Impact of Entrepreneurship Training on Performance of Small and Medium Enterprises in Southern Province

Abstract

Small and Medium enterprises are vital to the success of the economy. Today small and medium enterprises enjoy more and more esteem and prestige. To remain competitive and for survival of Small and Medium Enterprises (SMEs), it is suggested to gain higher and broader skills and competencies. In order to achieve this objective, many government and non-government organizations are providing training for micro enterprises and small enterprises. Therefore, entrepreneurial training can be considered as the one of most important aspect related on improving performance of SMEs. The main focus of this study was to identify the impact of entrepreneurship training on performance of small and medium enterprises. Southern province in Sri Lanka was selected as the research site of the study. Population of the study is Small and medium enterprises in southern province. Out of the population, 100 Small and medium enterprises were selected as the sample from southern province of Sri Lanka. Pearson correlation and regression analysis were applied to analyze the data. The study reveals, there is a positive impact of entrepreneurial training on firm performance. Training on business skills, risk management, marketing management, financial management and strategic planning are the key factors which affect entrepreneurial firm performance whereas training on risk management approaches has huge role. To make the training more meaningful to beneficiaries, it is necessary for the trainees to be closely monitored after the training to ensure that they are properly making use of the learnt skills. Based on that, it can be concluded unskilled employees who are recruited by SMEs enhance their competencies through the entrepreneurial training. As a result of enhancing competencies, business performance is increased.