Context specific determinants of performance of informal sector: a study of factor structure

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.