Barriers to women entrepreneurs in smes: labour laws and market access in Sri Lanka

Abstract

Women entrepreneurs play a pivotal role in Sri Lanka’s Small and Medium Enterprise (SME) sector, but their growth and participation remain constrained by legal, institutional, and socio-cultural barriers. This paper examines how outdated labour laws and restricted market access shape operational decisions and growth prospects for women-led SMEs in Sri Lanka. The study adopts a mixed-methods research design (survey, semi-structured interviews, and comparative policy analysis) and draws on feminist jurisprudence and Sen’s capability approach as theoretical lenses. Pilot results (n=120–150) highlight limited maternity protection, lack of flexible work arrangements, and constrained access to formal credit, while thematic analysis reveals legal inertia, financial exclusion, and socio-cultural stereotypes as major impediments. Comparative evidence from the UK, Australia and New Zealand demonstrate how coordinated legal reform, inclusive finance, and institutional support can improve women’s entrepreneurial outcomes. The paper concludes with a policy model that integrates legal modernisation, financial instruments, institutional capacity-building and cultural change initiatives to create a gender-sensitive SME ecosystem.