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Demographic Profile of Micro, Small and Medium Entrepreneurs in South

Eastern Region -SER-of Sri Lanka

Conference Paper · July 2012

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Ismail, M. B. M. (2012), “Demographic Profile of Micro, Small and Medium Entrepreneurs in
South Eastern Region -SER- of Sri Lanka” Paper presented at International Research
Conference- 2012 (JUICE- 2012), University of Jaffna, Sri Lanka, Held on 20th & 21st July, 2012,
p.40.
Submitted full paper. But, published proceedings of abstract on the day of conference. Please
contact author for unpublished full paper via mbmismail@seu.ac.lk/mbmismail1974@gmail.com
or by 0094 77 69 444 77.

Demographic Profile of Micro, Small and Medium Entrepreneurs in South Eastern Region
-SER- of Sri Lanka

Ismail, M. B. M.1

Abstract

Kotler (1997) defines demographic variables as demographic characteristics such as age, gender,
family size, income, occupation, and so on. Demographic profile of entrepreneurs is the
demographic characteristics of micro, small and medium entrepreneurs who run
entrepreneurships in South Eastern Region. Objective of this research is to identify the
demographic profile of Micro, Small and Medium Entrepreneurs in South Eastern Region of Sri
Lanka. Population includes all Micro, Small and Medium Entrepreneurs -MSME- operating in
South Eastern Region. 121 entrepreneurs have been selected as sample size using convenience
sampling method. Data are presented and analyzed using Excel with a version of 2007. It is
found that there are 57, 54 and 10 Micro, Small and Medium Entrepreneurs who engage in
micro, small and medium enterprises. Majority of the entrepreneurs who fall in the age category
of 35 to 49 are young. Male entrepreneurs dominate female entrepreneurs. A majority of the
entrepreneurs have 3 to 4 children as their family size. Entrepreneurs hide their definite income
from their enterprises. Also, they occupy different roles in their business depending on the
situation. A large number of entrepreneurs have studied G. C. E. (O/ L) and G. C. E. (A/ L). It is
concluded that age, gender, family size, income, occupation and education have been identified
as demographic profile of Micro, Small and Medium Entrepreneurs in South Eastern Region of
Sri Lanka.

1 Senior Lecturer in Management, Department of Management, Faculty of Management and

Commerce, South Eastern University of Sri Lanka, Oluvil, # 32360, mbmismail@seu.ac.lk, 0094
77 69 444 77.
Key words: Demographic Profile, South Eastern Region.

Background: Demography refers to demographic characteristics of entrepreneurs who run

micro, small and medium enterprises. Simpson, Padmore, Taylor and Hughes (2006) studied

about full-scale testing of the role of marketing and its relevance in small and medium sized

enterprises (SMEs). Ruiz and Armario (2008) built on studies from the literature on market

orientation (MO) and internationalization. Calof and Viviers (1995) studied about

internationalization behavior of small and medium- sized South African Entreprises. These

previous researches focused on different contexts such as marketing & SMEs, market orientation

& internalization and internationalization and SME. There are lack or no researches that have

been made so far from the perspectives of demographic characteristics of entrepreneurs as far as

the references made by researcher. Different World countries define entrepreneurship differently.

Although there are differences in their definitions entrepreneurship can be found at micro or

small or medium level. This is true for Sri Lanka too. Entrepreneurs expect financial value from

enterprises. An entrepreneur is a person who undertakes adventurous ventures bearing high risks

and in turn expects high return. High risk and high return are not an easy task for entrepreneurs.

Entrepreneurs’ demographic profile can have influence on high risk and high return.

Demographic profile has been defined by several academics in relation to their field. Economist,
HR specialist, financial experts, Marketers and many more have agreed upon many of the

demographic characteristics. There are successful entrepreneurs in South Eastern Region who are

young and middle aged group with G. C. E. (O/ L) and G. C. E. (A/ L) qualifications. On this

ground, researcher believes that demographic characteristics are key for micro, small and

medium entrepreneurs. This motivated the researcher to carry out research on demographic

Profile of Micro, Small and Medium Entrepreneurs in South Eastern Region of Sri Lanka.

Research question and objective: Previous research findings and researcher’s argument

confirm that research question appears on two important concepts such as demography and

entrepreneurs. Thus, researcher wishes to identify the demographic profile of Micro, Small and

Medium Entrepreneurs in South Eastern Region of Sri Lanka. Researcher raises “what type of

demographic characteristics are found among Micro, Small and Medium Entrepreneurs in South

Eastern Region of Sri Lanka?” as a research question. In order to answer to this research

question, researcher sets “to identify demographic profile of Micro, Small and Medium

Entrepreneurs in South Eastern Region of Sri Lanka” as research objective.

Research design: Researcher designs explorative research to define research problem which is

qualitative in nature. Findings of previous researches and discussion with successful

entrepreneurs are used to define the problem. This qualitative research problem is quantified

using frequencies.

Methodology

Population & sample: Population includes all Micro, Small and Medium Entrepreneurs

operating in South Eastern Region. There is no accurate and updated data base for MSMEs in
this region. Thus, Researcher faced difficulties in identifying correct number of MSMEs. There

is no sampling frame. Researcher generated a list of MSMEs which was used as a sampling

frame. This sampling list was prepared by contacting Grama Servakas in South Eastern Region.

Of all Micro, Small and Medium Entrepreneurs, 121 entrepreneurs have been selected as sample.

This sample number is taken using convenient sampling method.

Data collection: Data were collected during 2011 using a standard simple questionnaire using

the variables proposed by Kotler (1997).

Data presentation and analysis: Data are presented and analyzed using Excel with a version of

2007.

Findings: There are 57 micro, 54 small and 10 medium entrepreneurs. All micro entrepreneurs

fall in the age category of 35 to 49. All small entrepreneurs fall in the age category of 50 to 64. 5

medium entrepreneurs fall between the age group of 20 to 34. The rest 5 medium entrepreneurs

fall in the age group of above 65. There are 83 male and 38 female entrepreneurs. 85

entrepreneurs have a family size of 3 to 4 children. 26 entrepreneurs have 1 to 2 children. Only

10 entrepreneurs have more than five children. In case of entrepreneurs’ income, Entrepreneurs

hide their definite income from their enterprises. Entrepreneurs occupy different roles in their

business establishment depending on the situation. There are 80 G. C. E. (O/ L) & G. C. E. (A/

L) qualified entrepreneurs. 36 entrepreneurs have secondary level education and below. Only 5

entrepreneurs are graduates.

Conclusions: Age, gender, family size, income, occupation and education have been identified

as demographic profile of Micro, Small and Medium Entrepreneurs in South Eastern Region of

Sri Lanka.
References
[1] Armario, J. M., Ruiz, D. M. and Armario, E. M. “Market orientation and internationalization
in small and medium-sized enterprises”, Journal of Management, Vol. 46, No. 4, pp. 485-
511, 2008.

[2] Calof, J. L. and Viviers, W. “Internationalization of Behaviour of Small- and Medium Sized
South African Enterprises”, Journal of Management, Vol. 33, No. pp. 71-80, 1995.

[3] Collinson, S. and Houlden, J. “Decision-making and market orientation in the

internationalization process of small and medium-sized enterprises”, Journal of Management,
Vol. 45, No. 4, pp. 413-436, 2005.

[4] Hvolby, H. and Thorstenson, A. “Indicators for performance measurement in small and
medium-sized enterprises”, Computer and information science, Vol. 215, pp. 1143-1147, 2001.

[5] Pangarkar, N. “Internationalization and performance of small- and medium-sized

enterprises”, Journal of Management, Vol. 43, No. 4, pp. 475-485, 2008.

[6] Rothwell, R. and Dodgson, M. “External linkages and innovation in small and medium-sized
enterprises, R & D Management”, Journal of Management, Vol. 21, No. 2, pp. 125–138,
1991.

[7] Shaffer, S. “Establishment Size by Sector and County-Level Economic Growth” Small
Business Economics, Vol. 26, No. 2, pp. 145-154, 2006.
[8] Sharma, M. K. Bhagwat, R. and Dangayach, G. S. “Performance measurement of information
systems in small and medium sized enterprises: a strategic perspective”, Vol. 19, No. 1, pp. 12-
24, 2008.

[9] Simpson, M. Padmore, J. Taylor, N. and Hughes, J. F. “Marketing in small and medium sized
enterprises”, Entrepreneurial Behaviour Research, Vol. 12, No. 6, pp. 361-387, 2006.

[10] Smeral, E. “The impact of globalization on small and medium enterprises:

new challenges for tourism policies in European countries”, Tourism
Management, Vol. 19, No. 4, pp. 371–380, 1998.
1111111111111111111111

Demographic Profile of Micro, Small and Medium Entrepreneurs in South Eastern Region
-SER- of Sri Lanka

Ismail, M. B. M.2

Abstract

Demography refers to demographic characteristics of entrepreneurs who run micro, small and
medium enterprises. Aim of this research is to develop a demographic profile using demographic
variables. Population includes all Micro, Small and Medium Entrepreneurs -MSME- operating in
South Eastern Region. Of all Micro, Small and Medium Entrepreneurs, 121 entrepreneurs have
been selected as sample. Data are presented and analyzed using Excel with a version of 2007.
Demographic variables are cascaded into age, gender, family size, income, occupation and
education. It can be concluded that there are 57, 54 and 10 Micro, Small and Medium
Entrepreneurs who engage in micro, small and medium enterprises. Majority of the entrepreneurs
who fall in the age category of 35 to 49 are young. Male entrepreneurs dominate female
entrepreneurs. A majority of the entrepreneurs have 3 to 4 children as their family size.
Entrepreneurs hide their definite income from their enterprises. Also, they occupy different roles
in their business depending on the situation. A large number of entrepreneurs have studied G. C.
E. (O/ L) and G. C. E. (A/ L).

Key words: Demographic profile, South Eastern Region.

2 Senior Lecturer in Management, Department of Management, Faculty of Management and

Commerce, South Eastern University of Sri Lanka, Oluvil, # 32360, mbmismail@seu.ac.lk, 0094
77 69 444 77.
Background: Demography refers to demographic characteristics of entrepreneurs who run

micro, small and medium enterprises. Simpson, Padmore, Taylor and Hughes (2006) studied

about full-scale testing of the role of marketing and its relevance in small and medium sized

enterprises (SMEs). Some findings suggested a positive link between a company's financial

performance and its approach to marketing within the model. Ruiz and Armario (2008) built on

studies from the literature on market orientation (MO) and internationalization. The results

indicated that a direct positive relationship exists between MO and a strategy of

internationalization. It can be argued that an entrepreneur can be at micro or small or medium

level. Entrepreneurs expect financial value from enterprises. Any entrepreneur is a person who

undertakes adventurous ventures bearing high risks and in turn expects high return. High risk and

high return are not an easy task for all entrepreneurs. Calof and Viviers (1995) studied about

internationalization behavior of small and medium- sized South African Entreprises.

Internationalization can be successful when a venture is domestically successful. Researcher

believes that demographic characteristics are key in determining financial performance and

internationalization of enterprises.

Research question and objective: Research question appears on two important concepts like

segmentation and micro, small & medium entrepreneurs. Researcher raises “Is there a

demographic profile” as a research question. Objective of this research is to develop a

demographic profile.
Research design: Researcher designs explorative research to define research problem which is

qualitative in nature. This qualitative research problem is quantified using frequencies.

Conclusive research is designed using descriptive statistics.

Methodology

Population & sample: Population includes all Micro, Small and Medium Entrepreneurs

operating in South Eastern Region. There is no accurate and updated data base for MSME in this

region. Researcher faced difficulties in identifying correct number of MSME. Researcher

generated a list of MSME to do research with the aid of data collected by contacting Grama

Servakas in South Eastern Region. Of all Micro, Small and Medium Entrepreneurs, 121

entrepreneurs have been selected as sample.

Data collection: Data were collected during 2011.

Data presentation and analysis: Data are presented and analyzed using Excel with a version of

2007.

Findings: Of the 57 micro, 54 small and 10 medium entrepreneurs, 57, 54 and 5 entrepreneurs

fall in the age category of 35 to 49, 50 to 64 and 20 to 34 & above 65. There are 83 male and 38

female entrepreneurs. 85 entrepreneurs have a family size of 3 to 4 children. 26 entrepreneurs

have 1 to 2 children. Only 10 entrepreneurs have more than five children. Entrepreneurs hide

their definite income from their enterprises. Also, they occupy different roles in their business

depending on the situation. There are 80 G. C. E. (O/ L) & G. C. E. (A/ L) educated

entrepreneurs. 36 entrepreneurs have studied secondary level education and below. Only 5

entrepreneurs have graduated.

Conclusions: Sample profile indicated that there are 57, 54 and 10 Micro, Small and Medium

Entrepreneurs who engage in micro, small and medium enterprises. Majority of the entrepreneurs

who fall in the age category of 35 to 49 are young. Male entrepreneurs dominate female

entrepreneurs. A majority of the entrepreneurs have 3 to 4 children. Entrepreneurs hide their

definite income from their enterprises. Also, they occupy different roles in their business

depending on the situation. A large number of entrepreneurs have studied G. C. E. (O/ L) & G. C.

E. (A/ L).

References
[1] Smeral, E. “The impact of globalization on small and medium enterprises: new challenges for
tourism policies in European countries”, Tourism Management, Vol. 19, No. 4, pp. 371–
380, 1998.

[2] Hvolby, H. and Thorstenson, A. “Indicators for performance measurement in small and
medium-sized enterprises”, Computer and information science, Vol. 215, pp. 1143-1147, 2001.
[3] Calof, J. L. and Viviers, W. “Internationalization of Behaviour of Small- and Medium Sized
South African Enterprises”, Journal of Management, Vol. 33, No. pp. 71-80, 1995.

[4] Armario, J. M., Ruiz, D. M. and Armario, E. M. “Market orientation and internationalization
in small and medium-sized enterprises”, Journal of Management, Vol. 46, No. 4, pp. 485-
511, 2008.

[5] Sharma, M. K. Bhagwat, R. and Dangayach, G. S. “Performance measurement of information

systems in small and medium sized enterprises: a strategic perspective”, Vol. 19, No. 1, pp. 12-
24, 2008.

6] Simpson, M. Padmore, J. Taylor, N. and Hughes, J. F. “Marketing in small and medium sized
enterprises”, Entrepreneurial Behaviour Research, Vol. 12, No. 6, pp. 361-387, 2006.

[7] Pangarkar, N. “Internationalization and performance of small- and medium-sized

enterprises”, Journal of Management, Vol. 43, No. 4, pp. 475-485, 2008.
 [8] Rothwell, R. and Dodgson, M. “External linkages and innovation in small and medium-sized
enterprises, R&D Management”, Journal of Management, Vol. 21, No. 2, pp. 125–138,
1991.
[9] Shaffer, S. “Establishment Size by Sector and County-Level Economic Growth” Small
Business Economics, Vol. 26, No. 2, pp. 145-154, 2006.
[10] Collinson, S. and Houlden, J. “Decision-making and market orientation in the
internationalization process of small and medium-sized enterprises”, Journal of Management,
Vol. 45, No. 4, pp. 413-436, 2005.

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