Factors Influencing the Business Success of MSMEs in Sri Lanka: The Empirical Evidence from Kurunegala District
Madhushani. R. D. T. D.*, Athauda. A. M. T. P. and Wijeyewardena. H. M. S. L.
The Micro, Small and Medium Enterprise (MSME) sector plays a major role in Sri Lankan economy. It immensely contributes to regional development, employment generation and poverty alleviation and hence, this sector has been identified as the backbone of the Sri Lankan economy. The focus of this study was to identify the factors affecting the business success among MSMEs in Sri Lanka. Based on the survey of 150 entrepreneurs, the study discloses that marketing, technology, access to capital, government support and infrastructure affect the business success significantly and positively. The results of the ANOVA and t-test revealed that origin of enterprises and the education level significantly affected the business success. It further explained that the educational background did not give applicable skills for running the business. These findings suggest that, to be a successful MSME, the owner of the MSME should pay more attention to improve their marketing strategy, to acquire and demonstrate advanced sophisticated technology, and to get capital access. Other interested parties with development of MSMEs such as government agencies, business development services, and business supporting institutes should also be prepared to offer the assistance with relate to those aspects.
KEYWORDS: Business success, Micro enterprises, Small and medium enterprises