IDEAS home Printed from https://ideas.repec.org/a/sae/millen/v11y2020i1p54-78.html
   My bibliography  Save this article

Survival of the Smallest: A Study of Microenterprises in Haryana, India

Author

Listed:
  • Surender Mor
  • Sonu Madan
  • Geoffrey R. Archer
  • Arvind Ashta

Abstract

The present study investigates the sustainability of microenterprises using primary data on 222 microenterprises in the informal small business segment of India. We identified relevant factors inducing entrepreneurs to sustain their business despite facing challenges emerging in the business world from time to time. The findings indicate that microenterprises with higher initial capital investment and those run by more experienced entrepreneurs have more chances for their long-run survival. The findings further indicate that the attainment of higher education is unrelated to long-term survival in the microbusiness world, perhaps because it opens more options of livelihood leading to exploration and experimentation of other areas of work engagement. The probability of long-run survival is higher in manufacturing microenterprises as compared to trading and services, likely because manufacturing experiences less volatility in this penurious context. Finally, microenterprises managed by males have better chances of long-run sustainability than female-operated microbusinesses.

Suggested Citation

  • Surender Mor & Sonu Madan & Geoffrey R. Archer & Arvind Ashta, 2020. "Survival of the Smallest: A Study of Microenterprises in Haryana, India," Millennial Asia, , vol. 11(1), pages 54-78, April.
    • Handle: RePEc:sae:millen:v:11:y:2020:i:1:p:54-78
    DOI: 10.1177/0976399619900609
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0976399619900609
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0976399619900609?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tristan Boyer & Régis Blazy, 2014. "Born to be alive? The survival of innovative and non-innovative French micro-start-ups," Small Business Economics, Springer, vol. 42(4), pages 669-683, April.
    2. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
    3. Marco Caliendo & Alexander Kritikos, 2010. "Start-ups by the unemployed: characteristics, survival and direct employment effects," Small Business Economics, Springer, vol. 35(1), pages 71-92, July.
    4. Miriam Otoo & Joan Fulton & Germaine Ibro & James Lowenberg-Deboer, 2011. "Women Entrepreneurship In West Africa: The Cowpea Street Food Sector In Niger And Ghana," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 37-63.
    5. Cressy, Robert, 1996. "Are Business Startups Debt-Rationed?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1253-1270, September.
    6. Surender Singh, 2007. "Technical Efficiency of Paddy Cultivation: A Socioeconomic Analysis of Haryana State," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3), pages 36-47, July.
    7. Estapé-Dubreuil, Glòria & Ashta, Arvind & Hédou, Jean-Pierre, 2016. "Micro-equity for sustainable development: Selection, monitoring and exit strategies of micro-angels," Ecological Economics, Elsevier, vol. 130(C), pages 117-129.
    8. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2016. "Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data," Research Policy, Elsevier, vol. 45(7), pages 1474-1492.
    9. Julie Elston & Sandy Chen & Alois Weidinger, 2016. "The role of informal capital on new venture formation and growth in China," Small Business Economics, Springer, vol. 46(1), pages 79-91, January.
    10. Issam Laguir & Matthijs Den Besten, 2016. "The influence of entrepreneur’s personal characteristics on MSEs growth through innovation," Applied Economics, Taylor & Francis Journals, vol. 48(44), pages 4183-4200, September.
    11. Robert Fairlie & Alicia Robb, 2009. "Gender differences in business performance: evidence from the Characteristics of Business Owners survey," Small Business Economics, Springer, vol. 33(4), pages 375-395, December.
    12. Shiferaw, Admasu, 2009. "Survival of Private Sector Manufacturing Establishments in Africa: The Role of Productivity and Ownership," World Development, Elsevier, vol. 37(3), pages 572-584, March.
    13. Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2013. "The development process of rural informal industries in developing countries: the case of Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 229-249, July-Dece.
    14. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-559, November.
    15. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, vol. 34(6), pages 795-816, August.
    16. Ralitza Dimova & Ira N. Gang & John S. Landon-Lane, 2005. "The Informal Sector During Crisis and Transition," WIDER Working Paper Series RP2005-18, World Institute for Development Economic Research (UNU-WIDER).
    17. Henrik Hansen & John Rand, 2014. "The Myth of Female Credit Discrimination in African Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 50(1), pages 81-96, January.
    18. Mohammad Abdul Munim Joarder & Syed Hasanuzzaman & Saleh Uddin, 2016. "The impact of investment climate indicators on ownership and firm performance: evidence from different stone mines in Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(2), pages 21-37, April-Jun.
    19. Bernardí Cabrer-Borrás & Paz Rico Belda, 2018. "Survival of entrepreneurship in Spain," Small Business Economics, Springer, vol. 51(1), pages 265-278, June.
    20. Chiara Criscuolo & Peter N. Gal & Carlo Menon, 2017. "Do micro start-ups fuel job creation? Cross-country evidence from the DynEmp Express database," Small Business Economics, Springer, vol. 48(2), pages 393-412, February.
    21. Cueto Iglesias, Begoña, 2008. "The sustainability of start-up firms among formerly wage workers," DEE - Working Papers. Business Economics. WB wb083108, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    22. Eshetu Bekele & Zeleke Worku, 2008. "Factors That Affect The Long‐Term Survival Of Micro, Small And Medium Enterprises In Ethiopia," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 548-568, September.
    23. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    24. Bates, Timothy, 2002. "Restricted access to markets characterizes women-owned businesses," Journal of Business Venturing, Elsevier, vol. 17(4), pages 313-324, July.
    25. Pei-Chou Lin & Deng-Shing Huang, 2008. "Technological Regimes and Firm Survival: Evidence Across Sectors and Over Time," Small Business Economics, Springer, vol. 30(2), pages 175-186, February.
    26. Susan Coleman & Carmen Cotei & Joseph Farhat, 2013. "A Resource-Based View Of New Firm Survival: New Perspectives On The Role Of Industry And Exit Route," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-25.
    27. Julie Elston & Sandy Chen & Alois Weidinger, 2016. "The role of informal capital on new venture formation and growth in China," Small Business Economics, Springer, vol. 46(1), pages 79-91, January.
    28. Pablo Fajnzylber & William F. Maloney & Gabriel V. Montes-Rojas, 2009. "Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1027-1047, August.
    29. Douglas Woodward & Robert Rolfe & André Ligthelm & Paulo Guimarães, 2011. "The Viability Of Informal Microenterprise In South Africa," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 65-86.
    30. Begona Cueto & Javier Mato, 2006. "An analysis of self-employment subsidies with duration models," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 23-32.
    31. Bauchet, Jonathan & Morduch, Jonathan, 2013. "Is Micro too Small? Microcredit vs. SME Finance," World Development, Elsevier, vol. 43(C), pages 288-297.
    32. Oecd, 2002. "Access for Business," OECD Digital Economy Papers 67, OECD Publishing.
    33. Issam Laguir & Matthijs Den Besten, 2016. "The influence of entrepreneur's personal characteristics on MSEs growth through innovation," Post-Print hal-02012533, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nurul Mohammad Zayed & Friday Ogbu Edeh & Khan Mohammad Anwarul Islam & Vitalii Nitsenko & Olena Polova & Olha Khaietska, 2022. "Utilization of Knowledge Management as Business Resilience Strategy for Microentrepreneurs in Post-COVID-19 Economy," Sustainability, MDPI, vol. 14(23), pages 1-16, November.
    2. Waluyo Handoko & Adhi Iman Sulaiman & Toto Sugito & Ahmad Sabiq, 2024. "Empowering Former Women Migrant Workers: Enhancing Socio-Economic Opportunities and Inclusion for Sustainable Development," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 13, January.
    3. Welsh, Dianne H.B. & Kaciak, Eugene & Fadairo, Muriel & Doshi, Vijayta & Lanchimba, Cintya, 2023. "How to erase gender differences in entrepreneurial success? Look at the ecosystem," Journal of Business Research, Elsevier, vol. 154(C).
    4. Mohamedou Bouasria & Arvind Ashta & Zaka Ratsimalahelo, 2020. "Bottlenecks to Financial Development, Financial Inclusion, and Microfinance: A Case Study of Mauritania," JRFM, MDPI, vol. 13(10), pages 1-28, October.

    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. Tristan Boyer & Régis Blazy, 2014. "Born to be alive? The survival of innovative and non-innovative French micro-start-ups," Small Business Economics, Springer, vol. 42(4), pages 669-683, April.
    2. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    3. Mohamedou Bouasria & Arvind Ashta & Zaka Ratsimalahelo, 2020. "Bottlenecks to Financial Development, Financial Inclusion, and Microfinance: A Case Study of Mauritania," JRFM, MDPI, vol. 13(10), pages 1-28, October.
    4. Chun Yang & Bart Bossink & Peter Peverelli, 2017. "High-tech start-up firm survival originating from a combined use of internal resources," Small Business Economics, Springer, vol. 49(4), pages 799-824, December.
    5. Masatoshi Kato & Yuji Honjo, 2015. "Entrepreneurial human capital and the survival of new firms in high- and low-tech sectors," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 925-957, November.
    6. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    7. Masatoshi Kato & Koichiro Onishi & Yuji Honjo, 2017. "Does patenting always help new-firm survival?," Discussion Paper Series 159, School of Economics, Kwansei Gakuin University, revised May 2017.
    8. Dirk Oberschachtsiek, 2012. "The experience of the founder and self-employment duration: a comparative advantage approach," Small Business Economics, Springer, vol. 39(1), pages 1-17, July.
    9. Nicola Del Sarto & Alberto Di Minin & Giulio Ferrigno & Andrea Piccaluga, 2021. "Born global and well educated: start-up survival through fuzzy set analysis," Small Business Economics, Springer, vol. 56(4), pages 1405-1423, April.
    10. repec:ipg:wpaper:201412 is not listed on IDEAS
    11. Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 455-488, June.
    12. Barbara ERMINI, 2008. "Oltre Gibrat. Capitale umano dei fondatori, endogeneita' del finanziamento pubblico e crescita delle giovani imprese hi-tech italiane," Working Papers 322, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    13. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    14. Anasuya K. Lingappa & Lewlyn L.R. Rodrigues, 2023. "Synthesis of Necessity and Opportunity Motivation Factors in Women Entrepreneurship: A Systematic Literature Review," SAGE Open, , vol. 13(1), pages 21582440231, March.
    15. repec:ipg:wpaper:12 is not listed on IDEAS
    16. Oberschachtsiek, Dirk, 2010. "How do local labor market conditions and individual characteristics affect quitting selfemployment?," Discussion Papers, Presidential Department P 2010-001, WZB Berlin Social Science Center.
    17. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    18. repec:ipg:wpaper:2013-012 is not listed on IDEAS
    19. Tristan Boyer & Régis Blazy, 2013. "Born to be alive? The survival of innovative and non," Working Papers 2013-12, Department of Research, Ipag Business School.
    20. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    21. Rodríguez-Planas, Núria, 2007. "What Works Best for Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programmes? Evidence from Romania," IZA Discussion Papers 3051, Institute of Labor Economics (IZA).
    22. Fabiane Tubino Garcia & Carla Schwengber ten Caten & Elaine Aparecida Regiani de Campos & Aline Marian Callegaro & Diego Augusto de Jesus Pacheco, 2022. "Mortality Risk Factors in Micro and Small Businesses: Systematic Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-37, February.
    23. Cho, In Soo & Orazem, Peter, 2011. "Risk Aversion or Risk Management?: How Measures of Risk Aversion Affect Firm Entry and Firm Survival," Staff General Research Papers Archive 34162, Iowa State University, Department of Economics.

    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:sae:millen:v:11:y:2020:i:1:p:54-78. 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: SAGE Publications (email available below). General contact details of provider: .

    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.