Measuring the Success of SMES in Bangladesh

Abstract

This study offers an assessment of the success rates of Small and Medium-sized Enterprises (SMEs) in Bangladesh. The research utilizes a mixed-method approach, integrating qualitative expert interviews with a quantitative analysis of 108 business owners through the Lussier Model. The study defines success as reaching the average monthly revenue for the industry. A SME in Dhaka made an average of 360,000 BDT per month, and most successful businesses made more than 400,000 BDT while keeping their profit margins between 10% to 12%. Result shows that there are a number of important factors that affect how long a business lasts and how fast it grows. Statistically, working in big cities like Dhaka greatly increases one’s chances of success because the infrastructure is better and one can reach more customers. The study also shows that partnership-based models work better than sole proprietorships, probably because they have more capital and a wider range of skills. Entrepreneurs aged 26 to 40 with college degrees had higher success rates, as did those who valued professional advice and keeping detailed financial records. It's interesting to note that factors like the initial amount of capital or the parents' business experience were not found to significantly affect success. However, the study also reveals that business owners from ethnic or religious minority groups have much lower success rates, which may indicate structural obstacles.

Key words: Capital, Entrepreneurial Capability, Professional Advisors, Record Keeping, Young Entrepreneurs

DOI: 10.7176/EJBM/18-5-02

Publication date: May 30^th 2026