Microfinance and Business Success among Women Entrepreneurs in Sri Lanka

Purpose: This study examines the role of microfinance in promoting business success among women entrepreneurs in Sri Lanka. Specifically, the study investigates whether loan amount, repayment schedule, repayment satisfaction, and other microfinance service characteristics influence the success of women entrepreneurs. Design/Methodology/Approach: A quantitative research approach was adopted. Primary data were collected through a structured questionnaire administered to 139 women beneficiaries of microfinance institutions in the Polonnaruwa District of Sri Lanka. Descriptive statistics, Chi-square analysis, reliability analysis, and correlation analysis were employed to examine the relationships among microfinance service characteristics and business success. Findings: The findings indicate that women beneficiaries are generally satisfied with the loan amount, repayment conditions, and repayment schedules offered by microfinance institutions. Most respondents reported that microfinance loans contributed to business growth and decision-making and a significant positive relationship between loan amount satisfaction and business success. In addition, a large proportion of respondents indicated that larger loan amounts would further support the expansion of their business. Implications/Originality/Value: The findings contribute to the existing literature on microfinance, particularly within the Asian context. The findings may assist policymakers and microfinance institutions in designing financial services that better support women entrepreneurs and promote sustainable livelihood development.