Abstract: Purpose: Purpose of the paper is to investigate the impact of sources of finance on the business performance of small and medium enterprises in Batticaloa district, Sri Lanka.
Methodology: The statistical population of this study included the owners of SME in Batticaloa district and out of which a sample of 395 respondents were selected using stratified random sampling method. Primary data which were collected through the structured questionnaire from 324 respondents and analyzed using univariate, bivariate and multivariate analyses in SPSS 22.0.
Findings: The findings of the study revealed that dependency on internal sources of finance were at high level whereas the dependency on external sources of finance was at moderate level in selected SMEs. The business performance was also at high level.......
Keywords : Business performance, external sources of finance, internal sources of finance.
[1]. Abubakr, S. (2009). Formality of financial sources and firm growth: Empirical evidence from Brazilian SMEs 1999-2005. Journal of Academic Research in Economics (JARE), (2), 131-144.
[2]. Akerlof, G. A. (1970). The market for" lemons": Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 488–500. [3]. Baldwin, J., Chandler, W., Le, C., & Papailiadis, T. (1994). Strategies for success: A profile of growing small-and medium-sized enterprises (GSMEs) in Canada's Statistics. Canada, Ottawa. [4]. Ballantine, J.W., Cleveland, F.W. and Koeller, C.T., (1993). Profitability, uncertainty and firm size. Small Business Economics, 5(2), 87-100. [5]. Carpenter, R. E., & Petersen, B. C. (2002). Capital market imperfections, high‐tech investment, and new equity financing. The Economic Journal, 112(477), 54-72.