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Determinants of Small Enterprises’ Performance in Developing Countries: A Bangladesh Case

Author

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  • Khondoker, Abdul Mottaleb
  • Sonobe, Tetsushi

Abstract

Family-based traditional microenterprises are abundant in developing countries, and in many cases they are a major source of income and employment for both urban and rural poor. With a few exceptions, however, most these family-based traditional microenterprises in the rural areas of developing countries seldom grow in terms of enterprises’ size and product quality. Thus, they tend to perform poorly relative to their growth potentials. The development of these family-based microenterprises would be instrumental to employment generation, poverty alleviation and sustainable economic growth in developing countries. Using primary data collected from the traditional handloom industry in Bangladesh, this paper inquires into the development process of family-based traditional microenterprises in developing countries. The paper empirically demonstrates that entrepreneurs’ general human capital acquired by formal education is critically important for the introduction of new and high value-added fashionable products, and, thus, performance of the enterprise.

Suggested Citation

  • Khondoker, Abdul Mottaleb & Sonobe, Tetsushi, 2011. "Determinants of Small Enterprises’ Performance in Developing Countries: A Bangladesh Case," MPRA Paper 44006, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:44006
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    File URL: https://mpra.ub.uni-muenchen.de/44006/1/MPRA_paper_44006.pdf
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    References listed on IDEAS

    as
    1. Hisaki KONO & Kazushi TAKAHASHI, 2010. "Microfinance Revolution: Its Effects, Innovations, And Challenges," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 15-73.
    2. Vu Hoang Nam & Tetsushi Sonobe & Keijiro Otsuka, 2010. "An Inquiry into the Development Process of Village Industries: The Case of a Knitwear Cluster in Northern Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 312-330.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Family-based business; Handloom industry; Human Capital;

    JEL classification:

    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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