Telangana State is aimed to providing the welfare schemes for income generation, creation of employment and improving the socio-economic conditions for the tribal development. However the welfare schemes are hampered by diversity of problems. The present study is devoted to a complete analysis of the operational problems which are influencing the performance of tribal beneficiaries in the process of implementation of the schemes. Factor analysis was conducted and identified six major factors i.e. low quality of raw material, improper electricity facility, lack of knowledge in management skills, improper water facility, unhealthy competition, and improper transportation facility which are influencing the performance of the sample tribal beneficiaries in the process of implementation of the schemes.