KERALA AND ENTREPRENEURSHIP

MOHAMMED FAZIL PGDM10 ROLL NO:-31

Contents

1. 2. 3. 4. 5. 6.

INTRODUCTION NATURE OF ENTREPRENEURSHIP IN KERALA FACTORS THAT MOTIVATED KERALA BASED ENTREPRENEURS REASONS FOR LACK OF ENTREPRENEURSHIP IN KERALA AREAS OF ENTREPRENEURSHIP SOME SUCCESSFUL ENTREPRENEURS IN KERALA

Introduction

Legitimacy for entrepreneurship as a career option is very low among the social circles of Kerala, though small entrepreneurship development has become a crucial part of predominant moral code of governance in all countries. Due to low level legitimacy, young people, with entrepreneurial talents opt for other career opportunities or migrate to distant places in search of greener pastures .This phenomenon can be verified by observing the performance of entrepreneurs in the industrial front of Kerala. The quality of entrepreneurial stock of a society can be accessed on the basis of the economic growth it has achieved. The role of entrepreneurship in economic development can best be put as an economy is the effect for which entrepreneurship is the cause. Keralas statistics on industrial entrepreneurship displays a very interesting picture. The States contribution to nations industrial output is 2.19 per cent, but to that of population is 3.43 per cent. In contrast to the national trend, the informal manufacturing sector in Kerala has recorded a relatively high growth in the post liberalization period. The growth of small scale industrial units and employment in this sector was also promising during this period. However, industrial performance in Kerala during this period was not favorable in terms of output growth. Significant growth in employment generation under industrial sector is not represented by corresponding increase in industrial output. Remarkable growth of fixed capital is recorded in Keralas industrial sector, but it has not influenced the output growth during the period. Nominal and real wage rates are low in Kerala since 1980s. Man days lost due to industrial disputes and labour militancy registered a declining tendency. Yet, studies on investment proposals reveal that Kerala is an unattractive destination for both domestic and foreign investors. Thus the major hurdle for the States industrial backwardness is not increase in cost of production or labour militancy, but poor quality of entrepreneurship

Nature of entrepreneurship in Kerala

Kerala has no traditional entrepreneur class. The trade and commerce of this state were originally in the heads of outsides like the Gujarats and Thamilians who migrated to Kerala for this purpose. Al those Christians and Muslims entered the field later either of them have developed themselves fully into an entrepreneurial class. The eldest Hindus who originally almost entire land in the state, were looked upon by them as interior occupation. Hence no entrepreneurial class could develop from among them. Keralas Societies the landlord a place of promi nence. Hence even t he t rading cl asses were more i nt erested i n acquires loaded property. It is this which prompt them to travel distinct place in search o f business accuses have become characterize features of Gujarati speaking communit y thought Gujarati consi st s of peopl e of diff erent religi on, t he preference for business as a vocation is all preventive and cats through all social and religion narriers among them. Even traditional anti business caste of Brahmins and Kshartriya has imbined the business culture and desire to start their own units

Factors that motivated Kerala based Entrepreneurs

To be independent To be creative To be self-employed To use technical knowledge To use business experience To use Govt. support Success story of others Profit margin Family orientation

 To join elite circle of business men

Some of the reasons for lack of entrepreneurship in Kerala are due to:
Preoccupation with redistribution Aversion for taking risks and preference for secure employment Lack of confidence to innovate Poor self-esteem of entrepreneurs Lack of business culture built on mutual trust Unsympathetic and unsupportive bureaucracy and the labour laws and institutions that are heavily biased against the entrepreneur

According to JMI Sait, former Chief Technical Advisor, UNIDO, the factors inhibiting entrepreneurship in Kerala are:
culture of the society Availability of right skill sets Infrastructure Networks and government policy and administrative support Subsidy consciousness High targets versus instinctive decisions Mistrust of labour, peers, colleagues Misguidance relatives, friends, retired executives and government officers Fear of bankers Taxmen Pollution controllers

 Sanitary inspectors Politicians etc.inadequate knowledge of laws rights and liabilities and slow legal system

The employment scenario in Kerala is as follows:.

The following can be identified specially for Kerala:

1. Tourism Ayurveda/ Health/Eco/Coastal/Backwater 2. Food processing 3. Information and Communication Technology 4. Biotechnology 5. Nanotechnology 6. IT enabled services 7. Media management 8. Coir and Handloom sector

9. Rubber sector 10. Fisheries sector 11. Farm and Estates

Specific areas for Kerala can be:

1. Food sector, Food Processing, Food Analysis, Packaging, Cashew processing, Bakery and confectionery. 2. Fisheries, Fish Hatchery, Processing units, Aquarium, Sea Food sector 3. Coir and Handloom sector, Rubber based industries 4. Plant tissue culture, Nursery, Horticulture, Floriculture and Farm management. 5. Diagnostic testing labs Biochemical tests, water testing, Environmental testing and medical laboratory testing. 6. Information Technology Enabled Services, Software Development, Molecular Biology Data analysis, computer aided drug design and clinical trials data management.

Some successful entrepreneurs in Kerala

M. A. Yousuf Ali :-

M. A. Yousuf Ali is

a Non-resident

Indian businessman hailing from Nattika in Thrissur district of Kerala. He is the Managing Director of Abu Dhabi-headquartered EMKE Group of Companies which owns the LuLu Hypermarket chain in Middle East. Yousuf Ali is ranked as the second richest Indian ($1.75 billion) in the Gulf region by Arabian Business.com

Beena Kannan :-

Beena Kannan is the Managing Director and Lead Designer at the reputed textile major Seematti Silks. She is an able and enthusiastic industrialist who has elevated the image of her firm to great levels in the silk and textile industry of Kerala. Known for her immense dedication, guts and talent, she is a popular public figure as well. Joy Alukkas :-

Joy Alukkas is an Indian entrepreneur from Thrissur City in Kerala state of India. He is the Managing Director of Joyalukkas India Limited and Chairman of Joyalukkas Jewellery LLC, Dubai, a gold and diamond retail jewellery chain

Kochouseph Chittilappilly :-

Kochouseph Chittilappilly is an Indian businessman best known as the Managing Director of V-Guard Industries Ltd and a chain of amusement parks called Wonderla, previously known as Veegaland. He did his schooling at the parish school in Parappur, Thrissur and attended Christ College, Irinjalakuda. He was awarded a Masters degree in Physics fromSt. Thomas College, Thrissur in 1970.

Kalyan Group

The group was started in 1909 by T S Kalyanramaiyer, an entrepreuner who set up a small textile shop in Thrissur City. In 1992, Kalyan started the first jewellery

showroom under the name of Kalyan Jewellers. In the same year Kalyan Sarees was established at Thrissur