FACTORS AFFECTING THE FAILURE OF SMALL-SCALE ENTERPRISES IN SRI LANKA JEWELLERY INDUSTRY

Abstract

High failure among small scale businesses in the jewellery industry is an evident fact. This study attempts to identify factors leading to success or failure of small businesses of this industry. In order to collect data, the survey method and in-depth interviews were used. According to the survey results successful businesses and businessmen were found to possess better management related factors in the business and personal characteristics than failed entrepreneurs. Both types of factors were found to be important in discriminating between successful and failed entrepreneurs. At the same time it was found that personal characteristics have a somewhat higher influence than the management related factors for the success or a failure of a business. Analysis of case study data yielded almost identical results but with some additional variables. External environmental factors also appear to have an impact on the success of a business in the jewellery industry according to case study results. Combining the results of the survey and the case studies, the researcher has developed a model, which could explain the success or failure of a small business in this industry.

Keywords: Failure, Management related factors, Personal characteristics, Jewellery industry

For full Paper: fmscresearch@sjp.ac.lk