Impact of Behavioral Factors on Investment Decisions of Rural Women Entrepreneurs of Handloom Sector in Telangana State: A Study

Abstract

This study empirically investigates the impact of Behavioral Factors on the Investment Decision of Rural Women Entrepreneurs in the Handloom Sector of Telangana, India.  Given that women’s economic development is crucial for overall societal progress, and that rural women handloom weavers face specific financial challenges, and other related problems addresses a gap in the literature regarding their investment behavior. 

For the purpose of the study, data was collected from 500 respondents with a well designed questionnaire.  The data is analyzed with help of statistical tools like percentages and Factor Analysis.  The factor analysis identified seven principle components influencing the investment decisions of these entrepreneurs viz., Risk, Market Influence, Confidence Levels, Investment Attitudes, Investment Decisions, Cultural Influence and Behavioral Attitude.

The findings indicate that factors like Modern Investment Tools, Investment Alternatives, Financial Situations and Goals, Diversified Portfolio and Social Factors plays a major role in their investment choices.  The study concludes that the investment decisions made by these rural women are informed by their understanding of benefits and risks, suggesting a high degree of fianancial awareness, and are strongly influenced by the perceived accessibility and availability of investment sources.  The research successfully meets its objective, confirming that investment behavioral factors are significant by accepting alternative hypothesis in influencing the investment decisions of rural women handloom entrepreneurs.