Impact of Network Formation on Entrepreneurial Performance and Growth: A Study of Selected Small Enterprises in Bangladesh

This study aims at evaluating the impact of networkformation variables and found to have positive impacton the economic performance and growth of the enterprises. The calucation of the weighted scores of networking statementsbrought some affirmative results to influence the performanceof the enterprises. Through multiple regressionand logistic regression models it is identified that networkformation variables like service receiving status, consultationof the family, other business dummy and attendancein fair have some significant positive impact both onthe growth and performance of the enterprises. In additionto above variables, from the set of enterprise characteristicsnatural logarithm of the market value of total assets andfrom the entrepreneurs’ characteristics set of variables,schooling year and squared value of the experience havebeen found to have significant positive impact. Finally, itis concluded in the study that to enhance the performanceand growth of the enterprises, government and policy rlatedorganizations need to consider important variables that havepositive impact in supplying the entrepreneurial resourcesespecially, developing the net-working relationship.