ABSTRACT
The small-scale sector, including informal units, has been an entrepreneurial catalyst of tremendous significance in our industrial economy during the last some decades. Both developed and developing countries have devised strategies for the promotion of entrepreneurship through small-firm dynamics. India is not an exception to this, as the entrepreneurial development of the country is strongly tied up with the small-firm sector. Kerala's situation is slightly different for the reason that an entrepreneurial culture is generally lacking among the people within the state. The small-scale sector plays a crucial role in the state for the development of the industrial sector in the midst of a high rate of failure among entrepreneurs. Several factors — sociological, psychological, cultural, etc., — explain the reasons for the success and failure of entrepreneurship in the state. The cultural aspect plays a significant role in the context of small firms, particularly in the state of Kerala.
