Abstract:
Seventy six entrepreneurs in Colombo district, Sri Lanka were surveyed
to determine their motivations for business ownership; the perceived success factors,
and their problems. Data was collected through personal interviews from the
list of entrepreneurs who were following certificate course on entrepreneurship at
Open University of Sri Lanka. Based on survey responses, the primary reasons for
starting a business are to increase income, to obtain personal freedom, and to secure
job security. According to the factor analysis, small and medium-sized enterprises
owners are driven more by income related rewards than intrinsic rewards. The most
important business success variables are entrepreneur related characteristics, product
and finance issues, social connections and human capital. Management skills and
government connections were also cited as critical success factors. The most serious
problem faced by small entrepreneurs in Sri Lanka is the unreliable employees. Other
important problems include weak economy, unable to obtain long term finance, and
too much competition.
