Motivating Factors in start-up of service enterprises in Nagaland

Abstract

Starting an enterprise is a risk taking, challenging and needs mental preparation. Thus, understanding common start up problems and key success factors can help entrepreneurs make the right decision. There is no short cut to success. It has to go through experiment, trial and error and hard working. Nagaland is an agricultural economy, but her Gross Domestic Product is contributed mainly by the services sector. There is a need to explore the avenues and viabilities of different sectors so as to increase the pace of development. This paper analyse the factors influencing start-up of enterprises in the service sector in Nagaland using 233 respondents, who have already set up their business, were selected through random sampling. The study uses five point Likert’s scale ranging from strongly agree to strongly disagree (5=strongly agree, 4= agree, 3= undecided, 2= disagree and 1= strongly disagree). The study finds that ‘to be self dependent’ is the most influential factor for starting an enterprise. The study also finds that in micro and small enterprises ‘to be self dependent’ is the driving factor whereas in medium enterprises ‘to create employment’ is the motive of entrepreneurs in starting their business.