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

As seen in the table 1 above each variable consisted of at least 4 items. The values of Cronbach’s alpha are greater than 0.6 for each variable and hence considered acceptable. We conclude that the research instrument used in the study is valid and reliable.
To analyze data, descriptive statistics, correlation and regression analyses were used. Pearson r is the most widely used bivariate correlation technique. Pearson’s correlation measures both direction and extent of association between the variables. The coefficient of correlation measure was, therefore, used to examine the relationship between the success and demographic factors and between success and environmental factors. Two regression equations were used to test our theoretical model. One for analyzing the direct effects of seven environmental variables on success and another for doing the same for demographic variables, aimed at determining the highest influence factor (s) of independent variables on business success of entrepreneurs.

Table 2 presents correlation between success and demographic characteristics. Table 2 indicates that experience and education are positively correlated while age is negatively correlated to business success. Regression analysis results (see table 3) based on independent variables (demographic) depicts that education and experience directly affect the success of entrepreneurs in Bangladesh, as evidenced from greater t-value (t>2). Age factor has relatively less and negative influence on success when compared to these two factors (t= -1.93). Altogether demographic variables explained 26.9% of the total variance (adjusted r-square is.269). As regards to environmental variables, results (table 4) show that all the independent variables are correlated to the entrepreneurial success. Regression analysis results based on independent variables (environmental) show that (see table 5) market, infrastructure, capital access, political environment, affected entrepreneurial success significantly in positive directions as proved by the higher t (t>2) and beta for each of them. Altogether, the independent variables (environmental) explained 39.8 % of the total variance in success (adjusted R-square is.398)

Table 1. Reliability test

No Variable No of items Cronbach’s alpha
1 Marketing 5 0.78
2 Technology 4 0.73
3 Information access 3 0.69
4 Capital access 5 0.81
5 Government support 3 0.67
6 Political environment 4 0.71
7 Infrastructure 3 0.68

Table 2. Correlation between success and demographic characteristics

Success Age Education Experience
Success 1 -.241* .255* .249*
Age -.2418 1 .212 -.237
Experience .255* -.212 1 -.322**
Education .249* -.237 -.322** 1

Table 3. Coefficient of determination between independent variables (demographic) and dependent variable

Variable Beta Standard coefficient T-value Significance Mean SD
Success 6.41 000 4.7 .6825
Age 2.00 -1.938 .056 37. 6.301
Experience .293 2.868 .000 2.5 .5031
Education .348 3.329 .000 2.0 .5624

Table 4. Inter-correlation between environmental variables and entrepreneurial success

Success Mkt Capital Infra Govt Tech Polenv Info
Success 1 .435** .256* 447** .288** .328** .406** .225*
Mkt .435** 1 -.073 .573** . 285* .283* .161 .277*
Capital .256* -.073 1 -,064 .204 .020 .018 .165
Infra 447** .573** -.064 1 .401** .314** .152 .352**
Govt .288** .285* .204 .401** 1 .475** .106 .305**
Tech .328** .283* .020 .314** .475** 1 .146 .396**
Politcal .406** .161 .018 .152 .106 .146 1 -.014
Info .225* .277* .165 .352** .305** .396** -.014 1

Table 5. Coefficient of determination between independent variables (environmental) and dependent variables

Variable Beta standard coefficient T-value Significance Mean Standard Deviation
Success -4.19 .000 11.45 3.84
Marketing 2.134** 2.134 .036 12.75 2.37
Capital access 294*** 3.177 .000 13.96 1.22
Infrastructure **

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2.285 .025 12.56 3.43
Government support -.044 -.406 .686 8.42 4.66
Technology .161 1.514 .134 7.11 4.24
Political environment 304*** 3. 386 .000 4.88 .389
Information access -.027 -.262 .794 11.62 3.64

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