Analysis of dimensions of entrepreneurial behaviour of members of coconut producer companies

Abstract

Producer companies are legal establishments formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. The concept of producer companies was introduced in India in 2002 by incorporating a new part IX A in to the companies’ act 1956 based on the recommendations of an expert committee led by Y. K Alag. Kerala accounts for major share in area and production of coconut in the country. Coconut Development Board (CDB) has a launched a scheme for mobilizing coconut farmers in to a three tier system of primary producer societies, federation of primary coconut producer societies and coconut producer companies. In this background a study on “Analysis of dimensions of entrepreneurial behaviour of members of coconut producer companies” was carried out to analyse the dimensions of entrepreneurial behaviour of members of coconut producer companies, factors influencing their entrepreneurial behaviour and the constraints faced by the members of coconut producer companies. The study was carried out in two companies which belong to Palakkad and Kannur districts. Palakkad Coconut Producer Company Ltd. (PCPCL) and Tejaswini Coconut Producer Company Ltd. (TCPCL) which are the first two coconut producer companies in Kerala and accredited as A plus category by CDB were selected for the study. A total of 120 respondents from the two companies were selected in equal proportion randomly. Analysis of the socio economic characteristics of members of the two selected coconut producer companies revealed that majority of the respondents belonged to middle age group category of 36-50 years. 40.00 per cent of the respondents in both the companies had high school level of education. 68.33 per cent of the respondents from PCPCL and 56.67 per cent of the respondents from TCPCL were engaged in farming. Around 55.00 per cent of the members of PCPCL had low level of annual income whereas, 60.00 per cent of the respondents from TCPCL had medium level of annual income. Members of both the companies had medium level of social participation, economic motivation, level of aspiration, extension orientation, attitude towards self-employment and mass media contact. 56.67 per cent of the members of PCPCL and 58.33 per cent of the members of TCPCL were more self-reliant. Members of both the companies had medium level of knowledge about value added products. Among the dimensions of entrepreneurial behaviour, members of both the coconut producer companies had medium level of innovativeness, achievement motivation, risk taking ability, profit orientation, entrepreneurial orientation and management orientation. Further it was also observed that leadership ability of members of both the companies were low. Among the listed 9 dimensions, composite index for market perception was ranked the highest (93.27). This indicated that the members gave much importance to the current market trend, marketing channel and market information. The overall entrepreneurial behavior of the respondents was found to be medium. Study on factors affecting entrepreneurial behavior of members of PCPCL and TCPCL showed that only economic motivation had a positive relationship with entrepreneurial behavior of the members. For PCPCL risk taking ability, decision making ability, market perception and management orientation were the important dimensions contributing to entrepreneurial behaviour. In the case of TCPCL achievement motivation, risk taking ability and management orientation were the important dimensions. Insufficient subsidy amount (financial constraint), low price for produce in the market (marketing constraint), high cost of inputs (production and labour constraint), lack of information about recommendations (information problem), multiple duties (personal constraint) were the major problems perceived by the members of PCPCL. In the case of TCPCL, the major constraints faced by the members were difficulty in securing working capital (financial constraint), low price for produce in the market (marketing constraint), high cost of inputs (production and labour constraint), lack of information about recommendations (information problem) and multiple duties (personal constraint). Strong branding of products, support from Government for financial investment and working capital, periodic management training for members of coconut producer companies and strengthening the three tier system of coconut producer co-operatives are some of the strategic options developed from the study.