Abstract:
Finance is the major constraint of small enterprises to carry out their business
activities. Micro finance provides a better access to the small enterprise
owners to enter into the money market and fulfill their fund requirements. The
micro finance concept originated in the year 1976, when Mohammad Yunus
establish the Grameen bank in Bangladesh. This concept have been expanded
to most of the developing countries in present. This study is an attempt to find
out the impact of micro finance facilities on financial performance of small
enterprises. The study aimed to evaluate the impact of financial and nonfinancial
facilities provided by the micro financial institutions on financial
performance of the small enterprises. Survey method was used to collect data.
Population of this study is small enterprise owners in Puttalam district who are
participating to any micro finance program. The study sample consisted of
hundred small enterprises and Simple random sampling method was employed
to select that sample. Statistical Package for the Social Sciences (SPSS) was
used to analyze the data. Descriptive statistics, correlation analysis and
regression analysis were used to interpret results. The study revealed that the
micro finance facilities positively, impact on financial performances of the
small enterprises in Sri Lanka. Further, this study found that only micro credit
facilities are not enough for the development of the small enterprises. Nonfinancial
facilities such as, training, operational assistance and industry related
education are equally important for the growth of small enterprises.
