Women-led small businesses in Sri Lanka, including the impact of COVID-19

Small businesses play a vital role in the growth and development of a country's economy. They are responsible for generating employment and providing crucial services and goods to local communities. Women-led small businesses are an important component of the economy, as they can promote gender equality and provide economic empowerment to women. This study aims to analyze data and statistics on women-led small businesses in Sri Lanka and their impact during the COVID-19 pandemic.

Data for this study was collected from various sources, including the Central Bank of Sri Lanka, the Department of Census and Statistics, and the Ministry of Women and Child Development. The data was analyzed to determine the number of women-led small businesses in Sri Lanka, their sectors of operation, and their contribution to the economy. Additionally, the impact of the COVID-19 pandemic on women-led small businesses and the measures taken by the government to support them were analyzed.

Findings:

According to the Department of Census and Statistics, there are approximately 2.3 million small businesses in Sri Lanka, with 35% being women-led. The majority of women-led small businesses are in the retail sector (40%), followed by agriculture (20%) and the service sector (20%). Women-led small businesses contribute approximately 7% to the country's Gross Domestic Product (GDP) and employ approximately 15% of the total workforce.

The COVID-19 pandemic has had a significant impact on small businesses in Sri Lanka, including women-led businesses. The lockdowns and restrictions on movement and trade have resulted in decreased sales and reduced income for many small businesses. The uncertainty and economic turmoil caused by the pandemic have also made it difficult for small businesses to secure loans and access government support.

The government of Sri Lanka has taken several measures to support small businesses during the COVID-19 pandemic, including tax relief, loan moratoriums, and cash transfers. However, these measures have been criticized for being insufficient and not reaching the most vulnerable businesses, including women-led small businesses.

Recommendations:

Based on the findings of this study, the following recommendations are made to support women-led small businesses in Sri Lanka:

1.       Increased access to funding: The government should provide increased access to funding for women-led small businesses to help them weather the economic impact of the COVID-19 pandemic.

2.       Business development support: The government should provide business development support to women-led small businesses, including training, mentorship, and technical assistance, to help them grow and succeed.

3.       Targeted relief measures: The government should implement targeted relief measures to support women-led small businesses, including tax relief, loan moratoriums, and cash transfers.

4.       Improved access to technology: The government should provide increased access to technology and digital tools to help women-led small businesses adapt to the changing business environment and reach new customers.

5.       Increased representation: The government should increase representation of women in decision-making positions, such as boards of directors and industry groups, to ensure that the needs and concerns of women-led small businesses are heard and addressed.

Conclusion:

Women-led small businesses play a critical role in the economy of Sri Lanka, providing employment, services, and goods to local communities. The COVID-19 pandemic has had a significant impact on these businesses, and the government needs to take more decisive action to support them and ensure their survival. The recommendations made in this study provide a roadmap for supporting women-led small businesses and promoting economic empowerment and gender equality in Sri Lanka.