Hinhalagoda lekamalage pulsi kavindya sandeepani ariyarathna

2.2. SWOT Analysis 
Strengths 
Small and medium businesses (SME) play an important role in a country's financial 
sector and are regarded as the economy's backbone.In Sri Lanka, it is estimated that SMEs 
account for over 90% of all endeavors, 45 percent of all work, and make a significant 
contribution to the Gross Domestic Product (GDP).The government has identified this area as 
a push zone where more work should be done to raise the general public's expectations for 
everyday comforts.According to the Economic Census conducted by the Department of Census 
and Statistics (DCS) in 2013/14, there are 1.17 million foundations in the SME sector, 
employing about 2.25 million people.In light of the current globalization trend, the Sri Lankan 
government emphasizes the importance of establishing and strengthening the SME sector in 
order to successfully counteract aggressiveness on national and global levels. 
The SME sector is seen as a major driver of economic growth and progress.Government 
intervention is now essential to assist and fortify this area.The 2016 budget proposal has given 
a clear place to SME development, and it has been clearly spelled out as a governmental 
arrangement to create a favorable investment climate to enable entrepreneurs to bring all-
around competitive goods and administrations to the global market.According to the Economic 
Census of 2013, conducted by the Department of Census and Statistics, the nation's economy 
contains 1.017 million SME establishments.This segment employs around 2.25 million people. 
Weaknesses 
Issues arising from item and factor markets, as well as the administrative framework in 
which they operate, limit the growth and expansion of SMEs.The most frequently mentioned 
factors influencing SME development are high loan prices and lending institutions' emphasis 
on guarantee.Additional areas of weakness include item development, packaging, distribution, 
and deal development.Data and market access issues are also discussed.The ordinary business 
and administrative situation exacerbates these issues by increasing costs and creating 
unnecessary barriers.Current labor rules, it has been argued, prevent micro size companies from 
progressing to the scale of small scale ventures and then to medium scale ventures.These laws 
have also been shown to have a negative impact on effort and work ethic and productivity. 

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