Determinants of profitability of the microenterprises led by women micro entrepreneurs: evidence from Mumbai slums

Abstract

The main objective of the paper is to determine the factors affecting the profitability of the microenterprises (MEs) in the slums of Mumbai. The study is based on a primary survey of 275 micro entrepreneurs (Mes) operating from four different slums of Mumbai. In this study, with the help of generalised ordered logistic regression we have tried to identify the factors affecting the profit per revenue ranking of the microenterprises. It has been observed that age of the micro entrepreneur, place of operation of the micro entrepreneur, family structure of the entrepreneur, reason for starting the business are the main factors affecting the profit ranking of the entrepreneur.