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Impact of behavioural attributes and enterprise-related capital on micro-enterprise growth

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  • Zahoor Ahmad Paray
  • Lalit Sharma

Abstract

In the majority of emerging and developing countries, micro-enterprises generate employment, revenue, and contribute considerably to GDP. However, research shows that micro-enterprises do not grow since their primary emphasis is survival rather than expansion. This is primarily due to a lack of funds, market, consumer base, and entrepreneurial spirit. This low growth phenomenon is not well documented in the literature, and no significant research has been undertaken. The study examines a sample of 280 micro-entrepreneurs from three different regions of India. Using a multi-linear regression approach, the results indicate that the existing literature's growth determinants have little impact on enterprise growth. This research can be expanded by considering different industries and business types. A more growth-oriented research, according to the study, is needed to identify major factors influencing micro-enterprise growth in India, in particular, and in the developing world in general.

Suggested Citation

  • Zahoor Ahmad Paray & Lalit Sharma, 2022. "Impact of behavioural attributes and enterprise-related capital on micro-enterprise growth," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 13(2), pages 192-210.
    • Handle: RePEc:ids:ijgsbu:v:13:y:2022:i:2:p:192-210
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