Importance Of Entrepreneurship In Sri Lanka

1. Introduction

An entrepreneur is one person (innovator) who always searches for change, responds, as well as exploits it as an opportunity. Entrepreneurship is a process of identifying and begging a business firm, sourcing and organizing the required resources and taking both the risks and rewards connected with the firm. Also and other way we can express entrepreneurship simply as the process of introducing new products/services or methods which are not in use currently. Entrepreneurs are the people with the outlook of business and it is a combination of business wisdom, innovation and determination.

Entrepreneurs are rare pressure of leaders and compounds for economic change. They are searching for changing and respond to it. They consider

With the available resources there are lots of opportunities to develop from very small level to high class businesses. In early times there was no attention on entrepreneurship in Sri Lanka since there was no government interaction and people had no deep knowledge this subject.

Small and Medium Enterprises (SMEs) are of vital importance to the socio-economic growth of a country as they contribute to generation of employement, generation of income and poverty mitigation. But in past three decade, the experienced civil war has hampered brutally for socio economic growth in Sri Lanka and it has pulled the country from moving forward.

Inability of the North and East to contribute to the gross production caused losing massive amount of income. At the same time it has caused to collapse agriculture industry and fisheries and livestock production were heavily affected. Foreign Direct Investment were impeded and in the world Sri Lanka were branded as unsafely country to travel. It's a blow to the development of tourism

He held that there were four stages of entrepreneurial growth, viz., entry into manufacturing, finding the market, establishment and expansion of the firm. He observed that family and caste backgrounds of the people were more effective than any other factor such as need for achievement, motivation and assistance from Government agencies for entry into manufacturing. He opined that the family and caste backgrounds played a vital role even in expansion of the firm. Uma and Rao (1987) examined the success of entrepreneurs in relations to their age, education, caste, occupational background, and previous experience, type of family and location of units. They reported that entrepreneurial skill did not spring up from the pedestal of education, occupational background or caste; nor did it depend on age or previous experience to attain success in an industrial activity. They found that even the sons of agriculturists and servicemen were equally successful in running the industrial units. Islam, Mamun, and Jahiruddin (1999) in their article entitled, "Success Factors of Small Farm Based Plant Nursery Entrepreneurs in Bangladesh”, indicated that critical factors for the small entrepreneurs of Bangladesh like, risk taking, flexible persistent action, achievement motivation, self-confidence, knowledge of the business are responsible for the success of