IDENTIFYING FACTORS AFFECTING THE SUCCESS OF RURAL SELF-EMPLOYMENT: A STUDY BASED ON AMBALANTOTA DIVISIONAL SECRETARIAT IN SRI LANKA

Abstract

Creating self-employment opportunities is a way of improving the socio economic status of a country’s rural. Many rural inhabitants in Sri Lanka are self-employed. Successful self-employment contributes to increased production, income and eventually, the eradication of rural poverty. This study, therefore primarily aims to examine the determinants of the success of self-employed individuals such as their experience, training and education. A sample of 30 self-employed people living in the Ambalantota Divisional Secretariat in Hambantota was selected using a simple random sampling method and questionnaire and interviews were used to collect primary data. The study uses descriptive analysis and the Multiple Regression Model; and uses the success of self-employment as the dependent variable- self-employment success was measured by monthly income. The estimates show that overall regression model is significant at a 5% confidence level and that the overall goodness of fit is high. Moreover, the results indicate that there is a number of key significant factors such as education, training, family background and savings affecting the success of self-employment; which are statistically significant at a 5% confidence level. Technology tends to be significant at a 10% confidence level. The results, on the whole, indicate that the determinants of self-employed tend to be crucial for the success of self-employment.