Analyzing Success Factors of Small and Medium Enterprises (SMEs): A Study in Indian Context

Abstract

The importance of small and medium enterprises (SMEs) is recognized in the academic and policy literature. Entrepreneurship and SMEs are integral to economic and social development and regeneration. It is recognized that, SMEs are the engine of economic growth through employment generation, contribution to GDP, technological innovations, and other aspects of economic and social development. With this in consideration, the objective of this research is to identify the success factors (SFs) for small and medium enterprises in Chhattisgarh, India. Based on the literature review, 28 factors have been identified and subsequently categorized into three groups, namely entrepreneurial and enterprise factors, motivational factors, and managerial and environmental factors. Analyzing identified success factors in the present study shows that need for achievement under motivational factor, education level and financial resources under entrepreneur and enterprise factor, managerial capability, and government support under managerial and environmental factors are the important success factors (SFs) for the development of entrepreneurship through SMEs in Chhattisgarh region of India.