A study on microfinance as a tool in developing entrepreneurship special reference to Ampara district of Sri Lanka

Abstract

Microfinance is becoming a very relevant instrument to promote micro entrepreneurship in developing economics. The aim of the research was to investigate the role of microfinance to promote entrepreneurial development in Sri Lanka. Hence the study focused on for variables related to micro entrepreneurship in Ampara District, Sri Lanka. Desired sample size of the study was 200 respondents. Convenience sample techniques were applied to collect primary data from the microfinance beneficiaries by using a well-designed and pre-tested interview schedule. Multiple regression model and, Chi-squire test were used to test hypotheses. Micro finance seems to be an instrument for the development of micro entrepreneurs. The F value (80.974) shows that the model fitted is statistically at 5 percent level. The researchers suggested how to overcome the problem of micro finance sectors and make them economically and socially viable. Several institutions were involved in the micro credit activities in country in Sri Lanka. This is not suitable to the policies of micro finance programmes. So the government and institutions related micro finance should take steps to make sure of providing awareness training, insurance, savings and credit connected with micro finance programmes. Hence, this study might me immense value to developing countries such as Sri Lanka to promote micro businesses