AN INVESTIGATION OF OBSTACLES TO THE INTENTION OF YOUTH ENTREPRENEURSHIP IN SRI LANKA (SPECIAL REFERENCE TO THE COLOMBO DISTRICT)

Abstract

Entrepreneurship is crucial for economic development, especially in developing countries such as Sri Lanka, which face high youth unemployment. This study explores the obstacles hindering youth entrepreneurship intention in Sri Lanka, specifically within Colombo District. This study examined how factors such as limited capital, inadequate skills, lack of support, restricted market opportunities, and risk aversion influence youth entrepreneurial intentions. A quantitative research design was adopted, with primary data collected through structured questionnaires from a sample of 384 youth in Colombo District. Data analysis was conducted using SPSS software, employing descriptive statistics, correlation analysis, and regression analysis to assess the relationship between these challenges and youth entrepreneurship intention. The study hypothesized significant relationships between each identified obstacle and entrepreneurial intention among the youth. The findings revealed that all five independent variables significantly affected Colombo’s youth entrepreneurial intention. To overcome these barriers, the study suggests targeted interventions, such as improving access to capital, enhancing entrepreneurship education, and fostering a supportive entrepreneurial ecosystem. Policy recommendations include financial incentives, specialized business training, and market access programs tailored to youth entrepreneurs. Future research should examine the effects of these interventions across different regions of Sri Lanka in order to promote comprehensive national development.