A FRAMEWORK FOR THE SME DEVELOPMENT IN THE WESTERN PROVINCE OF SRI LANKA
DOI:
https://doi.org/10.46827/ejmms.v6i4.1147Λέξεις-κλειδιά:
small and medium enterprises, SME development, framework, SME capabilities, SME links, owners’ attitudes and capacity, government policies, socio-economic environmentΠερίληψη
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:
Αναφορές
Abdulla, M.A. & Baker, M.I.B., 2000. Small and medium Enterprises(SMEs): Some Pertinent issues. In Small and Medium enterprises in Asian Pacific countries. 1st ed. New York: Nova Science Publishers, Inc. pp.6-10.
Abor, J. & Quartey, P., 2010. Issues in SME Development in Ghana and South Africa. International Research Journal of Finance and Economics, (39), pp.218-28.
Ahamed, N.H. & Pi-Shen, S., 2009. Dissecting Behaviours Associated with Business Failure: A Qualitative Study of SME Owners in Malaysia and Australia. Asian Social Science, September. pp.98-104.
Alegre, J., Sengupta, K. & Lapiedra, R., 2011. Knowledge management and. International Small Business Journal, 31(4), p.464.
Arnold, E. & Kuusisto, J., 2002. Government innovation support. Technology review. Helsinki: TEKES National Technology Agency (TEKES).
Asian Development bank, 2016. SME Development- Government Procurement and Inclusive Growth. [Online] Available at: https://www.adb.org/sites/default/files/publication/30070/sme-development.pdf [Accessed 10 January 2016].
Australia Business Financing Centre, 2017 a. Low-Interest or No-Interest Loans. [Online] Available at: http://www.australiangovernmentgrants.org/low-interest-no-interest-loans.php [Accessed 6 April 2017].
Appiah-Adu, K. & Singh, S., 1998. Customer orientation and performance: a study of SMEs. Journal of Management History (Archive) merged into Management Decision, Vol. 36 (6), pp.385 - 394.
Blessing, L.T.M. & Chakrabarti, A., 2009. Pilot study. In DRM, A Design Research Methodology. 1st ed. UK: Springer Verks London Ltd. pp.112-14.
Business directory.com, 2016. Business Incubator. [Online] Business directory.com Available at: http://www.businessdictionary.com/definition/business-incubator.html [Accessed 4 April 2016].
Chittithaworn, C., Islam, M.A., Keawchana, T. & Yusuf, D.H.M., 2011. Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand. Asian Social Science, 7(5), pp.180-90.
Dagogo, D.W. & Ollor, W.G., 2009. The Effect of Venture Capital Financing on The Economic Value-Added Profile of Nigerian Smes. African Journal of Accounting, Economics, Finance and Banking Research, 5(5), pp.37-51.
Dasanayaka, S.W.S.B., 2011. Global Challenges for SMEs in Sri Lanka and Pakistan in Comparative Perspectives. IBA Business Review, Vol 6(1), pp.61-80.
Eickelpasch, A., 2012. Innovation Policy for SMEs in Germany - Actual Trends. Official document. Seoul: Korea-Germany National Competitiveness Forum 2012 DIW Berlin — German Institute for Economic Research.
European Commision, 2007. Supporting SME participation in Research Framework Programmes. Research article. Luxemburg: Office for Official Pulications of the European Communities European Commision.
European Commision, 2014. Competitiveness and innovative Framework Programme (CIP). [Online] Available at: http://ec.europa.eu/cip/index_en.htm [Accessed 10 July 2016].
European union, 2017. Access to risk finance. [Online] European union Available at: https://ec.europa.eu/programmes/horizon2020/en/h2020-section/access-risk-finance [Accessed 9 Augustus 2017].
Export Development Board , 2014. Fiscal Incentives Available to Sri Lankan Exporters [ NON- BOI]. [Online] Export Development Board ( EDB) Available at: http://www.srilankabusiness.com/pdf/fiscalincentives_for_non_boi_readmore.pdf [Accessed 10 Augustus 2017].
Gunapala, N., 2011. Enhancing The Capacity of Banks to Shaping the Development of Smes. In 23rd Anniversary Convention. Colombo, 2011. Association of Professional Bankers Sri Lanka.
International Finance Corporation, 2007. Results of the Banking survey of the SME Market in Sri Lanka 2006-2007. World Bank.
Joseph, R., 2014. Challenges and issues faced by the local SME sector. Daily News, 21 January. p.13.
Kapurubandara, M. and Lawson, R., 2006. Barriers to adoption of ICT and e-commerce with SMEs in developing Countries: An Exploratory study in Sri Lanka. In Collaborative Electronic Commerce Technology and Research. Adelaide, S. Aust, 2006. Collector Group.
Kapurubandara, M. & lawson, R., 2008. Avaialbility of E-commerce support for SMEs in Developing Countries. The international Journal on Advances in ICT for Emerging regions, 1(1), pp.3-11.
Karunaratne, K., 2013. Application of Management Accounting Practices and Operating Efficiency in SMEs in Sri Lanka. In Proceedings of World Business and Social Science Research Conference,ISBN:978-1-922069-33-7. Bangkok, Thailand, 2013.
Liang, T.W., 2007. SME Development in Singapore of Entrepreneurship Infrastructure and SME Strategies. In The Policy Environment for the Development of SMEs. 1st ed. Singapore: Singapore Management University. pp.191-225.
Mazani, M. & Faloki, O., 2011. The Effectiveness of Business Development Services Providers (BDS) in Improving Access to Debt Finance by Start-Up SMEs in South Africa. International Journal of Economics and Finance , 3(4), pp.208-16.
Miller, N.J., Besse, T. & Malshe, A., 2007. Strategic Networking among Small Businesses in Small US Communities. International Small Business Journal, 25(6), p.633.
Mustar, P. & Laredo, P., n.d. Innovation and Research Policy in France˚(1980-2000). [Online] Available at: http://ifris.org/wp-content/blogs.dir/1/files/2014/10/44.-French-RIP-2002.pdf [Accessed 10 February 2017].
Nanayakara, G., 2011. Enhancing the capacity of banks to shaping development of Sri Lanka. In 23rd Anniversary convention-2011. Colombo, Sri Lanka, 2011. Association of professional bankers, Sri Lanka.
Nandan, R., 2010. Management Accounting Needs of SMEs and Role of Professional Accountants: A Renewed the Research Agenda. JAMAR, 8(1), pp.65-78.
NEDA, 2009. National Enterprise Policy. [Online] http://www.neda.lk/?page_id=132 [Accessed 22 June 2016].
NEDA, 2015. SME white papers. [Online] http://www.neda.lk/?page_id=138 [Accessed 24 December 2016].
Neupert, K.E., Baughn, C. & Dao, T.T., 2006. SME exporting challenges in transitional and developed economies. Journal of Small Business and Enterprise Development, 13(4), pp.535-45.
OECD, 2010. Canada. In SMEs, Entrepreneurship and Innovation. 1st ed. Italy: OECD. Ch. 2. p.54.
OECD, 2004. Promoting entrepreneurship and innovative SMEs in a global economy towards a more responsible and inclusive globalisation. In 2nd OECD Ministerial conference on SMEs. Istanbul, Turkey, 2004. OECD.
Olander, H., Pia, H.-L. & Mähönen, J., 2009. What’s small size got to do with it? Protection of intellectual assets in SMEs. International Journal of Innovation Management , 13(3), pp.349-70.
Olatokun, W. & Mogotesi, K., 2010. e-Commerce Technology Adoption by SMEs in Botswana. International Journal of Emerging Technologies and Society, 8(1), pp.42-56.
Perera, M., 2015. Growth prospects in the food processing industry in Sri Lanka. Daily FT, Daily Mirror, 18 February. p.13.
Pushpakumari, M.D. & Watanabe, T., 2006. Do strategies improve SME Performance? An Empirical Analysis of Japan and Sri Lanka. Meijo Asian Research Journal, 1(1), pp.61-75.
Rafi, A. & Murtaza, M., 2008. Use and Impact of ICT on SMEs in Oman. Electronic Journal Information Systems Evaluation, 11(3), pp.125-38.
Sanderatne, N., 2011. Export growth inadequate: Focus on Exports. Sunday Times, 23 October. Avaiable in Sunday Times Economic Analysis.
Schoonjans, B. & Cauwenberge, P.V., 2013. Formal Business networking and Business growth. Small Business Economics, 41(1), pp.169-81.
SECO, 2016. State Secretariat for Economic Affairs (SECO). [Online] https://www.seco.admin.ch [Accessed 12 July 2016].
Sekeran, U., 2003 f. Handling Blank Responses. In Research Methods for business-A Skill building Approach. 4th ed. New York: John Wiley & Sons. pp.302-03.
Smallbone, D., Leig, R. & David, N., 1995. The characteristics and Strategies of high growth SMEs. International Journal of Entrepreneurial Behavior & Research, 1(3), pp.44-62.
Smallbone, D. & Welter, F., 2001. Role of government in SME development in transition economies. International Small Business Journal, 19(4), pp.63-67.
SMBA, 2014 a. Act on The Promotion of Technology Innovation of Small and Medium Enterprises. [Online] http://www.smba.go.kr
SMBA, 2016. Small and Medium Business Administration. [Online] http://www.smba.go.kr [Accessed 12 July 2016].
SPRING Singapore, 2014 o. Capability Development Grant (CDG) at a glance. [Online] SPRING Singapore Available at: https://www.spring.gov.sg/Growing-Business/Grant/Pages/capability-development-grant.aspx [Accessed 28 April 2016].
SPRING Singapore, 2014 p. Loan Insurance Scheme (LIS) and LIS +. [Online] SPRING Singapore Available at: https://www.spring.gov.sg/Growing-Business/Loan/Pages/loan-insurance-scheme.aspx [Accessed 2 April 2016].
SPRING Singapore, 2015. Building Partnerships, Enabling Growth. [Online] SPRING Singapore Available at: https://www.spring.gov.sg/About-Us/Documents/FV_ar2014_2015/SPRING_Singapore_Annual_Report_2014_15.pdf [Accessed 24 December 2015].
Stefan, L., 2011 b. Policies in support of Hig-h Growth Innovative Enterprises. Global Review of Innovation Policy Studies. Bonn, Germany: INNO-Grips European Commision.
Storey, D.J., 2008. Entrepreneurship and SME policy. In World entrepreneur forum. Warwick,UK, 2008. Warwick Business School.
Tambunnan, T., 2007. Trade and Investment Liberalization Effects on SME Development: A literature Review and a Case Study of Indonesia. In Asia-Pacific Research and Training Network on Trade Consultative Meeting on Trade and Investment Policycoordination. Indonesia, 2007. RTNet.
Teece, D.J., 2010. Business Models, Business Strategy an Innovation. Long range planning, 43, pp.172-94.
UNCTAD Secretariate, 2005. How to build and effective policy framework for SMEs: a developing countries perspective. In International Conference on reforming the Business Environment. Cairo, Egypt, 2005.
Welter, F., 2001. Who wants to grow? Growth intentions and growth profiles of (nascent) enterprises in Germany. In 2001 Babson College-Kauffman Foundation Entrepreneurship Research Conference. Jonkoping, 2001. Rhine-Westphalia Institute for Economic Research (RWI).
Wijewardena, H. & De Zoysa, A., 2005. A factor analytic study of the determinants of success in manufacturing SMEs. In 35th EISB Conference-Sustaining the Entrepreneurial Spirit Over Time. Wollongong, 2005. University of Wollongong.
