Abstract:
Small and Medium scale Enterprises (SMEs) are called as the engine of the economy in
developing countries such as Sri Lanka. Accordingly, SMEs are playing significant role in
socio economic development of any country. In Sri Lanka, SMEs are contributed for the
national GDP by 70% (Central Bank of Sri Lanka, 2013). Majority of SMEs are being
engaged with local resources utilized business activities. SME creates a platform for locals to
manufacture products and services using indigenous resources to get its optimum
contribution for the nation. Majority of SME entrepreneurs are doing their own enterprises
utilizing their own skills, knowledge, and expertise and so on. They are much creative enough
in developing new product and service concepts in order to the market standards. How much
standards they are following on, marketing their products and services is the main obstacle
they have confronted. Due to poor market orientation practices followed by SMEs, still they
cannot produce their maximum contribution to the economy. Having an intention on these
obstacles confronted by SMEs, this study is designed to identify the key determinants
affecting on market orientation by SMEs. Further this study attempted into identification of
issues and barriers that are inhibited the producing market oriented products and services by
SMEs. For the purpose of this field study researches have selected Matara District as their
research site. Small and Medium scale entrepreneurs were the population for this study.
Numbers of 50 SMEs have been randomly selected for the sample and a structured
questionnaire was used to gather relevant primary data. Using factor analysis technique
results were found. The results were discussed relating to four key areas; market based
rewards systems, top management emphasis, inter-functional connectedness and
management risk posture. Finally the study concluded that designing the cushion
environment for SMEs is the responsibility of policy making bodies to get the maximum of
SMEs within this challenging economic conditions and hostile competitive environment.
