Home > Vol 2, No 5 (2015) > Soni

SCHOLEDGE INTERNATIONAL JOURNAL OF MANAGEMENT & DEVELOPMENT

VOL. 2, ISSUE 5 (MAY 2015) ISSN-2394-3378

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GROWING AND WANTING PERCEPTIONS TOWARDS ORGANISED BANKING SERVICES BY THE SMALL AND MEDIUM ENTERPRISES- AN INDIAN PERSPECTIVE

Dr. Kritika Soni (PhD, M.Phil, UGC-NET)

Research Guide, Puducherry, INDIA.

Madhav Sitaram

Research Scholar- Business Management

Pondicherry University

Puducherry, INDIA.

ABSTRACT

This Study was led among the MSMEs Entrepreneurs utilizing saving money benefits as a part of and around Tiruppur area. A few studies have been led on the entrance and absence of access to offices among MSMEs. No exploration has been directed in Tiruppur locale in particular, in regards to the variables adding to familiarity with MSMEs Entrepreneurs about different administrations offered by open, private and Industrial advancement banks and, in assessing their fulfillment level towards administrations offered by them. A definitive point of this study is to fill the current crevice in learning and go about as a going stone for future specialists who might want to direct studies on MSMEs. This study helps banks and MSMEs in comprehension the variables upsetting the entrance to administrations offered by banks and in doing as such, empower them to concoct ways and method for conquering those difficulties. This examination is taking into account the essential information, which was gathered among 230 MSME Entrepreneurs in Tiruppur district utilizing very much organized poll. This study uncovers that, respondents territory of living arrangement, sexual orientation, instructive capability, nature of business and turnover of respondents concern and so forth., are a portion of the central point adding to the level of mindfulness towards administrations offered by banks.

KEYWORDS:

MSME Entrepreneurs, keeping money administrations, mindfulness, fulfillment and so forth,

Presentation:

Smaller scale, Small and Medium Enterprises (MSMEs) have been acknowledged as the motor

of monetary development and for advancing impartial advancement. MSMEs constitute more than 90% of aggregate ventures in a large portion of the economies are credited with creating the most noteworthy of job development and record for a noteworthy offer of modern creation and fares. In India as well, the MSMEs assumes a crucial part in the general modern economy of the nation. MSMEs in India represent more than 80% of the aggregate number of mechanical endeavors and deliver more than 8000 quality included items. It is evaluated that regarding esteem, this division represents 45% of the assembling yield and 40% of the aggregate fare of the nation and utilizes more than 6 crore individuals.

INDIAN MSME � CURRENT SCENARIO

According to All India Census of Micro, Small and Medium Enterprises (MSME) 2013-14, there are 26.1 million, Micro, Small, and Medium Enterprises utilizing 60 million individuals. Out of the aggregate MSME units, 7.45 million units are in the assembling division containing 28.56% while 18.65 million units have a place with the administration area at an amazing rate of 71.44%.

They are the real inventors of vocation, making 1.13 million employments for each annum. As respects the commitment of MSME to the Indian economy, 40% of fares and 45% of modern yield are originating from this part. They need to strive to escape from this approaching situation. There must be a noteworthy change in approach on how they are working. MSMEs need to invest more exertion on innovative work (R&D) and on the approaches to utilize innovation at standard with the global measures.

ENTERPRISE DEVELOPMENT INSTITUTIONS

The Entrepreneurship Development Institute of India (EDI), an independent body and not-revenue driven establishment, set up in 1983, is supported by pinnacle budgetary organizations, specifically the IDBI Bank Ltd, IFCI Ltd, ICICI Ltd and State Bank of India (SBI). Legislature of Gujarat has promised twenty three sections of land of area. The Institute is enlisted under the Societies Registration Act 1860 and Public Trust Act 1950. To seek after its main goal further, EDI has helped set up twelve state-level elite business enterprise improvement focuses and foundations. A standout amongst the most fulfilling accomplishments, be that as it may, was taking business to a huge countless, schools, science and innovation establishments and administration schools in a few states by incorporating enterprise inputs in their curricula. In perspective of EDI's skill in Entrepreneurship, the University Grants Commission designated the EDI as a specialist office to create educational program on Entrepreneurship.

SUPPORTING BODIES OF MSMEs IN INDIA:

� National Small Industries Corporation (NSIC)

� National Entrepreneurship Development Institutes

� National Board for Micro, Small and Medium Enterprises (NBMSME)

� Development Commissioner (Micro, Small and Medium Enterprises)

� Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)

� District Industries Center (DIC)

GOVERNMENT SCHEMES FOR MSMEs:

� Credit Guarantee Fund Scheme for MSMEs (CGMSE)

� Credit Link Capital Subsidy Scheme for Technology up degree

� Mini Tool Room and Training Center Scheme

� National Award plan

� Market Development Assistance Scheme for MSMEs

RESEARCH METHODOLOGY

Examination is characterized as development from the known not obscure. It is a push to find something. As indicated by Clifford Woody "Exploration embody characterizing and reclassifying issues planning theory or proposed arrangements, gathering/ sorting out and assessing information making, finding & research conclusions and finally deliberately testing the conclusion to figure out if they fit the plan speculation.

EXAMINATION DESIGN

An exploration configuration is the plan of conditions for accumulations and examination of information in a way that intends to consolidate significance to the exploration reason with economy in system. Distinct Research Design was utilized by the analyst since it incorporates overviews and actuality discovering enquiries of distinctive kind. The real reason for distinct examination is depiction of situation, as it exists at present.

TEST DESIGN:

Out of one thousand and eighty one units which were working in the year of 2013-2014, the specialist has taken 230 units as test units for the present study and the information were gathered from the proprietors of these units. At first, the scientist got the rundown of aggregate MSMEs in Tiruppur region from District businesses Center (DIC), and the information identifying with the study were gotten from the proprietors of these two hundred and thirty units. Likelihood testing was connected to choose the specimen. Straightforward arbitrary examining has been adjusted for the accumulation of essential information from the respondents.

The study was kept to Tiruppur in Tamilnadu. The study was led between March 2014 to August 2014.

ROUTINES FOR DATA COLLECTION

an) Observation Method, b) Survey Method, c) Contact Methods

This data with respect to the organization, future prospects and so on� have been gathered from sites, cutting, from daily papers, magazines, diaries, books.

GOALS OF THE STUDY

� To discover the components influencing the mindfulness level of MSME Entrepreneurs towards keeping money administrations

� To discover the mindfulness level of MSME Entrepreneurs towards saving money administrations.

� To offer essential recommendations and conclusions.

TABLE NO.1: Ranking of banks based on services

Name of the Banks	Weighted Points	Rank
Public sector Banks	712	I
Private sector Banks	671	II
Industrial development Banks	516	III
Foreign Banks	401	IV
Source: computed and collected through questionnaire

INTERPRETATION: From the above weighted average analysis majority (712 points) of the respondents were satisfied with services provided by public sector banks.

TABLE NO.2: Chi-square test on Area of Residence and Level of Awareness

H0: There is no association between Area of Residence and Level of Awareness index

Area of Residence	Level of Awareness				Total
	Low		Moderate	High
Urban	No.	19	88	23	130
	%	(14.60)	(67.70)	(17.70)	(100.00)
Semi-urban	No.	16	47	10	73
	%	(21.90)	(64.40)	(13.70)	(100.00)
Rural	No.	04	21	02	27
	%	(14.80)	(77.80)	(7.40)	(100.00)
Total	39		156	35	230
Source: collected and computed through questionnaire

Df: 4

Table Value: 5%: 9.487
Calculated c²Value: 6.791

INTERPRETATION: As the calculated chi-square value 6.791 is less than the table value at five percent level, there does not exists any significant association between area of residence and level of banking awareness. Hence, the null hypothesis is accepted.

TABLE NO.2.1: ANOVA- Area of Residence and Level of Awareness Index

Area of Residence	Total		Awareness Index	Above Average	Below Average	Range
Urban	No.	130	70.68	66	64	52.38-83.33
	%	(56.52)		(50.77)	(49.23)
Semi-urban	No.	73	69.05	43	30	54.76-83.33
	%	(31.74)		(58.90)	(41.10)
Rural	No.	27	70.62	14	13	59.52-80.95
	%	(11.74)		(51.85)	(48.15)
Total	230		70.17	122	108	52.38-83.33
Source: collected and computed through questionnaire

Df: n₁ 2,n₂ 227

Table Value: 5%: 3.035

Calculated F Value: 1.550

INTERPRETATION: As calculated F value is less than the table value at five per cent level, there does not exists any significant mean difference among entrepreneurs classified on the basis of Area of Residence.

TABLE NO. 3: Chi-square test on Educational Qualification and Level of Awareness

H0: There is no association between Educational Qualification and level of awareness index

Education Qualification	Level of Banking Awareness				Total
	Low		Moderate	High
Illiterate	No.	04	23	03	30
	%	(13.30)	(76.70)	(10.00)	(100.00)
SSLC	No.	05	22	04	31
	%	(16.10)	(71.00)	(12.90)	(100.00)
HSC	No.	10	32	11	53
	%	(18.90)	(60.40)	(20.80)	(100.00)
Diploma	No.	05	16	03	24
	%	(20.80)	(66.70)	(12.50)	(100.00)
Under Graduation	No.	05	38	04	47
	%	(10.60)	(80.90)	(8.50)	(100.00)
Post-Graduation	No.	04	14	02	20
	%	(20.00)	(70.00)	(10.00)	(100.00)
Special course in Entrepreneurship	No.	01	02	03	06
	%	(16.70)	(33.30)	(50.00)	(100.00)
MBA in Entrepreneurship	No.	05	09	05	19
	%	(26.30)	(47.40)	(26.30)	(100.00)
Total	39		156	35	230
Source: collected and computed through questionnaire

Df: 14

Table Value 5%: 23.685

Calculated c²Value: 16.898

INTERPRETATION: As the calculated chi-square value is less than the table value at five percent level, there does not exists any significant association between education qualification and level of banking awareness. Hence, the null hypothesis is accepted.

TABLE NO.3.1: ANOVA- Educational Qualification and Level of Awareness Index

Educational qualification	Total		Awareness Index	Above Average	Below Average	Range
Illiterate	No.	30	70.71	16	14	59.52-80.95
	%	(13.04)		(53.33)	(46.67)
SSLC	No.	31	70.12	13	18	52.38-80.95
	%	(13.48)		(41.94)	(58.06)
HSC	No.	53	70.71	28	25	54.76-83.33
	%	(23.04)		(52.83)	(47.17)
Diploma	No.	24	69.35	14	10	59.52-80.95
	%	(10.43)		(58.33)	(41.67)
Under Graduation	No.	47	69.86	25	22	57.14-83.33
	%	(20.43)		(53.19)	(46.81)
Post-Graduation	No.	20	71.83	12	08	59.52-83.33
	%	(8.70)		(60.00)	(40.00)
Special course on Entrepreneurship	No.	06	69.29	02	04	61.90-78.57
	%	(2.61)		(33.33)	(66.67)
MBA in Entrepreneurship	No.	19	70.05	10	09	54.76-83.33
	%	(8.26)		(52.63)	(47.37)
Total	230		70.17	122	108	52.38-83.33
Source: collected and computed through questionnaire

Df: n₁ 7,n₂ 222

Table Value: 5%: 2.050

Calculated F Value: 0.250

INTERPRETATION: As calculated F value is less than the table value at five per cent level, there does not exists any significant mean difference among entrepreneurs classified on the basis of Education Qualification.

TABLE NO. 4: Chi-square test on Monthly Income and Level of Awareness

H0: There is no association between Monthly Income (personal) and level of awareness index

Monthly Income	Level of Banking Awareness				Total
	Low		Moderate	High
Up to Rs.11000	No.	03	13	10	26
	%	(11.50)	(50.00)	(38.50)	(100.00)
Rs.11001 � Rs.30000	No.	32	115	20	167
	%	(19.20)	(68.80)	(12.00)	(100.00)
Above Rs.30000	No.	04	28	05	37
	%	(10.80)	(75.70)	(13.50)	(100.00)
Total	39		156	35	230
Source: collected and computed through questionnaire

Df: 4

Table Value 5%: 9.487

Calculated c²Value: 13.789

INTERPRETATION: As the calculated chi-square value is greater than the table value at five percent level, there is significant association between consumer income and level of banking awareness. Hence, the null hypothesis is rejected.

TABLE NO.4.1: ANOVA- Monthly income (personal) and Level of Awareness Index

Monthly income	Total		Awareness Index	Above Average	Below Average	Range
Up to 11000	No.	26	72.16	12	14	59.52-83.33
	%	(11.30)		(46.15)	(53.85)
11001 -30000	No.	167	69.42	98	69	52.38-83.33
	%	(73.04)		(58.68)	(41.32)
Above 30000	No.	37	72.14	20	17	59.52-80.95
	%	(16.09)		(54.05)	(45.95)
Total	230		70.17	122	108	52.38-83.33
Source: collected and computed through questionnaire

Df: n₁ 2,n₂ 227

Table Value: 5%:3.035

Calculated F Value: 4.030

INTERPRETATION: As calculated F value is greater than the table value at five per cent level, there is exists any significant mean difference among entrepreneurs classified on the basis of monthly income.

TABLE NO. 5: Chi-square test on type of Entity and Level of Awareness

H0: There is no association between type of Entity and level of awareness index

Types of Entity	Level of Banking Awareness				Total
	Low		Moderate	High
Sole proprietorship	No.	29	111	20	160
	%	(18.10)	(69.40)	(12.50)	(100.00)
Partnership firm	No.	10	45	15	70
	%	(14.30)	(64.30)	(21.40)	(100.00)
Total		39	156	35	230
Source: collected and computed through questionnaire

Df: 2

Table Value 5%: 5.991

Calculated c²Value: 3.160

INTERPRETATION: As the calculated chi-square value is less than the table value at five percent level, there does not exists any significant association between type of entity and level of banking awareness. Hence, the null hypothesis is accepted.

TABLE NO.5.1: t test- Type of entity and Level of Awareness Index

Type of firm	Total		Awareness Index	Above Average	Below Average	Range
Sole proprietorship	No.	160	69.51	86	74	52.38-83.33
	%	(69.60)		(53.80)	(46.20)
Partnership firm	No.	70	71.67	42	28	59.52-83.33
	%	(30.40)		(60.00)	(40.00 )
Total	230		70.17	122	108	52.38-83.33
Source: collected and computed through questionnaire

Df: 228

Table Value: 5%: 1.970

Calculated�t� Value: 5.326

INTERPRETATION: As calculated�t� value is greater than the table value at five per cent level, there exists significant mean difference among entrepreneurs classified on the basis of type of the entity

TABLE NO.6: Chi-square test on Years of Establishment and Level of Awareness

H0: There is no association between Years of Establishment and Level of awareness

Years of establishment	Level of Banking Awareness				Total
	Low		Moderate	High
Up to 3 years	No.	07	32	06	45
	%	(15.60)	(71.10)	(13.30)	(100.00)
3 years � 8 years	No.	28	96	26	150
	%	(18.70)	(64.00)	(17.30)	(100.00)
Above 8 years	No.	04	28	03	35
	%	(11.40)	(80.00)	(08.60)	(100.00)
Total	39		156	35	230
Source: collected and computed through questionnaire

Df: 4

Table Value 5%: 9.487

Calculated c²Value: 3.664

INTERPRETATION: As the calculated chi-square value is less than the table value at five percent level, there does not exists any significant association between years of establishment and level of banking awareness. Hence, the null hypothesis is accepted.

TABLE NO.6.1: ANOVA- Age (years of establishment) and Level of Awareness Index

Years	Total		Awareness Index		Above Average		Below Average		Range
Up to 3 years	No.	45		69.74		29		16		59.52-83.33
	%	(19.57)			(64.44)		(35.56)
3.1years � 8 years	No.	150	70.19		79		71		54.76-83.33
	%	(65.22)			(52.67)		(47.33)
Above 8 years	No.	35	70.61		14		21		52.38-80.95
	%	(15.22)			(40.00)		(60.00)
Total	230		70.17		122		108		52.38-83.33
Source: collected and computed through questionnaire

Df.: n₁ 2,n₂ 227

Table Value: 5%: 3.035

Calculated F Value: 0.176

INTERPRETATION: As calculated F value is less than the table value at five per cent level, there does not exists any significant mean difference among entrepreneurs classified on the basis of years of experience.

TABLE NO. 7: Chi-square test on Nature of business and Level of Awareness

H0: There is no association between Nature of business and level of awareness index

Nature of business	Level of Banking Awareness				Total
	Low		Moderate	High
Manufacturing	No.	25	103	15	143
	%	(17.50)	(72.00)	(10.50)	(100.00)
Services	No.	14	53	20	87
	%	(16.10)	(60.90)	(23.00)	(100.00)
Total	39		156	35	230
Source: collected and computed through questionnaire

Df: 2

Table Value 5%:9.487

Calculated c²Value: 6.599

INTERPRETATION: As the calculated chi-square value is less than the table value at five percent level, there does not exists any significant association between type of establishment and level of banking awareness. Hence, the null hypothesis is accepted.

TABLE NO.7.1: t test-- Type of Establishment and Level of Awareness Index

Type of establishment	Total		Awareness Index	Above Average	Below Average	Range
Manufacturing	No.	143	69.61	87	56	52.38-83.33
	%	(62.20 )		( 60.80)	(39.20 )
Service	No.	87	71.07	46	41	59.52-83.33
	%	(37.80 )		( 52.90)	(47.10 )
Total	230		70.17	122	108	52.38-83.33
Source: collected and computed through questionnaire

Df.: 228

Table Value: 5%: 1.970

Calculated�t� Value: 2.675

INTERPRETATION: As calculated�t� value is greater than the table value at five per cent level, there is exists any significant mean difference among entrepreneurs classified on the basis of type of establishment

TABLE NO. 8: Chi-square test on EDP Association and Level of Awareness

H0: There is no association between area of residence and level of awareness index

Member in EDP Association	Level of Banking Awareness				Total
	Low		Moderate	High
Yes	No.	27	104	27	158
	%	(17.10)	(65.80)	(17.10)	(100.00)
No	No.	12	48	12	72
	%	(16.70)	(66.70)	(16.70)	(100.00)
Total	39		156	35	230
Source: collected and computed through questionnaire

Df: 2

Table Value 5%: 9.487

Calculated c²Value:0.171

INTERPRETATION: As calculated chi-square value is less than the table value at five percent level, there does not exists any significant association between EDP association and level of banking awareness. Hence, the null hypothesis is accepted.

TABLE NO.8.1: t test�Member in EDP Association and level of Awareness Index

Member in EDP Association	Total	Awareness Index	Above Average	Below Average	Range
Yes	158	74.21	86	72	52.38-83.33
	(68.70)		(54.40)	(45.60)
No	72	65.94	38	34	54.96-80.95
	(31.30)		(52.80)	(47.20)
Total	230	70.17	122	108	52.38-83.33
Source: collected and computed through questionnaire

Df: 228

Table Value: 5% 1.970

Calculated�t� Value: 0.775

INTERPRETATION: As calculated�t� value is less than the table value at five percent level, there is does not exists any significant mean difference among entrepreneurs classified on the basis of and level of banking awareness

CONCLUSION

Banks needs to start ventures to instruct the business people about new managing an account administrations/ new items

Bankers may need to direct distinctive projects like clients/business visionaries day or businessperson day, clients meet and clients Campaign through which they can straightforwardly interface with their clients and teach them about their new items and administrations.

Every bank in Tiruppur locale ought to shape a fitting "Client administration cell". The cell ought to work out a powerful system to clear clients' preventions to speak with

REFERENCES

I. Annual report of Ministry of Micro, Small and Medium Enterprise-[MSME] of India, (2010-11), Introduction: Background of MSMEs, Development Commissioner (MSME), Government of India. http://msme.gov.in/MSME Annual-Report-2010-11-English.pdf

II. Annual report of MSME of India, (2010-11), Growth and performance of MSMEs and 4th Census of MSMEs, Development Commissioner (MSME), Government of India. http://msme.gov.in/MSME Annual-Report-2010-11-English.pdf

III. Chandra, S., (2004), Small Industries Development Organization (SIDO) in Global perspective, Laghu Udyog Samachar: Journal of Small Scale Industries, 28-29(12-2), pp 249-253.

IV. Das, B., Shil, N.C., and Pramanik, A., (2007), Strengthening SMEs to make export competitive, Munich Personal RePec Archive. http://mpra.ub.uni-muenchen.de/7800/

V. Development Commissioner of MSME (2001), MSMEs in India: Performance, Ministry of MSME, Government of India, available at http://www.dcmsme.gov.in/ssiindia/performance.htm

VI. Development Commissioner of MSME., (2009), Micro, Small and Medium Enterprises in India: An Overview, Ministry of MSME, Government of India. http://dcmsme.gov.in/ssiindia/MSME_OVERVIEW09.pdf

VII. Little, I. M.D., Mazumdar, D., and Page, Jr., J.W., (1987), Small manufacturing enterprises: A comparative analysis of India and other economies, New York: Oxford University Press.

VIII. Mitra, R., and Pingali, V., (1999), Analysis of growth stages in small firms: A case study of automobile ancillaries in India, Journal of Small Business Management, 37(3), pp 62�76.

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