Article
Survival of the Smallest:
A Study of
Microenterprises in
Haryana, India
Surender Mor
1
, Sonu Madan
2
, Geoffrey R. Archer
3
and Arvind Ashta
4
Abstract
The present study investigates the sustainability of microenterprises using
primary data on 222 microenterprises in the informal small business segment of
India. We identified relevant factors inducing entrepreneurs to sustain their
business despite facing challenges emerging in the business world from time to
time. The findings indicate that microenterprises with higher initial capital invest-
ment and those run by more experienced entrepreneurs have more chances for
their long-run survival. The findings further indicate that the attainment of higher
education is unrelated to long-term survival in the microbusiness world, perhaps
because it opens more options of livelihood leading to exploration and experi-
mentation of other areas of work engagement. The probability of long-run
survival is higher in manufacturing microenterprises as compared to trading and
services, likely because manufacturing experiences less volatility in this penurious
context. Finally, microenterprises managed by males have better chances of long-
run sustainability than female-operated microbusinesses.
Keywords
Microbusiness, informal business sector, micro-entrepreneurs, sustainability,
multinomial logistic regression, education versus training, women’s enterprise
Millennial Asia
1–25
© 2020 Association of
Asia Scholars
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DOI: 10.1177/0976399619900609
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1
Department of Economics, BPS Women University, Khanpur Kalan, Haryana, India.
2
Department of Economics, Indira Gandhi University, Meerpur, Rewari, Haryana, India.
3
Eric C. Douglass Centre for Entrepreneurial Studies, Royal Roads University, Victoria, Canada.
4
Accounting, Finance and Law Department, CEREN, EA 7477, Burgundy School of Business—
Université Bourgogne Franche-Comté, Dijon, France.
Corresponding author:
Surender Mor, Department of Economics, BPS Women University, Khanpur Kalan, Haryana 131305,
India.
E-mail: Surendermor71@gmail.com