Abstract

Small and Medium Enterprises (SMEs) occupy dominant positions in economy. SMEs bear special significance
for counties where density of population is very high because it offers huge employment opportunities and
income generations at low cost. Considering the importance this study has strived to identify those factors
contribute the success of SMEs using causal model. Data were collected from SMEs owners of the Khulna city,
divisional city of Bangladesh. A total 195 respondents were finally interviewed for the study. Several factors
were selected typically affect the success of SMEs from pervious literature. Important factors were identified
first using rotated components matrix later regression statistics was applied to find out which are statistically
significant. Business plan, channel of distribution, management skills and government support are identified
statistically significant in determining success of SMEs in Khulna City.

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