Identification of barriers for development of the Sri Lankan small and medium scale furniture and wooden products manufacturing enterprises, a case study based on the Moratuwa area

Abstract

irrespective of the stage of economic development, small and medium enterprises (SME~) constitute and continue to be a main source 0/ growth of a nation. Sri Lanka is no exception to this phenomenon. However, it is a paradox that a large number of SMEs in Sri Lanka are struggling to survive in to days competitive environment. Absence of any networking and cooperation among the SMEs and lack of linkages with large scale industries have aggravated these problems. This study endeavors to ascertain the main issues faced by the Sri Lankan SMEs with special emphasis on the furniture and wooden sector. The study was conducted in the Moratuwa area which is a main hub of the furniture and wooden products manufacturing sector in the country. The study reveals that the SMEs are facing various obstacles in developing their business. These issues fall in the domains of financial management, human resources, product and process technology management, business regulations, intense competition from cheap imports, lack of infrastructure and so 011. In spite of various policy initiatives, concessions and incentives offered by successive Sri Lankan governments and the assistance [rom various donor agencies, SM1:,·.\·need further assistance to grow. The study concludes with recommendations II! overcome these obstacles to enable the 8MEs to develop their full potentials.