THE SUCCESS DETERMINANTS OF RURAL AND URBAN MICROENTERPRISES: A CASE FROM NORTH-EAST INDIA

Abstract

The disparities between enterprises in rural and urban areas have led to the question of determinants of success. This study assesses the success determinants of microenterprises in rural and urban areas of Northeast India. It evaluates microenterprise success (MS) using Entrepreneurial Resources (EPR), Enterprise Environment (ENE) and Enterprise Resources (ENR). A total of 210 samples in each of the rural and urban areas were collected from registered microenterprises. A quantitative approach employing t-test, Pearson correlation coefficient, ANOVA and multiple regression were used to assess the nature of the effect of EPR, ENE and ENR on microenterprise success and found a stronger percentage in urban areas than the rural areas. Further, based on individual analysis of the three variables, the finding indicates that EPR and ENR have a stronger effect in urban areas, whereas ENE has a stronger effect in rural areas, respectively. The findings of this study will be a driving force behind the determinants of microenterprise success.