Factors influencing growth of micro entrepreneurship in the hospitality industry: An empirical study in India

Abstract

Entrepreneurship is the process of economic growth, development, creation, and poverty reduction while all Sustainable Development Goals (1), integrated towards No Poverty, is the sync that make the path in the needle for major livelihood. This article examines the internal and external factors that influence the growth of micro entrepreneurship in the hospitality industry. Internal factors include motives and issues and challenges of entrepreneurs and the external factors include socio-economic factors and financial factors related to hotel industry. A critical examination with few literature suggests to proceed further to understand the motives and challenges faced by the small hospitality business entrepreneurs along with socio-economic factors. As a result of the assessment of literature, identification of gaps in various sectors and as the world has recently been expanded to include socio-economic and financial kinds of entrepreneurial action, the researchers have narrowed the search to evaluate motivations and business obstacles faced by small business entrepreneurs in the hospitality industry. Considering some quantitative approach among different small hospitality business entrepreneurs, opinion towards the attributes like motivation factor, issues and challenges, growth and development of entrepreneurs were collected from a sample of 250 respondents from Coimbatore district. To gauge the same, the research proposed a model that assess the influence of internal and external factors on the growth of small business operators. Results indicate that there exist some influence among few of the internal and external factors on progress of the entrepreneurs based on the motivation they undergo to overcome the challenges and keep them engaged in the hospitality sector.

Keywords:

• motivation
• issues and challenges
• socio-economic factor
• financial factor

1. Introduction

Most of the developments in the hospitality sector for the past two decades were highly significant for the growth of small businesses. Many philanthropist and decision makers of this particular sector want to identify the hindrances and revamp with innovation and growth. Many researchers, however, extended beyond the boundaries to understand the economic geography. There are other uncertainties stimulated through theoretical enquiry that required to reveal how small businesses “worked” and how they articulated with the economies of destinations. Research has, however, extended across the boundaries of economic geography. Most intellectual effort needs to be indulged with the motives, challenges and socio-economic attributes. This research provides a comprehensive review to shape the gaps that have taken place for the last few decades; there are some challenges identified as the above-mentioned attributes and these attributes are analysed with various structured literatures.

Entrepreneurship is the engine that propels each successful sector or company forward. There are some sectors that are rapidly evolving like hospitality, tourism and leisure sector worldwide (Banerjee, 2011). Thomas (2000) mentioned that tourism always offers opportunities to start up various types of its associated segments, especially into small or microbusiness as a sole proprietor and in partnership. Entrepreneurship is designed to develop a greater considerate of the procedure and background for entrepreneurship as well as to provide key concepts that enable to become more entrepreneurial themselves (Reijonen, 2007). “An entrepreneur is a person who organises, manages, and accepts the risks of a business or venture,” according to Merriam-Webster Dictionary. The term entrepreneurship has many different meanings in different industries and fields, leading to misunderstanding in both the corporate and academic worlds (Mohanty, 1992). Entrepreneurship is “the desire, motivation, and abilities required to establish and operate a successful firm” (Hansen, 2011), which point out that the concept of entrepreneurship differs depending on how opportunity is defined. A clear-cut and controversy-free definition is no where within grasp (Sikalieh, 2010). Many people conflate entrepreneurship with innovation; yet, there is a significant distinction between the two terms. Morrison has noticed that entrepreneurs in the tourist and hospitality industries are primarily motivated by a desire to live a specific social lifestyle, with economic motivations playing a secondary role. This study explains hospitality and tourism firms as at least a minimum of ten persons are recruited to execute the plans in this particular sector. There are many start-ups inclined towards this business for earning more profit or security (Ateljevic, 2000). Thomas et al. (2011) explained about the entrepreneurial motivation based on their lifestyle and business orientation. The type of entrepreneurial motivation in tourism and hospitality has been an important topic in the literature, which is normally classified as either business oriented or lifestyle oriented. Lifestyle entrepreneurs create a business to alter their business and lifestyle. They are ignited with full of aspiration for exploration and start some business away from their home country, to generate lifestyle benefits and quality of life (Sveinsdóttir, 2020).

The development of entrepreneurship is important and crucial for the economic growth and well-being of individuals of an area or a country. Since there is a dearth of government and private jobs globally, which is more so in the developing world, people consider entrepreneurship as a rewarding career option (Shubhawita, 2006). The word hospitality means “friendly and generous reception and entertainment of guest”. According to Singh & Onahring (2019), hospitality industry consists of all types of accommodation and catering outlets like hotels, lodges, motels, boatels, restaurant, bakery, kiosk, milk bar, dhabas, night club, discotheque, take away, banquet, fast food service, etc. The hotels and catering houses constitute the most important segment at the destination. Therefore, the hospitality industry is measured as the centre pillar of the tourism industry. An adequate development of hotel and catering houses with the original scenery of a destination, sporting and entertaining facilities will not suffice to sustain a good volume of tourist trade. It is a fact that tourism industry encourages the hospitality sector to grow and vice-versa (OECD, 2020). Bill Gates, former CEO of Microsoft Corporation, in one of his interview, remarked that in the coming years, service sector (hospitality industry is a part of service sector) would be the largest industry in the world.

People are drawn to entrepreneurship for the sole purpose of founding a firm. These are some of them: Entrepreneurs are in charge of their own destiny. They are the ones who make the decisions. They get to select who they do business with and what kind of work they do. They select how long they will work, how much they will be paid, and whether or not they will take holidays. Working for someone else has a lower chance of attaining big financial benefits than entrepreneurship. It allows one to be a part of the entire business process, from concept to design and development, from sales to business operations and customer service. It comes with the dignity of being in command. Entrepreneurship provides people with the opportunity to make a difference. Most new entrepreneurs make a choice decision to pursue entrepreneurship after assisting local budget careers where they dwell. The inn industry is in charge of a wide range of guest accommodations. To be sure, the lodging industry is associated with opulent hotels and resorts, but it also recalls short-term accommodations such as guesthouses, motels, hotels, and inns (Hotel Review and Survey Committee, 1967). The fundamental purpose of inns is to provide food, beverages, services, and a safe haven for visitors while they are away from home. Hotel management entails overseeing everything relating to the hotel sector. If one wants to get into this industry, one will need to learn about all aspects of hotel management, including marketing, hotel administration, catering management, cleaning, and accounting (Jreat, 2004). The major purpose of studying the ins and outs of hotel management is to properly operate a hotel while also managing other elements of the business.

Inn the board is a highly concentrated action that needs both knowledge and expertise. As an innkeeper, one should increase the adequacy of the inn’s offices and assets to modify limits and requests (Kadam, 2013). One should also be aware of the growing number of on-line travel agencies, which have given this business a new dimension. The executives’ objective of increasing inn revenue is to accept innovative tactics with the final goal of increasing customer loyalty. While hotel promotion and revenue management might be puzzling, there are certain low-cost and effective tactics one can employ in their inn (Gerstlberger, 2021). In this backdrop, the study aims to identify the motives and business challenges by entrepreneurs of the hospitality industry.

For long years, nearly around fifteen years, Street Business School (SBS) majorly empowered nearly thousands of women to start their small scale business to triple their income. Many of the women earn their pocket money better by their small business like handicrafts, dairy, cookery and others. Also, they support their family and educate their children, which increases the sustainable communities.

2. Review of literature

2.1. Internal factors (motives, issues and challenges)

According to Vincent Charles (2013), a desire for independence, monetary incentive, lack of employment or career possibilities, and a need for work–family balance are among the main pull and push motives for becoming an entrepreneur. Popular motives for starting a business include a desire for independence and financial gain, time flexibility, balancing job duties and earning potential, and family responsibilities (Waltower, 2022), and identify motivators such as a desire for self-actualization or independence, more income, or the ability to be one’s own boss (Sappleton, 2009). Komppula (2007) discovered various performance drivers in small tourist enterprises through their research, including underlining the significance of motivation and challenges for customer orientation, excellent leadership abilities, internal marketing, and a solid firm and product reputation. Although there are numerous reasons for company failure, finance, demand forecasting, management, and marketing strategy and planning are among the most typical challenges with small businesses, particularly those under three years old. Managerial incapability, quality management failure, and insufficient resources are all examples of failure tied to internal and external issues like socio-economic attributes (Morrison, 2004). In this regard, several of these failures have a significant link to the motivation and challenges of entrepreneurial leadership (Peters, 2008). Many hospitality sectors in Canada say that a lack of tourist marketing and support from the government and financial institutions hampers their company growth (Chen, 2019), potential regions based on the factors, namely the count of hotels, number of rooms and number of beds in the first part; and in the second part, tourist information centers, and travel agents and availability of computerized system of reservation of the seats in the buses. The main findings in the first part are in terms of hotel rooms and beds. Manali has emerged as intensively very significant tourist potential place (TPP); in the second part, there are four tourist potential regions, namely, Kullu Manali, Simla, Dharamsala-Palampar, and Kangra. Out of these, Manali occupies the first place as its TPP has attained a very significant attraction of a high degree and consequently, it has placed itself over the world tourist map. Domestic travellers mostly use the Indian lodging industry, whereas wealthy tourists use the luxury hotel sector. Only a few premium hotels, he claims, offer sophisticated entertainment facilities, while others lack any type of family entertainment (Jreat, 2004). Currently, the hospitality sector faces a lot of challenges and motivation with the present tax system, because basic infrastructure is neglected. The entrepreneurs are demotivated, and finally basic inputs are suggested like (i) the government can give stronger financial incentives and aid to businesses and (ii) the rooms sold in the hotel are to be calculated on par with commodities sold (Stabler & Goodall, 1997).

2.2. External factor (social, economic and strategies)

(Salleh Mohd Radzi, 2015) Many Tourism Development Corporation’s financial performances are calculated with financial ratios like fixed assets ratio, working capital ratio, net capital employed ratio, net worth ratio, direct cost ratio, gross profit ratio, interest ratio, return on investment ratio, operating profit ratio, gross profit ratio, and salary to sales ratio to overall tourism development corporation. Although many tourism development corporations across countries use financial ratio calculation (Gerstlberger, 2021), the sector has been attributed to a variety of factors. She researched and discussed growth patterns using percentages, graphs, index numbers, and linear and exponential growth trends. She has also looked at the present spatial organisation, focusing on room–bed capacity. Second, she examined the nature and characteristics of a partial transition that occurred over the previous decade and predicted the industry’s future structure. She has also made an analysis of concentration of hotel industry by using Index, Entropy index and Linda Index. She has also studied potential competition and tariff structure in the industry by using regression analysis. Further, by applying Gronroos Model, she has studied the quality of hotel services. She concludes that the growth of higher spending hotels is more impressive, and the hotels are concentrated in only six cities. Due to the scarcity of data, the study could not pursue other issues like factor productivity, profitability, break-even point, capital:output ratio, quality output ratio, etc. (Mohanty, 1992). The biggest challenge before the private companies is that they have to reconcile their expansion plans with futurist plans of 21st century; otherwise, much of the investment would be wasteful. Michael Schmidt (2021) recommended in their findings that accommodation were to give a bundle of monetary, fiscal, and other incentives in order to promote investment in the industry. Kamya Jaiswal (2012) believes that the government’s meticulous planning in terms of monetary and fiscal incentives will define the future of the hospitality industry, encouraging many young hospitality entrepreneurs to enter and invest in the sector in the future, assuring the country’s continuous growth and development. He claims that the hotel sector is designed to serve as an infrastructure for the tourist industry, which has a huge profit potential owing to prospective tourism expansion. The sector has made a significant contribution to the national budget and given a considerable number of job opportunities, in addition to numerous additional multiplier effects in all segments of the business.

According to Kadam (2013), the primary cause for a setback in the hospitality sector includes lack of suitable infrastructure such as airports, road transportation, communication, and so on. He reminds out that premium and deluxe hotels still have a scarcity of room facilities. He ends by stating that adequate tourist planning is required for small company entrepreneurs, admired for being independent and in charge of their own fate. However, the truth might be quite different. Owners, for example, have no influence on financial, marketing, administrative, economic, technological, or employee-related issues, as well as government rules and initiatives (Vaught, 2010); this can easily result in corporate failure. According to Krishnaswamy (1980), a country must have hotels at varied sites in order to increase tourism. He further claims that the nations from which India used to attract tourists have experienced a halt in growth. The sluggish growth rate of tourist arrivals is caused by factors such as political unrest, increases in gasoline prices, inflation, and recession. It was revealed in a case study that a company’s accounting system assists in uncovering the true state of affairs in the hospitality industry. Mason (2003) suggests that management utilise operational charts for various departments to show profit/loss, sales, and various operating expenditures of these departments, as well as their contribution to the company’s net profitability, over time, the extent to which there is a need for accommodation services. Many elements, such as the length of a visitor’s stay and the occupancy rates of tourist lodgings, should be considered when determining the number of rooms required. The number of rooms or beds required for visitors increases as the yearly occupancy rises, and vice versa. The correct supply, in the right place, at the right time, and the right price, must be built up in terms of demand. Failure to account for future demand would result in either accommodation bottlenecks, which will hurt the tourism business, or surplus accommodation, which will cost the hotel sector money. Because these incomes are denied to other developing sectors due to the improper allocation of scarce resources for this purpose, the entire economy suffers. Banerjee (2011) conducted a study in this area and looked at the capacity of hotels in twelve major tourist hotspots in Uttar Pradesh. The study’s key conclusions were that domestic tourists are not picky about where they stay or expect greater service. Foreign visitors, on the other hand, want higher-quality accommodations. As a result, there is a housing scarcity in response to foreign tourists when enigmatic fundamental breakdowns are presently seen as solidly looming (Apostolopoulos & Liargovas, 2018).

2.2.1. Entrepreneurial growth

Zhang & Enemark (2016) analysed the factors that influence business performance in hotels and restaurants. According to the study, business success is assessed by turnover per employee, and is affected by a variety of factors, including firm-internal factors, external economic and demand factors, locational factors, and significant quantities factors. Using an economic model and data from small businesses, the hypotheses were put to the test. The findings demonstrate that traditional explanatory variables including earnings, company investment levels, regional productivity of hotels and restaurants, firm’s intensity are positively correlated with business performance in the hospitality and restaurant industries. Entrepreneurs must have a dynamic mindset and a fresh approach because business is a system made up of certain external circumstances. When examining the factors influencing organisation effectiveness in the hotel industry of Nepal, Chalise (2021) stated that employee qualification, administrative efficiency of hotel management, and training and experience supplied to the employee are found to be important predictors of organisational performance; however, the location factor was not found to be the component of organizational performance in the Nepalese hotel sector.

2.3. Hotel industry

According to the Hotel Review and Survey Committee (1967), the main area of concern of the Committee was to review the classification of all hotels located at different locations, including the hotels that are newly constructed and are willing to be classified. The Committee was also entrusted with the responsibility of calculating the total room requirement at the end of the 4th Five Year Plan. Another important task that was given to this committee was to review the rates charged by these hotels and to determine the rational basis for standardizing the rate structure. The Committee visited 221 hotels and 94 restaurants located at different locations throughout the country and noticed that only 178 hotels and 59 restaurants were found suitable to be approved. As regards rate structure, the Committee recommended that the hotels should be given a free hand to fix their rates within the modified Hubert Formula. The Committee estimated that by the end of 1981, the requirement of rooms in 3, 4, and 5 Star hotels will be 29,025. Another main recommendation of the Committee was to have a permanent committee to inspect the hotels for classification, as and when the need arises. Spatial planning, which strives to examine the geographical pattern of distinct temporal stages, may be used to make physical planning decisions. The author investigated the geographic organisation of the hotel sector in Mysore (Mahadev, 2010).

Bandura (2001) explained the motivations and activities, entrepreneurs produce, and experience from the functional neurobiological like symbolic, social, psychomotor, and other skills. The nature of such experiences depends greatly on the social and physical environments that people select and construct. An agentic perspective contributes to a biopsychosocial understanding of human development, adaptation, and change. Experience depends greatly on the external environment like the socio-economic and internal factor like motivation (Font, 2016).

The above literature review shows that a comprehensive view must be established to examine the internal factors like motives, issues and challenges, along the relation with external factors like social and economic factors and strategies for the development of entrepreneurial growth and development. A conceptual framework Figure 1. (Hussain et al., 2013) of this study is to investigate such issues, as it can explain entrepreneurship intention from the view of internal personal factors and the environmental facilitators.

Figure 1. Research conceptual framework.

Source: Hussain et al. (2013): Factors Affecting the Growth of Enterprises: A Survey of the Literature from the Perspective of Small- and Medium-Sized Enterprises.

Entrepreneurship is multi-dimensional and focuses on both the internal and external factors that have impacted small entrepreneurial businesses survival and success (Cervone et al., 2001).

3. Method

The design of the study was quantitative research, and the participants were chosen using a non-probability sampling procedure in order to meet the research’s goal. Local hotel entrepreneurs in and around Coimbatore were chosen as the demographic for the study’s responses. The study’s sample size is 250 people. Convenience sampling was utilised as the sample method. The sampling is chosen based on the ease with which visitors may get it. The primary criterion for selecting this sampling process is the sample unit. Convenience sampling is a non-probability sampling method in which subjects are chosen for their ease of access and closeness to the researchers.

Coimbatore is the study area’s location. Coimbatore was chosen because it is a large industrial city in Tamil Nadu, sometimes referred to as the “Manchester” or “Detroit” of India. It is well-known for producing motor pump sets and other technical products. Coimbatore is noted for its numerous industries, engineering items, textile mills, educational institutions, health-care facilities, pleasant climate, friendly culture, and hospitality. It is on the banks of the Noyyal River in western Tamil Nadu, with the Western Ghats on all sides. By road, train, and air, it is well connected to India’s major cities and towns. Coimbatore has a total land area of 246.8 square kilometres. This city has a population of 1,601,438 people. The elevations are 411 metres above sea level.

A structured questionnaire was used to obtain primary data. The attributes included in this research are the motives, challenges and opportunities. The questionnaire used for the study consisted mainly of two kinds of questions, namely multiple choice questions and rating scale questions. The respondents filled the multiple choice questions and Likert’s rating scale questions. From the collected responses out of the questionnaire, further coding and analysis were performed in order to get at the study’s findings, recommendations, and conclusion. The research approach for the questionnaire employed a 4-point likert’s scale as the scaling tool. It took into account factors such as strongly agree, agree, neutral, disagree, and extremely disagree. SPSS 20 was used to conduct the statistical analysis like Frequencies, Analysis of Variance and Regression.

4. Need for the study

The purpose of this research is to gather information on the features and qualities of small and medium-sized hotel (SMSH) owners in order to discover unique problems in beginning and running enterprises. Some of the factors fueling business visionaries’ initiatives include the desire to be financially independent, to be one’s own boss, to contribute to a privately held enterprise, and the prospects in the hotel sector (Foundation, 2022). Among the key business obstacles highlighted by SMSH owners are firm troubles in the hotel industry, higher labour costs, reduced interest, and a shortage of skilled representatives. To deal with these issues, a few essential systems have been implemented. Contribution-based valuing, improved advertising and promotion channels, improved administration quality, and superior client service are only a few of them.

5. Research objectives

The objective of the research is to understand the opinion differences among different gender, age group, educational qualification towards factors included in the study (Motive factor, Issues and challenges, Government-related problems and Strategies) of entrepreneurs in the hospitality sector.

To envisage and evolve with a research model of small business operators with motives to overcome the challenges and engaging them in the hospitality sector is proposed.

6. Data analysis and interpretation

Table 1 shows the frequency distribution of the respondents’ demographics. It is evident from the result that majority (93.2%) of the respondents are hotel owners. Gender distribution has shown that majority (98%) of the respondents are male. It can be inferred from the above table that under the age distribution of the respondents, the category 46–55 years has the highest frequency value of 98 (39 percent). Marital status of the respondents has shown that majority of them are married (84 percent). It is evident from the result that most (33%) of the respondents hold an under graduate degree as their Educational qualification. It is inferred that 23.2 percent respondents are Management/Business administration, followed by 20.8 percent with technical/Engineering, 0.4 percent with tourism/hospitality in their area of specialization. For the languages known category of the respondents, it is inferred that 19.6 percent of respondents know only one language followed by 63.2 percent of respondents who know two languages and 17.2 percent of respondents who know three or more languages. Under the work experience category of the respondents, it is understood from the table that 53 percent of the respondents have work experience under management/administration category. Coming to the year of establishment of the hotel industry business of the respondents, it is evident that majority (71%) of the respondents have started their business during the period 2010–2019. It is inferred for the source of income that 21.2 percent of respondents have their fund source from personal/family saving followed by 67.6 percent of respondents with bank loan, 11.2 percent of respondents with private loan. Thus, the result shows that majority of the respondents had their source of capital from bank loan. It is inferred that 76.4 percent of respondents do their business with personal property and 23.6 percent of respondents do business with rented property. Thus, the result shows that majority of the respondents run their business with personal property. It is inferred that 58.4 percent of respondents started up their business with less than one crore followed by 36.4 percent of respondents with more than one crore and less than two crore, 5.2 percent of respondents with more than two crore. Thus, the result shows that majority of the respondents started their business project with less than one crore. It is understood from the above table that 75.6 percent of respondents are having single ownership and 24.4 percent of respondents are having partnership. Thus, the result shows that majority of the respondents are having single ownership. Expecting years of break-even point of the respondents’ business shows that majority (74 percent) of the responses fell into the category of 0 to 5 years. It is inferred that 18.4 percent of respondents were delaying their responsibilities due to non-availability of finance followed by 28.8 percent of respondents with lack of motivation, 4.0 percent of respondents with fear of failure, 23.2 percent of respondents with lack of family support, 4.4 percent of respondents with lack of entrepreneurial skill, 16.8 percent of respondents with fear of competition, 4.4 percent of respondents with other reason. Thus, the result shows that majority (29 percent) of the respondents were delaying their responsibilities due to lack of motivation. It is inferred that 59.2 percent of respondents acknowledge their business season between April and July followed by 3.2 percent of respondents between July and October and 37.6 percent of respondents between October and March. Thus, the result shows that, for majority (59 percent) of the respondents, the business season is between with April and July.

Table 1. Frequency distribution for demographic characteristics of the entrepreneurs in the hospitality sector (n = 250)

Variable	Category	Frequency	Percent
Position	Hotel owner	233	93.2
	Hotel manager	7	6.8
Gender	Male	245	98.0
	Female	5	2.0
Age	<25 years	13	5.2
	26–35	49	19.6
	36–45	55	22.0
	46–55	98	39.2
	Above 55 years	35	14.0
Marital status	Married	211	84.4
	Unmarried	39	15.6
Educational qualification	Primary school	44	17.6
	Secondary school	32	12.8
	Certificate/Diploma	39	15.6
	Undergraduate	82	32.8
	Postgraduate	53	21.2
Area of specialization	Management/Business Administration	58	23.2
	Technical/Engineering	52	20.8
	Tourism/Hospitality	1	0.4
	Others/Not related	139	55.6
Languages known	One	49	19.6
	Two	158	63.2
	Three or more	43	17.2
Working experience	Tourism/Hotel management	15	6.0
	Restaurant management	1	0.4
	Management/Administration	132	52.8
	Others	102	40.8
Year of establishment	Before 2000	3	1.2
	2000–2010	69	27.6
	2010–2019	178	71.2
Source of capital	Personal/Family saving	53	21.2
	Bank loan	169	67.6
	Private loan	28	11.2
Type of property	Personal property	191	76.4
	Rented property	59	23.6
Cost of the project	<1 Crore	146	58.4
	>1 Crore and < 2 Crore	91	36.4
	>2 Crore	13	5.2
Nature of ownership	Single ownership	189	75.6
	Partnership	61	24.4
Expecting years of break-even point	0–5 years	185	74.0
	6–10 years	57	22.8
	11–15 years	8	3.2
Reasons responsible for delay	Non availability of finance	46	18.4
	Lack of motivation	72	28.8
	Fear of failure	10	4.0
	Lack of family support	58	23.2
	Lack of entrepreneurial skill	11	4.4
	Fear of competition	42	16.8
	Other reasons	11	4.4
Business season	April—July	148	59.2
	July—October	8	3.2
	October—March	94	37.6

From Table 2, it is inferred that there is significant difference in opinion existing among gender of the respondents for motive and socio-economic factors. Hence, the null hypothesis is rejected for motive and socio-economic factors. But there is no significant difference in opinion existing among the male and female of the respondents for the factors of issues and challenges, financil and entrepreneurial growth and development. Hence, the null hypothesis is accepted for the study construct of issues and challenges,financial and entrepreneurial growth and development.

Table 2. Independent sample t-test between gender and internal and external factors of entrepreneurs in hospitality sector

Factors	Gender	M	SD	t	p	Accepted/Rejected
Motive	Female	4.22	.516	4.040	.000	Rejected *
	Male	4.02	.561
Issues and challenges	Female	4.17	.464	3.113	.016	Accepted
	Male	4.02	.570
Socio-Economic	Female	4.19	.494	3.108	.002	Rejected*
	Male	4.04	.538
Financial	Female	4.16	.530	2.673	.008	Accepted
	Male	4.02	.599
Enterpreneurial growth and development	Female	4.07	.576	2.096	.037	Accepted
	Male	3.94	.700

Ho: Respondents with different gender have same opinion towards the factor entrepreneurs in hospitality sector.

From Table 3, there is significant difference in opinion existing among the age groups of the respondents for the factors of issues and challenges, and financial. Hence, the null hypothesis is rejected for the factors of issues and challenges, and financial. But there is no significant difference in opinion existing among the motive factor, socio-economic problems and entreprenuerial growth and development. Hence, null hypothesis is accepted for motive factor, socio-economic problems and entreprenuerial growth and development.

Table 3. One way ANOVA between the age group of the respondents and the factors (motives, issues and challenges, government-related problems and strategies) of entrepreneurs in hospitality sector

Factor	Age	Sum of squares	Mean square	F	Sig.	Null hypothesis
Motive	Between groups	313.948	78.487	2.760	. 028	Accepted
Factor	Within groups	6966.196	28.433
	Total	7280.144
Issues and challenges	Between groups	894.006	223.501	11.336	. 000*	Rejected*
	Within groups	4830.430	19.716
	Total	5724.436
Socio -Economic problems	Between groups	42.544	10.636	1.722	. 146	Accepted
	Within groups	1513.056	6.176
	Total	1555.600
Financial	Between groups	706.732	176.683	17.705	. 000	Rejected*
	Within groups	2444.868	9.979
	Total	3151.600
Entrepreneurial growth and development	Between groups	315.732	79.683	3.750	. 032	Accepted
	Within groups	6866.166	27.453
	Total	7480.164

Ho: Different age groups of respondents have same opinion towards the factor of hospitality sector.

From Table 4, there is significant difference in opinion existing among the level of education groups of the respondents for the factors motive, issues and challenges, financial and entrepreneurial growth and development. Hence, the null hypothesis is rejected for the factors motive, issues and challenges, financial and entrepreneurial growth and development. But there is no significant difference in opinion existing among the age groups of the respondents for the factor socio-economic problems. Hence, null hypothesis is accepted for the factor socio-economic factors.

Table 4. One-way ANOVA between of the level of education of respondents and the factors (motives, issues and challenges, government-related problems and strategies) of entrepreneurs in hospitality sector

Factor	Level of education	Sum of squares	Mean square	F	Sig.	Null hypothesis
Motive factor	Between groups	656.764	164.191	6. 073	.000	Rejected*
	Within groups	6623.380	27.034
	Total	7280.144
Issues and challenges	Between groups	487.476	121.869	5. 701	.000	Rejected*
	Within groups	5236.960	21.375
	Total	5724.436
Socio-Economic problems	Between groups	27.564	6.891	1.105	.355	Accepted
	Within groups	1528.036	6.237
	Total	1555.600
Financial	Between groups	225.897	56.474	4.729	.001	Rejected*
	Within groups	2925.703	11.942
	Total	3151.600
Entrepreneurial growth and development	Between groups	754.864	174.181	7. 073	.001	Rejected*
	Within groups	7663.380	37.054
	Total	7980.154

Ho: Different educational levels of respondents have same opinion towards the factor of hospitality sector.

Furthermore, based on R square value of 0.538, or 53.8%, of internal factor in Table 5, it shows that the value of r is equal to external factor (0.627) square or 62.7%, which means there is 58.2% relationship between the internal and the external factor for the growth and development of the entrepreneurship. Hospitality industry that is able to develop internal factors like motivation, solve issues and challenges faced by the entrepreneurs support the process and strategies for the growth and development of the entreprenuership.

Table 5. To influence a research model of small business operators with motives to overcome the challenges and engaging them in hospitality sector is proposed

Model summary
R	R Square	Adjusted R square	Std. error of the estimate
.627^a	.538	.790	.28157
^a Predictors: (Constant), Motive, Issues and Challenges, Socio-Economic, Financial

Ho: To identify the factors which are highly influencing the growth and development of entrepreneurship.

7. Conclusion, limitations and further research

This research investigated the motive factor, issues and challenges, socio-economic factor, finance for the entreprenuerial growth and development. The research revealed that independent factors like issues and challenges, socio-economic factor and finance influence for the growth and development of the entrepreneurship in the tourism and hospitality sector. Theoretically, in distinction with most studies exploring the startup motives of entrepreneurs, this research work analyzed the dynamic thoughtfulness of the entrepreneurial motives for the growth and development of the entrepreneur. Entrepreneurship is a process that happens in a longer time and should always be viewed in growing phase and not stagnant. Second, this research work investigated the issues and challenges and motive factors for conducting business. Third, this study newly introduced a research proven model growth and development of the entrepreneurship. Since this research is prompted by the educational hub of Tamil Nadu, Coimbatore has taken the lead in shifting its economy away from the textile industry and toward tourism (Chen, 2019). Tourism-related SMEs have emerged as a significant new source of revenue, as well as essential drivers of employment and economic growth in the state. The number of hotels in the city has increased rapidly, raising the issue of what qualities of the owner of SMSHs underpin start-up, motive, business obstacles, and hotel business methods (Banerjee, 2011). The entrepreneurs should undergo training programme before starting their business, where they can enrich with motivation along with their family members motivation.

Entrepreneurs can develop their skills, ideas and knowledge by EDP programmes organized by DSIC, MSME. They can even follow the business strategies to attract the customers. They can even approach for the financial support provided by SMSH entrepreneurs. The government still can increase the tourism activities plans and the marketing assistance. The government can avoid frequent change and framework.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Supplementary material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/23311975.2023.2285260

Additional information

Notes on contributors

S. Dhanabagiyam

S. Dhanabagiyam holds a Doctoral degree in Management, with MBA., MBA (T&H). She is Specialized in Human Resource, Organizational Behavior, Strategic Human Resources, Marketing. Tourism and Hospitality Sector. She is a vibrant, enthusiastic professional with nearly 13 years of Academic, Research and Industry experience in various institution approved by AICTE/UGC. Ample experience in academic, research, also curriculum design in Management, Tourism and Travel Management courses. Author for book “Multirater Feedback for Succession Planning: A Study on Banking Sector”, and contribute regularly in articles for Journals. She is a proven researcher on various aspects of Management especially Human Resource, Marketing, Tourism and Hospitality Journals. She has published many articles in international and national journals few of the articles in UGC Care List, WOS, Scopus and reputed Journals. She is serving as Editorial Member and Reviewer for Elsevier and Reputed Journals. Also, she has attended Refresher Courses/STTP/FDP/Workshop organized by MHRD, HRDC, UGC, AICTE, ATAL, etc., She has organized various national seminar, workshop, conferences, industrial visits, internship, OBT. FDP for Students, Researcher and Faculty Members. She is also in member Board of Studies and member in various professional bodies like IAAC Society, ITHC. She also visited various countries like Singapore and Malaysia. She currently contributes her active participation academics, guiding doctoral scholars and various administrative activities like NAAC, IQAC, Community Social Service activities, organizing conference/seminar and workshops, and she received notable awards like Young Faculty and Researcher award by NFED, Best Women Faculty award.