Economic aspects of micro entrepreneurs in Ampara District of Sri Lanka: micro finance perspectives

Abstract

Development practitioner's identified micro finance is a constructive tool for the development process. Accordingly, development process starts from the bottom level of the people. Most of the microfinance institutions cannot mobilize funds on a large scale. Therefore, the major purpose of this study is to explore the opportunities for the self employment creation that will enable the poor people to uplift their standard of life and improve the performance of micro level industries in developing countries like Sri Lanka. Desired sample size of the study was 200 respondents. Percentage and Multiple regression models were used to test hypotheses. The study revealed that there were significant relationships between economic aspect and entrepreneur's development. Study revealed that independents variables in the regression model are jointly responsible for 52.90 percent (R2) variations in the effectiveness of microfinance in Sri Lanka. F value 38.572 shows that the model fitted is statistically significant at 5 percent level. Micro finance seems to be an instrument for the economic empowerment of micro finance entrepreneurs in the Ampara District of Sri Lanka.