Reasons for starting the Micro, Small and Medium Enterprises by the Minority Entrepreneurs- A Study with reference to Dakshina Kannada and Udupi Districts in Karnataka

Abstract

In developing countries, only a few men with growth perspective would come forward for changing the stationary inertia and creating preconditions for industrialization, since they are motivated for higher achievements rather than financial gains (Papanek G F, 1962).  The industrialization in developing countries can be achieved through two forms of entrepreneurial activities.  One is entrepreneurship emerging from individual efforts and another is that emerging from collective efforts.  The first one may be called “individualistic entrepreneurship” which is a peculiar form of leadership where all the functions of management are concentrated in a single hand (Pieris R, 1969). Consequently, the entrepreneurs take all decisions in diverse fields of promotional and managerial activities. The second form of entrepreneurship is based on “techno-structure” (Galbraith J R, 1969).  It emerges from mechanization, division of labour, large scale production and production in anticipation of demand.  This form of entrepreneurship is performed by a group of experts, who are not generally owners of the enterprise.  The development of such a techno-structure would definitely accelerate the process of industrialization.  Social scientists have contended that entrepreneurship is the leverage which activates the rate of economic development.  Economists, over the years, have shifted the emphasis from the rate of capital formation to the growth of entrepreneurship as the major catalyst influencing the rate of economic growth. Minorities are under-represented in terms of self employment and small business ownership.  Minority entrepreneurship continues to be an important facet of the small business mainstream. Minority businesses have been the subject of growing interest from a variety of sources in recent years for a number of reasons.  Entrepreneurship in minority communities can also contribute to reducing social exclusion and to raising living standards in groups that can be often among the more disadvantaged in society. In the light of the above, the present study highlights the reasons for starting the Micro, Small and Medium Enterprises by the Minority Entrepreneurs in Dakshina Kannada and Udupi districts.