Identifying Factors to Indicate the Business Performance of Small Scale Industries: Evidence from Sri Lanka

Abstract

This paper was to identify underlying factors in a collected data set that represent to indicate to the performance of small scale industries from Sri Lanka. The analysis based on the owner/ managers who responded to a questionnaire survey conducted on sample of small scale industries in Vavuniya district of the Sri Lanka. Initially, exploratory factor analysis has generated five factor solutions. In order to confirm reliability of factor, Cronbach#x2019;s alpha was used and finally, five factors were extracted with high reliability and named: Customer Satisfaction with Managing Change, Growth at Business and Income Level, Growth in Profitability, Growth in Turnover, Growth in Number of Employees. However, it is recommended to test the overall validity (content/face/discriminant) of the factor structure and to carry on confirmatory factor analysis to confirm the obtained factor structure with the large set of data.