THE IMPACT OF BUSINESS AWARENESS, SOCIAL SUPPORT AND DEVELOPMENTAL ATTITUDES ON SUCCESS OF SMALL AND MEDIUM SIZED ENTERPRISES (SMES) -IN UVA PROVINCE

Abstract

Entrepreneurship has a role to play in promoting inclusive and sustainable economic growth of the country as it is experienced by many developed nations worldwide. Micro, Small and medium enterprises (SMEs) are the backbone of any economy. Therefore, it is a must to address SMEs needs and demands to harness the full potential of the sector. More than 1.2Million establishments and 03 Million individual engagements have expressed the weight of the sector in Sri Lanka. Having considered the importance of the sector this study attempts to examine the causes of business development intention and success of SMEs in Uva province Sri Lanka and their intentional determination towards the act. This study examined the psychological components on business development intention by applying the Theory of Planned Behavior (TPB) (Ajezen, 2006.) integrating psychology and Management together. Sample of 119 individuals was drawn from16 categorized listed SMEs operating in Uva province Badulla District by adopting the stratified random sampling technique and data was collected by using the questionnaire method, subjected to statistical analysis. As a result, it is found that, successive businesses have higher business development intention compared to the failures. Based on the assumption of the TPB Developmental Attitudes and Business Development intention have a positive relationship which proved yielding a strong positive correlation. Whereas social support showed a moderate positive significant relationship on business development intention. Further, Strong positive correlation was noted between the Business Awareness and Business Development Intention. Further, the impact of independent variables on dependent were found yielding the results of regression which showed a noticeable effect. This suggests that a well-established business culture and Business awareness along with well-formed Developmental Attitudes are key to Success of the entrepreneurship.