Statistics Project Report PGDM Final

Course Title: Decision Perspective of Management
Submitted to:
Dr. Anita Patra
Associate Professor, CSREM
Submitted by:
Atulya Kr. Mishra (S1001)
Subhasish Das (S1016)
Post Graduate Diploma in Management, CSREM
Page 1 of 45
CERTIFICATE
This is to certify that the Final Report of live project, submitted by Atulya Kumar
Mishra&Subhasish Das in partial fulfillment of the requirements for the 2nd trimester of Post
Graduate Diploma in Management from Centurion School Of Rural Enterprise
Management, Paralakhemundi, is a record of an independent work done by them under my
guidance and supervision. Their work is original and has not been elsewhere submitted. I am
pleased to say that their performance during the period of live project was extremely
satisfactory.
I wish to them to get success in their life.
Date: ___/___/_____
Place: PARALAKHEMUNDI
Signature
Page 2 of 45
ACKNOWLEDGEMENT
Every successful event on earth bears the signature of not only the man who has achieved it
but also those who have been instrumental and also an important part and parcelof the event
to accomplish it.
We deem it a privilege and pleasure in submitting the project report onContribution of

Micro Entrepreneurs in Indian Economywhich is in partial fulfillment of the
requirements of PGDM program of Centurion School of Rural Enterprise Management,
Paralakhemundi.
We would like to extend our sincere gratitude and profound thanks to Dr. G.C.Patro
(Director, CSREM) and Dr. Anita Patra (Associate Professor, PGDM) for their guidance,
co-operation and valuable feedback extended to us to complete the project report.
We also would extend oursincere thanks towards all the Micro Entrepreneurs of
Paralakhemundi, a town in Odishawhich became the base of this study, for their valuable
support and suggestions which enriched this study.
Besides this, we would also like to place on record our thanks towards the number of people
that we met during the course of research study. Due to constraints of space, it would not be
possible to name all of them.
Page 3 of 45
Synopsis / Abstract
Small Scale Industries (SSIs) play an important role as less capital-intensive producers of
consumer goods and providers of employment to labor thereby addressing the problems of
reducing the poverty and unemployment. According to rough estimates of 2003-04 there are
about 113.95 lakh SSI units (registered and unregistered) in the country accounting for more
than 40 percent of gross value of output in the manufacturing sector and about 34 percent of
the total export of the country. It provides employment to about 271.36 lakh persons, which is
second only to agriculture. One of the measures of the policy support for promoting Small
Scale Industries is the policy of reservation of economically viable and technically feasible
items for exclusive manufacture in SSI sector. The policy of reservation initiated in 1967
primarily as promotional and protective measure vis--vis the large scale sector, grant
protection to SSI units by preventing fresh capacities being created in the large scale sector in
areas which are techno-economically highly suitable for being taken up in the small scale
sector. The only exception being the case of large-scale units, which undertake minimum
level of exports as 75% of their total production. The IDR act was amended in March 1984
empowering Government to reserve items for SSI sector. Reservation/Dereservation of items
for manufacture in SSI sector is a continuing process regularly monitored by an Advisory
Committee on Reservation constituted under IDR Act. The total number of items reserved for
Small Scale Sector is 675 as on 3rd June 2003 and 605 as on 20th October 2004.The Small
Scale Sector has acquired a prominent place in the socio-economic development of the
country during the past five decades, contributing to the overall growth of the gross domestic
product towards employment generation and exports. During the year 2002-03 SSI
contribution to the Gross Domestic product was 6.81 percent. Having emerged as the engine
of growth for Indian Industry, performance of SSI sector has had a direct impact on the
growth of the national economy. There has been a steady increase in number of SSI units,
their production, employment and exports over the years. On the production front also, there
has been a steady increase over the previous years. The increase was 9.19% in1997-98,
7.84% in 1998-99, 7.09% in 1999-2000 & 8.04% in 2000-01 respectively. In the year 200102 the increase over the previous year was registered 6.06% at constant prices i.e. 1993-94
prices. Similarly the increase in production in the year 2002-03 & 2003-04 were 7.68%,
8.59% respectively.
Page 4 of 45
Small scale industries are production units with a capital investment upto Rs. 1 crore. SSIs
can be divided into three categories:
Cottage industries
Agro based industries
Small industries
It presents an entirely distinct pattern of development and emphasis the importance of small
industries in the Indian economic development, the IPR. 1956, stated: "They provide
immediate large scale employment; they offer methods of insuring a more equitable
distribution of national income and they facilitate an effective mobilization of resources of
capital and skill which might otherwise remain unutilized. Some of the problems that
unplanned urbanization tends to create will be avoided by the establishment of small center of
industrial production all over the country." There is the argument relating to allocation
efficiency and the on-going debate about relative merits of lean production and mass
production.
The survey conducted by us in the project is focused on Micro Entrepreneurship and the
influence of business in the lifestyle of the micro entrepreneurs. Along with it, this project
report also enlightens the influence of micro entrepreneurship in the economy of India.
Reference:
Economic Survey 2007 08, 2008 09, 2009 -10
http://www.nickmutt.com/small-scale-industries-in-india.htm
www.wikipedia.org
www.rbi.org.in/handbook_of_indian_economy
Datt & Sundaram_Indian Economy_62nd revised edition
MSME Annual report 2009 -10
Page 5 of 45
TABLE OF CONTENTS:
Title Page
(1)
Certificate
(2)
Acknowledgement
(3)
Synopsis / Abstract
(4)
References
(5)
Introduction
(7)
Objective of Study
(7)
Methodology, Source and Tools
(8)
Analysis
(8)
Conclusion
(40)
Annexure
(41)
Page 6 of 45
Introduction
Micro entrepreneurs are the owners of small businesses that have fewer than five employees
and have startup costs of less than $35,000 and annual revenue of less than $100,000.
Examples of micro entrepreneurs are owners of bakeries, beauty parlours, child care
facilities, repair shops, arts and crafts shops, painting businesses, contracting businesses,
family-owned shops, auto body shops, small-scale restaurants, and small-inventory trading
businesses.
Micro entrepreneurs face many hurdles in getting start up financing, and they sometimes lack
the skills necessary to manage the financial aspect of their business. As a result, many micro
entrepreneurs cannot grow and develop their business beyond a micro enterprise. Various
micro enterprise development programs have helped micro entrepreneurs achieve great
success and growth. These micro enterprise development programs have immensely helped
micro entrepreneurs who lack collateral needed to secure a loan or those who have low or no
credit by providing them with training, support, help in developing a solid business plan, and
assistance in building their businesses. Successful micro entrepreneurs have contributed
much to society by creating wealth, economic assets, and jobs.
There are 133.95 lakhs small scale sectors in India and their contribution in Indian Economy
accounts for more than 40 percent of Gross Domestic Product and about 34 percent of the
countrys export. Seeking to the huge growth of this sector, this survey was conducted at the
micro level to focus on the real influence of this business in the life of the micro
entrepreneurs and thereby in the economy of India at a macro level analysis.
Objective of Study
The project report is designed and modelled keeping various objectives under consideration
which eventually designed the questionnaire for the survey. The prime focus is being kept on:
i)
Micro entrepreneurship in the livelihood of common man influence of business

in the life of the micro entrepreneurs.
ii)
Role of Small Scale Industries in the economy of India.
iii)
Influence of economic fluctuations in the life of micro entrepreneurs.
Page 7 of 45
Methodology, Source and Tools

The survey was conducted in the town of Paralakhemundi in the state of Odisha with a
sample size of 50 micro entrepreneurs chosen randomly on the basis of simple random
sampling. A questionnaire was provided to each of the respondents and on the basis of which
the analysis was made aiming to the conclusion.
Note: Software used for analysis include MS Excel, SPSS and Minitab
Analysis
The snapshot of the segregation of the stake holders being surveyed:
Types of stakeholders
General Stores (Family
Business)
Food Seller
Bakeries
Beauty Parlours
Small Restaurant Owner
Small Inventory Trading
Business
Garments, Arts and
Craft
Total
Frequency
10
10
6
6
8
4
6
50
Segregation of Stakeholders
under survey
1010
10
Frequency
8
6 6
6
4
Ge n e ral Store s (Fam ily Bu sin e ss)
Results of questions asked in the questionnaire:

1. When did you start your business?
Page 8 of 45
Tenure
of the
business
02
yrs.
24
yrs.
46
yrs.
68
yrs.
> Than 8
yrs.
Column
Totals
General
Stores
(Family
Business
)
Food
Seller
Bakeries
Beauty
Parlours
Small
Restauran
t Owner
Small
Inventory
Trading
Business
Garments,
Arts and
Craft
Row
Totals
12
12
20
10
10
50
100%
90%
4
80%
2
4
70%
> Than 8 yrs.
60%
2
50%
40%
30%
6 8 yrs.
20%
4 6 yrs.
2 4 yrs.
0 2 yrs.
2
2
10%
0
0 0
0%
General Stores (Family Business)
Implications: Among the respondents surveyed, the maximum portion has been doing the
business for more than 8 years which shows the impact of micro entrepreneurship in the
livelihood of common people.
2. Who laid the foundation of the business?
Proprietor
himself
General
Stores
(Family
Business)
Food
Seller
Bakeries
Small
Beauty
Restaurant
Parlours
Owner
2
Small
Inventory
Trading
Business
Garments
, Arts and
Craft
Row
Totals
30
Page 9 of 45
Family
business
Relatives
and
Friends
Column
Totals
18
10
10
50
Garments, Arts and Craft
Small Inventory Trading Business

Beauty Parlours
Bakeries
Food Seller
0%
0
Relatives and Friends
Family business
2 0
2
4
50%
Proprietor himself
2
0
100%
Implications:Since the maximum proportion of the people surveyed is found to be doing the
business alone for the many years, it also enlightens the fact of rapid growth of micro
entrepreneurs in rural India and the stability provided by the business in the life of the micro
entrepreneurs.
3. What is the pattern of your operation?
General
Business
Stores
Food
Bakeries
Pattern
(Family
Seller
Business)
Manufacture
0
0
0
r
Seller
8
0
2
Manufacture
r and Seller
2
10
4
both
Column
10
10
6
Totals
Beauty
Parlours
Small
Small
Garments,
Inventory
Row
Restaurant
Arts and
Trading
Totals
Owner
Craft
Business
26
24
50
Page 10 of 45
2
8
10
6
0
2
0
6
0
4
0
0
B
us
in
es
s
ra
ft
12
10
8
6
4
2
0
an
d
Seller
Manufacturer
A
rt
s
ily
G
G
ar
m
en
er
al
St
or
es
en
ts
,
(F
am
Manufacturer and Seller

both
Implications: Here the survey resulted in the culmination of both forms of business, one only
providing service and the other involved in manufacturing and selling at the same time.
4. Do you deal with versatile products in your outlets?
Opinion
Yes
No
Column
Totals
Small
Small
Garments,
Inventor
Row
Restaurant
Arts and
y Trading
Totals
Owner
Craft
Business
General Stores
(Family
Business)
Food
Seller
Bakeries
Beauty
Parlours
8
2
10
0
4
2
0
6
8
0
0
4
2
4
32
18
10
10
50
Page 11 of 45
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2
8
10
t
ra
f
C
No
an
d
Yes
en
er
a
ar
m
lS
to
re
s
en
ts
,
A
rt
s
B
ea
ut
y
ily
Pa
rl
ou
rs
B
us
in
es
s)
(F
am
Implications:Versatility and diversification have been an important parameter of micro

entrepreneurship and with the years going by, micro entrepreneurs are looking forward to
expand their volume of business as this has become the prime medium of their livelihood
which again focuses upon the development of rural India with the path of glory of the growth
and development of Small Scale Industries, both registered and unregistered.
5. What was the initial investment for the business?
Investment
< than Rs.
15,000
Rs. 15,000
Rs. 30,000
Rs. 30,000
Rs. 45,000
General
Stores
(Family
Business)
Food
Seller
Bakeries
Beauty
Parlour
s
Small
Small
Garments,
Inventor
Restaurant
Arts and
y Trading
Owner
Craft
Business
Row
Totals
Page 12 of 45
10
12
10
Rs. 45,000
Rs. 60,000
Column
Totals
10
10
Garments, Arts and Craft 0 2
20

Small Restaurant Owner 0
4
2
Beauty Parlours
Bakeries 0
Food Seller
4
4
02
Rs. 30,000 Rs. 45,000

Rs. 15,000 Rs. 30,000
2
202
50
Rs. 45,000 Rs. 60,000
18
< than Rs. 15,000
6
4
10
Implications:The initial capital invested varied from one business to another in accordance
to their respective patterns but it was seen that the maximum proportion of respondents
incurred a capital investment of Rs. 45,000 to Rs. 60,000, which clearly satisfies the criterion
of Small Scale Industries and also the investment growth of the sector on a macro level.
6. What is the monthly income generated from the business?
Monthly
Income
< than Rs.
10,000
Rs. 10,000
Rs. 20,000
Rs. 20,000
Rs. 30,000
Rs. 30,000
Rs. 40,000
Column
Totals
General
Stores
(Family
Business
)
Food
Seller
Bakerie
s
10
10
Small
Small
Beauty
Inventor
Restaurant
Parlours
y Trading
Owner
Business
Garments,
Arts and
Craft
Row
Totals
14
12
12
12
50
Page 13 of 45
< than Rs. 10,000

2
6

Business)
Food Seller
Bakeries
Beauty Parlours

Business
4
Garments, Arts and
Craft
Rs. 10,000 Rs. 20,000

2
2
2

Business)
Food Seller
Bakeries
Beauty Parlours

Business
Garments, Arts and

Craft
Rs. 20,000 Rs.

30,000
Food
Seller

Bakeries
2
Beauty Parlours

2
Small
4 Inventory Trading Business
Page 14 of 45
Rs. 30,000 Rs.

40,000
Food
Seller

Bakeries
2Beauty Parlours

2
Small
4 Inventory Trading Business
Implications:The monthly income generated has shown a diversified segregation in

accordance to the nature of the business and also the tenure of the business. Still the first slab
has accounted for the maximum number of people, while the other three has been competitive
with the same number of people falling in each stratum.
7. At what time of the year the sale of the products is maximum?
Timings
April - June
July September
October December
January - March
All the year
round
Column Totals
General
Stores
(Family
Business)
Food
Selle
r
Bakeries
Beauty
Parlour
s
Small
Small
Garments,
Inventory
Restaurant
Arts and
Trading
Owner
Craft
Business
12
14
16
10
10
50
Page 15 of 45
Row
Totals
0
0
4
0
4
4
2
0
4
6
0
All the year round

January - March
October - December
July - September
April - June
Sm
al
lR
es
ta
ur
an
t
O
w
ne
0
4
0
en
er
a
lS
to
re
s
(F
am
ily
B
us
in
es
s)
10
9
8
7
6
5
4
3
2
1
0
Implications:For the service sectors, the sale of the services remains somehow consistent all
over the year round, but for some specific manufacturing and even service sectors, the second
financial quarter seems to be booming, the reasons accounting for the festivals.
8. What is the monthly saving generated from the business?

General
Small
Stores
Small
Food
Beauty
Inventor
Savings
(Family
Bakeries
Restaurant
Seller
Parlours
y Trading
Business
Owner
Business
)
< than Rs.
0
2
0
0
0
0
2,000
Rs. 2,000
4
2
2
4
0
0
Rs. 5,000
Rs. 5,000
2
2
2
2
0
0
Rs. 8,000
Rs. 8,000 0
2
0
0
4
4
Rs. 10,000
> than Rs.
4
2
2
0
4
0
10,000
Column
10
10
6
6
8
4
Totals
Garments,
Arts and
Craft
Row
Totals
12
10
12
14
50
Page 16 of 45
Garments, Arts and Craft 0 2
Small Inventory Trading Business 0
Beauty Parlours 0
2 0
Bakeries 0 2
> than Rs. 10,000

Rs. 8,000 - Rs. 10,000
Rs. 5,000 Rs. 8,000
2 0 2
Food Seller
General Stores (Family Business) 0
2 0
Rs. 2,000 Rs. 5,000

< than Rs. 2,000
10
Implications:The prospect of micro entrepreneurship is easily depicted by the above table

which shows the savings of the micro entrepreneurs (monthly), leading to wellbeing of their
livelihood and also the development of this sector along with the years, leading to exports and
the increased demand.
9. What was the monthly income before starting the business?
Income
< than Rs.
5,000
Rs. 5,000
Rs. 10,000
Rs. 10,000
Rs. 20,000
Rs. 20,000
Rs. 30,000
Column
Totals
General
Stores
(Family
Business
)
8
Food
Selle
r
Small
Small
Beauty
Inventor
Bakeries
Restaurant
Parlours
y Trading
Owner
Business
Garments,
Arts and
Craft
10
10
Page 17 of 45
Row
Totals
38
10
2
0
50
< than Rs. 5,000

6; 16%
4; 11%
8; 21%
8; 21%
4; 11%
4; 11%
4; 11%

Business)
Food Seller
Bakeries
Beauty Parlours

Business
Rs. 5,000 Rs. 10,000

2
2
2

Business)
Food Seller
Bakeries
Beauty Parlours

Business
Rs. 10,000 2 Rs. 20,000

2
1.5
1
0.5
0
Rs. 10,000 Rs. 20,000

0
B
us
in
es
s
Tr
ad
al
lI
nv
en
to
ry
(F
am
G
en
er
al
St
or
es
in
g
ily
B
us
in
es
s)
Sm
Implications:The above table clearly shows the difference micro entrepreneurship has
resulted in individuals income and expenditure and also per capita income. The comparison
between the income of the people before and after starting the business clearly focuses on the
growth of this sector.
Page 18 of 45
10. How many dependants are there in your family?

General
Small
Stores
Food
Beauty
Small
Inventor
Number (Family Selle Bakeries Parlour Restaurant
y Trading
Business
r
s
Owner
Business
)
< than 3
8
8
4
2
0
2
35
2
0
2
4
8
2
5-7
0
2
0
0
0
0
> than 7
0
0
0
0
0
0
Column
10
10
6
6
8
4
Totals

2
2
2

Beauty Parlours
4
8
8
1
28
20
2
0
50
Food Seller
4
2
0
0
Bakeries
Row
Totals
8
2
Garments,
Arts and
Craft
> than 7
5-7
35
0
2
5
< than 3
2
0
9 10
11. In the overall tenure, which year(s) has/have been the most profitable and has/have
yielded the maximum growth from the business point of view?
Years
1995
1998
1998
2001
2002
2005
2006
2009
2010
till now
General
Stores
(Family
Business
)
Food
Selle
r
Bakeries
Beauty
Parlour
s
Small
Small
Inventor
Restaurant
y Trading
Owner
Business
Garments,
Arts and
Craft
Row
Totals
20
30
Page 19 of 45
Column
Totals
10
10
0.4
0.33 1
0.6
0.67
50
0.33
0.67
2010 till now
2006 2009
O
w
ne
s)
2002 2005
1998 2001
al
lR
es
ta
ur
an
t
B
us
in
es
ily
(F
am
1995 1998
Sm
G
en
er
al
St
or
es
100% 0.4
90%
80%
70%
60% 0.6
50%
40%
30%
20% 0
10%
0%
Implications:The Indian Rural Market was not that much influenced by the global meltdown
that happened in 2008, which supports the above result of the table along with the steady
increase of registered and unregistered firms in the Small Scale Sector.
12. Which section of your lifestyle has been mostly influenced by the business?
Parameters
Education
Sanitation
Social Status
Women
Empowermen
t
Column Totals
General
Stores
(Family
Business)
4
0
6
Small
Small
Inventor
Restaurant
y Trading
Owner
Business
6
0
0
0
2
4
Food
Selle
r
Bakerie
s
Beauty
Parlour
s
2
0
8
2
0
4
2
0
4
10
10
Garments,
Arts and
Craft
Row
Totals
4
0
2
20
0
30
50
Page 20 of 45
0
Women Empowerment
B
us
in
es
s
B
us
in
es
s)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Social Status
Sanitation
Sm
en
er
a
al
lI
nv
e
lS
to
re
s
nt
or
y
Tr
ad
(F
am
ily
in
g
Education
Implications:Social Status and Education are the most important features of livelihood that
witnessed a positive effect of micro entrepreneurship.
13. How many employees are working in your business?
No. of
Employees
<= 2
3
4
5
Column
Totals
General
Stores
(Family
Business)
8
0
2
0
10
Food
Seller
Bakeries
Beauty
Parlours
Small
Restaurant
Owner
4
2
4
0
4
0
2
0
4
2
0
0
0
2
2
4
Small
Inventory
Trading
Business
4
0
0
0
10
Garments,
Arts and
Craft
Row
Totals
6
0
0
0
30
6
10
4
50
Page 21 of 45
Beauty Parlours
Bakeries
Food Seller
No. of Employes 0
0%
4
20%
0
2
40%
60%
80%
100%
Implications:Maximum micro entrepreneurs employ less than 2 employees in their own

business, which also supports the feature of Small scale sectors.
14. Are there any female employees working in your business?
Bakeries
Beauty
Parlours
2
8
0
6
0
6
6
2
10
G
en
er
al
St
or
es
2
4
12
38
50
8
6
4
0
2
ra
ft
0
4
C
an
d
No
Yes
A
rt
s
(F
am
ily
B
us
in
es
s
Row
Totals
en
ts
,
Garments,
Arts and
Craft
G
ar
m
10
9
8
7
6
5
4
3
2
1
0
Pa
rl
ou
rs
10
Small
Small
Inventor
Restaurant
y Trading
Owner
Business
Food
Seller
B
ea
ut
y
Yes
No
Column
Totals
General
Stores
(Family
Business
)
2
8
Page 22 of 45
Implications: Women empowerment also shows a growth rate, though quite slow by virtue
of micro entrepreneurship.
15. Is your business affected by economic fluctuations like inflation, deflation and increase of
annual growth rate and also by natural calamities?
Yes
No
Column
Totals
General
Stores
(Family
Business)
6
4
10
Bakeries
Beauty
Parlours
Small
Restaurant
Owner
4
6
0
6
0
6
8
0
Small
Inventory
Trading
Business
0
4
10
Food
Seller
Garments,
Arts and
Craft
Row
Totals
0
6
18
32
50
Yes
8; 44%
6; 33%
4; 22%

Business)
Food Seller
Bakeries
Beauty Parlours

Business
No
6; 19% 4; 13%
6; 19%
4; 13%
6; 19%
6; 19%

Business)
Food Seller
Bakeries
Beauty Parlours

Business
Implications:As being discussed above, the previous table supports the same view that this
sector is less affected by the economic fluctuations.
Page 23 of 45
Some hypothesis tests to find the role of micro entrepreneurship in the life
of people:
1) H0: There is no significant difference in the investments of different business i.e.
is are equal Vs. H1: H0 is false
In this test, ANOVA Two factor without replication is used.
Decision rule: If calculated>critical, H0 is rejected, otherwise accepted with level of
significance. ( = .05 taken)
Calculations:
TSS = (Xij X)2for all i,j,
X = Grand Mean
RSS= n x (Xi - X)2for all i,

CSS = m x (Xj X)2for all j,
ESS = TSS CSS RSS
Degree of Freedom:
TSS = mn - 1
RSS = m -1
CSS = n - 1
ESS = (m-1)(n-1)
MSR = RSS/ m-1,
= MSR/MSE
MSC = CSS/ n-1,
= MSC/MSE
ANOVA
Source of
Variation
SS
df
Rows
6.142857143
Columns
7.714285714
Error
68.85714286
18
MS
2.04761904
8
1.28571428
6
3.82539682
5
F critical
Decision
0.53526971
3.15990759
H0 accepted
0.33609958
5
2.66130452
3
H0 accepted
Page 24 of 45
Total
82.71428571
27
Inference: Since calculated< critical, we accept H0 with 95% confidence level i.e. there is no
significant difference in the investments of different business.
2) H0: There is a symmetry among the income generation from different businesses
vs. H1: H0 is false
Calculations:
X = Grand Mean
RSS = n x (Xi - X)2for all i,

ESS = TSS CSS RSS
Degree of Freedom:
TSS = mn - 1
RSS = m -1
CSS = n - 1
ESS = (m-1) (n-1)
MSR = RSS/ m-1,
= MSR/MSE
MSC = CSS/ n-1,
= MSC/MSE
Source of Variation
Rows
Columns
SS
0.4286
7.7143
Error
74.571
ANOVA
df
MS
3
0.14285714
6
1.28571429
1
4.14285714
8
F
0.034482759
0.310344828
F critical
3.15990759
2.66130452
Page 25 of 45
Total
82.714
2
7
Inference: Since calculated< critical, we accept H0 with 95% confidence level i.e. there is a
symmetry among the income generation from different businesses.
3) H0: There is no significant difference between the time of maximized sale of the
product or service vs. H1: H0 is false
Calculations:
X = Grand Mean
RSS = n x (Xi - X)2for all i,

ESS = TSS CSS RSS
Degree of Freedom:
TSS = mn - 1
RSS = m -1
CSS = n - 1
ESS = (m-1) (n-1)
MSR = RSS/ m-1,
= MSR/MSE
MSC = CSS/ n-1,
= MSC/MSE
Source of Variation
Rows
Columns
Error
ANOVA
SS
df
MS
18.286
4
4.5714
6.1714
6
1.0286
148.11
2
6.1714
F
0.7407
0.1667
F critical
2.77628929
2.50818882
Page 26 of 45
Total
172.57
4
3
4
significant difference between the time of maximized sale of the product or service.
4) H0: There is no significant difference between the monthly savings generated
from different business vs. H1: H0 is false
Calculations:
X = Grand Mean

ESS = TSS CSS RSS
Degree of Freedom:
TSS = mn - 1
RSS = m -1
CSS = n - 1
ESS = (m-1) (n-1)
MSR = RSS/ m-1,
= MSR/MSE
MSC = CSS/ n-1,
= MSC/MSE
Source of Variation
Rows
Columns
ANOVA
SS
df
MS
12.5714 4 3.14286
6.17143 6 1.02857
F
1.30435
0.42688
F critical
2.77629
2.50819
Page 27 of 45
Error
57.8286
Total
76.5714
2
4
3
4
2.40952
significant difference between the monthly savings generated from different business.
5) H0:There is no influence of the business in the income of the general stores i.e. D
= 0 vs. H1: H0 is false i.e. D 0
Since we are dealing with related populations in this hypothesis, we shall be using Paired t
test in this case.
Assumptions:The populations are normally distributed and = .05
Here we shall be dealing with the differences:
n
D
i 1
D =X i
1i
Di = X1i X2i, so the i-th paired difference will be
The point estimate:
Here, the standard deviation for the population is unknown. So we shall estimate the
population standard deviation by sample standard deviation.
n
SD
(D
i 1
D) 2
n 1
The formula is:
D D
SD
n
D t n 1
SD
n
The test statistics is:
, where t has n-1 d.f and

Page 28 of 45
The confidence interval is:

Monthly
Income
< than Rs.
10,000
Rs. 10,000
Rs. 20,000
Rs. 20,000
Rs. 30,000
Rs. 30,000
Rs. 40,000
Column Totals
General Stores
(Family
Business)-after
2
General Stores
(Family Business)before
10
0
2
10
Differences
Absolute
difference
-4
-2
-2
16
10
D= 4
Sample Std. = 2.828427125
t statistic = 4.472135955 and t critical=2.262157163
Sine tcalc>tcritical, we reject H0 at 5% level of significance i.e. there is no influence of the
business in the income of the general stores.
Reject H04.472135955
Reject H0
-2.262157163
2.262157163
6) H0: There is no influence of the business in the income of the bakeries i.e. D = 0
vs. H1: H0 is false i.e. D 0
test in this case.
Assumptions: The populations are normally distributed and = .05
D =X i
1i
Page 29 of 45
D
i 1
The point estimate:
SD
(D
i 1
D) 2
n 1
Here, the standard deviation for the population is unknown. So we shall
estimate the population standard deviation by sample standard deviation.

The formula is:
t
D D
SD
n
D t n 1
SD
n

Monthly Income
< than Rs. 10,000
Rs. 10,000 Rs. 20,000
Rs. 20,000 Rs. 30,000
Rs. 30,000 Rs. 40,000
Column Total
Bakeries after
2
2
0
2
6
Bakeriesbefore
6
0
0
0
6
Difference
s
4
-2
0
-2
0
Absolute
difference
4
2
0
2
8
D= 2
Sample Std. = 1.632993162
t statistic = 3 and t critical=2.570581836
Sine tcalc>tcritical, we reject H0 at 5% level of significance i.e. there is influence of the business
in the income of the general stores.
Reject H03
Page 30 of 45
Reject H0
-2.570581836
2.570581836
7) H0:There is no influence of the business in the income of the food seller i.e. D = 0
vs. H1: H0 is false i.e. D 0
test in this case.
n
D
i 1
D =X i
1i
The point estimate:
SD
(D
i 1
D) 2
n 1

The formula is:
t
D D
SD
n
D t n 1
SD
n

Page 31 of 45
Monthly
Income
Food
Seller_after
< than Rs.

10,000
Rs. 10,000
Rs. 20,000
Rs. 20,000
Rs. 30,000
Rs. 30,000
Rs. 40,000
Column Totals
4
2
0
4
10
Food
Seller_befor
e
8
Differences
Absolute
difference
-4
2
0
0
10
D= 2
Sample Std. = 2.309401077
t statistic = 2.738612788and t critical=2.262157163
in the income of the food sellers.
Reject H02.738612788
Reject H0
-2.262157163
2.262157163
8) H0:There is no influence of the business in the income of the restaurants i.e. D =

0 vs. H1:H0 is false i.e. D 0
test in this case.
n
D
i 1
D =X i
1i
The point estimate:
Page 32 of 45
SD
(D
i 1
D) 2
n 1

The formula is:
t
D D
SD
n
D t n 1
SD
n
Monthly Income
< than Rs.
10,000
Rs. 10,000 Rs.
20,000
Rs. 20,000
Rs. 30,000
Rs. 30,000 Rs.
40,000
Column Total
Small
Restaurant
Owner - after
0
0
4
4
8
Small
Restaurant
Owner-before
4
2
2
0
8
Differences
Absolute difference
-2
-4
12
Page 33 of 45
D= 3
Sample Std. = 1.154700538
in the income of the restaurants.
Reject H07.348469228
Reject H0
-2.364624252
2.364624252
9) H0:There is no influence of the business in the income of the small inventories

tradersi.e. D = 0 vs. H1:H0 is false i.e. D 0
test in this case.
n
D
i 1
D =X i
1i
The point estimate:
SD
(D
i 1
D) 2
n 1

The formula is:
Page 34 of 45
D D
SD
n
D t n 1
SD
n

Monthly
Income
< than Rs.
10,000
Rs. 10,000
Rs. 20,000
Rs. 20,000
Rs. 30,000
Rs. 30,000
Rs. 40,000
Column Total
Small Inventory
Trading Businessafter
0
Small Inventory
Trading
Business-before
4
Differences
Absolute
difference
-2
-2
0
4
D= 2
Sample Std. = 1.632993162
Sine tcalc<tcritical, we accept H0 at 5% level of significance i.e. there is no influence of the
business in the income of the small inventories traders.
Reject H02.449489743
Reject H0
-3.182446305
3.182446305
10) H0: There is no significant influenceof the economic fluctuations in the business
i.e. is are equal Vs. H1: H0 is false
Page 35 of 45

Calculations:
X = Grand Mean

ESS = TSS CSS RSS
Degree of Freedom:
TSS = mn - 1
RSS = m -1
CSS = n - 1
ESS = (m-1) (n-1)
MSR = RSS/ m-1,
= MSR/MSE
MSC = CSS/ n-1,
= MSC/MSE
Source of Variation
Rows
Columns
Error
Total
ANOVA
SS
df
MS
14
1
14
15.429 6 2.5714
84
6
14
1
113.43
3
F
1
0.183673
F critical
5.98737761
4.28386571
significant influence of the economic fluctuations in the business i.e. is are equal.
So from the relevant tests, it can be concluded that the Small Scale industries has created a
vast change in the life of the micro entrepreneurs by virtue of improvement in their standard
of living so far as social status, education, sanitation and other related parameters are
Page 36 of 45
concerned. At the same time, the rate of growth is on a steep positive slope and this sector is
also less affected by the economic fluctuations viz. inflations, deflations etc.
Role of Small Scale Industries in Indian Economy:

The small scale industrial sector which plays a pivotal role in the Indian economy in terms of
employment and growth has recorded a high rate of growth since independences in spite of
stiff competition from the large sector and not encouraging support from the govt. This is
evidenced by the number of registered units which went up from 16000in 1950 to 36000
units in 1961 and to 33.7lakh units in 2000-2001 during the last decade alone the small scale
sector has progressed from the production of simple consumer goods to the manufacture of
many sophisticated and precision products like electronic control system microwave
components, electro-medical equipment, television -sets etc.
The govt. has been following a policy of reservation of items for exclusive
development in the small scale sector at the time of the 1972 census of small scale industrial
units, there were 177 items in the reserved list by 1983 the reserved list included 837 items
for exclusive production in the small scale sector these units produce over 8000 commodities.
Census 2001-02 reported that 97.2% of the registered SSI units were proprietary, only 1.3 %
were partnership and 0.5% were private companies and just 0.1%were co-operative.In other
words the dominant type in the ownership pattern is proprietary with a small fraction
operating as partnership.
Output and employment of Small Scale Industries:

According to the third census in 2001- 02 there was 13.75lakh units in the register
sector and 91.46lakh units in the on registered sector ironically the census estimated much
lower figures of production by SSI sector. Keeping this in view the ministry of small scale
industries revised the data pertaining to SSI sector.
The data revels that the total number of SSI units has increased from 79.6lakh in
1994-95 to 133.68lakh in 2007-08. Indicating an annual average growth rate of 4.1%, but
their production at 1993-94 prices increased from Rs.1,09,116crore in 1994-95 to
Rs.532979crores in 2007-08. An annual average growth of 13.0% as a consequence of the
increase in SSI units, more especially in the on registered sector employment increased from
191.4lakh in 1994-95 to 322.3lakh in 2007-08 recording an average growth rate of 4.07% per
Page 37 of 45
annum. So far as exports by SSI sector are concerned they increase from Rs.29.068crores in
1994-95 to Rs. 1,77,600crores in 2006-07, recording a growth rate of 16.26% per annum. The
ministry has not changed the data pertaining to exports.
Small Scale Sector

No of units( in lakhs)
Year
199495
199596
199697
199798
199899
199900
200001
200102
200203
200304
200405
200506
200607
200708
200809
production(Crores)
Total
Employment
(lakhs)
Export(Rs
crores)
At current
price
At current
price
At 199394 prices
25.71
2,98,886
2,66,054
146.56
29,068
67.99
79.6
1,22,154
1,08,774
191.4
29,068
11.57
71.27
82.84
1,47,712
1,21,175
197.93
36,470
11.99
74.22
86.21
1,67,805
1,34,392
205.86
39,470
12.04
77.67
89.71
1,87,217
1,46,263
213.16
44,442
12
81.36
93.36
2,10,454
1,57,525
220.5
48,979
12.32
84.83
97.15
2,33,760
1,70,379
229.1
54,200
13.1
88
101.1
1,61,297
1,34,401
238.73
69,797
13.75
91.46
105.21
2,82,270
1,95,613
249.33
71,244
14.68
95.42
110.1
3,14,850
30,677
260.21
86,013
15.54
98.41
113.95
3,64,547
3,36,344
271.42
97,644
16.57
102.02
118.59
4,29,796
3,72,938
282.57
1,24,417
18.7
104.7
123.4
4,97,886
4,18,884
294.91
1,50,242
-----
-----
128.44
585112
471663
312.52
1,77,600
-----
-----
133.68
695126
532979
322.28
2,03,455
Registered
Unregistered
19.44
6.27
11.61
Since 2006-07 the nomenclature of the ministry of the small scale industry has been changed
and how it is named as ministry micro small and medium enterprises. As the same suggest
now service sector enterprises working at small scale have also been included in the MSME
sector. Latest data published by the ministry in its annual report 2009-10 now gives
composite number of enterprises. Likewise production figures also pertain to MSME and not
just small scale industry.
Page 38 of 45
Fourth census of MSME sector estimated that 67% of the MSMEs are manufacturing
enterprise and 33% are service enterprises. Obviously the growth rate of the small scale
sector has been faster both in terms of output and employment in other word the output
employment ratio for the small scale sector is 1:1.4. The rapid growth of the small scale
industries has a great relevance in our national income policies. In this connection we may
refer to the relatively low capacity utilization in the small scale industries. The capacity
utilization in the small sector as a whole was of the order of 53%. There were however many
units having high capacity utilization that is industries utilizing 60-80% of the capacity
included leather goods, readymade garments, tiles, woolen knit ware.
Exports:
Substantial increase in exports were observed in the case of readymade garments, canned and
processed, lather scandals and chapels, food products, hosiery and marine product etc. the
value of exports increased to Rs. 1643crores in 1980-81 and to a record high figure of rupees
150242crores in 2005-06. A very significant feature of exports from the small scale sector is
their share in non-traditional exports. The share of exports from the small scale sector
represents about 32.3% of total exports in 2005-06.
The obvious conclusion is that the growth of SSIs in terms of number and output is
comparatively much higher in reserve items than in unreserved items. The policy of
reservation has, therefore, positively helped the growth of this sector.
A brief Analysis:
To test:
H0: There is no significant difference between production, exports and employment in the
SSIs from 1994-95 to 2008-09 vs. H1: H0 is false.
Calculations:
X = Grand Mean
Page 39 of 45

ESS = TSS CSS RSS
Degree of Freedom:
TSS = mn - 1
RSS = m -1
CSS = n - 1
ESS = (m-1) (n-1)
MSR = RSS/ m-1,
= MSR/MSE
MSC = CSS/ n-1,
= MSC/MSE
ANOVA
Source of Variation
SS
DF
MS
Rows
Columns
Error
Total
1.45E+13
4.79E+12
2.73E+13
4.66E+13
14
2
28
44
1.04E+12
2.39E+12
9.73E+11
1.064658
2.459336
F
critical
2.063541
3.340386
Inference: Since calculated<critical, we accept H0 with 95% confidence level i.e. tThere is no
significant difference between production, exports and employment in the SSIs from 1994-95
to 2007-08.
Here, by regression analysis the relation between exports, production and employment will be
estimated. So, by the empirical model,
y = f(x), where y = production, x = exports
z = f(y), z = employment, y = production.
So, the model is:
Page 40 of 45
Production(y) = + x(exports), where and are the parameters to be estimated.

The Normal equations are:
y = n + x
xy = x + x2
So, solving the equations, the regression equation is:
production(y) = - 962387 + 20.1 export(x)
R2 = 0.424, adjusted R2 = 038
ANOVA TABLE
Source
Regression
DF
1
SS
176996183378932.
MS
176996183378932.
Residual
Total
13
14
7
24020069655591
41719687993483.7
7
1847697665814.69
F
9.579283
F critical
.008527772
Now, we shall find the relation between production, exports and employment:
Using multiple regression technique, the regression equation is:
Employment (z) = 169 - 0.000005 production (y) + 0.000921 export (x)
R2 = .893, adjusted R2 = .875
So, it can be concluded that employment has a positive relation with exports while there
exists a negative relation with production.
So, exports play an important role in the growth of Small Scale Industries in India.
The following table shows the contribution of SSI in Indian GDP and Exports in the last
decade:
Page 41 of 45
Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
GDP Nominal
( in INR
Crores )
Export
( in INR
Crores)
Exports_SS
I (in INR
Crores)
1015764
82674.1
1191813
1378617
1527158
1751199
1952036
2102314
2278952
2454561
2754620
3149407
3706473
4283979
4947857
5574448
106353.3
118817.1
130100.6
139753.1
159561.4
203571.0
209018.0
255137.3
293366.8
375339.5
456417.9
571779.3
655863.5
840755.1
Production_SSI
%
contributio
n
%
contribution
29,068
2,98,886
29.4247
35.1597417
29,068
36,470
39,470
44,442
48,979
54,200
69,797
71,244
86,013
97,644
1,24,417
1,50,242
1,77,600
2,03,455
1,22,154
1,47,712
1,67,805
1,87,217
2,10,454
2,33,760
1,61,297
2,82,270
3,14,850
3,64,547
4,29,796
4,97,886
585112
695126
10.2494
10.7145
10.9881
10.6908
10.7813
11.1192
7.07768
11.4998
11.4299
11.5751
11.5958
11.622
11.8256
12.4699
27.331545
30.6942351
30.3380615
31.8003679
30.6960205
26.6246175
33.3928178
27.9237885
29.3192686
26.0148479
27.259448
26.2762223
27.0788053
24.1990801
The percentage rate of contribution in exports accounted to be around 25% in Indias overall
exports, while that of production contributed around 12.5% in Indias GDP in 2008 - 09. But
the trend in exports is increasing over the years, showing the positive growth rate of Small
Scale Sector and thereby stepping forward to the betterment of livelihood as well as the
economic parameters like per capita income in rural India.
Advantages of SSI:
Labor intensive in nature

Useless capital per unit of output
Prevent congestion
Suitable for people with limited resources
Prevent concentration of economic power
Lead to better distribution of incomes
Help in putting idle resources to productive user
Suitable for lean production
Lead to allocate efficiency
Problems of SSI:
Problem of finance
Page 42 of 45
Problem of raw material

Problem of power
Problem of marketing
Export difficulties
Problem of technical knowhow
Problem of industrial relations
Growing sickness and mortality among these units
Suggestions for growth:
Part gains be consolidated

Development measures be spread
A discriminating program of assistance be formulated
Productivity need be improved
Assistance programs needs be tacked
Skill based needs be improved
Inter-industry linkages be provided
World class facilities need be provided
Marketing assistance be provided
Exports need be provided
Market intelligence be sup pled
Low-cost automation should be encouraged
Conclusion:
The micro and macro level aspects of micro entrepreneurship, being enlightened in the
project gives a clear snapshot of the contribution of small scale industries in the developing
economy of India. The increment of total number of firms in SSI shall deliver positive
outcomes making India a better place to live in, both from the socio political and economic
point of view.
Annexure
Questionnaire
Name of the Micro Entrepreneur:
Gender:
Name of the Outlet:
Business Pattern:
Shop
Owner
Food
Seller
Bakeries
Place:
Beauty
Parlours
Art and
Craft
Small
Restaurant
Small Inventory
Trading
Page 43 of 45
(Family
Business)
Shops
Owner
1. When did you start your business?

a. 0 2 yrs. b. 2 4 yrs.
c. 4 6 yrs.d. 6 8 yrs.
2. Who laid the foundation of the business?
a. Proprietor himself b. Family business
3. What is the pattern of your operation?
a. Manufacturer
b. Seller
c.
c.
Business
e. > Than 8 yrs.
Relatives and Friends
Manufacturer and Seller both
4. Do you deal with versatile products in your outlets?

a. Yesb. No
(If Yes, then the products sold in the outlet)
5. What was the initial investment for the business?
a. <thanRs. 15,000
c. Rs. 30,000 Rs. 45,000
b. Rs. 15,000 Rs. 30,000
d. Rs. 45,000 Rs. 60,000
6. What is the monthly income generated from the business?
a. < thanRs. 10,000
c. Rs. 20,000 Rs. 30,000
b. Rs. 10,000 Rs. 20,000
d. Rs. 30,000 Rs. 40,000
7. At what time of the year the sale of the products is maximum?
a. April - June
d. January March
b. July - September
e. All the year round
c. October - December
8. What is the monthly saving generated from the business?
a. < thanRs. 2,000
d. Rs. 8,000 Rs. 10,000
b. Rs. 2,000 Rs. 5,000
e. > than Rs. 10,000
c. Rs. 5,000 Rs. 8,000
9. What was the monthly income before starting the business?
d. < thanRs. 5,000
c. Rs. 10,000 Rs. 20,000
e. Rs. 5,000 Rs. 10,000
d. Rs. 20,000 Rs. 30,000
10. How many dependants are there in your family?

a. <than 3
c. 5 - 7
b. 3 5
d. > than 7
11. In the overall tenure, which year(s) has/have been the most profitable and has/have
yielded the maximum growth from the business point of view?
a. 1995 1998
c. 2002 2005
e. 2010 till now
b. 1998 2001
d. 2006 2009
Page 44 of 45
12. Which section of your lifestyle has been mostly influenced by the business?
a. Education
c. Social Status
b. Sanitation
d. Women Empowerment
13. How many employees are working in your business?
a. 2
c. 4
b. 3
d. 5
14. Are there any female employees working in your business?
a. Yes
b. No
15. Is your business affected by economic fluctuations like inflation, deflation and
increase of annual growth rate and also by natural calamities?
a. Yes
b. No
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Statistics Project Report PGDM Final

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Course Title: Decision Perspective of Management

I wish to them to get success in their life.

We deem it a privilege and pleasure in submitting the project report onContribution of

Methodology, Source and Tools

Micro entrepreneurship in the livelihood of common man influence of business

Role of Small Scale Industries in the economy of India.

Influence of economic fluctuations in the life of micro entrepreneurs.

Methodology, Source and Tools

The snapshot of the segregation of the stake holders being surveyed:

Ge n e ral Store s (Fam ily Bu sin e ss)

Results of questions asked in the questionnaire:

> Than 8 yrs.

Garments, Arts and Craft

Small Inventory Trading Business

Small Restaurant Owner

General Stores (Family Business)

Manufacturer and Seller

Implications:Versatility and diversification have been an important parameter of micro

5. What was the initial investment for the business?

Garments, Arts and Craft 0 2

Small Inventory Trading Business

Rs. 30,000 Rs. 45,000

General Stores (Family Business)

Rs. 45,000 Rs. 60,000

< than Rs. 15,000

6. What is the monthly income generated from the business?

< than Rs. 10,000

General Stores (Family

Small Restaurant Owner

Small Inventory Trading

Rs. 10,000 Rs. 20,000

General Stores (Family

Small Restaurant Owner

Small Inventory Trading

Garments, Arts and

Rs. 20,000 Rs.

General Stores (Family Business)

Small Restaurant Owner

Garments, Arts and Craft

Rs. 30,000 Rs.

General Stores (Family Business)

Small Restaurant Owner

Garments, Arts and Craft

Implications:The monthly income generated has shown a diversified segregation in

All the year round

8. What is the monthly saving generated from the business?

Garments, Arts and Craft 0 2

Small Inventory Trading Business 0

Small Restaurant Owner 0

> than Rs. 10,000

General Stores (Family Business) 0

Rs. 2,000 Rs. 5,000

Implications:The prospect of micro entrepreneurship is easily depicted by the above table

9. What was the monthly income before starting the business?

< than Rs. 5,000

General Stores (Family

Small Restaurant Owner

Small Inventory Trading

Garments, Arts and Craft

Rs. 5,000 Rs. 10,000

General Stores (Family

Small Restaurant Owner

Small Inventory Trading

Garments, Arts and Craft