Impact of transferable experiences and external factors on the growth of microenterprises in India

Microenterprises in the developing world play a significant role in employment, income, and economic growth. However, research shows that microenterprises fail to grow because they are focused on survival rather than growth and lack an entrepreneurial mindset, adequate financing, a market, and a large customer base. This low-growth phenomenon is poorly documented in the literature, and no significant research has been undertaken. In this study, the author gathers evidence on the determinants of microenterprise growth from the literature, then conducts a quantitative study and a survey of microenterprise owners. The survey was conducted to understand microenterprise owners’ growth perspectives, growth factors, and their impact. The study emphasises the roles of network, personal capital, skills, and external factors such as role models, culture, and networks. More research is needed to identify significant determinants influencing microenterprise growth in the developing world, particularly in India.