SL’s banking system not geared for entrepreneurship
While finance is one of the key challenges a start-up and an aspiring entrepreneur face in this day and age, it is the least encouraged aspect of the banking system in Sri Lanka. Value of the assets and how the balance sheet looks like is what Sri Lanka’s banks are forced to look at, says Peter D’ Almeida, Founder and former CEO of N’able (Pvt) Ltd.
He was highlighting the vital role of a mentor at the launch of the YouLead online mentoring platform held at the Taj Samudra Hotel in Colombo on Wednesday.
He said, “Our banking system is not geared towards encouraging entrepreneurship in Sri Lanka. They look for the company assets for security purposes and the balance sheets for evaluation criteria.” Even during the pandemic, it was Sri Lankan banks that made enough and more profits as much as triple the amount they made before the pandemic, he added.
On the sidelines of the event, Mr.D’ Almeida told the Business Times that two development banks were launched in Sri Lanka in the early 90’s purely for the purpose of encouraging start-ups and SMEs where a lot of funding came from abroad. Later both the banks were converted to commercial banks which are still functioning under the name of a development bank today. If those banks performed as development banks, funding wouldn’t have been an issue for start-ups and SMEs in Sri Lanka, he noted.
Quoting the godfather of entrepreneurship, Professor Howard Stevenson, Mr. D’ Almeida said, “According to Stevenson, entrepreneurship is the pursuit of opportunity beyond resources controlled. Entrepreneurs will always look at opportunities, tell a story to their employees and customers encouraging them. They build a team who can take ideas forward, inspire other people and how they could be unique from other players.”
USAID launched a free online mentoring platform in all three languages to connect emerging entrepreneurs across Sri Lanka with more than 100 experienced business experts through www.yes.youlead.lk. The platform helps entrepreneurs navigate unprecedented challenges and support the long term success of their businesses.
YouLead is funded through an US$ 18 million, seven year grant from the US and implemented by the International Executive Service Corps to improve vocational education and training, link youth to productive careers and strengthen entrepreneurship in Sri Lanka.
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