The Influence of Entrepreneurial Traits and the Location of the Firm on the Success of Microenterprises: Empirical Evidence from Jharkhand State

Abstract

The purpose of this paper is to provide insights into the relationship between the entrepreneurial traits (need for achievement, risk taking propensity and internal locus of control) and the location of the firm on the success of microenterprises in the Jharkhand State of India. The primary data was collected from 310 valid respondents (active microentrepreneurs) by face-to-face interview using the convenience sampling technique in the State of Jharkhand. The relationship between the entrepreneurial traits and perceptual measures of business success with the location of the firm was tested. Structural equation modeling was used to identify the relationship between the entrepreneurial traits, the location of the firm and business success. The results indicated that the three entrepreneurial traits and the location of the firm are positively related to microenterprises success.