Determinants of Employment Growth in Small Enterprises in Sri Lanka : A Causal Analysis

概要

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Small enterprises (SEs) are increasingly playing an important role in Sri Lankan economy. However, little is known about the determinants of firm growth in terms of employee growth. The purpose of this study is to gain an understanding of the factors influencing employee growth through developing and testing an employee growth model. Human capital, social capital, access to external resources and internal capabilities & business structure are included in the model, which is tested using data collected by face-to-face interviews with 97 entrepreneurs. Using path analysis approach the results of the study revealed that certain variables of human capital (i.e, training with work experience in same field) social capital (i.e., organizational networks with network maintenance, resources sharing with SEs), access to external resources (i.e., access to inputs) and internal capabilities & business structure (i.e., innovation and imitations and number of products with employee incentives) have significant positive effects on employee growth.
2011-11-15