An empirical study of nepalese SME entrepreneurs' motivation, success factors and chalienges and their impact on performance | |
| Author | Bhattarai, Shreeya |
| Call Number | AIT RSPR no.SM-20-10 |
| Subject(s) | Small business--Nepal Entrepreneurship--Nepal |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | Nepal has become a highly dependent economy on remittance income that led to increase in consumption but no significant capital formation. Nepal is in need of more entrepreneurs to bring productive use of its human capital and ensure sustainable growth in the economy. Hence, this study aims to highlight key motivation, success factors and challenges to better understand Nepalese SME entrepreneurs and suggest appropriate measures to enhance the entrepreneurial culture. The main purpose of this study is to determine the relationship between performance and three crucial aspects of entrepreneurial process, which are motivation, success factors and challenges. Survey questionnaire was used as means of data collection. The responses from 146 SME entrepreneurs operating business in Nepal were collected for further analysis. Statistical techniques such as principal component analysis and regression were used. From the data analysis, intrinsic factors such as need for achievement, proving themselves, using their past experience and interest, etc. are found to be more common motives to start business by Nepalese entrepreneurs. Additionally, there is positive relationship between motivation factors and performance. In case of success factors, management skills are considered vital to contribute towards business success. The relationship between success factors and performance also showed some positive significance. While assessing challenges, most concerning challenge for SME entrepreneurs is capital related which are poor technological development and difficulty to raise financial capital. Both challenge factors also have negative and significant relationship with performance. New entrepreneurs can use the study to understand basic skills that are needed prior to establishing new business to ensure better survival in the market. It also shows potential approaches that government must adopt to improve their entrepreneurial culture. Overall, the study adds to entrepreneurship literature of low-income developing economies like Nepal. |
| Year | 2020 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ransom, Lakeesha K. |
| Examination Committee(s) | Vimolwan Yukongdi;Badir, Yuosre F. M. |
| Scholarship Donor(s) | His Majesty the King’s Scholarships (Thailand) |
| Degree | Research Studies Project Report (M. BA.) - Asian Institute of Technology, 2020 |