New direction for a Sri Lankan apparel venture: chasing a capitalist or cooperative dream

Abstract

Southern Garments, an apparel manufacturing start-up in Sri Lanka was launched by industry veteran Nuwan Perera with the dream of creating something of his own. The entrepreneurial zeal with which Nuwan started has begun to wane. Unplanned expansion and lack of focus have led to operational issues of efficiency and quality which hamper customer retention. Cash flow problems result in a situation whereby the entrepreneur and his enterprise are barely surviving on a month-to-month basis. Running out of options, the fledgling entrepreneur must revive his start-up. Nuwan sees four choices: focus as a subcontractor, eye the export market, compete in the domestic market, or transform his business model. The case study provides opportunity for student or practitioner to immerse oneself in the issues confronted by new ventures specifically in the context of an emerging market and learn how to make strategic choices that enable an enterprise to prosper and grow.