Abstract:
The SMEs is playing an important role in the economy development in Sri Lanka.
However, the data available shows that the growth rate of SMEs is less than 30% in Sri
Lanka .It indicates that most of the entrepreneurs are having inappropriate skills
knowledge and attitude for the change and growth in SMEs. In other words, most of the
entrepreneurs are having colonial mentality and traditional business practices. Is the
situation due to poor learning process or lack of learning culture? The main objective of
this study is to examine the nature of learning process of SMEs and to identify the
barriers that prevent positive learning. This study is based on selected case studies of
SMEs in urban sector. The data were collected through interviewing the entrepreneurs
and observing the enterprises. The study found that there is a relationship between the
pattern and the level of learning process and success of SMEs. The successful
entrepreneurs are having higher level of learning and positive pattern of learning.
Entrepreneurs’ main source of learning is through their own experiences and from others
experiences. It was found that the weaker aspect of learning is learning from
experiments and research and sharing knowledge with others. It is due to the mismatch
with the entrepreneur culture and the learning culture which are required for successful
learning. In addition, it is found there is no action to institutionalize the new knowledge. It
is imperative, that rather than just imitating modern methods and system from others, it
is necessary to develop a learning culture within SMEs for the survival and the
development of the sector.
