Determinants of Success and Failure of Entrepreneurs of SMEs in Bangladesh- An Explorative Study

Abstract

Entrepreneurs and entrepreneurship are significantly correlated with the economic development of a country. Entrepreneurs cannot easily succeed in doing successful business venture without facing risk that arises from internal and external conditions. So, the present study has been undertaken in order to identify the factors contributing to the success; and influencing the failure of entrepreneurs of SMEs in Bangladesh by employing sophisticated multivariate technique-Varimax Rotated Factor Analytical Technique. The study has collected and used only primary data; and consulted available literature for designing the questionnaire and study. The study has considered 18 variables responsible for failure, and 10 variables contributing to the success of entrepreneurs. The study has identified factors responsible for success of Entrepreneurs of SMEs: Relationship Factor; and Organization Factor in order of magnitude. It has identified factors influencing the failure of Entrepreneurs of SMEs: sustainable Factor, Supply Factor, and Product Related Factor in order of magnitude. The study has suggested entrepreneurs of SMEs to consider these factors while developing policies and strategies for SMEs.