Hinhalagoda lekamalage pulsi kavindya sandeepani ariyarathna

Conclusions and Proposals ..................................................................................................... 52
 
List of references ..................................................................................................................... 54
 
Appendix .................................................................................................................................. 57
 
 

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5 
Introduction 
Small and Medium Enterprises make up approximately 70% of the Work force in the 
entire world. By improving SMEs’ infrastrucure in the global economy, the lives of many 
individuals and communities can be improved, it can provide jobs for many and decrease 
unemployment. For this reason, SMEs are receiving prominent attention in the global 
economy.The ability of small firms to create job opportunities is a major attraction for the 
governments and they have also realised that creating gateways for more SMEs to flourish, will 
satisfy economic and social objectives such as expanding worker skills and alleviating pockets 
of local poverty. Boosting Women’s entrepreneurship is another attraction which will help to 
raise the female participation in the workforce as well as spur productivity.
SMEs are independent commercial entities.They are not part of a larger company.A 
subsidiary of a multinational, for example, does not qualify as an SME, no matter how small it 
is.Similarly, if a large company acquires an SME and it subsequently becomes a subsidiary,it 
ceases to be a small-to-medium enterprise.Most companies have SMEs among their clients or 
suppliers. 
The Object of this thesis is the Small and Medium Enterprises in Sri Lanka. The 
Subject of the thesis is the external factors that govern the outcome and the future of the Small 
and medium enterprises in Sri lanka. Although Sri Lanka is considered to be one of the 
developing country for the past decade, there are various factors that affected the Economical 
growth of the country specially towards the small and medium enterprises.Some factors have 
affected positively while some have affected negatively towards the continuity of the 
Businesses.It is Vital to investigate what external factors have benefitted the Enterprises and 
what should be done to develop the enterprises furthermore in order for them to grow and to 
actively contribute to the economy of the country.Various political decisions had led the 
country towards both good and bad situations when it comes to the Economy and the thirty 
years of war also had a major role in determining the future of the small and medium enterprises 
thus controling the economy of the entire country.The recent outburst of Covid-19 had also 
affected majorly for the small and medium enterprises and all these external factors will 
determine the future of the Enterprises as well. 
The Goal of this Thesis is to find the necessary path for the future well-being of the 
Small and medium enterprises in Sri Lanka, in the face of the External Factors. After closely 
studying the past and present external factors, it is crucial to predict the fluctuations in the next 

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6 
couple of years and suggest the best paths for the Entrepreneurs to follow, in order to success 
in their respective organizations. 
To successfully achive the Goal of this Thesis, the following tasks should be fulfilled. 
1) To analyse the definition of External Factors 
2) Identify the External factor-and-Effect relationship that determine the path of the 
enterprise’s future 
3) To Evaluate the local External factors and compare them with the Global External 
Factors 
4) To explore a methodological tool to predict the fluctuations in the economy and the 
behaviour of the Small and medium Enterprises 
5) To offer the researcher’s classification on the external factors that affect most to the 
small and medium enterprises
There are fairly large numbers of government organizations which provide a 
variety of assistance to small enterprises. Their assistance varies from formulating 
policies, strategies, and programs such as providing credit, training, technology, 
marketing sub-contracting, and management. In addition to the government 
organizations, there are a large number of NGOs and some private organizations 
involved in the promotion of the small business sector by providing various types of 
assistances 
The earliest attempts of market segmentation were supported demographics in 
the market of Sri Lankan. The research is to identify the exact external factors that are 
available from the early stages of businesses to contribute to the national economy of 
Sri Lanka,this involves weighing the ease of doing business as a new start up and 
extending to identifying the present corporate environment of a grown business for 
existing small and medium enterprises.
This aim can be fulfilled by completing an array of fundamental tasks. It is 
essential to clearly define the terminology related to External factors.It is important to 
get an understanding of how SMEs have evolved from traditional to modern day 
methods as it will provide a better outline as to how the opportunities are in Sri Lanka. 
Organization entails tasks and processes to develop and implement growth opportunities 
which comes virtually mechanically and does not require a lot of data search. Business’ 
planning uses a lot of factors to reach their target. Those factors include dimension that 
may be utilized in marketing.Companies will use these factors ever so delicately, that 
customers won’t even acknowledge it. 

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7 
The Hypothesis is assumption or prediction that can be arrived after observing a 
problem, which can be turned to be true or false at it first place but after the investigation and 
analyses only, everyone can come to conclusion whether the prediction is right or wrong. 
(Silverman, 2016).For this Study, the following hypotheses were taken in to account to be 
tested.