it keeps them away from diseases.
54
Fresher than conventional food is second motivational factor. Third motivation of consumer
is positive image. Surprisingly protection of the environment in standing is the least
motivational factor for buying organic products.
Table 9
Barriers toward Organic Products
Rating
StronglyAgree
Agree Neutral Disagree StronglyDisagree
Total
No. % No. % No. % No. % No. % No %
More cheapprices
16 16 48 48 14 14 19 19 3 3 100 100
More income 7 7 37 37 27 27 25 25 4 4 100 100
Moreavailability inmarket
23 23 65 65 12 12 0 0 0 0 100 100
Morerecognizablelabel &products
31 31 50 50 14 14 5 5 0 0 100 100
Longer shelflife
19 19 34 34 14 14 26 26 7 7 100 100
Moreinformation inthe media
46 46 35 35 12 12 6 6 1 1 100 100
Source: Primary Data
Table 9 reveals that for higher income class group price is not the barrier. Price is a barrier
for the middle class respondents. They will buy more when their income is more as the
products are very expensive which they cannot buy very often.
88per cent of the respondents agreed that when there is more availability of products in the
market they will buy more followed by more recognizable label and products and more
information in the media. This shows that they are not aware about the marks and want more
55
information about the products to think of buying more. 64 per cent of respondents agreed
that if the products are cheap they will buy more.
Longer shelf life is the least important barrier for the respondents because longer shelf life
means preservatives are used and which will not be much healthier than those products with
shorter shelf life.
Suggestions
1. There is a need to open organic products marketing shops every extension areas in the
city.
2. The Creation of awareness of organic products is necessary among consumers.
3. Farmers must be supported by the government to promote organic farming.
Conclusion
Consumer behaviour plays a major role in Organic products segment. The importance of
organic products was ignored for quite a long period. The study brought out the fact that the
people were well aware of images and availability, but not loyal entirely too organic food
products.
The respondents without doubt were attracted towards Organic Products. So the marketers
must create promotions which are both realistic and moral and the product availability in
terms of volume and variety are required to become successful in marketing organic food
products.
Organically grown products are available in the markets but in limited amounts, though the
growing demands are there for such products.
Bibliography
1. Millock, K., L.G. Hansen, M. Wier and L.M. Anderson., (2002). Willingness to Pay for
Organic products: A Comparison between Survey Data and Panel Data from Denmark, AKF
Denmark.
2. Kamal P. Aryal, Pashupati Chaudhary, Sangita Pandit and Govinda Sharma, 2009
consumers’ willingness to pay for organic products: a case from Kathmandu valley, research
paper
56
3. Rushdi Ahmed , Khadiza Rahman, 2015, Understanding the Consumer Behaviour towards
Organic Food: A Study of the Bangladesh Market, research paper
4. Dr .H.M. Chandrashekar, 2014 : Consumers Perception towards Organic Products - A
Study in Mysore City, Sryahwa publications
5. Alexia Hoppe; Luciana Marques Vieira; Marcia Dutra de Barcellos, 2013 : Consumer
behaviour towards organic food in porto alegre: an application of the theory of planned
behaviour
6. Jolly, D.A., Schutz, G.H., Diaz-Knauf, K.V. and Johal, J. 1989. Organic foods: Consumer
attitudes and use. Food Technology.
7. Farah Ayuni Shafie, 2009: Consumer Perception toward Organic Products
57
Problems and Prospect of Self Help Group Women in Business
Prof. S. Chandrasekar
Abstract
The status of women in India has been improving over the years, because of various
movements and legislations like Equal Rights Act, Women Empowerment Act, Unionism
and various other Social movements. Even though these movements have been spoken in
large about women. Liberalization but still this has not come in to existence in reality. The
title of this article is “Problem and Prospect of SHG Business Women In Business” To
explain exactly which factors induce problem and what kind of techniques they can adopt.
To find which factors influence them to start the business. In this study the problems are
grouped into various categories. They are as follows:
• Problems faced by SHG business Women.
• Factors which influence to start up the business.
• Work – Life balance.
The main object of this study is to identify the factors which influence the problem for the
SHG business women. The study was conducted among the SHG business women of the
various SHG to collect the data, structured questionnaire was provided to the SHG business
women. The tools used for analyzing the data are Cross table, Chi-square and Rank
correlation. Simple percentage is used to know the prevailing factors. Cross tabulation is used
to know the dependent and independent is coincides with the problem and factors influence
them to start the business.
Introduction
If you want to awaken country first awake women. If a woman is awakened a family is
awakened and a family is awakened, a village is awakened thereby entire country is
awakened.” Jawaharlal Nehru
∗ Asst. Professor- Department of Management Studies & Research, Coimbatore Institute of Managementand Technology.
58
Establishing a business is not an easy task. Anyone opening a business has to deal with
soaring competition as more businesses open. Women have a lot to consider before starting a
business due to typically chauvinistic ideas that dominate the business world. Ideas like ‘a
woman’s place is in the home’ hinder many a business woman from achieving success.SHG is
the small group formed by the women members (normally 20 members) residing in a
particular locality, possessing the core skill capability of producing a product individually or
in groups and have started business venture of their own with the support of the Government
agencies. Government of India through the state Governments are developing SHGs
consisting of women members who are interested in taking up entrepreneurship to set up their
own business ventures jointly as a group.
Government wants to help these groups during initial period of the business to overcome the
teething problems and provides support and training ultimately to function independently as a
successful business venture. SHG could be compared to co operative societies but the
differences are 1) SHG is a small group with say 20 members 2) all the members of the SHG
are expected to work for the group and thus contribute ( i.e. ) no sleeping partners 3) SHG
functions like an enterprise 4)each member of the group is liable for the borrowings taken by
the group in establishing the business.
Each member of the group according to their skills will be taking up the responsibility and
will be given the required authority in carrying out the functions of the business (like
Marketing, Accounts, Production, etc.) by its members They spend their full time in
contributing towards the growth of the unit. At the end of the year they calculate the profit
and share the profit equally. The capital required to start the project is provided by
Government through nationalized banks. Loan is provided to the individual members which is
utilized towards their contribution to the project for implementation and running the business.
All the members of the group bring in equal amount of money as capital thus the required
Project cost is met. These SHGs normally engage themselves in the manufacturing and
marketing businesses in the small scale level like bakery, ready-made garment unit,
embroidery, etc. They are also in the Service Sector like Restaurants, Tourist Taxi operators,
etc.
59
Aim of the SHG
The aim of the SHGs is mainly to pool out the technical and managerial skills available with
the women (who are less privileged) to set up enterprises ultimately to increase their income
levels and improve the standard of living of them. The paper analyzed the progress of the
SHGs, high lights the problems and comes out with remedial measures.
Need of the SHG
There is disparity in the income level of the Indian population. On one side one segment of
the people (employed in MNC's ) becoming very rich and on the other side another segment
(less qualified and living in rural areas ) is facing poverty Understanding the urgent need to
increase the income level of the population who are not employed in companies paying fat
salaries and to bring balance in the economy Government felt that SHG concept may be one
of the methods that it can implement to minimize the problem of unemployment which is also
expected to increase the income level of the population which is below the poverty line. Thus
Government implemented SHGs. In spite of the Government support these SHGs are facing
certain problems in performing their functions affecting the growth of the SHGs. This paper
discusses the role of the Government towards development of SHGs, the problems of the
SHGs in executing its functions and the suggested solutions for the problem.
Statement of the Problem
The status of women in India has been improving over the years, because of various
movements and legislations like Equal Rights Act, Women Empowerment Act, Unionism and
various other Social movements. Even though these movements have been spoken in large
about women. Liberalization but still this has not come in to existence in reality. There are
numerous problems faced by women, especially working women, the problem might be on
the job (or) off the job. Women who feel weak in their bargaining power have joined together
and have started self-help group. They are venturing into collective working, Marketing and
sharing. These women group produce products, services and compete in the open market.
Even though the products produced by them are of high quality, but still these products are
not able to find a reputation in the market. Thus a study has been carried and to identify the
various problems faced by these SHG women in marketing / selling their products. The study
60
has been carried out to find whether there is an inherent problem or external problem faced by
these women group. This has been considered as the problem of the study.
Objectives of the Study
• To study the factors that influence SHG women to promote a business
• To study the various problem faced by SHG women in business
• To study the level of work – life balance of SHG women.
Review of Literature
The study to analyze the women empowerment through SHGs in the north Tamil Nadu was
found that the income of the women increased after joining the SHGs. So that the monthly
household expenditure also rose by a considerable level. But the savings are increasing at
slow rate, because the incremental expenditure so higher. Mostly they are spending for
present consumption. The good practice of the women SHGs in the study area is repayment of
the loan in time. Nearly 64per cent of the debtor paid their monthly due within time; even
some members (l9per cent) paid their dues in advance. A few members do not pay in time but
this is not affecting the further credit of SHGs. Since the repayment of loan is regular and
within the time, we may conclude that the economic activities of SHGs are quite successful.
In this way, SHGs in north Tamil Nadu are very successful to develop women empowerment
and rural areas1.
Despite the measures of workforce diversity and patronization of gender race equity in global
corporations, the impact of such action seems to be superficial. On a practical note, sex and
race decimation continue to thrive. Although global companies blow their own trumpet for
ensuring recruitment, promotion, training and career development opportunities solely on
merit basis, the reality has a contrary story to narrate. Globalization is definitely narrowing
the gender rift. It has brought in the realization that performance can never be gender-based.
With this realization, has come a sweep of corporate policy measures like workforce
diversity, career guidance for female employees, measures against sexual harassment, etc.
Realistic equality is now the thought for the day. It is incorrect to mingle equality of
1 Dr. A. Vinayagamoorthy & Dr. Vijay Pithadia
61
opportunity with that of equality of treatment. Sometimes, it is crucial to maintain a different
working method, based on this sexual difference. Thus, taking into consideration the gender
and race sensitive issues, it is high time that global companies realized the need for setting up
a congenial work atmosphere where men and women of all race and creeds can work hand in
hand on the same platform.2
Research Methodology
Research Design
Type of research adopted was descriptive research; descriptive studies attempt to determine
the frequency with something occurs or the relationship between two phenomena. This study
is an attempt to obtain a complete and accurate descriptive of the situations.
Sampling Technique
Research requires volume of data to analysis and interprets the result to arrive at meaningful
conclusions. To conduct the study and to analyses the problem faced by SHG business women
simple random sampling has been used.
Sample Size
The total population sizes are infinite 200 respondents were selected as sample sizes.
Tools for Data Collection
The data was collected with the help of specially prepared questionnaire schedule. The
questionnaire related to the general information about the age, educational qualification,
income, factors and problem faced by SHG business women.
Statistical Tools
• Simple Percentage method
• Rank Correlation
• Chi square
2 Debdatta Gupta & Subhasree Basu Roy,2007
62
Limitations of the Study
• The responses given in the questionnaire may not be accurate.
• Getting responses from the business women in their busy schedule was a very difficult
task.
Women Problem on Their Business
Problem of women on various aspects of their business is abstract and qualitative. It cannot be
measured directly .It can be measured indirectly towards their opinion or responses to various
aspects of their business. Problem and prospects scale has been constructed to measure the
level of problem for each women respondents on their job.The business women have a
maximum score are forty. The respondents has been grouped into two categories as (i) Low
and (ii) High , business women scored up to 20 are treated as problem as low level problem
and the respondents score above 21 are treated as problem as high level problem.
Extent of Variation in Problem Score
The sample respondents are divided into two groups based on their respective scores. The
respondents has been grouped into two categories as (i) Low and (ii) High , business women
scored up to 20 are treated as problem is low level of problem in business and the respondents
score above 21 high level of problem in business. The distribution of respondents according to
their level of problem given in table 1.
Table 1
Distribution of Sample Member on the Basis of their Level of Problem
Level of Problems No. of Members Percentage
Low 14 7
High 186 93
Total 200 100
Source: Primary Data.
Table 1 reveals that 93 per cent of the respondents face high level of problem in undertaking
business.. The data collected was classified according to nature and extent of influence of
each factor.
63
1. Age
2. Marital status
3. Educational qualification
4. Income
Age
To ascertain the extent of variation in problem among the business women of different age
group of the Self Help Group (SHG).The sample size respondents are grouped into three
groups. The respondents with the age were grouped from 18-25 years, 26 – 40 years and 41-
55 years. The average score of different age group vary from 16.25 to 55.5.
Relationship between Age and Factors That Influence to Start the Business
The respondents opined that there was a driving factor which played a major role in starting
their own business is higher. The factors such as ancestors business, NGO support, family
support or to earn income has influenced to start their business. 57 per cent of the respondents
are in the age group of 26-40 years. The satisfaction and the influence of factors to start their
own is higher in this age group 27 per cent of the respondents are in the age group of 41-55
years. In the early ages between 18-25 year are not able to join the SHG and start business
because during the early year of their marriage they are not able to come of the family. But 16
per cent of the respondents who are in to SHG feel that they are motivated to start their own
business. To analysis future the difference between the responses chi square was carried out.
The calculated chi square value is 1.569 and the table value is 3.814 at 1 per cent degree of
freedom 5 per cent level of significance. Since the table value in more than the calculated
value, the researcher has inferred that there is no significance relationship between age and
factors that influence to start a business. Thus with the increase in age, factors such as NGO
support and family support does in influence SHG women to start their own business.
Relationship between Age and Problem Faced by SHG Women in Business
Majority of the respondents inferred that there are problem in their business. The problem
such as competition and they do not have adequate income to run the business. About 58 per
cent of the respondents are in the age group of 26-40 years. Problem faced by SHG business
women are lower in this age group 29 per cent of the respondents are in the age group of 41-
64
55. It is also inferred that business women face lots of problem because they are new to the
field and they not aware about the business. To analysis further the difference between the
responses chi square was carried out. The calculated value is 1.57 and the table value is 5.991
at 1per cent degree of freedom 5 per cent level of significance. Since the table value is more
than the calculated value, it can be inferred that there is no significant relationship between
age and problem. The age does in have influence on competition and inadequate income.
Relationship between Age and Work – Life Balance
The respondents opined that 55 per cent of the respondents are in the age group of 26-40
years. From the table it is inferred that most of the SHG business women are not happy with
their work and personal life. About 28 per cent of the respondents are in the age group of
years 41- 55 years. All the age group of people find difficult to balance their work and
personal life. To analysis further the difference between the responses chi square was carried
out. The calculated value is 0.386 and the table value is 5.991 at 1per cent degree of freedom
5 per cent level of significance. Since the table value is more than the calculated value, it can
be inferred that there is no significant relationship between age and work-life balance. All
the SHG business women can balance their work and personal life.
Marital Status
To ascertain the extent of variation in problem among the SHG business women with respect
to marital status of the Self Help Group. The sample respondents are grouped in to three
groups. The respondents have been classified into Married, Divorced and Widow. The
average score vary from 76.5 per cent to 11 per cent.
Relationship between Marital Status and Factors That Influence to Start the Business
The respondents opined that there was a driving factor which played a major role in starting
their own business. 79 per cent of the respondents are married. The women in this group are
ready to start the business and they have courage to overcome the problems which may occur
in the business. But 21 per cent of the respondents are who are in to SHG feel that they were
motivated to start their own business. To analysis further the difference between the responses
chi square was carried out. The calculated value is 1.713 and the table value is 5.991 at 1 per
cent degree of freedom 5 per cent level of significance. Since the table value is more than the
65
calculated value, it can be inferred that there is no significant relationship between marital
status and factors. SHG business women start their own business not with respect to marital
status.
Relationship between Marital Status and Problems Faced by SHG Women in Business
Majority of the respondents are married. Their response towards problem faced by them is
equal. Almost half of them have equal opined that they face problems in running a business.
The overall opinion of the respondents towards facing of problem their business is positive.
SHG women face numerous problem while carry out their business. To analysis further the
difference between the responses chi square was carried out. The calculated value is 6.052
and the table value is 5.991 at 1 per cent degree of freedom 5 per cent level of significance.
Since the table value is less than the calculated value, one can infer that there is no significant
relationship between marital status and problem. The marital status has influence on
inadequate income to run their business.
Relationship between Marital Status and Work – Life Balance
Majority of the respondents opined that they were not able to balance the work and their
personal life. About 77 per cent of the respondents are got married. The SHG business women
are not happy with their work and personal life. They have no sufficient time to spend time
with their family and also they can’t concentrate on their business. To analysis further the
difference between the responses chi square was carried out. The calculated value is 0.193
and the table value is 3.814 at 1 per cent degree of freedom 5 per cent level of significance.
Since the table value is more than the calculated value, the researcher has inferred that there is
no significant relationship between marital status and work-life balance. SHG business
women work-life balance do not affect because of marital status.
Educational Qualifications
To ascertain the extent of variation in problem among the business women with respect to
marital status of Self Help Group. The sample respondents are grouped in to five groups. The
respondents classified into SSLC, HSC, Diploma, UG and Others.
66
Relationship between Educational Qualifications and Factors that Influence the Start of
a Business
Majority of the respondents opined that there was a driving factor which played a major role
in starting their own. The factors such as ancestors business, NGO support, family support or
to earn income has influenced to start their business.78 per cent of the respondents belong to
SSLC and HSC. The satisfaction and the influence of factors to start their own is higher in
this age group.11per cent of the respondents belongs to Diploma and UG. Diploma and UG
women are may interest to go for job, they not ready to start up the business. To analysis
further the difference between the responses chi square was carried out. The calculated value
is 0.18 and the table value is 5.991 at 5 per cent degree of freedom 5 per cent level of
significance. Since the table value is more than the calculated value, the researcher has
inferred that there is no significant relationship between educational qualification and factors.
Among the SHG business women, lowest educational qualification influence mostly to start
their own business.
Relationship between Educational Qualifications and Problems Faced by SHG Women
in Business
The respondents opined that were problems in their business. The problem such as
competition and they do not have adequate income to run the business. 78 per cent of the
respondents belong to SSLC and HSC .Problem face by the respondents are higher in this
category. 11 per cent of the respondents belong to Diploma and UG. The researcher has also
inferred that due to low educational qualification SHG business women face lot of problemsin
their business. To analysis further the difference between the responses chi square was carried
out. The calculated value is 0.736 and the table value is 5.991 at 2 per cent degree of freedom
5per cent level of significance. Since the table value is more than the calculated value, one
can infer that there is no significant relationship between educational qualification and
problem face by SHG women in business. Among SHG business women, problem arises not
with respect to educational qualification.
Relationship between Educational Qualifications and Work-Life Balance
Majority of the respondents opined that they were not able to balance their work and their
personal life. 85 per cent of the respondents belong to SSLC and HSC. More number of
67
respondents is not able to balance their work and personal lives are higher in this group.
Educated business women know how to balance their work and personal life. To analysis
further the difference between the responses chi square was carried out. The calculated value
is 13.79 and the table value is 5.991 at 2 per cent degree of freedom 5 per cent level of
significance. Since the table value is more than the calculated value, the researcher has
inferred that there is significant relationship between educational qualification and work life
balance. It has been inferred that are educational qualification able to maintain the balance
between personal and work life. Among SHG business women, educated business women
know how to balance their work and personal life.
Income
To ascertain the extent of variation in problem among the business women with respect to
Income level of business women in Self Help Group. The sample respondents are grouped in
to three groups. The respondents classified to the income level less than Rs.1000, between
Rs.1000-Rs.2000 and above Rs.2000.
Relationship between Income and Factors That Influence the Start of a Business
Majority of the respondents opined that there was a driving factor which played a major role
in starting their own business is higher. The factors such as ancestors business, NGO support,
family support or to earn income has influenced to start their business. 56 per cent of the
respondents earn income between Rs.1000-Rs.2000. The satisfaction and the influence of
factors to start their own is higher in this category. About 26 per cent of the respondents earn
income more than Rs.2000. More income SHG business women start up their own business.
To analysis further the difference between the responses chi square was carried out. The
calculated value is 20.42 and the table value is 3.184 at 1 per cent degree of freedom 5 per
cent level of significance. Since the table value is less than the calculated value, we infer that
there is significant relationship between income and factors influence to start the business.
SHG business women start their own business to earn income.
Relationship between Income and Problems Faced by SHG Women in Business
Majority of the respondents that there was a problem which they had in their business. The
problem such as competition and they do not have adequate income to run the business
68
.About 51 per cent of the respondents earn income between Rs.1000-Rs.2000. Problem faced
by SHG business women are lower in this category. About 25 per cent of the respondents are
earning income more than Rs.2000. Women do not face problem because they know how to
with stand challenges in the market and earn more income by providing good product and
service for the customers. To analyse further the difference between the responses chi square
was carried out. The calculated value is 17.368 and the table value is 5.991 at 2 per cent
degree of freedom 5 per cent level of significance. Since the table value is less than the
calculated value, we infer that there is significant relationship between Income level of
business and problem face SHG women in business. The desire of earning more income
causes competition which leads problem in their business.
Relationship between Income and Work-Life Balance
The respondents opined that they were not able to balance their work and their personal life.
51 per cent of the respondents earn income between Rs.1000-Rs.2000. Majority of the
respondents are not able to balance their work and personal lives. When they concentrate on
business they cannot spend time with their family, if they concentrate on their family they
face problem in business. To analysis further the difference between the responses chi square
was carried out. The calculated value is 1.97 and the table value is 5.991 at 2 per cent degree
of freedom 5 per cent level of significance. Since the table value is more than the calculated
value, we infer that there is no significant relationship between Income level of business and
work life balance. Even though income level is low they can balance their work and personal
life.
Problem Faced by SHG Women in Their Business
Establishing a business is not an easy task. Anyone opening a business has to deal with
soaring competition as more businesses open. Women have a lot to consider before starting a
business due to typically chauvinistic ideas that dominate the business world.
Table 2
69
Number of Respondents and Problems Faced by SHG Women in Their Business
Problems /Rank 1
(High)
2 3 4 5 6
(Low)
Total
Male Domination
77 7 9 40 56 11 200
Low Confidence
8 30 41 71 34 16 200
Few Women have
become Role Model 28 34 74 37 16 11 200
Insufficient Awareness
40 57 50 23 15 15 200
No Coordination
75 48 16 19 24 18 200
Low Investment93 22 12 10 50 13 200
Source: Primary Data
Findings
• The result of this study indicate that the age of the respondent, the higher is her motive to
achieve, because they have receptive mind to deal with new ideas and adopt the new way of
linings.
• Business women, who belong to joint family do not have required freedom to act
independently and are bounded by the family norms and values. These restrictions might
affect the level of motivation of business women. In contact to this, women in smaller family
enjoy more freedom to act, get all the resources and encouragement they need. Hence, they
are like to develop a higher level of motivation.
• Married, widow and divorced women in all the age groups were of the opinion that the
major drawback is their work culture which restricts their social life.
70
• It has been observed that married women are able to maintain the balance between
personal and work life, and they believe that this balance can be possible only with regulated
work schedules.
• The result of this study shows that SHG women start the business to earn more income.
Suggestions
• Women have to correct their perceptions on parenting and personal goals. Feeling of guilt
should be put aside skills and ambition should be honed.
• Every organization should have specific strategies, such as mentoring, training and
development of new policies to promote their business women career advancement.
• It is important for social organization to advocate the fact that the role of business is not
limited to entry-level position in business and government organization. It is essential for
people to reminded that women are capable of leading and not just following.
• The government needs to establish an infrastructure and programs that support women in
the workplace as well as small businesses owned by women.
• Grievance committee to be further strengthened to protect business women interest.
Conclusion
In summary, SHG women in business at Coimbatore struggle against many odds. They
operate in an environment characterized by a relatively traditional culture, low economic
opportunity and low spatial accessibility. Added that their personal characteristics and social
factors also pose challenges. These include shyness, lack of achievement motivation, low risk-
taking, low educational level, unsupportive family environment, being a women, lack of
information and experience, and problem of liquidity and finance. Some major empowerment
strategies to deal with these challenges are: Formation of Self Help Groups, intervention of
governmental, non-governmental voluntary organizations, intervention of professional bodies
of women entrepreneurs, formation of support network of family and friends, mentors and
role models.
71
References:
Books
1. Kothari. C.R. “Research Methods and Techniques”, Wishwa Prakashan Publishing, New
Delhi, 1990.
2. V S P Rao “Human Resource Management”, Published by Anurag Jain for Excel Books,
New Delhi, 2005.
Websites
• www.tamilnaduwomen.org
• www.self-help-approach.com
• www.tamilnaduwomen.org
• www.smallbusinessbible.org
• happly.indicorps.org
• www.palmyraauroville.org
• www.odam.in
• www.docstoc.com
72
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tables, chart and references. Foot notes and end notes should preferably be avoided.
4. All articles should be typed in 1 ½ spacing on A4 sized paper.
5. A declaration by the authors stating that the article is their original work and has
neither been published nor been submitted for publication elsewhere should
accompany the article.
6. The first page should include the following:
a. Title of the article
b. Name of the author
c. Designation and the name of the educational institution where employed
d. Complete address for communication
e. E-mail address of all the authors
7. Tables and Charts should appear in the paper wherever relevant. All tables and charts
should be numbered serially.
8. An article should end with a conclusion summarizing the findings of the paper.
9. References:
The author should provide complete references, numbered, at the end, of the article
with necessary information as in the specimen:
Articles: Kamenta J (1967), “On Estimation of the CES Production Function”
International Economic Review, Vol. 8, No.2, pp. 180-189.
Books: Bhatia B S and Batra G S (2003), Entrepreneurship and Small Business
Management, Deep and Deep Publications Pvt. Ltd., New Delhi.
10. The articles published in the Journal are the property of the College and it shall not be
published in full or in part without written permission from the College.
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