Entrepreneurial Behaviour of Local Governments to Create New Enterprises - Drivers & Barriers: A Case Study of Andhra Pradesh

Abstract

Local Governments have been established with the mandate of “Social Justice and Economic Empowerment”. With this great objective, the Local Governments at Gram Panchayat level have a responsibility to provide livelihoods to the rural communities by establishing enterprises as per the devolution of the subjects (29) explained under Schedule 11th of 73rd Constitutional Amendment. Afresh established enterprises will boost the vitality of economies and create employment. Starting a new enterprise represents a choice based on the individual, institutional and subjective motives, also on the entrepreneurial environment. Therefore, regardless of the origin, a creator’s motivation epitomizes a commitment to a project idea, and thus commands the future triumph of the enterprise. The entrepreneurial motivation factors affecting positive intention to establish enterprises are made up of behavioural control, subjective norm, and attitude towards entrepreneurship. Subjective norm and attitude towards entrepreneurship are meaningfully correlated to both instantaneous and future intentions to establish enterprises. However, behavioural rheostat on entrepreneurial motivation is found to be significantly related to immediate intention but not significantly related to future entrepreneurship expansion goal. Cultivating entrepreneurial behaviours to create enterprises for providing livelihood opportunities is seen as crucial. This article explores the motivational silhouettes of local governments, and scope to form innovative enterprises by identifying the drivers and barriers for the local governments who are really serious to develop through entrepreneurship interventions and initiatives and also to provide livelihoods opportunities to the rural communities.