The Kakinada Experiment

1.Assuming need for achievement plays a vital role in promoting economic growth

2.Mcclelland has tried to induce achievement motivation in adult and provide them with an urge to improve their lot because unindicted achievement motivation results in long waiting before it bears fruit.

 3.Such an inducement may help break the barrier of“limited aspirations”. 

4.For this purpose, he conducted experiments with groups of businessmen in America, Mexico and Bombay. Later he carried out a full-fledged programme in the Kakinada city of Andhra Pradesh. Kakinada is a well-developed
distinct town of a population of around one lakh with high literacy and a modest
industrial structure.

Objective of the program:

1.to break the barrier of “limited aspirations” by inducing achievement motivation. 

2..The project which began in January 1964 consisted of recruiting batches of personnel drawn from business and industrial community of this town and putting them through orientation programme at the Small Industry
Extension Training (SIET) institute, Hyderabad.
3.  52 persons grouped into three batches participated” in the programme. The training was designed primarily to stimulate the imagination and encourage introspection into personal motivation and
community goals.

The impact of this training programme on the participants’ behaviour was observed after a period of two years. The observations were quite encouraging. It was found that those attended the programme performed better than those did not.

1.those participating in the programme displayed a more active business behaviour
(51 per cent as against 25 per cent in the control group) and worked longer hours.

2 Caste, traditional beliefs or western ways of life did not determine the mental
makeup of a participant.

3. the training as was given at Hyderabad is likely to improve those who have a great
yearning to do something and have the opportunity to do so in their business
framework. Applications of experiment: The Kakinada experiment is being utilised
in a number of experiment that have recently initiated technical personnel to set up
new enterprise of their own.

4. In Gujarat, various State agencies have combined to operate an Entrepreneurship
Development Programme to help young people acquire the motivation necessary to
become risk-takers. The Gujarat programme has been successful in persuading many
persons to set up new enterprises in the small scale sector.

 

5.In Andhra Pradesh, the Small Scale Industrial Development Corporation Ltd.
(APSSIDC) has been assisting technically qualified persons to become entrepreneurs
through orientation programmes of the SIET Institute. This is followed by specific
assistance of providing developed land specially earmarked for such persons at
nominal rates in the technocrats’ industrial estates.

6. The Ministry of Industrial Development has recently formulated schemes of
helping technical personnel to become entrepreneurs. This programme consists of

7.three months program at selected centres spread all over the country, followed by
financial assistance in terms of a subsidy on the interest on advances taken by the
entrepreneur from the commercial banks so that the net interest paid by the
entrepreneur himself does not exceed five per cent.