Entrepreneurial Factors Contributing towards the Firm’s Growth in terms of Employment Generation: A Case Study of Electric Fan Producing Firms in Gujrat District

Abstract

The objective of the present study is to investigate the importance of entrepreneurial factors being an important source of firm’s growth in terms of generating employment opportunities. Primary data collected from a survey of 237 electric fans producing units of Gujrat is being utilized to empirically test the role of entrepreneurial and non- entrepreneurial determinants of firm growth. Multinomial Logit model is employed to find out the role of entrepreneurial factors along with non-entrepreneurial characteristics as important determinants of employment generation. Different problems and obstacles hindering firms’ growth in terms of generating employment activities are also been undertaken in the present analysis. The characteristics like educational level of owner/manager of the firm, attitude like part time business, unemployment push, use of internal and external sources of financing, market orientation, sales to local market, number of markets dealing with, risk taking attitude on behalf of entrepreneur, family business, industry specific know how desire of independence, previous ownership experience, working through networks, partnership business, decision to innovate in terms of introduction of new product, new process and major improvements in existing system, diversification in terms of products, on job training, utilization of unique knowhow, price adaptability are found to be important factors affecting firms’ growth in terms of employment generational activities. Government should device such policy measures that can help small units to grow and provide employment opportunities.