Abstract:
Microfinance is becoming a very relevant
instrument to promote micro entrepreneurship in
developing economics. The aim of the research was to
investigate the role of microfinance to promote
entrepreneurial development in Sri Lanka. Hence the
study focused on for variables related to micro
entrepreneurship in Ampara District, Sri Lanka.
Desired sample size of the study was 200 respondents.
Convenience sample techniques were applied to collect
primary data from the microfinance beneficiaries by
using a well-designed and pre-tested interview
schedule. Multiple regression model and, Chi-squire
test were used to test hypotheses. Micro finance seems
to be an instrument for the development of micro
entrepreneurs. The F value (80.974) shows that the
model fitted is statistically at 5 percent level. The
researchers suggested how to overcome the problem of
micro finance sectors and make them economically
and socially viable. Several institutions were involved
in the micro credit activities in country in Sri Lanka.
This is not suitable to the policies of micro finance
programmes. So the government and institutions
related micro finance should take steps to make sure of
providing awareness training, insurance, savings and
credit connected with micro finance programmes.
Hence, this study might me immense value to
developing countries such as Sri Lanka to promote
micro businesses
