Factors influencing on entrepreneurial success

Abstract

Ampara and Batticala districts in Sri Lanka are situated in the Eastern part of the island which were affected by thirty years domestic war and tsunami hit in 2004. Multi religious people such as Tamils, Muslims, Sinhalees, and Burgars live together in this area. Batticaloa district was more affected by so called war where as less affected by tsunami hit as compared with Ampara. Due to this Most of the women in both districts have become bread winners of their families and engaged in entrepreneurial activities to save their families. Accordingly 14.1 % of the families in Ampara and 16.8 % of the families in Batticaloa have become women headed families such as loss of husband, divorced/ abandoned by the husband, disappearance of elderly male member of the family, differentially able elderly male member, heading the family due to other reason. Women entrepreneurs especially in micro businesses play a crucial role in rural economic development. Starting a business is simply a rational choice faced by an individual who chooses between uncertain self-employment, having certainty as an employee and possibly unemployment, based on the expected utility in each state. The factors influencing that choice are entrepreneurial talent, attitude to risk and switching costs and personal factors are the most important thing in order to assure their survival in the industry. Hence, the research question is “To what extent the entrepreneurial factors influence to entrepreneurial success?” Accordingly, the research aims to study the women entrepreneurs’ personal factors and the association of entrepreneurial success in micro businesses among women headed families in Sri Lanka. For the purpose of study, data collected from 270 respondents from micro businesses among women headed families in Ampara and Batticaloa district using simple random sampling method, mainly with the use of structured questionnaire and interview. Factor analysis was done. Correlation and regression was mainly used to see the association between influencing factors and entrepreneurial success. Influencing factors have been measured by the dimensions of family background, personality factors, and institutional support and entrepreneurial success was measured by sales growth, profit growth and perceived survival of the business. Self-administer red questionnaire was issued for this purpose. Pilot study and reliability analysis was done to see the inter item consistency of the questionnaire and for content validity. The significance of the study especially to women entrepreneurs in micro business sector which are contributing a lot for the development of national economies. Many women entrepreneurs in developing countries such as Sri Lanka face many challenges while they are operating their businesses such as existence and survival, innovation etc. with the available information and training and institutional support they may be unable to survive in the industry. Need for achievement, autonomy, self-confident are the most important personality factors for business success of women entrepreneurs and background factors such as education and family background also contribute for the business success of women entrepreneurs in micro businesses. Institutional support also has been a motivating factor for entrepreneurship success. It was found that personality factors such as need to achieve and self-reliant, and independence were influencing more than the other factors. Accordingly, the findings might be immense value to enhance women entrepreneurship in developing countries, such as Sri Lanka, as much research has not been conducted in this regard.