IDEAS home Printed from https://ideas.repec.org/a/lrc/larijb/v4y2014i6p38-50.html
   My bibliography  Save this article

Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka

Author

Listed:
  • Dr. J. G. Sri Ranjith

    (Senior Lecturer, Department of Economics and Statistics, University of Peradeniya, Sri Lanka,)

  • Dr. O. G Dayaratna Banda

    (Senior Lecturer, Department of Economics and Statistics, University of Peradeniya, Sri Lanka,)

Abstract

This study primarily aims to examine the determinants of the success of small business. Kuliyapitiya region in Sri Lanka was selected to carry out this research. The results show number of key significant factors for the success of small business. These factors are the family background of the entrepreneur, ability to make decisions, level of training and the amount of money invested on the business. The results indicate that these qualities of entrepreneur tend to be crucially important for the success of the business. The models estimated for the two DS divisional areas, Kuliyapitiya East and West, verify the importance of spatial differences. Therefore, it can be concluded that development of entrepreneurial skills of entrepreneur in small and medium industries is crucial for the success of business, when qualities of entrepreneurs are contextualized in urban settings where there is greater population density.

Suggested Citation

  • Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 38-50, June.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:6:p:38-50
    as

    Download full text from publisher

    File URL: http://thejournalofbusiness.org/index.php/site/article/view/410/418
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zoltan J. Acs & Catherine Armington, 2008. "Employment Growth and Entrepreneurial Activity in Cities," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 25, pages 353-369, Edward Elgar Publishing.
    2. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2014. "Business training and female enterprise start-up, growth, and dynamics: Experimental evidence from Sri Lanka," Journal of Development Economics, Elsevier, vol. 106(C), pages 199-210.
    3. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    4. Dell P. Champlin & Janet T. Knoedler, 2005. "Whither, or Wither, the Good Society?," Journal of Economic Issues, Taylor & Francis Journals, vol. 39(2), pages 455-463, June.
    5. repec:rri:wpaper:200410 is not listed on IDEAS
    6. World Bank, 2007. "Sri Lanka Development Forum : The Economy, Regional Disparities, and Global Opportunities," World Bank Publications - Reports 8041, The World Bank Group.
    7. Steven Deller & James McConnon, 2009. "Microenterprises and economic growth: a panel study of the US states 1977-1997," Applied Economics Letters, Taylor & Francis Journals, vol. 16(13), pages 1307-1312.
    8. Ngarambé, Octavian & Goetz, Stephan J. & Debertin, David L., 1998. "Regional Economic Growth and Income Distribution: County-Level Evidence from the U.S. South," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(2), pages 325-337, December.
    9. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2005. "SMEs, Growth, and Poverty: Cross-Country Evidence," Journal of Economic Growth, Springer, vol. 10(3), pages 199-229, September.
    10. Glaeser, Edward L. & Rosenthal, Stuart S. & Strange, William C., 2010. "Urban economics and entrepreneurship," Journal of Urban Economics, Elsevier, vol. 67(1), pages 1-14, January.
    11. Stephan J. Goetz, 1997. "State- and County-Level Determinants of Food Manufacturing Establishment Growth: 1987–93," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 838-850.
    12. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    13. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 139-155.
    14. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G. & Jackson, Randall W., 2004. "The Role Of Small Business In Economic Growth And Poverty Alleviation In West Virginia: An Empirical Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20290, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Rupasingha, Anil & Goetz, Stephan J., 2007. "Social and political forces as determinants of poverty: A spatial analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 650-671, August.
    16. Thorsten Beck & Asli Demirgüç-Kunt, 2004. "SMEs, Growth, and Poverty," World Bank Publications - Reports 11278, The World Bank Group.
    17. Timothy Bates & Lisa Servon, 1998. "Microenterprise As An Exit Route From Poverty:* Recommendations For Programs And Policy Makers," Working Papers 98-17, Center for Economic Studies, U.S. Census Bureau.
    18. Brian Cushing & Buhong Zheng, 2000. "Re-evaluating differences in poverty among central city, suburban, and nonmetropolitan areas of the US," Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 653-660.
    19. repec:dau:papers:123456789/10091 is not listed on IDEAS
    20. Jason Henderson & Stephan Weiler, 2010. "Entrepreneurs and Job Growth: Probing the Boundaries of Time and Space," Economic Development Quarterly, , vol. 24(1), pages 23-32, February.
    21. Naranpanawa, Athula & Bandara, Jayatilleke S. & Selvanathan, Saroja, 2011. "Trade and poverty nexus: A case study of Sri Lanka," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 328-346, March.
    22. William Levernier & Mark D. Partridge & Dan S. Rickman, 2000. "The Causes of Regional Variations in U.S. Poverty: A Cross‐County Analysis," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 473-497, August.
    23. Edward L. Glaeser, 2007. "Entrepreneurship and the City," NBER Working Papers 13551, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(6), pages 38-50, June.
    2. Anil Rupasingha & Stephan J. Goetz, 2013. "Self-employment and local economic performance: Evidence from US counties," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 141-161, March.
    3. J. G. Sri Ranjith, 2015. "The Effect of Microenterprises on Poverty: A Cross-county Analysis on US Urban Poverty," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 128-150, March.
    4. Rupasingha, Anil & Goetz, Stephan J., 2007. "Social and political forces as determinants of poverty: A spatial analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 650-671, August.
    5. Anil Rupasingha, 2009. "Value-Added Agricultural Enterprises and Local Economic Performance," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 511-534.
    6. Partridge, Mark D. & Tsvetkova, Alexandra, 2018. "Local ability to "rewire" and socioeconomic performance: Evidence from US counties before and after the Great Recession," MPRA Paper 89313, University Library of Munich, Germany.
    7. Túlio A. Cravo & Caio Piza, 2019. "The impact of business-support services on firm performance: a meta-analysis," Small Business Economics, Springer, vol. 53(3), pages 753-770, October.
    8. M.A. Carree & A.R. Thurik, 2008. "The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries," Small Business Economics, Springer, vol. 30(1), pages 101-110, January.
    9. Anil Rupasingha, 2017. "Local business ownership and local economic performance: evidence from US counties," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 659-673, May.
    10. AKM Asaduzzaman Patwary ∗, 2020. "Private Sector SMEs in Realizing SDG 1- "No Poverty" in the Context of Bangladesh," International Journal of Humanities, Arts and Social Sciences, Dr. Mohammad Hamad Al-khresheh, vol. 6(6), pages 274-288.
    11. Sri Ranjith & Anil Rupasingha, 2012. "Social and Cultural Determinants of Child Poverty in the United States," Journal of Economic Issues, Taylor & Francis Journals, vol. 46(1), pages 119-142.
    12. Sergio A. Contreras, 2022. "One size does not fit all: evaluating the impact of microenterprise measurement on policy evaluation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 587-613, June.
    13. Pontus Braunerhjelm & Zoltán J. Ács & David B. Audretsch & Bo Carlsson, 2015. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 6, pages 108-128, Edward Elgar Publishing.
    14. Lskavyan, Vahe & Spatareanu, Mariana, 2008. "Host country's governance and the size of foreign investors," Economics Letters, Elsevier, vol. 100(2), pages 258-261, August.
    15. Seong-Hoon Cho & Suhyun Jung & Roland K. Roberts & Seung Gyu Kim, 2012. "Interrelationship between poverty and the wildland--urban interface in metropolitan areas of the Southern US," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1405-1416, April.
    16. Bruce Weber & Leif Jensen & Kathleen Miller & Jane Mosley & Monica Fisher, 2005. "A Critical Review of Rural Poverty Literature: Is There Truly a Rural Effect?," International Regional Science Review, , vol. 28(4), pages 381-414, October.
    17. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563, Elsevier.
    18. Sanchis-Guarner, Rosa & Szumilo, Nikodem & Vernet, Antoine, 2024. "Startup stations: the impact of rail access on entrepreneurship (self-employment) in England and Wales," LSE Research Online Documents on Economics 124680, London School of Economics and Political Science, LSE Library.
    19. Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 12-26, June.
    20. Lin, Chen & Lin, Ping & Song, Frank, 2010. "Property rights protection and corporate R&D: Evidence from China," Journal of Development Economics, Elsevier, vol. 93(1), pages 49-62, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lrc:larijb:v:4:y:2014:i:6:p:38-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al Hossain (email available below). General contact details of provider: http://www.thejournalofbusiness.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.