Impact of Behavioural Attributes and Enterprise-related Capital on Micro-enterprise Growth

Abstract

In the majority of emerging and developing countries, micro-enterprises generate employment, revenue, and contribute considerably to GDP. However, research shows that micro-enterprises do not grow since their primary emphasis is survival rather than expansion. This is primarily due to a lack of funds, market, consumer base, and entrepreneurial spirit. This low growth phenomenon is not well documented in the literature, and no significant research has been undertaken. The study examines a sample of 280 micro-entrepreneurs from three different regions of India. Using a multi-linear regression approach, the results indicate that the existing literature's growth determinants have little impact on enterprise growth. This research can be expanded by considering different industries and business types. A more growth-oriented research, according to the study, is needed to identify major factors influencing micro-enterprise growth in India, in particular, and in the developing world in general.