THE IMPACT OF CRITICAL SUCCESS FACTORS ON SUSTAINABILITY OF SMALL AND MEDIUM SCALE ENTERPRISES
Small and medium enterprises are not only generating jobs and economic growth but also encouraging the process of innovation and transforming the Socio-economic nature in to better. 90% of entities in Sri Lanka belong to small and medium scale operation and it contributes nearly by 52% of Gross Domestic product. Entrepreneurs need to incorporate a set of strategies to prolong the entities in the market. Perception and application of critical success factors are significant in conserving the ventures in preventing short term failure. Perception of Critical success factors such as entrepreneurial, enterprise based, managerial, business support wise, capital and business environment factors on venture existence would vary from one venture to another since each entity is unique in functioning. The study examines the relationship between critical success factors and sustainability and also identifies the most crucial factors that need to be focused much in the contemporary society in sustaining the entity. Approximately 112 entities were sampled out of 1181 registered small and medium enterprises in Negombo division. Stratified random sampling was used through proportionated method. Confirmatory factor analysis, Chi square test, multiple regression analysis were used from inferential approach. Also central tendency along with illustrative tables are used from descriptive approach. The study reveals that entrepreneurial, managerial and business supportive factors highly influence the survival of business than the other factors. Adopting dynamic changes in the market and application of suitable assortment of critical success factors would prolong the entities in the long-run.
Keywords: Critical Success Factors, Small and Medium Scale Enterprises, Sustainability, Entrepreneurs, Confirmatory Factor Analysis