INDIVIDUAL FACTORS AFFECTING THE BUSINESS PERFORMANCE OF WOMEN ENTREPRENEURS IN COLOMBO DISTRICT, SRI LANKA

Abstract

Women entrepreneurs are considered as a significant driving force in every economy since they provide a considerable contribution to the economic development of the country. The purpose of this empirical research is to find out the relationship between individual factors and business performance of women entrepreneurs in the Colombo District, Sri Lanka. It puts forward the suitable recommendations to enhance their business performance. A theoretical framework is proposed by the authors, which include three main independent variables affecting the business performance of women entrepreneurs. Those variables are human capital, social learning, and financial capability. Self-developed structured questionnaires were distributed among 164 women entrepreneurs in the Colombo district, and data were analyzed through Pearson correlation analysis and multiple linear regression analysis. Results indicate that there is a positive relationship between the independent variables (human capital, social learning, and financial capability) and the dependent variable (business performance). Social learning is the most influencing factor on the business performance of women entrepreneurs in the Colombo district, in Sri Lanka. The study was limited to several individual factors, and business performance is measured only in the financial perspective. The scope of the study is narrowed to women entrepreneurs of the Colombo district, selected through convenience sampling method. The findings suggest promoting entrepreneurial culture in Sri Lanka, improving the accessibility to finance, augmenting mentorship, advisory, and business support services to intensify the business performance. The study suggests that the successful theoretical model developed in western countries concerning women entrepreneurship. It was relevantly adopted afterconducting field trials and investigated for adaptability in developing Asian countries like Sri Lanka.