Analyzing the Determinants of Entrepreneurial Activity Level in Urban Micro Enterprises in Sri Lanka
Journal Title: International Journal of Physical and Social Sciences (IJPSS) - Year 2018, Vol 8, Issue 11
Abstract
Micro entrepreneurship’s potential as a main source of inclusive growth in developing countries is well acknowledged and therefore it emerges as a key agenda item for economic policy makers. The success of the enterprises is not only dependent on the entrepreneur’s ability but also on the other factors. Therefore investigating the determinants of entrepreneurship activity level such as socio-demographic, economic, cultural environment and personality characteristics of the people are essential ingredients for formulating suitable policies for enterprise development. Hence the main objective of this study is to investigate the determinants of urban micro entrepreneurship activity level in Sri Lanka. Data were drawn from a sample of 300 micro entrepreneurs chosen under stratified random sampling method. The determinants of probability of being in different categories of informal micro entrepreneurs within the entrepreneurial process were examined on the conceptual basis of Eclectic framework decomposing the entrepreneurial process into three phases: nascent, young and old business owners utilizing multinomial logistic model. It was found that education is positively significant for all three levels of entrepreneurship and it is the most prominent which increasingly effects on the odds of being nascent entrepreneur. Young entrepreneur is more significantly negatively affected by administrative related issues and complexities, lack of financial support; internal locus of control rather than nascent entrepreneurs while availability of necessary infrastructure seems to encourage an active involvement in entrepreneurial activity at the nascent phase more significantly. This study suggests multipronged approach to assist micro entrepreneurs specifically providing easy access to credit, intensive follow-up trainings to overcome the issues related to knowledge, skills and attitudes, minimize disturbing factors like administrative issues (licenses, approvals, infrastructure providence etc.), and poverty reliefs to improve effective dynamic entrepreneurship and lessen hurdles on entrepreneurial activity and thereby economic growth.
Authors and Affiliations
B. W. R. Damayanthi
Keywords
Related Articles
- EP ID EP41865
- DOI -
- Views 380
- Downloads 0
ADOPTION PROCESS AND INNOVATIVENESS IN INDIAN CONTEXT
An attempt is made to find out the adoption process of innovation. It provides scope for the evaluation of individual interest in innovativeness. Different variables of innovativeness like personal variables, product v...
Ways of improving the tax mechanism for small businesses and entrepreneurship in the Republic of Uzbekistan
The article considers such issues as the role and development of small business and private entrepreneurship in the Republic of Uzbekistan, the unification of the taxation system for microfirms and small enterprises, t...
Small and Medium Enterprises (SMEs): A Promising Sector for Sustainable Development in Bangladesh
Poverty alleviation and sustainable development have become burning issues all over the world now-a-days. A significant development of a nation means proper alleviation of poverty and sustainable development. For this...
‘Kashi’: an abode of ‘ghor’ and ‘aghor’
Shri Bhagwaan uwachyaa: “Asocyan anvasoocas tavam, Parina- vadaamas ca bhasase Gataasun agyatasumss ca, Naanusocaanti panditah” -Shrimad Bhagwat Geeta (2:1) In the words of the divine lord: “When you speak the mourni...
OPTIMUM COST- TIME TRADE OFF IN A CAPACITATED FIXED CHARGE TRANSPORTATION PROBLEM WITH BOUNDS ON RIM CONDITIONS
In this paper, an algorithm is presented to find the optimum time cost trade off in a capacitated fixed charge transportation problem giving the same priority to both time and cost. Sometimes, there is a condition that...