Creating a conducive environment for SMEs in Sri Lanka

Abstract

DR. RAMIN COOPER MAYSAMIandDR. VALERIE PRISCILLA GOBYNanyang Business SchoolNanyang Technological UniversitySingaporeABSTRACTSingapore is a strong player in the fast developing area of Southeast Asia. It enjoys ahighly trained workforce and access to the latest in technology. Many of its strongpoints, however, act as deterrents to the entrepreneurial spirit. These include itsallegedly creativity-stifling education system, availability of good job opportunities,competition from MNCs and GLCs, and certain government assistance policies.However, the government is aware of the need to encourage effective and creativebusiness development and has come up with many strategies. These include trainingprogrammes, financial assistance, and advisory channels. Technological advanceswhich facilitate overseas contacts and operations and which reduce the need for labourencourage the entrepreneurial spirit.INTROCUCTIONSingapore is a thriving industrial nation, one of the five “Asian tigers”, yet its continuedprosperity is largely dependent on its ability to develop new businesses and businessideas--“In the rising tide, there are very few ship wrecks,” is how Singapore SeniorMinister, Lee Kuan Yew puts it. Citing successful businessmen as role models for theyounger Singaporeans, he realized it might take some time for the population to changetheir mindset from one valuing job security to another willing to take risk for largeprofits.In this article, we first try to identify factors and challenges affecting entrepreneurshipin Singapore. We survey the literature to identify such factors to include thedemographics, social and cultural values, the economic and technical environment, aswell as various government policies. Next, we review various strategies to overcomesuch challenges and ways to promote entrepreneurship countrywide.