Abstract:
The objective of this study was to identify the factors influencing the performance of
the informal sector in war affected regions of Sri Lanka and to examine the factor
structure of it. Regarding to this study the researchers had mixed opinions in the factors
influencing the informal sector so action was taken to find the major factors. This study
was conducted in two stages. Stage one of the research, the exploratory study contained
a factor identification study using the triangulation method with a sample size of 100
women headed households from the Vavuniya District in Si Lanka. Information were
gathered from three perspectives, motivating factors, hindering factors and factors
recommended to improve performance. Items generated by the responded were undergone
content analysis. The content analysis of the exploratory study found four major factors.
Consequently, the study of factor structure of the determinants of performance of the
informal sector, at the second stage with a sample size of 300 women entrepreneurs
engaged in the informal sector was conducted. The results revealed four factors, namely
training, education, social and economic, matched with the results of the exploratory
study. Implications are also discussed.
