Study of Communication Barriers in the

Bhagalpur Silk MSME Industry

submitted to
Indian Institute of Information Technology,
Kalyani
for partial fulfilment of degree of
Bachelor of
Technology In
Computer Science and Engineering

By

Aayush Gupta (661)

Ashish Kumar (678)
Hamdaan Ali (698)
Harsh Kumar Singh (699)
Vishal Kashyap (767)

Under the supervision of

Dr. Debashish Dutta
Department of Computer Science and Engineering

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Table of Contents
Overview...............................................................................................................................................3
Motivation.............................................................................................................................................5
Literature Review...................................................................................................................................7
Method of Analysis................................................................................................................................8
Questionnaire Design and Justification..................................................................................................9
Statistical Analysis and Conclusions.....................................................................................................11
Discussions and Future Scope..............................................................................................................14
Vote Of Thanks....................................................................................................................................15

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Overview
The Bhagalpur Silk Micro, Small, and Medium Enterprises (MSME) sector
within the Indian economic landscape is characterized by its pronounced
dynamism and operational versatility. This sector distinguishes itself
through its nominal investment prerequisites, operational adaptability, and
geographical mobility. Notably active, it serves as a substantial contributor
to domestic production, fostering entrepreneurial acumen, catalysing
innovation, fuelling GDP growth, ensuring equitable regional development,
and augmenting export revenues. The Bhagalpur Silk MSME sector plays a
pivotal role in promoting economic diversification, sustaining social
equilibrium, fostering private sector expansion, and enhancing overall
competitiveness. Given the prevalence of labour-intensive enterprises and
low capital investments, the Bhagalpur Silk MSME sector emerges as a
significant catalyst for employment generation, particularly in less
developed regions.
India stands as a unique nation, renowned for its profound cultural
heritage, historical landmarks, distinctive ethnic textiles, and exceptional
handicrafts that garner global acclaim. Within this tapestry, the Indian
textiles and apparel industry emerges as a cornerstone, making substantial
contributions to the nation's economy in terms of output, foreign exchange
earnings, and employment generation. Constituting approximately 4% of the
global Textile and clothing market, 7% of industrial production by value,
2% of the GDP, and 15% of the country's export revenues, the Indian textile
and clothing sector holds paramount significance. The Bhagalpur Silk
industry, a distinctive contributor to this sector, epitomizes a rich legacy and
craftsmanship, playing a pivotal role in shaping both national and
international fashion landscapes.
Bhagalpur Silk fabrics have garnered global acclaim, but beneath the
surface of this industry's sheen lies a less illuminated aspect, casting the
existence of its craftsmen into obscurity.

Situated on the banks of the river Ganga in Eastern Bihar, Bhagalpur, a

historically significant town, once held the distinction of being the major
trade centre of Eastern India. Renowned for its unique silk fabrics known as
'Tussah' or 'Tusser,' the city has a rich tradition of silk weaving that dates
back over 200 years. Bhagalpur's silk industry, often referred to as the Silk
City, holds the second-highest rank, trailing only Karnataka, in the
production and export of silk fabrics.

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 The uniqueness of Bhagalpur Silk is deeply rooted in its history, with
weavers boasting skills passed down through generations over the span of a
century. More than 35,000 handloom weavers, operating 25,000 looms,
contribute to the city's trade, totalling approximately 100 crores per annum,
evenly split between domestic and export markets. Bhagalpur engages
around 1,00,000 individuals in the intricate process of silk thread separation
from cocoons and spinning the yarn for weaving.

The silk fabrics crafted in Bhagalpur find their way to international

markets, including West Asia, Europe, the U.S., and Japan. The city has
gained recognition for its home furnishings in the global arena, and outfits
made from Bhagalpuri silk have made a mark in ramp shows and fashion
weeks.

Bhagalpur stands as one of the oldest silk-producing cities globally,

boasting a silk industry that has thrived for over two centuries. The city is a
hub for sericulture, silk manufacturing, and the transformation of silk into
exquisite products. The Weavers Service Centre, established in Bhagalpur in
1974, has played a pivotal role in enhancing the handloom silk industry.
Second only to Karnataka, the Bhagalpur cluster excels in both the
production and export of silk fabric. Notably, Bhagalpur silk home décor
items are gaining popularity in international markets, and Bhagalpuri silk
stoles for women have emerged as coveted fashion accessories in recent
years. The legacy of Bhagalpur's silk industry continues to weave a tale of
tradition, craftsmanship, and global recognition.
This project delves into the investigation of communication barriers
encountered by consumers in the procurement of Bhagalpur Silk products,
achieved through an exhaustive survey conducted in urban hubs of
Bhagalpur. The subsequent sections delineate the rationale behind selecting
this project's theme, followed by an intricate examination of pertinent
literature and the disclosed survey data. Our survey methodology and the
ensuing statistical analyses are expounded upon. The culmination involves a
concise discourse on our revelations, accompanied by recommendations for
future enhancements to the undertaken study.

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Motivation
With a vast network of approximately 30 million units, the MSME sector
employs about 70 million people, produces over 6000 products, and directly
and indirectly contributes about 45% of manufacturing output and 40% of

exports, making it a crucial pillar of the Indian economy. With the nation
moving towards an agenda of quicker and more inclusive growth, this sector
even acquires greater significance today. [GD20]
Micro, Small, and Medium Enterprises (MSMEs) account for a sizable
proportion of India’s industrial sector. The expansion of industrialization in
India’s labour surplus economy has strengthened the dominance of MSMEs
in terms of job creation, output, exports, and resolving regional imbalances.
These companies have proven to be versatile and dynamic in their capacity
to accept workers of various skill levels (including unskilled ones).
The efforts of the micro, small, and medium firm sector have
substantially aided the growth of the nation’s industrial sector as a whole.
Micro, small, and medium-sized firms (MSMEs) are becoming more
prevalent in the economy, generating a diverse variety of goods and services
to fulfil the needs of both domestic and international markets. [FA23]
With over 200 million residents and over 150 million democratic votes,
Uttar Pradesh, India’s most populous state, has recently seen a tremendous
improvement in the ease of doing business. Over 90,000 of the country’s
MSME establishments are located in Uttar Pradesh. These 90,000 MSMEs
account for 14% of India’s overall MSME population of 6.33 crore,
according to the MSME Ministry’s annual report for 2020-21. The state’s
abundant resources, skilled and semi-skilled workforce population, and large
consumer market make it an ideal location for industrial expansion. The
state government has been taking the required efforts to attract businesses by
maximizing their investment potential and establishing an environment in
which they can establish new businesses and expand current ones. [FA23]
The handicraft industry serves as a sensible artistic way to self-
expression for the craftsman and represents a country’s culture, tradition,
and heritage. A large number of individuals, including craftsmen, workers,
and

Entrepreneurs rely on the handicraft industry for a living, either directly or

indirectly. Entrepreneurship is a significant and powerful economic growth
and job creation generator. It generates new businesses and jobs, opens up

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new markets, and fosters new skills and talents. Entrepreneurial activities
are a key source of economic growth and job creation, which improves the
quality of life for individuals, families, communities, and the development
of the nation’s economy. The handicraft sector is significant to the economy
because of the increased employment, foreign exchange gains, and
tremendous untapped export potential. Handicrafts are things that are
created entirely by hand or with the use of tools. Mechanical tools may be
utilized as long as the artisan’s direct manual contribution remains the most
significant component of the finished work (United Nations Educational,
Scientific, and Cultural Organisation/ Information Technology Community).
Handicrafts are popular in several Indian states, including Manipur, Tripura,
Rajasthan, Gujarat, Kashmir, Maharashtra, Tamil Nadu, and Kerala.
Today, the annual turnover of this industry is INR600 crore. About 15%
of the total fabric production of the country is from Uttar Pradesh. Around
30% of the total artisans in India are employed in the industry. Also, this
industry generates revenue of about US$1.2bn in the state annually. In 2013-
14, U.P. 's GDP contributed to 8.46% of the national GDP (U.P. 's GDP–
886,410; India’s–10,472,807). Bhagalpur Silk contributes to 8.12% of
U.P.’s GDP (Annual revenue: $1.2bn).
Poor risk management, insufficient viability assessments, infrastructural
obstructions, and complex labour rules are all obstacles to the successful
running of MSME units. All of these and other issues make the sector less
competitive in export markets. The current research seeks to investigate in
depth the issues associated with financing, technology, human resources,
operations, and exports. However, being more conducive to communication
with consumers is key for MSMEs to find a foothold and flourish. We look
to come up with actionable inferences from on-ground surveying of
consumers to provide important insights to vendors to provide incentives to
improve communication with consumers.

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Literature Review
There exist many works that have enumerated the challenges to MSMEs in
the post COVID-19 era. But there exists a lack of a soft skills approach to
growth of artisan MSMEs such as Bhagalpuri Silk Products. [Pan12]
underlines the need for effective training and development for improving
managers’ knowledge and awareness of risk management in MSMEs.
[SS14] investigates the role of entrepreneurs in the development of SME
businesses, given the sector’s issues. Following a discussion of some of the
key aspects of the MSME sector, the report covers the significant steps
undertaken by the Indian government to revitalize the industry.
[Kal15] carries out a descriptive research of the MSMEs functioning in
Bihar in order to establish that MSMEs serve to combat unemployment,
poverty, and achieve socio economic growth in the state. MSMEs drive
inclusive and balanced economic growth by creating demand for goods and
services. This sector helps to minimize socioeconomic inequities and
promotes long-term development. [Gho17] conducts primary research on
210 handicraft exporters based in and around Noida to investigate the
perceived hurdles to internationalization of their MSMEs. Unstructured
questionnaires are used to investigate their export markets, sales tactics
employed, competition situation, and export challenges.

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Method of Analysis
The data collection strategy employed a multi-faceted approach to gather
comprehensive insights from MSME vendors and consumers. For consumer
data, a targeted acquisition strategy leveraged online forums, such as Reddit
and Facebook, as well as government-established marketplaces. These plat
forms facilitated the extraction of nuanced consumer sentiments and pref
erences. Simultaneously, vendor data was meticulously obtained through
direct outreach and participation in government-initiated challenges like the
One District One Product (ODOP) program.
This dual-pronged methodology ensures a diverse dataset, enhancing the
robustness of the findings by incorporating both grassroots consumer
perspectives and detailed vendor-specific insights, optimizing the data
collection approach for a holistic analysis. We employed a door-to-door
approach to surveying. We surveyed the urban neighborhood of Ashiana in
Lucknow. We managed to gather 109 samples, with due consent of the
consumer in question.

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Questionnaire Design and Justification
In crafting the vendor questionnaire, we’ve taken great care to design a
thoughtful exploration into various facets of the Lucknowi Chikankari Mi
cro, Small, and Medium Enterprises (MSME) Industry. Our questions delve
into the heart of production, sales, marketing, and communication, aiming to
extract invaluable insights from the vendors who form the backbone of this
industry.
The initial set of questions is strategically crafted to understand the
vendor's standing in the market, exploring their user base and target
audience.

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We’re keen on unraveling the challenges faced during production, honing in
on specific issues to identify potential areas for improvement. Moving
forward, our questionnaire scrutinizes the processes in place to ensure the
high standards of Lucknowi Chikankari products. Were particularly
interested in vendors’ commitment to authenticity and excellence, as
evidenced by adherence to certifications or quality standards. By delving
into the challenges during sales, such as cost considerations and quality
assurance, we aim to gain a comprehensive understanding of the vendor’s
market dynamics.
Our inquiry extends to how vendors promote their products and
distinguish their brand, with a special emphasis on preserving the
authenticity of Lucknowi Chikankari. We’re curious to know if digital
platforms or e-commerce are embraced to widen the reach of these exquisite
handloom products. An open-ended question invites vendors to share their
real-world experiences and solutions regarding communication challenges,
fostering a deeper understanding of their day-to-day operations.
On the consumer side, our questionnaire is carefully curated to uncover
the nuances of preferences, experiences, and challenges faced by individuals
who embrace Lucknowi Chikankari handloom products. Each question is
meticulously designed to contribute to a comprehensive understanding of
consumer behavior within this unique industry. We start by gauging the
respondent’s involvement with Lucknowi Chikankari handloom products,
aiming for a bi nary response to gauge the prevalence of usage. Subsequent
questions delve into the duration of product usage, shedding light on
consumer loyalty and the enduring connections forged with these
handcrafted items.

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 Our investigation extends to understanding the reasons behind consumer
preferences, with a focus on product quality, price competitiveness, unique
designs, and sustainability. This holistic approach allows us to identify key
fac
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tors influencing consumer choices within the Lucknowi Chikankari
market.An essential aspect we explore is the potential language and
communication barriers encountered during the purchase of handloom
products. By pinpointing challenges such as difficulties in understanding
product descriptions, communication issues with sales representatives, or
language disparities on product labels, our questionnaire aims to pave the
way for improved communication processes within this industry.
Lastly, we assess consumer satisfaction levels regarding product quality
and pricing, seeking nuanced insights into the perceived value of Lucknowi
Chikankari handloom products.

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Statistical Analysis and Conclusions

As outlined earlier, we developed a structured questionnaire to assess

consumer interest in Bhagalpuri silk textile products. We collected 109
samples for our study and utilized the free and open-source software JASP
for data processing, with MS Excel employed for generating plots.

According to our survey results, 56% of consumers expressed interest in

purchasing Bhagalpuri silk textile products. The accompanying pie chart
(Fig. 1) visually represents the outcomes of our survey.

Among the 47% of consumers who opted not to buy Bhagalpuri silk
textile products, 57% reported encountering communication barriers, as
illustrated in the plot (Fig. 2).

Upon investigating the nature of these communication barriers

experienced by dissatisfied consumers, we obtained the following responses,
as depicted in Fig. 3.

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 Figure 1: Pie-chart illustrating the percentage of people utilizing Bhagalpuri silk
textile products.

Figure 2: Pie-chart depicting the percentage of people opting not to purchase

Bhagalpuri silk textile products due to encountering communication barriers.

Figure 3: Bar chart displaying the number of people facing the four specified communication
barriers.3

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 We concluded the questionnaire by inquiring whether the quality of the
Bhagalpuri silk textile product or its pricing might have been factors
influencing the decision not to purchase, as shown in Figure 4 and Figure 5

Figure 4: Pie-chart indicating the percentage of samples categorized by the level

of quality satisfaction.

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 Figure 5: Pie-chart showing the percentage of samples categorized by the

Discussions and Future Scope

India, renowned for its rich cultural diversity, boasts a plethora of
languages, traditions, and customs. With a population exceeding 1.3 billion
and more than 1,600 spoken languages, India poses a unique challenge in
communication for businesses operating within its borders. In this diverse
landscape, effective communication becomes crucial for the growth and
success of MSMEs.

Communication barriers may arise due to linguistic differences, cultural

variations, and perceptual biases, leading to misunderstandings,
miscommunications, and missed business opportunities. These barriers can
significantly impact a business by lowering customer satisfaction, hindering
supply chain efficiency, and reducing overall organizational productivity.

Let's explore some types of communication barriers. For further study, the
collected categorical data can be converted to numerical data through one-
to-one mapping. This mapped data can then be utilized for quantitative
analysis, offering valuable insights for vendors to accommodate the diverse
consumer base by overcoming prevalent communication barriers.

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Vote Of Thanks
We would like to extend our heartiest gratitude to Dr.Debashish Dutta for his
invaluable support and guidance throughout the project. We would also like
to thank the subjects choosing to fill out our questionnaires and provide us
unbiased take on the Bhagalpuri Silk MSME Industry and the prevalent
challenges in communication. We hope to have justified the objective of the
project and look forward to taking up the work proposed in Sec.7.

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