Parikalpana: KIIT Journal of Management

Open Access Open Access  Restricted Access Subscription Access

What Influence the Business Success of Micro Small & Medium Enterprises: Analysis from Rural and Urban Assam


Affiliations
1 Assistant Professor, Department of Humanities & Social Sciences, Indian Institute of Information Technology Guwahati, India
 

This study strives to know if the factors influencing business success are uniform across all the three categories of MSMEs; identical for male and female entrepreneurs and universal in rural and urban areas. Based on 320 registered MSMEs from two districts of Assam, the study uses two criterions for defining a small business as successful: minimum five years survival as on 31st March 2018 and revenue greater than cost. The study recognises 16 factors that influence the success which are grouped into three categories: MSME characteristics; entrepreneur characterises and business characteristics. The findings identifies two sets of factors influencing the success, first, the vital factors (VFs) which are quintessential for performance and success and the critical factors (CFs) which are desired for the survival of an enterprise. These are found to be considerably different across the different sized MSMEs; male and female entrepreneurs and differ in rural and urban area.

Keywords

Business Success, Business Performance, Entrepreneurs, MSMEs, Vital Factors, Critical Factors.
User
Notifications
Font Size

  • Al-Mahrouq, M. (2010). Success factors of small and medium enterprises: the case of Jordan. Zagreb International Review of Economics & Business, 13(2), 89- 106.

  • Anggadwita, G. & Mustafid, Q.Y. (2014). Identification of Factors Influencing the Performance of Small Medium Enterprises (SMEs). Procedia-Social and Behavioral Sciences, 115, 415-23.

  • Barik, A., & Tripathy, S. (2022). Sustainability of micro, small and medium enterprises in India during Covid-19. Parikalpana: KIIT Journal of Management, 18(1), 71-84.

  • Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931-43.

  • Benzing, C., Chu, H.M., & Kara, O. (2009). Entrepreneurs in Turkey: A factor analysis of motivations, success factors, and problems. Journal of Small Business Management, 47(1), 58-91.

  • Chu, H.M., Benzing, C., & McGee, C. (2007). Ghanaian and Kenyan entrepreneurs: A comparative analysis of their motivations, success characteristics and problems. Journal of Developmental Entrepreneurship, 12(3), 295-322.

  • Coad, A. (2007). Firm Growth: A Survey’ Max Plank Institute Economics. http:// harchivesovertes.fr/ha/shs00155762/

  • Drucker, P.F. (1973). Management: Tasks, Responsibilities, Practices. New York, Harper & Row.

  • ENSR. (2003). Observatory of European SMEs. European Commission. http:// eu.europa.eu/enterprises,Policies/sme/facts-figures-analysis/smeobservatory/ index-htm

  • Evans, P. (1986). The strategic outcomes of human resource management. Human Resource Management, 25(2), 149-67.

  • Fredland, J.E., & Morris, C.E. (1976). A cross section analysis of small business failure. American Journal of Small Business, 1(1), 7-18.

  • Gupta, N., & Mirchandani, A. (2018). Investigating entrepreneurial success factors of women-owned SMEs in UAE. Management Decision, 56(1), 219-32.

  • Hawley, F.B. (1893). The Risk Theory of Profit. The Quarterly Journal of Economics, 7(4), 459-79.

  • Hesselmann, H., & Comcare, P.B. (2002). Benchmarking national and regional e-business policies for SMEs. Final Report of the E-Business Policy Group, 1-48.

  • Hitt, M., & Duane Ireland, R. (2017). ‘The intersection of entrepreneurship and strategic management research’. In D. Sexton & H. Landström (Eds.), The Blackwell Handbook of Entrepreneurship, 45-63, Oxford, Blackwell.

  • Huck, J.F., & McEwen, T. (1991). Competencies needed for small business success: perceptions. Journal of Small Business Management, 29(4), 90-3.

  • Ibrahim, B. and Goodwin, J.R. (1986). Perceived causes of success in small business. American Journal of Small Business, 11(2), 41-50.

  • Ihua, U. B. (2009). SMEs key failure-factors: a comparison between the United Kingdom and Nigeria. Journal of Social Sciences, 18(3), 199-207.

  • Islam, M.A., Khan, M.A., Obaidullah, A.Z.M., & Alam, M.S. (2011). Effect of entrepreneur and firm characteristics on the business success of small and medium enterprises (SMEs) in Bangladesh. International Journal of Business and Management, 6(3), 289-99.

  • Kar, B. B., & Subudhi, R. N. (2014). MSME Growth Dilemma: Create More or Reduce Mortality? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2535864

  • Kar, B. B., Subudhi, R. N., & Kar, N. (2016). Gender-gap in Entrepreneurship: A Study on Ideation, Efficacy, Planning Differentiation Measures, AJE: Amity Journal of Entrepreneurship, Vol. 1(1), 2016.https://amity.edu/UserFiles/ admaa/221Paper%203.pdf

  • Kar, B., Subudhi, R. N., & Padhy, R. (2017). Impact of self-efficacy and contextual variables on entrepreneurial intention. Pertanika Journal of Social Sciences and Humanities, 25(3), 1121-1138.

  • Kemayel, L. (2015). Success factors of Lebanese SMEs: An empirical study. Procedia-Social and Behavioral Sciences, 195, 1123-28. DOI: 10.1016/j. sbspro.2015.06.158

  • Lo, M.C., Wang, Y.C., Wah, C.R.J., & Ramayah, T. (2016). The critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach. Review of Business Management, 18(61), 370-91.

  • McMahon, R.G.P. (2001). Growth and performance of manufacturing SMEs: The influence of financial management characteristics. International Small Business Journal, 19(3), 10-28.

  • Nelson, C. (1986). Starting your own business-Four success stories. Communication World, 3(8), 18-29.

  • Niehouse, O.L. (1986). Just who are these Entrepreneurs. Management World, 15(8), 7-8.

  • Olson, P.D., & Bokor, D.W. (1995). Strategy process-content interaction: Effects on growth performance in Small Start-up Firms. Journal of Small Business Management, 33(1), 34-44.

  • Owoseni, O.O., & Akanbi, P.A. (2011). An Investigation of Personality on Entrepreneurial Success. Journal of Emerging Trends in Economics and Management Sciences, 2(2), 95-103.

  • Oyeku, O.M., Oduyoye, O., Asikhia, O., Kabuoh, M., & Elemo, G.N. (2014). On entrepreneurial success of small and medium enterprises (SMEs): A conceptual and theoretical framework. Journal of Economics and Sustainable Development, 5(16), 14-23.

  • Pansiri, J., & Temtime, Z.T. (2010). Linking firm and managers’ characteristics to perceived critical success factors for innovative entrepreneurial support. Journal of Small Business and Enterprise Development, 17(1), 45-59.

  • Philip, M. (2011). Factors affecting business success of small & medium enterprises (SMEs). Amity Global Business Review, 6(1), 118-136.

  • Plotkin, H.M. (1990). Portrait of a successful small business owner. Small Business Reports, 15(1), 15-9.

  • Pratt, V. (2001). Sharing Business Skills in Kenya. Washington, DC: Centre for International Private Enterprise. http://www.cipe.org

  • Ramukumba, T. (2014). Overcoming SMEs challenges through critical success factors: A case of SMEs in the Western Cape Province, South Africa. Economic and Business Review, 16(1), 19-38.

  • Rockart, J.F. (1982). The changing role of information system executive: A critical success factors perspective. Sloan Management Review, 24(1), 3-13.

  • Salim, I. & Sulaiman, M. (2011). Organizational Learning, Innovation and Performance: A Study of Malaysian Small and Medium Sized Enterprises. International Journal of Business and Management, 6(12), 118-126.

  • Subudhi, RN and Omar Faruq. (2022). Effects of Firm-Level Determinants on Export Performance of SMEs in Bangladesh, JHSSR, Vol.4(S), 2022. https:// doi.org/10.37534/bp.jhssr.2022.v4.nS.id1190.p48

  • Subudhi, R.N, Mandal, N.K. (2022). Emerging Role of Social Enterprises During COVID-19 Pandemic. In: Subudhi, R.N., Mishra, S., Saleh, A., Khezrimotlagh, D. (eds) Future of Work and Business in Covid-19 Era. Springer Proceedings in Business and Economics. Springer. https://doi.org/10.1007/978-981-19- 0357-1_19

  • Swierczek, F.W., & Ha, T.T. (2003). Entrepreneurial orientation, uncertainty avoidance and firm performance: an analysis of Thai and Vietnamese SMEs. International Journal of Entrepreneurship and Innovation, 4(1), 46-58.

  • Tambunan, T. (2009). Women entrepreneurship in Asian developing countries: Their development and main constraints. Journal of Development and Agricultural Economics, 1(2), 27-40.

  • Theng, L.G., & Boon, J.L.W. (1996). An exploratory study of factors affecting the failure of local small and medium enterprises. Asia Pacific Journal of Management, 13(2), 47-61.

  • Toluyemi, S.T., Mubarak, S., & Temitope, T.T. (2016). Success Factors in Operational Performance of Micro, Small and Medium Enterprises (MSMEs) in Nigeria for Poverty Reduction. American Journal of Business and Society, 2(1), 10-9.

  • Yusuf, A. (1995). Critical success factors for small business: Perceptions of South Pacific entrepreneurs. Journal of Small Business Management, 33(2), 68-74


Abstract Views: 243

PDF Views: 0




  • What Influence the Business Success of Micro Small & Medium Enterprises: Analysis from Rural and Urban Assam

Abstract Views: 243  |  PDF Views: 0

Authors

Ankita Sarmah
Assistant Professor, Department of Humanities & Social Sciences, Indian Institute of Information Technology Guwahati, India

Abstract


This study strives to know if the factors influencing business success are uniform across all the three categories of MSMEs; identical for male and female entrepreneurs and universal in rural and urban areas. Based on 320 registered MSMEs from two districts of Assam, the study uses two criterions for defining a small business as successful: minimum five years survival as on 31st March 2018 and revenue greater than cost. The study recognises 16 factors that influence the success which are grouped into three categories: MSME characteristics; entrepreneur characterises and business characteristics. The findings identifies two sets of factors influencing the success, first, the vital factors (VFs) which are quintessential for performance and success and the critical factors (CFs) which are desired for the survival of an enterprise. These are found to be considerably different across the different sized MSMEs; male and female entrepreneurs and differ in rural and urban area.

Keywords


Business Success, Business Performance, Entrepreneurs, MSMEs, Vital Factors, Critical Factors.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2023%2Fv19%2Fi2%2F223533