Abstract

Small and medium enterprises (SMEs) play a vital role in the economies of both developed and developing countries, representing well over 90 per cent of all manufacturing enterprises in the world.  Nevertheless, the folklore is that some of these enterprises collapse within a few years of their start up. Of those operating, some have grown rapidly, while others lagged behind or grew slowly.  Therefore, it is important to identify the causes of failure as well as the factors contributing to the success or growth of these enterprises. Furthermore, the causes of failure and factors of success may vary from country to country, depending on their economic, geographical and cultural differences.  Therefore, empirical investigation into these aspects of SMEs in different countries is important. The findings of this research will be useful to economic development planners as well as to individual entrepreneurs. This paper attempts to analyse the main factors that are perceived to have contributed to the progress or success of these enterprises. The analysis will be based on the perceptions of owner/managers who responded to a questionnaire survey conducted on a sample of manufacturing enterprises in Delhi, Ghaziabad and Greater Noida. The statistical technique of factor analysis will be use for analysing the data. The results may indicate a set of identifiable factors that have positive and significant impact on the success of the sample firms. These factors will be ranked in their order of importance for the success of SMEs.

Key words: SMEs, Developed and Developing Countries, Economic Development Planners