Abstract:
Small enterprises are increasingly playing a significant role in
Sri Lankan economy. But, only a few studies have been conducted on
motivations of individuals who are entering into entrepreneurial career, their
perceived success factors and problems of Sri Lankan entrepreneurs. This study
is based on the survey conducted with 76 entrepreneurs in Colombo district, Sri
Lanka, to understand their motivations for entrepreneurial career; perceived
success factors, and problems. The sample was selected from a list of
entrepreneurs who were following the Certificate Course on Entrepreneurship
at Open University of Sri Lanka. Results show that primary reasons for starting
a business are to increase income, to obtain personal freedom, and to ensure
job security. Factor analysis results revealed that owners of small and
medium-sized enterprises are driven more by income related rewards than
intrinsic rewards. Important business success variables include entrepreneur
related characteristics, product and finance issues, social connections and
human capital. Other critical success factors include management skills and
government connections. Lack of reliable employees is the most serious
problem faced by small entrepreneurs in Sri Lanka. In addition to that, weak
economy, inability to obtain long-term finance, and too much competition,
were also identified as important problems.
