Factors influencing Financial Performance of Rural Women Entrepreneurs in Northern Sri Lanka

Abstract

The study is to determine and explore the factors which influence the Financial Performance of Rural Women Entrepreneurs in Kilinochchi District, Northern Province. Independent factors such as Family factors, Physiological factors, Managerial factors, learning factors, and Financial factors were considered. Performance of the Women Entrepreneurs is evaluated by the Financial Return (sales) of their businesses. Secondary objective of this Research Study is to measure the correlation between dependent variables and independent variables considered in every factor. Furthermore, Final data for the research were collected from 60 rural women entrepreneurs using systematic random methods. through questionnaires and by face-to-face interviews. The collected data were initially cleansed and coded, and then recorded quantitative data were analyzed by the software tool Statistical Package for Social Sciences (SPSS). The results of the univariate analysis revealed how factors influence rural women entrepreneurs’ performance. Family factor, Physiological factor, Managerial factor, learning factor, and Financial factor mean values were 4.36, 3.91, 3.87, 4.00 and 3.75 respectively, it means factors are influencing the rural women entrepreneurs’ performance significantly. According to the correlation analysis, the relationship between the dependent variable and the independent variable is positive, but the strength between them has been different. Between family factors, it has a moderate relationship. While Physiological factors, Managerial factors, and Learning factors have a weak relationship, Financial factors have a strong relationship with the financial performance. So, the hypotheses were accepted based on the correlation analysis. Multiple regression analysis revealed that all the 05 factors have influenced 73% of the Performance (Financial Return) of rural women entrepreneurs. This study evaluates the women entrepreneur’s performance by financial return only.

Keywords: Entrepreneurship, Women Empowerment, Rural Development, Financial Performance, SME