ENTREPRENEURSHIP IN TOURISM AND ALLIED ACTIVITIES JYOTIRMOY GHOSH Dr.G

286 Pages·2011·1.98 MB·English

ENTREPRENEURSHIP IN TOURISM AND ALLIED ACTIVITIES
(A STUDY OF BANGALORE CITY IN THE POST LIBERALIZATION PERIOD)

Thesis submitted to the Pondicherry University
for the award of the Degree of
DOCTOR OF PHILOSOPHY IN MANAGEMENT

By

JYOTIRMOY GHOSH
Assistant Professor, R.V. Institute of Management
Bangalore

Under the Guidance of

Dr.G. ANJANEYA SWAMY
Professor and Head, Department of Tourism Studies

DEPARTMENT OF MANAGEMENT STUDIES
SCHOOL OF MANAGEMENT
PONDICHERRY UNIVERSITY
PUDUCHERRY-605014
INDIA

MAY 2011
Dr. G. ANJANEYA SWAMY, Ph.D.
Professor and Head
Department of Tourism Studies
School of Management
Pondicherry University
Puducherry–605014.

CERTIFICATE
Certified that the thesis “ENTREPRENEURSHIP IN TOURISM AND
ALLIED ACTIVITIES (A STUDY OF BANGALORE CITY IN THE POST
LIBERALIZATION PERIOD)” submitted by Mr. JYOTIRMOY GHOSH, Assistant
Professor, R V Institute of Management, Bangalore is a record of research work
carried out by him for the Degree of Doctor of Philosophy under my guidance.
This thesis is an original work of the candidate and to the best of my
knowledge has not been submitted, in part or in full, for any Diploma, Degree,
Associate ship, Fellowship or other similar titles in this or any University. No
portion of the thesis is a reproduction from any other source, published or
unpublished, without acknowledgement.

Date: Dr. G. ANJANEYA SWAMY
Station: Puducherry

ii
JYOTIRMOY GHOSH
Ph.D. Scholar
Department of Management Studies
School of Management
Pondicherry University
Puducherry–605014.

DECLARATION
I hereby declare that the thesis “ENTREPRENEURSHIP IN TOURISM AND
ALLIED ACTIVITIES (A STUDY OF BANGALORE CITY IN THE POST LIBERALIZATION
PERIOD)” is the result of a study originally carried out by me under the guidance
and supervision of Dr. G. ANJANEYA SWAMY, Ph.D Professor and Head,
Department of Tourism Studies, School of Management, Pondicherry University,
Puducherry-605014. This work has not been submitted earlier, in full or in part for
any Diploma or Degree in this or any other University.
I also declare that no part(s) of the thesis is / are a reproduction from any
other source, published or unpublished, without acknowledgement.

Date: JYOTIRMOY GHOSH
Station: Puducherry

iii
ACKNOWLEDGEMENTS
I express my worshipful gratitude to God Almighty without whose grace;
nothing is possible in this universe or beyond that.
I am greatly indebted to Dr. G. Anjaneya Swamy, Ph.D, Professor and
Head, Department of Tourism Studies, School of Management, Pondicherry
University, Pondicherry 605014, for his inspiring and scholarly guidance during
my research. It has been a pleasure and privilege to work under his supervision.
I hereby acknowledge my deep sense of gratitude to him for his strenuous effort
and for devoting his precious time in guiding me with valuable suggestions right
from the selection of topic to the completion of this work.
Dr.R.Prabhakara Raya, Head of the Department of Management
Studies, Pondicherry University, also inspired me from the synopsis presentation
time till the completion of my thesis work. I am greatly indebted to Prof.
Dr.Prabhakara Raya for his contributions to my work.
Simultaneously I am grateful to Dr. Sampad Kumar Swain, Reader of
Department of Tourism Studies, School of Management, Pondicherry University,
for helping me in the statistical work and the use of SPSS for analyzing my data.
The other respected doctoral committee members of School of
Management, Pondicherry University, who imparted their valuable advice and
enthusiasm to me in my research work were Dr. Basheer Ahmed Khan, Ph.D,
Professor and Dean, School of Management and Dr. K. Mohan, PhD Professor
and Head, Department of International Business, definitely deserves my greatest
reverence. Dr.M.Kanthan, Assistant Professor at Kamarajar Arts College,
Puducherry constantly helped me in my thesis compilation and submission.
I express my gratitude to Prof Sreeja Bhattacharya of MBA Department
Christ University Bangalore for providing me the SPSS support and for her
valuable advice on presenting my statistical reports correctly. Dr. Srikanta
Swamy, Joint Director of Research Center, Christ University provided me with
valuable guidance to proceed in my research work.
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At RV Institute of Management, the Hon. Secretary Sri A.V.S. Murthy
and Sri D.P.Nagraj, the Joint Secretary both motivated me to complete my PhD.
Dr.T.V.Raju, the Director and Dr.R.K. Gopal the Head of the Department,
both of RVIM, were a constant source of inspiration for me to progress in my
research work.
I will fail in my duty if I do not express my heartfelt thanks to the
librarians of the Bangalore University library, the National Library and the
Karnataka Government records and gazettes library where I had free access for
being a member of the teaching fraternity.
I also acknowledge with gratitude the contributions of all the authors
whose works I have referred to. My thanksgiving is also extended to all the
numerous people whom I interviewed or served my questionnaires. I stand
indebted also to all authors whose work I would have directly or indirectly used
and have failed or overlooked to express.
Lastly I have to acknowledge with rather guilt that I could not devote
quality time to my wife and my daughter during the long tenure of my research. I
do acknowledge my helpless gratitude to my wife Smt. Krishna Ghosh and my
daughter Ms.Baijayanti Ghosh who sacrificed and stood beside me, in my time
of trial.
- Jyotirmoy Ghosh

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C O N T E N T S

Page No.
CHAPTER I:
AN OVERVIEW OF ENTREPRENEURSHIP 1
Conceptual framework of Entrepreneurship 2
Role of Entrepreneurship in Economic Development 11
Theories of Entrepreneurship and Entrepreneurial Motivation 19
References 29

CHAPTER II:
RESEARCH IN ENTREPRENEURSHIP 32
An Overview of Services Sector 33
Tourism and Hospitality services 36
Review of Literature 43
Need for the Study 58
Research Methodology 64
References 78

CHAPTER III:
OVERVIEW OF TOURISM IN BANGALORE 82
Bangalore – The Garden City 83
Historical Evolution of Bangalore 83
Central and State Policies of Tourism Development 105
Tourism Entrepreneurship Opportunities in Bangalore 122
References 142

CHAPTER IV:
PROFILE OF ENTREPRENEURS AND THEIR BUSINESS
PERFORMANCE 143
Demographic Profile of the Entrepreneurs 143
Age of Entrepreneurs and Delivery of Quality Service 148
Business Performance of the Respondents 177
Application of Factor Analysis 194
Entrepreneurs of allied activities demonstrating the seven factors 208
References 213

CHAPTER V:
FINDINGS AND SUGGESTIONS 214
Findings 215
Suggestions 232
Conclusion 237
References 238

BIBLIOGRAPHY 240
ANNEXURES 256
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LIST OF TABLES

Table No. Page No.

2.1 GDP GROWTH OF INDIAN STATES 62
3.1 FOREIGN TOURIST ARRIVALS (FTA)
IN INDIA 1996–2008 112
3.2 FOREIGN EXCHANGE EARNING (FEE)
(IN RS CRORE) FROM TOURISM IN INDIA, 1996–2008 113
3.3 SHARE OF TOP 10 STATES / UTS OF INDIA IN
NUMBER OF DOMESTIC TOURIST VISITS IN 2007 124
3.4 SHARE OF TOP 10 STATES / UT OF INDIA IN NUMBER
OF FOREIGN TOURIST VISITS IN 2007 124
3.5 MAJOR FUTURE HOTEL SUPPLY IN BANGALORE
(AS AT MARCH 2008) 133
3.6 CITYWISE HOTEL OCCUPANCY 138
3.7 CITY WISE AVERAGE ROOM RATES (ARR) OF HOTELS 139
4.1 AGE OF THE RESPONDENTS 143
4.2 EDUCATION OF THE RESPONDENTS 144
4.3 PLACE OF ORIGIN AND AGE GROUPS 145
4.4 GENDER AND PLACE OF ORIGIN 146
4.5 GENDER AND EDUCATION 147
4.6 TYPE OF BUSINESS AND AGE 149
4.7 RESPONDENTS AGE AND SIZE OF BUSINESS 150
4.8 MOTIVATION TO START VENTURE AND
THE AGE OF THE RESPONDENTS 151
4.9 VENTURE GROWTH AND AGE OF RESPONDENTS 152
4.10 COMPETITION AND AGE OF RESPONDENTS 153
4.11 BRAND BUILDING EFFORTS OF THE RESPONDENTS 154
4.12 RESPONDENTS’ AGE AND BUSINESS BREAK-EVEN
PERIOD 155
4.13 AGE OF THE RESPONDENTS AND VENTURE
LIFE SPAN 155
4.14 ENTREPRENEURS GENDER AND TYPES OF
BUSINESS 158
4.15 RESPONDENTS’ GENDER AND SIZE OF BUSINESS 159
4.16 GENDER AND MOTIVATION TO ENTER BUSINESS 159
4.17 VENTURE GROWTH AND RESPONDENTS GENDER 160
4.18 PERCEPTION OF COMPETITION AND GENDER OF
RESPONDENTS 161
4.19 GENDER AND BRAND BUILDING EXERCISE 162
4.20 VENTURE BREAK-EVEN PERIOD AND GENDER 162
4.21 VENTURE LIFE SPAN AND RESPONDENTS GENDER 163
4.22 RESPONDENTS SIZE OF BUSINESS AND THEIR
PLACE OF ORIGIN 165

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Table No. Page No.

4.23 TYPE OF BUSINESS AND THEIR PLACE OF ORIGIN 166
4.24 ORGANIZATIONAL STRUCTURE AND
RESPONDENTS PLACE OF ORIGIN 167
4.25 MOTIVATION AND RESPONDENTS PLACE OF ORIGIN 168
4.26 RESPONDENTS DISPOSITION TOWARDS INNOVATION 169
4.27 VENTURE GROWTH AND PLACE OF ORIGIN OF
RESPONDENTS 170
4.28 COMPETITION AND PLACE OF ORIGIN OF
RESPONDENTS 171
4.29 BRAND BUILDING AND RESPONDENTS PLACE OF
ORIGIN 172
4.30 BREAK –EVEN PERIOD AND RESPONDENTS PLACE OF
ORIGIN 172
4.31 VENTURE LIFE SPAN AND RESPONDENTS PLACE OF
ORIGIN 173
4.32 MOTIVATION TO START VENTURE AND RESPONDENTS
PLACE OF ORIGIN 174
4.33 INNOVATIONS AND ENTREPRENEURS’ PLACE OF
ORIGIN 175
4.34 PERCEPTION OF COMPETITION 176
4.35 TYPES OF BUSINESS AND BRAND BUILDING 177
4.36 TYPE OF BUSINESS AND COMPETITION 178
4.37 TYPE OF BUSINESS AND BREAK-EVEN PERIOD 179
4.38 TYPE OF BUSINESS AND LIFE SPAN 180
4.39 STATEMENT OF MEAN RANK OF SOURCES OF
CAPITAL AND CHI–SQUARE TEST 182
4.40 MEAN RANK OF BUSINESS PROMOTION AND
CHI-SQUARE TEST 183
4.41 MEAN RANK OF TOURISM MOTIVATION WITH
CHI-SQUARE TEST 184
4.42 MEAN RANK OF REASONS FOR VENTURE SUCCESS
AND CHI-SQUARE TEST 185
4.43 MEAN RANK OF LIMITATIONS/BARRIERS TO VENTURE
AND CHI-SQUARE TEST 186
4.44 MOST VISITED COUNTRIES 188
4.45 INTERNATIONAL TOURISM RECEIPTS 189
4.46 INTERNATIONAL TOURISM TOP SPENDERS 190
4.47 KMO AND BARTLETT'S TEST 196
4.48 COMMUNALITIES EXTRACTED BY PRINCIPAL
COMPONENT ANALYSIS 197
4.49 STATEMENT OF TOTAL VARIANCE EXPLAINED OF
THE FACTORS EXTRACTED 198

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Table No. Page No.

4.50 ROTATED COMPONENT MATRIX OF THE EXTRACTED
SEVEN FACTORS 200
4.51 MATRIX SHOWING CORRELATIONS BETWEEN
THE SELECTED SEVEN FACTORS 202
4.52 STANDARD DEVIATION OF SEVEN FACTORS
(F1 TO F7) SET ACROSS THE ESTABLISHMENT SIZE 205
4.53 ANOVA TABLE OF SEVEN SELECTED FACTORS
AS ANALYZED BETWEEN AND WITHIN FIRM SIZE
GROUPS 207

LIST OF DIAGRAMS
Diagram No. Page No.

2.1 FOREIGN TOURIST ARRIVALS IN BANGALORE 63
3.1 PROGRESS OF AVERAGE ROOM RATES
IN BANGALORE 134
3.2 HOTEL ROOM OCCUPANCY RATE CHANGES IN
BANGALORE 135
3.3 COMPARATIVE AVERAGE ROOM RATES OF VARIOUS
CATEGORIES OF HOTELS IN BANGALORE 137
4.1 SCREEN PLOT 199

LIST OF MAPS

Map No. Page No.

3.1 HISTORICAL MAP OF BANGALORE, DURING
THE BRITISH REGIME 88
3.2 TOURIST MAP OF BANGALORE 91
3.3 MAP OF KARNATAKA WITH ALL DISTRICTS 103
3.4 TOURIST MAP OF INDIA 106

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CHAPTER I

An Overview of Entrepreneurship

•
Conceptual Framework of Entrepreneurship
•
Role of Entrepreneurship in Economic Development
•
Theories of Entrepreneurship and Entrepreneurial
Motivation

1