The impact of microfinance services on the growth of the micro enterprises in Sri Lanka (with special references to Homagama Region)
Shohani Upeksha Badullahewage, Dr. Dhammika P Withanage
The provision of microfinance service is used as development tool mostly in developing economies where microenterprises do not have access to other sources of financial assistance. The main objective of the study is to establish impact of micro finance services on the growth of microenterprises. The micro enterprises in Sri Lanka is the target population and 60 of them which have obtained the micro loans were drawn as sample based on the judgmental sampling method. The primary data were collected on face to face interview through structured questionnaire and the secondary data were collected literature survey. The paired sample t-test, multiple regression, chi-square test, gamma and Kendal tau-b tests were used as quantitative techniques and b descriptive statistics to achieve the expected objective. The findings of the study indicated that micro finance services have created positive impact on the income and productive growth of the micro enterprises. Majority agreed that the micro loan, insurance and advisory and training facilities were fair enough for the expected tasks, they were satisfied with financial assistance received and success of their business. So, the study concluded that the micro finance services created positive impact on the growth of the microenterprises in Sri Lanka.