Success factors of Micro, small and medium Enterprises: A study on Bangladesh

Abstract

Micro, small and medium enterprises (MSMEs) play a significant role in the development of the country. MSME is the backbone of a nation like Bangladesh. The importance of MSMEs is evidenced by their high presence in the economic structure of the country. If MSME sectors of a country are strong, it will help to contribute in the economy and gross domestic product by reducing the level of unemployment, reducing in poverty levels and promotion of entrepreneurship activity. For this reason, MSMEs are getting the highest priority from the policy maker due to their already proven multidimensional contribution to the socio economic of a country. The aim of the study is find out the success factors of MSME sectors in Bangladesh. The study examined eight factors that influence the MSMEs. These factors are Entrepreneurial Competency and Financial Resource Management, Government Support, Adoption of New Technology, Favorable External Environment, Marketing Capability, Managerial Capacities, Standardization of Products and Services and Business Plan. The theoretical framework has been drawn out and questionnaire was designed based on the factors chosen. Eight hypotheses were developed to find out factors that are affecting business success of MSMEs in Bangladesh. The research has used convenience sampling. The research has conducted 400 MSME entrepreneurs and received 360 questionnaires out of 400. The entire hypotheses were tested with SPSS and five factors were accepted. The regression analysis result shown that the most significant factors affecting business success of MSMEs in Bangladesh were Favorable External Environment, Entrepreneurial Competency and Financial Resource Management, Marketing Capability, Government Support and Standardized Products and Services.----