Marketing challenges faced by small and medium enterprises (SME) in Ampara District Sri Lanka

Abstract

Small and medium scale Enterprises (SMEs) make up a large part of Sri Lanka's economy, accounting for 80% of all businesses. They act as stepping stones for large firms, particularly in developing nations such as Sri Lanka, and the majority of large enterprises began as SMEs. SMEs have emerged as a key role in terms of employment, income generation, poverty reduction, and regional development. Furthermore, they serve critical roles in the development of entrepreneurial skills and creativity, as well as the promotion of economic growth and wealth creation. Sri Lanka is predominantly an agricultural country, and the Ampara area is home to people of several ethnicities, including Sinhalese, Tamils, Muslims and Burghers. Ampara District has 20 Divisional Secretariats and a total population of 793,069 people (Statistical Handbook 2020), accounting for 3.6% of Sri Lanka's district population. Over 90% of the people in this district live in rural areas. This district is primarily comprised of agricultural sectors such as rice production, crop production, livestock, milk and egg production, meat production, handloom and fishing. The goal of this study was to identify marketing challenges confronting Ampara District Sri Lankan SMEs, hence a quantitative research design was used. A random sample of 256 small businesses has been selected from Ampara District Eastern Province of Sri Lanka. By overcoming the marketing obstacles of SMEs, a country's industrial output can be increased, the share of industrial output in GDP can be increased, and a country may eventually be able to maintain strong economic growth while rapidly industrializing.