Business sustainability of small and medium scale enterprises : a case study based on Bottled Water Industry in Sri Lanka

Abstract

The main objective of this paper is identification of factors affecting development of bottled water industry as a Small and Medium Scale (SME) economic activity in Sri Lanka. Having the world best clean water sources, this industry' has been identified as one of the high potential industryr for foreign exchange earnings in Sri Lanka. The methodology employed is a structured questionnaire based on field survey of fifty five bottled water SMEs. Afield survey confirmed that the main operational challenges are related with finance, marketing, products and process technological problems, environmental, social, health, business management deficiencies and human resource related problems. The major growth obstacles are lack of business relationship and informational support, product and process technology/ issues and the business management deficiencies. The main policyr recommendations are developing training programs on business management, introducing information supports and awareness programs on latest development on product and process technologyr, provision of an appropriate regulatoryr and legislative framework for the industryBy identifying the core issues affecting the operation of bottled water industry, this l'esearch study will contribute to the understanding of ground situation of this subtle industry' in Sri Lankan context. The methodology/ employed and the policies derived can be used as guides to similar types of research in other countries as well. It is an exploratory? case study'.