Effect of Entrepreneur and Firm Characteristics on the Business Success of Small and Medium Enterprises (SMEs) in Bangladesh

Abstract

This study examines the effect of characteristics of entrepreneur and characteristics of the firm on the business success of Small and Medium Enterprises in Bangladesh. The study is based on survey methodology through a questionnaire administered on the owners and employees of small firms. Data are analyzed using statistical package for social sciences (SPSS). Two hypotheses are proposed and tested. The characteristic of entrepreneur is found to be a significant factor for business success of SMEs in Bangladesh. However the firm characteristics are found not to be significant factor on the business success of SMEs in Bangladesh. The results of the analysis show that only one of the demographic factors which is duration of organization operated has significant effect toward business success of SMEs. SMEs that are operated longer period have been more successful in comparison to those who have been in operation for a shorter period. In addition to this, independent sample t-test shows that gender plays a significant role on business success of SMEs in Bangladesh. This study has implications for entrepreneurs and policy makers