Abstract:
This study aims to identify the factors affecting the growth of Micro Small and
Medium Enterprises (MSMEs) in the Jaffna and Nallur divisional secretariat. The
dependent variable of this study is the growth of the business, and the
independent variables are Entrepreneur traits, MSMEs characteristics, and
Contextual factors. Primary data was collected from 70 MSMEs registered in
Nallur divisional secretariat using a stratified random sampling method.
ANOVA, independent sample t-test, chi-square test, and multiple regression
analysis were employed to test the study's hypotheses. Results of the study
revealed a significant mean difference among the group of education, annual
turnover, source of capital, enterprise type, and number of employees. However,
age, experience, marital status, experience of Entrepreneur, and origin of MSMEs
do not have any significant mean difference in growth. Further, it was disclosed
that all the variables used to measure the Entrepreneur's traits do not
significantly impact the growth of MSMEs. Nevertheless, the source of capital,
enterprise type, number of employees, and annual turnover under the MSMEs
characteristics showed a significant impact, while the origin of enterprise does
not significantly impact the growth of MSMEs. Among contextual factors,
marketing, technology, capital access, information access, social network,
legality, business plan, and entrepreneurial readiness do not significantly impact
the growth of MSMEs. However, government support has a positive and
significant impact. This study motivates entrepreneurs and managers of MSMEs
to consider the characteristics of MSMEs to achieve expected growth. Further, It
insists that the government subsidizes entrepreneurs to enhance their
performance and sustain the competitive market.
