Factors contributing to the business growth of small and medium dairy enterprises in Sri Lanka

Abstract

Purpose: The aim of this study was to investigate factors contributing to the business growth of Small and Medium Dairy Enterprises in the Eastern Province. The study was guided by the following research question: What are the factors that contribute to the Business growth of Small and Medium Dairy enterprises in the Eastern Province? Design/Methodology/Approach: The research adopted a descriptive design with a target the population of 1300 SMEs from which a sample size of 270 respondents from the Eastern province using a structured questionnaire. Every factor was tested for reliability and validity using factor analysis and structural equation modeling with Smart-PLS was also used to establish the relationship between independent variables and business growth of SMEs. Findings: The study revealed that Entrepreneurial skill, Access to financial services are highly positively correlated to the business growth of SME in the dairy sector, and Access to the market is significantly positively correlated to the business growth and Access to institutional support is also significantly correlated to the business growth of SMEs in the Eastern Province. Originality/value: The study recommends a multi-facet model to increase the performance of entrepreneurs in the dairy industry.