The Impact of Owner Specific Factors on Growth of Small Business: Evidence from Sri Lanka

Abstract

This article addresses how owner-specific factors links to the level of growth in small and micro sized business in Sri Lanka. Analyzing owner-specific factors on small business growth is paramount due to the small size of the firm and the management structure of the firm. Past research uphold the owner’s personal characteristics and human capital attribution within this research framework. A personal characteristic of improvement orientation and three human capital variables were tested to identify their relationship with firm growth. A sample of 93 small scale manufacturing businesses (SSMBs) from Southern Province of Sri Lanka was randomly selected for this study. The statistical methods used include principal component analysis and multiple regressions. The study reveals that an improvement orientation, industry competence, and management competence are significant related to firm growth while training doesn’t link to firm growth. An improvement orientation of the founder/owner is strongest associated with firm growth.