Impact of Socio Economic Factors Influencing on Entrepreneurship of Small and Medium Enterprises in Jaffna Municipal Council Area

Abstract

In this modern world the entrepreneurship is the powerful tool that has a major impact on economic development in our society. The entrepreneurship depends on the factors such as social, economic, psychological, political and legal factors which have the impact on the entrepreneurial success. The primary objective of this paper is to analyze the impact of socio-economic factors in relation to the entrepreneurship of Small and Medium Enterprises (SMEs) across Jaffna municipal council area as we identified that those factors mostly affect the growth of the entrepreneurship. For the purpose of this research, data collection was done through the questionnaire and reliability of the items was confirmed. Further, Respondents were selected based on the simple random sampling techniques. Correlation and regression analysis were performed to test the hypotheses. Analysis of the data showed that there is a positive relationship between socio economic factors and entrepreneurship. Research implication of this study is that the sample used in this study is specific in nature; it constituted of Jaffna region Small medium enterprises. Thus, the results should be interpreted accordingly. On the basis of these findings, implication of the study was highlighted.