Professional Documents
Culture Documents
5.1 INTRODUCTION
Over the last few years, venture capital in Tamil Nadu has evolved its own
set of business processes. The foremost of these practices is the manner in which
the venture firms in Tamil Nadu choose their investments. Like their counterparts
in the US and Europe, venture capitalists here look for investments with
characteristics of high risk and high returns. The choice of investment is the
224
function of the venture capitalists policy with regards to the preferred industries
and the stage of the investee company. Yet the exact choice of investment varies
from one venture capital fund to another.
225
criteria of due diligence. In Tamil Nadu, the strike rate of proposals finding favour
with venture capitalists is indicated to be less than 10%.89
compared with their level of satisfaction with the functions of the venture capital
companies in Tamil Nadu. The opinion of the entrepreneurs on the services of the
venture capital companies may vary from person to person.
The level of
89
5.2
This section furnishes a detailed report on the analysis of the socioeconomic background of the entrepreneurs in Tamil Nadu. It includes the factors,
gender, age, marital status, educational qualification, occupation, annual income,
nature of family, family size and the like.
5.2.1 Gender-wise distribution
Gender
Number of
Respondents
Percentage
1.
Male
98
65.33
2.
Female
52
34.67
Total
150
100.00
227
Since the age of respondents is one of the important segments in their life,
it is included in the present study. The age of the respondents is the completed
age at the time of collecting data. In the present study, the age of the respondents
is classified into below 21 years, 21 to 30 years, 31 to 40 years, 41 to 50 years and
above 50 years. The age-wise classification of the respondents is presented in
Table 5.2.
TABLE 5.2
AGE-WISE CLASSIFICATION
Sl.
No.
Number of
Respondents
Percentage
1.
Below 31
32
21.33
2.
31 40
33
22.00
3.
41 50
35
23.33
4.
51 60
28
18.67
5.
Above 60
22
14.67
Total
150
100.00
228
respondents who are below 31 years constitute 21.33 %. It is followed by the age
group of 51-60 years and above 60 years.
marital
status
is
classified
into
married,
unmarried
and
Marital Status
Number of
Respondents
Percentage
1.
Married
95
63.34
2.
Unmarried
40
26.66
3.
Widowers/Divorced
15
10.00
150
100.00
Total
Source: Primary data.
229
analysis reveals that the married respondents have availed the facilities of the
venture capital.
5.2.4 Educational Status
The level of education represents the level of formal education completed
by the respondents at the time of collecting the data. Since the level of education
provides awareness on venture capital, the highly educated respondents may
compare the services offered by the venture capital companies with those of
others. The level of education may increase the level of expectation and also
determine the level of satisfaction with the functioning of venture capital
companies. In the present study, the level of education is classified to SSLC / +2,
Diploma, Graduate, Post graduate and Professional/technical . Table 5.4 presents
details about the educational status of the respondents.
TABLE 5.4
EDUCATIONAL STATUS OF THE RESPONDENTS
Sl.
No.
Educational Qualification
Number of
Respondents
Percentage
1.
SSLC / +2
29
19.33
2.
Diploma
30
20.00
3.
Graduate
34
22.67
4.
Post Graduate
32
21.33
5.
Professional / Technical
25
16.67
150
100.00
Total
Source: Primary data.
230
Table 5.4 illustrates the level of education among the respondents. The
important levels of education among them are graduation and post-graduation
which constitute 22.67 % and 21.33 % respectively. It is followed by diploma,
SSLC/+2 and professional/technical education which constitute 20.00 %, 19.33 %
and 16.67 % respectively. The analysis reveals that the respondents with graduate
education have used the venture capital.
231
TABLE 5.5
OCCUPATION-WISE DISTRIBUTION
Sl.
No.
Occupation
Number of
Respondents
Percentage
1.
Agricultural family
52
34.67
2.
Business family
47
31.33
3.
Government employment
family
38
25.33
4.
13
8.67
150
100.00
Total
Source: Primary data.
232
233
TABLE 5.6
INCOME-WISE DISTRIBUTION OF THE RESPONDENTS
Sl.
Monthly Income
No.
(in Rs.)
Number of
Respondents
Percentage
1.
Below 10,000
19
12.67
2.
10,000 20,000
40
26.67
3.
20,000 30,000
36
24.00
4.
30,000 40,000
35
23.33
5.
Above 40,000
20
13.33
150
100.00
Total
Source: Primary data.
It is inferred from the above table that the important monthly income
groups among the respondents in the present study are Rs. 10,000 to 20,000 and
Rs. 20,000 to 30,000, which constitute 26.67 and 24.00% to the total, respectively.
The respondents who belong to the monthly income group of Rs.30, 000 to 40,000
constitute 23.33%. It is followed by the monthly income group of above Rs.
40,000 and below Rs.10, 000 which constitute 13.33 and 12.67 %, respectively.
234
The respondents
belonging to joint family and nuclear family systems in the present study are
shown in Table 5.7.
TABLE 5.7
CLASSIFICATION OF THE RESPONDENTS ACCORDING TO THEIR
NATURE OF FAMILY
Sl.
No.
Nature of Family
Number of
Respondents
Percentage
43
28.67
1.
Joint family
2.
Nuclear family
107
71.33
Total
150
100.00
235
The family size represents the number of family members living along with
the respondents in their respective families. The family size is one of the
important factors that determine the standard of living of the respondents. The
family size in the present study is confined to below 3, 3 to 6, above 6 members.
The distribution of the respondents according to their family size is presented in
Table 5.8.
TABLE 5.8
SIZE OF THE FAMILY-WISE DISTRIBUTION OF THE RESPONDENTS
Sl.
Category
No.
Number of Respondents
Percentage
1.
Below 3
37
24.67
2.
36
77
51.33
3.
Above 6
36
24.00
150
100.00
Total
Source: Primary data.
It is found from Table 5.8 that the majority of the respondents households
have the family size of 3-6 members. It constitutes 51.33 % and it was followed
by below 3 members and above 6 members respectively which constitute 24.67 %
and 24.00 % respectively.
236
5.2.9 Religion
Religion
Number of Respondents
Percentage
120
80.00
1.
Hindu
2.
Muslim
6.00
3.
Christian
21
14.00
150
100.00
Total
From Table 5.9, it has been observed that nearly 120 (80.00 %) of the
members belong to Hinduism, 21 (14.00 %) belong to Christianity and 9 (6.00 %)
of them belong to Islam. Thus, it is clearly understood that the majority of the
members are Hindus in the study area.
5.2.10 Caste
237
TABLE 5.10
CASTE-WISE DISTRIBUTION OF RESPONDENTS
Sl.
No.
Caste
Number of Respondents
Percentage
1.
Forward Class
35
23.33
2.
Backward Class
55
36.67
3.
48
32.00
4.
Scheduled Caste/Tribe
12
8.00
150
100.00
Total
238
32%
Table 5.10 reveals that majority of the members belong to the Backward
Class which constitutes 55(36.67%) followed by Most Backward Class, Forward
Class and Scheduled Caste/Scheduled Tribe which constitutes 32.00%, 23.33%
and 8 %) respectively. It is concluded that the majority of the respondents belong
to BC among the venture capital respondents.
The respondents are classified into two categories such as who are residing
in rural area and urban area. Table 5.11 portrays the location-wise classification
of the respondents.
239
TABLE 5.11
LOCATION-WISE CLASSIFICATION OF THE RESPONDENTS
Sl.
Location
No.
Percentage
1.
Rural
52
34.67
2.
Urban
98
65.33
Total
150
100.00
It is understood from Table 5.11 that out of 150 sample respondents, the
majority of them (65.33%) fall under the category of urban area and the remaining
34.67 % fall under the category of rural area.
240
TABLE 5.12
EARNING MEMBERS IN THE FAMILY
Sl.No.
Earning Members
No. of Respondents
Percentage
1.
One
55
36.67
2.
Two
64
42.67
3.
Three
20
13.33
4.
Four
4.00
5.
Above four
3.33
Total
150
Source: Primary data.
Note: Figures in brackets denote percentages to total.
100.00
From Table 5.12, it has been inferred that families with two earning
members constitute 64 (42.67 %) followed by 55 (36.67 %) with only one earning
member in the family and 20 (13.33 %) with three members in the family. The
families with four and above four earning members together constitute only 11
(7.33 %) of the total.
241
TABLE 5.13
DISTRIBUTION OF THE RESPONDENTS ACCORDING TO THEIR
OTHER SOURCES OF INCOME
Sl.
No.
Other Sources
Number of Respondents
Percentage
1.
Agriculture
27
18.00
2.
Business
39
26.00
3.
House Property
50
33.33
4.
Investment
34
26.67
150
100.00
Total
Source: Primary data.
Table 5.13 shows that the majority of the respondents income from other
source is house property. They constitute 33.33 % and they were followed by
respondents whose income from other sources
Below Rs.20,000,
242
No.
(in Rs.)
Number of
Respondents
Percentage
1.
Below 20,000
10
6.67
2.
20,000 40,000
49
32.67
3.
40,000 60,000
31
20.67
4.
60,000 80,000
26
17.33
5.
80,000 1,00,000
14
9.33
5.
Above 1,00,000
20
13.33
150
100.00
Total
Source: Primary data.
It is shown from Table 5.14 that the important total family income groups
among the entrepreneurs in the present study are Rs. 20,000 to 40,000 and Rs.
40,000 to 60,000, which constitute 32.67 and 20.67 % to the total, respectively. It
is followed by the income group such as Rs.60,000 to 80,000, above Rs.1,00,000,
Rs.80,000 to 1,00,000 and below Rs.20,000 which constitute 17.33 %, 13.33 %,
9.33 % and 6.67 % respectively.
243
Share in
Percentage
Number of Respondents
Percentage
1.
Up to 25
42
28.00
2.
25 50
36
24.00
3.
50 75
32
21.33
4.
75 100
40
26.67
150
100.00
Total
Source: Primary data.
244
Category
Number of
Respondents
Percentage
1.
Hereditary
82
54.67
2.
First Generation
68
45.33
150
100.00
Total
Source: Primary data.
It is understood from the above table that out of the 150 entrepreneurs,
82 (54.67%) belong to the category of hereditary and 68 (45.33%) of them are
coming under the category of first generation.
5.3
This section presents the details about the profile of venture capital
undertakings in Tamil Nadu. It includes number of years of doing business,
245
Number of
Respondents
Percentage
1.
Less than 5
16
10.67
2.
5 10
19
12.67
3.
10 -15
67
44.67
4.
15- 20
28
18.66
5.
More than 20
20
13.33
150
100.00
Total
Source: Primary data.
Category
No.
Number of
Respondents
Percentage
1.
Micro
30
20.00
2.
Small
65
43.33
3.
Medium
39
26.00
4.
Big or Large
16
10.67
150
100.00
Total
Source: Primary data.
247
It is portrayed from Table 5.18 that out of 150 venture capitalists, 65 (43.33
%) of them come under the category of small enterprises followed by medium,
micro and big enterprises which constitute 26.00 %, 20.00 % and 10.67 %
respectively. It is concluded that the majority of the venture capitalists in the
study area belong to the category of small enterprises.
The stages of venture capital undertakings are classified into six categories,
namely, seed stage, start up stage, early growth stage, expansion stage, matured
stage and turn around stage. The distribution of respondents according to the
stages of development of undertaking is presented in Table 5.19.
248
TABLE 5.19
STAGES OF DEVELOPMENT OF UNDERTAKINGS
Sl.
Reasons
No.
Number of
Respondents
Percentage
1.
Seed stage
19
12.67
2.
Start up stage
22
14.67
3.
29
19.33
4.
Expansion stage
32
21.33
5.
Matured stage
26
17.33
6.
22
14.67
150
100.00
Total
Source: Primary data.
249
Type of Undertakings
Number of
Respondents
Percentage
1.
Manufacturing
21
14.00
2.
IT & ITES
14
9.33
3.
30
20.00
4.
18
12.00
5.
27
18.00
6.
16
10.67
7.
10
6.67
8.
Energy
4.00
9.
Telecom
5.33
150
100.00
Total
Source: Primary data.
250
It is inferred from Table 4.20 that out of the 150 respondents, 30(20.00%)
come under the category of health care and life sciences industries and it is
followed by media and entertainment, manufacturing, banking and financial
services, engineering and communication, IT & ITES, shipping and logistics,
telecom and energy which constitute 18.00%, 14.00%, 12.00%, 10.67%, 9.33%,
6.67%, 5.33% and 4.00% respectively.
251
TABLE 5.21
TYPE OF ORGANISATION
Sl.
No.
Type of Organization
Number of
Respondents
Percentage
1.
Proprietary Concern
46
30.67
2.
Partnership / LLP
34
22.67
3.
18
12.00
4.
Self-Help Group
4.67
5.
40
26.66
6.
3.33
Total
150
100.00
252
It is observed from Table 5.21 that out of the 150 respondents, 46 (30.67
%) come under the category of proprietary concern and it is followed by private
limited company, partnership/LLP, co-operative society/trust, self-help group and
public limited company which constitute 26.66%, 22.67%, 12.00%, 4.67% and
3.33% respectively.
UNDERTAKINGS
The analysis on factors influencing the respondents starting the venture capital
undertaking is essential to frame suitable approach by the venture capital fund
companies. The present study confined these variables to Independence, Family
background, Technical skill /Background, New idea with business potential, The
Prospect of challenges, Long cherished dream to become a respondent, Market
opportunity, Incentives for investment, Risk bearing capacity and
Passion for
innovation.
In order to find out the significant relationship among venture capital fund
companies regarding the factors influencing starting the venture capital
undertakings, t-test was applied. The importance of the variables that influence
253
starting the venture capital undertaking has been exhibited with the help of its
mean score and the computed results of t-test in Table 5.22.
TABLE 5.22
FACTORS INFLUENCING STARTING THE VENTURE CAPITAL
UNDERTAKINGS
Sl.
No.
Factors
IFCI
Entreprene
urs
tValues
1.
Independence
3.8036
2.5023
3.2361*
2.
Family background
3.8027
3.8617
3.3011*
3.
Technical skill/background
3.3142
3.6086
0.4041
4.
3.6082
3.1942
0.6897
5.
3.2141
3.4041
0.4896
6.
2.6073
3.8186
3.4081*
7.
Market opportunity
3.6244
3.0814
0.5169
8.
2.8132
2.9097
0.6233
9.
3.6143
3.5342
0.6861
10.
3.7182
3.7241
3.1142*
254
3.7182
3.7241
3.1142
3.6143
3.5342
0.6861
2.8132
Market oppurtunity
2.9097
3.6244
0.6233
3.0814
0.5169
2.6073
3.8186
ICICI entreprenuers
3.4081
3.2141
IFCI entreprenuers
3.4041
0.4896
3.6082
t-values
3.1942
0.6897
Technical skill/background
3.3142
3.6086
0.4041
Family background
3.8027
3.8617
3.3011
Independence
3.8036
2.5023
3.2361
10
12
The important variables that influence the respondents starting the venture
capital undertakings through ICICI are independence, family background and
passion for innovation since the mean scores are 3.8036, 3.8027 and 3.7182
respectively. Among the respondents belonging to the IFCI, these are family
background, long cherished dream to become a respondent and passion for
innovation since the respective mean scores are 3.8186, 3.8617 and 3.7241.
Regarding the perception on the factors influencing the respondents to start
venture capital undertaking, the significant difference among the two group of
255
5.4
In order to find out the significant relationship among venture capital fund
companies regarding the factors influencing to attract the venture capital fund,
t-test was applied. The importance of the variables that influence to attract the
venture capital fund has been exhibited with the help of its mean score and the
computed results of t-test in Table 5.23.
256
TABLE 5.23
FACTORS INFLUENCING TO ATTRACT THE VENTURE CAPITAL
FUND
Sl.
No.
Variables
1.
tValues
ICICI
Entrepreneurs
IFCI
Entrepreneurs
2.8589
3.2162
1.3329
2.
Experience and
competency of the
entrepreneur
2.0685
3.8625
3.3917*
3.
3.3084
3.7874
1.5061
4.
Technical Skills
2.7173
3.7078
1.1211
5.
Marketing Strategy
3.7976
3.0811
3.2101*
6.
Differentiation with
competition
3.8681
3.4503
1.8917
7.
2.8019
3.7611
3.4612*
8.
2.5124
3.3676
3.3038*
9.
3.8181
2.9691
3.0917*
10.
Collaboration and
teamwork
3.6026
2.5728
1.8118
11.
2.3381
3.8186
3.4086*
12.
Risk profile
3.7172
2.3417
3.1917*
13.
Tax benefits
2.8081
3.8086
1.4506
14.
Track record
2.5153
3.7171
1.9234
15.
2.4118
3.4611
3.2029*
2.4118
2.5153
Track record
3.7171
2.8081
Tax benefits
3.7172
Risk profile
Integrity and behaviour
3.4611
2.3381
3.8086
2.3417
3.8186
3.6026
3.8181
2.5728
2.9691
3.2029
1.9234
1.4506
3.1917
3.4086
1.8118
3.0917
2.5124
3.3678
3.3038
2.8019
3.7611
3.4612
3.8681
3.4503
1.8917
Marketing strategy
3.7976
Technical skills
2.7173
3.7078
1.1211
3.3084
3.7874
1.5061
2.0685
3.0811
3.8625
2.8589
0%
20%
40%
ICICI
entrepreneurs
IFCI
entrepreneurs
t-values
3.2101
3.3917
3.2162
1.3329
60%
80% 100%
It is inferred from Table 5.23 that the important variables that influence the
respondents to attract the venture capital fund through ICICI are differentiation
with competition, innovation and creativity and marketing strategy since the mean
scores are 3.8681, 3.8181 and 3.7976 respectively. Among the respondents
belonging to the IFCI, these are experience and competency of the respondent,
integrity and ethical behaviour and tax benefit mean scores are 3.8625, 3.8186 and
258
5.5
2.
Valuation of business
3.
4.
5.
6.
Information rights
7.
8.
9.
Claire Selthiz et.al. Research Methods in Social Relations, Methuen & Co. Ltd.,
London, 1965, p.366.
259
10.
Monitoring fees
11.
Exit rights
12.
Exclusivity
13.
Confidentiality
14.
Fees
15.
Condition precedent
To secure the total score for every positive statement scores are allotted in
the order by 5 for highly satisfied; 4 for satisfied; 3 for indifferent; 2 for
dissatisfied and 1 for highly dissatisfied. Similarly for every negative
statement scores are allotted in the order of 1 for highly satisfied, 2 for
satisfied 3 for indifferent 4 for dissatisfied and 5 for highly dissatisfied. All
positive statements bear odd numbers and negative statements even numbers in
the 15 statements. This enabled the respondents to record their responses with
proper understanding of the settlements.
The level of satisfaction has been classified into three categories, namely
low level, medium level and high level for analytical purpose. The score
value (X+SD) and the score value (X- SD) have been classified as high level
satisfaction and low level satisfaction respectively. The score values between
(X + SD) and (X-SD) have been classified as medium level satisfaction, X and
260
SD are the arithmetic mean and standard deviation91 calculated from the score
values of 150 entrepreneurs.
Where,
O observed frequency
E Expected frequency
Row total x Column total
E=
Grand total
c = Number of columns in a contingency table
r = Number of rows in a contingency table.
91
Gupta, S.P., Statistical Methods, Sultan Chand & Sons, New Delhi, 1991,
pp.E8-28.
92
Grewal, P.S., Methods of Statistical Analysis, Sterling Publishers Private
Limited, New Delhi, p.1093.
261
Table 5.24 reveals the level of satisfaction of the 150 sample respondents.
TABLE 5.24
LEVEL OF SATISFACTION OF THE RESPONDENTS
Sl.
No.
Level of Satisfaction
Number of
Respondents
Percentage
1.
High
39
26.00
2.
Medium
79
52.67
3.
Low
32
21.33
100
100.00
Total
Source: Primary data.
From Table 5.24, it is clear that out of the 150 respondents 39 (26.00 %)
fall under the high level satisfaction group, 79 (52.67 %) come under the category
of medium level satisfaction and 32 (21.33 %) fall under the low level satisfaction
group
5.5.1. Gender and Level of Satisfaction
Gender is an important factor in determining the level of satisfaction of
respondents. The gender of the respondents has been identified as the first
variable. Table 5.25 shows the gender of the respondents and their level of
satisfaction.
262
TABLE 5.25
GENDER OF THE RESPONDENTS AND THE LEVEL OF
SATISFACTION
Level of Satisfaction
Sl.
Gender
No.
1.
2.
Male
Female
Total
Total
High
Medium
Low
26
55
17
98
(66.67)
(69.62)
(53.13)
(65.33)
13
24
15
52
(33.33)
(30.38)
(46.87)
(34.67)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Calculated value
2.09755
Table value at 5 %
5.991
Degrees of freedom
Inference
Insignificant
It is evident from the results that the calculated value is less than the table
value. Hence the null hypothesis is accepted. Therefore, it could be inferred that
the gender does not influence the level of satisfaction of respondents.
5.5.2 Age and Level of Satisfaction
264
TABLE 5.26
AGE OF THE RESPONDENTS AND LEVEL OF SATISFACTION
Sl.
No.
1.
2.
3.
4.
5.
Level of satisfaction
Age (in years)
Below 30
31 40
41 50
51 60
Above 60
Total
Total
High
Medium
Low
10
16
32
(25.64)
(20.25)
(18.75)
(21.33)
22
33
(20.51)
(27.85)
(9.38)
(22.00)
12
14
35
(23.08)
(15.19)
(43.75)
(23.33)
16
28
(12.82)
(20.25)
(21.88)
(18.67)
13
22
(17.95)
(16.46)
(6.25)
(14.67)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
265
and 40 years followed by 16 (20.25 %) each in the age group of below 30 years
and 51 and 60 years, 13 (16.46 %) in the age group of above 60 years and 12
(15.19 %) in the age group between 41 and 50 years. Further it also shows that out
of the 32 respondents with low level of satisfaction, 14(43.75%) are in the age
group of between 41and 50 years followed by 7(21.88%) in the age group of
between 51 and 60 years, 6(18.75%) in the age group of below 30 years, 3(9.38
%) in the age group of between 31 and 40 years and 2(6.25%) in the age group of
above 60 years, respectively.
In order to test the relationship between age and level of satisfaction of the
respondents, the following null hypothesis was formulated. Age is independent
from the level of satisfaction of the respondents. The chi-square test was applied
to examine the null hypothesis and the computed results are given below:
Calculated value
14.7618
Table value at 5 %
15.507
Degrees of freedom
Inference
Insignificant
It is evident from the chi-square that the calculated value is less than the
table value at the 5 % level. Hence the null hypothesis is accepted. Therefore, it
could be inferred that the age does not influence the level of satisfaction of
respondents towards the performance of venture capital fund.
266
Marital Status
Level of satisfaction
High
Medium
Low
Total
1.
Married
25
(64.10)
56
(70.89)
14
(43.75)
95
(63.34)
2.
Unmarried
9
(23.08)
14
(17.72)
17
(53.12)
40
(26.66)
3.
Widowers/Divorced
5
(12.82)
9
(11.39)
1
(3.13)
15
(10.00)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Total
Source: Primary data.
It is revealed from Table 5.27 that out of the 39 respondents with high level
of satisfaction, 25(64.10%) are married followed by 9(23.08%) who are
unmarried and 5(12.82%) who are widowers/divorced. Out of 79 respondents with
medium level of satisfaction, 56(70.89%) are married followed by 14(17.72%)
who are unmarried and 9(11.39%) who are widowers/divorced. Further it also
267
shows that out of the 32 respondents with low level of satisfaction 14(43.75%) are
unmarried followed by 17(53.12%) who are married and only one (3.13%) is
widower/divorced, respectively.
With a view to test the following null hypothesis namely the level of
satisfaction is independent of the marital status the Chi-square test was applied
and the results are shown below:
Calculated value
13.93845
9.488
Degrees of freedom
Inference
Significant
The chi-square results reveal that the calculated value is greater than the
Table value at the 5% level. Hence the null hypothesis is rejected. It could be
inferred that there exists a relationship between marital status and level of
satisfaction of respondents.
268
Educational
Qualification
Level of satisfaction
High
Medium
Low
Total
1.
SSLC / +2
5
(12.82)
13
(16.46)
11
(34.38)
29
(19.33)
2.
Diploma
5
(12.82)
15
(18.99)
10
(31.25)
30
(20.00)
3.
Graduate
7
(17.95)
23
(29.11)
4
(12.50)
34
(22.67)
4.
Post Graduate
9
(23.08)
19
(24.05)
4
(12.50)
32
(21.33)
5.
Professional /
Technical
13
(33.33)
9
(11.39)
3
(9.37)
25
(16.67)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Total
Source: Primary data.
From Table 5.28, it is seen that out of 39 respondents with high level of
satisfaction, 13(33.33%) have professional/technical qualification followed by 9
(23.08%) who have post graduate level education, 7(17.95%) who have graduate
level education, 5(12.82%) each have SSLC/+2 and diploma level education. Out
269
21.99795
Table value at 5 %
15.507
Degrees of freedom
Inference
Significant
The calculated value of the Chi-square is greater than the table value at the
5 % level. Hence the null hypothesis is rejected. Therefore, it could be inferred
270
that the educational qualification does influence the level of satisfaction of the
respondents
Level of satisfaction
Family size
Total
High
Medium
Low
1.
Below 3
9
(23.08)
10
(12.66)
18
(56.25)
37
(24.67)
2.
36
24
(61.54)
44
(55.70)
9
(28.13)
77
(51.33)
3.
Above 6
6
(15.38)
25
(31.64)
5
(15.62)
36
(24.00)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Total
Source: Primary data.
From Table 5.29, it is inferred that out of the 39 respondents with high
level of satisfaction 24(61.24%) have families of between 36 members followed
271
by 9(23.08%) who have families below 3 members and 6(15.38%) who have
families of above 6 members. Out of the 39 respondents with medium level of
satisfaction 44(55.70%) they have families of between 3-6 members followed by
25(31.64%) who have families of size above 6 members and 10(12.66%) who
have families of below 3 members. Further it also shows that, out of the 32
respondents with low level of satisfaction, 18(56.25%) have families of below 3
members followed by 9(28.13%) who have families of between 3 and 5 members
and 10(15.62%) who have families of above 6 members, respectively.
In order to test the relationship between the family size and the level of
satisfaction the following null hypothesis was formulated. There exists no
relationship between the family size and the level of satisfaction. The above null
hypothesis was tested by applying the Chi-square test. The computed results are
given below:
Calculated value
26.10630
9.488
Degrees of freedom
Inference
Significant
It is evident from the Chi-square results that the calculated value is greater
than the table value at the 5 % level. Hence the null hypothesis is rejected. There
272
exists a relationship between the family size and the level of satisfaction of the
respondents.
Sl.
No.
Level of satisfaction
Nature of Family
Total
High
Medium
Low
1.
Joint
9
(23.08)
16
(20.25)
18
(56.25)
43
(28.67)
2.
Nuclear
30
(76.92)
63
(79.75)
14
(43.80)
107
(71.33)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Total
Source: Primary data.
From Table 5.30, it is clear that out of the 39 respondents with high level
of satisfaction, 9 (23.08 %) come under the category of joint family and 30 (76.92
%) come under the category of nuclear family. Out of the 79 respondents with
273
In order to test the relationship between the nature of family and the level
of satisfaction the following null hypothesis was formulated. There exists no
relationship between the nature of the family and the level of satisfaction. The
above null hypothesis was tested by applying the Chi-square test. The computed
results are given below:
Calculated value
15.7661
5.991
Degrees of freedom
Inference
Significant
It is evident from the Chi-square results that the calculated value is greater
than the table value at the 5 % level. Hence the null hypothesis is rejected. There
exists a relationship between the nature of the family and the level of satisfaction
of respondents.
274
Level of satisfaction
Occupation
Total
High
Medium
Low
29
(36.71)
27
(34.18)
16
(20.25)
14
(43.75)
10
(31.25)
5
(15.63)
52
(34.67)
47
(31.33)
38
(25.33)
1.
Agricultural family
2.
Business family
3.
Government
employment family
9
(23.08)
10
(25.64)
17
(43.59)
4.
Private
employment family
3
(7.69)
7
(8.86)
3
(9.37)
13
(8.67)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Total
Source: Primary Data.
From Table 5.31, it is seen that out of the 39 respondents with high level of
satisfaction, 9 (23.08 %) belong to agricultural family, 10 (25.64 %) are business
family, 17 (43.59 %) are government employment family and 3(7.69 %) are
275
16.02465
12.592
Degrees of freedom
Inference
Significant
It has been inferred from the results that the calculated value is greater than
the Table value. Hence the null hypothesis is rejected. Therefore, it could be
inferred that the occupation influences the level of satisfaction of the respondents.
276
Monthly Income
(in Rs.)
Level of Satisfaction
Total
High
Medium
Low
1.
Below 10,000
8
(20.52)
9
(11.39)
2
(6.25)
19
(12.67)
2.
10,000 20,000
10
(25.64)
28
(35.44)
2
(6.25)
40
(26.67)
3.
20,000 30,000
18
(46.15)
12
(15.19)
6
(18.75)
36
(24.00)
4.
30,000 40,000
2
(5.13)
19
(24.06)
14
(43.75)
35
(23.33)
5.
Above 40,000
1
(2.56)
11
(13.92)
8
(25.00)
20
(13.33)
39
79
32
150
(100.00)
(100.00)
(100.00)
(100.00)
Total
Source: Primary data.
It is observed from Table 5.32 that out of the 39 respondents with high
level of satisfaction 18 (46.15 %) have monthly income between Rs.20,000
30,000 followed by 10 (24.64 %) who have monthly income between Rs.10,000
20,000, 8 (20.52 %) them who have monthly income below Rs.10,000, 2 (5.13 %)
277
who have monthly income between Rs.30,000 to 40,000 and only one (2.56 %)
who have monthly income of above Rs.40,000. Out of the 79 respondents with
medium level of satisfaction, 28 (35.44 %) who have monthly income of between
Rs.10,000 20,000 followed by 19 (24.06 %) who have monthly income between
Rs.30,000 to 40,000, 12 (15.19 %) who have annual income between Rs.20,000
30,000, 11 (13.92 %) who have monthly income above Rs.40,000 and 9 (11.39 %)
who have monthly income below Rs.10,000. Further it also shows that, out of 32
respondents with low level of satisfaction, 14 (43.75 %) have monthly income
between Rs.30,00040,000 followed by 8 (25.00 %) who have monthly income
above Rs.40,000, 6 (18.75 %) who have monthly income between Rs.20,000
30,000, 2 (6.25 %) each who have monthly income between Rs.10,000- 20,000
and below Rs.10,000 respectively.
In order to test the relationship between the monthly income and the level
of satisfaction the following null hypothesis was formulated. The level of
satisfaction is independent of the income. The chi-square test was applied to
examine the null hypothesis and the computed results are given below:
Calculated value
40.6267
Table value at 5 %
15.507
Degrees of freedom
Inference
Significant
278
It is evident from the results that the calculated value is greater than the
table values. Hence the null hypothesis is rejected and it is inferred that the annual
income does influence the level of satisfaction.
UNDERTAKINGS
TOWARDS
PERFORMANCE
OF
In the present study, the principal factor analysis method with the
Orthogonal Varimax Rotation is used to identify the factors influencing the
satisfaction of entrepreneurs towards the performance of venture capital fund
companies.
The principal component factor analysis method was applied to the inter
correlation matrix of the fifteen dimensions of the satisfaction scale and the results
were rotated using the Kaiser Varimax criteria. The data validity for factor
279
analysis has been examined with the help of the Kaiser-Meyer-Olkin (KMO)
measures of sampling adequacy and the Bartlett test of Sphericity. The KMO
measure of 0.5803 at the zero level significance of chi-square satisfies the validity
of data for factor analysis. The factor analysis results in seven factors. The factor
loading of the variables in seven factors, its communality, Eigen value and
percentage of variable explained are shown in table 5.33.
280
TABLE 5.33
ROTATED FACTOR MATRIX FOR SATISFACTION OF
RESPONDENTS
Sl.
No.
F1
F2
F3
F4
F5
F6
F7
h2
1.
0.9082
0.1537
-0.1729
-0.0299
0.0886
0.0385
0.0378
0.7
8
2.
Instruments of Venture
capital Investment
0.8900
0.1106
-0.1495
-0.0765
0.0595
0.0306
0.0426
0.7
9
3.
Investment amount,
trenches and milestone
0.6957
-0.2691
0.0654
0.4552
-0.0496
-0.0145
-0.0565
0.9
1
4.
Information rights
0.0904
0.9425
0.2056
-0.0361
0.0642
0.0298
0.0059
0.9
4
5.
Anti-dilution and
Preemptive rights
0.0512
0.9423
0.2105
-0.0284
0.0467
0.0079
0.0065
0.8
9
6.
-0.1461
0.2095
0.9149
0.0528
0.0137
0.1012
-0.0429
0.`7
7
7.
Board of directors
representation
-0.1443
0.1935
0.9017
0.0437
0.0640
0.1043
-0.0205
0.3
9
8.
Confidentiality
0.0804
0.0451
0.0325
0.8947
0.0189
0.0516
-0.0309
0.8
7
9.
Valuation of business
0.2648
0.0465
0.2435
0.6679
0.1236
-0.0431
0.1629
0.6
4
10.
Fees
0.1161
0.1280
0.0743
-0.1848
0.8503
0.0840
-0.0026
0.8
0
11.
Monitoring fees
0.0025
-0.0081
-0.0039
0.2639
0.8390
-0.1205
0.0216
0.8
3
12.
Exit rights
0.0675
-0.0644
0.1163
-0.0280
-0.0379
0.8673
-0.1783
0.8
1
13.
Exclusivity
0.0008
0.0952
0.2909
-0.2770
-0.0950
0.5889
0.3430
0.8
8
14.
Condition precedent
-0.0674
0.4294
-0.3444
0.3855
0.2681
0.5574
0.0237
0.9
3
15.
Employment agreements
with founders and key
employees
0.0407
-0.0032
-0.0628
0.1171
0.0217
-0.0531
0.9237
0.8
3
Eigen values
2.9431
2.5609
1.6752
1.4916
1.2900
1.1915
1.0028
% of variation
19.6
17.1
11.2
9.9
8.6
7.9
6.7
Cumulative percentage
19.6
36.7
47.9
57.8
66.4
74.4
81.0
281
283
Facilitating
accountability for
value
creation
and
protection,
284
TABLE 5.34
FACTORS INFLUENCING THE SUCCESS OF THE VENTURE
CAPITAL UNDERTAKINGS
Sl.
No.
1.
2.
3.
Variables
tICICI
IFCI
Values
Entrepreneurs Entrepreneurs
2.6943
3.6824
3.0123*
3.4331
2.4581
1.8187
3.8489
3.6814
3.1196*
4.
3.2114
3.5962
0.6864
5.
2.9096
3.2161
1.3382
6.
3.2114
2.4547
1.4048
2.8673
2.3296
3.2768*
3.0866
2.6817
1.4542
7.
8.
9.
2.3049
3.0684
1.7871
10.
3.6923
2.4562
3.0814*
11.
Transparency in operation
2.7821
3.0809
1.9476
3.2457
2.8681
0.8789
2.7081
3.8386
1.3827
12.
13.
14.
Follow on funding
3.6109
2.2672
1.9163
15.
2.3317
3.5233
3.4562*
285
Table 5.34 shows that the important variables that influence the
respondents for their success through venture capital undertakings for ICICI
respondents are VCs vast network enables the recruitment of talented people,
VCs vast network facilitating mobilization of finance at favorable terms and
Creativity and innovation since the mean scores are 3.8489, 3.0866 and 3.6923
respectively. Among the respondents belonging to the IFCI, these are Overall
improvement in corporate governance, Process-driven undertaking not impacted
by management Shake-ups and VCs vast network enables the recruitment of
talented people mean scores are 3.8386, 3.6824 and 3.6814. Regarding the
perception on the factors influencing the respondents for their success, the
significant difference among the two group of respondents has been identified in
the Process-driven undertaking not impacted by management Shake-ups, VCs
vast network enables the recruitment of talented people, Extending technical and
management assistance, Creativity and innovation and VCs role in planning and
executing a successful exit plan, since the respective t statistics are significant at
5 % level.
286