Abstract:
This study investigates the factors contributing to the failure of women-owned small
and medium enterprises (SMEs) in the Kurunegala district of Sri Lanka. Despite the
critical role of women in economic development, their participation in
entrepreneurship remains disproportionately low. The study examines four key
factors, namely lack of access to finance and capital, insufficient social and cultural
support, limited education and training, and legal and administrative constraints. A
stratified random sample of 357 women entrepreneurs engaged in six main SME
sectors (custom tailoring, retail trade, flower cultivation and garden decoration,
mushroom cultivation, dairy farming, and beauty services) was surveyed using a
structured questionnaire. Data were analysed using descriptive statistics, correlation,
and multiple regression analysis. Results indicate that all four independent variables
significantly contributed to the failure of women-owned SMEs, with lack of finance
and capital identified as the most influential factor. The findings highlight the
pressing need for targeted interventions, including improved financial accessibility,
women-oriented training programmes, enhanced legal support, and strategies to
overcome socio-cultural constraints. The study offers practical recommendations for
policymakers, industry stakeholders, and development agencies to create an enabling
environment for women entrepreneurs, thereby fostering inclusive economic growth
and reducing the gender gap in the SME sector.
