Factors Affecting Small and Medium Enterprises Success in Underdeveloped Country

INTRODUCTION

The thesis is about the factors affecting small and medium enterprises business success in underdeveloped country like Bangladesh. The objective of the research is to identify the factors which are hindering the business of underdeveloped countries like Bangladesh. The reason behind this thesis is to develop the understanding that how people should start a business by keeping in mind the factors affecting to the success and hence to decrease the risks of failure and increase the chance of success for commencing a new business. The outcomes of this study prove to be useful for the entrepreneur’s and the policy makers of the country. In this study the six factors are found which effects the success of business. The research to find the outcome is being a framework of various theoretical as well practical analysis.

Summary

The article is about the factors affecting the small and medium sized enterprises to the success of the business. The research has been carried out by the scholar that in the success of SMEs of the underdeveloped country such as Bangladesh there are some factors which influences them (Ayuso, S. and NavarreteBáez, F.E., 2018). The factor includes characteristic of SMEs, management and know-how, products and services, the way of doing business and cooperation, resources and finance, and external environment. The significant response from the private sector is remarkable and suggested that liberalisation must be measure by the supplemented proactive policies to attain the desired goal due the intense attention in the back drop of the various structural and trade policy. Small medium enterprises stimulate private ownership, entrepreneurial skill and can quickly adopt the changes in market demand supply (Bouazza, Ardjouman, and Abada, 2015). Therefore, the dynamic environment causes more uncertainty in small and medium organization as compare with the large organization. In this research there are some factors like services, management know how ad external environment which effects the business success of SMEs in Bangladesh. In this report the six hypothesis stated out of which four were accepted as per the research. It has been founded that there are three factors that affect the success of underdeveloped countries.

Strengths

The strength of this report will be the appropriate method used by the scholar to identify the various factors that influences the small and medium sized industry. The researcher has conducted this research with the help of interview and questionnaires. The advantages of questionnaire Cost effective and inexpensive. Once a questionnaire is designed it can be mass produced easily and distribution is also inexpensive. Generally quick and easy to complete. Typically, they are short and easy to understand. Privacy usually not an issue and issues easily resolved. Design flexibility (Ahmad and et.al., 2015). Whereas the advantages of the interviews include the Good response rates. Being in the room with the person results in very high response rates. More information is usually provided. Subjects can elaborate on answers. Time taken can be longer and follow up questions to responses can be used. The interviewer can help if there is a question that isn’t understood by the subject. Therefore, researcher has uses the various tools like SPSS, which is used to identify the results of the research. This software is the biggest strength of the research report such as SPSS can develop new variables from existing information. Therefore, it can provide the various types of analysis which are not available in the package programs. The uses of SPSS can help in the manipulation of data. The scholar has used various tools like reliability analysis, as reliability analysis, frequency analysis, regression analysis, one-way ANOVA and T-test which proves very beneficial in identifying the appropriate result of the research. Therefore, the research topic is also very one important and a strength of this report. As it provides the information to the public of Bangladesh to keep in mind the factors affecting the success of business.

Weakness

The methods used for the research like questionnaires and surveys have various weaknesses like the most serious drawback of this method it can be used effectively with the advantages that only the educated people of underdeveloped countries can understand the question well. This method do not prove practicable for those who are illiterate. Even if they are educated there are number of people who are not interested in this particular enquiry which conducted. the questionnaire after filling, number of them may supply incorrect information. Therefore, this method applies the high degree of non-responsiveness and consequently, the result based on the information supplied by small portion of the selected individuals cannot regarded as reliable.at times (Ayuso and NavarreteBáez, 2018). The informants are not willing to give written information in their own hand writing on certain personal issues like income, profit of the organization and so on. On the other interviews have also some weaknesses like this method can be used only for the intensive studies. So it is not suitable for the extensive analysis and studies. Therefore, the major drawback of this method is that it is absouloutly subjective in nature and its investigation success is largely depending upon the intelligence skills techniques and diplomacy. If the investigator is not intelligent, witty or skilful enough to understand verbal or non-verbal expressions of the interviewing audience the result obtained will be not reliable for any