Hinhalagoda lekamalage pulsi kavindya sandeepani ariyarathna

H
1 
- The Current External Factors impacting on SMEs in Sri lanka will have a positive outcome 
H
2 
- The Current External Factors impacting on SMEs in Sri lanka will have a Negative outcome 
H
3 
- It is possible to analyze the past and present External factors affecting on SMEs to create 
a tool to predict and foretell the future outcome of a SME 
H
4
 - It is impossible to analyze the past and present External factors affecting on SMEs to create 
a tool to predict and foretell the future outcome of a SME 
The Limitations of the study were that although some information is available on the 
SMEs in Sri Lanka, there have been less data provided on SME within the last 2 yeanrs.This 
could be due to several reasons such as not updated frequesntly, impact of global pandemic 
towards the scholars’ work and ot many researches done on SME in the past years.However the 
found information allows to gain a clear and accurate idea of the SMEs in Sri Lanka and to 
predict how the future will be for the SMEs. Here, the target audience of the Study is the General 
Business market in Sri Lanka. The aim will be to identify if there is a correlation between SMEs 
in Sri Lanka and the economy of Sri Lanka.In this case, business organizations must consider 
about the impacts of social, political and legal background. SMEs are essential to fuelling the 
national economy. The revenue of the government of Sri Lanka is the main evidence to 
conclude the national economic growth. Hence the business organizations perform a major role 
in the national economy. 

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8 
1. Theoretical Part 
In the Theoretical Part of this study, the aim is to provide a comprehensive background 
into Small and Medium Enterprises and the external factors that govern SME, through 
exploring the various definitions related to the topic additionally the appropriate terminology 
related to the topic. Addressing each individual factor that affects SME both internally and 
externally will also facilitate the foundational purpose of reaching the research objective of the 
study. Small and mid-size businesses are credited with many technological processes and 
innovations (SMEs).Large corporations are less adaptable than SMEs because they prefer to 
concentrate on upgrading existing items in order to manufacture larger quantities and reap the 
benefits of dimensional economy. 
The evolution of Small and Medium Enterprises, its past and present needs,and 
opportunities will be assessed from its transformation from traditional approaches to modern 
day business approaches, in order to provide a clearer understanding of where the Sri Lankan 
market is positioned. After that the study will proceed onto analysing the future and promising 
opportunities of small and medium enterprises in the Sri Lankan market and use it as a 
benchmark to compare it to the SMEs in other notable countries. Using existing market 
research,it will be weighed up which external factors are beneficial or negative towards the 
SMEs. Furthermore,the further development of SMEs in to larger companies will also be 
assessed.