Abstract:
This study examines the effect of microfinance services on the performance of micro entrepreneurs in the Pilimathalawa area. One hundred micro entrepreneurs received
the benefits from the Samurdhi Bank selected as a sample in this study purpose. The
microfinance services – micro-credit, micro-savings, and micro-training- are
considered independent variables and entrepreneurs performance considered as
dependent variables of the study. Data were collected through issuing a structured
questionnaire to the respondents and analyzed using SPSS version 20. The
Regression analysis and factor analysis were done for the effects of financial services
on the performance of micro entrepreneurs. The present study results indicated that
the microfinance services – micro-credit, micro-saving, and micro-finance have
highly impact the performance of entrepreneurs. Finally, the microfinance services –
credits, serving, and training - have highly effective on the performance of the micro entrepreneurs. Further, the study recommended that the micro-savings has a higher
effect on the entrepreneurs’ performance than that of other services.
