Factors influence on growth of small and medium enterprises (SMEs) in Sri Lanka

Abstract

The majority of economies, especially those in emerging countries, rely on small and medium-sized businesses (SMEs). Small and medium-sized enterprises (SMEs) make for the vast majority of firms globally, and they play a significant role in employment generation and global economic growth. SMEs that are more forward-thinking generate process and product technologies that push the technological envelope. Countries in South Asia are already coping with rising commodity prices, supply constraints, and financial sector problems. The rise of SMEs in Sri Lanka is compared with the growth of Singapore, a prosperous country of Asia, in this study. The paper then examines empirical studies to figure out the country's main valuable contribution and difficulties. The article's main takeaway is the multitude of obstacles that Sri Lanka faces, counting a lack of adequate and timely finance, capital, experience ,appropriate advanced technologies, poor production capabilities, restrictions on industrialization and expansion, an inability of highly skilled workforce at an affordable rate, and following up with numerous government entities to resolve issues. According to the study, Singapore has a world-class tele-communications network, transportation, infrastructures and technology, which has been contributed country’s reputation as an attractive location for Small and Medium Enterprises. Furthermore, substantial financial assistance, consulting services and training are essential for making the surroundings more efficacious. Small and Medium Enterprises of SMEs in Sri Lanka suffer the same issues as their counterparts in other countries in Asia. The study's objective is to highlight the difficulties and give a few recommendations for building a viable structure for SMEs in Sri Lanka.