Entrepreneurial characteristics and small & medium enterprises’ (SMEs) success in Sri Lanka: special reference to eastern province

Abstract

It is an ongoing argument always that Entrepreneurs are said to be "born, not made." Many successful entrepreneurs do indeed share a set of personal characteristics. Successful entrepreneurs have particular abilities and qualities that enable them to overcome challenges and pursue their ambitions. Though there are no clear studies on the topic, the image is likely dismal as it is aggravated by the challenging business environment in Sri Lanka. This was found to be accurate by determining that majority of behavioral traits associated with entrepreneurship are genetic and hardwired. Studies have discovered that there is some genetic basis for entrepreneurial instincts and. Nevertheless, this study aims to investigate the four vital entrepreneurial characteristics that influence the success of Small and Medium Enterprises (SMEs) in Sri Lanka. A structured questionnaire was used to reap the data from a sample of 296 SMEs actively operating in the Eastern Province of Sri Lanka. The Structural Equation Modelling (SEM-AMOS) was used to analyze the data. The study's findings discovered that entrepreneurs' characteristics play a substantial role in SMEs performance and success. In addition, Entrepreneriul Traits like Motivation & Goal Orientation and Entrepreneurial Orientationhave a larger role in influencing SMEs successss than the traits of Social Networks and Risk-Taking Propensity. The finding suggests that Goal Orientation and Entrepreneurial Orientation are inevitable characteristics that must be developed by Sri Lankan Entrepreneurs. The Social Network was one of the vital characteristics of entrepreneurs, which greatly associate with SMEs' success. As usual, this study strongly recommends and brings robust findings that entrepreneurs must be risk-taker to lead the firm for greater success. Moreover, this study also contributes to the entrepreneurship and SMEs literature, and implication supports policymakers to include these characteristics in the policy decision. Finally, this novel work assists academics and Universities in adopting the findings into the Universities’ curriculum.