A Study on Management Practices of Selected SMEs in Hambantota District,Sri Lanka

Abstract

Small and Medium Enterprises (SMEs) play an important role in any economy through generation of employments, contributing to the growth of Gross Domestic Production (GDP), embarking on innovations and stimulating of other economic activities. SMEs are facing some difficulties in Knowledge about Management (Human Resources, Finance and Marketing). This research explored that what is the level of HR, Finance & Marketing practices of SMEs in Hambantota District.The main objective of the study is to explore the management practices of SMEs in Hambantota District. The SEMs selected randomly. The researcher collected data from 19 SMEs holders through interview guidelines. The data collected from the Owners or Managers of the SMEs via Interview. The Qualitative analyses were conducted.Most of the SMEs have 10-20 employees. Some SMEs are run business with the family support. In the SMEs they prefer to recruit employees with skills and giving on the job training to do their process. In all SMEs, initial capital is invested by the owner itself and the amount is less than Rs. 60,000. In addition to that they sold their assets and also get loan from their friends and relatives. They just only keep their book keeping system. Most of the SMEs outsource accountants from outside to prepare the financial statements. Most of the SMEs, market their products within their district. All the SMEs, used 4P’s system as their marketing strategies. The study concludes that SMEs in Hambanthota are substantially practicing some of the HRM, Financial Management, and Marketing practices with or without the management knowledge.

Keywords: Small Medium Enterprises, Human Resource Management, Marketing Management, Finance Management.