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The micro enterprise approach has been seen as one of the most acomplishable pathways to achive prospected
economic growth through innovation and creativity which in turn bring maiket development, productivity and
social cohesion in the global south. Enterprise growth is the nutshell of the suggested expansion. Informal
microenteiprises are ubiquitous in urban Sri Lanka serving as the major income, employment source, but record
no or least graduation. This paper aims at examining the determinants of micro enterprise growth in order to
support policies for encouraging growth, oriented micro entrepreneurship. Data collection was done from multi
stage cluster sampled 300 micro entrepreneurs under non experimental and survey research design using
questionnaire and interview instruments. Dichotomous dependent variable on growth was regressed on
prospected demographic, socioeconomic, firm and institutional independents by utilizing binary logistic model.
It was found that gender, favorable change in education, administrative issues, availability of credit, tradition
of parents’ occupation, previous employment, infrastructure availability and two psychological measures:
entrepreneurial self-efficacy, locus of control play a crucial role for positive enterprise growth while parent’s
occupation or previous employment have no predicting power over the growth performance. Policy implications
drawn from the findings of this study recommend a multipronged approach for improving micro
entrepreneurship in the sector.
