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Analysis and assessment of motivation factors of small scale entrepreneurial firms is very important in the context of developing countries where unemployment is at high level. A case study is conducted in the case of fish hook producing small scale clustered firms in West Bengal, India. In this context, a comparative analysis is made of the ranking of various items of motivation as perceived by the respondents in the cluster, reliability of various items of motivation is judged by using Cronbach’s Alpha test and an index of motivation is developed on the basis of principal component technique to find the level of association between motivation index and firm performance level.
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