Entrepreneurial Characteristics and Business Growth of SMEs: Special Reference to North Central Province

Abstract

The small and medium enterprises (SMEs) sector is considered to be the backbone of the modern economy, especially in developing countries where it plays a significant role in economic growth. Hence, it is crucial to monitor the growth of SMEs in these countries. Entrepreneur characteristics play a significant role in the development of both entrepreneurs and SMEs. This study aims to identify the influence of entrepreneur characteristics on the business growth of SMEs. To measure these characteristics, eight traits were selected, including risk-taking, self-motivation, adaptability, resilience, strong work ethic, networking skills, financial management skills, and strategic thinking. A stratified random sampling technique was used to select 120 participants from SMEs in the Anuradhapura and Polonnaruwa districts and asked them to complete a self-administrated questionnaire. The study's findings revealed that entrepreneurs' characteristics play a significant role in the growth of SMEs. The finding suggests that risk-taking, self-motivation, and adaptability are inevitable characteristics that must be developed by Sri Lankan Entrepreneurs. According to the study's findings, entrepreneurs possess vital characteristics that significantly impact the success of SMEs. Among these characteristics, networking skills stand out as particularly important. Additionally, the study recommends that entrepreneurs exhibit a willingness to take risks in order to lead their firms to even greater levels of success. These findings not only contribute to the existing literature on entrepreneurship and SMEs but also have implications for policymakers who may wish to consider including these characteristics in their policy decisions.