Analysis of Determinants of Business Performance in Micro Enterprises- A Special Reference to Matugama Area
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Date
2011
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Uva Wellassa University of Srilanka
Abstract
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have been recognized as an important strategic sector in Sri Lanka for generating high economic growth, reducing unemployment, inequality and poverty. The Government in its top priority has recognized the importance of this sector in achieving a balanced economic growth, equitable regional distribution and increasing employment and productivity levels, and has adopted various policies for the development of micro enterprises in Sri Lanka. Micro and small enterprises contribute to the economic growth through several pathways including employment generation, poverty alleviation, reducing income disparity, entrepreneurship development, economic dynamism, linking the value chains and social development. Due to these facts micro and small enterprises are considered as the engine of economic growth in Sri Lanka.
The number of people engaged in micro and small enterprises increase as a result of new enterprises being started and the expansion of existing activities. According to the traditional theoretical arguments, business performance of Micro enterprises mainly depends on some defined determinants of the business performance. Matugama is a developing area where most of the people tend to start their own businesses rather than working for a monthly salary. Therefore, it is relevant to analyze the determinants of the business performance of micro enterprises with reference to the Matugama area. Accordingly, this paper is an effort to quantify the above problem econometrically.
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Keywords
Entrepreneurship, Human Resource Management, Management