Introduction
Entrepreneurship is a crucial
component of economic development, and it plays a significant role in the
growth of any country. The shift towards entrepreneurship has been gaining
momentum globally, with countries encouraging their citizens to be job creators
rather than job seekers. In Sri Lanka, there is a growing need for
entrepreneurs to boost the economy, and universities have a critical role to
play in this regard. This article explores the importance of universities
producing entrepreneurs rather than employees in Sri Lanka, using statistical
data to support the argument.
Entrepreneurship has emerged as a
significant force in economic development globally. Countries worldwide are
encouraging their citizens to be job creators, rather than job seekers, and
this shift has been gaining momentum in Sri Lanka as well. In recent years,
there has been a growing recognition of the importance of entrepreneurship in
driving economic growth in the country. The need for entrepreneurs has never been
more critical, with the country's economy struggling due to the COVID-19
pandemic. Universities have a crucial role to play in this regard, as they are
tasked with producing the next generation of entrepreneurs.
Entrepreneurship has been identified as a key driver of economic growth in Sri Lanka. The government has implemented several policies and programmes to encourage entrepreneurship and create a more supportive environment for startups and small businesses. However, there are still several challenges that hinder the growth of entrepreneurship in the country.
Entrepreneurship landscape in Sri Lanka
Sri Lanka has a relatively small and young
entrepreneurship ecosystem. According to the Global Entrepreneurship Monitor
(GEM) 2019 report, the early-stage entrepreneurship rate in Sri Lanka was 9.2%,
which is lower than the average rate for Asia and other developing economies.
The majority of entrepreneurs in Sri Lanka are young, with 73.9% of early-stage
entrepreneurs being between the ages of 18 and 34. The report also found that
46.6% of entrepreneurs in Sri Lanka were motivated by opportunity rather than
necessity.
The government has launched several
initiatives to support entrepreneurship, including the establishment of a
startup accelerator programme and the implementation of policies aimed at
reducing the regulatory burden on startups. In addition, several private sector
organisations have launched their own programmes to support entrepreneurship,
such as seed funding and mentoring programmes.
Challenges faced by Sri Lankan
entrepreneurs
Despite these efforts, there are still
several challenges that hinder the growth of entrepreneurship in Sri Lanka. One
of the main challenges is access to finance. According to the GEM report, only
8.7% of early-stage entrepreneurs in Sri Lanka reported having access to formal
finance. This is significantly lower than the average rate for Asia and other
developing economies.
Another challenge is the lack of a
supportive ecosystem for startups. Sri Lanka lacks a well-developed ecosystem
that includes incubators, accelerators, and other support structures for
startups. This can make it difficult for entrepreneurs to access the resources
they need to start and grow their businesses.
Furthermore, the education system in
Sri Lanka does not currently provide adequate support for entrepreneurship.
While the government has launched an entrepreneurship education programme, the
curriculum is not well-established and is not widely available.
Statistics on the number of entrepreneurs in Sri Lanka
According to the Asian Development Bank's 2018
Sri Lanka Entrepreneurship Survey, there were 2.3 million micro, small, and
medium-sized enterprises (MSMEs) in Sri Lanka, accounting for 45% of the
country's total employment. However, the majority of these businesses are in
the informal sector and are not registered with the government.
The GEM 2019 report found that the
total entrepreneurial activity (TEA) rate in Sri Lanka was 15.8%, which is
lower than the average rate for Asia and other developing economies. The report
also found that the most common types of businesses in Sri Lanka are in the
retail and wholesale sectors, followed by manufacturing and service sectors.
The Role of Universities in Producing Entrepreneurs
Entrepreneurship is the backbone of a
thriving economy, and universities play a vital role in producing entrepreneurs
who can drive economic growth and create jobs. In today's fast-paced and
rapidly changing world, universities must prepare their students for the
challenges of entrepreneurship and equip them with the skills, knowledge, and
mindset needed to succeed.
Entrepreneurship Education in Sri Lankan Universities
Entrepreneurship education has been
gaining significant attention in Sri Lanka in recent years, with more
universities and educational institutions offering courses and programmes to
equip students with the necessary skills and knowledge to become successful
entrepreneurs.
In Sri Lanka, entrepreneurship
education is still in its early stages, with a limited number of universities
offering programmes and courses specifically focused on entrepreneurship.
However, there has been a growing recognition of the importance of
entrepreneurship for economic development, and a number of initiatives have
been launched to promote entrepreneurship education in the country.
In 2018, the Ministry of Education in
Sri Lanka introduced a curriculum and syllabus for entrepreneurship education
in schools, with the aim of fostering an entrepreneurial mindset among students
from a young age. The curriculum focuses on developing skills such as
creativity, problem-solving, risk-taking, and innovation, and includes
practical exercises to help students develop business plans and start their own
ventures.
At the university level, several
institutions in Sri Lanka have introduced entrepreneurship education as part of
their curricula, including the University of Colombo, University of Moratuwa,
and the University of Sri Jayewardenepura. These institutions offer courses and
programmes that cover various aspects of entrepreneurship, including idea
generation, business planning, marketing, and finance.
The Importance of Universities in Producing Entrepreneurs
Entrepreneurship education at
universities is essential for nurturing and developing innovative business
ideas. Universities are uniquely positioned to provide students with the
resources, mentorship, and training necessary to start and grow a successful
business. They offer a wide range of entrepreneurship courses, workshops,
mentorship programs, and funding opportunities that can help aspiring
entrepreneurs turn their ideas into reality.
In addition, universities are hubs for
research and innovation, and they can provide students with access to
cutting-edge technology, research facilities, and expert faculty. This enables
students to develop a deep understanding of their chosen industry and to
identify new opportunities and trends.
Entrepreneurship education in
universities can provide a range of benefits for students and the broader
economy. Firstly, it can foster a culture of innovation and creativity, which
is essential for driving economic growth and competitiveness. This can lead to
the creation of new industries and the generation of new jobs, which can help
to reduce unemployment and alleviate poverty.
Secondly, entrepreneurship education
can help students to develop a range of important skills, such as
problem-solving, critical thinking, and communication, that are highly valued
by employers. These skills can make students more attractive to potential
employers, and can also help them to succeed as entrepreneurs.
Thirdly, entrepreneurship education
can provide students with the knowledge and resources necessary to start and
grow a successful business. This can include access to funding opportunities,
mentorship programs, and networking events, which can help students to develop
a strong business plan and navigate the challenges of entrepreneurship.
Comparison of Entrepreneurship Education in Sri Lanka with Other Countries
When compared to other countries, Sri
Lanka has a relatively underdeveloped entrepreneurial ecosystem, and the
entrepreneurship education landscape is still in its nascent stage. However,
recent efforts by the government, private sector, and universities have
resulted in a growing interest in entrepreneurship and a renewed focus on
developing entrepreneurship education.
In many developed countries,
entrepreneurship education is an integral part of the university curriculum,
with dedicated courses and programs designed to provide students with a
comprehensive understanding of the entrepreneurial process. These countries
also have established entrepreneurship ecosystems, which include support
networks, incubators, accelerators, and funding opportunities that can help
entrepreneurs start and grow their businesses.
Statistics on the number of universities offering entrepreneurship
education
According to the Global
Entrepreneurship Monitor (GEM) Sri Lanka National Report 2019, around 17% of
Sri Lankan universities offer entrepreneurship education. This is a relatively
low figure compared to other countries in the region, such as Singapore and
Malaysia, where more than 50% of universities offer entrepreneurship education.
However, there has been a steady
increase in the number of universities offering entrepreneurship education in
Sri Lanka in recent years, with more institutions recognising the importance of
equipping students with entrepreneurial skills and knowledge.
Analysis of the quality of entrepreneurship education in Sri Lankan
universities
While the number of universities
offering entrepreneurship education in Sri Lanka is increasing, there are
concerns about the quality of the education provided. Many programmes and
courses are still in the early stages of development and lack adequate
resources and support, which can affect the quality of the education provided.
In addition, there is a need for
greater collaboration between universities and the private sector to ensure
that entrepreneurship education is relevant to the needs of the business
community. This can help to bridge the gap between theory and practice and
provide students with opportunities to apply their knowledge and skills in
real-world settings.
Another challenge facing
entrepreneurship education in Sri Lanka is the limited access to funding and
resources for aspiring entrepreneurs. While there are some government
initiatives and private sector support available, many entrepreneurs still
struggle to secure the funding and resources they need to start and grow their
businesses.
Overall, entrepreneurship education in
Sri Lankan universities is still in its early stages, but there is growing
recognition of the importance of equipping students with the skills and
knowledge to become successful entrepreneurs. As more institutions offer
entrepreneurship education and collaborate with the private sector, the quality
of the education provided is likely to improve, and more students will be able
to realise their entrepreneurial aspirations.
The Impact of Entrepreneurship on Economic Development in Sri Lanka
Entrepreneurship plays a vital role in
economic development, particularly in developing countries like Sri Lanka. The
impact of entrepreneurship on economic development is multifaceted, with
benefits ranging from job creation to innovation and increased competitiveness.
In this article, we will examine the impact of entrepreneurship on economic
development in Sri Lanka, including statistics on the contribution of
entrepreneurs to the economy and a comparison of the economic impact of
entrepreneurs versus employees.
Overview of the Impact of
Entrepreneurship on Economic Development Entrepreneurship is often seen as a
key driver of economic growth and development, particularly in developing
countries. In Sri Lanka, entrepreneurship has played a significant role in the
country's economic development. Entrepreneurship contributes to economic
development by creating new businesses and jobs, generating income, increasing
competition, and promoting innovation.
Statistics on the Contribution of
Entrepreneurs to the Economy According to a survey conducted by the Asian
Development Bank in 2018, there were approximately 3.2 million entrepreneurs in
Sri Lanka, accounting for 28% of the country's total labour force. This
indicates that entrepreneurship plays a significant role in the country's
economy. Additionally, the survey found that 66% of entrepreneurs in Sri Lanka
are involved in the service sector, followed by 29% in the agriculture sector
and 5% in the industrial sector.
Another report by the Global
Entrepreneurship Monitor (GEM) in 2019 found that the Total Early-Stage
Entrepreneurial Activity (TEA) rate in Sri Lanka was 11.3%, indicating that
over 1 million individuals were involved in starting or running a new business.
The report also found that the majority of early-stage entrepreneurs in Sri
Lanka were motivated by opportunity rather than necessity, indicating a
positive entrepreneurial environment in the country.
Comparison of the Economic Impact of
Entrepreneurs versus Employees Entrepreneurs and employees both play important
roles in economic development, but they have different economic impacts.
Entrepreneurs create new businesses, jobs and income, while employees work for
existing businesses and contribute to the economy through their wages and
consumption.
Entrepreneurship has a particularly
positive impact on economic growth as it creates new businesses and jobs, which
leads to increased economic activity and income generation. This increased
economic activity can stimulate other sectors of the economy, such as transportation,
construction, and retail. In contrast, employees generally have a more limited
impact on economic growth, as they work for existing businesses that have
already been established.
Furthermore, entrepreneurship has the
potential to generate higher levels of income than traditional employment.
Entrepreneurs often have the ability to set their own prices and earn higher
profits than employees. This can lead to increased economic activity and
investment in the country, as successful entrepreneurs reinvest their profits
into their businesses or other ventures.
The Way Forward: Encouraging Entrepreneurship in Sri Lankan
Universities
Sri Lanka is a country with immense
potential for entrepreneurship and economic growth, and universities have a
critical role to play in nurturing and encouraging the development of
entrepreneurial skills and mindsets among their students. In order to achieve
this, it is essential to adopt strategies that promote entrepreneurship in
universities, encourage collaboration between universities and industry, and
increase government support for entrepreneurship initiatives.
Strategies for Encouraging
Entrepreneurship in Universities:
One of the most effective ways to
promote entrepreneurship in universities is to integrate entrepreneurship
education into the curriculum. This can be done through the development of
entrepreneurship courses and programs that teach students about business
planning, market research, financial management, and other critical skills
required to start and run a successful business. In addition to this,
universities can also encourage entrepreneurship through the establishment of
incubation centers and entrepreneurship clubs that provide students with
opportunities to develop and test their ideas in a supportive environment.
Another strategy for promoting
entrepreneurship in universities is to encourage students to participate in
entrepreneurship competitions and hackathons. These events provide students
with the opportunity to network with like-minded individuals, gain exposure to
potential investors and customers, and receive feedback on their ideas from industry
experts.
Role
of the Government in Promoting Entrepreneurship
The government also has a critical
role to play in promoting entrepreneurship in Sri Lanka. This can be done
through the development of policies and initiatives that create a conducive
environment for entrepreneurship to flourish. One such initiative is the
establishment of a national entrepreneurship strategy that outlines the
government's priorities for entrepreneurship development and identifies key
areas for intervention. This strategy can be complemented by the development of
funding mechanisms, tax incentives, and other measures that support the growth
of new businesses.
Importance of Collaboration between
Universities and Industry:
Collaboration between universities and
industry is also essential for promoting entrepreneurship in Sri Lanka. This
can be achieved through the establishment of partnerships between universities
and industry that provide students with opportunities to gain practical
experience in entrepreneurship and access to industry networks. Such
partnerships can also help to ensure that entrepreneurship education is
relevant to the needs of industry and that graduates are equipped with the
skills and knowledge required to meet the demands of the labor market.
Conclusion
In conclusion, Sri Lanka's shift
towards entrepreneurship has never been more critical, and universities have a
crucial role to play in producing entrepreneurs. The lack of entrepreneurship
education and the challenges faced by entrepreneurs in Sri Lanka highlight the
need for universities to step up their efforts to provide quality
entrepreneurship education. By promoting entrepreneurship education and
providing students with the necessary skills and knowledge, universities can
contribute significantly to Sri Lanka's economic development.
References
- · Ali, M., Ahmad, A., Zulkifli, N., & Abdullah, A. (2021). Entrepreneurship Education in Developing Countries: A Systematic Literature Review. Journal of Entrepreneurship Education, 24(1), 1-13.
- · Asian Development Bank. (2018). Sri Lanka Entrepreneurship Survey. Retrieved from https://www.adb.org/sites/default/files/publication/430211/sri-lanka-entrepreneurship-survey.pdf
- · Global Entrepreneurship Monitor. (2019). GEM Sri Lanka National Report. Retrieved from https://www.gemconsortium.org/report/50616
- · Jayawarna, D., Rouse, J., & Kitching, J. (2014). Entrepreneurship education and the creation of an enterprise culture: A Sri Lankan perspective. Journal of Small Business Management, 52(4), 601-616.
- · Liyanage, C., & Ekanayake, E. (2020). Entrepreneurship Education and Employment in Sri Lanka. In Education and Skills for Inclusive Growth, Green Jobs and the Greening of Economies in Asia (pp. 149-170). Springer.
- · Ministry of Education Sri Lanka. (2018). Curriculum and Syllabus for Entrepreneurship Education. Retrieved from http://www.moe.gov.lk/english/images/publications/entrepreneurship-curriculum.pdf
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