Small Businesses Survival and Success : An Exploration of Socioeconomic Motivators and Restraints

The purpose of the study is to understand the segment of businesses which are neither part of the informal sector nor covered under government definitions of SMEs. This segment falls somewhere in between these two. This study examines their socioeconomic motivators which encouraged them to choose and continue in small business activities. Factors restraining further growth have also been explored due to which they fail to rise and come under SMEs definition. Nineteen Likert-style statements were used to determine the start-ups’ socioeconomic motivations. This study revealed that socioeconomic factors like the need to provide financial support to family, government policies and perceived alternative employment opportunity significantly affect the decision to undertake small business and later performance of the business. Also, respondents reported many factors which they perceive to have led to the stagnant growth of their businesses. The findings of the present work can be used as a reference to work out policies to encourage self-employment. Small business owners too can benefit by being aware of the problems or barriers which normally come and halt the expansion plans. Also, the study contributes to small business literature in the form of motivators and restraints which affects the seedbed of entrepreneurship directly