Role of Small and Medium Sized Enterprises in Developing Economies and Evaluation of Export Issues in Small and Medium Enterprises in Global Markets Case Study (with special reference to Export SMEs in Homagama Divisional Secretariat in Sri Lanka)

According to central bank Sri Lanka records a trade deficit of 7,214 USD million in August 2018. It indicates 10,939 USD million values of exports and 18,153 USD millions of imports. Small medium enterprises exports are also included in 10,939 USD million values of exports. If there is a possibility to increase the contribution of small & medium exports to the country, it will be an exact advantage to balance the trade deficit for the most. But the current situation different to that matter due to the minimum contribution of small & medium scale exports as a result of export issues in the industry. It is important to increase export small medium enterprises to achieve economy stability and economy growth. Objective of this research is to identify the issues faced by small and medium enterprises in exporting products. Research population can be defined as Small and Medium scale exporting enterprises in Homagma divisional secretariat area in Sri Lanka. Because it is practically impossible to involve the entire Export SMEs in Homagama Divisional Secretariat area, a sample was taken as representative of all export Small Medium Enterprises. Thirty export SMEs is the Sample unit of the study. The study is conducted to identify the export issues of Small Medium Enterprises in Homagama Divisional secretariat area in Sri Lanka. Results of the study indicate the major challenges faced by SMEs while exporting goods to overseas are insufficient access to capital, lack of knowledge on inadequate technology and communication with overseas distributor. In addition, there were issues such as insufficient infrastructure facilities and less support by government. To overcome the problems, direct banking support and financial institutions and knowledge sharing information’s to have a feasible overseas import transaction. The author firmly believes that this website will help to gain more knowledge on overseas import transactions and improve communication among various bases of entrepreneurs

Small and Medium Enterprises are a major source of job creation and economic growth. Global trade increases the domestic competitiveness and increase sales potential of existing products. It is important SMEs to participate and contribute to international operations because 80 percent of the industries are small and medium enterprises in developing economies. When it comes to export SMEs, we should develop export small and medium enterprises as they have direct impact on economy of the country. The survival and economic growth of the future nation depends on not only the independent self-sufficient economical & social environment, also it is important to understand that depends on international trade International trade is a process of exchanging capital, goods and services across countries. Trading globally enhances the domestic competitiveness and extends the sales potential of existing products. In developing world, large firms, with sufficient capital, market base information, access to modern technology and infrastructure facilities are successful in participating in international trade whereas Small and Medium scale Enterprises (SME) face many challenges in international trading. There is a necessity of participating Small Medium Enterprises to international trade to increase exports income and reduce trade deficit in economy In the current globalizing world and its market opportunities, the SMEs have started to face two main challenges. First, the need to constantly transform themselves and increase their individual competitiveness, and second, the need to enter cooperative relations with other SMEs to take advantage of their synergy effects. As a solution to these challenges, there is an emerging interest in the creation of SME clusters to improve their competitiveness and success in business. SMEs in developing economies need to reach international markets and be a part of Global Value Chains to improve their businesses as well as improve the local economies Trade liberalization increases allow established foreign enterprises to easily take over remote and underdeveloped markets, making it hard for SMEs to succeed either in local or global spheres. To overcome these issues, it is needed both to recognize the obstacles that SMEs face when trying to go international as well as what are solutions to these issues. According to previous research, in developing economies, large firms, with sufficient capital, market base information, access to modern technology and infrastructure facilities are successful in participating in international trade. However, it is yet a challenge for small and medium scale enterprise (SME) to engage in international trade.