Factors Affect the Success of SME in Bangladesh: Evidence from Khulna City

Md. Reaz Uddin · Tarun Kanti Bose

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Entrepreneurship Studies and Influences SMEs Development and Digital Marketing Firm Innovation and Growth

Abstract

Small and Medium Enterprises (SMEs) occupy dominant positions in economy. SMEs bear special significancefor counties where density of population is very high because it offers huge employment opportunities andincome generations at low cost. Considering the importance this study has strived to identify those factorscontribute the success of SMEs using causal model. Data were collected from SMEs owners of the Khulna city,divisional city of Bangladesh. A total 195 respondents were finally interviewed for the study. Several factorswere selected typically affect the success of SMEs from pervious literature. Important factors were identifiedfirst using rotated components matrix later regression statistics was applied to find out which are statisticallysignificant. Business plan, channel of distribution, management skills and government support are identifiedstatistically significant in determining success of SMEs in Khulna City.

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References

1979Review of Psychometric theory (2nd ed.).2011Effect of Entrepreneur and Firm Characteristics on the Business Success of Small and Medium Enterprises (SMEs) in Bangladesh 2011Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand 2010DETERMINANTS OF BUSINESS SUCCESS OF SMALL AND MEDIUM ENTERPRISES 2004Small Business Critical Success/Failure Factors In Developing Economies: Some Evidences From Botswana 2017The impact of socio-economic factors on small business success

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