A FRAMEWORK FOR THE SME DEVELOPMENT IN THE WESTERN PROVINCE OF SRI LANKA

The purpose of this research is to propose a framework for SME development in the Western Province of Sri Lanka. The study shows that the SMEs in developed countries such as Singapore, South Korea, Australia and Canada are able to perform very well due to the effective supporting schemes in those countries and such effective supporting schemes are not available in Sri Lanka. The study identifies many factors that affect the SME development other than the supporting schemes. Some of them are: ineffective transport system, corruption, inflation, unstable power supply, lack of management skills of the managers, lack of innovation, high interest rates, lack of linkages with the larger enterprises, lack of business networks, appointing unqualified and inexperienced people to management positions, lack of capital and lack of a central institution to manage SMEs like SPRING Singapore. The study proposes some measures to rectify the situation. Finally, it proposes a suitable framework for the SME development in the Western province of Sri Lanka. Article visualizations: