Empowering Entrepreneurs in a Stable Sri Lanka: A Vision for Growth
View(s):A strategic window has opened for Sri Lanka. Now we can see many initiatives for policy changes from different perspectives. President Anura Kumara Dissanayake’s National People’s Power (NPP) coalition scored a two-thirds majority in parliament, with 159 seats. Political stability is considered one of the important prerequisites for any country. Investors are concerned about the risk factors. If you invest money in different territories, political stability with sound and precise decision-making is always at the top of the priority list. According to Khan (2020) “sudden change at the government level is bound to cause a shift in economic policies, something every investor or businessperson fears. Business on its own is a risky venture, no one wants the added burden of uncertain policies, especially for long-term projects with a lengthier development period. The investors are not sure whether the new policies would benefit their business, be forced to pay more taxes, or if uncertainty leads to a spike in property costs.
This drives away the foreign investment desperately needed in this globalised world for developing economies in particular”. It is clear that investors do not like uncertainty. For a developing country, Foreign Direct Investment (FDI) is one of the necessary factors for a vibrant economy. According to Padma Mallampally and Karl P. Sauvant in an article written for Finance and Development Quarterly magazine for the International Monetary Fund “FDI has become an important source of private external finance for developing countries. It is different from other major types of external private capital flows in that it is motivated largely by the investors’ long-term prospects for making profits in production activities that they directly control”. Many researchers have done studies on the relationship between political stability and FDI. If you do have an unstable political scenario then you will be in trouble in the long run. Now the equation in Sri Lanka is different and So the time has come for Sri Lanka to have different thinking.
Role of SME
Small and medium-sized enterprises(SMEs) play a huge role in the development of any country. The contribution of small entrepreneurs to the economy and the growth of the economy cannot be ignored. For example, in the United States, about 70 percent of new job creation is done by small businesses and it should be noted that small businesses in that country contribute 13 times as many patents to the world than other businesses. This is the same in Sri Lanka as well. The SME sector in Sri Lanka contributes to 48% of total employment and 52% of the gross domestic product of the country. In this context, it is important to discuss the concept of “Avocation” which is defined as “a hobby or any other activity taken up in addition to one’s regular work; it may especially refer to something that is a person’s “true” passion or interest”.At the moment we can witness many young people in Sri Lanka involving activities with their true passion. Dulanjana Vithanage, a graduate of the Department of Marketing Management at the University of Sri Jayewardenepura has started to promote Jakfruit in Sri Lanka(The jack tree is sometimes called “bath gaha” (rice tree) by the Sinhalese). Now he is an As entrepreneur. As an entrepreneur, Dulanjana has made a variety of products including Kosposha and jackfruit noodles and also now he has expanded his business with different diversification strategies.
Conclusion
Like Dulanjana there are many young Sri Lankans who are currently engaging with many businesses. But still, we could not see that recognition for Sri Lankan entrepreneurs from certain sectors of society. Whatever the profession needs to be accepted and recognised by the country and recognised by the society. Traditionally in Sri Lanka, you have given more priority to certain professionals. But the time has come to make a strategic move from this. Also there should be a policy-level change in education in the country and embedded to system highlight how to value all professions with equity and respect. Specially this needs to be a discussion point in the government sector which we have seen still many places do not give proper assistance to entrepreneurs. There is a need for the country to have a national-level plan to motivate and drive our entrepreneurs and they can do wonders for the country. Hence there is a prerequisite for all of us to understand the situation and provide the best for the country.
- “Ask not what your country can do for you, ask what you can do for your country.”
- - John F. Kennedy’s Inaugural Address, January 20, 1961
(The writer is a Professor in Management Studies Open University of Sri Lanka and You can reach Professor Abeysekera on nalinabeysekera@gmail.com.)
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