INFLUENCE OF ENTREPRENEURIAL SKILLS ON THE PERFORMANCE OF WOMEN ENTREPRENEURS’ BUSINESSES IN NORTHERN PROVINCE, SRI LANKA

Authors: T. Ramajeyam & L. Sooriyakumaran

ABSTRACT

Women entrepreneurs play a critical role in economic development, yet their participation in Sri Lanka’s Small and Medium Enterprise (SME) sector remains disproportionately low. Women in Sri Lanka own only 25% of sole proprietorship businesses, despite their high literacy and education rates (92%). This study investigates the influence of key entrepreneurial skills—business management, financial, communication, marketing, and networking skills—on the business performance of women entrepreneurs in the Northern Province of Sri Lanka. Using a mixed-methods approach, data were collected from 109 registered women entrepreneurs across five districts. Quantitative analysis was conducted using SPSS and AMOS, supplemented by qualitative insights from interviews. Results indicate that entrepreneurial skills significantly and positively impact business performance, with financial and marketing skills emerging as the strongest predictors. Marketing skills showed the strongest impact (β = 0.39–0.40, p < 0.001), followed by financial skills (β = 0.31–0.32, p < 0.001). The combined model explained 58–61% of variance in business performance. Qualitative findings revealed that sociocultural factors and local adaptation needed to mediate skill application. The study provides evidence-based recommendations for policymakers, educators, and development agencies to design targeted skill-enhancement programs. By addressing the entrepreneurial skill gap, this research contributes to fostering women’s economic participation, SME growth, and regional development in post-conflict Sri Lanka. Future study may investigate the long-term effects of skill treatments, conduct cross-regional comparisons within Sri Lanka, and examine the influence of digital skills on company performance enhancement.

Keywords: women entrepreneurship, entrepreneurial skills, business performance, SMEs, Northern Province, Sri Lanka, mixed-methods research

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