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  1. 1. i GLOBAL JOURNAL OF MULTIDISCIPLINARY AND MULTIDIMENSIONAL STUDIES Dr. N.M.Lall B.Com. M.A. (Eco), Ph.D. FRAS (LONDON) Patron Dr. A.K.Jha PGDM, M.A. (Eco), Ph.D. Managing cum Chief Editor ISSN NO : 2394-8965 SHRUTAAYUSH PUBLICATION Grater Noida
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  3. 3. iii Member of Editorial Board Dr.V. D. Sharma (M.Sc. M.A, B.Ed, PGDFM, Ph.D) A Gandhian Professor, Faculty of Management Studies & Ex Proctor Gen. Secy, Rashtriya Shaikshik Mahsangh (University Campus)VBS Purvanchal University Jaunpur-222003 (UP)Rajya Prabhari Social Media(Bharat Swabhiman) UP Dr. H.K.S.Kumar Chunduri Sr. Faculty Member, Department of Business Studies, Ibra College of Technology, IBRA, Sultanate of Oman Dr. Violetta Gassiy Associate professor, Public administration department, Kuban State Univer- sity, 149, Stavropolskaya st., Krasnodar Russia Prof (Dr) Ramesh Balkrishna Kasetwar (Retd Colonel) PGDM, M.A. (Eco), Ph.D. Managing cum Chief Editor Vineet Jain, Asstt. Prof. (Mechanical) Amity University Haryana, Gurgaon Dr. Rushiraj Upadhyay, Asst. Professor, M.S.W Department, Gujarat University, Ahmedabad Deepak Pathak Assistant Professor, Mechanical Engg Dept., FET Agra College Agra Mahendra N. UmareAssociate Professor & HOD (Civil) at NIT, Nagpur ROB WOOD Department of Global Strategy & Management 2010-presentWestern Carolina University, Cullowhee, NC Judi Krzyzanowski B.Sc, M.SC., Environmental scientist Dr. Vijay Pithadia, PhD., MBA, Electronics Technician Dr. Dheeraj Pawar Assistant Professor,Amity Institute of Telecom Engineering and Manage- ment, Amity University, Noida Raymond W. Thron, Ph.D., Faculty College of Health Sciences, Walden University
  4. 4. iv Editorial The current changes and challenges experienced by the contemporary world have been an inspiration for us in elaborating this new forum of dis- cussions on the real world issues affecting or having a meaningful impact on the different segment of society and on our lives. This is an attempt of boldly and unrestrictedly contributing to new Ideas through research findings and doing things differently, thereby providing quality and value. Scholars, re- searchers, young researchers worldwide are encouraged to join efforts in find- ing solutions for the common issues raised by the recent social and environ- mental changes. It aims to be a dialogue between the scientific community and the citizens, as a testimony of their concern to place the results of their work in the service of the society. A new orientation in research policy is imperative to respond to the new needs of the society to guarantee environ- mental sustainability and economic growth in the knowledge society. The purpose of the Global Journal of Multidisciplinary and Multidimenstional Studies is to make an area of free circulation of ideas and knowledge, of shar- ing experience and finding effective solutions for real-life problems, to under- stand their causes and foresee the consequences. While the society needs and calls for research, research needs to be accountable to society. To this end, the journal publishes Research papers, survey, articles, research findings, book reviews, and annotations of new books. Dr.A.K.Jha Managing and Chief Editor GJMMS
  5. 5. v Vol. 1 Issue No. 1 January- March 2015 1. Employability in OpenAnd Distnace Learning (ODL):An 1 Empirical Evidence From The National Open University of Nigeria (NOUN)’Lokoja Study Center Obaka, Jnabo Abel 2. Behaviour of InvestorTowards Risk in Mutual Funds With 14 Special Reference to Retail Investors in Cochin city V. Srinivasan and Dr. R. Karuppasamy 3. Remittances and Entrepreneurship Development 26 Jubran Khalid 4. AStudy of Sucsses Factors in International Expansion of 46 Business Dr. Munaveer Husain 5. Gender Equality in Environmental Issues forAcheving 54 Sustainable Peace and Security in Nigeria Obaka, Jnabo Abel 6. The Correlation Between Commerce and Management 64 Rochelle R. Dean 7. Quality of Teachers and Infrastructures a Major Road 70 Block fro Universalisation of Elemntary Education in Bihar Dr. Candra Mohan Singh GLOBAL JOURNAL OF MULTIDISCIPLINARY AND MULTIDIMENSTIONAL STUDIES
  6. 6. vi Multidimensional Multidimensional
  7. 7. ISSN NO. 2394-8965, GJMMS VOL -1, Issue -1, JAN- MAR -2015 EMPLOYABILITYIN OPENANDDISTANCELEARNING (ODL): ANEMPIRICALEVIDENCE FROM THENATIONALOPEN UNIVERSITYOF NIGERIA(NOUN)’S LOKOJASTUDYCENTRE Obaka,Inabo Abel Lecturer, NationalOpen University of Nigeria, EconomicsUnit,14-16, Ahmadu Bello Way, Victoria Island, PMB 80067, Lagos. Nigeria. ABSTRACT One of therecurring themes in public discussions about higher education inNigeria over recent times has been the employability of graduatesfrom the nation’s higher institutions. The National OpenUniversity of Nigeria (NOUN) is the first university inWest Africa that operates in an exclusively open anddistance learning (ODL) mode of education.This study assesses the employability of NOUN’sgraduates using alumnae of NOUN’s Lokoja study centre as targetpopulation in which a sample of one hundred and fifty (n= 150) were randomly selected.The Graduates’ Opinion Rating ofEmployability of Products of Open and Distance Learning (GOREPODL), a model developed by the researcher, were administered electronicallyand by hand to the sample over a period of eightweeks. Within the period, 150responses were received. The summary of the main findings in thesurvey was in many respects an affirmation of the employability ofNOUN’s graduates. First, the Survey revealed that the NOUN’sgraduates – about 62per cent of the sample – were either employed after graduationor benefited from promotion/conversion after graduation, i.e. thosewho entered NOUN while working.However,majority of the respondents complained about the poor conditions ofNOUN’s Lokoja study centre. In view of thefindings above, it is hereby recommended thatall the NOUN’s studycentres be upgraded with modern amenities. In addition, to increaseemployability, NOUN’s curricula be redesigned forthe inclusion of formal training for life skills; provision oftechnical and vocational education system; the use of more life caseanalyses in teaching to improve practicality; development ofcompulsory entrepreneurial studies for NOUN’s students and;improving employability content in curricula and developingemployability performance indices of NOUN’s graduates. KEYWORDS: EMPLOYABILITY,GRADUATES,ALUMNAE,EMPLOYMENT,ENTREPRENEURIAL,PROMOTION,CONVERSIONAND CURRICULA.
  8. 8. 2/ Employbilityin Open and distance....... Slokoja stady Center INTRODUCTION Within the open anddistance learning (ODL) mode of education, employability is part ofthe Lifelong Learning paradigm, which emphasizes the continuouslearning process individuals develop throughout their lives and takesplace in formal, informal, or non-formalcontexts. In this domain, distance and online universities are seenas key organizations in preparing adults to fulfill the expectationsof the labour market. It is a fact that education is the greatestsocial leveler and that education is the most potent instrument formental and social emancipation. Nations of the world, in recognitionof this, sought to provide quality education for majority of theircitizens in an evenhanded and accessible manner (Fafunwa 1974). Therelationship between education and employabilityis of increasing interest among policy-makers,both on the level of the overall provision and the development of theeducational programmes (Kottmann and De Weert,2013). One of the central goals of higher education is thecompetence-development of students in order to enhance their jobchances (ibid). Thequality andemployability of universitygraduates arevery important concernswith regard to human resource development in a country. Theseare affectedby the level of development of education and training, and theavailability of skilled mentors and facilities. Research evidencesshow that openand distance learning (ODL) mode of educationcan improve work efficiency and productivity, and, thereby,enhance employability (Silva,Lourtie and Aires, 2013). Workefficiency togetherwithproductivity, in addition toa definite required level ofeducation, depend upon training and orientation of human resources.These types of activities would include on-the-job training,upgrading courses, and awareness courses, which are possible morethrough ODL mode of education than anyother means. Further,the ODLsystem can raise employment opportunities inmany ways, as it helps develop the necessary skills, attitude andmotivation to match opportunities to fresh job seekersand workers’ advancement aswell as for self- employment(ibid).Recently, there has been increase in demand for skilled labour as aresult of globalization and changes in technology and thereorganization of work structure. The process of skill acquisitionand development through ODL system in the developingcountries likeNigeria is more important sinceconventionaltraining institutions do not have the capacity to train all those whowant to acquire skills.For instance, in Nigeria,about 1.0 million seek admission to theexisting conventional universities annuallybut only 0.12% get admitted due to inadequate resources in theuniversities (Fabiyi and Oladipo, 2008).Moreover,only a few of those who want to acquire universityeducation have the means toafford conventionaltraining. It is in this context that the value ofthe use ofthe ODL mode of
  9. 9. Obaka,Inabo Abel / 3 education forhuman resource developmentin Nigeria cannot be over emphasized.Hence, the need toassess the employability of the National Open University of Nigeria (NOUN)’sgraduates using alumnae of NOUN’s Lokoja study centrefor empirical verification. LITERATURE REVIEW In this section, the researcher reviewed relevant literatures on theconcept of employability, supply-side anddemand-side elements of employability and open and distancelearning (ODL) mode of education in Nigeria. THE CONCEPT OF EMPLOYABILITY The dictionarydefinition of employability is ‘the character or quality ofbeing employable’. The Confederation of British Industry (CBI)has defined employability thus: “Employability is thepossession by an individual of the qualities and competenciesrequired to meet the changing needs of employers and customers andthereby help to realise his or her aspirations and potential in work” (CBI, 1999, p. 1). Otherattempts to define the concept have hinted at a more holisticapproach, emphasising the impact of both individual characteristicsand labour market conditions—i.e. both labour demand and supplyfactors. The Canadian government’s Labour Force DevelopmentBoard offered the following definition: “Employability is therelative capacity of an individual to achieve meaningful employmentgiven the interaction of personal circumstances and the labourmarket.” (Canadian Labour Force Development Board, 1994, p.viii). A broad-rangingdefinition of the concept was developed by Hillage and Pollard (1998)who see employability as an individual’s ability to gaininitial employment, maintain employment, move between roles withinthe same organisation, obtain new employment if required and(ideally) secure suitable and sufficiently fulfilling work. Hencethis covers both unemployed people looking for work and employedpeople seeking alternative jobs or promotion. Employability thus involves; “Thecapability to move self-sufficiently within the labour market torealise potential through sustainable employment. For the individual,employability depends on the knowledge, skills and attitudes theypossess, the way they use those assets and present them to employersand the context (e.g. personal circumstances and labour marketenvironment) within which they seek work.” (Hillage andPollard, 1998, p. 12). Schultz, Bowman,Becker and the like as suggested in Akangbou (1985) believe thatincrease in the stock of human capital can accelerate nationaldevelopment. Adeyeye (2000) and Akintayo(1990) criticized the manpower planning andeducational system of past and present policy-makers. Some otherscholars blamed graduate unemployment on mad-rush for paperqualification. The need for a closer look at the educational contentto ensure tie between job demand
  10. 10. 4/ Employbilityin Open and distance....... Slokoja stady Center and the educational course contentwas suggested by authors like Akangbou (1985) and Akintayo (2006). Whereas the original EU strategy included employability as a pillar of its approach, themore flexible, longer-term strategy now advocated by the European Commission speaks of promoting more and better ‘investment inhuman capital and strategies for lifelong learning’. However,this and many of the Commission’s other guidelines forimplementing the strategy (or so- called ten commandments) reflect thepre-existing focus on employability, including: the promotion ofactive and preventative measures for the (especially long-term)unemployed and inactive; improving financial incentives to make workpay; and promoting active ageing (CEC, 2003b). Other cross- nationalinstitutions concerned with labour market policy have similarly emphasised the importance of employability. The United Nations (UN)has made employability one of its four priorities for national policyaction on youth employment (along with entrepreneurship, equalopportunities between young men and women and employment creation).To this end, the UN’s Youth Employment Network has suggestedthat: “All countries need to review, re-think and re-orienttheir education, vocational training and labour market policies tofacilitate the school to work transition and to give young people . .. a head start in working life.” (UN, 2001, p. 4). SUPPLY-SIDE ANDDEMAND-SIDE ELEMENTS OF EMPLOYABILITY Evans et al. (1999)suggest a division of employability into supply-side and demand-sideelements (described as ‘employability components’ and‘external factors’). Employabilitycomponents are identified as including; – the extentof the individual’s transferable skills; – the level ofpersonal motivation to seek work; – the extentof the individual’s ‘mobility’ in seeking work; – access toinformation and support networks; – and theextent and nature of other personal barriers to work. External factorsinclude – theattitudes of employers towards the unemployed; – the supplyand quality of training and education; – theavailability of other assistance for disadvantaged job seekers; – the extentto which the tax-benefits system successfully eliminates benefittraps; – and (mostimportantly) the supply of appropriate jobs in the local economy. Similarly, Kleinmanet al. (1998) discuss a range of ‘micro’ and ‘macro’factors that define the detail of each side of the supply-side–demand- side equation. In an attempt to arrive at a definition of employability that would provide a ‘framework for policyanalysis’ and a means of understanding
  11. 11. Obaka,Inabo Abel / 5 the complexities of thebarriers to work faced by individuals, Hillage and Pollard (1998) have drawn upon many themes from the existing literature. Theirframework for employability seeks to highlight a complex interactionof different components, namely; Employabilityassets: including baseline assets, such as basic skills andessential personal attributes (for example, reliability and honesty); intermediate assets, such as job-specific, generic and ‘key’skills (e.g. communication and problem solving); and highlevelassets, such as those skills that contribute to organizationalperformance (for example, team work and commercial awareness). Presentation: defined as the ability to secure an appointment to an appropriateposition through the demonstration of employability assets (for example, through the competent completion of a curriculum vitae orapplication form, or participation in an interview). Deployment: referring to a range of abilities including career management skills(for example, awareness of one’s own abilities and limitations, awareness of opportunities in the labour market, and decision-makingand transitional skills) and job-search skills. Context factors,or the interaction of personal circumstances and the labour market: Hillage and Pollard accept that the individual’s ability to realise the assets and skills discussed above will to some extent depend upon external socio-economic factors, personal circumstances and the relationship between the two. Externalconditions such as local labour market demand andemployer attitudes will impact upon the availability of suitable opportunities, while personal circumstances will affect theability of individuals to seek and benefit from opportunities. Forthe purpose of this research, employability is considered both in its theoretical and practical dimensions. Atthe theoretical level, employability is the students’ potentialto adapt and make their knowledge, skills, and attitudes flexibletowards the labour market, promoting their social inclusion andensuring their quality of life. At a practical level, employabilityis the potential students bring into practice through their skills to become employed or promoted afterobtaining NOUN certificates. OPEN AND DISTANCELEARNING (ODL) MODE OF EDUCATION IN NIGERIA The National Open University of Nigeria (NOUN) is a public distance educationuniversity and is the only Nigerian public university to teach all undergraduate, master’s, and PhD degrees based on ODL system. All thedegrees have been adapted to the National University Commission (NUC) approved programmes. Its diversified educational offer is based on a self-developed pedagogical virtual model that emphasizes the following principles: i) student-centred learning, ii) flexibility, iii) interaction, iv)
  12. 12. 6/ Employbilityin Open and distance....... Slokoja stady Center accessibility, v) affordability and vi)digital inclusion. These principles guide teaching procedures, the roles of students and teachers, the planning, design, and management of learning activities, the materials used, and the assessment of the acquired skills (Pereira et al., 2007, p. 10). At the NOUN,the student is at the centre of the university’s pedagogical model, taken as an active individual, the builder of his/her own knowledge and integrated within a learning community (Aires, 2007, p.21). At its different levels, education should facilitate the acquisition and development of interlinked skills required by thedigital society as well as of specific skills in the area of knowledge chosen by the student. The planning of teaching and learning activities is meticulous, giving priority to the development of skills in each subject (Pereira etal., 2007, p. 10). Additionally, the results of student learning derive from a combination of autonomous and collaborative learning. Collaborative learning prepares students for the needs of organizations whose obligations are based primarily on work in multidisciplinary teams and the joint construction of knowledge(Pereira et al., 2007, p. 11). The principles ofthe NOUN virtual pedagogical model meet thechallenges currently facing higher education in the field of employability. The primacy of providing students with flexibility, autonomy, reflexivity, and a critical guide to the development of metacognitive skills, developing their perceptions of self-efficacy and knowledge about their mechanisms of action, thought, and development, are all dimensions that are closely linked to the skillsrequired for employability (ibid). NOUN is the first university in West Africa that operatesan exclusively open and distance learning (ODL) mode of education (Ojoand Olakulehin,2006). NOUN focuses mainly on open and distance teaching and learning system, anddelivers its courses materials via print in combination withinformation and communication technology (ICT).This ‘single mode’ of open education is differentfrom the integration of distance learning system into the face- to-face teaching and learning system, which is more typical ofconventional Universities in Nigeria and other parts of the world.Thus, NOUN reflects a novel development in the provision of highereducation in Nigeria. Though Nigeria is thepioneer of ODL in West Africa with the establishment of NOUN in 1983,and several universities have distance learning programs, ODL is yetto be entrenched, and its gains yet to be fully realised in thecountry (Gambari, 2014). Apart from the problems that bedevil highereducation in Nigeria in general, ODL suffers setbacks due to thegeneral infrastructural deficit paricularly in poor postal system,erratic power supply, ICT spread and penetration, the digital divide(Yusuf, 2006) and poor connectivity among tertiary institutions inthe country which are essential
  13. 13. Obaka,Inabo Abel / 7 for this mode of learning. OBJECTIVESOF THE STUDY The objectives ofthe present research were to study: 1. the employability of NOUN graduates; 2. the adequacy, relevance and application of the distance education to work place; 3. the cost-effectiveness and worth of the NOUN course programmes RESEARCH HYPOTHESES Hypothesis 1 Ho : Thecurricular contents of NOUN courses are inadequate and not comparable to those of other Nigerian universities. H1 : Thecurricular contents of NOUN courses are adequate and comparable to those of other Nigerian universities. Hypothesis 2 Ho :Products of distance learning are not employable H1 : Products of distance learning are employable Hypothesis 3 Ho : The NOUN course programmes are not worth the money and time invested and the course fees are not the lowest among Nigerian universities. H1 :The NOUN course programmes are worth the money and time invested and the course fees are the lowest among Nigerian universities.# Hypothesis 4 Ho :NOUN Study centre atmosphere and decor are not appealing. H1 : NOUN Study centre atmosphere and decor are appealing. RESEARCH METHODOLOGY The samples for this study comprised of NOUN’s graduates randomly selected from Lokoja study centrein Nigeria. The sample was drawn from graduated students who registered for various degrees programmes at the NOUN’s Lokoja study centre. A structured questionnaire entitled the Graduates’ Opinion Rating of Employability of Products of Open and Distance Learning (GOREPODL) was developed by the researchers to gather the required information. The GOREPODL is a7-itemLikert-type closed end questionaire designed to measure those NOUN’s graduates who had either secured employment after graduation or werepromoted/upgraded/converted with their certificates if they were working before undergoing training at NOUN. The questionnaire was also designed to measure those NOUN’s graduates who were still unemployed. The instrument was administered to the NOUN’sgraduates through email, telephone textmessages and by hand when the researcher travelled to Lokoja, KogiState, Nigeria. Their contact
  14. 14. 8/ Employbilityin Open and distance....... Slokoja stady Center addresses, email addresses andtelephone numbers were obtained from NOUN’s ICT Department.Subjects were asked to rank each item as yes,no, or undecided. The questions on theGOREPODL were designed to elicit subjects’opinions and attitudes towards the adequacy ofskills acquired and the curricular contentsof NOUN’s courses in comparison to those of other Nigerianuniversities as well as their employability. Others were coursesrelevancy and applicability to work schedule, whether NOUN’scourse programmes were worth the money and time invested, whetherNOUN’s course fees were the lowest among Nigerian universitiesand whether NOUN’s Study centre atmosphere and decor areappealing. The instrument wasvalidated by two experts in research and evaluation; its test-retestreliability was 0.68 (n = 20).One hundred and fifty (n = 150)respondents were from NOUN’s Lokoja studycentre. Results were analyzed using simple percentagestatistics. RESULTS AND FINDINGS RESULTS GENERATED FROM THE INSTRUMENT ARE PRESENTED IN TABLE 1 BELLOW. TABLE 1: RESULTS OF THE GRADUATES’ OPINION RATING OF EMPLOYABILITY OF PRODUCTS OF OPEN AND DISTANCE LEARNING (GOREPODL) Source: Authors’ Research Survey 2014 No. Questions Yes No Undecided 1. NOUN Graduates have acquired adequate skills for the labour market. 130 (86.67%) - 20 (13.33%) 2. The curricular contents of NOUN courses are adequate and comparable to those of other Nigerian universities. 120 (80%) 12 (8%) 18 (12%) 3. As a NOUN Graduate, you were employed or converted or upgraded after graduation. 93 (62%) 57 (38%) - 4. NOUN Courses were relevant to what NOUN Graduates use/apply at work. 90 (60%) 60 (40%) - 5. The NOUN course programmes are worth the money and time invested. 130 (86.67%) 15 (10%) 5 (3.33%) 6. NOUN Course fees are the lowest among Nigerian universities. 80 (53.33%) 50 (33.33%) 20 (13.33%) 7. NOUN Study centre atmosphere and decor are appealing. 60 (40%) 90 (60%) -
  15. 15. Obaka,Inabo Abel / 9 Table:1 above shows the item-by-item percentage analysis of thestructured questionnaire entitled the Graduates’ Opinion Rating of Employability of Products of Openand Distance Learning (GOREPODL)developed by the researcher.One hundred and thirty NOUN’s graduands(86.67%) perceived that theyhave acquired adequate skills for the labour market. Twentygraduands (13.33%)disagreed to the statement: “NOUNGraduates have acquired adequate skills for the labour market.”The researcher suggest that this finding isnot surprising however, considering that NOUN’scurricula are designed for life-long learning andemployability. Responses to Item 2:One hundred and twenty students (80%) agreed that, “Thecurricular contents of NOUN courses are adequate and comparable to those of other Nigerian universities. ”This indicate that there is little difference in graduates’ perceptions of lectures/tutorials used in the conventional institutions versus NOUN. This finding suggests that students engaged in ODL willlikely achieve learning outcomes similar to that offered by conventional educational methods. In view of the positive responses to Items 1 and 2 above, the study rejected thenull hypothesis in hypothesis 1 which stated that the curricular contents of NOUN’s courses are inadequate and not comparable to those of other Nigerian universities and accepted the alternative hypothesis that thecurricular contents of NOUN’s courses are adequate and comparable to those of other Nigerian universities. A finding from Item 3, “As a NOUN Graduate, you were employed or converted or upgraded after graduation,” in which ninety-three graduates (62%) agreee simply that NOUN’s graduates are employable. The study,therefore , rejected the null hypothesis in hypothesis 2 that products of distancelearning are not employable and accepted the alternative hypothesisthat products of distance learning are employable. Otherfindings in items 4, 5 and 6 were that respondents agreed on courses relevancy and applicability to work schedule (64%); that NOUN’s course programmes were worth the money and time invested (86.67%) and that NOUN’s course fees were the lowest among Nigerian universities (53.33%). This means that in hypothesis 3, the studyrejectedthe null hypothesis that the NOUN’s course programmes are not worth the money and time invested and the course fees are not the lowest among Nigerian universities. The study, therefore, accepted the alternative hypothesis that NOUN’s course programmes are worth the money and time investedand the course fees are the lowest among Nigerian universities. However, in item 7, ninety respondents (60%) disagreed that NOUN’s study centres’ atmosphere and decor were appealing. The study, therefore, accepted the null hypothesis in hypothesis 4 that NOUN’s study centre atmosphere and decor are not appealing and rejected the alternative hypothesis
  16. 16. 10/ Employbilityin Open and distance....... Slokoja stady Center that NOUN’s study centre atmosphere and decor areappealing. DISCUSSION It has increasingly become important for individuals to take on a highly flexible, adaptable and proactive approach towards managing their careers, and by implication, their employability. Being employable is especially relevant to people studying for degrees and graduates as employers seek graduates that display qualities that will enable them to ‘hit the ground running’ in delivering value to the organization and to stay abreast of the latest development in the career environment. Despite the obvious significance of employability and widespread interest in the topic, it remains conceptually ambiguous (Harvey, 2001; McQuaid & Lindsay, 2005) and there is a lack of empirical studies that explain its foundation (Fugate etal., 2004:16). Moreover, relatively fewstudies have attempted to measure employability (Silva,Lourtie, and Aires, 2013) and fewer stillhave focused on developing accurate measures to assess the employability of ODL graduates in particular. Findings from this study are very important as well. Although respondents’ recognition of the worth of ODL university education was never in doubt, they nonetheless complained about the poor conditions of NOUN study centre. Graduates’ responses to item 7 supported this assertion. Most graduates in this study held positive perceptions and attitudes towards ODL as indicated in their responses to items 1-6. These findings suggest there is strong rationale for the expansion of the ODL institutions in Nigeria. It alsosuggests that ODL institutions have reached the critical tipping point of acceptance, and as such ODL institutions are well positioned to become a permanent component of the formal education system in Nigeria. Sustaining students’ favorable perceptions and improving any and all shortcomings as they arise now rests on the shoulders of those charged with running Nigeria’s ODL institutions. These educational leaders must not only run ODL institutions effectively and efficiently, they must strive to continuously improve the quality of their institutions’ educational offerings and seek ways to expand their educational provision. The 150 NOUN’s graduates at Lokoja study centre who responded to this survey indicated their interest in the unique features that madeup ODL institutions, such as adequacy and relevance of skills and curricular contents, employability and worth of time invested in the programmes, comparatively lower fees, and quality of study centre. The findings reported here also suggest that those administering and leading Nigeria’s ODL institutions are in an excellent position to build positively on the favourable perceptions already held by many distance learning students. They can achieve this through the effective and efficient management of Nigeria’s ODL institutions.
  17. 17. Obaka,Inabo Abel / 11 CONCLUSION AND RECOMMENDATIONS The overall purpose of this study was to develop and evaluate a measure of graduate employability in the context of the ODL mode of education. A comprehensive literature review provided the context for highlighting the need for individuals to be employable against the back drop of a turbulent work and career environment. The employability construct was a structured questionnaire entitled the Graduates’ Opinion Rating ofEmployability of Products of Open and Distance Learning (GOREPODL) developed by the researcher as an instrument to gauge ODLgraduates’employability. The results of this study have therefore made a contribution to the academic community, higher education and industrial psychology practice by providing valuable insight into the conceptualisation and effective measurement of employability, a construct that has become not just important but indeed imperative in a continuously shifting work and career space. Research on the phenomenon of employability in distance higher education needs further development. The challenges currently facing the Nigerian higher education, particularly the complexity of entering the labour market for many graduates, the new paradigm of Lifelong Learning, and the peculiarities of adult and distance learning, justify more research in this domain. In view of the findings above, it is hereby recommended that all the NOUN’s study centres be upgraded with modern amenities. In addition, to increase employability, NOUN’s curricula be redesigned for the inclusion of formal training for life skills; provision of technical and vocational education system; the use of more life case analyses in teaching to improve practicality; development of compulsory entrepreneurial studies for NOUN’s students and; improving employability content in curricula and developing employability performance indices of NOUN’s graduates. REFERENCES Adeyeye, J.O.(2000). Labour Management Relations in a Recessional economy. MRLJournal. A Quarterly Academic Publication Review Ltd. Vol.1, PP27-42 Akangbou, S.D.(1985). The Economics of Educational Planning in Nigeria. Lagos: Vikas Publishing House Ltd. Pp. 3. Akintayo, M.O.(1990): The relevance of Out – Reach Programmes to capable under utilization of Resources in Higher Education in Nigeria in 1990s. The Educational Planner. Vol.1.No.3. pp. 120 – 131 Aires, L., Azevedo, J .;Gaspar,I .and Teixeira, A. (Coords.) (2007).VirtualLearning Communities and Identities: The project @ prende.com.Port:Open University. CANADIAN LABOUR FORCE DEVELOPMENT BOARD (1994).
  18. 18. 12/ Employbilityin Open and distance....... Slokoja stady Center Putting the pieces together:towards a coherent transition system for Canada’s labour force. Ottawa: Canadian Labour Force Development Board.CBI (CONFEDERATION OF BRITISH INDUSTRY) (1999). Making Employability Work: AnAgenda for Action. London: CBI. CEC (2003b). TheFuture of the European Employment Strategy: A Strategy for Full Employment and Better Jobs for All. Luxembourg: Office for Official Publications ofthe European Communities. Fabiyi, A. I. AndOladipo, S.A. (2008). Resource and policy as determinants of Access toUniversity educationin Nigeria. World University Forum, 31st January to 2 nd February, 20018. http:// u08.cgpublisher.com/proposals/297/index_html Fanfuwa, A. B.(1974). History of Education in Nigeria. London Allen &Urwin. Gambari, I. A.(2014). Open and distance education for development, unity anddemocratic transformation of Nigeria. Being a paper presented at the 3rd pre-Convocation Lecture of the National Open University of Nigeria on Friday, 17th January, 2014. Lagos: DIRD, NOUN. Harvey, L. 2001.Defining and measuring employability. Quality in Higher Education,7(2):97-109. Hillage, J. and Pollard, E. (1998) Employability: Developing a Framework for Policy Analysis. London: DfEE. Kleinman, M., West, A. and Sparkes, J. (1998)Investing in employability: the roles ofbusiness and government in the transition to work. London: London School of Economics. Kottmann, A. and DeWeert, E. (2013). Higher Education and Labour Market; International Policy Frameworks for Regulating Graduate Employability. A thematic Report of the Dutch Ministry Education, Culture and Sciences, February page 9. Centre for Higher Education Policy Studies McQuaid, R.W. &Lindsay, C. 2005. The concept of employability. Urban Studies, 42(2):197-219. [Online] Available from: Sage: http://0- usj.sagepub.com.innopac.up.ac.za/cgi/reprint/42/2/197 [Accessed:2014- 07-24]. Ojo, D. O.and Olakulehin,F. K. (2006). Attitudes and Perceptions of Students to Open and Distance Learning in Nigeria. The International Review of Research in Open and Distance Learning, vol.14, No. 1(2013). June– 2006. Retrieved on 14-08-13 fromhttp://www.irrodl.org/ index.php/irrodl/article/view/313/494 Olufemi, A. J. And Adebola, T. N. (). An analysis of factors influencing hiring and placement of university graduates in Nigeria
  19. 19. Obaka,Inabo Abel / 13 Pereira, A., Mendes, AQ, Morgado, L., Lover, L. & Bidarra, J. (2007) PedagogicalModel Virtual University -. University for the future. Lisbon: Open University. Silva, A. P. , Lourtie, P. and Aires, L. (2013). Employability in Online Higher Education: A Case Study. UN (UNITED NATIONS )(2001) Recommendations of the High Level Panel of the Youth Employment Networ k.New York: United Nations.
  20. 20. 14/ Behaviour of Investor Towards ........ Cochin City ISSN NO. 2394-8965, GJMMS VOL -1, Issue -1, JAN- MAR -2015 BEHAVIOUR OF INVESTOR TOWARDS RISK IN MUTUAL FUNDS WITH SPECIAL REFERENCE TO RETAIL INVESTORS IN COCHIN CITY V. Srinivasan Research Scholar in Management Studies, Karpagam University, Coimbatore Dr. R. Karuppasamy Director, Nehru Institute of Technology ,Coimbatore ABSTRACT A retail investor makes an investment in a mutual fund scheme in expectation of higher return. The risk is the actual return may be less than expected return. The investment behaviour of a retail investor varies with various factors contributing to his risk level while making an investment in a mutual fund scheme. This study makes an attempt to understand the investor behaviour towards risk in mutual funds. The study finds that the investment behaviour of mutual fund investors’ is positive towards the mutual fund industry as investors are satisfied with the returns and service provided by mutual funds. Company reputation and schemes’ features are the driving factors for the investors to invest in mutual funds. The risk preference of the investors is increasing with decrease in age and with decrease in number of dependents. However, there is a mismatch between income levels and risk- return preference by investors as individual from varied income levels is willing to take high risk to achieve high returns. In order to avoid this mismatch an “Investors’ Risk Taxonomy Model and Matrix” is been developed using the primary data collected. Primary data have been collected from mutual fund investors in Cochin, India through structured questionnaire. KEYWORDS : INVESTMENT BEHAVIOUR, INVESTOR BEHAVIOUR TOWARDS RISK, MUTUAL FUNDS, KNOWLEDGE, INVESTORS RISK TAXONOMY MODEL AND MATRIX, COCHIN, INDIA. INTRODUCTION At the time of investing, nothing will pay off more than educating oneself. The investors should be aware of various aspects while making an investment in an investment avenue. In any economy, investments are the major source of growth. Presently retail investors’ have plenty of options for making an investment, but in the current economic position where the inflation is growing at a faster pace than the interest rate of bank savings and high volatility of
  21. 21. V. Srinivasan . Dr. R. Karuppasamy / 15 share market prices puts the investor in a dilemma to choose a suitable and profitable investment avenue. This need of investors’ gears to shift the investment trend to mutual funds where the pool of funds are collected from investors and invested in securities like shares, bonds, debentures, gold, money market instruments etc. which are managed by a professional fund manager. Mutual fund offers various schemes which suit the risk appetite and return needs of different kinds of investors. If an investors, invest in a mutual fund scheme without having the knowledge of own risk tolerance level, he/she may end up losing money due to various risks involved in a particular scheme. It is the responsibility of a Mutual Fund house to understand the risk profile and investment behaviour of investors and suggest suitable scheme to them and also have to manage the risk efficiently by revising the portfolio according to market shifts to match the risk level and investment objective of a particular scheme. This research helps in identifying the differences in the risk profiles of mutual fund investors and their investment behaviour. 1. REVIEW OF LITERATURE V G Murugan (2012), evaluated the investors behaviour in mutual fund and found that one–third of investors out of 300 respondents have not formed any attitude towards mutual fund investments. The main reason behind this has been observed to be the lack of awareness of investors about the concept and working of the mutual funds. As far as the benefits delivered by the mutual funds are concerned, ‘return potential’ and ‘liquidity’ have been perceived to be the most attractive by the investors, followed by ‘flexibility’, ‘affordability’ and ‘transparency’. Dr. K. Lakshmana Rao (2011), analysed investors perception towards mutual fund schemes and suggested that Regulatory bodies like SEBI, IRDA, AMFI and other AMC’s have to conduct educational and orientation programmes in Universities, institutes and stock exchanges, so that investors’ will enhance their knowledge for making more prudent investment decisions. D Kandavel (2011), conducted a research on attitude of the investors towards mutual fund selection criterion in Puducherry and found that varied age group people have varied attitude towards mutual fund selection. Gender and education level has no significant influence on the attitude level of investors. Alex Wang (2011), studied the young generations investing behaviours in mutual funds and found that gender, income, knowledge, and experience emerge as important personal and social influences on younger generations’ investing behaviours in mutual funds. This underscores the importance of financial socialization of younger generations at school and home.
  22. 22. 16/ Behaviour of Investor Towards ........ Cochin City Simran Saini, Dr Bimal Anjum and Ramandeep Saini (2011), examined the investors’ perception and awareness towards mutual funds and outlined that mostly the investors have positive approach towards investing in mutual funds. In order to maintain their confidence in mutual funds they should be provided with timely information relating to different trends in the mutual fund industry. Nidhi Walia (2009), analysed the risk perception towards mutual fund services and reveals that due to volatility in the market, retail investors prefer mutual funds to stocks, but some desired investors need innovation and added quality dimensions to the existing mutual fund services to prefer it a prior investment avenue. Ms T R Rajeswari (2001), examined the factors influencing the mutual fund scheme selection by retail investors reveals that mutual fund is the fourth most preferred investment vehicle. The investors look for safety first in mutual fund products, followed by good returns, tax benefits, liquidity and capital appreciation. 2. MUTUAL FUND Mutual fund is a vehicle to mobilize funds from investors, to invest in different markets and securities, in line with the investment objectives agreed upon, between the mutual fund and the investors. Fig 3.1: Mutual fund working process 3.1 ADVANTAGES OF MUTUAL FUNDS FOR RETAIL INVESTORS a. Professional Management b. Affordable Portfolio Diversification c. Economies of Scale d. Liquidity e. Tax Deferral f. Tax benefits
  23. 23. V. Srinivasan . Dr. R. Karuppasamy / 17 g. Convenient Options h. Investment Comfort i. Regulatory Comfort j. Systematic approach to investments 3. RESEARCH METHODOLOGY In mutual funds different levels of risks are associated with different type of schemes/funds. It is important to study the investment behaviour of mutual fund investors towards risk is to understand their investment needs, risk tolerance level and risk-return needs and other factors influencing the investment behaviour of retail mutual fund investors. A well-structured questionnaire have been prepared and distributed to the retail mutual fund investors of Cochin region. Since the population is huge convenience sampling method is adopted for collecting primary data. Responses of 50 individual investors were collected from Cochin using questionnaire and those were assumed to be having knowledge of financial environment. 4.1 OBJECTIVES OF THE STUDY - To assess the differences in the risk profile of investors and to suggest a risk model - To analyse the factors influencing the decision of investors to invest in Mutual Funds - To estimate the satisfaction level of investors who invested in Mutual Funds. 4. ANALYSIS AND DISCUSSION The primary data collected from retail investors using the interview method is been analysed using the frequencies, percentages and factor analysis methods. 5.1. PROFILING OF RETAIL MF INVESTORS IN COCHIN REGION. Table 5.1.1: Gender of respondents Gender Respondents Male 86% Female 14%
  24. 24. 18/ Behaviour of Investor Towards ........ Cochin City Table 5.1.2: Age of respondents Age of Investor Respondents 20-30 years 36% 30-40 years 32% 40-50 years 16% 50-60 years 14% 60-70 years 2% 70-80 years 0% Table 5.1.3: Annual Income of respondents Annual Income Respondents < 1 Lakh 0% 1-2 Lakhs 10% 2-3 Lakhs 26% 3-4 Lakhs 16% 4-5 Lakhs 18% 5-6 Lakhs 4% 6-7 Lakhs 2% 7-8 Lakhs 0% 8-9 Lakhs 0% 9-10 Lakhs 0% > 10 Lakhs 4% Table 5.1.4: Annual savings of respondents Annual Savings of investor Respondents < 50 Thousand 8% 50 Thousand - 1 Lakh 42% 1-2 Lakhs 22% 2-3 Lakhs 16% 3-4 Lakhs 2% 4-5 Lakhs 4% 5-6 Lakhs 4% > 6 Lakhs 2%
  25. 25. V. Srinivasan . Dr. R. Karuppasamy / 19 Table 5.1.5: Education Level of respondents Qualification of investor Respondents Post Graduate’s 44% Graduate’s 46% Higher Secondary 10% Education No Education 0% Table 5.1.6: Marital Status of respondents Marital Status of Investor Respondents Married 82% Unmarried 18% Table 5.1.7: Occupation of respondents Occupation of Investor Respondents Private Employee 54% Government Employee 20% Self Employed 22% Others 4% 5.2. INVESTMENT BEHAVIOUR OF RETAIL MUTUAL FUND INVESTORS From the appendix fig. 5.2.1 it is observed that out of the total population of retail mutual fund investors, 30% of investors prefer mutual funds as their best investment avenue, 18% prefer to invest in savings bank account, 16% prefer to invest in bank fixed deposits, 8% prefer to invest in public provident fund, 4% prefer to invest in life insurance policies, 16% prefer to invest in equity shares whereas 8% people prefer to invest in Gold, Recurring deposits, post office savings and commodities. From the appendix fig. 5.2.2 it is seen that out of the total population of retail mutual fund investors, 72% people prefer to invest in equity related schemes, 20% prefer to invest in balanced schemes and the remaining 8% prefer to invest in tax saver and debt schemes. From the appendix fig. 5.2.3 it is observed that out of the total population of retail mutual fund investors, 80% prefer to invest when market is performing low, 8% prefer to invest when market is balanced, 8% prefer to invest when market is performing well and the remaining 4% prefer to invest when market is fluctuating. From the appendix fig. 5.2.4 it is seen that out of the total population of retail mutual fund investors, 26% people believe that investing in mutual fund schemes will help them in achieving their goals, 52% people has a partial confidence that investing in mutual fund schemes will help them in achieving their goals and 22% people has a no idea whether investing in mutual fund will help in achieving their goals.
  26. 26. 20/ Behaviour of Investor Towards ........ Cochin City 5.3. RISK PREFERENCE, AWARENESS AND TOLERANCE LEVEL AMONG MUTUAL FUND INVESTORS. From the appendix fig. 5.3.1 it is observed that out of the total population of retail mutual fund investors, 80% people are well aware of the risks involved before investing in a mutual fund scheme, 18% people are partially aware of the risks involved before investing in a mutual fund scheme whereas only 2% people are unaware of the risks involved before investing in mutual fund scheme. From the appendix fig. 5.3.2 it is seen that out of the total population of retail mutual fund investors, 74% people has good knowledge of fact sheet before investing in a mutual fund scheme, 18% people has partial knowledge of fact sheet before investing in a mutual fund scheme whereas 8% has no knowledge of factsheet before investing in a mutual fund scheme. From the appendix fig. 5.3.3 it is observed that out of the total population of retail mutual fund investors, 32% prefer a portfolio which yields high risk and returns, 56% prefer a portfolio which yield above average risk and returns, 6% prefer a portfolio which yields below average risk and returns and remaining 6% prefer a portfolio which yields low risk and returns. From the appendix fig. 5.3.4 it is seen that out of the total population of retail mutual fund investors, the investors who belong to the age group of 20-30 years tend to take higher risk and the investors who belong to the age group of above 50 years tend to take below to above average risk. From the appendix fig. 5.3.5 it is observed that out of the total population of retail mutual fund investors, the investors who have the earning of 2-3 Lakh annual income willing to take high risk aiming for high returns and investors who earn above 5 lakhs also willing to take high risk aiming to earn high return. From the appendix fig. 5.3.6 it is seen that out of the total population of retail mutual fund investors, the investors who has two and less than two dependents tend to take high risk while investing, whereas the investors who has more than two dependents tend to take moderate risk.
  27. 27. V. Srinivasan . Dr. R. Karuppasamy / 21 5.4. INVESTORS RISK TAXONOMY MODEL AND MATRIX. Fig 5.4.1: Investors Risk Taxonomy Model Based on the demographics and the risk – return needs of the Mutual Fund investors the following Risk Taxonomy Model and Matrix has been prepared in order to provide a suitable scheme to a particular investor to suit one’s risk tolerance level and risk preference which helps the Mutual Fund companies to gain investors’ trust for long term and also to avoid future loss to the investor.
  28. 28. 22/ Behaviour of Investor Towards ........ Cochin City Table 5.4.1: Investor Risk Taxonomy Matrix. The Risk Taxonomy Matrix is used to identify exact risk tolerance level of an investor with characteristics varied by age group, income level and number of dependents. 5.5. SATISFACTION LEVEL OF INVESTORS TOWARDS MUTUAL FUNDS From the appendix fig. 5.5.1 it is seen that out of the total population of retail mutual fund investors 6% investors are highly satisfied with the returns produced by their investment, 82% investors are satisfied with the returns produced by their investment and 12% investors are moderately satisfied with the returns produced by their investment. AnnualIncomeofInvestor Age of Investor 1-2 Lac 2-3 Lac 3-4 Lac 4-5 Lac 5-6 Lac 6-7 Lac 7-8 Lac 8-9 Lac Dependents to Investor 20-30 Years H H H H H H H H 1 AA AA AA H H H H H 2 BA AA AA AA H H H H 3 30-40 Years AA AA H H H H H H 1 BA BA AA AA H H H H 2 BA BA AA AA AA H H H 3 40-50 Years AA AA AA H H H H H 1 BA BA AA AA AA H H H 2 BA BA BA AA AA AA H H 3 50-60 Years AA AA AA AA H H H H 1 BA BA BA AA AA AA H H 2 BA BA BA BA BA AA H H 3 60-70 Years AA AA AA AA AA AA H H 1 BA BA BA BA AA AA H H 2 L L BA BA BA BA AA H 3 70-80 Years BA BA AA AA AA AA H H 1 L BA BA BA BA AA AA AA 2 L L L L BA BA BA AA 3
  29. 29. V. Srinivasan . Dr. R. Karuppasamy / 23 From the appendix fig. 5.5.2 it is observed that out of the total population of retail mutual fund investors 10% investors are highly satisfied with the service provided by the Mutual Fund companies, 80% investors are satisfied with the service whereas 10% investors are moderately satisfied with the service. 5.6. FACTORS INFLUENCING INVESTORS TO INVEST IN MUTUAL FUNDS From the table 5.6.1 and 5.6.2 it is observed that factor analysis is conducted using 14 variables identified. The results of factor analysis identified three factors which influence the investment decision of retail investors are i. Reputation ii. Features iii. Innovativeness and Rating This Factor analysis clearly says that investors tend to choose a scheme from a Mutual Fund house by taking into consideration the reputation of mutual fund house, features, innovativeness and rating of scheme. 5. CONCLUSION This study reveals that the investment behaviour of mutual fund investors’ is positive towards the industry. The mutual fund investors are satisfied with the returns and service provided by the mutual fund companies. Reputation of the company and fund features’ are found to be the driving factors for the investors to invest in schemes of mutual funds. The mismatch between the investors’ risk tolerance level and the risk- return preference of the investors leads to the loss in the investors’ principal and trust. To avoid this mutual fund companies should suggest suitable scheme to the investors where the risk prevailed in the scheme is perfectly tolerable by the investor. Since this study is carried out among the investors in Cochin City, there is a further scope for the researchers to extend similar studies in other cities. 6. SUGGESTIONS AND RECOMMENDATIONS - Among the respondents 34% of the investors have chosen savings bank account and bank fixed deposit as their favourite investment avenue. Thus there is an ample opportunity for the mutual fund companies to capture these markets by imparting knowledge in the minds of investors about the advantages of investing in mutual funds. - Out of the total respondents 20% have less or no knowledge of the risks involved in a scheme before making an investment decision. The Mutual Fund companies should feel responsible in making their investors aware of risks involved before making an investment decision. - Out of the total respondents 26% do not have knowledge of fact-sheet before making an investment decision. Hence all the investors should be
  30. 30. 24/ Behaviour of Investor Towards ........ Cochin City requested to go through fact-sheet before making an investment. - There is a high mismatch between the investors risk tolerance level and the risk an investor is facing after making an investment. This should be avoided by following the Investor Risk Taxonomy Model suggested in chapter 5. - When investors are requested to give suggestions for improvement in the selection of Mutual Fund schemes, most of the investors suggested that conducting seminars and workshops in a frequent intervals to educate them regarding the performance of the schemes will help them in making a wise decision. REFERENCES (A) ARTICLES Kandavel D. (2011), “Attitude of the Investors towards Mutual Fund Selection Criterion in Puducherry an Empirical Study.” International Referred Research Journal, Volume 3, Issue 26, pp. 18:20. Murugan V G. (2012), “Evaluation of Investors Behaviour in Mutual Funds.” EXCEL International Journal of Multidisciplinary Management Studies, Volume 2, Issue 1, pp. 274-285. Rajeswari T R and V E Rama Moorthy.(2011), “An Empirical Study on Factors Influencing the Mutual Fund/Scheme Selection by Retail Investors.”. Rao K.Lakshmana. (2011), “Analysis of Investors’Perceptions towards Mutual Fund Schemes with Reference to Awareness and Adoption of Personal and Family Considerations.” International Journal of Multidisciplinary Research, Volume 1, Issue 8, pp. 175-192. Saini Simran, Dr Bimal Anjum and Ramandeep Saini. (May 2011), “Investors’ Awareness and Perception About Mutual Funds.” International Journal of Multidisciplinary Research, Volume 1, Issue 1, pp. 14-29. Walia Nidhi and Dr Ravi Kiran, (May 2009), “AnAnalysis of Investor’s Risk Perception towards Mutual Funds Services.” International Journal of Business and Management, Volume 4, No. 5, pp. 106-120. (B)Books Wang Alex. (2012): “Younger Generations’ Investing Behaviours in Mutual Funds: Does Gender Matter?.” The Journal of Wealth Management. pp. 13-23. NISM-Series-V (2011), “A: Mutual Fund Distributors Certification Examination” National Institute of Securities Markets. Navi Mumbai. Malhotra, Naresh K.( 2003) “Marketing Research”. Pearson Education. New Delhi.
  31. 31. V. Srinivasan . Dr. R. Karuppasamy / 25 Chawla, Deepak and Neena Sondhi (2011) “Research Methodology”. Vikas Publishing house pvt. Ltd.New Delhi. Satish D and Kishore Krishna P (2006), Behavioral Finance – An Introduction, The ICFAI University Press. Hyderabad.
  32. 32. 26/ Remittances and Enterpreneurship Development ISSN NO. 2394-8965, GJMMS VOL -1, Issue -1, JAN- MAR -2015 REMITTANCESANDENTREPRENEURSHIPDEVELOPMENT Jubran Khalid Department of Economics University of Gujrat ABSTRACT For the last one decade, remittances have been showing an upward increasing trend in case of Pakistan and being, the second best source of foreign exchange and foreign investment, they work like a dominant force to manage the current account deficit. During the global economic down turn, remittances have shown resilience and recorded 23.9 percent growth during 2009 over the previous year 19.5 percent in 2008. Remittances have become the economic lifeline for the destiny of Pakistan and promoted economic growth as it shows 5.5 percent share in GDP of Pakistan in 2010. As far as the matter of entrepreneurship is concerned, it is the software of the economy and works like blood in vain for economic growth. In developing countries like Pakistan, entrepreneurship plays a vital role in promoting the economic growth through employment creation and poverty reduction. The situation of entrepreneurship in Pakistan is not satisfactory due to some factors like corruption, property rights, policy implications, tax regulations etc. This study conducts a survey to analyze the role of remittances in entrepreneurship development. The survey includes the 120 households that were interviewed, located in rural and urban areas of Gujrat. The major focus of the study is on an important source of entrepreneurship development for the households of Gujrat, remittances. This study employs the logistic regression to compute the results as econometric technique and it concludes five variables as Amount of remittances, Family business experience, Profession in abroad, Marital status, and Domestic credit availability are significant and have positive association with the entrepreneurship development except Marital status. Remittances don’t very robustly impact on the entrepreneurship development. Based on the results and discussion, the study suggests that government should provide the technical education, opportunities to invest, remove the high constraints on the credit, and remove the obstacles on the way of entrepreneurship. Last but not least, the government should sketch out entrepreneurship and innovation based policies.
  33. 33. Jubran Khalid / 27 KEYWORDS: REMITTANCES, ENTREPRENEURSHIP, CREDIT AVAILABILITY, BUSINESS EXPERIENCE, LOGISTIC REGRESSION INTRODUCTION International migration is one of the important factors, which affect the relations between developing and developed economies in 21st century. By 2010, the stock of international migrants in foreign countries has touched the figure 215.8 million or 3.2 Percent of the world population. Official recorded amount of remittances from these workers constituted the amount of $440 billion in 2010 of which the developing countries received $325 billion. Even though, these remittances show resilience during the global economic crisis as fell by 6 Percent and afterward they recovered soon (World Bank, 2011). Remittances work like an energy for the developing economies as they help to build the financial sector, improving the living standard of the households, bring them out of the extreme poverty, and prepare them against the income shocks as well. The changing behaviour of the households leads an increase in the demand of the goods and services, which in turn boost up the entrepreneurship environment in the economy, create the employment and promote higher economic growth [Orozco, M. (2007), Khan, A. (2009)]. No doubt, remittances are important for the economic growth and development, they are also play a vital role in promoting the entrepreneurship development for the households who receive the foreign earning. The recipient households are more tend to invest the amount of remittances in entrepreneurial activities (i.e. to initiate a business) which in the long run leads economic growth in the economy [Yang, D. (2004), Dornates and Poze (2006), Adams, R. H. (2007), Vacaso, C. (2010)]. Entrepreneurship is one of the important engines of growth for Pakistan. The pity is that the entrepreneurial activities remain limited in Pakistan since its independence. It is believed that entrepreneurship cope with the new economic, social and environmental challenges. Pakistan ranks at 85th among the 183 countries in the world with respect to ease of doing business in 2010 and 105th in 2012. To highlight the importance of the entrepreneurship development, it believed that without it the sustainable growth is not possible [Hussain et al (2006), Orozco, M. (2007), Naude (2008), EIP (2009), World Bank, (2012)]. This study measures the role of remittances in entrepreneurship development and highlights the importance of remittances as the best source of capital for entrepreneurship development. As for Pakistan, remittances have become the second best source of foreign reserve and foreign investment. For the last one decade, Pakistan has experienced a high growth in its remittances than any other of its neighbor country and they have grown by 22.6 percent in 2006-07, 19.5 percent in 2007-08, 23.9 percent in 2009-10, and 23.8 percent in 2010-11 from $7.3 billion to $9.1 billion and 25.8 percent during the 2011-12. Due to the high trend of
  34. 34. 28/ Remittances and Enterpreneurship Development remittances in Pakistan, it ranked the fifth largest remittances recipient country in the world by 2011. This recent per-excellent growth in remittances attributed to the unmatchable efforts of government to renovate the remittances from informal to formal channels. Since the launch of Pakistan Remittances Initiative (PRI) in 2009, the remittances received from the formal channel amounted up to 91 percent in 2011-12 from the 75 percent in 2009-10 (Economic Survey, 2006-11). Figure 1.1: Remittances Inflow to Pakistan US$ Million Source: World Bank, 2011 In Pakistan most of the people are involved in inherited business i.e. Father’s business and people mostly imitate in business adoption (Haque 2007). The New Growth Framework for Pakistan confirmed that entrepreneurship is an engine for the economic growth and development but still its growth is stagnant (Haque, 2011). Entrepreneurship in Pakistan, remains limited and, the most problematic factors for doing business in Pakistan are corruption, policy instability, crime and theft, tax regulation. (Global Competitiveness Report 2011-12). Due to these factors, the environment of doing business is impacted a lot and need to control them for the entrepreneurship development. The self-employed in Pakistan are 15.6 million people (hold own business) in 1999, 16.7 million in 2005-06 and 18.3 million in 2009-10 (Human and Labor Force Statistics, 2000-10). These facts also confirmed that the number of self- employed people is increasing over the time. Ever increasing remittances become the economic lifeline of Pakistan and the second largest source of foreign exchange earnings and foreign investment. It is clear remittances play an important role in entrepreneurship development and prove a good source of capital to finance consumption, construction, savings and investment (i.e. human capital, Manufacturing, Agriculture and small businesses) [Woodruff and Zanteno (2001), Yang, D. (2004), Dornates and Poze (2006), Adams, R. (2007), Vacaso, C. (2010)]. However, in case of Pakistan, with this fact that Pakistan stands at 5th world’s largest remittances recipient countries, the remittances are not used in a productive way. Instead the major amount of these remittances are used for the consumption,
  35. 35. Jubran Khalid / 29 construction, travelling etc. [Hussian, et al (2006), Haque, (2007), Chemin, M. (2008), Economic Survey 2011-12]. Therefore, it is really an alarming situation for Pakistan and it needs to cope with the problems in the way of low entrepreneurship growth, as the going era is entrepreneurship-based. Gujrat is very prominent with respect to international migration as the 24.3 percent households receive remittances and this study measures the role of remittances in entrepreneurship development in Gujrat for the recipient households. LITERATURE REVIEW International remittances and its impact on the migrants’ households is still a hot debate and much of the literature has been conducted to explain this phenomenon. Massey et al (1987) explores the notion of remittances impact on the entrepreneurial activities and business formation. They uses the data collected among thirty Mexican communities and U.S. destination areas and estimate the model including uses of personal resources, household assets, community characteristics, local market potential and macro condition of market to predict the odd of business formation. The results tell that the receipt of U.S. earning by the households significantly increased the odd of business formation and productive investment. Lopez, J. R. and Seligson, M. A. (1989) made a study with respect to check the impact of remittances on the small business development in El Salvador. The study uses the purposive sampling for the collection of the qualitative information and sample size 200 was to be covered. Businesses are differing with respect to type as repair shop, auto shop, vendors, restaurants etc. The results are differing to Mexico as the residents of El Salvador are more likely to invest in businesses than that of Mexicans. Finally, the study concludes that half of the respondents report that they invest the amount of remittances in business development. Blanchflower, D. G. and Oswald, A. J. (1998) explain the factors which affect the supply of the entrepreneur in the society to take part in the entrepreneurial activities or not. The authors find that the availability of credit and inheritance facilitate an individual to be self-employed. The study uses a survey comprises of interviews of the respondents selected by the random sampling design and Probit model is used as modeling technique. Many of them who report that they don’t own a business is due to lack of capital. Wit et al (2000) explains the successful determinants of entrepreneurship. The study uses the data from EIM firm survey. It includes the panel data on the people who started a business in 1994. The success of the business depends on the profits, employment created by the entrepreneur and the survival period of enterprise. The multiple regression technique is used for the analysis. The results find that the duration in business and profit are important
  36. 36. 30/ Remittances and Enterpreneurship Development determinants of a successful entrepreneurship. Woodruff and Zanteno (2001) examine that credit plays a vital role in small scale enterprise. The secondary data is used on enterprise taken from the Mexico National Urban Employment Survey 1998. The data shows that access to capital from remittances have significant effect on the invested capital. The regression findings also suggest that access to remittances determined the decision to start an enterprise. The results show that almost 20 Percent remittances are responsible in the invested capital in micro enterprises in urban Mexico. Yang, D. (2004) uses the four survey data in his study as LFS, SOF, FIES and APIS for impact analysis of remittances on the households. The study finds that remittances income helps the households to overcome the credit constraints, which hamper the investment. Favorable migrant shocks improve the migrants’families’child schooling, reduce child labor, increased expenditure on education and durable goods ownership. Further, the author found that better overseas economic opportunities provide help to the source households to invest and encourage them to engage themselves in riskier entrepreneurial activities. Haas, H. (2005) in his study in Morocco checks the impact of migration, remittances on economic development on the sending region. He conducts a survey for qualitative data among the sampled 507 non-migrant, internal and international migrants’ households in Moroccan Todgas Oasis. The study concludes that international migration and remittances significantly contribute to economic development and their standard of living. The migrants’ households are able to invest more than that of non-migrants in housing, agriculture and other enterprises. Hussain et al (2006) argues that over the time period remittances affect the consumption and production in Pakistan. The most affected sectors in Pakistan are: construction, transport, communication and consumer goods industries. The people have set up small businesses are trade like: motor shops, grinding flour mills, cement agencies, tailoring, bakries and fertilizer shops especially those who received remittances. Remittances also used in the real estate development. Hass, H. (2007) elaborates the relationship between international remittances and various direction of socio-economic development in developing countries. He cites several studies, which indicate that remittance promotes access to self-employment and increases the investment in shape of small businesses. In the absence of well functioning credit markets, remittances provide migrants and their families’ financial resources to invest in enterprises. Remittance essentially has a substantial potential to reduce poverty indirectly through multiplier effects generated by remittances expenditures and
  37. 37. Jubran Khalid / 31 investment. Nude, W. (2008) discusses the entrepreneurship with respect to economic viewpoint. For this study, a survey was undertaken and found that entrepreneurship in developing countries remained an under researched phenomenon. Economic development is the structural phenomenon toward a modern, technological economy based on the services and manufacturing. Entrepreneurship has both positive and negative effects on economic development. High economic growth result in high per capita income. The policy implication suggests that promoting the entrepreneurship in kind that in turn promotes high economic growth. Faridi et al (2010) focuses on the determinants of entrepreneurship in Pakistan. They use the primary data for it at district level and cover the 494 sampled workers in their interview in district Bahawalpur. For the results analysis, logistic regression technique is employed and the study concludes that experience and age of the workers have positive and significant effect on self-employment. Further education and good health of the individual also positively related to the decision to start their own business so the Govt. should provide the good facilities of health especially in rural areas. Vasco, C. (2010) reveals in his study that migration and remittances are insignificant for the rural likelihood to own a business. He uses the Living standard Measurement survey (LSMS) 2005-06 data. Probit model is used for results. Instead of remittances and migration, he found that education, credit access and access to services are positively correlated with the probability that the households would own a business. However, the households who have at least one member in abroad have more number of family members in business. Rehman, M. (2011) checks the economic benefits of remittances from the migrants to their families in the home country. The data is taken from the Household survey conducted in Bangladesh and for qualitative data; the author conducts an interview of the Bangladesh respondents. The survey consists of 12893 sample but the author took 4427 among them i.e. only those who were working in Saudi Arabia. The study concludes that only 18 Percent households use remittances for income generating purposes i.e. doing businesses. THEORETICAL FRAMEWORK Theoretical framework elaborates the possible channels of the selected variables and their inter-links and how they impact the outcome variable in their turn. The private sector investment (i.e. Entrepreneurship development) causes to raise the employment and income level, which in turn promotes economic growth as well.
  38. 38. 32/ Remittances and Enterpreneurship Development Box 1 Source: [Lopez and Seligson (1989), Blanchflower, D. G. and Oswald, A. J. (1998), Woodruff and Zanteno (2001), Ya,ng, D. (2004), Dornates and Poze (2006), Adams, R. H. (2007), Acosta, Fajnzylber, and López (2008)] Blanchflower, D. G. and Oswald, A. J. (1998), Shad et al (2006), Vasco, C. (2010), Massey et al (1987) and, support that if credit is available from financial institutes, friend and family domestically then more the probability to develop enterprise. The microfinance plays a vital role in this field and provides credit to the individuals through they have developed their small businesses and start earning livelihood. Woodruff and Zanteno (2001), Cuervo, A (2005), and Faridi, et al (2010) find that experience in doing business has significant impact on to start a business as compare to a non-experience holder. It means entrepreneurial abilities also important in doing a business. Arif (1999) uses the job in abroad as explanatory variable in his study to check its probability for entrepreneurship development in the country of origin by households of the migrants. If an individual is self-employed or engaged with the entrepreneurial activities in the country of destination then more the chances that he start business in the country of origin. Wagner, J. and Sternberg, R. (2002) use contact with the entrepreneurs in the society in his study and find that it increases the probability that the individual to become an entrepreneur. As most of us imitate in doing business and Haque (2007) confirms that individual often imitate in business adoption. So contact with the entrepreneurs in the society helps them to adopt the business. Marital status of emigrant of post migration also affects the decision to develop the entrepreneurship. Arif (1999) uses marital status of the migrant in his study and found that being married show a negative association to the propensity to invest. Faridi et al (2010) also employs the marital status as variable for the worker finds it an influencing factor in decision to involve in
  39. 39. Jubran Khalid / 33 self-employment activities. METHODOLOGY The study uses the data for analysis, which is collected by holding a survey in Gujrat. The nature of the dependent variable is binary as the remitter’s family is asked whether they have initiated any business = 1 and 0 = otherwise. No doubt that different econometric technique can be applied to this proposed model as Nero-Network technique, Factor analysis etc. but the study employs the Binary logistics for the analysis as different studies uses the Logistic regression to estimate such models [Arif, 1999 and Faridi et al 2010]. SAMPLING Tahseel Gujrat is selected for this study and this study is based on the primary data, which is collected by conducting a survey among the selected population and interviewed them face to face. At first stage, the present study uses stratified sampling. The data on its union councils and its Mohallahs, is achieved from the 1998 consensus. The study considers Rural and Urban as two stratas. At the second stage, due to lacking of proper sampling frame, the study considers the two clusters as 44 rural union councils and 21 urban union councils out of total 67 union councils of Tahseel Gujrat. By using the SPSS software, the number of elements i.e. rural and urban UCs, are selected from each cluster as 8 UCs from rural and 4 from Urban UCs. It is total of 12 UCs selected the survey to collect the data. As one rural UC covers on average 7 villages while one urban UC covers 10 mohallahs on average. From each rural and urban selected UCs, two villages and two mohallahs are selected by using the SPSS software through the simple random technique. Five respondents are selected from each selected village and mohallah by using the purposive sampling to fulfill the targeted sample size 120. MODEL On the base of preceding discussion and existing literature such as, Arif (1999), woodruff and Zenteno (2004), Adams, R (2005) Dornates and Poze (2006) and Adams et al (2008) the given model is employed to estimate the role of remittances in entrepreneurship development. Eq. 1 “Li” stands for Logit model and the log of odd ratios is linear not only in explanatory variables but also in parameters. ENT = Entrepreneurship AREM = Amount of Remittances annually EDB = Experience in Doing Business DCA = Domestically Credit
  40. 40. 34/ Remittances and Enterpreneurship Development Availability PMS = Post Marital Status Cont E = Contact with entrepreneur PAb = Profession in Abroad Entrepreneurship is used as dependent variable and binary in nature as 1 = the remitter family initiate an enterprise and 0 = otherwise. P if Ent = 1 and 1-P if Ent = 0. The remitter family is asked that they have initiated any business after migration. Remittances are defined as the amount of remittances received by the migrant family and used in continuous form in the model. Post migration marital status of the migrant is used in nominal form in the model and experience in doing business means the family business experience before initiating current business and employ in nominal form as 1 = Yes and 2 = No. The contact with the entrepreneurs in the society is also employ in nominal form 1 = Yes and 2 = No. Domestic credit availability facility is used in nominal form in the model 1 = Yes and 2 = No. Profession in abroad is used in nominal form in the model 1 = Business man and 0 = otherwise. They are employed as independent variables in the model ( Gujrati, 2004) RESULTS AND DISCUSSION The reliability statistics of the data is given in Table 1. Cronbach’s Alpha is the most common measure of internal consistency (reliability). A commonly rule of the thumb for describing the internal consistency using Cornbach’s Alpha is as alpha is greater than 0.7. Table 1 Reliability Statistics Cronbach’s Alpha N of Items 0.851 20 Table 6.1 is showing the test statistics for the reliability of the data and the score of Alpha is 0.851 which shows a high level of internal consistency for our scale with this specific sample. DESCRIPTIVE ANALYSIS The descriptive analysis for the respondents is give in table 2 which tells that for each urban 1.3 rural are available and the mean age is 31 years which shows that it is 13.119 varying from its mean. Table 2 Descriptive Statistics of Respondents Variables N Minimum Maximum Mean Std. Devi ation the respondent Location of 120 1.00 2.00 1.39 .49 Education of the 120 .00 3.00 1.70 .91 respondent Marital status of 120 1.00 4.00 1.47 .54
  41. 41. Jubran Khalid / 35 the respondent Age of Respondent 120 16.00 81.00 31.16 13.19 Member of Family 120 2.00 19.00 7.32 3.12 As for the member of the family, 2 is minimum and 19 is maximum and on average 7.3 members of the family live in a house. Table 3 Pre-Migration Descriptive Analysis Variable N Minimum Maximum Mean Std. Dev iation Locality 120 1.00 2.00 1.36 .48 Marital status 120 1.00 2.00 1.27 .45 Age 120 1.00 45.00 24.80 5.77 Education 120 .00 3.00 1.58 .82 Table 3 explains the pre migration descriptive for the emigrants, which explain that against one urban 1.3 rural are emigrants and their mean age is 24 years which is 5.77 varying from its mean. Table 4 Post Migration Descriptive Analysis Variables N Minimum Maximum Mean Std. Dev iation Age 120 22.00 60.00 34.60 10.02 Location 120 1.00 2.00 1.42 .49 Education 120 .00 3.00 1.60 .82 Marital status 120 1.00 2.00 1.71 .45 Table 4 shows post migration that the average age of the emigrants is 34 and against 1 urban 1.4 rural is available. More of the emigrants are married after their migration as compare to their pre-migration. As for the education, it remains same for pre-post migration for the emigrants. DEMOGRAPHIC PROFILE OF RESPONDENTS Table 5 presents demographic profile of the respondents including their age, education, marital status, member of the family and family system by location. Education is highly significant among these variables as the p-value is (0.001). It means there is significant variation in education level among rural and urban i.e. rural and urban differ due to their education. Those who live in urban location are more educated than those who live in rural areas.
  42. 42. 36/ Remittances and Enterpreneurship Development Table 5: Demographics of Respondents Source: own survey *shows the significance at 1% level of confidence Figure 1: Locality Figure 2: Marital Status The Figure 1 is showing that 39 percent of the respondents live in rural area where as 61 percent are living in urban areas. Figure 2 is showing that the population, which is selected for survey, 45 percent is married and 54 percent are single. However, the 1 percent is who is widower. DEMOGRAPHIC PROFILE OF MIGRANTS Migrants’ demographics are given in Table 6 including their education, Variables Location Education* Illetrate SSC HSC Graduation+Above Rural 3 40 20 10 Urban 4 11 12 20 Total 7 51 32 30 X2 = 17.138 df = 3 Sig. = 0.001
  43. 43. 38/ Remittances and Enterpreneurship Development showing that most of the emigrants are single as 72 percent are single and only 28 percent are married at the time of migration. BUSINESS DEVELOPMENT AND SOME INDEPENDENT VARIABLES Table 7 discusses the analysis for some of the independent variables with respect to the business initiation with the help of remittances. Six out of ten variables are statistically significant and have significant variation with respect that do remittances help them to initiate a business? Country of migration (0.007), family business experience before initiating this business (0.000), contact with the entrepreneur in the society (0.000), and amount of remittances (0.007) are significant at 1 Percent level of confidence while domestic credit availability (0.071), migrant marital status during migration (0.072) are significant at 10 Percent level of confidence. Table 7: Business Development and Some Independent Variables Source: own survey *shows significance at 1% level of confidence Variables Do remittances help you to initiate a business? Country of Migration* Middle East Europe African countries USA Otherwise 38 16 7 1 Yes 25 28 1 4 Total 63 44 8 5 X2 = 12.135 df = 3 Sig. = 0.007 Marital Status of Migrant*** Single Married Otherwise 22 40 Yes 12 46 Total 34 86 X2 = 3.230 df = 1 Sig. = 0.072 Family Business Exp* Yes No Otherwise 20 42 Yes 50 8 Total 70 50 X2 = 35.884 df = 1 Sig. = 0.000 Contact with Ent* Yes No Otherwise 20 41 Yes 48 10 Total 68 51 X2 = 30.316 df = 1 Sig. = 0.000 Domestic Credit Ava.*** Yes No Otherwise 18 43 Yes 26 31 Total 44 74 X2 = 3.269 df = 1 Sig. = 0.071 Amount of Remittances (000)* 100-499 500-999 1000-1499 1500 + above Otherwise 41 15 1 1 Yes 27 17 6 8 Total 68 32 7 9 X2 = 12.023 df = 3 Sig. = 0.007
  44. 44. Jubran Khalid / 39 **shows significance at 5% level of confidence ***shows significance at 10% level of confidence The p-value (0.007) for the country of migration shows that those migrants who are residing in the Middle East are 63 of which 25 initiated their own business with the amount of remittances and 44 are those who lives in Europe of which 28 has initiated their own business with remittances. The migrants who are in Europe direct more remittances in initiating the business than those who are in Middle East. The families who have business experience use the amount of remittances significantly in initiating the business after the migration of family member. The p-value (0.007) for the amount of remittances shows that it is highly significant that those who receive 100-499 thousand rupees yearly as remittances are 68 of which 27 say that they have initiated a business and 41 say they have used for other purposes. As the amount of remittances increase from 100-499 thousand, the proportion of those who don’t spend on business development decrease and they shift the amount of remittances into business development. Contact with the entrepreneurs in the society also show positive association to initiate a business with remittances. Domestic credit availability and marital status shows significant association with business initiation. However, four variables, education of the migrant (0.606), duration of stay in abroad (0.288), profession in abroad (0.181) and age of the migrant (0.183) show no significant difference in initiating a business. It means that these variables don’t affect to initiate the business decision significantly i.e. no significantly association between these variables and initiating a business. () shows the p-values ECONOMETRIC ESTIMATION OF THE MODEL The logistic regression is given in Table 8. In Table 8, the value of Cox and Snell R-square, value of Nagelkerke R-square and the number of the cases are also given. The value of Cox and Snell R-square (0.595) shows the goodness of fit of the model i.e. 60 Percent variation in dependent variable is explained by the logistic model i.e. the independent variables and the value of Nagelkerke R-square (0.804) indicates that there is strong relationship of 80.4 Percent between the independent and the dependent variables.
  45. 45. 40/ Remittances and Enterpreneurship Development Table 8: Binary Logistics Regression Analysis of Remittances and Entrepreneurship Development Source: own survey *shows significance at 1% level of confidence **shows significance at 5% level of confidence ***shows significance at 10% level of confidence The odd ratio of amount of remittances is showing that it is not very much influencing the dependent variable. Family business experience before initiating the business is highly significant in the model and positively related with the dependent variable that higher the family experience in business leads more the probability that they direct the amount of remittance to initiate an enterprise. The model predicts that the odds of developing entrepreneurship 22.660 times higher for those who have family business experience than those who don’t have family business experience. The odds ratio of entrepreneurship development is 4.963 times higher for those who are self-employed (businessman) in abroad than those who are not self-employed. The odds of entrepreneurship development show that 4.244 times is higher for those who have domestic credit availability than those who don’t have domestic credit availability. Post migration marital status of the emigrant negatively influencing the entrepreneurship development as the odds of entrepreneurship development 0.214 shows that married spend less as compare to those who are single. However, the contact with entrepreneurs in the society comes out to be insignificant. ENTREPRENEURSHIP Table 9 is showing that in which field the focus of enterprises is high. Trading and Agriculture are significant at 1 percent level and there is high association between these variables and remittances. Those who say that remittances help them to initiate a trading business are 48 people out of total Variables Parameters SE Wald Sig. Exp(B) Contact with Entrepreneur -0.502 0.855 0.344 0.557 .606 Domestically Access to Credit 1.446*** 0.851 2.884 0.089 4.244 Marital Status -1.542*** 0.895 2.969 0.085 0.214 Profession in Abroad 1.602*** 0.895 3.204 0.073 4.963 Family Business Experience 3.121* 0.971 10.324 0.001 22.660 Amount of Remittances 0.0000051909* 0.0000013459 14.876 0.000 1.000 Constant -4.975* 1.092 20.775 0.000 .007 Cox and Snell R-square 0.595 Nagelkerke R-square 0.804 N 120
  46. 46. Jubran Khalid / 41 population while 3 say remittances don’t help them to initiate this business and 72 respondent inform that they don’t have trading business and 13 are those who say that remittances help them to develop the business other than trading. Table 9: Remittances and Entrepreneurship As for the agriculture, 6 respondents report they develop agriculture with the help of remittances and 0 responses receive by the respondents for other than agriculture. As for the real estate business, only 5 respondents give response that remittances help them to initiate real estate business and 0 of others and 115 are those who inform they have initiated a business other than real estate of which 53 say remittances help them to initiate this business. CONCLUSION Remittances work like energy for the economy and without it the sustainable growth not possible. The present era is also entrepreneurship and innovation based. The present study measures the role of remittances in entrepreneurship development in Gujrat. Including the six independent variables such as amount of remittances, family business experience, credit availability, marital status, profession in abroad and contact with the entrepreneurs in the society, the binary logistic regression is employed to estimate the model. The results and findings of the study confirm that there is no association between amount of remittances and entrepreneurship development but for those who have family business experience is highly significant in the model and show positive association with the dependent variable in business initiation. The other variables also give positive association except the marital status. The families with business experience shows a highly significant impact on the entrepreneurship development as its odd ratio shows 22 times higher to initiate an enterprise than those who don’t have business experience. Likewise, the credit availability and profession in abroad also considerably affect the probability to start a business (Table 8). Variables Do Remittances help you to initiate a business? Trading* otherwise Trading Otherwise 59 3 Yes 13 45 Total 72 48 X2 = 66.079 df = 1 Sig. = 0.000 Agriculture* otherwise Agriculture Otherwise 62 0 Yes 52 6 Total 114 6 X2 = 6.751 df = 1 Sig = 0.009 Real Estate** otherwise Real Estate Otherwise 62 0 Yes 53 5 Total 115 5 X2 = 5.577 df = 1 Sig. = 0.018
  47. 47. 42/ Remittances and Enterpreneurship Development Table 9 gives the glimpses of the entrepreneurship development and fulfills the second objective of the study as more of the respondent response that they have directed more of the amount of remittances to initiate the trade- base business as shop of mobile, grocer, cycles, oil agency, poultry farm, etc. as compare to the agriculture and real estate businesses. So, the study concludes that people develop enterprises more in trading field than any other. In short, the entrepreneurship works like the software for the economy but due to some problems like policy instability, tax regulations, legal insecurity, market failure and poor access to credit prevent the migrants’ households to take risk of investing the money in entrepreneurship development. REFERENCES Alessandra Alfieri , I. H. V. H. (2005). Definition of Remittances and Relevancy BPM5 Flows. UN Statistics Division, (1 Febuary 2005), 9. Arif, G. M. (1999). Remittances and Investments at Household Level: PIDE. Arif, G. M. (2009). Economic and Social Impacts of Remittaces on Households: The Case of Pakistani Migrants Working in Saudi Arabia. Route des Morillons, 1211 Geneva 19, Switzerland: International Orgnization for Migration. Balance of Payment Compliation Guide (1995): IMF Castaldo, R. B. A. (2007). Return Migrationn and Entrepreneurship in Ghana and Cote Divoire: The Role of Capital Transfers. Tijdschrift voor Economische en Sociale Geografie, 1(2008), 15. Catia Batista, T. M.C., and Pedro C. Vicente. (2010). Return Migration and Entrepreneurship in Mozambique. Chandavakar, A.G. (1980) Use of Migrants’ Remittances in Labour- Exporting Countries. Finance and Development 17. Chemin, M. (2008) Entrepreneurship in Pakistan: Government Policy on SMEs, Environment for Entrepreneurship, Internationalization of Entrepreneurship and SMEs. Cordova, E. L. (2004). Globalization, Migration and Development: The Role of Mexican Migrant Remittances. Cuervo, A. (2005). Individual and Environmental Determinants of Entrepreneurship International Entrepreneurship and Management Journel 1, 293-311. Docquier, H. R. F. (2005). The Economics of Migrants’ Remittances. Doing Business in a More Transparent World. (2012). 1818 H Street, NW: Washington, DC 20433: World Bank. Dr. Muhammad Zahir Faridi, D. I. S. C., & Dr. Mumtaz Anwar & Asma Majeed (2010). The Determinants of Self-Employment in Pakistan: Evidence from Primary data Analysis. Journal of Political
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  51. 51. 46/ A Study of Success factors.............. Expansion of a Business ISSN NO. 2394-8965, GJMMS VOL -1, Issue -1, JAN- MAR -2015 ASTUDYOFSUCCESS FACTORS IN INTERNATIONALEXPAN- SION OFABUSINESS Dr. Munawwer Husain Visiting Associate Professor School of Business Management College of Business University Utara Malaysia ABSTRACT Studies have been made on how companies use the Internet as a tool in their expansion strategy, however an overlooked field has been how Internet companies expand their business internationally. Varying generality has been identified within these areas, with the organizational structure, marketing and sales, and economic factors being the most standardized amongst the case study subjects. the results can be used as an example of general success factors in international expansion by other Internet-service companies. KEYWORDS: SUCCESS FACTORS, INTERNATIONAL EXPANSION, MARKETING STRATEGIES 1.INTRODUCTION: The Internet has enabled international expansion possibilities for business which before only was limited to those of certain organization size and financial strength. The structural IT-development within the last decade and the break-through of the Internet has had an extensive impact on global commerce. The Internet is one of the fastest growing communication channels in the world (International Telecommunication Union 2008) with a regular estimate of almost 1.6 billion user (Internet World Statistics 2009) . The Internet has set new standards for communication and rationalized information sharing peer-to-peer. A large number of new business models have been invented through the use of Internet, as well as creating a new market space for all modern businesses of today. The internationalization is a key process for Internet companies although there are several barriers including geographical- and cultural factors depending on the country expanded to. Variations can therefore be required in the service delivery as well as organizational structure. Also different countries require specific marketing and sales strategies as well

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