Entrepreneurship Among Brass Workers

Running head: ENTREPRENEURSHIP AMONG BRASS WORKERS 1

ENTREPRENEURSHIP AMONG BRASS WORKERS

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ENTREPRENEURSHIP AMONG BRASS WORKERS 2

Acknowledgement

I would like to thank Prof. Johnston Kay, my project supervisor for his support and

guide, which enabled me to accomplish this task. My appreciations also reach to

Madam Jenifer Martin, who together with my supervisor gave me the required

support in everything I did. My special thanks also extend to Dr. Mark David, for his

advice and guidelines in this research process. I am grateful for the assistance given

by the Fordham University Staff in the research process. My gratitude also extends to

Dr. Eliot Brown for his assistance, and the great advice which was based on the

history of religion. My gratitude also goes to the various religious leaders and

historians who helped me in my research process. I would also like to thank my

professor, Prof. Martha Gel, for her great guidance and help in the course work and

research process. The final thanks go to my family and friends, for the great help,

moral support, financial support, as well as the material support.

Abstract

Entrepreneurship among the brass workers has been an important aspect which has

transformed the society. The activities surrounding the production and the marketing

of brass commodities were determined by various factors, which contributed largely

to the act of entrepreneurship among many people. A majority of the people who

engaged in the brass work activities were influenced by the ability to enhance the

promotion of their entrepreneurial capacities, and the need to generate income for

their families. A majority of the products made from the brass were used in the

ancient kingdoms, although other products were used for other activities within the

society. However, entrepreneurship was the major focus of a majority of the society

ENTREPRENEURSHIP AMONG BRASS WORKERS 3

members, although, entrepreneurship was determined by various factors which

included capital availability, government support as well as the development of

various infrastructural channels.

INTRODUCTION

1.1 Entrepreneurship among the brass workers

Entrepreneurship is one of the old traditions which existed among people in the world.

Many people and even tribes adopted entrepreneurship for various reasons. In most

communities, business was the major source of income, while other communities got

into business to get what they did not have in their supply. However, in the wake of

technological development and enlightenment stage, new forms of businesses erupted.

Sri Lanka, there was the emergence of Small and medium sized businesses. The

process of entrepreneurship was strongly linked to small and medium-sized

enterprises (SMEs). In Sri Lanka, the SMEs form a great part of the market

economies. In most of the developed countries, the percentage of SMEs in the total

number of enterprises was more than 95%, while 60% of the available workforce was

employed in those firms (Schmiemann, 2008). Japan’s six million small- and

medium-sized enterprises (SMEs) employed around75 percent of the total Japanese

working population (Dana, 1998). Of the total 935,000 business establishments in

Taiwan, 96 percent of SMEs provided jobs to 78 percent of the island’s labor force

(Lin, 1998). More than 70 percent of all South Koreans work in firms that employ less

than 100 people (Lee, 1998). Micro and small enterprises (MSEs) were also the

leading force transforming the economic landscape of Africa. Ghanaian micro-

enterprises employing less than five people accounted for 70 percent of that country’s

ENTREPRENEURSHIP AMONG BRASS WORKERS 4

total workforce (Government of Ghana, 2003; The World Bank, 2006). In 2003,

Kenya’s private sector employed 3.2 million people and contributed almost one fifth

(18 percent) to the country’s gross domestic product (GDP) (OECD, 2005).

For a long period, traditional handcrafts served as a valuable and integrated

part of Sri Lankan society. Recently, a great number of the Sri Lanka citizens were

responsible for the supply of specific items of craft to the kingdom. There has been a

great impact on the craft development, especially for the citizens of Sri Lanka. The

increase in the socio-economic activities in the wake of the millennium caused a

decline in the demand for crafted items, which later made the business come to an

end. A majority of the people who were affected were workers from the Kriwawula

and Pamunuwa areas of the Pilimathalawa. With the major focus being on the

production of craft items, a majority were directed to the kingdom for use. The

traditional brass making techniques were passed from one generation to the other and

from father to son, which included the trade secrets which were to be kept all the

people.

The major focus of many studies conducted on the brass workers was in their

family business operations and the health hazards presented by the businesses.

However, entrepreneurship was not majorly focused on in the general process of

analyzing the brass workers. Entrepreneurship is more concerned with business

management and the daily operation of any business organization (Siropolis, 1997).

Entrepreneurship involves the process of extracting social and economic value from

the environment (Scott et al., 1977; Bridge et al., 1988).

According to Schumptere (1934) “the carrying out of new combinations was

enterprise, ” and the individuals whose function was to carry them out were called

entrepreneurs. Entrepreneurship involves the process of business organization,

ENTREPRENEURSHIP AMONG BRASS WORKERS 5

adoption of new technologies as well as new enterprises in the production of goods,

which are scarce (Petrin, 1991). Entrepreneurship is an important aspect, even to the

individual and family business organizations (Zahra et al., 2004). Entrepreneurship

depends on the development of internal competencies which reflect and even match

the market opportunities (Habbershom, 2001). Family businesses represent up to 90%

of the all businesses in the United States (Dumas, 1992; Hech and Trent, 1999; Kets,

De Vries, 1993). The levels of entrepreneurship generate up to 50% of GDP (Dyer,

1986). However, almost 30% of family businesses fail to survive through the second

generation and the third generation (Vries, 1993). With this background, the

proposed study attempts to explore some of the motivations, success factors, problems

and business related stresses, among the brass worker-entrepreneurs. Traditions and

religions played a major role in the production of traditional items. Some of the

religions such as Buddhism played a critical role in the lives of the brass workers

(Sah, 2011). A majority of the items produced were used in the worship areas to

make items which could be used for worship purposes. In the temples, decorations of

the god, Buddha, were made using items made from brass and gold, which was

produced by a majority of the people.

1.2 Significance of the research

This research would be able to identify the motivations, success factors,

problems and business related stress among the brass workers. Since there were no

research studies conducted in the past on brass worker-entrepreneurs, the findings of

this research would help to understand better the current situation of the brass

worker’s in the study area. Small and medium size business are the lifeline of the

regional economies, when there is employment, it will provide a chain of positive

ENTREPRENEURSHIP AMONG BRASS WORKERS 6

rewards to the regional economies, especially in a region like Kandy where the

geography played numerous barriers to different industries to thrive. The outcome of

this research would help to understand how a declining industry affects social

phenomenon like unemployment, poverty, education, and other industries and also

show, what the consequences are.

The findings of this research would help policymakers to identify the role of

entrepreneurship and design strategies to assist brass workers since they are facing

new market environments and challenges. Identification of problems related to

traditional brass workers and how interventions should be made to develop

entrepreneurship can help to improve the current situation, which will eventually help

the appropriate government and non-governmental institutes to find answers to the

persisting problems of the brass workers and similar traditional industries in Sri

Lanka.

1.3 Problem statement and Justification

Traditional handcrafts of Sri Lanka represent a national identity of Sri Lanka

and its culture. The specific subject of Brassware production is an important

subculture in Sri Lankan identity where it had nourished and helped the local

economy for centuries. Currently, the brass workers who engage in this industry are

facing a rapid decline due to low economic gains arising from numerous reasons. The

wider implications of the declining local brassware industry are on a social, economic

and cultural context that would lead to greater problems in the future. According to

the annual survey report of industries during the period 2007 and 2012 the output

value of the brassware industry was Rs 578,610,853, but in 2011 the output value

dropped down to 42,353,832. In 2006 there were 920(Annual survey of industries,

ENTREPRENEURSHIP AMONG BRASS WORKERS 7

Department of Census and Statistics 2007) persons engaged in establishments with

less than 25 persons engaged and in 2011 this amount has dropped to mere 32

persons(Annual survey of industries, Department of Census and Statistics 2012).

These statistics are at the national level, but when it comes to the local brass workers

and their families, the impact is devastating.

A developing country is characterized by various circles of poverty,” low

income leads to low savings; low savings imply low investments; which in turn

results in slow growth and reduction in employment ( Mendis et al.,1999). Each and

every business that operate in a specific region possesses significant vital impacts on

the area or the region of operation. According to the preliminary interviews done by

the researcher, it was found that earlier the brass industry had been a very good

income source for a person who can work hard and earn a healthy income by using

appropriate techniques and entrepreneurial skills. During the thriving period brass

industry in the area, there were at least 1500 indirect jobs related to the industry.

Because of these reasons it had contributed significantly to the local

economy. When the local industries face a severe decline the downfall of the other

related factors such as socio- economic and culture is inevitable. The reason is that of

the decline of the brassware industry in the said region, traditional brass workers had

shifted to other occupations in whom they were not specialized, and when the

brassware industry was declining leading to skilled labor, shortage, they had utilized

unskilled workers from distant places on a contract basis. This whole situation has

caused increased unemployment among the brass workers and related socio-

economic problems among them.

ENTREPRENEURSHIP AMONG BRASS WORKERS 8

Because of this problematic background, this research aims to explore the

“motivations, success factors and problems and stresses encountered by the brass

workers.”

1.4 Research Objectives

There are various research objectives which have been based on this study. Some of

the major objectives of this study include;

• Identification of the various motivations of the brass workers had engaged in

various fields. The identification of the motivational factors is to determine the

driving forces as well as the various issues affecting the growth of their

businesses.

• To gain an understanding of the problems encountered by the brass workers,

which were related to production, processing, transportation as well as the

marketing of their products.

• To explore the success factors of brass workers for succeeding as

entrepreneurs. The success story would help create an understanding of how

the market forces operated around the brass production.

• To explore how stresses can affect brass workers success, which was related to

the production processes, the transportation, as well as the marketing process

in various parts of Sri Lanka.

ENTREPRENEURSHIP AMONG BRASS WORKERS 9

LITERATURE REVIEW

2.1 Entrepreneur

An entrepreneur is an individual who can organize, manage and even bring

together the various the risks of a business or an enterprise, so as to make profits

(Webster, 2015). In General, entrepreneurship calls for a hard working person,

mentally disciplined as well as an individual who can make more profits than their

competitors. Entrepreneurs have the ability to organize the various economic

enterprises, with the ability to enhance the spirit of creativity and an individual who

bears the associated risks of business (Mavin, 2004). States that entrepreneurs have

the ability to go beyond the limits of resources over which they have direct control, as

they are capable of mobilizing resources through social networks (Bryant, 1989).

Entrepreneurs should be tough, pragmatic people driven by the need for independence

and have a high need for achievement and believe in self-employment, who should

never submit themselves to authority (Collins & Moore, 1970). Entrepreneurship is

based on the ability of an individual to take risks and to put one's career and financial

resources on the line of the idea being pursued by the entrepreneur and spending

his/her time on an uncertain venture (Drucker, 1970) and (Knight,1967).

As economic growth and technical knowledge is harnessed, opportunities

increase for the entrepreneurs and the potential for entrepreneurial discovery increases

(Kirzner, 1989). According to Wheelen and Hunger (2002), an entrepreneur possess

various characteristics, which include the following;

1. The ability to identify the potential ventures and business opportunities which

other people cannot identify in the market.

ENTREPRENEURSHIP AMONG BRASS WORKERS 10

2. A sense of urgency that makes an entrepreneur act swiftly towards the business

idea.

3. Possession of the market knowledge, as an important factor towards success in

the industry, as well as the physical stamina to make their work attain success.

4. Ability to access information and the possession of a backup information source,

to aid in their skills, knowledge, and abilities. Entrepreneurial skills are derived

from the active entrepreneurship process(Delmar and Davidson,2000)

Although entrepreneurship has been a wide area of discussion, various authors

have not agreed on the exact definition to be used in the explanation of the term.

However, different researchers have come up with different definitions for the terms

entrepreneur. However, in this study, entrepreneurship is the examination of the

quality of a business owner, who becomes a manager, thus, creating a strong and a

strategic resource plan used in improving the competitiveness of the firm

(Venkataraman, 1997) and (Shane & Venkataraman,2000). Entrepreneurship is a

combination of various factors which include; high levels of innovation, the need for

achievement, internal control, need for independence, need for responsibility, and the

need for power as crucial characteristics associated with entrepreneurs (Carland et al.,

1984). However, previous studies argued risk propensity as more associated with

ownership of the business rather than entrepreneurship (e.g. Schumpeter, 1934;

Brockhaus, 1980; Carland et al., 1984).

2.2 Entrepreneur characteristics

The most important traits of an entrepreneur include; creativity, ambiguity

tolerance, opportunity identification and venture evaluation, career assessment, deal

ENTREPRENEURSHIP AMONG BRASS WORKERS 11

making, networking, and ethical assessment. There are various elements possessed by

entrepreneurs, including; reality testing skills, creativity, ambiguity tolerance and

stress coping mechanisms. Hood & Young (1993) maintain that four primary areas

must be developed for entrepreneurial success, which focuses on content, skills and

behaviors, mentality and personality. They came to this conclusion by interviewing

100 leading entrepreneurs and chief executive officers (CEOs) in America’s fastest

growing entrepreneurial firms. Hood & Young (1993) found that content areas of

knowledge are those mainly addressed on business education, such as finance, cash

management, accounting, and marketing. Leadership, oral and written

communication, and human relations were the most important skills for successful

entrepreneurship (Hood & Young, 1993).

Moreover, mentality factors of entrepreneurship include; creativity,

opportunistic thinking, and vision. The fourth area refers to personality traits, which

are usually believed to be more stable and therefore, less likely to be changed (Hood

& Young, 1993). Brockhaus (1982) found that entrepreneurs have a greater internal

locus of control than the members of the general population; therefore, entrepreneurs

believe that the outcome of a business venture will be influenced by their efforts.

According to McClelland (1961), entrepreneur capabilities for achievement

are; risk taking ability, creatively, independence and internal control. Friedrich et al.

(2003) reported on the findings of McClelland’s Achievement Motivation training of

small businesses conducted in India and the USA in 1969. The results showed

evidence that Achievement Motivation Training significantly improved small

business performance, provided that there is some minimum support from the

economic infrastructure in the form of available loans, market opportunities, and the

labor availability.

ENTREPRENEURSHIP AMONG BRASS WORKERS 12

In the study conducted to investigate entrepreneurship capabilities of

university students, Reynaldo et al. (2002) found that the students were weakest in

opportunity seeking, risk taking, and self-confidence. Practicing entrepreneurs were

weakest in risk taking. Capabilities of students did not significantly vary by school,

age, gender, or the year level. Capabilities of practicing entrepreneurs considerably

differed by location and age, but were not discriminated by gender, the number of

years in service, and product type. The purpose of this study was to investigate

entrepreneurship capabilities of university students.

2.3 Motivation

The Impact of entrepreneurs’ motivation on their success is widely known in

the developed nations. There have been some studies conducted on this topic to

determine the relationship between motivation and entrepreneurs. Researchers’ like

Kuratko, Hornsby, and Naffziger (1997) and Robichaud, McGraw and Roger (2001)

surveyed entrepreneurs from North America to determine the motivation categories

that lead to business success. Their studies revealed that motivation of entrepreneurs

falls into four distinct categories, which include; the extrinsic rewards, the

Independence or autonomy, intrinsic rewards and the Family Security four categories

are sued in the determination of the motivational level of entrepreneurs which lead to

their business success.

One such survey focused on nascent entrepreneurs was conducted in the

United States (Edelman, Brush, Manolova and Greene 2010). The researchers found

out that the reasons why nascent entrepreneurs need to launch a business were the

same across the race, but there are substantial differences in the motivation to grow a

new venture in between black and white entrepreneurs. According to Blanchflower

ENTREPRENEURSHIP AMONG BRASS WORKERS 13

and Oswald (1998) people who are self-employed reported higher levels of job and

life satisfaction than employees.

Benzing, Chu, and Kara (2009) in their study of entrepreneurs in Turkey

presented comparative results of numerous research on entrepreneurs’ motivating

factors they had identified in different countries. For example, they cited Swierczek

and Ha (2003) on their study of Vietnamese small business owners and found that

challenge and achievement were more significant motivators than necessity and

security. In Romania, income and job security needs were stronger motivators than

self-satisfaction and personal needs (Benzing, Chu and Szabo 2005). But the

entrepreneurs in India were most strongly motivated by the desire for autonomy and

then to increase their income (Benzing and Chu 2005). In Turkey, entrepreneurs were

motivated to start their own business so they could provide security for themselves

and their family and to increase income (Ozsoy, Oksoy and Kozan 2001).In addition

to the above-mentioned findings; Benzing, Chu, and Kara (2009) also presented

research findings from African countries. Ugandan entrepreneurs were found to be

motivated by “making money (Bewayo 1995). A study of entrepreneurs in Kenya and

Ghana (Chu, Benzing and McGee 2007) revealed that the strongest two motivators

were to increase income and to provide employment to them.

According to two researchers, Roy and Wheeler (2006) microenterprise

owners in West Africa were motivated by a desire to satisfy basic physiological needs

like food and shelter. According to different studies conducted by scholars on

entrepreneurs and managers, it was shown that entrepreneurs have higher

achievement motivation than the managers (Stewart and Roth 2007; Collins, Hanges

and Locke 2004; Begley and Boyd 1987; Ahmed 1985; Lachman 1980). It is accepted

that high level of achievement motivation is consistent with the demands of the

ENTREPRENEURSHIP AMONG BRASS WORKERS 14

entrepreneurial role, which appears to attract highly achievement-motivated

individuals because of the potential to derive more achievement satisfaction in an

entrepreneurial setting, a context that provides the challenge, autonomy, and

flexibility for achievement realization (Stewart and Roth 2007). Daily found that

entrepreneurs are less constrained by organizational systems and structures (Daily et

al. 2002) and the entrepreneurial role is less specialized, standardized and formalized.

Stewart et al. (1999) discovered that entrepreneurs, who are primarily growth-

oriented, were higher in achievement motivation than were the managers and “small

business owners,”

Motivation level for venture founders is likely to be attributable to the

circumstances associated with the founding and leading the ventures to success.

Venture creation appears to present the type of task challenge, and lack of routine

attracts very highly motivated individuals (Stewart and Roth 2007). In conclusion,

entrepreneurship is based on various factors of motivation, which help to propel the

business forward and even generate a more focused basis for development.

2.4 Success factors

Entrepreneurship depends on various factors so as to enhance success.

Business operations need keenness and attention to the details, which help to avoid

mistakes and even generate a more focused state. Some research studies had been

devoted to the subject of the factors that contribute to success among the

entrepreneurs. According to the findings by Carter and Cannon (1992), being able to

adapt management skills from previous working experience and training was

considered very important. Cuba, Decenzo, and Anish (1983) found that in addition to

education and experience, delegation skills have a positive impact on enterprise

ENTREPRENEURSHIP AMONG BRASS WORKERS 15

success. Buttner (1993) argues that endurance and hard work are key success

ingredients for women entrepreneurs to compete with their male counterparts. Since

there are large numbers of studies conducted on this subject matter, different kind of

variables have been identified as factors that influence the success of SMEs, but most

of these studies were focused on a limited number of variables. Some of the major

factors of success in entrepreneurship include; the psychological and personality traits

of entrepreneurs, the managerial skills and training of entrepreneurs and the external

environment (Benzing, Chu and Kara 2009). Psychological attributes such as a drive

for independence, innovative orientation, attitude towards risk and a competitive

nature were found to be related to success (Frese, Brantjes and Hoorn, 2002),

According to Rauch and Frese (1998), the psychological traits contribute to

the success of SMEs, but these traits can be moderated with individual experience and

training, Managerial skills would include the ability to manage personnel and

maintain accounting records. The environmental conditions are related to satisfactory

government support, access to capital and support of family and friends (Benzing,

Chu and Kara 2009). Numerous authors have contributed in-depth studies in the field

of impact of the owner or the managerial knowledge and expertise on the success of

their SMEs (Daily et al. 2002; Temtime and Pansiri 2005; Ghobadian and O’Regan

2006). Technologically advanced in the present society is an important aspect of

success to many businesses, especially on start-up businesses, where it is widely

acknowledged (Elfring and Hulsink 2007). The strategic use of social networks can be

attributed to attracting a large number of customers in a short period. Studies carried

out by Pirolo and Prsutti (2010) show the positive impact of both strong and weak

inter-organizational social capital on the growth of start-ups economic performance

during all its life cycle. Good internal organization of a business creates more chances

ENTREPRENEURSHIP AMONG BRASS WORKERS 16

of expansion, as well as the development of a strong foundation for employee and

employer satisfaction. Runyan, Droge, and Swinney (2008) empirically found that

there was a significant difference in the impact of small business orientation (SBO)

and entrepreneurial orientation (EO) on firm performance. For younger firms, only

EO was a significant predictor of performance, while for owners of the business for

eleven or more years, only SBO was significant. The findings suggest that when a

person is emotionally attached to the business while they are trying to balance their

personal life, then, they become more successful. Nadkarni & Narayanan (2007)

found out that the younger small businesses continued to rely on the strength of the

owner’s EO for positive performance. It has been argued that one of the key factors in

the success of a new venture is the dominant logic of the firm (Nadkarni &

Narayanan, 2007). Entrepreneurial talent, which is one of the functions of observable

characteristics, determined the size of the business (van Praag & Cramer, 2001).

According to this study, the individuals who have talent have a great chance for

developing their business ventures, but other than the talent they also need to have the

capacity to take risks, although they have to incorporate motivation to bear the risk,

they must also be able to bear risk (Say, 1971).

2.5 Problems Encountered

The challenges faced by entrepreneurs in developing countries are different in

nature when compared with the developed nations, and some of these are monumental

and quite similar to the other developing countries. The most common challenge

found among these was the unstable and highly bureaucratic business environment

which governs each of the developing nations. Few notable areas highlighted were,

the laws governing private enterprises, especially business registration and taxation

ENTREPRENEURSHIP AMONG BRASS WORKERS 17

systems, which were perceived to be overly complex and difficult to understand.

Contract and private property laws were often poorly designed and enforced.

According to the findings by Kiggundu (2002), Pope (2001), and Stevenson

(1998) the unfavorable institutional or regulatory environment was the main cause for

added expenses for corruption and bribery in the developing nations. Other problems

that persisted within these countries were poor macroeconomic policies, limited

access to short-term and long-term financial capital, and a lack of managerial

experience. Results from a survey that involved more than 3600 entrepreneurs in 69

countries, (Kisunko et al., 1999) showed that the most critical problems faced by

business owners in South Asia and Southeast Asia were the high taxes and tax

regulations. Other than the above-mentioned problems Inadequate infrastructure,

inflation, labor regulations, and regulations governing the starting and running a

business were cited as the prominent problematic areas.

In the ancient world, trade was a major problem due to the many obstacles

related to the exercise. Some of the problems which faced the brass workers in the

production, processing as well as marketing process included poor infrastructure,

corruption, high taxes, and tax regulations. In the modern world, such as in the Latin

America, SME business owners considered corruption and inadequate infrastructure

as some of their worst problems in doing business. High levels of crime and theft,

financing, high taxes and tax regulations are also major problems which faced the

ancient brass workers as well as the modern business operations in the world. Ther

problems which faced the brass workers, as well as the modern entrepreneurial

businesses include the high levels of corruption, tax rates, inadequate infrastructure,

inflation, crime, theft and financial problems.

ENTREPRENEURSHIP AMONG BRASS WORKERS 18

Research studies conducted on the small businesses in East African countries

(Tanzania, Kenya, and Uganda) indicated that the private sector is overregulated with

regulations that overlap and duplicate each other at central and local levels which are

extremely harmful to the entrepreneurs. Macculloch (2001) observed that

entrepreneurs were often subject to lengthy and costly delays in getting clearances and

the approval process (Macculloch, 2001). According to the World Bank and IMF

economists, the number one problem faced by Ghanaian entrepreneurs was

inadequate access to credit, and the high rates of loans which make it difficult for

business owners to finance their businesses (Chamlee-Wright, 1997). Steel and

Webster (1991) also reported that the most serious challenge encountered by

Ghanaian business owners was the unavailability of capital, which is critical for the

expansion and sustaining of any business. In fact, most small-scale entrepreneurs

were not very good prospects for banks and financial institutions. They have little

means for collateral and lack formal education/training in business practices. As a

result, they posed more risks than benefits to the banks and other financial

establishments (Morewagae, Seemule & Rempel, 1995) Because of these reasons the

small business owners could not get financial help from the banks.

Frequent harassments by government officials who extorted money from

businesses operators are a major source of demoralization for many people. Poor

infrastructure including bad roads, water shortage, erratic electric supply, and poor

telecommunication system represented additional challenges faced by small business

owners (Mambula, 2002). Difficulty in gaining access to bank credit and other

financial institutions had become a major obstacle hindering the progress to many

business owners and operators. The major issue which has affected the people in the

past as well in the modern days is the lack of government interest and support for a

ENTREPRENEURSHIP AMONG BRASS WORKERS 19

majority of the MSEs (Ariyo, 2005). This poor attitude toward the private sector

explains why there has never been any real attempt on the part of a government to

develop any programs or lasting policies to support small businesses. In general,

entrepreneurs have faced the same set of problems as those of business owners around

the world. Similar adverse attitudes of the government officials can be found in other

developing nations as well, and the stance of government toward the private sector

seems to create a most damaging effect on micro and small enterprises (MSEs).

2.6 Stress and Business Ownership

Stress is believed to be an integral part of business ownership, resulting from

the heavy workloads, and excessive risks involved (Palmer, 1971). Stress is also

caused by the higher need for achievement by entrepreneurs (Brockhaus, 1982;

Langan-Fox & Roth, 1995). Stress is an internal reaction to whatever a person

believes to be a threat to him or her, whether it is a real or imagined (Clark & Watson,

1991). Consequences of a high level of stress may be observed in the forms of

absenteeism from work or even learning institutions, increased accidents, and increase

in health care cost. Other factors include the declining in the levels of productivity

(Roberts, Lapidus & Chonko, 1997; Crampton et al., 1995; Hall & Savery, 1986).

Stress For the brass workers, stress was also part of their lives, where, they were

subjected to heavy duties, long working hours as well as transportation problems.

Researchers have attributed stress to many causes, one being where demands

exceed perceived resources supply (Chay, 1993). When demands increase and the

supply of resources decrease, then there is a high level of stress to a majority of the

people. Stress arises from expectations, greed, desires and ambitions which in one

way or the other have not been met, or have failed to show consistency with the plans

ENTREPRENEURSHIP AMONG BRASS WORKERS 20

of an individual (Vasumathi et al. (2003). Long working hours, high levels of

competition, high pressure for unmet deadlines, excessive rules and regulations,

inadequate support, workload and personal conflict are major sources of stress to

entrepreneurs (Roberts, Lapidus & Chonko, 1997; Crampton et al., 1995; Hall &

Savery, 1986). There are, however, other sources of stress, which include; loneliness,

the time demands of business, conflicts with partners and employees and their needs

for achievement (Akande, 1994).

There were cases of stress among the brass workers, where the long hours of

work and association with different parties made it difficult for the business owners to

run their businesses easily. Stress was eminent where sales and production activities

had to be combined to produce quality products and services to the customers.

Finally, small business owners are hard drivers for success and failure to succeed

causes stress. As indicated earlier, stress may create adverse consequences for

entrepreneurs, and therefore, stress management and control are needed. However,

studies have shown that there are various methods of lowering stress, one major

method being social support (Rahim, 1996; Chay,1993). Research results from a study

by Mack and McGee (2001) however did not support the contention that social

support mitigates work and non-work stress. The evidence on the relationship

between social support and stress has been inconclusive. Some studies (Ganster &

Mayes, 1987; Etzion, 1984; Kobasa & Puccetti, 1983; Abdel-Halim, 1982) revealed a

negative correlation between them, while others (Ganster, Mayers & Fusilier, 1986;

Kaufman & Beehr, 1986; Fisher, 1985) reported opposite results. Other researchers

indicated that individuals with high internal locus of control tend to use support

resources more effectively and therefore can reduce the level of anxiety coming from

stress (Sandler & Lakey, 1982). Cohen (1988) and Chay (1993) postulated that

ENTREPRENEURSHIP AMONG BRASS WORKERS 21

individual perception and personality characteristics determine whether an event is

harmful or benign which may lead to low or high levels of stress. Results of a study

conducted by Latack, Kinicki, and Prussia (1995) suggested that ability to control the

situation may help a person better cope with stress. Further, if tasks performed are

fewer complexes and interesting, the worker experiences less stress (Mack & McGee,

2001). Flexible rules and less rigid procedures diminish the stress level (Nasurdin,

Ramayah & Beng, 2006).

The organizational climate which is filled with extreme competition and lack

of interaction is poised to become stressful to the employees (Wong and Wong,

2002). Dealing with stress is, however, one of the hard things which employees face,

because of the reluctance of business owners who experience a daily struggle for

survival, and who do not consider stress management as an important aspect of their

businesses. Many employees term stress as an unnecessary distraction from business

life (Akande, 1994). Entrepreneurs were more concerned with their challenges and

successes than spending their busy time dealing with personal stress and anxiety

(Boyd and Gumpert, 1983). However, many business people, as well as the ancient

brass entrepreneurs avoid the issue of dealing with stress, and instead focus on getting

more profits from their businesses. However, stress is one major source of deaths to

the business people, because the mind and the body do not function fully when

subjected to stress.

RESEARCH METHODOLOGY

3.1 Introduction

This chapter presents the methods and describes the study approaches used to

measure and examine the motivations, success factors, problems and business related

ENTREPRENEURSHIP AMONG BRASS WORKERS 22

stresses among the brass worker respondents who are living and working at the study

location. This chapter also indicates the sample was chosen, the techniques employed

to select the samples and the instruments employed during the collection of the data.

Also, this chapter also indicates the methods of data analysis, types of data collected

and the research design.

3.2 Research design

The research design is the procedure which is used to gather and analyze

gathered data, interpret results and disseminate the findings (Myers 2008). The

research design can be qualitative, quantitative or even a combination of the two

methods (qualitative and quantitative). “A traditional research design is a blueprint or

a detailed plan to show how a research study is to be conducted and completed, as

well as for operationally defining variables. The major aim is to ensure that the data

can be measured, select a sample of interest to study, and collect data to be used as a

basis for testing hypotheses and analyzing data to surface results” (Thyer, 1993). The

qualitative design is a research design that is subjective and involves a naturalistic and

interpretive approach where data is normally gathered using interviews to generate

qualitative data (Rubin and Babbie 2010). The quantitative design is objective and

normally involves gathering quantitative data in the form of numbers; hence statistical

methods can be used to test hypotheses (Ary, Jacobs and Razavieh 2002).

To establish a better study, a pilot study was conducted. The major reason for

conducting the pilot study was to minimize the costs to be incurred as well as the time

to be taken in the study. The target population for the pilot study was the brass

workers, who had engaged themselves in the production activities. However, the pilot

ENTREPRENEURSHIP AMONG BRASS WORKERS 23

study excluded a majority of the people who were in the marketing activities of the

brass commodities. The major reason for excluding the people who were directly

involved in the marketing process of the brass commodities was to avoid influence on

the results when the real study would be conducted. In the process of engaging the

brass workers who were in the production and the processing process, the major issue

was to develop the research design which would easily adjust if there was a need. In

this pilot study conducted on the producers and the processors, the need to develop an

outlook mechanism was crucial in ensuring that the samples developed had all the

required parts and entities.

The pilot study of the research subjects revealed some of the problematic areas

that need to be addressed through the research design. One major issue was the brass

worker respondents did not have time to commit to the research, and in some cases,

they were reluctant to answer the questionnaire because they feared that answering

such questions may reveal their true income and other personal information. The

major factors that contributed to this problem were work stress, time limitations, and

respondents’ attitudes, busy work schedules, and their educational limitations.

Therefore quantitative research design was considered as the suitable research design

for this study. The justification for quantitative research was that it has the

advantages of obtaining large representative samples that can be measured and the

data collected can be based upon a shorter time span with a larger number of

respondents. Also, the chances of error in extrapolating it to a larger population are

lower and also measurable.

ENTREPRENEURSHIP AMONG BRASS WORKERS 24

3.3 Sampling decisions

In field research, sampling commences with the selection of a specific

research site (Burgess, 1982:77; Strauss et aI, 1964).The villages namely Kiriwawula

and Pamunuwa were chosen as the research locations, since these villages were

historical, as well as at present the reputed brassware producers. In the two villages,

the pilot study would be effectively executed because a majority of the people in those

areas were producers and processors. The sample selected for this study included 48

brass workers from the villages of Kiriwawula and Pamunuwa, situated in the

Pilimathalawa Divisional Secretariat division. Twenty-four ( 24) respondents were

randomly selected from Kiriwawula village, and an equal number (24) of respondents

were selected from the Pamunuwa village, using the Industrial Development Board’s

scrap metal distribution lists for the year 2015. The number selected was used as a

sampling frame. This list had names of 87 brass workers in the Central Province. To

ensure that the pilot study was effective, there was the need to have minimum

interaction with the people in the various fields.

3.4 Sampling criteria

The respondents for this study were selected, by specified criteria.

They were;

1. A respondent, brass worker entrepreneur, should have engaged in the brass

industry, at least for five years.

2. Be at least 23 years or older in age.

3. Has the willingness to participate in the study.

4. The respondent could be of either sex or any race.

ENTREPRENEURSHIP AMONG BRASS WORKERS 25

5. Should be a resident of Kiriwawula or Pamunuwa village.

6. Should be in the production and processing site, but not in the marketing

process.

3.5 Data collection

3.5.1 Survey Questionnaire

The questionnaire used in this study was similar to the questionnaire originally

developed by Hung M. Chu (The Chu and Katsioloudes 2001), and it had been

utilized in subsequent research since 2001. The study has been used to study

entrepreneurs across numerous countries, such as: Turkey, Vietnam, Romania, India,

Kenya and Ghana (Benzing, Chu and Kara 2009, Chu, Benzing and McGee 2007.

Other areas included the Benzing and Chu 2005, Benzing, Chu and Callanan 2005,

Benzing, Chu, and Szabo 2005).The questionnaire survey consisted of 58 questions,

and they were divided into six main groups.

The first group dealt with enterprise ownership, types, and age of business, categories

and number and employees, gender, average age, educational level, marital status, and

average working hours per week.

The second group dealt with motivational factors, and the variables analyzed

here were experience, leadership, self-confidence, and income, and motivation, public

recognition, providing jobs for family members, ambitions, job security, plans,

personal freedom, and family ties.

The third group focused on the problems faced by entrepreneurs. The

variables measured and analyzed here were the number of employees, competition,

accessibility to long-term capital, short term capital, impact of government

ENTREPRENEURSHIP AMONG BRASS WORKERS 26

regulations, parking space availability, location, economy, management training,

marketing training, accounting records, tax structure, registration process, foreign

exchange, transportation, and electricity power supply problems,

The fourth group focused on the perceived success factors, the variables

measured and analyzed here were management skills, charisma, government support,

appropriate training, capital, previous experience. Other areas of importance include

thefamily support, marketing factors, price, customer service, hard work, location,

maintaining records, managing personal, community involvement, political

connection, and reputation of the entrepreneur.

The final group dealt with the success, stresses experienced and the support of

entrepreneurs. The five variables analyzed here were a business success, satisfaction,

meeting expectations, stress, and family support.

The questionnaire was translated into the Sinhala language so that the

respondents would have a clear understanding of the questions and facilitate getting

better feedback. The researcher also used tools such as a Likert scale translated into

the local language and printed on boards so that the respondents could make decisions

promptly by looking at the boards. All the respondents were given sufficient time to

answer the questionnaire, and a normal data gathering session lasted about 30 – 40

minutes. Some of the questions had to be occasionally simplified so that the

respondents clearly understood the questions.

A five-point Likert scale was used to measure perceived motivation, problems

and success variables. It was used on a five-point scale of; 5 = “extremely important”,

4 = “very important”, 3 = “mildly important”, 2 = “not very important” and 1 =

“unimportant”. A higher mean score, exceeding the average value, on a specific

variable indicated greater importance in the research conducted.

ENTREPRENEURSHIP AMONG BRASS WORKERS 27

All the questionnaires made were meant to be used for the pilot study only,

and the information was not to be transmitted to the targeted group, which is the

marketing group.

3.5.2 Data collection procedure

The questionnaires were personally handed over by the researcher to the

randomly selected brass worker respondents, who were in the production and the

processing sectors. Reluctance was witnessed among the respondents, which might

have influenced by the tough time the respondents are going through in the brass

industry, and also not being well educated. The respondents asked the questions to be

read to them so that they would answer the questions. The questions in the

questionnaire were translated into the Sinhala language so that they could understand

them with ease. The data was collection done over a period of six months, since the

respondents wanted not to be visited on weekdays for data gathering.

3.6 Reliability and validity

3.6.1 Reliability

Reliability is the degree of consistency with which instrument measures the

attribute, which is a design to measure (Polit & Hungler, 1999). The questionnaires

were answered by 24 subjects who were in the scrap metal list, and 24 subjects from

the non-scrap metal list and both categories revealed a consistency in responses. One

of the other ways that reliability could be achieved was by minimizing sources of

measurement errors like data collector bias. In this study, the data collector bias was

minimized using several techniques. They were;

ENTREPRENEURSHIP AMONG BRASS WORKERS 28

1. The researcher was the only person to administer a questionnaire to all the

respondents. Here the researcher offered standard conditions and similar

personal attention to all the respondents such as respect, friendliness, and

supportiveness.

2. The researcher was able to provide an appropriate physical and psychological

environment to the respondents by meeting them at their homes, ensuring

privacy, confidentiality, moral support and physical comfort.

3.6.2 Validity

Validity is defined as the degree to which an instrument measures what it is

intended to measure (Polit & Hungler, 1999). Content validity can be referred to as

the extent to which an instrument represents the factors under the research. In this

study to ensure the content validity, the questionnaire included all different types of

questions that were related to different categories in the original M. Chu (2001)

questionnaire that was used to assess the motives, problems, and success factors that

were related to the entrepreneurs.

One of the methods the researcher used to ensure the content validity was by

maintaining consistency of administration of the questions. In this study, all the

questionnaires were personally handed over by the researcher. The questions were

translated from the English language to the Sinhala language and explained to the

respondents in a way they could understand.

Cronbach's alpha was used to check the consistency of internal validity.

According to the Burns and Grove, the external validity can be defined as the extent

to which the study findings can be generalized beyond the sample used. About eight

ENTREPRENEURSHIP AMONG BRASS WORKERS 29

persons who were approached to participate in this study refused to participate

because of different reasons. Therefore, generalizing the findings to all members of

the population may not be entirely justifiable.

3.7 Pilot study

The pilot study was carried out in the village of Kriwawula with the participation

of 10 brass workers. During the pilot study, the following flows were identified and

rectified.

1. Brass workers would like to participate in the study, but they don’t like to fill

the questionnaires by themselves.

2. The subjects would like to participate during the weekend when they don’t

work or have minimum work.

3. Rather than setting a time limit for the respondents to answer the questions,

the researcher observed that the subjects are likely to respond positively if the

researcher could persuade them and listen to their life stories.

3.8 Data analysis methods

Once the data was collected they were analyzed using statistical software for

social sciences (SPSS). The data were analyzed using several statistical methods.

Mean, and standard deviation for each item were calculated.

- Cronbach's Alpha was used to check the reliability and internal consistency of

the instrument.

- A factor analysis was conducted for the variable of motivation, success,

problems and to group them.

ENTREPRENEURSHIP AMONG BRASS WORKERS 30

- Kaiser Mayer Olkin (KMO) measure and Bartell’s test of sphericity were used

to testing to establish the justification of implementation of factor analysis.

- Principal component analysis was used to determine whether motivation,

success variables and problems group together on significant factors.

- Principal component analysis, scatter plot, component matrix was used to

establish factors. The extraction method used was Varimax with Kaiser

Normalization rotation to determine the factor loading and commonalities.

3.9 Ethical considerations

When a researcher is conducting a research, he must make sure that he is

practicing the ethically sound practices throughout the research, by conducting the

study adopting ethical procedures. When the study was initiated appropriate

permission were taken from the respected organizations such as Central Province

Export Development Board, Department of Small and Medium Enterprises,

Yatinuwara Divisional Secretary and Grama Niladhars of Kriwawula and Pamunuwa

villages.

When the researcher approached the subjects with the questionnaire, if they

did not like to participate in the study, the researcher never persuaded them or forced

them to participate. The researcher purposefully put the age criteria above 23 years, as

the minimum age of a respondent because the respondent had to possess at least five

years experience in the brass industry. Then they would be above the age limit of 18

years, which is the minimum legally accepted age for working.

The subjects were informed about the purpose the study, and what methods were to be

used to collect data and the long-term goals of this research. One of the principal

ethical questions raised by the brass worker-entrepreneurs was about the

ENTREPRENEURSHIP AMONG BRASS WORKERS 31

confidentiality of the information. In this study, the researcher promised

confidentiality to the subjects by stating that the collected data will be kept strictly

confidential and will not to reveal the identity of the subject.

Scientific honesty is regarded as one of the important ethical responsibilities

when a researcher is conducting research. Throughout the study, the researcher

avoided manipulation of design, methods, and data.

3.10 Limitations of the study.

The following limitations were observed during this study.

Even though the researcher was able to distribute the questionnaire among 48 brass

worker-entrepreneurs, the researcher believes that a larger sample size would have

improved the result. The 24 brass worker-entrepreneurs who were randomly selected

from the Central Province Export Development Board’s scrap metal list may have

some bias towards the government, but unfortunately, this situation cannot be

improved because of lack of recorded information on the brass workers.

The researcher believes that this study could have been improved dramatically

with the availability of the statistical data, but unfortunately, statistics departments of

Sri Lanka or any related institutes do not have updated and accurate information about

the brass workers and relevant data. The research methods developed were initiated to

include all the various concepts of the research objectives. The research methods

aimed at achieving the various objectives of the study, which includes the following;

• The identification of the motivational factors of the brass workers

• Understanding the problems faced by the brass workers.

• Understanding the entrepreneurial skills among the brass workers.

ENTREPRENEURSHIP AMONG BRASS WORKERS 32

Other objectives aimed at in the research process include the exploration of how stress

can affect the brass workers.

Theoretical Frame Work

The various research methods which were used aimed at the generation of an

understanding of all the factors which contributed to entrepreneurship among the

brass workers. As explained in the conceptual framework, the various factors which

included the motivational factors, success factors, family support, the business

barriers, as well as the satisfaction derived from the working processes.

3.11Conceptual Framework of the study

Figure 1.Conceptual Framework of the study

ENTREPRENEURSHIP AMONG BRASS WORKERS 33

In understanding the various factors which play a vital part of the entrepreneurial

development among the brass workers, the analysis focuses on five factors, which

include; the motivational factors, success factors, family support, the business

barriers, as well as the satisfaction derived from the working processes. There are

various motivational factors which drive the workers towards gaining success. Some

of the motivational factors include the revenue returns from the work done, as well as

the payments derived from the business. Some barriers in the business include the

lack of proper technology in the production process as well as the failure to get

trained employees to execute the various duties. Family support is one of the major

factors which drove the brass workers towards the enhancement of success among the

workers. When a majority of the family members are working, other members offer

support to the workers.

RESULTS AND DISCUSSION

Data gathered for this study was analyzed, and the findings are presented and

discussed in this chapter. The sample which had been derived from the pilot study

was used in the general study. This research relies on the general population of the

brass workers.

4.1 Correlation Matrix for Motivation

Correlation matrix measures are indicated by values ranging from -1.0 to +1.0,

and they can be strong, moderate, weak, positive or negative. Correlations of 1.00 on

the diagonal of every variable are perfectly and positively correlated with itself.

According to above correlation matrix correlations of 1.00 can be seen diagonal in

ENTREPRENEURSHIP AMONG BRASS WORKERS 34

motivation, problems and success variables, meaning the variables are perfectly and

positively correlated with it.

4.2 KMO Measure of Sampling Adequacy and Bartlett’s Test of Sphericity

Table 1. KMO and Bartlett's Test (Motivation)

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.622

Bartlett's Test of

Sphericity

Approx. Chi-Square

142.095

Df

55

Sig.

.000

Table 2. KMO and Bartlett's Test (Success Variables )

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.539

Bartlett's Test of

Sphericity

Approx. Chi-Square

198.477

df

136

Sig.

.000

Table 3. KMO and Bartlett's Test (Problems)

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.570

Bartlett's Test of

Approx. Chi-Square

280.318

ENTREPRENEURSHIP AMONG BRASS WORKERS 35

Sphericity

df

120

Sig.

.000

For motivation the KMO measure considered was .622 and it indicates the

adequacy of our sample to proceed with factor analysis. Barlett’s test of sphericity

was significant at 0.05 (P-value=0.000). For the Success factors, the KMO measure

was .539 and Barlett’s test of sphericity was significant at 0.05 (P-value=0.000). For

the entrepreneur problems variables, the KMO measures were .570 and Barlett’s test

of sphericity was significant at 0.05 (P-value=0.000).

4.3 Communality Coefficient

Table 4. Communalities ( Motivation)

Initial

Extraction

Be my boss

1.000

.557

Use my Experience

1.000

.825

Prove I can do

1.000

770

increase income

1.000

.768

public recognition

1.000

.842

Provide jobs for family

1.000

.863

My own satisfaction

1.000

.577

Job Security

1.000

.801

Table 5. Communalities (Success factors)

Initial

Extraction

General management

skills

1.000

.775

Friendliness to

customers

1.000

.663

Government support

1.000

.687

Appropriate training

1.000

.717

Access to capital

1.000

.758

Previous business

experience

1.000

.740

Family support

1.000

.809

ENTREPRENEURSHIP AMONG BRASS WORKERS 36

Build a business to

pass on

1.000

.799

My personal Freedom

1.000

.655

Closer to my family

1.000

.879

Extraction Method: Principal Component

Analysis.

Sales promotion

1.000

.531

Competitive price

1.000

.809

Good customer service

1.000

.708

Hard work

1.000

.751

Location

1.000

.683

accurate sales and

expenditure

1.000

.461

Ability to manage

personal

1.000

.851

Community

involvement

1.000

.775

Political involvement

1.000

.841

Reputation for honesty

1.000

.609

Extraction Method: Principal Component

Analysis.

The results presented showed that the various factors considered in the process

of commonality were of great importance to the activities of any business. A majority

of the business owners focus on the enhancement of good relationship and co-

existence between the business, the employees, and the clients. The various factors

put into consideration during the establishment of any business entity are important,

because they dictate how any business organization operates.

ENTREPRENEURSHIP AMONG BRASS WORKERS 37

Communality coefficients show some amount of variance in the variable

accounted for by the components. Higher coefficients represented stronger variables,

while lower coefficients represented weaker variables in the research conducted.

According to the output of motivation communality coefficients for motivations, 9

were stronger variables, and two were found to be weak variables. Success variables

had 15 stronger variables, and 2 were weak variables. Finally, the problems faced by

brass worker-entrepreneurs were found to have 16 stronger variables and three weak

variables.

4.4 Total Variance Explained Table

Table 6. Total Variance Explained (Motivation)

Compone

nt

Initial Eigenvalues

Extraction Sums of

Squared Loadings

Rotation Sums of

Squared Loadings

Tota

l

% of

Varianc

e

Cumulati

ve %

Tota

l

% of

Varianc

e

Cumulati

ve %

Tota

l

% of

Varianc

e

Cumulati

ve %

1

3.29

4

29.950

3.29

4

29.950

2.36

3

21.485

2

1.42

6

12.967

42.917

1.42

6

12.967

42.917

1.85

0

16.822

38.307

3

1.32

3

12.023

54.940

1.32

3

12.023

54.940

1.40

1

12.733

51.040

ENTREPRENEURSHIP AMONG BRASS WORKERS 38

4

1.21

3

11.031

65.971

1.21

3

11.031

65.971

1.39

6

12.689

63.729

5

1.07

9

9.807

75.777

1.07

9

9.807

75.777

1.32

5

12.049

75.777

6

.833

7.577

83.355

7

.522

4.741

88.096

8

.437

3.973

92.069

9

.379

3.443

95.511

10

.271

2.467

97.978

11

.222

2.022

100.000

Extraction Method: Principal

Component Analysis

Motivation is one of the major factors which affect the operation of activities by the

employee. In a majority of the businesses, the level of employee motivation affects

the rate at which employees operate in the business. In cases and businesses where the

motivation rate of the employees is high, then there are many chances that the

employees perform better than in businesses where the employees do not have a better

chance of being motivated. Through this research, it is thus indicated that motivation

is one of the major factors affecting business activities in a y area of operation.

ENTREPRENEURSHIP AMONG BRASS WORKERS 39

Table 7. Total Variance Explained (Success Factors)

Compone

nt

Initial Eigenvalues

Extraction Sums of

Squared Loadings

Rotation Sums of

Squared Loadings

Tota

l

% of

Varianc

e

Cumulati

ve %

Tota

l

% of

Varianc

e

Cumulati

ve %

Tota

l

% of

Varianc

e

Cumulati

ve %

1

3.09

0

18.179

3.09

0

18.179

2.47

3

14.546

2

1.96

8

11.574

29.753

1.96

8

11.574

29.753

2.16

0

12.707

27.253

3

1.90

3

11.196

40.949

1.90

3

11.196

40.949

1.75

6

10.329

37.582

4

1.66

8

9.812

50.760

1.66

8

9.812

50.760

1.59

3

9.372

46.954

5

1.24

3

7.313

58.073

1.24

3

7.313

58.073

1.57

2

9.249

56.203

6

1.19

9

7.054

65.127

1.19

9

7.054

65.127

1.36

7

8.039

64.243

7

1.09

5

6.443

71.570

1.09

5

6.443

71.570

1.24

6

7.328

71.570

8

.916

5.386

76.956

9

.819

4.820

81.776

ENTREPRENEURSHIP AMONG BRASS WORKERS 40

10

.573

3.369

85.145

11

.557

3.276

88.421

12

.484

2.848

91.269

13

.398

2.344

93.613

14

.336

1.974

95.587

15

.283

1.666

97.253

16

.260

1.531

98.784

17

.207

1.216

100.000

Extraction Method: Principal

Component Analysis.

Table 8.Total Variance Explained (Problems)

Compone

nt

Initial Eigenvalues

Extraction Sums of

Squared Loadings

Rotation Sums of

Squared Loadings

Tota

l

% of

Varianc

e

Cumulati

ve %

Tota

l

% of

Varianc

e

Cumulati

ve %

Tota

l

% of

Varianc

e

Cumulati

ve %

1

3.87

3

24.204

3.87

3

24.204

2.72

9

17.058

2

2.58

9

16.183

40.387

2.58

9

16.183

40.387

2.27

9

14.242

31.299

ENTREPRENEURSHIP AMONG BRASS WORKERS 41

3

1.71

0

10.689

51.076

1.71

0

10.689

51.076

2.09

3

13.079

44.378

4

1.38

0

8.626

59.702

1.38

0

8.626

59.702

1.88

3

11.768

56.147

5

1.08

8

6.800

66.502

1.08

8

6.800

66.502

1.65

7

10.355

66.502

6

.992

6.199

72.701

7

.879

5.494

78.195

8

.675

4.221

82.416

9

.625

3.906

86.321

10

.536

3.351

89.672

11

.469

2.931

92.603

12

.417

2.609

95.212

13

.268

1.675

96.887

14

.240

1.499

98.386

15

.148

.922

99.309

16

.111

.691

100.000

Extraction Method: Principal

Component Analysis.

Total variance explained table lists. The individual components of Eigenvalue

and variance accounted for determination for how many components to retain.

ENTREPRENEURSHIP AMONG BRASS WORKERS 42

Kaiser criterion (K1 Rule): retain only those components with an Eigenvalue of

greater than 1; can lead to retaining more components than necessary. According to

this rule, we can retain five components of 11 from motivation factors, retain seven

components of 17 success factors and retain five components of 16 entrepreneur

problems. Retain as many factors as will account for a predetermined amount of

variance, can lead retention of components of that are variable specified.

4.5 Scree plot

4.5.1 Scree plot: Motivation

The recommendation is to retain all components in the descent before the first

one on the line where it levels off (Cattell, 1966; as cited by Stevens, 2002).

According to the motivation scree plot only first five components can be retained, and

for the success factors first seven components can be retained.

Figure 2. Scree plot: Motivation

Motivation plays a major role in the performance of any business. The returns made

by business organizations are highly dependent on the levels of employee motivation.

In cases where the levels of motivation are high, then, employees perform better,

enhancing productivity and even progress to the people as well as the business

organization.

ENTREPRENEURSHIP AMONG BRASS WORKERS 43

4.5.2 Scree plot: Success factors

Figure 3. Scree plot: Success factors

ENTREPRENEURSHIP AMONG BRASS WORKERS 44

4.5.3 Scree plot : Entrepreneur Problems.

Figure 4. Scree plot: Entrepreneur Problems.

As represented by the various factors of entrepreneurs, various factors come into play

when a business has to achieve its success. However, there are problems that face

businesses, dragging them behind, and making it hard for entrepreneurs to break even

in their business operations. When challenges are many in business, then it becomes

hard for the organization to make profits, and even offer any competition in the

market.

4.6 Component Matrix

Column values were structure coefficients or the correlation between the test

question and the synthetic component; squared structure coefficients illustrate how

well the item can reproduce the effect in the component.

ENTREPRENEURSHIP AMONG BRASS WORKERS 45

4.6.1 Reliability

Cronbach’s Alpha Coefficient

Table 9. Reliability Statistics (Motivation)

Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of Items

.758

.733

11

Table 10. Reliability Statistics (Problems)

Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of Items

.665

.643

16

ENTREPRENEURSHIP AMONG BRASS WORKERS 46

Table 11. Reliability Statistics (Success factors)

Cronbach's

Alpha

Cronbach's

Alpha Based

on

Standardized

Items

N of Items

.148

.254

17

According to the reliability checks Cronbach's Alpha for Motivation,

Problems factors were .758, and .665. Respectively meaning reliability of Problems

and Success Factors were not that sufficient in the conducted study. However,

Cronback’s Alpha for success factors was not sufficient.

4.6.2 Principal component factor analysis for motivation variables.

Table 12. Principal component factor analysis (varimax rotation), factor

loadings and communalities for motivation variables

Factors

1

2

3

4

5

Communality

9. Build a business to

pass on

.738

.370

.799

8. Job Security

.714

-.317

.305

.801

3. Prove I can do

.681

-.434

.770

ENTREPRENEURSHIP AMONG BRASS WORKERS 47

1.Be my boss

.639

.557

6. Provide jobs for

family

.612

-.460

.459

.863

7.My satisfaction

.588

-.400

.577

10.My personal

Freedom

.534

.319

-.392

.305

.655

4. increase income

.836

.768

2. Use my Experience

.725

-.455

.825

5. public recognition

.498

.513

-.508

.842

11. Closer to my

family

.537

.352

.599

.879

Variance

3.294

1.426

1.323

1.213

1.079

Percentage of Variance

29.950

12.967

12.023

11.031

9.807

Extraction Method: Principal Component Analysis.

a. 5 components extracted.

Commonality is an important factor which affects how businesses operate. In cases

where there are high levels of commonality, then the business operations are better

and even more productive. Businesses operate better where there is a better

cooperation between the internal and the external business environment. In cases

where the levels of employee and community satisfaction are high, then the chances

of increasing operations in the business increase, hence the business increases its

profits.

ENTREPRENEURSHIP AMONG BRASS WORKERS 48

The factor analysis led to four factors which accounted for 75.77% of the

cumulative variance. These factors were the income factor, independent factor,

intrinsic factor and job security. These were the same factors obtained by Benzing,

Chu, and Kara (2009) in a survey of Turkish entrepreneurs.

The first factor was referred to as the independent factors, included motives

job security, to prove that I can do, be my boss, to build a business to pass on and for

my satisfaction and growth. This factor accounted for 29.9 percentage of variability.

Independent factor motives were important for and entrepreneur to make independent

decisions and to build a business and to become an entrepreneur.

The second factor can be called income factor. The income factor consisted of

motives 6,4,11. They were to increase the income, to live closer to my family and to

provide jobs to my family. The second factor explained about 12.9 percent of

variability. Entrepreneurs believed that regular income or cash flow is the most

valuable asset they have and for their successors. The third factor was referred to as

an intrinsic factor, and it consisted with the motives 5, 8, 2. They were job security,

personal freedom; use my experience and public recognition. These motives can be

identified as the roots of being an entrepreneur and his long term and short term

ambitions. Intrinsic factor accounted for about 11 percent of variability. The fourth

factor was security factor, which included motives 9, 6 and 11 which were, build a

business to pass on, provide jobs to family members and being closer to the family.

This factor accounted for about 9.8 percent of the variability. This factor described the

motives that were considered by and entrepreneur to be secure in his occupation for

himself and his family.

ENTREPRENEURSHIP AMONG BRASS WORKERS 49

4.6.3 Principal component factor analysis for success variables.

Table 13. Principal component factor analysis (varimax rotation), factor

loadings and communalities for success variables

Factors

1

2

3

4

5

6

7

Communality

10. Good

customer service

.683

.432

-.224

.708

3. Government

support

-.677

.365

-.208

.118

.161

.687

11. Hard work

.650

.322

.103

-.411

.143

.138

.751

5. Access to

capital

-.600

.154

.588

-.143

.758

17. Reputation for

honesty

.547

-.118

.501

.119

.123

.609

4. Appropriate

training

.243

.647

-.185

-.227

.242

.307

.717

8. Sales

promotion

-.356

.559

.238

-.111

.531

2. Friendliness to

customers

.474

.541

-.193

-.243

.178

.663

ENTREPRENEURSHIP AMONG BRASS WORKERS 50

13. accurate sales

and expenditure

-.242

.519

-.172

.277

.150

.461

6. Previous

business

experience

.219

-.136

-.726

-.106

-.331

.147

.740

15. Community

involvement

.164

.142

.604

-.157

.157

-.360

.428

.775

1.General

management skills

.324

-.493

.295

-.396

.247

.340

.775

12. Location

-.435

.485

.152

.336

-.347

.683

16. Political

involvement

-.435

-.696

.380

.841

7. Family support

.389

.169

.198

.753

-.141

.809

9. Competitive

price

.345

.169

.462

-.276

-.589

.155

.809

14. Ability to

manage personal

-.110

.451

.253

.463

.595

.851

Variance

3.090

1.968

1.903

1.668

1.243

1.199

1.095

Percentage of

Variance

18.179

11.574

11.196

9.812

7.313

7.054

6.443

ENTREPRENEURSHIP AMONG BRASS WORKERS 51

Business environment plays a major role in the organization and the

operations of any business. Political relationships among the people in any state are

important for the growth and development of businesses. Investors try to invest in

environments where there is a good relationship between the people and the state. The

various commonality factors play a major role in the development of various business

organizations.

The factor analysis led to seven factors; these factors were interpreted as

follows, approval and support, competitive product and services, business reputation,

interpersonal skills, always informed leadership and finally position in the society.

The first factor was called approval and support which explains 18.17 percent of

variance and contains success variables 10, 11, 17, 2, 7. These variables were good

customer service, hard work, reputation for honesty, friendliness to customers and

family support. Approval and support were very important for an entrepreneur for

successful function, as observed brass workers function as families.

Competitive product and service was identified as the second factor. It

consisted the variables 3, 10, 4, 8, 2. These variables were good customer service,

government support, appropriate training, sales promotion, friendliness to the

customer. Competitive product and service factor explains about 11.57 of variance

percentage. One of the greatest skills of an entrepreneur is to produce competitive

products and service. He can survive only if he produces such competitive products in

services at better prices. Business reputation was identified as the third factor. This

factor included the variables 17, 15, 12 which were a reputation for honesty,

community involvement, and location. Business reputation factor explained a

variance percentage of 11.19. Business reputation was the main factor that buyers or

ENTREPRENEURSHIP AMONG BRASS WORKERS 52

customers come to an entrepreneur. If the entrepreneur does not have a business

reputation, he can’t function his business properly.

The fourth factor was interpersonal skills which included variables 14, 5, 15.

The access to capital, community involvement and ability to manage personally. The

fourth factor explained about 9.8 percentage of variance. Interpersonal skills

contributed greatly to building relationships that vitally is for any business. These

business connections could be among the customers, suppliers, co-workers or the

government authorities. Always informed was the fifth factor which included

variables 14, 7 and 13. They were family support, maintaining accurate records of

sales and expenditure and ability to manage personally. The fifth factor accounted for

7.3 percentage of variance. One of the common factors that led to the demise of

traditional craft industries was that entrepreneurs were not aware of the prevailing

situation of the market and the economy. Therefor it is essential to stay vigilant about

the industry and the economy.

Leadership was be identified as the sixth factor which explained 7 percent of

the variance. This factor included the variables 4, 1, 14, 11. They were appropriate

training, general management skills, and ability to manage personal and hard work. A

leader can be identified as one of the greatest human strengths that contribute to any

successful venture. Without proper leadership skills, the entrepreneurs would hinder

in progress. The final factor was position in the society. This factor included the

variables 15, 1, 16, 14 these variables were the ability to manage personal, general

managerial skills, political involvement and community involvement. This factor

explained about 6.4 percent of the variance. In any society, the ultimate aim of the

entrepreneur is to live respectfully. Likewise, the brass workers would like to earn this

social position of the society by different means.

ENTREPRENEURSHIP AMONG BRASS WORKERS 53

4.6.4 Principal component factor analysis for problem variables.

Table 14. Principal component factor analysis (varimax rotation), factor

loadings and communalities for problem variables.

Component

Factors

1

2

3

4

5

Communality

8. Weak economy

.721

.617

10. Lack of marketing

training

.718

.547

4. Obtaining long term

F capital

.621

.444

-.350

.747

11. Inability to

maintaining

accounting

.584

.489

-.455

.789

14. Foreign exchange

limitations

-.579

.355

.474

.721

5. Govt regulation

.561

-.325

-.375

.577

9. Lack of

management training

.522

.467

.547

7. Unsafe location

.513

.469

.302

.604

6. Limited Parking

.410

-.329

.369

.435

ENTREPRENEURSHIP AMONG BRASS WORKERS 54

12. Complex tax

Structure

.456

-.689

.836

2. Competition

.633

.311

.606

3. Obtaining Short

term Financial capital

.438

.633

.692

1. Undependable

employees

.597

.489

-.317

.703

16. Electricity

problems

.429

.406

.408

.616

15. Poor roads

.764

.691

13. Business

Registration Process

.440

-.464

.553

.809

Variance

3.873

2.589

1.710

1.380

1.088

Percentage of

Variance

24.204

16.183

10.689

8.626

6.800

Extraction Method: Principal Component Analysis.

a. Five components

extracted.

Businesses which are established in places with many difficulties find it hard to

establish themselves. In a majority of the businesses, making profits becomes hard,

ENTREPRENEURSHIP AMONG BRASS WORKERS 55

because of the various challenges which the businesses face. In reality, it becomes

hard for business owners to relate to the factors of the economic well-being in

situations where the tax rates are high, market entry is hard, and there are a lot of

government regulations in the business operations. Businesses fail to make profits,

entrepreneurs are discouraged, and it becomes hard for anyone to make profits or even

generate anything of importance to their welfare.

The factor analysis led to four factors in problems that were faced by the brass

worker-entrepreneurs. They were a lack of business training, marketing problems,

locations problems and government problem. The first factor was a lack of business

training. This factor included the variables 8, 10, 4, 11, 9. They were weak economy,

lack of marketing training, obtaining long-term capital, inability to maintain accounts

and lack of management training. The lack of business training factor explained about

24.2 percent of the variance. Lack of business training can be identified as a most

common problem among the brass worker-entrepreneurs. Without the business

fundamentals, it is very difficult to build a successful business. The second factor was

marketing problems, which explained about 16.18 percent of the variance. Marketing

problems included the variables5, 12, 2, 3. These variables were government

regulations, complex tax structure, competition, obtaining short-term financial capital.

For any business marketing skills are the lifeline. Lack of marketing knowledge

means, even though the brass worker has good products they will face difficulties in

the future.

The third factor was location problems. This factor explained a variance

percent of 10.6. Location problems include the variables 14, 7, 6, 15. They were

foreign exchange limitations, unsafe location, limited parking and poor roads. Having

an ideal location means that the brass worker-entrepreneurs can meet the clients easily

ENTREPRENEURSHIP AMONG BRASS WORKERS 56

and access to many other resources. Having being concentrated in the two villages in

the Pilimathalawa area, they were facing difficulties in selling their goods.

The fourth and the final factor was associated government problems. Those

problems included the variables 13, 14, 16. They were foreign exchange limitations,

electricity power supply problems and business registration process. The government

problems explained a variance percentage of 8.6. There were a series of government

problems faced by the brass workers; one of the most prominent was electricity

problem and the business process which hindered the brass worker entrepreneur’s

success.

4.7 Gender and Civil Status

The great majority (94%) of the respondents were found to be males, as shown

in Table 15, and females accounted for only a minority of six percent (6.0%)

Table 15. The distribution of respondents by gender

Item

Respondents Responding

Number

Percent

Gender

- Male

- Female

45

03

94.0

06.0

Total

48

100.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 57

According to Table 15, the brass work industry is a male-dominated sphere. It

was observed that all (100%) The respondents were married as shown in Table 16

In a majority of the brass, workers are males. Females are excluded from the

work due to various reasons, which include social factors, societal myths, economic

situations as well as the health issues. A majority of the men who work in the mines

term the work as hard and challenging, and so, they exclude women from the work.

The exclusion is based on various reasons, some being, the slow pace of women in the

performance of their duties, as well as the huge amounts of energy needed in the

performance of the duties. Women also exclude themselves, due to the various

domestic duties awaiting them, and the various activities which are attached to the

brass production and processing.

Table 16. The distribution of respondents by Civil Status

Civil Status

Respondents reporting

Number

Percent

Married

Single

48

-

100.0

-

48

100.0

A majority of the people were married, which was a major factor in the

business organization. In most places, the young people who were single might have

engaged in other activities which they termed less strenuous for themselves. Engaging

in the production of brass works by the various people who were married was based

on various reasons, some being the need of financial stability, having someone to help

ENTREPRENEURSHIP AMONG BRASS WORKERS 58

with the household chores as well as the development of various needs within the

family.

According to Table 16, all (100%) of the respondents were married. It is likely

that the respondents would have acquired the understanding of the need to be

financially stable to care for the family and their personal benefit.

4.7.1 Educational attainments of the respondents.

Since entrepreneurial competence may be affected by educational attainments, data

was gathered and analyzed to identify educational attainments of the respondents. The

findings are presented in Table 17.

Table 17. Educational attainments of the respondents

Educational attainment

Respondent reporting

Number

Percent

Completed primary

education

Attended Secondary school

Completed Secondary

school

Attended University

Earned a degree

21

15

12

-

43.8

31.2

25.0

-

Total

48

100.0

According to the Table 17, almost one-half (43.8 percent) of the respondents

had received an only primary education. Almost one third (31.2 percent) of the

ENTREPRENEURSHIP AMONG BRASS WORKERS 59

respondents had attended secondary school but had not completed secondary level

education. Accordingly, almost three-fourths (74.8 percent) of the respondents had a

relatively low educational level.

The brass work is a tedious and one which requires a lot of energy. According

to the table, a majority of the people who were involved in the production process had

only attained primary education. Those who had completed secondary education were

either involved in the other business activities or the marketing process of the brass

products. However, due to the low education levels of the people who had attained

primary education, they engaged in the production process due to the low ability to

get other business and even engaging in other businesses.

4.7.2 Age of the Respondents

The age of the respondents of this study was explored and the findings are

summarized in Table 18.

Table 18. Distribution of the respondents by age category

Age Category

Number responding

Number

Percent

Less than 35 years

35 – 40 years

41 – 45 years

46 - 50 years

-

10

07

11

-

21.0

14.5

23.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 60

51 – 55 years

56 – 60 years

61 – 65 years

More than 65 years

07

09

04

-

14.5

19.0

08.0

-

Total

48

100.0

According to Table 18, the respondents were in the broad age category of 35 –

65 years of age. Within the age categories spreading from 35 to 65 years a relatively

satisfactory distribution was observed. The respondents more than 55 years old, were

about are fourths (27.0 percent) of all respondents. The total number of respondents

who were 50 years old or less were more than one half (58.5 percent) of the total

respondents. The highest number of people who reflected on the interview with a

higher percentage is the individuals with the age bracket of 46 to 50 years. The

reasons are that they have greatly participated in a majority of the activities within the

area. The other group of individuals above 50 years might be faced with the challenge

of answering the various questions asked by the researcher. The other team of

individuals below 46 years is the ones who did not have more experience on the

activities within the area.

4.7.3 Ownership of Enterprise

The respondents were asked to indicate the pattern of ownership to identify

where the enterprise they operated was inherited, purchased or started by the

respondent. The findings are presented in Table 19.

Table 19. Nature and ownership of the enterprise

ENTREPRENEURSHIP AMONG BRASS WORKERS 61

Enterprise ownership

Responses

Number

percent

Personally owned

Bought from another

person

Inherited

Started by the entrepreneur

Franchise

Partnership in the

enterprise

17

02

29

-

60.4

9.1

35.5

-

Total

48

100.0

According to Table 19, a little more than one-third (35.5 percent) of the

respondents had inherited the business. It is interesting to note that less than one-

tenths (9.1 percent) of the respondents had purchased the enterprise from another

person. In a majority of the businesses within the area, a majority of the businesses

were established by individuals. A majority of the people had involved themselves in

small scale productions and small enterprises; because they were easy to start and

even manage. However, there were few cases or no indication of franchises or even

partnerships in a majority of the businesses.

4.7.4 Type of the brass enterprise

A brass enterprise can engage in one or more income-generating activities

such as manufacturing, and wholesale or retail trade. Some sales points for brassware

were observed both in Kandy and several other small towns. Therefore the

ENTREPRENEURSHIP AMONG BRASS WORKERS 62

respondents were asked to indicate the types of business they engaged in. The

findings are summarized in Table 20.

Table 20. The type of brassware business engaged in by the respondents

Type of business

Respondents reporting

Number

Percent

Retail Trade

Servicing

Wholesale trade

Manufacturing

-

02

46

-

04.1

95.9

Total

48

100.0

According to the table 20, the great majority (95.9) limit their enterprise only

for manufacturing. It is likely that middlemen are active in marketing finished

brassware. Thus the profit margin of manufacturers is likely to be affected due to

several reasons. In the introduction to this research study, the major focus was the

investigation of how brass workers operated within their business premises. A

majority of the people were involved in the activities of brass production. The

production process involved the process of excavating the materials, transporting as

well as processing the materials into finished goods and products. However, the

selling of the products in wholesale is hard for the people within the area because of

the lack of enough customers to purchase the products.

ENTREPRENEURSHIP AMONG BRASS WORKERS 63

4.7.5Workers employed by the respondents

The owner-operator of an enterprise needs assistance from his employees. Therefore

to identify the number of employees per each enterprise, the respondents were asked

to indicate the number of workers employed by them. The responses are summarised

in Table 21.

Table 21. The Number of workers employed by the respondents

Worker - type employed

by respondents

Respondents reporting

Number

Percent

Full-time employees

Part time employees

55

80

41.0

59.0

Total

135

100.0

According to Table 21, out of the total employees, the majority (59.0%) were

part-time employees. Twelve (12) respondents did not employ at least one worker on

a full-time basis, while fifteen (15) respondents did not have part-time employees.

However every respondent employed at least, one worker either on a full time or part

time basis. The reseracrh shows that most of the enterprises were relatively small

scale businesses. The reason why a majority of employers prefer using part-time

employment plans is that through the part-time employment, is because there is an

increase in the outputs, as well as a reduction in the production costs.

ENTREPRENEURSHIP AMONG BRASS WORKERS 64

4.7.6 Motivational factors as perceived by the respondents.

The respondents were presented with eleven (11) statements to be ranked by

them on a five-point Likert scale, ranging from 1 to 5 to identify what motivated them

most, to be in the brass industry. The responses are summarized in Table 22.

Table 22; Respondent ranking of statements related to motivation on a percentage

basis

Statement

Percent respondents reporting level of importance

Very

high

Some

what

low

Very

low

No

response

Total

1.To be my own boss

33.3

19.0

43.7

04.0

-

100.0

2.To use my past

experience

21.0

65.0

12.0

02.0

-

100.0

3.To Prove that I can do it

10.0

15.0

25.0

48.0

06.0

-

100.0

4.To increase my income

98.0

02.0

-

100.0

5.To gain public

recognition

02.0

11.0

25.0

27.0

35.0

-

100.0

6. Provide jobs to family

member.

08.0

15.0

06.0

17.0

54.0

-

100.0

7.own satisfaction / growth

19.0

54.0

21.0

06.0

-

100.0

8.Have job security

11.0

27.0

12.0

35.0

15.0

-

100.0

9.Build a business to pass

on

04.0

6.0

8.0

19.0

63

-

100.0

10.enjoy personal freedom

17.0

50.0

17.0

10.0

64.0

02.0

100.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 65

11.to be with my family

34.0

58.0

06.0

-

02.0

100.0

12. Other.

-

100.0

According to Table 22, the majority (98.0 percent) of the respondents ranked

very highly, the item, “to increase my income,” suggesting that income was a high

priority interest of the respondents. To be my boss was also ranked as very high by

about one third (33.3 percent) of the respondents. The results suggests that income

and independence were very important motivator compared to other facts. A majority

of the people had expressed their need to be their bosses, by owning their businesses,

using their experience, develop their families and even develop themselves. Other

reasons why a majority of the people wanted to have their own business is to have

self-reliance, self-realization as well self-actualization in business.

4.7.7 Motivational factors of high or very high importance as perceived by the

respondents.

It was interesting to list the motivational factors in a descending order according to

the scores given by the respondents. The summary is presented in Table 23.

Table 23. Motivational factors and their scores in the descending order of importance.

Statement

Percent respondent reporting level of impotence

Very

high

High

Total

Rank

1.To increase my income

98.0

02.0

100.0

1

2.to be with my family

34.0

58.0

92.0

2

3.To use my past experience

21.0

65.0

86.0

3

ENTREPRENEURSHIP AMONG BRASS WORKERS 66

4.own satisfaction / growth

19.0

54.0

73.0

4

5.enjoy personal freedom

17.0

50.0

67.0

5

6.To be my own boss

33.0

19.0

52.0

6

7.Have job security

11.0

27.0

38.0

7

8.To Prove that I can do it

10.0

15.0

25.0

8

9.Provide jobs to family

member.

08.0

15.0

23.0

9

10.To gain public

recognition

02.0

11.0

13.0

10

11.Build a business to pass

on

04.0

06.0

10.0

11

According to the findings summarized in Table 23, the most important

motivation of the respondents is to increase their income from their brassware

enterprises.

Although people like and tend to pass on their wealth and income generating

resources to their children, the respondents were not keen to pass on the existing

enterprises, perhaps due to the existing problems within the industry. With such

tendency, the respondents may not be interested in building up their enterprises and

seek opportunities for improvements. Therefore the problems of the respondents need

to be explored in greater depth. The major reason for the formation of businesses by a

majority of the people is to realize financial stability, enhance financial development

as well as the growth of their businesses.

ENTREPRENEURSHIP AMONG BRASS WORKERS 67

4.8 Problems perceived by the brass work entrepreneurs.

Due to diverse changes in socio- economic conditions as well as the

convenient availability of raw materials and marketing, entrepreneurs are likely to

face problems.

Therefore, respondent were provided 16 statements related to problems

perceived by respondents to be assigned scores by them on a five (05) point Likert

scale.

The responses of the respondents are summarized in Table 24.

Table 24. Responses of respondents to statements on Problems encountered by them

Problem area

Respondent reporting (percent level of severity

)

Extremely

severe

Very

severe

No

problem

Total

Unreliable / undependable

employees

52.0

27.0

17.

4.0

100.0

Too much competition

100.0

-

100.0

Obtaining short term capital

94.0

4.0

2.0

-

100.0

Obtaining long term capital

96.0

2.0

-

100.0

Government regulations

23.0

37.5

27.0

12.5

100.0

Limited parking space

4.0

8.0

25.0

63.0

100.0

Unsafe location

2.0

42.0

16.0

40.0

100.0

Weak economic status

77.0

15.0

4.0

100.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 68

Lack of management training

2.0

33.0

46.0

19.0

100.0

Lack of marketing training

15.0

37.0

27.0

19.0

100.0

Inability in accounting / record

keeping

12.0

25.0

42.0

19.0

100.0

Tax structure

21.0

11.0

8.0

58.0

100.0

Business registration

10.0

04.0

13.0

71.0

100.0

Foreign exchange limitations

2.0

6.0

88.0

100.0

Poor roads/ transportation

4.0

21.0

52.0

21.0

100.0

Electricity power interruptions

94.0

02.0

-

100.0

Other problems

According to Table 24, all (100%) of the respondents stated that too much

competition is the most serious problem for them. whether the wholesale dealers

jointly offer very low purchasing prices to the manufacturers and sell them to retailers

in far away markets such as Colombo and Jaffna with a very large profit margin

economic condition is unknown. Since challenges are part of businesses, the research

had indicated that various challenges were facing the people of the target area. A

majority of the problems were both internal as well as external challenges presented

by the problem. The internal problems include the lack of good and reliable

employees, lack of capital, lack of support from family as well as management

challenges. The external challenges also played a major role in the dragging behind of

the business. The challenges included the high rates of competition, high rates of

market entry, regulations by the government as well as economic cycles and inflation

rates.

ENTREPRENEURSHIP AMONG BRASS WORKERS 69

Since it was of interest to see the Problems in a descending order of importance based

on the severity of problems, data in Table 24 was used to develop Table 25.

Table 25. The problems of respondents based on the level of severity as stated by the

respondents, in descending order of rank.

Problem area

The problems faced by the respondents based

on the level of severity as stated by the

respondents, in descending order of rank.

Extremely

Severe

No problem

Rank

1.Too much competition

100.0

-

1

2.Obtaining short term capital

100.0

-

1

3.Obtaining long term capital

100.0

-

1

4.Unreliable / undependable

employees

96.0

4.0

4

5.Weak economic status

96.0

4.0

4

6.Electricity power interruptions

96.0

4.0

4

7.Government regulations

87.5

12.5

7

8.Lack of management training

81.0

19.0

8

9.Lack of marketing training

79.0

21.0

9

ENTREPRENEURSHIP AMONG BRASS WORKERS 70

10.Inability in accounting /

record keeping

79.0

21.0

9

11.Poor roads/ transportation

77.0

23.0

11

12.Unsafe location

60.0

40.0

12

13.Tax structure

40.0

60.0

13

14.Limited parking space

37.0

63.0

14

15.Business registration

27.0

73.0

15

16.Foreign exchange limitations

10.0

90.0

16

According to Table 25; the problems perceived by more than 75% the

respondents to be in the range of severe to very severe were

1. Too much competition

2. Obtaining short-term capital

3. Obtaining long-term capital

4. Unreliable and undependable employees

5. Weak economic status

6. Electricity power supply interruptions

7. Excessive government regulation

8. Lack of training in management

9. Lack of knowledge in accounting and record keeping

10. Poor roads and transportation.

Above data indicates that the brass industry is struggling for survival. Therefore

appropriate interventions are likely to benefit both the industry and the people

ENTREPRENEURSHIP AMONG BRASS WORKERS 71

engaged in the industry. Investment areas are important and they deserve attention of

policy makers.

4.9 Perceived factors of success

The respondents were asked about the factors they perceived to influence the

achievement of success in their enterprises. The respondents were given 17

statements, for them to indicate the degree of importance of a scale, ranging from 5 =

extremely important to 1 = least important.

The findings are summarized in Table 26.

Table 26; Factors affecting the success of the brass industry as perceived by the

respondents

Success factor

Respondent’s perceptions on the level of importance

of 17 factors associated with success in their

enterprises.

Extremely

important

highly

important

Some

important

Least

Important

total

1.Good

management

skills

23.0

54.0

19.0

4.0

-

100.0

2.Friendliness to

customers

65.0

33.0

2.0

-

100.0

3.Satisfactory

23.0

42.0

10.0

8.0

17.0

100.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 72

government

support

4.Appropriate

training

17.0

60.0

21.0

2.0

-

100.0

5.Access to

capital

6.0

52.0

27.0

13.0

2.0

100.0

6.Previous

business

experience

6.0

16.0

19.0

36.0

23..0

100.0

7.Support of

family and

friends

17.0

32.0

35.0

10.0

6.0

100.0

8.Marketing sales

promotion

6.0

15.0

23.0

33.0

23.0

100.0

9.Good product

83.0

17.0

-

100.0

10.Good

customer service

42.0

52.0

6.0

-

100.0

11.Hard work

38.0

50.0

10.0

2.0

-

100.0

12.location

04.0

38.0

48.0

4.0

6.0

100.0

13.Record

keeping

-

11.0

27.0

54.0

8.0

100.0

14.Ability in

personnel

management

04.0

50.0

44.0

02.0

-

100.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 73

15.Community

involvement

04.0

21.0

16.0

36.0

23.0

100.0

16.Political

support

-

08.0

21.0

29.0

42.0

100.0

17.Reputation for

honesty

29.0

63.0

04.0

-

100.0

According to Table 26, the respondents had recognized the value of good

products to achieve success, but marketing was not perceived to be critically

important. However, marketing is of crucial importance, and awareness creation on

marketing appears to be important, for the advancement of this industry. Respondents

should ideally be successful as entrepreneurs..

As indicated in the study above, various factors play a major role in the

development and expansion of any business organization. A majority of the factors

that promote business expansion range from the good conduct of the employees,

honesty of the employees, support from family members, previous business

operations as well as availability of capital. However, there are various factors which

destruct business operations, which include low customer satisfaction, lack of

financial support, as well as the poor development of infrastructure. Customer

dissatisfaction is a major factor which leads to the destruction of various pillars of any

business which include financial gains as well as support from stakeholders.

ENTREPRENEURSHIP AMONG BRASS WORKERS 74

Using the findings provided in Table 26, seven statements, perceived by the

respondents as extremely important for success, in their descending order are

presented in Table 27.

Table 27; Respondent’s perceptions on the extremely important statements and the

relative percentage of respondents, perceiving so

Statement

Extremely important

% respondents

Rank

Good product

83.0

1

Friendliness to customers

65.0

2

Hard work

38.0

3

Reputation for honesty

29.0

4

Good management skills

23.0

5

Satisfactory government support

23.0

6

Marketing sales - promotion

06.0

According to the Table 27; It is noteworthy that although the quality of the

product and friendliness to customers was ranked high, the respondents probably did

not value highly marketing skills and sales promotion. There are various factors

which play a major role in the development of business. Some of the factors include

the hard work expressed by an individual, good business management, customer

satisfaction as well as the levels of marketing conducted by an individual. Good

conduct expressed by the various workers as well as the reputation for honesty by the

workers is important for business development.

ENTREPRENEURSHIP AMONG BRASS WORKERS 75

However it has been observed that intermediaries who transport brassware to

dry zone areas during the paddy harvesting period and make a lot of sales during that

period. If the brassware entrepreneurs engage in organized marketing during suitable

periods of the year, when substantial amount of money circulates among farmers, they

would be able to reap optimum economic benefits. For the achievement of a broader

view, the percentage of respondents who perceived the statements to be extremely

important and very important was added, and the total value so derived is presented in

Table 28.

Table 28; The Percentage of respondents who perceived the statements to be

extremely important and very unimportant for success of the industry

Statement

Percent respondents saying

extremely

important

Very

important

Total

Rank

Good product

83.0

17.0

100.0

1

Friendliness to customers

65.0

33.0

98.0

2

Good customer service

42.0

52.0

94.0

3

Reputation for honesty

29.0

63.0

92.0

4

Hard work

38.0

50.0

88.0

5

Good management skills

23.0

54.0

77.0

6

Appropriate training

17.0

60.0

77.0

6

Access to capital

06.0

52.0

58.0

8

Ability in personnel

management

04.0

50.0

54.0

9

ENTREPRENEURSHIP AMONG BRASS WORKERS 76

Marketing, sales promotion

06.0

15.0

21.0

10

From Table 28, it is interesting to note that a majority (77.0%) of the respondents

perceived that the need for appropriate training was regarded as a success factor.

However, according to Table 5, a little more than one-third (35.5%) of the

respondents had inherited the enterprise, while the percentage of respondents who had

purchased the enterprises from another person was only 04.1 percent. It is likely that

the ownership of the brassware industry is intergenerational, with rights to property

passing on to children from the parents. Under such conditions, the entrepreneurs may

be more inclined to follow the procedures learned from the elders, and it may hinder

innovativeness and creativity.

Therefore, appropriate training for brassware entrepreneurs may have to be

designed with an in-depth situational analysis and correctly identify needed

entrepreneurial training for the already established entrepreneurs.

4.10 Perceived business success

The respondents were asked to rate their perceived business success by

responding to a question on a four-point scale ranging from 4 = very successful to

1=below average. The responses are summarized in Table 29.

Table 29.The responses to question, “how would you describe your business

success?”

Response

Respondents reporting

Number

Percent

Very successful

01

02.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 77

Successful

Average

Below average

27

17

03

56.0

36.0

06.0

Total

48

100.0

According to Table 29, the majority (58.0%) of the respondents indicated that

they were either very successful or successful, A little more than one-third (36.0%)

stated that they had average success, while a very few (06.0%) thought they were

below average. A majority of business people regard their business as successful,

based on a combination of the various business factors. 58% of the respondents

recording success in their business are high compared to the extremists who had

recorded very high hopes of success in their business.

4.11 Satisfaction on business success

The respondents were asked, “To what extent they were satisfied with

business success.” They had to respond to a five-point Likert scale ranging from 5 =

very satisfied to 1= very dissatisfied. Their responses are summarized in Table 30.

Table 30. The respondents rating on satisfaction with their business success

Response

Respondents reporting

Number

Percent

Very satisfied

Satisfied

Somewhat satisfied

-

14

18

-

29.0

38.0

ENTREPRENEURSHIP AMONG BRASS WORKERS 78

Very dissatisfied

15

01

31.0

02.0

Total

48

100.0

According to the Table 30, The respondents in the categories of satisfied,

somewhat satisfied and dissatisfied were around one-third, or 29.0 percent, 38.0

percent, and 31.0 percent respectively. The results are probably indicates that the

industry success is not up to very high levels of satisfaction among the respondents.

Not a single respondent was very satisfied with the business success achieved. The

results suggests that public sector interventions are crucially needed to support and

strengthen this industry. As indicated in the table, a great number of people are

partially interested in their business success, because, in a majority of the businesses,

financial gains and business stability pose a major challenge to the business owners.

The various challenges faced by the businesses create the dissatisfaction by lowering

the expectations of the people in a majority of the businesses. However, with the

increase in revenue returns and business stability, business owners gain satisfaction,

as well as the sense to enhance and even improve the businesses.

4.12 meeting business expectations

The respondents were asked about how well the success achieved by them

was up to their expectations. The respondents had to indicate their responses on a

four-point scale ranging from 4 = more than I expected up, to 1 = did not meet my

expectations. The responses are summarized in Table 31.

Table 31. Level of perceived achievement of expectations

ENTREPRENEURSHIP AMONG BRASS WORKERS 79

Success in achieving expectations

Respondents reporting

Number

Percent

More than I expected

Met my expectations

Somewhat met my expectations

Did not meet my expectations

03

20

19

06

06.0

42.0

40.0

12.0

Total

48

100.0

According to the Table 31, almost one-half (48.0 percent) of the respondents

stated that they had met their expectations about business success. Although a

substantial number (40.0 percent) of the respondents stated that they had somewhat

met the expectations, some others (12.0 percent) stated that their expectations were

not achieved. Meeting business expectations is usually based on the generation of

good business strategies and goals. The set business objectives drive towards the

generation of a focus, and a goal, which enhances the attaining of set targets. Hard

work and focus in business, as well as the good relationship between customers and

employees, help business owners to attain their business targets easily.

4.13 Business related stress

In any occupation, there is a certain level of stress experienced by the

individuals concerned. Therefore the respondents were asked to rate the level of

business related stress experienced by them. The findings are summarized in Table

32.

Table 32. Business-related stress experienced by the respondents

ENTREPRENEURSHIP AMONG BRASS WORKERS 80

Level of stress

Respondents reporting

Number

Percent

Very high

High

Low

Very low

No stress at all

-

24

21

03

-

50.0

44.0

06.0

-

Total

48

100.0

According to Table 32, business related stress is high among almost one-half

(50 percent) of the respondents. Not a single respondent stated that he has no stress at

all. The results indicate prevalence of some level of stress among all the respondents.

Therefore stress management skills are probably needed by them. Business stress is

generated by various factors which include the losses in business, loss of customers,

high rates of taxes and even economic downfalls. Stress negatively reflects on the

business outcome. However, stress can be managed via various methods, which

include the healthy exercise of lifestyle, good business management, a good

relationship between the customers and the employees, as well as a good relationship

between the various members of the circle of the business owners.

4.14 Support from family and friends

When a business is operated at home, or even somewhere else, the assistance

or support from the family members is likely to be received to a substantial extent.

And when the business is operated in one’s village, friends also are likely to support.

ENTREPRENEURSHIP AMONG BRASS WORKERS 81

Therefore it was thought appropriate to identify whether the respondents received the

support of family members and friends.

Accordingly, the respondents were asked to state how they rate the support

from the family and friends. The responses were obtained on a five-point scale

ranging from 5= very substantial up to 1=very low. The findings are summarized in

Table 33.

Table 33. The respondents rating of the support received from family and friends.

Rate of support received from family

and friends

Respondents reporting

Number

Percent

Very substantial

Substantial

Medium

Low

Very low

04

16

26

02

-

08.0

34.0

54.0

04.0

-

Total

48

100.0

According to the Table 33, a large majority (96.0 percent) of the respondents

received support from medium up to a very substantial level. A little less than one-

half (42.0 percent) had received substantial and very substantial support from family

and friends. However, a little more than one-half (54.0 percent) of the respondents

enjoyed a medium level of support from family and friends. However, a small

minority (04.0 percent) of the respondents stated that they received a low level of

support from family and friends. The results indicate a favourable situation where

most of the respondent had received support from family and friends.

ENTREPRENEURSHIP AMONG BRASS WORKERS 82

Exercising in business activities is medium for a majority of business

operations because some businesses receive little support from their families. In a

majority of the businesses, the family members might be busy in other businesses, or

even other activities which make them not to participate in the businesses around the

homes.

DISCUSSION AND POLICY RECOMMENDATION

5.1 ELECTRICITY AND RAW MATERIAL PROBLEM

One of the major problematic areas faced by the brass workers is the rising

cost of raw materials such as brass, oil and electricity prices. Since there was a great

demand for the electricity after the war, the previous government had tried to increase

the capacity of the country by initiating various projects such as Upper Kotmale

hydropower project, Uma Oya hydropower project, and Norocholei coal power

projects. Hydroelectricity holds about 98% of the total available grid capacity and

58% of total power generation by 2013. Sri Lanka state-run hydropower electricity

development include Mahavali complex, Luxapana complex, and Samanala complex.

At the moment thermal power roughly matches the hydro-electricity capacity in Sri

Lanka. With nearly 49%available national grid capacity and 40% of all power

generation, Norochalai coal power station is the only coal-fired power station in the

country, which was commissioned in 2011 adding 300 Megawatts to the national grid.

There are plans to expand the capacity of Norocholai power station up to 600

megawatts during the next decade. At the moment Sampur coal power station is under

construction in Trincomalee and in expected to be completed by the end of 2017.

According to Ministry of Power and Energy (2015) Sri Lanka Energy Sector

Development Plan for Knowledge-based Economy 2015-2025.

ENTREPRENEURSHIP AMONG BRASS WORKERS 83

Wind power generation is facing obstacles such as economic and

infrastructure issues in Sri Lanka. The first wind farm that was connected to the

national grid was the 3Mv Hambanthota wind farm commissioned in 1999.The

problems faced in the development of the wind farms were

- Key transport routes are too narrow to take turbines larger than 600Kw.

- Developing a wind farm with lesser capacity is very costly.

Even at the current prices, Sri Lanka’s electricity prices per unit is

comparatively higher than its South Asian counterparts. But, still, the Sri Lanka’s

electricity board is making a loss on every unit and also debt reddens. In this scenario,

even if the government increases the supply of electricity of the country, it is not

possible to expect a price reduction. Sri Lanka Electricity Board has started

implementing an ambitious energy sector development plan for 2015 to 2025 with

plans to be energy sufficient by the year 2030. Ministry of Power and Energy (2015)

Sri Lanka Energy Sector Development Plan for Knowledge-based Economy 2015-

2025.

The best policy recommendation under these circumstances will be to;

- Give a concession on electricity charges to brass worker-entrepreneurs.

- Introduce an of special electricity supply scheme for small and medium

business owners.

- Upgrade Sri Lanka’s poor national grid.

Increased costs of electricity for the production of various components of brass are a

big challenge for a majority of the workers. When electricity costs increase, then the

cost of production goes up, making it hard for the people who do not have financial

capabilities to produce.

ENTREPRENEURSHIP AMONG BRASS WORKERS 84

5.2 Obtaining short term and long term financial capital.

Obtaining short term and long term financial capital can be identified as the

biggest problem faced by the small and medium business entrepreneurs throughout

our country and the world. According to the GTZ Promis survey of 2007, there are

about 10,000 microfinance institutes in Sri Lanka. According to this study, the

majority (60%) of the borrowers were a woman, and 23 MFI’s reported they had 90%

woman borrowers while a few had reported of having 100% woman borrowers. The

world bank consultation group to assist the Poorest (CGAP) conduct a country level

effectiveness and accountability review (CLEAR) in 2005, in which they reported

that Sri Lanka’s microfinance had achieved an impressive outreach, with more than

five million deposit accounts and two million outstanding microloans in 2004, from a

population of 20 million people. Microfinance Industry Report SRI LANKA (2014).

The first Sri Lankan microfinance institute was started as a savings and loan

cooperative in Central Province in 1906. According to some of the sources, there are

about 16,400 MFIs operating in Sri Lanka. But 3750 of them are not under any

prudential financial regulation. One of the drawbacks of Sri Lankan microfinance

sector was the lack of regulations to counter these weaknesses. The Central Bank of

Sri Lanka introduced MFI Bill draft three which regulated licensing, realistic interest

rates and risk of borrowing. Microfinance Industry Report SRI LANKA(2014)

Samurdhi is a government development program aimed at policy alleviation

and strategies to reduce rural poverty were initiated in 1995. The government of Sri

Lanka spends about Rs 10 billion annually for this program. The Samurdhi program

has three main components. Samurdhi Authority - Sri Lanka. (2016). Financial

capacity is high required in the production of good products, as well as the sustenance

of any businesses which lack financial capacity find it hard to produce and even

ENTREPRENEURSHIP AMONG BRASS WORKERS 85

compete with other producers and marketers. Financial capital is essential in the

development of any business operations, and for the brass workers, financial capacity

was as important because it enhanced the development of businesses.

1. Consumption grant transfer

2. Savings and credit program

3. Rehabilitation and development of community infrastructure with

continuously participating and social development programs.

According to the research by D.S.W Gunawardane (2011), Samurdhi program played

a major role in poverty reduction in Sri Lanka. According to the research findings,

there was sufficient evidence to indicate that brass workers do not have sufficient

knowledge about the short term and long term financial options available and how to

utilize them in a proper manner. It is therefore highly recommended to provide

workshops and training programs on the short term and long term financial options

available for them and how to use such services for the maximum benefits of the brass

workers and small and medium entrepreneur sector as a whole.

5.3 Unreliable and undependable employees.

According to the socio-economic Data of Central Bank (2015), 2014 Labor force

participation rate is male 74% female 34%, the unemployment rate is 4.4%, 15.3% are

public sector employees and 41.1% are private sector employees, and 31.9% are self-

employed. The main reason for unreliable and undependable employees is the lack of

proper education and proper training in a specific field. The brass workers who are

working in the brass workshops don’t have special skills or training in a specific area,

They are working in the brass workshops on daily basis work since they are not

ENTREPRENEURSHIP AMONG BRASS WORKERS 86

specialized in this field. They are working on the brass workshops only until they find

any job where they are paid higher wages.

The government has started vocational training courses that provide

professional training for different industries, but these courses do not include the

traditional brass artistry. The main reason for this may be that the government cannot

give assurance or predict the future development of the traditional handcraft industry.

Therefore it is highly recommended that the government should plan and conduct

proper training programs for the new entrants for the traditional handcraft industries

like the traditional brass industry under the guidance of the expert traditional

craftsmen.

5.4 Management training, accounting training, marketing training.

Entrepreneurs who provided data for this survey were concerned about their

inability to maintain accounts and the lack of management and marketing training. Sri

Lanka government provides free education meaning there is a greater availability of

the younger generation for education without much stress; free education was initiated

in 1950’s on the patronage of Mr. C.W.W Kannangara. As a result, Sri Lanka has a

quality workforce that is capable. The government of Sri Lanka has initiated

education and training programs aimed at the small and medium business sector.

Examples of such training programs are

- Samurdhi Authority of Sri Lanka is conducting basic training programs for

small and medium enterprises. Samurdhi Authority - Sri Lanka. (2016)

ENTREPRENEURSHIP AMONG BRASS WORKERS 87

- The Export development board and industrial development board conducting

basic and advanced training courses aimed at different sectors. Export

Development Board (EDB), Sri Lanka (2012

Other than these programs the private sector organizations and government

and private universities conduct higher level education and training programs at a

high cost. The biggest obstacle faced by brass workers and small business

entrepreneurs is the cost of the training and education programs.

- Therefore it is recommended to design and implement short, flexible, up to

date training programs aimed at small and medium entrepreneurs, which can

be initiated with responsible government institutions.

- The introduction of new and updated technology to the brass workers.

- From an institute to transfer expert knowledge of traditional brass workers and

other traditional crafts to the younger generation.

-

5.5 Government regulations and bureaucracy

According to the ease of doing a business index of the world bank group

(2016), Sri Lanka stands at 99 out of 185 countries in the world. World Bank Group

(2016) Global Economic Prospects According to this report Sri Lankan’s are facing

obstacles in starting a business, dealing with construction permits, getting electricity,

registering property, getting credit protecting investors, paying taxes, trading across

borders, enforcing contracts and resolving insolvency. Even though the government of

Sri Lanka introduced different policy changes aimed at simplifying its bureaucracy

and its regulations, so far it has achieved only little success. For example, some of the

important government institutions still use forms that were used in 1950’s.

ENTREPRENEURSHIP AMONG BRASS WORKERS 88

At the moment the Sri Lankan government has taken the following steps to

decrease the bureaucracy. 2016 ICTA (2016)

- Introduce 205 online services by 90 government services

- 60 services by mobile applications and from 45 government organizations

- 2300 servicers though government information center fourteen hours per day

and seven days a week from 320 government organizations in three languages.

- 60 interdictory services through common 1919 number through agents.

Other than the above-mentioned changes the Sri Lanka government is changing the

bureaucracy through different policy changes. But still, there are lots if changes that

can be done by the government.

Therefor it is recommended that;

- Increase the use of ICT, and increase the knowledge of government officers on

the subject of information technology.

- Creating one point entry system for the critical government procedures.

- Decrease the document process time.

- Educating entrepreneurs about the new changes to different training programs

and workshops.

5.6 Tax associated problems.

According to the Sri Lanka’s inland revenue department, the personal income

tax rate is 24%, the personal income tax rate average is 29.64% from 2004 until 2014

reaching all time high 35% in 2007 and low value of 24% in 2011. According to the

2014 performance report of the Inland Revenue department, there are 625,376 total

taxpayers, and from these tax files, 39,535 are companies, while 559,360 are

ENTREPRENEURSHIP AMONG BRASS WORKERS 89

individual taxpayers. For the year 2014, the total tax revenue of 514,161 million with

an increase of 21,622 million compared to 2013. The people who are paying the

income tax are as a percentage is very low. According to DEPARTMENT OF

INLAND REVENUE (2014)

Because of this low tax revenue, the

government has added different types of taxes such as NBT, aiming at all the people

including the low-income sector. As a result of these different and confusing

government tax schemes. DEPARTMENT OF INLAND REVENUE (2014)

- The living cost has gone up (statistical examples)

- Raw material and other services cost has gone up (statistical example)

The Inland Revenue Department has adopted different strategies for increasing the

revenue, efficiency, and effectiveness of the department. Some of them are,

1. Overseas training programs

2. Seminars, workshops

3. In-house training

4. Increasing the employees

5. Promotions.

6. Increase the presence of e-governance and web presence

7. Policy changes.

While it can be highly appreciated the steps that have taken by the Inland

Revenue Department increase the tax revenue, there are policy recommendations that

can be introduced for the betterment of this sector.

ENTREPRENEURSHIP AMONG BRASS WORKERS 90

- Increase the online presence and introduce one point entry for the Inland

Revenue Department.

- Identify the areas that need to be taxed and areas that should not be taxed, at

the moment Sri Lanka government exercising taxation on different types of

farmers and entrepreneurs who make products in Sri Lanka that saves

taxpayers money.

- Introducing tax relaxed policies on the goods and services manufactured that

produce items that are needed for Sri Lanka.

- Introducing tax relaxed policies on small business entrepreneurs such as brass

workers who are struggling for economic survival.

5.7 Government support.

At the moment the government of Sri Lanka has ambitious goals for poverty

reduction and the small and the medium business development. These goals are

continuously achieved through different development programs throughout the

country. Such as national, provincial councils, Grama sewa regions. The ministry of

industry and commerce has introduced a national policy framework for small and

medium enterprise development, which identifies eight policy interventions and

strategies to be achieved. Ministry of Industry and Commerce (2011) National Policy

Framework for Small Medium Enterprise (SME) Development. They are;

1. An enabling environment for entrepreneurs

ENTREPRENEURSHIP AMONG BRASS WORKERS 91

2. Modern appropriate technology

3. Entrepreneurial culture and skills development.

4. Access to finance

5. Market facilitation

6. Research and development

7. Resource efficiency

8. Regional balance

These eight strategies will be achieved through four implementation arrangements.

They are;

1. Coordination for the implementation of the policy.

2. SME advisory council

3. SME cluster committees

4. Monitoring and evaluation.

The industrial board of Sri Lanka also provides training and workshops,

engineering services, marketing, technology, machinery, library and information and

infrastructure services for the SME sector. Ministry of Industry and Commerce

(2011) National Policy Framework for Small Medium Enterprise (SME)

Development.

Based on the finding of this study, the following recommendations are made.

1. Create an efficient program to collect scrap metal and an appropriate

distributing system among the brass workers.

ENTREPRENEURSHIP AMONG BRASS WORKERS 92

2. Initiate a program to take vital statistics about general SME sector In Sri

Lanka

3. Create an efficient information office to get business, marketing, financial, tax,

information effectively.

4. Increase the effectiveness of “LAKSALA” institute.

5. Discourage importing competitive products to the country.

6. Initiate a program to organize effective exhibitions throughout the country.

7. Increase the effectiveness and efficiency of the government officers who are

working with the SME related departments by effective guidance and training

programs.

8. Create effective business clubs and affiliation programs to promote traditional

handcrafts.

CONCLUSIONS

Based on the findings of this study, carried out on 48 traditional brass workers

living in the villages of Pamunuwa and Kiriwawula of the Pilimatala area of Kandy

district there were several useful findings. According to the brass worker-

entrepreneurs, the highest motivation factor was to increase their income, followed by

using their past experiences and training as well as to be closer to the family.

Compared to the similar surveys done in other countries was found that the most

critical motivational factor was to increase the income. The chief success factor

identified as the most important by brass workers was to deliver a good product at a

competitive price followed by charisma and friendliness to customers followed by

good customer service, hard work, and reputation for honesty. At the moment the

traditional brass industry is declining, which had thrived varied well about 25 years

ENTREPRENEURSHIP AMONG BRASS WORKERS 93

ago. There are reasons that contributed to this situation. But according to the brass

workers, the problem areas crippling the brass industry are escalating raw material

prices including brass and oil. The other factors that brass workers identified as

problematic areas included competition, obtaining short and long term capital, a weak

economy and unreliable and undependable employees.

Brass workers have played a major role in the development of the activities of

Sri Lanka economy. The activities in which the people have engaged themselves in

has provided a major ground for the development of many families, financially,

socially and even economically.

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