Impact of entrepreneurs’ behaviour on growth of small and medium enterprises (SMEs): special reference to Udunuwara Division

Abstract

The study examined the impact of entrepreneurs’ behaviour on growth of small and medium enterprises in Udunuwara Division. The main objective of the study was to identify the relationship between entrepreneurs’ behaviour and growth of SMEs. Entrepreneurs’ behaviour was operationalized as need for achievement, self-confidence, initiative, risk taking, independence and experience. The study was motivated by the fact that SMEs in Udunuwara Division find themselves in a competitive environment to improve their business growth. The study adopted the survey method. 91respondents were considered as sample size using simple random sampling techniques for analysing the data.Validity test, reliability test, descriptive analysis, correlation analysis and regression analysis were performed using Statistical Package for Social Science (SPSS) version 23. The study revealed that there is a significant impact of entrepreneur’s behaviours other than initiative on business growth of SMEs in Udunuwara Division. The study recommends that SMEs should improve the entrepreneur’s behaviours such as need for achievement, self-confidence, risk taking, independence and experience other than initiative to generate profit in the SMEs. R2 of Entrepreneur’s behaviours is 0.898. So, 89.8% variation in business growth was explained by Entrepreneur’s behaviours. This study facilitate to policy makers to implement efficient policies through the growth path.