Impact Of Business Risks On The Performance- An Empirical Study Among Trading Entrepreneurs

Abstract

Entrepreneurship is the core driving force for the societal development and the economic growth through the performance of trading entrepreneurs. Despite their exceptional role, they were still tightly connected with risk and uncertainty and facing many challenges which acts as an obstacle for their growth. Taking this problem as a nucleus, this research investigated the prevailing market risks among 596 trading entrepreneurs who have their profession in the Western Region of Tamilnadu through cluster followed by simple random sampling technique and tools like structural equation modeling, correlation, regression, decision tree analysis and crammer’s V test were applied. While doing so, self efficacy and competitive risks were considered as a moderator between the business risks and the trading entrepreneur’s performance. The result revealed that there is no significant association found between the risk factors like location of the business, Government Support, Financial Assistance, self efficacy and the competitive risks and the business risks as well as with the performance but the location and the self efficacy were highlighted as a significant forerunner for the entrepreneur’s performance. Despite the impact, entrepreneurs were advised to formulate the clear business strategy to overcome the persisting risk for their long term success in the entrepreneurship.