SCHOOL OF MANAGEMENT STUDIES

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY

BPL/MINORITIES
ENTREPRENEURS UPLIFTMENT
BY GOVT SCHEMES
Internship Report submitted to SBI in completion of the requirements of summer internship at

State Bank of India

NAME: AMY TITTY HARSHAN

PROJECTMENTOR: BASANTH V KUMAR

SMS

MANAGER

CUSAT, COCHIN

KALAVOOR

th

th

MAY 16 2013 TO JULY 15 2013.

CERTIFICATE OF COMPLETION

This is to certify that Smt Amy Titty Harshan, School Of Management Studies,
Cochin University of Science and Technology have completed the project work assigned by
Regional Business Office, State Bank of India, Alappuzha on the topic BPL /MINORITIES
ENTREPRENEURSHIP UPLIFTMENT AS PER GOVERNMENT SCHEMES FOR THE
th

PAST FIVE YEARS started on 16 May for a period

Of 10 weeks under the Guidance of Sri Basanth V Kumar, Manager Kalavoor Branch.

Basanth V Kumar
MANAGER
Date:

KALAVOOR BRANCH

ACKNOWLEDGEMENT
First of all I thank Almighty God for his mercy and love which kept me in good health and sound
mind and helped me to complete the project work successfully.
I extend my sincere gratitude to Prof (Dr) BHASI, Director, School Of Management Studies
for giving me an opportunity for doing the project.
I am very thankful to Dr. S RAJATHAKUMAR, Project guide, for the guidance and valuable
comments I received throughout my project. I have greatly benefited by his support and
encouragement.
I express my sincere gratitude to Mr.MURALI, HR MANAGER, RBO SBI, for giving me the
opportunity to undergo my training in such a prestigious company.
Also I express my heartfelt gratitude to Mr.Basanth V Kumar, Manager- SBI, for his
continuous advice and support during the course of the project.
I sincerely thank my parents, relatives and friends for their encouragement and support during
the study. Last but not the least I express my gratitude to everyone who directly and indirectly
helped me for completing the project in time and thereby making it a success.

Amy Titty Harshan

SMS, Cochin University.

TABLE OF CONTENTS

Sl. No

Particulars

Page No.

Introduction

Profile of the Student

Profile of the Organization

Nature of the Project

Objectives and responsibilities assigned

10

Frame Work of the study

11

Specific Objectives, Scope and Limitations.

16

Methodology and Analysis

18

Findings and suggestions

39

Bibliography

41

10

LIST OF CHARTS

Chart 1:Consistent employment generation

Chart 2: Consistent income generation
Chart 3: Ability to repay loan amount
Chart 4: Subsidy
Chart 5: Rate of interest
Chart 6: Additional financing
Chart 7: Standard of living of minorities
Chart 8: Shift from BPL to APL
Chart 9: Entrepreneur skills

LIST OF TABLES

Table 1: Consistent employment generation

Table 2: Consistent income generation
Table 3: Ability to repay loan amount
Table 4: Subsidy
Table 5: Rate of interest
Table 6: Additional financing
Table 7: Standard of living of minorities
Table 8: Shift from BPL to APL
Table 9: Correlation between employment generation and
income generation
Table 10: Correlation between income generation and ability to
repay loan amount
Table 11: Correlation between ability to repay loan amount and
interest rate
Table 12: Correlation between income generation and entrepreneur
skills

INTRODUCTION
Brief profile of the Student
AMY TITTY HARSHAN
KURISINKAL HOUSE,
PATHIRAPALLY P.O,
ALAPPUZHA, PIN 688525
Mobile: 9048419971, Mail ID:amytittyh@gmail.com
SBI Account no :31472261261

OBJECTIVE
Seeking for an oppurtunity to utilize my skills and abilities in areas of Banking, finance which
offers a professional growth exposure in association with organizational growth.

CURRENT STATUS
Pursuing MBA International Business at School of Management Studies, Cochin University of
Science and Technology, Cochin
EDUCATIONAL CREDENTIALS
B.Tech(2008-12) from Cochin University of Science and Technology in Electrical and
Electronics with 70% aggregate
Plus two from Mary Mount Public School in 2008 with 69% aggregate from AISSCE
Tenth in 2006 with 78% aggregate from Central Board of Secondary education.
COMPUTER KNOWLEDGE
MS Office ,C++,C,SQL
PERSONAL DETAILS
Date of Birth
Sex
Language proficiency

: 04-09-1990
: Female
: Malayalam, English, Hindi

Brief Profile of the Organization

Banking is an institution which deals with money and credit. It accepts deposits from the public
make funds available to those who need it and helps in the remittance of money from one place
to another.
The Companies Act, 1956 defines banking as the acceptance for the purpose of lending or
investment or deposits of money from the public, repayable on demand or otherwise and
withdrawal by cheque, draft or otherwise. In modern days, the term bank refers to an institution
having the following features deals with money, accepts deposits and advancing loans. Also
avails credit, has the ability to create credit, it is a commercial institution that aims at profit
making and is a unique financial institution that creates demand deposits which serve as a
medium of exchange and as a result the banks manage the payment system of the country.

State Bank of India (SBI)

State Bank of India (SBI) is a multinational banking and financial services company based in
India. It is a government owned corporation with its headquarters in Maharashtra. It the largest
commercial bank in India by assets, deposits, branches and employees. The Bank is actively
involved since 1973 in non-profit activity called Community Services Banking. All the branches
and administrative offices throughout the country sponsor and participate in large number of
welfare activities and social causes. Our business is more than banking because we touch the
lives of people anywhere in many ways. SBI provides a range of banking products through its
network of branches in India and overseas, including products aimed at non-resident
Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important
cities throughout the country. State Bank of India has 157 foreign offices in 32 countries across
the globe.

Nature of Project
This Project is all about the upliftment of minority entrepreneurs through various government
schemes. This project study is conducted on a survey basis and collects informations regarding
various developments of minorities through government schemes. The development or
upliftment of minorities can be measured using several variables like the employment
generation, income generation, standard of living among the minorities, shift from the below
poverty category to above poverty category, development of various entrepreneur skills like
decision making, problem solving ability, risk or crisis management, time management etc. The
government has financed the minorities to start business under various schemes SGSY (Swarna
Jayanthi Shahari Rozgar Yojana), SJSRY (Swarna Jayanthi Gram Swarozgar Yojana), PMRY
(Prime Ministers Rozgar Swarozgar Yojana), REMOT (Rejuvenation, Modernization and
Technology Upgradation of coir Industry Scheme).All these schemes were formulated so as to
ensure the development of the minorities both in economic and social terms which would
ultimately result in the upliftment of the nations economy. Hence the project has got significance
in the growth of the nation and is hence socially relevant.

Brief Objectives/ Responsibility assigned by Project Mentor

Project Mentor Sri K K Pothen directs to collect as much as data as possible for the
study from minorities.
Directed to conduct survey for data collection from the minorities.
To enquire about the nature of the business being conducted and the problems faced
by them.
To identify their requirements from the part of bank.
Inform the minorities about the irregularities and to pay the loan.

10

FRAME WORK OF STUDY

Theoretical frame work

Entrepreneurship is a very old concept according to which any one who runs business is called
an entrepreneur. The more precise meaning of entrepreneur is one who perceives a need and then
brings together manpower, material and capital required to meet that need. Entrepreneur is one
who understands the market dynamics and searches for change respond to it and exploit it as an
opportunity. The term entrepreneur has been defined in several ways. As per Oxford Dictionary
A person who sets up a business or businesses, taking on financial risks in the hope of profit.
As per International Encyclopedia entrepreneur is An individual who bears the risk of operating
a business in the face of uncertainty about the future conditions. According to Adam Smith
entrepreneur as an individual who forms an organization for commercial purpose. She/he is
proprietary capitalist, a supplier of capital and at the same time a manager who intervenes
between the labor and the consumer. Today, an entrepreneur is an innovator or developer who
recognizes and seizes opportunities; converts those opportunities into workable/marketable
ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive
marketplace to implement these ideas; and realizes the rewards from these efforts.
The entrepreneur is the aggressive catalyst for change in the world of business. Entrepreneurship
is a catalyst of business and economic development. The association of entrepreneurship and
economics has long been the accepted norm. In fact, until the 1950s the majority of definitions
and references to entrepreneurship had come from economists. Economic reforms of India since
1991 have transformed it into one of the fastest growing economies however; it still suffers from
high levels of poverty, illiteracy, and malnutrition.
India is a developing economy, the nature of unemployment, therefore, sharply differs from the
one that prevails in industrially advanced countries. Lord Keynes diagnosed unemployment in
advanced economies to be the result of a deficiency of effective demand. Thus Keynesian
remedies of unemployment concentrated on measures to keep the level of effective demand
sufficiently high so that the economic machine does not slacken the production of goods and
services. With the growth of Keynesian remedies, it has been possible to mitigate cyclical
11

unemployment. But more serious than cyclical unemployment or frictional unemployment in a

developing economy like India is the prevalence of chronic under- employment or disguised
unemployment in the rural sector and the existence of urban unemployment among the educated
classes. It would be worthwhile to emphasize here that unemployment in developing economies
like India is not the result of deficiency of effective demand in the Keynesian sense, but a
consequence of shortage of capital equipment of other complementary resources. And hence for
the same involvement of government was inevitable.
Entrepreneurship is not only an alternative to salaried employment, but also a better option for a
sustainable wealth creation for minorities. Labor market discrimination can reduce the incentive
for minorities to enter self-employments. Through entrepreneurship, minorities try to achieve a
higher social mobility. There are various individual benefits as minority-owned firms hire
minorities in high proportions. Due to the utilization of a peculiar co-ethnic recruitment network
by minorities enterprises, the economic growth accompanied by the creation of new jobs entails
first of all an increase of employment among ethnic minorities themselves. Socio-economic
benefits are also attained.
Entrepreneurial aspect of human action is the prime catalyst for economic growth.
Entrepreneurship provides a route out of poverty and an alternative to unemployment. Minority
businesses are an essential part of a society in which personal initiative is encouraged and in
which opportunity is within the reach all citizens. Significant increases in minority business
ownership are providing an engine for economic growth and helping more of other citizens
succeed. International benefits are entrepreneurial activities pursued by minorities pave the way
for domestic and international trade expansion. Regional benefit is that ethnic entrepreneurs have
the ability to prosper in their host areas by capturing local market niches. Ethnic minority
businesses can benefit from niche markets within concentrations of ethnic minority population,
such as in large urban areas. Moreover, because of a tendency for ethnic minorities to
concentrate in particular localities, the development of some local economies, and the standard
of living within them, may be heavily influenced by the nature and extent of ethnic minority
business development.
Mortality rate among the SSI units has been high, and more and more of bank credit gets sunk in
these units. But this is also true that SSI sector is the principal source of employment and has the
12

capacity to absorb a very large chunk of the labour force. But the informal sector is mainly selfemployed sector in which due to lack of capital, skill and technology, most of the employment
continues to be low level employment. There is a need to strengthen the resource base of this
sector both in terms of capital and technology and skill formation so that productive employment
yields a higher level of income. The government recognized the need and hence involved and
generated schemes which would help the minorities.
Traditional small industries include khadi and handloom, village industries, handicrafts,
sericulture, coir, etc. Modern small-scale industries produce wide range of goods from
comparatively simple items to sophisticated products such as television sets; electronics control
system, various engineering products, particularly as ancillaries to the large industries. The
traditional small industries are highly labour-intensive, while the modem small-scale units make
use of highly sophisticated machinery and equipment.
One special characteristic of traditional village industries is that they cannot provide full time
employment to workers, but instead can provide only subsidiary or part-term employment to
agricultural labourers and artisans. Among traditional village industries, handicrafts possess the
highest labour productivity; besides, handicrafts make a significant contribution to earning
foreign exchange for the country. Under these circumstances, active encouragement of
handicrafts is a must. On the other hand, traditional village and small industries are largely
carried on by labourers and artisans living below the poverty line, while modem small industries
can provide a good source of livelihood. Hence, if with an expansion of employment, the number
of persons living below the poverty line has also to be reduced, then a rapid and much larger
expansion of the modem small sector will have to be planned. Handloom sector contributes
about 30 per cent of the total textile production in the country. Government has laid down
policies to promote handloom to sustain employment in rural areas and to improve the quality of
life for handloom weavers.
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 Independence in spite of stiff
competition from the large sector and not so-encouraging support from the Government. The
13

Government has been following a policy of reservation of items for exclusive development in the
small-scale sector.
During 1994-2012, the SSI sector recorded an annual average growth rate of production by
8.8%, of employment by 4.5 per cent and of exports by 16.1 %. This is a creditable achievement.
Obviously, the growth rate of the small-scale sector has been faster both in terms of output and
employment.
The rapid growth of the small-scale industries has a great relevance in our national economic
policies. The growth of the small sector improves the production of the non-durable consumer
goods of mass consumption. As such, it acts as an anti-inflationary force. If a big push is given to
the small sector, it can become a stabilizing factor in a capital-scarce economy like India by
providing a higher output capital ratio as well as a higher employment-capital ratio.
Government has taken various measures inorder to help entrepreneurs. Various schemes like
SGSY, PMRY, SJSRY, REMOT have been laid down by the government to as to help in the
upliftment of minorities. Government continues to support first generation entrepreneur through
training and will support their efforts. Inadequate access to credit-both short term and long termremains a perennial problem facing the small-scale sector Government have already announced
increase in the investment limits in plant and machinery of small scale industries, ancillary units
and export-oriented units. To increase the flow of credit, the Government has started setting up
specialized branches of banks exclusively meant for providing credit to SSIs.
Minority businesses are becoming the subject of growing interest because business ownership is
the main alternative to wage/salary employment for making a living and wealth for them. We
have seen that the impact the minority entrepreneurs and their ventures have on themselves and
on society at large, both in quantitative as well as qualitative terms, is so significant. The
importance of minority entrepreneurship should be seen from the individual, social, economic,
regional and international stand points. Regarding the future of minority entrepreneurship, we
can positively note that the economic growth and institutional factors such as governance can
motivate minorities and immigrants to strive towards new directions. It is predicted that the
fastest growing population segment in many industrialized nations will be minorities.

14

Accordingly, strategic business policies and an infrastructure have to be placed that fosters an
environment where minority entrepreneurs can realize their hopes and dreams of business
ownership and prosperity. Like in all business development programmes, assistance extended to
promote ethnic entrepreneurship needs to embrace the aspects like awareness raising, creating a
conducive policy environment, building up institutions and developing appropriate services.
There is no doubt that striving to increase business ownership among minorities will ensure a
competitive nation and a prosperous future for minority businesses. It may ultimately lead to the
inclusive growth which is the ultimate aim of the economic growth of a country.

15

STATEMENT OF PROBLEM
Minority businesses are an essential part of a society in which personal initiative is encouraged
and in which opportunity is within the reach all citizens. Significant increases in minority
business ownership are providing an engine for economic growth and helping more of other
citizens succeed. And for the same government has taken several policies regarding the
upliftment of the minorities.
In this background an attempt is made to understand the upliftment of the minority entrepreneurs
through carious government schemes.
Specific objectives of the project
The main objectives of the research were

To study the upliftment of the minority entrepreneurs through the government schemes
impact.

To study the governments role in providing consistent employment generation and

income generation to the minorities.

To study the impact of government schemes in the economic and social upliftment of the
minority entrepreneurs.

16

Scope of study

The study would help to understand how government has helped the minorities develop.

The study will be helpful for the government

upliftment of minorities.

The study will be beneficial to those who want to know the various financial support
provided by the bank to minorities.

The study will also be helpful for the future research students to know more about
government and its role in the development of minorities.

to introduce more schemes for the

Limitation of the Study

It was impossible to meet all the minority entrepreneurs due to time constraints.

Researcher has to face the hesitance of the respondent for revealing the reality
The findings in the report are entirely based on the answers given by respondent. Any
error or bias in the response may affect results.

Period of the Study

5 years (2007-1012)

17

METHODOLOGY AND ANALYSIS

RESEARCH DESIGN

The study conducted is descriptive and analytical in nature

SAMPLING TECHNIQUE

Convenience Sampling was employed

SAMPLE SIZE

Sample size is 50

SOURCES OF DATA:
PRIMARY DATA

Questionnaire method is adopted for getting reliable information

SECONDARY DATA
The secondary data was collected through documents given by the bank and from various
websites and books
TOOLS FOR DATA COLLECTION
Questionnaire was used for data collection as it has the following advantages:

It will help to remove the suspicion regarding the nature of the enquiry or
meaning of any questions or any terms used as the researcher is personally
present

Response and cooperation for the collection of correct information could be facilitated

Information would be more reliable due to persona contact.

DATA COLLECTION
Data collection lasted for two months. The focus of the research was on the minorities
who availed the loan from SBI under various government policies. During data collection
1
8

questionnaire was distributed among various people belonging to minorities running their
own business who have availed loans from SBI. Since questionnaire was used the

1
8

researcher was able togive more clarification over the subject to the respondent and was
able to get more valid responses. The study was done in two phases
Phase 1: A study was conducted to know the business and the services provided by the
minority entrepreneurs with the help of secondary data. Secondary data was collected
through the personal interviews with the minorities and collected the information
regarding the services provided. Phase 2: Formulation of Primary data .Primary data was
gathered to find out the income generation, also to identify the factors which influence
the income generation. Questionnaires used for data collection used closed ended
questions. Several variables were considered for the study, like employment generation,
income generation, ability to repay, interest, entrepreneur skills. The study was focused to
find out the relationship between the variables selected for the study. The collected data
was analyzed to find the relationship between various variables.

19

ANALYSIS AND INTERPRETATION

Consistent employment generation

The figure below shows the consistency in employment generation among the minorities as per
the government schemes.

Consistent employment generation

To a large
extend
12
%

Ye
s
10
%

No
60%

To a
certain
extend
18
%

FIG 1
Consistent

employment Frequency

generation

Percentage

Cumulative

(%)

Frequency

Yes

10

To a large extend

12

11

To a certain extend

18

20

No

30

60

30

TABLE 1
Interpretation
In the above analysis 5(10 percent) of the minorities have consistent employment while 30 (60
percent) of the minorities do not have consistent employment and hence no income would be
generated. Also 6(12 percent) of the minorities have consistent employment to a large extend
while 9(18 percent) of the minorities have consistent job to a certain extend. Since the majority

of the minorities are not employed consistently income generated would not be sufficient to pay
back the loan amount and also wealth accumulation is not possible.

Consistent Income generation

The figure below shows the consistency in income generation among the minorities as
per the government schemes.

Consistent Income Generation

Moderatel
y
8
%

Not at all
60%

Slightl
y
32
%

FIG 2
Consistent

Income Frequency

Percentage (%)

Cumulative
Frequency

Generation
Moderately

Slightly

16

32

20

Not at all

30

60

50

TABLE 2

Interpretation
In the above analysis, 4(8 percent) of the minorities state that they were able to
moderately generate consistent income from the business and 16 (32 percent) of the
minorities were at least slightly able to generate consistent income from the business and
30(60 percent) of the minorities claim that they were not at all able to generate consistent

income from the business which may be due to shift in market trends and operational
inefficiencies. This mean that the result of the analysis made would be biased to this
category of respondents. Majority of the minorities are not able to generate consistent
income from the business.

Ability to repay loan amount

The figure below shows the ability of the minority entrepreneurs to repay the loan amount
availed from the bank as per government schemes.

Ability to repay loan amount

To a
moderate
extend
8%

Not at all
62%

To some
extend
30
%

FIG 3
Ability to repay

Frequency

Percentage (%)

Cumulative
frequency

To moderate extend

To some extend

15

30

19

Not at all

31

62

50

TABLE 3
Interpretation
In the above analysis, 31(62 percent) of the minorities state that they are not at all able to
repay the loan availed and 15 (30 percent) of the minorities are able to repay the amount
at least to a very small extend and only 4(8 percent) of the minorities are moderately able
to repay though with certain irregularities. The most highlighted factor is that not even a
single minority could maintain their account without irregularities. As such the result of

the analysis made would be biased to this category of respondents. Half of the minorities
are not able to repay back the amount which was due to some factors like high interest
rate, operational inefficiencies, declining market, dysfunctional management, low sales
etc.

Subsidy

The figure below shows if the subsidy given was a reason for the initiation of business.

Subsidy-A reason for initiation of

business
No
2
%

To a certain
extend
8
%

To a
large
exten
d
14
%
Yes
76
%

FIG 4
Subsidy a reason for business Frequency

Percentage (%)

Cumulative
Frequency

initiation
Yes

38

76

38

To a large extend

14

45

To a certain extend

49

No

50

TABLE 4
Interpretation
In the above analysis, 38(76 percent) of the minorities state that the subsidy given by the
government was the main reason for the initiation of business while 7(14 percent) of the
minorities agree that subsidy to a large extend was one among the reasons for the
initiation of business.4(8 percent) of minorities did consider the subsidy while the

initiation of business and only 1(2 percent) of the minority stated that subsidy was not the
reason for the initiation of business but it was their self realization of employment. Thus
from the analysis it is evident that most of the minority think about starting the business as
they aware about the subsidy and various government policies and depend a lot on them.

Rate of interest

The figure below shows the satisfactory level of the minority entrepreneurs with regards
to the rate of interest.

Rate of
interest
Satisfie
d
10
%

Not
satisfied
90
%

FIG 5
Rate of interest

Frequency

Percentage (%)

Cumulative
frequency

Satisfied

10

Not satisfied

45

90

50

TABLE 5
Interpretation
In the above analysis, 45(90 percent) of the minorities are not satisfied with the rate of
interest and only 5(10 percent) of the minorities are satisfied with the interest rates. Thus
it can interpreted that the rates provide now is not affordable by the minorities to ensure
proper payback of the loan amount. Thus it s recommended that minorities interest rates
should be either fully cut off or the rates charged should be minimum so as to help them

develop.

Additional financing

The figure below shows the data regarding the additional financing taken by the minority
entrepreneurs for the successful running of the business.

Additional Financing
no
20
%

ye
s
80
%

FIG 6
Additional financing

Frequency

Percentage (%)

Cumulative frequency

Yes

40

80

40

No

10

20

50

TABLE 6
Interpretation
In the above analysis, 40(80 percent) of the minorities have taken additional financing for
the running of the business in addition to the loan amount availed from the bank. This
further increased their liabilities. As such accumulation of assets or wealth accumulation
become more difficult. Only 10(20 percent) of the minorities depend on the availed loan
amount only and dont go for additional financing.

Standard of living of minorities

The figure below shows the improvement in standard of living among the minorities after
the government schemes have been implemented.

Standard of living of minorities

no
change
2
%

improve
d
98
%

FIG 7
Standard of living

Frequency

Percentage

Cumulative frequency

Improved

49

98%

49

No change

2%

50

TABLE 7
Interpretation
In the above analysis, 49(98 percent) of the minorities state that their standard of living
have improved after the commencement of business as per government schemes and only
1 (2 percent) of the minorities claim their standard of living have not changed. This mean
that the result of the analysis made would be biased to this category of respondents.
Majority of the minorities have an up gradation in their standard of living.

Shift from BPL to APL

The figure below shows the shift of minorities from BPL to APL after the government
schemes have been implemented.

Shift from BPL to APL

Yes
2
%

No
98
%

FIG 8
Shift from BPL to APL

Frequency

Percentage (%)

Cumulative
frequency

Yes

98

No

49

49

TABLE 8
Interpretation
In the above analysis, 49(98 percent) of the minorities state that though their standard of living
have improved they were not able to shift from the category Below Poverty Line to Above
Poverty Line even after the commencement of business as per government schemes and only 1

(2 percent) of the minorities claim that they were able to overcome the BPL category. Thus a
wide majority of the minorities is yet to overcome the BPL category.
Entrepreneur skills
The figure shows the improvement in various entrepreneur skills imparted to the minorities after
the government schemes have been implemented.
35
30
25
20
15
10
5
0

FIG 9
Based on the analysis it is understood that most of the minorities were able to develop their
entrepreneurial skills better relative to their economic developments. The level of confidence
found among the minorities was considerably high but they seem to be slightly backwards with
regard to other entrepreneurial skills. Out of the entrepreneur skills the most important of all is
the financial management which was found to be very low among the minorities which could be
one of the major reasons for their slow pace of development inspite of the support from the part
of government. Another important highlight is that these minorities were very poor in general
awareness which has improved to certain extend with this entrepreneur upliftment. Yet there are
a lot of improvements to be seen in the coming years of development so as to have a better
economy and a better nation.

Correlation Analysis: Relationships between the Variables

The most common measure of "correlation" or "predictability" is Pearsons coefficient of
correlation, although there are certainly many others. Pearsons r, as it is often symbolized, can
have a value anywhere between -1 and 1. The larger r, ignoring sign, the stronger the association
between the two variables and the more accurately you can predict one variable from knowledge
of the other variable. At its extreme, a correlation of 1 or -1 means that the two variables are
perfectly correlated, meaning that you can predict the values of one variable from the values of
the other variable with perfect accuracy. The sign of the correlation implies the "direction" of the
association. A positive correlation means that relatively high scores on one variable are paired
with relatively high scores on the other variable, and low scores are paired with relatively low
scores. On the other hand, a negative correlation means that relatively high scores on one
variable are paired with relatively low scores on the other variable.

33

Correlation between employment generation and income generation

Employment

Income

generation

generation

Yes

Moderately

Slightly

16

No

30

30

Pearsons coefficient

.94

TABLE 9
Interpretation
As shown in table above, the correlation matrix indicates that income generation was positively
and highly correlated with employment generation. The coefficient of correlation in this research
between employment generation and income generation is 0.94.This means that there is high
correlation between these two variables, since it is positively correlated increase in level of
employment generation will increase the income generation of the minorities. That is 94 percent
of the income generation depends on the employment generation.

Correlation between Income generation and Ability to repay

Income

Ability

generation

repay

Yes

Moderately

Slightly

16

15

No

30

31

to Pearsons coefficient

.97

TABLE 10
Interpretation
As shown in table above, the correlation matrix indicates that income generation was positively
and highly correlated with ability of the minorities to repay back the amount. The coefficient of
correlation in this research between income generation and ability to repay is 0.97.This means
that there is high correlation between these two variables, since it is positively correlated
increase in level of income will increase the ability to repay the loan amount by the minorities.
That is 97 percent of the minorities ability to repay the loan amount depends on the income
generation of the minorities.

Correlation between ability to repay loan and interest rate

Ability

to Interest

repay

rate(satisfaction)

Yes

Moderately

Slightly

15

No

31

45

Pearsons coefficient

.7

TABLE 11
Interpretation
As shown in table above, the correlation matrix indicates that the ability of the minorities to
repay the loan amount was negatively and highly correlated with the interest rate. The coefficient
of correlation in this research between the ability of the minorities to repay the loan amount and
interest rate is 0.7.This means that there is high correlation between these two variables, since it
is negatively correlated decrease in rate of interest will increase the ability of the minorities to
pay back the loan amount. That is 70 percent of the minorities ability to repay depends on the
rate of interest. The rate of interest is too high for them to afford and hence they find it difficult
to repay.

Correlation between entrepreneur skills and income generation

Entrepreneur

Income

skills

generation

Yes

Moderately

10

Slightly

16

No

34

30

Pearsons coefficient

.83

TABLE 12
Interpretation
As shown in table above, the correlation matrix indicates that the entrepreneur skills positively
and highly correlated with the income generation. The coefficient of correlation in this research
between the entrepreneur skills and income generation is 0.83.This means that there is high
correlation between these two variables, since it is positively correlated

increase in the

entrepreneur skills will generate more income. That is 83 percent of the income generation is
explainable by the entrepreneur skills developed by the minorities.

FINDINGS
The study shows that the micro enterprises set up under various government policies
are not seen as generating the expected number of employment opportunities.
From the data collected it is observed that the income of the households has not
been improved since the majorities were not able to generate consistent income.
Majority of the minorities find themselves unable to repay the loan amount with
the income from their business.

The beneficiaries of various government schemes are confronted with various

problems and difficulties in setting up and carrying on the business which have
prompted them to get additional financing which further increased their liabilities.

Standard of living of the minorities has improved but still none of the minorities
were found capable enough to shift from Below Poverty Line to Above Poverty Line.
The study revealed that the subsidy provided by the government was the main
reason behind the initiation of the business by the minorities.
Majority of the minorities claims to be charged with high rate of interest which
is difficult for them to afford and hence majority fail in repaying the loan
amount.
The study shows that minorities have not developed economically relative to
other entrepreneur skills.
The research article is to present relationship between the independent variables employment
generation, entrepreneur skills, interest rate and preference on the dependent variables income
generation, ability to repay through SBI in Alleppey the respondents perspective. Questionnaire
contained two parts where first part with personal details and second part contained closed ended
questions. Data collected through the survey questionnaire were analyzed using SPSS. Data
Collected from the minorities was analyzed and found that majority of the entrepreneurs in
minorities are yet far away from upliftment. There is significant correlation between the
independent variables and dependent variables.

SUGGESTIONS & RECOMMENDATIONS

It is suggested that the subsidy given by the government should be increased so that
the minorities would be able to generate more income out of the business.
The interest rate should be brought to the minimum so as to ensure proper repayment
of loan by the minorities.
Minorities should be given training so as to develop their entrepreneur skills as they
have a direct correlation with income generation.

Government should take initiative in placing orders and purchasing products or

services from minorities so as to ensure consistent employment and hence consistent
income generation for them.

Government should provide various equipments to the minorities for the running of
the business and help them remain advanced with technology as well.

39

CONCLUSION
The study conducted on the topic Minorities/BPL entrepreneurs upliftment through
government schemes was to measure the upliftment of the minorities both in social terms and
economical terms. Several variables were considered for the study like employment generation,
income generation, repayment ability, interest rates and entrepreneur skills. The variables were
analyzed with statistical tool correlation and analysis shows that there is positive as well as
negative relation with the variables. Based on the result it is important for the government to
revise the policies so as to ensure the upliftment of the minorities. Change in various variables
considered will have a substantial improvement in the upliftment of the minorities. The revision
of the policies should be based on these variables considered. From the results we can see that
there is a correlation between the employment generation and income generation, income
generation and ability to repay, ability to repay and interest, entrepreneur skills and income
generation. The strength of the data can be increased by increasing the sample size and also
collecting data from over different groups. A positive significant relationship was found between
all the variables taken under study. Employment generation will result in income generation
which inturn would effect the ability of the minorities to repay the loan amount which inturn
depends on the rate of interest and eventually all theses would affect the income of households,
standard of living, shifting from the below poverty line to above poverty line. These findings
suggest that the government should lay down policies giving emphasis to the minorities abilities
and needs and to help them improve their standard of living which would ultimately result in the
development of the Indian economy as such.

40

References:
1 . Pierce, Joseph. (1947), Negro business and business education
2. Bates, Timothy M. (1987), "Self-employed minorities: Traits and trends"
3. Rettab, B. (2001), "The Emergence of Ethnic Entrepreneurship: A Conceptual
Framework"
4. Moore, Robert L.(1983), "Employer Discrimination: Evidence form Selfemployed Workers,"
Review of Economics and Statistics
5. Coate, Stephen and Tennyson, Sharon. (1992), "Labor Market Discrimination,
Imperfect Information and Self-Employment."
6. www.sbi.com
7. www.wikipedia.com
8. www.scribd.com
9. www.rbi.com

41