Sri Lanka’s Entrepreneurship Rate Stalls at 3%: A Call for Change
By Nuzla Rizkiya
In a startling revelation, the National Enterprise Development Authority (NEDA) has reported that a mere 3% of Sri Lanka’s working population is currently involved in entrepreneurship—a figure that NEDA Director Dhanuka Liyanagamage deemed "pathetic" in comparison to regional counterparts. This alarming statistic emerged during the launch of Global Entrepreneurship Week 2024 at the Chambers of Commerce, emphasizing a critical need for heightened entrepreneurial engagement in the country.
Liyanagamage, addressing the stark predicament, highlighted the cultural hesitance towards entrepreneurship, stating that many Sri Lankan parents prioritize traditional higher education paths for their children, often at the expense of entrepreneurial pursuits. He noted that while there has been a growing recognition of the significant role entrepreneurs play in national development—particularly since the economic crisis of 2022—Sri Lanka still has a long way to go. "We aim to increase the entrepreneurial percentage to at least 10% within the next 3-5 years," he asserted, underscoring an urgent call for systemic change.
The barriers to entrepreneurship, Liyanagamage pointed out, are manifold. Bureaucratic challenges hinder progress for local businesses, and despite the presence of numerous government agencies intended to support entrepreneurship, a lack of coordination only exacerbates the issue. “These agencies sometimes operate as rival organizations, leading to redundancy and inefficiency,” he explained.
In a country celebrated for its high literacy rate, a deficit in financial literacy, especially among small and medium enterprise (SME) owners, has surfaced as a pressing compounding factor. “Limited access to finance and difficulty with regulatory processes must be tackled if we hope to foster a robust entrepreneurial ecosystem,” he noted.
The importance of entrepreneurship resonates with biblical principles that encourage stewardship and the responsible use of one’s talents. In the Parable of the Talents, Jesus teaches that we are called to develop and multiply our inherent abilities for the greater good (Matthew 25:14-30). This principle of cultivation and growth reinforces the notion that individuals, communities, and nations thrive when they utilize their God-given gifts to innovate and create value.
As NEDA strives to facilitate progress in entrepreneurship, it beckons a collective attitudinal shift—embracing initiative, resilience, and an entrepreneurial spirit. Encouragingly, there’s a wave of interest from potential donors looking to support this sector, a sign that change may be on the horizon.
In conclusion, the stark reality of a 3% engagement in entrepreneurship can catalyze a profound transformation in Sri Lanka. It challenges us to mobilize efforts toward fostering a culture that values innovation, creativity, and enterprise. As we reflect on this critical juncture, let’s remember the words from Colossians 3:23: "Whatever you do, work heartily, as for the Lord and not for men." With faith in action, we can inspire a new generation of entrepreneurs equipped to uplift their communities and nation.
May this moment serve as a reminder that with collective vision and determination, we have the potential to build a thriving entrepreneurial landscape, enriching lives and bringing hope to future generations.
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