Success Factors of Entrepreneurs of Small and Medium Sized Enterprises: Evidence from Bangladesh – Literature Review

Success Factors of Entrepreneurs of Small and Medium Sized Enterprises: Evidence from Bangladesh - Literature ReviewSuccess refers to the achievement of goals and objectives in any sector of human life. Though, in business, the concept of success generally refers to a firm’s financial performance, it has been interpreted in many different ways. Some authors defined success from tangible (objective) points of view such as revenue or a firm’s growth, personal wealth creation, profitability, turnover (Perren, 2000; Amrit et al 2000). Other studies associated entrepreneurial success with continued business operations, operating for at least three years. Some other studies have interpreted the success from intangible points of view where intangible assets (e.g., goodwill of firm) are linked to key factors of success. Despite the fact that success has been widely studied topic in the field of entrepreneurship, no consensus on what is understood by the success of the firm can be found in the literature. Our contention is that success is largely determined by subjective perceptions of the entrepreneur regarding their success. This study, therefore, attempts to find out the relationship of success as perceived by entrepreneurs to demographic and main environmental elements.
A wide range of studies profiling the demographic characteristics of entrepreneurs is evidenced in the literature. A common trend in all of these studies has been the reliance on descriptive profiles of demographic and personal characteristics, which are then often compared with results derived from similar studies in different country settings. We propose, in this study, that education, age and experience are important demographic factors from the context of Bangladesh. The argument is that education and experience play a fundamental role in the process of economic development of a developing country. Future entrepreneurs tend to be younger possessing stronger educational backgrounds and having less previous working experience. Skills and educational backgrounds of these entrepreneurs are vital to the development of new businesses. Secondly, more and more men and women are emerging as entrepreneurs in the economy of Bangladesh with less experience and education. Several other studies found a significant relationship between the age of entrepreneur and business success.
Based on the above discussion on demographic characteristics of entrepreneurship proposed in our theoretical framework, we hypothesize the following:
H1: There is a significant relationship between the age of entrepreneurs and business success.
H2: There is a significant relationship between education of the entrepreneurs and their success.
H3: There is a significant relationship between work experience of the entrepreneurs and their success

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